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ANNUAL FINANCIAL STATEMENTS VOLUME 1

Public availability noteThis volume, the Annual Report and the Annual Financial Statements (Volume 2) are available from the Office of Marketing and Communications (see inside back cover) or online at www.uq.edu.au/about/annualreport

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ISSN 1837-6592 (print) ISSN 1837-6606 (online)

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The UniversiTy of QUeensland annUal reporT 2013 1

UQ annUal financial statements

ForewordThe financial statements are general purpose financial reports prepared in accordance with prescribed requirements.

The financial statements comprise the following components:

Income Statements; Statements of Comprehensive Income; Statements of Financial Position; Statements of Changes in Equity; Statements of Cash Flows; Notes to the Financial Statements; Management Certificate; and Independent Audit Report

Within the above components, the financial statements have been aggregated into the following disclosures:

University (as an entity in its own right and to which the remainder of this Annual Report refers) – column headed Parent; and Group (University and controlled entities: refer to note 37 for a listing of these entities) – column headed Consolidated.

Financial StatementsIncome Statements 2Statements of Comprehensive Income 3Statements of Financial Position 4Statements of Changes in Equity 5Statements of Cash Flows 6Notes to the Financial Statements 7

NotesNote 1 Summary of significant accounting policies 7RevenueNote 2 Australian Government financial assistanceincluding HECS‑HELP and FEE‑HELP 14Note 3 State and local government financialassistance 18Note 4 Fees and charges 18Note 5 Investment revenue and income 19Note 6 Royalties, trademarks and licences 19Note 7 Consultancy and contracts 19Note 8 Other revenue and income 20

ExpensesNote 9 Employee related expenses 21Note 10 Depreciation and amortisation 22Note 11 Repairs and maintenance 22Note 12 Finance costs 22Note 13 Impairment of assets 23Note 14 Other expenses 23Note 15 Income tax expense 24Note 16 Remuneration of Auditors 25

AssetsNote 17 Cash and cash equivalents 26Note 18 Receivables 27Note 19 Inventories 28Note 20 Other financial assets 29

Note 21 Other non‑financial assets 29Note 22 Investments accounted for using the equity method 30Note 23 Property, plant and equipment 31Note 24 Intangible assets 35Note 25 Deferred tax assets and liabilities 37

LiabilitiesNote 26 Trade and other payables 38Note 27 Borrowings 38Note 28 Provisions 39Note 29 Current tax liabilities 39Note 30 Other liabilities 40

EquityNote 31 Reserves and retained surplus 41Note 32 Non‑controlling interest 41

Disclosure NotesNote 33 Reconciliation of operating result after income tax to net cash flows from operating activities 42Note 34 Commitments 43Note 35 Related parties 45Note 36 Contingencies 47Note 37 Subsidiaries 49Note 38 Events occurring after the reporting date 50Note 39 Key management personnel disclosures 51Note 40 Financial risk management 56Note 41 Fair value measurement 61Note 42 Acquittal of Australian Government Financial Assistance 64

CertificatesManagement Certificate 72Independent Audit Report 73

annual financial statements

2 The UniversiTy of QUeensland annUal reporT 2013

The University of Queensland

Income Statement For the Year Ended 31 December 2013

1

Consolidated Parent

Notes

2013 $'000

2012 $'000

2013

$'000

2012

$'000

Revenue from continuing operations

Australian Government financial assistance

Australian Government grants 2 697,940 678,753 697,028 678,011

HELP - Australian Government payment 2(b) 196,594 157,838 196,594 157,838

State and local government financial assistance 3 51,052 61,658 51,052 61,319

Fees and charges 4 329,951 321,208 322,013 313,989

HECS-HELP - Student payments 39,083 33,425 39,083 33,425

Consultancy and contracts 7 77,895 90,095 46,900 62,445

Investment revenue 5(a) 13,801 26,140 13,346 32,275

Royalties, trademarks and licences 6 28,537 21,384 10,489 7,869

Other revenue 8(a) 329,289 208,709 314,043 195,076

Total revenue from continuing operations 1,764,142 1,599,210 1,690,548 1,542,247 Share of profit/(loss) on investments accounted for using the equity method 22 (45,905) 16,419 - -

Other investment income 5(b) 12,163 14,584 (22,036) 31,349

Other income 8(b) 4,067 9,121 3,059 9,093

Total income from continuing operations 1,734,467 1,639,334 1,671,571 1,582,689

Employee related expenses 9 900,898 877,022 871,462 843,169

Depreciation and amortisation 10 111,499 109,942 110,422 108,744

Repairs and maintenance 11 50,188 70,090 49,843 69,811

Finance costs 12 12,911 12,682 12,875 12,628

Impairment of assets 13 2,770 1,112 6,986 4,154

Loss on disposal of assets 4,192 6,358 4,043 6,243

Other expenses 14 539,586 511,758 497,711 474,559

Total expenses from continuing operations 1,622,044 1,588,964 1,553,342 1,519,308

Operating result before income tax 112,423 50,370 118,229 63,381 Income tax (expense)/benefit 15(a) (2,372) 7,811 - -

Operating result after income tax for the period 110,051 58,181 118,229 63,381 Operating result attributable to non-controlling interest (3,190) (1,661) - -

Operating result attributable to members of The University of Queensland 113,241 59,842 118,229 63,381

The accompanying notes form part of these financial statements.

INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013


UQ annUal financial statementsThe University of Queensland

Statement of Comprehensive Income For the Year Ended 31 December 2013

2

Consolidated Parent

2013 $'000

2012 $'000

2013

$'000

2012

$'000

Operating result after income tax for the period 110,051 58,181 118,229 63,381

Gain/(loss) on revaluation of land and buildings, net of tax 25,149 12,320 25,149 12,319

Total comprehensive income 135,200 70,501 143,378 75,700

Total comprehensive income attributable to:

Members of the parent entity 138,390 72,162 143,378 75,700

Non-controlling interest (3,190) (1,661) - -

Total comprehensive income 135,200 70,501 143,378 75,700


STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2013



Statements of Financial Position 31 December 2013

The accompanying notes form part of these financial statements. 3

Consolidated Parent

Notes

2013 $'000

2012 $'000

2013

$'000

2012

$'000

ASSETS

Current Assets Cash and cash equivalents 17 36,532 299,101 20,247 277,236

Trade and other receivables 18 90,508 86,486 75,760 75,080

Inventories 19 4,339 5,294 4,040 4,823

Other financial assets 20 185,487 200 185,487 200

Non-current assets held for sale - 923 - 923

Other assets 21 8,704 8,992 8,349 8,596

Total current assets 325,570 400,996 293,883 366,858

Non-current assets Trade and other receivables 18 521 778 1,358 5,975

Investments accounted for using the equity method 22 32,983 78,793 - -

Property, plant and equipment 23 2,900,866 2,668,593 2,898,216 2,665,115

Deferred tax assets 25 - 2,362 - -

Intangible assets 24 6,453 8,618 6,167 8,100

Other financial assets 20 135,751 116,581 177,115 194,915

Total non-current assets 3,076,574 2,875,725 3,082,856 2,874,105

Total assets 3,402,144 3,276,721 3,376,739 3,240,963

LIABILITIES

Current liabilities Trade and other payables 26 74,148 79,233 51,196 56,375

Borrowings 27 89 3,835 - 3,501

Provisions 28 147,234 144,570 144,882 140,985

Current tax liabilities 29 4 (35) - -

Other liabilities 30 47,935 59,295 48,590 59,625

Total current liabilities 269,410 286,898 244,668 260,486

Non-current liabilities Borrowings 27 115,698 113,200 115,643 113,056

Provisions 28 28,102 27,185 27,486 26,367

Other liabilities 30 40,728 36,794 40,515 36,005

Total non-current liabilities 184,528 177,179 183,644 175,428

Total liabilities 453,938 464,077 428,312 435,914

Net assets 2,948,206 2,812,644 2,948,427 2,805,049

EQUITY Reserves 31(b) 1,676,819 1,651,670 1,676,619 1,651,470

Retained earnings 31(c) 1,269,765 1,156,524 1,271,808 1,153,579

Parent interest 2,946,584 2,808,194 2,948,427 2,805,049 Non-controlling interest 32 1,622 4,450 - -

Total equity 2,948,206 2,812,644 2,948,427 2,805,049

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2013


UQ annUal financial statementsThe University of Queensland

Statements of Changes in Equity For the Year Ended 31 December 2013

4

Parent

Retained Earnings

$'000 Reserves

$'000 Total $'000

Balance at 1 January 2012 1,090,198 1,639,151 2,729,349

Operating result for the period 63,381 - 63,381

Net gains on revaluation of property, plant and equipment - 12,319 12,319

Total comprehensive income 63,381 12,319 75,700

Balance at 31 December 2012 1,153,579 1,651,470 2,805,049

Operating result for the period 118,229 - 118,229 Net gains on revaluation of property, plant and equipment - 25,149 25,149

Total comprehensive income 118,229 25,149 143,378

Balance at 31 December 2013 1,271,808 1,676,619 2,948,427

Consolidated

Retained Earnings

$'000 Reserves

$'000

Non-controlling Interest

$'000 Total $'000

Balance at 1 January 2012 1,096,682 1,639,350 4,836 2,740,868

Operating result for the period 59,842 - (1,661) 58,181

Net gains on revaluation of property, plant and equipment - 12,320 - 12,320

Total comprehensive income 59,842 12,320 (1,661) 70,501 Contributions of equity - - 1,275 1,275

Balance at 31 December 2012 1,156,524 1,651,670 4,450 2,812,644

Operating result for the period 113,241 - (3,190) 110,051 Net gains on revaluation of property, plant and equipment - 25,149 - 25,149

Total comprehensive income 113,241 25,149 (3,190) 135,200 Contributions of equity - - 362 362

Sub-total 1,269,765 1,676,819 1,622 2,948,206

Balance at 31 December 2013 1,269,765 1,676,819 1,622 2,948,206


STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2013



Statement of Cash Flows For the Year Ended 31 December 2013

5

Consolidated Parent

Notes

2013 $'000

2012 $'000

2013

$'000

2012

$'000

CASH FLOWS FROM OPERATING ACTIVITIES:

Australian Government grants 892,498 835,224 891,586 834,870

OS-HELP (net) 2(h) 1 (82) 1 (82)

State and local government grants 51,014 61,658 51,014 61,319

HECS-HELP - Student payments 39,083 33,425 39,083 33,425

Receipts from student fees and other customers 724,694 753,446 625,020 661,591

Dividends and distributions received 1,471 11,155 1,471 20,145

Interest received 12,285 23,822 11,833 20,818

Payments to suppliers and employees (1,564,717) (1,556,697) (1,458,498) (1,455,039)

Interest expense (9) - - -

Income taxes (paid) / refunded 29 10,841 - -

Net cash provided by / (used in) operating activities 33 156,349 172,792 161,510 177,047

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of property, plant and equipment and intangibles

1,339 1,037 1,308 981

Payments for property, plant and equipment (218,597) (235,936) (218,076) (234,887)

Proceeds from sale of other financial assets 282 3,965 255 149

Payments for other financial assets (6,283) (2,110) (5,826) (1,976)

Loans from/(to) controlled entities - - (1,030) (1,237)

Loans from/(to) external entities - (368) - -

Net (increase) / decrease in term deposits (185,287) 11,300 (185,287) 9,800

Proceeds from loss of controlled entities net of their cash

(797) - - -

Net cash provided by / (used in) investing activities (409,343) (222,112) (408,656) (227,170)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issue of shares 363 1,275 - -

Proceeds from borrowings from external entity 10,866 12,896 10,866 12,896

Finance lease payments (11,966) (14,578) (11,804) (14,384)

Repayment of borrowings to an external party (1,000) 171 (1,000) -

Receipt/payment of monies held on behalf of third parties

(8,052) (31,776) (8,052) (31,776)

Net cash provided by / (used in) financing activities (9,789) (32,012) (9,990) (33,264)

Net increase (decrease) in cash and cash equivalents held (262,783) (81,332) (257,136) (83,387)

Cash and cash equivalents at beginning of year 299,101 380,406 277,237 360,617

Effects of exchange rate changes on cash and cash equivalents

214 27 146 6

Cash and cash equivalents at end of financial year 17 36,532 299,101 20,247 277,236


STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2013



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013

1 Summary of significant accounting policies

(a) Basis of preparationThese financial statements are a general purpose financial statement and have been prepared in accordance with the Australian Accounting Standards and the Financial and Performance Management Standard, issued under Section 57 of the Financial Accountability Act 2009, Australian Accounting Standards and the Financial Statement Guidelines for Australian Higher Education Providers for the 2013 reporting period issued by the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE).

Additionally the statements have been prepared in accordance with the Higher Education Support Act 2003.

date of authorisation for issueThe financial statements were authorised for issue by the members of The University of Queensland on 27 February 2014.

The University of Queensland is a not for profit entity and these statements have been prepared on that basis. Some of the requirements for not for profit entities are inconsistent with AIFRS requirements.

historical cost convention The financial report has been prepared under the historical cost convention, except for available for sale financial investments, financial assets at fair value through profit and loss and certain classes of property, plant and equipment, which have been measured at fair value.

roundingAmounts in the financial report have been rounded off to the nearest thousand dollars, or in certain cases, the nearest dollar.

accrual basis of accountingThe financial statements, except for cash flow information, have been prepared using the accrual basis of accounting.

Critical accounting estimatesThe preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the University’s accounting policies.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed below:

Fair value of financial assets and liabilitiesThe fair value of financial assets and financial liabilities must be estimated for recognition, measurement and disclosure purposes. Further information is contained in Note 1(k).

Fair value of property, plant and equipmentLand, buildings, infrastructure, land improvements and heritage and cultural assets, including the museum collections, are measured at fair value less any accumulated depreciation and accumulated impairment losses.

All such assets are valued by an external valuer on a cyclical basis, or earlier if there is material movement. Further information is contained in Note 1(l).

Impairment of assetsAll non current physical and intangible assets are assessed for impairment on an annual basis. Further information is contained in note 1(g).

(b) Basis of consolidationThe consolidated financial statements comprise the financial statements of The University of Queensland and its subsidiaries as at 31 December each year (‘the Group’).

Subsidiaries are all those entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date control ceases.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Non controlling interests in the results and equity of subsidiaries are shown separately in the consolidated Statements of Comprehensive Income, Statements of Financial Position and Statements of Changes in Equity.

(c) Foreign currency transactions and balancesFunctional and presentation currencyItems included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated

financial statements are presented in Australian dollars, which is The University of Queensland’s functional and presentation currency.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year‑end of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement.

(d) RevenueRevenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

(i) Student fees Student fees are recognised following

the census date for each session net any fee waivers or discounts.

(ii) Sale of goods Revenue is recognised when the

significant risks and rewards of ownership of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered to have passed to the buyer at the time of delivery of the goods to the customer.

(iii) Rendering of services Revenue from rendering a service is

recognised only when the entity has a right to be compensated, it is probable that compensation will be received, and the amount of revenue and the stage of completion of a transaction can be reliably measured.

(iv) Interest and royalties Interest revenue is recognised on an

accrual basis taking into account the interest rates applicable to the financial assets.

Fees and royalties paid for the use of the University’s assets are recognised on an accrual basis in accordance with the substance of the relevant agreement.

(v) Contributions Grants, contributions, donations and

gifts that are non‑reciprocal in nature are recognised as revenue in the year in which the group obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements.

Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would be purchased if they had not been donated.



(e) Income taxThe University is exempt from paying income tax in Australia.

With the exception of the UQ Investment Trust, the University of Queensland Foundation Trust, UQ College Ltd, UQ Health Care Ltd, UQ Sport Ltd, SARV Pty Ltd, IMBcom Asset Trust, UniQuest Pty Ltd, Symbiosis Pty Ltd, and UQ Holdings Pty Ltd, all of the controlled entities of the University are taxable entities with the charge for income tax expense based on profit for the year adjusted for any non‑assessable or disallowed items. Where income tax is incurred, it is expensed and provided for in the financial period in which the tax is incurred.

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period’s taxable income.

The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss; or

• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax losses can be utilised except:

• when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss; or

• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

Unrecognised deferred income tax assets are reassessed each reporting period and are recognised to the extent that it has become probable that the future taxable profit will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period.

Income tax relating to items recognised directly in equity are recognised in equity and not in profit or loss.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to offset the current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

(f) Other taxesRevenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable. Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statements of Financial Position.

Cash flows are included in the Statements of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(g) Impairment of assetsAll non‑current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an

indicator of possible impairment exists, the asset’s recoverable amount is determined. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

The asset’s recoverable amount is determined to comply with revised AASB 136 Impairment of Assets guidance and AASB 13 Fair Value Measurement.

An impairment loss is recognised immediately in the Income Statements, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevant class to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash flows from other assets or groups of assets (cash generating units).

(h) Cash and cash equivalentsCash and short term deposits in the Statements of Financial Position comprise cash at bank and on hand and short term deposits with an original maturity of 90 days or less.

For the purposes of the Statements of Cash Flows, cash includes cash on hand, at call deposits with banks or financial institutions and investments in money market instruments maturing within less than 90 days and net of bank overdrafts.

(i) Trade receivablesTrade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Trade receivables are due for settlement no more than 30 days from the date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. All bad debts are written off in the year in which they are recognised and are charged against the operating result. A provision for impairment is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties




of the debtor, probability that the debtor will enter bankruptcy and default or delinquency in payments are considered indicators that the trade receivable is impaired. The balances of these allowances are set out in Note 18(a).

(j) InventoriesInventories are stated at the lower of cost and current replacement cost using the first in first out or weighted average cost formula. Direct costs and an appropriate proportion of variable and fixed overhead expenses are included, where applicable. Those stores held by the University are essentially for internal use. Livestock is held for teaching and research purposes and is carried at market value.

(k) Financial instrumentsfinancial assets Financial assets are initially recognised at their fair value. Transaction costs directly attributable to the acquisition or issue are included unless the financial asset is held at fair value through profit or loss.

Subsequent to initial recognition, the University classifies its financial assets into the following categories: (i) financial assets at fair value through profit or loss, (ii) loans and receivables, (iii) held‑to‑maturity investments and (iv) available‑for‑sale financial assets.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

(i) Financial assets at fair value through profit or loss

Financial assets are classified in this category if they are (1) held for trading or (2) designated as such by the University. They are measured at their fair value with any gain or loss arising from a change in fair value recognised in profit or loss. Those financial assets held for trading include investments in commercialisation entities held by UniQuest Pty Ltd and the UniQuest Asset Trust.

(ii) Loans and receivables Loans and receivables are non‑

derivative financial assets with fixed or determinable payments that are not quoted in an active market. They have been classed as non‑current where they are not expected to be recovered or settled within twelve months following year end. They are measured at amortised cost using the effective interest method.

(iii) Held-to-maturity investments Held‑to‑maturity investments are

non‑derivative financial assets with

fixed or determinable payments and fixed maturities which the Group has a positive intention to hold to maturity. They are measured at amortised cost using the effective interest method.

(iv) Available-for-sale financial assets Available‑for‑sale financial assets are

those non‑derivative financial assets not included in the above categories. They are measured at their fair value with any gain or loss arising from a change in fair value recognised directly in equity. Where the fair value cannot be measured reliably, the asset is measured at cost.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

When securities classified as available‑for‑sale are sold, the accumulated fair value adjustments recognised in the Statements of Other Comprehensive Income are included in the Income Statements as gains and losses from investment securities.

fair valueThe fair value of investments traded in an active market is based on the quoted market prices at balance date. The fair value of investments that are not traded in an active market is estimated using valuation techniques consistent with accepted market practice. These include reference to the fair values of recent arm’s length transactions, involving the same instruments or other instruments that are substantially the same and discounted cash flow analysis.

investment in subsidiariesSubsidiaries are those entities controlled by the University. Control exists when the University has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Investments in subsidiaries are recorded at cost in the University’s parent financial statements.

investment in associatesAssociates are those entities which the University has significant influence, but not control, over the financial and operating policies.

Investments in associated entities are accounted for using the equity method of accounting in the University’s Consolidated Financial Statements and are recorded at fair value in the University’s parent financial statements. Under the equity method, the share of profits or losses of the entity is recognised in the Income Statements, and the share of movements in reserves is recognised in the Statements of Comprehensive Income and the

Statements of Changes in Equity.

Investments in associated entities which are commercialisation entities are recorded at fair value through profit or loss or as available‑for‑sale financial assets in both the University’s parent and consolidated financial statements on the basis that this provides more relevant information than if valued using the equity method of accounting.

impairmentThe carrying value of all financial assets is assessed at balance date to determine if there is any objective evidence that a financial asset or group of financial assets is impaired. If any such evidence exists, an impairment loss is recognised in the Income Statements.

In the case of equity securities classified as available‑for‑sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available‑for‑sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss is removed from the Statements of Other Comprehensive Income and recognised in the Income Statements. Impairment losses recognised in the Income Statements on equity instruments are not reversed through the Income Statements.

derecognition of financial instrumentsFinancial assets are derecognised when the contractual rights to the cash flows from the financial asset expire or when the financial assets are transferred to a third party.

financial liabilitiesFinancial liabilities are initially recognised at their fair value. Transaction costs directly attributable to the acquisition are included unless the financial liability is held at fair value through profit or loss in which case they are expensed.

Subsequent to initial recognition, they are measured at amortised cost using the effective interest method.

(l) Property, plant and equipmentacquisition of assetsCost of acquisition is used for initial recognition of all non‑current physical assets. Assets acquired at no cost or for nominal consideration are recognised at their fair value at the date of acquisition.

Items that fall below the relevant asset recognition threshold are expensed in the year of acquisition.

The cost of property, plant and equipment includes the purchase or construction cost plus any costs or fees incidental to the purchase or construction of the asset.



land, land improvements and buildingsLand and buildings are shown at fair value, based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Land was independently valued in 2013, as at 31 December 2013, by Colliers International at current market value using an appropriate index. In respect of land the asset recognition threshold is $1.

Land improvements assets were independently valued in 2013, as at 31 December 2013, by Colliers International at current market value, using an appropriate index, where a depth in market can be identified or at replacement cost where no depth in market can be established. In respect of land improvements the asset recognition threshold is $10,000.

Not all land improvement assets were sighted by the valuers. Examples of assets which could not be sighted include underground cables and pipes. The valuers have therefore relied on areas and quantities provided by the University in determining fair value.

Buildings were independently valued in 2013, as at 31 December 2013, by Colliers International at current market value, using an appropriate index, where a depth in market can be identified or at replacement cost where no depth in market can be established. The asset recognition threshold is $10,000.

In determining building areas, the valuers have relied on site plans provided by the University. Basic on site measurements were only undertaken by the valuers where site plans were not available. These site plans are the same as those used in previous valuations.

Work in progressWork in progress is shown at cost. Contracts signed for the purpose of building projects that have not been completed at 31 December 2013 have been disclosed as capital expenditure commitments (refer Note 34). The asset recognition threshold is applied on the basis relating to assets that have the same functionality.

leasehold improvementsLeasehold improvements are subsequently carried at cost less any accumulated depreciation and impairment losses. The asset recognition threshold is $10,000.

leased assetsAASB 117 Leases requires that assets acquired under finance leases be recognised initially at an amount equal to

the fair value of the leased property or, if lower, the present value of the minimum lease payments, using the interest rate implicit in the original lease contract as the discount factor. A corresponding liability for the lease payments must also be recorded.

Assets acquired under a finance leases are subject to the same revaluation requirements as assets that are owned or otherwise controlled by the University.

In line with AASB 117 Leases, assets subject to operating leases are not recognised by the University in the Statements of Financial Position.

plant & equipmentMotor vehicles, computing equipment and other plant and equipment are carried at cost less accumulated depreciation and impairment losses. The asset recognition threshold is $5,000.

heritage & cultural assetsHeritage and cultural assets are measured at fair value less accumulated depreciation and impairment losses recognised at the date of revaluation.

• library collections Heritage collection The University’s collection of rare

materials and manuscripts is considered to be a heritage collection. Management considers that the collection does not lose value over time. The University’s heritage collection was independently valued in 2009. The asset recognition threshold for rare materials and manuscripts is $1. Rare materials and manuscripts are recognised as assets upon initial recognition.

Reference collection The University’s reference collection

includes both general and specialised publications. The collection is recorded at average replacement cost, based on the average cost of purchases over a five‑year rolling period. The asset recognition threshold is $1. The University’s reference collections are recognised as assets upon initial recognition.

Common use collection The common use collection is

comprised of a large number of low value items which are used in the day‑to‑day operations of the library. This collection is expensed in the year of purchase. The insured value of the expensed common use collection is $166.666 million.

• Museums & other collections (including works of art)

The University Anthropology, Antiquities and Art Museum collections were independently valued at fair value on a cyclical basis at 31 December between 2009 and 2011. The asset recognition

threshold is $1. The University’s Anthropology, Antiquities and Art Museum collections are recognised as assets upon initial recognition.

infrastructure assets Infrastructure is measured at fair value less accumulated depreciation and impairment losses recognised at the date of revaluation.

Infrastructure assets were independently valued in 2013, as at 31 December 2013, by Colliers International at current market value, using an appropriate index, where a depth in market can be identified or at replacement cost where no depth in market can be established. In respect of infrastructure the asset recognition threshold is $10,000.

revaluations of property, plant and equipmentNon‑current physical assets measured at fair value are comprehensively revalued at least once every three years by appraisals undertaken by an independent professional valuer. In the interim, valuations using appropriate indices are performed annually, where practicable, where the change would be material to that class of asset.

Indices used in the revaluation process are determined by the appointed valuer for relevance and suitability to ensure valid estimations of the asset’s fair value at reporting date.

On revaluation, accumulated depreciation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount.

Any revaluation surplus is credited to a revaluation reserve included in the Statements of Other Comprehensive Income unless it reverses a revaluation decrease of the same class of asset previously recognised in the Income Statements.

Any revaluation deficit is recognised in the Income Statements unless it directly offsets a previous surplus from the same class of asset in the revaluation reserve.

derecognition of property, plant and equipmentAn item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Income Statements.

Maintenance / Capital expenditureRepairs and maintenance represent work performed to keep an asset in an operating condition and to ensure that the service originally expected of the asset is obtained. Repairs and maintenance is expensed in the year it is incurred.




depreciationBuildings, plant and equipment, infrastructure assets, land improvements and library reference collection are depreciated over their estimated economic useful lives using either the straight line or diminishing value method. Leasehold improvements and leased assets are depreciated over the unexpired period of the lease; however, where the University is expected to retain the asset at the end of the lease period, the asset will be depreciated over its expected useful life. All other items of property, plant and equipment including land, work in progress, library heritage collection and museums and other collections are not depreciated.

The depreciation rates used are:

Buildings 1%–7% straight line

Plant and equipment

10%–20% straight line

Infrastructure assets


Land improvements


Library reference collection (part of the heritage and cultural assets)

15% diminishing value

Assets’ useful lives are reviewed and adjusted if appropriate at each financial year end.

(m) Intangible assetsCost of acquisition is used for initial recognition of all intangible asset acquisitions. The cost of an intangible asset comprises its purchase price (including import duties and non‑refundable purchase taxes, after deducting trade discounts and rebates) and any directly attributable costs of preparing the asset for its intended use.

Assets acquired at no cost or for nominal consideration are recognised at their fair value at the date of acquisition.

The asset recognition threshold is $100,000. Items that fall below the relevant threshold are expensed in the year of acquisition.

Systems development expenditure during the research phase is recognised in the Income Statements as an expense when it is incurred.

Systems development expenditure is capitalised only when technical feasibility studies identify that the project will deliver future economic benefits and these benefits can be measured reliably.

Intangible assets are measured at fair value when there is an active market, otherwise they are measured at cost less any

accumulated amortisation and impairment losses.

Capitalised systems development expenditure is stated at cost less any accumulated amortisation and impairment losses. Amortisation is calculated using the straight line method to allocate the cost of acquisition over the period of the expected benefit which in the case of system development costs is eight years.

Intellectual property is made up of theses, which are recorded at cost of reproducing the document from an electronic source less accumulated amortisation and impairment losses. Amortisation is calculated using the diminishing value method with a rate of 15%.

Patents, trademarks and licenses are stated at cost less any accumulated amortisation and impairment losses. Amortisation is calculated using the straight line method to allocate the cost of acquisition over the period of their expected benefit.

(n) Trade payablesTrade creditors are recognised on receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30‑day terms.

(o) BorrowingsBorrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Income Statements over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

financing costsFinancing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale are added to the cost of those assets until such time as the assets are substantially ready for their intended use or sale. All other financing costs are recognised as an expense when incurred.

(p) ProvisionsProvisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the

amount of the obligation.

(q) Employee benefits(i) Wages and salaries and sick leave Liabilities for wages and salaries,

including non‑monetary benefits, are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non‑accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date, in which case it would be classified as a non‑current liability.

(ii) Long service leave and annual leave The liability for other long‑term

employee benefits such as annual leave and long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels and projected staff turnover rates based on age of staff. Expected future payments are discounted using the market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Provisions made are classified as a current liability for those employees who have reached the service period that allows them to take leave in service (i.e. they are unconditionally qualified) and for employees within one year of the unconditionally qualified service period.

(iii) Termination benefits Termination benefits are payable

when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance date are discounted to present value.



(r) SuperannuationThe UniSuper Defined Benefit Division (DBD) is a multi employer defined benefit plan under superannuation law but, as a result of amendments to Clause 34 of UniSuper, a defined contribution plan under AASB 119 Employee Benefits.

Clause 34 of the UniSuper Trust Deed outlines the action UniSuper will take if actuarial investigations determine there are insufficient funds to provide benefits payable under the UniSuper Trust Deed. If there are insufficient funds, the Trustees must reduce the benefits payable under Division A and Division B on a fair and equitable basis. There is no requirement for employers and members to be asked to “top up” their contributions in the event of a prolonged shortfall in the Defined Benefit Division.

(s) Interests in Cooperative Research CentresThe Group has an interest in a number of Cooperative Research Centres (CRC). These Centres have varying corporate structures including unincorporated joint ventures, public companies and private companies.

Contributions to CRCs are expensed when incurred and are included in the Income Statements. In the event that the research activities of a CRC move into a commercialisation phase, a separate legal entity will most likely be established and the University’s share of the newly formed entity will be treated as an asset.

(t) New Accounting Standards and InterpretationsThe following Accounting Standards and Interpretations have been issued but are not yet effective for the 31 December 2013 reporting period.

aasB 9 financial instruments AASB 9 includes revised requirements for the classification and measurement of financial instruments, as well as recognition and derecognition requirements for financial instruments. The main changes are described below:

(a) Financial assets that are debt instruments will be classified based on (1) the objective of the entity’s business model for managing the financial assets; (2) the characteristics of the contractual cash flows.

(b) Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in Other Comprehensive Income. Dividends in respect of these investments that are a return on investment can be recognised in the Income Statements or loss and

there is no impairment or recycling on disposal of the instrument.

(c) Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases.

(d) Where the fair value option is used for financial liabilities the change in fair value is to be accounted for as follows:

• The change attributable to changes in credit risk are presented in Other Comprehensive Income (OCI)

• The remaining change is presented in the Income Statements.

If this approach creates or enlarges an accounting mismatch in the Income Statements, the effect of the changes in credit risk are also presented in profit or loss.

The Group has not yet been able to reasonably estimate the impact of these pronouncements on the financial statements. The Group does not expect to implement the amendments prior to the adoption date of 1 January 2014.

aasB 10 Consolidated financial statementsAASB 10 establishes a new control model that applies to all entities. It replaces parts of AASB 127 Consolidated and Separate Financial Statements dealing with the accounting for consolidated financial statements and UIG‑112 Consolidation – Special Purpose Entities. The new control model broadens the situations when an entity is considered to be controlled by another entity and includes new guidance for applying the model to specific situations, including when acting as a manager may give control, the impact of potential voting rights and when holding less than a majority voting rights may give control. The Group will adopt the Standard on 1 January 2014. This Standard is not expected to significantly affect the Group.

aasB 12 disclosure of interests in other entitiesAASB 12 includes all disclosures relating to an entity’s interests in subsidiaries, joint arrangements, associates and structures entities. New disclosures have been introduced about the judgments made by management to determine whether control exists, and to require summarised information about joint arrangements, associates and structured entities and subsidiaries with non controlling interests. The Group will adopt the Standard on 1 January 2014. This Standard will affect disclosures only and is not expected to significantly impact the Group.

aasB 1055 Budgetary reportingAASB 1055 specifies budgetary disclosure requirements for the whole of government, General Government Sector (GGS) and not for profit entities within the GGS of each government.

AASB 2013‑1 removes the requirements relating to the disclosure of budgetary information from AASB 1049 (without substantive amendment). All budgetary reporting requirements applicable to public sector entities are now located in AASB 1055. The Group will adopt the Standard on 1 January 2014.

The Group and the Parent entity have not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective, instead they will be applied in accordance with their respective commencement dates.

Initial adoption of other standards / interpretations issued but not yet effective are not expected to have a material impact on the financial statements.

(u) Fair value estimationThe fair value of assets and liabilities must be measured for recognition and disclosure purposes.

The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

− Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

− Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

− Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Fair value measurement of non‑financial assets is based on the highest and best use of the asset. The Group considers market participants use of, or purchase price of the asset, to use it in a manner that would be highest and best use.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short‑term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the




future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

(v) Financial guarantee contractsFinancial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value and subsequently at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate.

Where guarantees in relation to loans or other payables of subsidiaries or associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment.




Notes to the Financial Statements For the Year Ended 31 December 2013

21

2 Australian Government financial assistance

(a) Commonwealth Grants Scheme and Other Grants

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Commonwealth Grant Scheme 298,314 286,185 298,314 286,185

Indigenous Support Program 1,119 884 1,119 884

Partnership & Participation Program 4,263 4,334 4,263 4,334

Disability Support Program 65 82 65 82

Reward funding 713 685 713 685

Transitional Cost Program - (700) - (700)

Promotion of Excellence in Teaching and Learning 611 1,077 611 1,077

Total Commonwealth Grants Scheme and Other Grants 42(a) 305,085 292,547 305,085 292,547

(b) Higher Education Loan Programmes (HELP)

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

HECS - HELP 168,531 134,194 168,531 134,194

FEE - HELP 23,480 19,800 23,480 19,800

SA-HELP payments 4,583 3,844 4,583 3,844

Total Higher Education Loan Programmes 42(b) 196,594 157,838 196,594 157,838

(c) Scholarships

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Australian Postgraduate Awards 22,850 20,861 22,850 20,861

International Postgraduate Research Scholarships 1,925 1,848 1,925 1,848

Commonwealth Education Cost Scholarship (495) 217 (495) 217

Commonwealth Accommodation Scholarships (371) 282 (371) 282

Indigenous Access scholarships (133) 293 (133) 293

Total Scholarships 42(c) 23,776 23,501 23,776 23,501






2 Australian Government financial assistance continued

22

(d) EDUCATION Research

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Joint Research Engagement Program 28,184 30,522 28,184 30,522

Research Training Scheme 60,060 57,698 60,060 57,698

Research Infrastructure Block Grants 24,951 24,938 24,951 24,938

Sustainable Research Excellence in Universities 19,785 17,767 19,785 17,767

Total EDUCATION Research 42(d) 132,980 130,925 132,980 130,925

(e) Other Capital Funding

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Education Investment Fund 26,500 31,761 26,500 31,761

Total Other Capital Funding 42(e) 26,500 31,761 26,500 31,761

(f) Australian Research Council (ARC)

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

(i) Discovery

Projects 34,863 34,734 34,863 34,734

Fellowships 20,658 21,962 20,658 21,962

Early Career Research Awards 7,530 4,429 7,530 4,429

Indigenous Researchers Development - (5) - (5)

Total Discovery 63,051 61,120 63,051 61,120

(ii) Linkages

Infrastructure 2,565 1,987 2,565 1,987

International - 13 - 13

Projects 13,061 14,045 13,061 14,045

Research Fellowship Schemes - (58) - (58)

Total Linkages 15,626 15,987 15,626 15,987

(iii) Networks and Centres

Centres 11,139 5,485 11,139 5,485

Total Networks and Centres 11,139 5,485 11,139 5,485

Total ARC 42(f) 89,816 82,592 89,816 82,592






23

(g) Other Australian Government Financial Assistance

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

(i) National Health & Medical Research Council

Research Support

Project Grants 36,397 36,636 36,397 36,636

Programs 8,344 7,806 8,344 7,806

Development Grants 1,205 968 1,205 968

Partnerships 329 430 329 430

International Collaborations 355 207 355 207

Targeted Calls 6,371 6,260 6,371 6,260

Centres for Research Excellence 2,068 1,558 2,068 1,558

55,069 53,865 55,069 53,865

People Support

Early Career Fellowships 2,699 3,301 2,699 3,301

Established Career Fellowships 7,121 8,195 7,121 8,195

Career Development Fellowships 1,774 1,987 1,774 1,987

TRIP Fellowships 86 72 86 72

Postgraduate Fellowships 717 727 717 727

12,397 14,282 12,397 14,282

Infrastructure Support

Enabling Grants 422 658 422 658

Infrastructure Grants 518 548 518 548

940 1,206 940 1,206

Total NHMRC Grants 42(i) 68,406 69,353 68,406 69,353

(ii) Other

Non-capital 51,188 41,115 50,276 40,373

Capital 189 6,959 189 6,959

Total Other 51,377 48,074 50,465 47,332

Total Other Australian Government Financial Assistance 119,783 117,427 118,871 116,685

Total Australian Government Financial Assistance 894,534 836,591 893,622 835,849







24

(g) Other Australian Government Financial Assistance continued

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Reconciliation

Australian Government Grants (a+c+d+e+f+g) 697,940 678,753 697,028 678,011

HECS - HELP 168,531 134,194 168,531 134,194

FEE - HELP 23,480 19,800 23,480 19,800

SA - HELP payments 4,583 3,844 4,583 3,844

Total Australian Government Financial Assistance 894,534 836,591 893,622 835,849

(h) Australian Government Grants received - cash basis

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

CGS and other EDUCATION grants 305,229 292,547 305,229 292,547

Higher Education Loan Programs 200,116 156,860 200,116 156,860

Scholarships 23,775 23,501 23,775 23,501

EDUCATION research grants 132,980 130,925 132,980 130,925

Education Investment Fund 26,500 31,761 26,500 31,761

ARC grants - Discovery 63,051 61,119 63,051 61,119

ARC grants - Linkages 15,626 15,987 15,626 15,987

ARC grants - Networks and Centres 11,139 5,485 11,139 5,485

National Health & Medical Research Council grants 62,705 69,353 62,705 69,353

Other Australian Government Grants 51,377 47,686 50,465 47,332

Total Australian Government Grants received - cash basis 892,498 835,224 891,586 834,870

OS-Help (Net) 42(g) 1 (82) 1 (82)

Total Australian Government funding received - cash basis 892,499 835,142 891,587 834,788





25

3 State and local government financial assistance

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Non-capital

State government 47,102 61,222 47,102 60,883

Capital

State and local government 3,950 436 3,950 436

Total State and Local Government Financial Assistance 51,052 61,658 51,052 61,319

4 Fees and charges Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Course fees and charges

Fee-paying overseas students 280,475 267,973 280,475 267,973

Continuing education 3,481 2,709 3,406 2,696

Fee-paying domestic postgraduate students 10,564 11,869 10,564 11,869

Fee-paying domestic undergraduate students 3,801 3,509 3,801 3,509

Fee-paying domestic non-award students 720 576 720 576

Total course fees and charges 299,041 286,636 298,966 286,623

Other non-course fees and charges

Examination fees 251 284 251 284

Library fines 887 658 887 658

Parking fees and fines 5,344 5,136 5,345 5,142

Registration fees 2,285 2,780 2,285 2,781

Rental charges 5,244 4,847 5,509 5,231

Gym & sport fees 8,133 7,665 - -

Student residential fees 2,243 2,234 2,243 2,234

State clinical loading 331 569 331 569

Other services 6,192 10,399 6,196 10,467

Total other fees and charges 30,910 34,572 23,047 27,366

Total fees and charges 329,951 321,208 322,013 313,989






26

5 Investment revenue and income

(a) Investment revenue Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Interest from other entities 12,330 22,101 11,875 18,729

Dividends from other entities 1,471 4,039 1,471 13,546

Total investment revenue 13,801 26,140 13,346 32,275

(b) Investment income

Net fair value gains/(losses) on financial assets held for trading 23,949 15,017 23,949 15,017

Net fair value gains/(losses) on financial assets designated at fair value through the profit and loss (11,810) (2,688) (45,985) 16,332

Net gain/(loss) on sale of other financial assets 24 2,255 - -

Total other investment income 12,163 14,584 (22,036) 31,349

6 Royalties, trademarks and licences

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Royalties 25,936 19,152 10,051 7,342

Licences 2,601 2,232 438 527

Total royalties, trademarks and licences 28,537 21,384 10,489 7,869

7 Consultancy and contracts

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Research centres 17,694 21,140 17,709 22,675

Other contract revenue 28,183 25,953 10,912 13,785

Consultancy fees 32,018 43,002 18,279 25,985

Total consultancy and contracts 77,895 90,095 46,900 62,445





27

8 Revenue and other income

(a) Other revenue

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Donations and bequests 28,455 23,336 28,491 23,393

Scholarships and prizes 4,180 4,034 4,180 4,065

Non-government grants 122,236 104,159 133,505 111,986

Net foreign exchange gain/(loss) 3 300 (174) 368

Sale of goods 17,455 9,721 7,772 7,943

Sale of services 38,182 38,555 22,050 20,830

Sponsorships 2,342 1,650 2,506 1,921

Government grant element of Smart State Loans 7,341 8,461 7,341 8,461

Other grant income 95,340 - 95,340 -

Other revenue 13,755 18,493 13,032 16,109

Total other revenue 329,289 208,709 314,043 195,076

The Government grant element of Smart State Loans relates to the difference between the fair value of Smart State loans received during the period (classified as loan from Queensland Government (non-interest bearing) in Note 30) and fair value of the cash received by the University.

(b) Other income

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Other income 34 28 - -

Insurance proceeds 3,059 9,093 3,059 9,093

Loss/(gain) on deconsolidation 974 - - -

Total other income 4,067 9,121 3,059 9,093






28

9 Employee related expenses Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Academic

Salaries 348,921 333,386 347,026 331,259

Payroll tax 20,314 18,982 20,314 18,982

Worker's compensation 1,021 367 1,021 367

Long service leave expense 6,326 7,931 6,326 7,931

Annual leave 22,136 23,076 22,136 23,076

Other 13,103 13,202 13,155 14,031

Contributions to funded superannuation and pension schemes 55,196 52,957 55,196 52,957

Total academic 467,017 449,901 465,174 448,603

Non-academic

Salaries 328,217 321,670 303,159 293,496

Payroll tax 19,162 18,618 18,450 17,266

Worker's compensation 915 366 905 251

Long service leave expense 5,772 7,203 5,611 6,995

Annual leave 24,105 24,341 23,624 23,634

Other 6,064 6,565 6,354 7,030

Contributions to funded superannuation and pension schemes 49,646 48,358 48,185 45,894

Total non-academic 433,881 427,121 406,288 394,566

Total employee related expenses 900,898 877,022 871,462 843,169

The number of full-time equivalent employees in the consolidated entity at 31 December 2013 was 7,913 (2012: 7,986). The number of full-time equivalent employees in the parent entity at 31 December 2013 was 7,649 (2012: 7,714).





29

10 Depreciation and amortisation Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Depreciation

Buildings 50,510 49,576 50,509 49,574

Plant and equipment 36,935 35,643 36,151 34,812

Leasehold improvements 749 1,134 702 1,111

Heritage and cultural assets 4,901 6,514 4,901 6,514

Leased assets 9,845 8,504 9,845 8,504

Infrastructure assets 1,548 1,452 1,548 1,452

Land improvements 4,748 4,746 4,748 4,746

Total depreciation 109,236 107,569 108,404 106,713

Amortisation

Patents, trademarks and other rights 20 126 - -

Computer software, other 225 216 - -

Software internally generated 1,914 1,914 1,914 1,914

Intellectual property 104 117 104 117

Total amortisation 2,263 2,373 2,018 2,031

Total depreciation and amortisation 111,499 109,942 110,422 108,744

11 Repairs and maintenance Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Repairs and maintenance 50,188 70,090 49,843 69,811

Total repairs and maintenance 50,188 70,090 49,843 69,811

12 Finance costs

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Finance costs 12,911 12,682 12,875 12,628

Total finance costs expensed 12,911 12,682 12,875 12,628

Finance costs in the parent entity include the amortisation of the Smart State Loans of $1,908,007 (2012: $1,622,211) in accordance with AASB 139 Financial Instruments: Recognition and Measurement. Amortisation is calculated using the effective interest method.






30

13 Impairment of assets Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Impairment of receivables 1,126 911 5,654 4,147

Impairment of other financial assets 1,332 - 1,332 -

Impairment of property, plant and equipment 312 201 - 7

Total impairment of assets 2,770 1,112 6,986 4,154

14 Other expenses Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Scholarships, grants and prizes 71,913 68,666 71,199 68,497

Non-capitalised equipment 25,856 24,925 25,832 24,762

Advertising, marketing and promotional expenses 13,599 13,618 12,865 12,641

Travel, staff development and entertainment 55,410 59,952 54,270 58,257

Teaching materials and services 33,113 32,364 33,126 32,364

Laboratory supplies and services 32,756 33,165 32,822 33,298

Collaborative projects 64,764 56,533 67,031 58,048

Utilities and insurance 37,409 31,914 35,653 29,633

Computing supplies and services 14,527 12,004 14,297 11,758

Facilities and campus services 21,992 23,394 20,347 21,541

Refund of franking credits 11,207 - 11,207 -

Office supplies and furniture 8,087 9,399 7,686 8,909

Staffing expenses 2,613 3,001 2,502 2,910

Staff appointment expenses 2,897 4,149 2,676 3,915

Professional and consultancy fees 62,195 63,243 60,147 60,285

Memberships and subscriptions 6,483 6,740 6,309 6,410

Postage and freight 5,255 4,546 5,189 4,476

Telecommunications 9,036 10,151 8,745 9,810

Miscellaneous expenses 37,880 32,604 25,808 27,045

Commercialisation supplies and services 22,594 21,390 - -

Total other expenses 539,586 511,758 497,711 474,559





31

15 Income tax expense

(a) Income tax expense

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current tax 9 181 - -

Tax refunds - (10,858) - -

Deferred tax 2,363 2,866 - -

Total income tax expense (revenue) 2,372 (7,811) - -

(b) Numerical reconciliation of income tax expense to prima facie tax payable

Consolidated

2013 $'000

2012 $'000

Operating results from continuing operations before income tax expense 112,423 50,370

Tax at the Australian tax rate of 30% (2012: 30%) 33,727 15,111

Tax effect of amounts which are not deductible / (taxable) in calculating taxable income:

Net deficit/(surplus) relating to tax exempt entities (34,980) (15,263)

Non-deductible expenses & other assessable income 16 17

Non-assessable income & other deductible expenses (70) (876)

Tax refunds received in the current period in respect of prior periods - (10,858)

Deferred tax losses not brought to account 3,679 96

Reversal of deferred tax assets on obtaining tax exempt status - 3,962

Total income tax expense (revenue) 2,372 (7,811)






32

16 Remuneration of Auditors

During the year, the following fees were paid for services provided by the auditor of the parent entity, its related practices and non-related audit firms:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Audit and review of the Financial Statements

Fees paid to the Auditor General of Queensland for the audit and review of statutory financial reports under Australian Accounting Standards 775 852 438 478

Fees paid to Ernst & Young for the audit of statutory financial reports under US GAAP for the financial years ended 31 December 2011 and 2012 460 - 460 -

Fees paid to Ernst & Young for the audit of statutory financial reports under US GAAP for the financial years ended 31 December 2013 374 - 374 -

Total 1,609 852 1,272 478

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Other services

Other audit and assurance services

Fees paid to other audit firms for the audit of special purpose financial reports 53 119 41 111

Total 53 119 41 111





33

17 Cash and cash equivalents Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Cash at bank and on hand (a) 29,512 80,468 16,725 66,014

Cash held on behalf of third party (b) 3,522 11,574 3,522 11,574

Term deposits (maturity less than 90 days) (c) 3,498 207,059 - 199,648

Total cash and cash equivalent 36,532 299,101 20,247 277,236

The above figures are reconciled to cash at the end of the year as shown in the Statement of Cash Flows as follows:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Balances as above 36,532 299,101 20,247 277,236

Balance as per cash flow statement 36,532 299,101 20,247 277,236

(a) Cash at bank and on hand

Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates.

(b) Cash held on behalf of third party

These Commonwealth funds are a contribution by the Commonwealth Government for the construction of facilities for the Translation Research Institute (TRI). The monies currently being held on behalf of the Commonwealth cannot be expended by the University. These funds have been quarantined from the University’s normal operating funds in separate bank accounts. The University has no entitlement to interest on the funds invested.






34

18 Receivables Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Debtors - external 87,002 87,766 71,931 71,459

less: allowance for impaired receivables (6,883) (6,788) (6,541) (6,664)

Total debtors - external 80,119 80,978 65,390 64,795

Sundry loans and advances - external 2 4 2 4

Student loans 33 40 33 40

Total current receivables - external 80,154 81,022 65,425 64,839

Debtors - controlled entities - - 4,102 7,099

Loans and advances - controlled entities - - 254 -

Accrued revenue 7,434 5,426 3,059 3,104

Other debtors 2,920 38 2,920 38

Total current receivables 90,508 86,486 75,760 75,080

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Non-Current

Debtors - external 592 788 - -

less: allowance for impaired receivables (71) (10) - -

521 778 - -

Loans and advances - controlled entities - - 6,839 5,975

less: allowance for impaired receivables - - (5,481) -

Total non-current receivables 521 778 1,358 5,975

(a) Impaired receivables

As at 31 December 2013, receivables of the Group with a nominal value of $6.954 million (2012: $6.798 million) were impaired and have been fully provided for as allowance for impaired receivables. Trade and research receivables have been assessed as being impaired on an individual basis, while student debt has been assessed as being impaired by using the percentage of recovery method.

The ageing of these receivables is as follows:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current Receivables

3 to 6 months 708 235 708 235

Over 6 months 6,246 6,563 11,314 6,429

6,954 6,798 12,022 6,664





18 Receivables continued

(a) Impaired receivables continued

35

As at 31 December 2013 trade receivables of the Group of $25.426 million (2012: $21.080 million) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these receivables is as follows:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Trade Receivables

3 to 6 months 9,268 5,694 6,884 5,333

Over 6 months 16,158 15,386 7,354 7,022

25,426 21,080 14,238 12,355

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Movements in the provision for impaired receivables are as follows:

At 1 January (6,798) (6,306) (6,664) (11,313)

Provision for impairment recognised during the year (1,283) (1,944) (5,655) (58)

Receivables written off during the year as uncollectible 1,127 1,452 297 4,707

At 31 December (6,954) (6,798) (12,022) (6,664)

The creation and release of the provision for impaired receivables has been included in ‘impairment of assets'’ in the income statement.

The other amounts within receivables do not contain impaired assets. It is expected that these amounts will be received in full.

19 Inventories Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Stores 2,060 1,917 1,905 1,588

Livestock 1,831 1,686 1,831 1,686

Work in progress & raw materials 144 142 - -

Press stock 304 1,549 304 1,549

Total current inventories 4,339 5,294 4,040 4,823






36

20 Other financial assets

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Term deposits (maturity greater than 90 days) 185,487 200 185,487 200

Total current other financial assets 185,487 200 185,487 200

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Non-Current

At fair value through profit or loss

Shares - listed entities 2,450 2,683 - -

Shares - unlisted entities 3,823 13,120 - -

Shares associates - - 32,807 78,793

Managed investment portfolio 117,610 88,936 117,610 88,936

Convertible notes 3,909 3,291 - -

Total at fair value through profit or loss 127,792 108,030 150,417 167,729

Available-for-sale financial assets

Shares - unlisted entities 7,959 8,551 7,959 8,446

Shares - controlled entities - - 18,739 18,740

Total available-for-sale 7,959 8,551 26,698 27,186

Total non-current other financial assets 135,751 116,581 177,115 194,915

The managed investment portfolio consists of funds derived from endowments and bequests and income earned thereon. A major part of these funds can only be applied to restricted purposes.

21 Other non-financial assets Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Prepayments 8,704 8,992 8,349 8,596

Total other non-financial assets 8,704 8,992 8,349 8,596





37

22 Investments accounted for using the equity method

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Investments in associates 32,983 78,793 - -

Total investments accounted for using the equity method 32,983 78,793 - -

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Reconciliation

Balance at 1 January 78,793 64,450 - -

Share of profit/(loss) for the year (45,905) 16,419 - -

Dividends - (2,076) - -

Additions 95 - - -

Balance at 31 December 32,983 78,793 - -

Ownership Interest %

2013 2012

Associates

Translational Research Institute Trust 25 25

Coridon Pty Ltd 45 -

Summarised financial information in respect of associates is set out below.

2013 $'000

2012 $'000

Financial Position

Total assets 357,444 345,289

Total liabilities 225,512 30,118

Net assets 131,932 315,171

Share of associates' net assets 32,983 78,793

Financial Performance

Total revenue 61,676 69,856

Total expenses (245,296) (4,442)

Profit/(loss) (183,620) 65,414

Share of associates' profit/(loss) (45,905) 16,419

The associates have no contingent liabilities or capital commitments at 31 December 2013 or 2012. The Translational Research Institute Trust is a collaboration between The University of Queensland, Queensland University of Technology, Mater Medical Research Institute Ltd and Queensland Health, developed with the aim of translating the findings of basic biomedical research into better patient outcomes.



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000

Plan

t and

Eq

uipm

ent

$'00

0

Leas

ehol

d Im

prov

emen

ts

$'00

0

Leas

ed

Ass

ets

$'00

0

Her

itage

an

d cu

ltura

l A

sset

s $'

000

Infr

astr

uctu

re

$'00

0 To

tal

$'00

0

At 1

Jan

uary

201

2

Cos

t

115,

538

-

36

36

5,74

1

2,

008

16

,045

-

-

49

9,36

8

Va

lua

tion

-

42

0,88

8

2,34

4,57

6

-

-

106,

300

13

6,90

5

62

,112

3,07

0,78

1

Acc

um

ula

ted

de

pre

cia

tion

-

(42,

301)

(753

,539

)

(177

,507

)

(1,9

71)

(5

,835

)

(37,

329)

(17,

411)

(1,0

35,8

93)

Net

boo

k a

mou

nt

11

5,53

8

378,

587

1,

591,

073

18

8,23

4

37

116,

510

99

,576

44,7

01

2,

534,

256

M

ovem

ent

C

ost a

nd v

alua

tion

Ad

diti

on

s

172,

713

(2

5)

6,

935

51

,077

-

-

1,68

9

3,

342

235,

731

D

onat

ions

rec

eive

d

-

-

1,

400

25

5

-

-

72

0

-

2,

375

R

eval

uatio

n in

crem

ents

-

98

9,

317

-

-

8,

000

30

6

19

3

17

,914

R

eval

uatio

n de

crem

ents

-

(905

)

-

-

-

-

(11,

340)

-

(12,

245)

D

ispo

sals

-

-

(7,3

62)

(1

9,51

6)

-

-

(3

82)

-

(2

7,26

0)

Don

atio

ns m

ade

-

-

-

(810

)

-

-

(77)

-

(887

) R

ecla

ssifi

ed a

s he

ld fo

r sa

le

-

(6

00)

(2

,039

)

-

-

-

-

-

(2,6

39)

Tra

nsf

ers

(61,

716)

-

51

,626

87

8

8,

950

26

2

-

-

- Im

pa

irm

en

t lo

ss r

eco

gn

ise

d in

pro

fit/(

loss

)

-

-

(10)

(2

,098

)

-

-

-

-

(2,1

08)

Dep

reci

atio

n:

D

epre

ciat

ion

char

ge

-

(4

,746

)

(49,

576)

(3

5,64

3)

(1

,134

)

(8,5

04)

(6

,514

)

(1,4

52)

(1

07,5

69)

Rev

alua

tion

incr

emen

ts

-

(5

9)

68

7

-

-

-

-

(44)

584

R

eval

uatio

n de

crem

ents

-

-

-

-

-

-

6,06

7

-

6,

067

D

ispo

sals

-

-

4,55

0

15,4

44

-

-

18

2

-

20

,176

D

onat

ions

mad

e

-

-

-

57

5

-

-

-

-

57

5

Rec

lass

ified

as

held

for

sale

-

-

1,71

6

-

-

-

-

-

1,71

6

Tra

nsf

ers

-

-

208

-

(2

08)

-

-

-

-

Imp

air

me

nt

loss

re

cog

nis

ed

in p

rofit

/(lo

ss)

-

-

(2

)

1,90

9

-

-

-

-

1,

907

Net

boo

k a

mou

nt

22

6,53

5

372,

350

1,

608,

523

20

0,30

5

7,

645

11

6,26

8

90,2

27

46

,740

2,66

8,59

3

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TAT

EM

EN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

1 D

EC

EM

BE

R 2

013


The

Uni

vers

ity o

f Que

ensl

and

Not

es to

the

Fina

ncia

l Sta

tem

ents

Fo

r the

Yea

r End

ed 3

1 D

ecem

ber 2

013

23

Prop

erty

, pla

nt a

nd e

quip

men

t con

tinue

d

41

Con

solid

ated

Wor

ks in

Pr

ogre

ss

$'00

0

Land

and

Im

prov

emen

ts

$'00

0 B

uild

ings

$'

000

Plan

t and

Eq

uipm

ent

$'00

0

Leas

ehol

d Im

prov

emen

ts

$'00

0

Leas

ed

Ass

ets

$'00

0

Her

itage

an

d cu

ltura

l as

sets

$'

000

Infr

astr

uctu

re

$'00

0 To

tal

$'00

0

At 1

Jan

uary

201

3

Cos

t

226,

535

-

26

39

5,60

6

10

,958

16,0

45

-

3,34

2

652,

512

V

alu

atio

n

-

419,

456

2,

404,

445

-

-

11

4,56

2

127,

821

62,3

05

3,12

8,58

9

Acc

um

ula

ted

de

pre

cia

tion

-

(47,

106)

(795

,948

)

(195

,300

)

(3,3

13)

(1

4,33

9)

(37,

594)

(18,

907)

(1

,112

,507

)

Net

boo

k a

mou

nt

22

6,53

5

372,

350

1,

608,

523

20

0,30

6

7,

645

11

6,26

8

90,2

27

46

,740

2,

668,

594

M

ovem

ent

C

ost a

nd v

alua

tion:

Ad

diti

on

s

169,

689

-

1,

047

39

,140

119

95

,475

1,

783

6,61

0

313,

863

D

onat

ions

rec

eive

d

-

-

3,

940

66

1

-

-

2,

804

-

7,40

5

Rev

alua

tion

incr

emen

ts

-

11

,700

56,3

06

-

-

2,28

6

533

1,24

3

72,0

68

Rev

alua

tion

decr

emen

ts

-

-

(6

,349

)

-

-

-

(5,7

57)

-

(1

2,10

6)

Dis

posa

ls

-

(3

49)

(2

28)

(2

7,65

4)

(1

14)

(1

3,41

4)

(1,2

78)

(4

3)

(43,

080)

D

onat

ions

mad

e

-

-

-

(8

30)

-

-

-

-

(8

30)

Tra

nsf

ers

(243

,102

)

-

240,

934

2,

985

1,80

9

(2,6

26)

-

-

-

Imp

air

me

nt

loss

re

cog

nis

ed

in p

rofit

/(lo

ss)

-

-

-

(6

94)

-

-

-

-

(6

94)

Dep

reci

atio

n:

-

Dep

reci

atio

n ch

arge

-

(4,7

48)

(5

0,51

0)

(36,

935)

(749

)

(9,8

45)

(4

,901

)

(1,5

48)

(1

09,2

36)

Rev

alua

tion

incr

emen

ts

-

(6

88)

(3

6,93

0)

-

-

(4,3

77)

-

(3

46)

(4

2,34

1)

Rev

alua

tion

decr

emen

ts

-

-

4,

127

-

-

-

3,

421

-

7,54

8

Dis

posa

ls

-

10

8

160

24

,504

101

13

,414

61

9

19

38

,925

D

onat

ions

mad

e

-

-

-

37

0

-

-

-

-

37

0

Tra

nsf

ers

-

-

-

(2,6

31)

-

2,

631

-

-

-

Imp

air

me

nt

loss

re

cog

nis

ed

in p

rofit

/(lo

ss)

-

-

-

38

0

-

-

-

-

38

0

153,

122

37

8,37

3

1,82

1,02

0

199,

602

8,81

1

199,

812

87

,451

52,6

75

2,90

0,86

6

At 3

1 D

ecem

ber 2

013

C

ost

15

3,12

2

-

27

409,

214

12,7

72

95

,340

-

9,

953

68

0,42

8

Va

lua

tion

-

43

0,80

7

2,70

0,09

0

-

-

116,

989

12

5,90

5

63

,506

3,

437,

297

A

ccu

mu

late

d d

ep

reci

atio

n

-

(5

2,43

4)

(8

79,0

98)

(2

09,6

12)

(3

,961

)

(12,

517)

(3

8,45

4)

(2

0,78

3)

(1,2

16,8

59)

Net

boo

k am

ount

153,

122

37

8,37

3

1,82

1,01

9

199,

602

8,81

1

199,

812

87

,451

52,6

76

2,90

0,86

6

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TAT

EM

EN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

1 D

EC

EM

BE

R 2

013






42

24 Intangible assets Parent

Patents, trademarks and other

rights $'000

Software internally generated

$'000

Software purchased

$'000 Software WIP

$'000

Intellectual property

$'000 Total $'000

At 1 January 2012

Cost - 24,964 - - - 24,964

Valuation - - - - 1,260 1,260

Accumulated amortisation - (15,844) - - (479) (16,323)

Net book amount

- 9,120 - - 781 9,901 Movement Cost and valuation:

Additions - - - 180 - 180

Donations received - - - - 50 50

Amortisation charge - (1,914) - - (117) (2,031)

- (1,914) - 180 (67) (1,801) At 31 December 2012 Cost - 24,964 - 180 - 25,144

Valuation - - - - 1,310 1,310

Accumulated amortisation - (17,758) - - (596) (18,354)

Net book amount

- 7,206 - 180 714 8,100 Movement Cost and valuation:

Additions - - - 57 - 57


Revaluation decrements - - - - (22) (22)

Amortisation charge - (1,914) - - (104) (2,018)

- (1,914) - 57 (76) (1,933) At 31 December 2013 Cost - 24,964 - 237 - 25,201

Valuation - - - - 1,337 1,337

Accumulated depreciation - (19,672) - - (699) (20,371)

Net book amount

- 5,292 - 237 638 6,167





24 Intangible assets continued

43

Consolidated

Patents, trademarks and other

rights $'000

Software internally generated

$'000

Software purchased

$'000 Software WIP

$'000

Intellectual property

$'000 Total $'000

At 1 January 2012

Cost 207 24,964 792 - - 25,963

Valuation - - - - 1,260 1,260

Accumulated amortisation (95) (15,844) (137) - (479) (16,555)

112 9,120 655 - 781 10,668 Movement Cost and valuation

Additions 34 - 59 180 - 273


Amortisation charge (126) (1,914) (216) - (117) (2,373)

(92) (1,914) (157) 180 (67) (2,050) At 31 December 2012 Cost 241 24,964 850 180 - 26,235

Valuation - - - - 1,310 1,310


20 7,206 498 180 714 8,618 Movement Cost and valuation

Additions - - 14 57 - 71


Revaluation decrements - - - - (22) (22)

Amortisation charge (20) (1,914) (225) - (104) (2,263)

(20) (1,914) (211) 57 (76) (2,164) At 31 December 2013 Cost 241 24,964 864 237 - 26,306

Valuation - - - - 1,337 1,337


Net book amount

- 5,292 286 237 638 6,453

The Group has intangible assets with an original cost of $9.649 million (2012: $9.649 million) and a written down value of nil that are still being used in the provision of services.

Amortisation of intangibles is shown in the line item ‘Depreciation and amortisation’ in the Income Statement.

Research and development expensed during the period is included in ‘Other expenses’ in the Income Statement.






44

25 Deferred tax assets and liabilities

(a) Deferred tax asset

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Deferred tax asset

The balance comprises temporary differences attributable to:

Employee benefits - 456 - -

Provision account movements - 23 - -

Non-deductible accruals - 28 - -

Carried forward tax losses - 1,854 - -

Other - 1 - -

Net deferred assets - 2,362 - -

Deferred tax assets are recognised for unused tax losses only if it is probable that future taxable amounts will be available to utilise those losses. The total value of deferred tax assets in respect of tax losses not recognised at year end is $0.

(b) Deferred tax asset movements consolidated $'000 At 1 January 2012 5,228

Charged/(credited) to the income statement (2,866)

At 31 December 2012 2,362 Charged/(credited) to the income statement (2,362)

At 31 December 2013 -





45

26 Trade and other payables Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Trade payables - external 18,524 27,173 17,383 26,398

Accrued salaries 6,508 3,535 6,508 3,535

Sundry payables and accrued expenses 40,071 40,803 27,076 26,208

Trade and other payables - controlled entities - - 259 1,480

Other payables 9,045 7,722 (30) (1,246)

Total current trade and other payables 74,148 79,233 51,196 56,375

27 Borrowings

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Finance lease liability 34 89 3,645 - 3,501

Other financial liabilities - 190 - -

Total current borrowings 89 3,835 - 3,501

Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Non-Current

Finance lease obligation 34 115,698 113,200 115,643 113,056

Total non-current borrowings

115,698 113,200 115,643 113,056

Total borrowings 115,787 117,035 115,643 116,557






46

28 Provisions Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current provisions expected to be settled within 12 months

Workers compensation 988 455 988 455

Long service leave 21,241 20,358 20,534 19,340

Annual leave 46,964 46,507 45,430 44,314

Other provisions 111 11 - -

Subtotal 69,304 67,331 66,952 64,109

Current provisions expected to be settled after more than 12 months

Annual leave 25,937 26,511 25,937 26,148


Subtotal 77,930 77,239 77,930 76,876

Total current provisions 147,234 144,570 144,882 140,985

Non-current provisions


Workers compensation 712 399 712 399

Total non-current provisions 28,102 27,185 27,486 26,367

Total provisions 175,336 171,755 172,368 167,352

29 Current tax liabilities

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Income tax payable/(receivable) 4 (35) - -

Total current tax liabilities 4 (35) - -





47

30 Other liabilities

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Current

Revenue received in advance 39,483 42,725 38,421 41,338

Loan from Queensland Government 1,000 1,000 1,000 1,000

Loan from controlled entity - - 1,717 1,717

Cash held on behalf of third parties 3,522 11,574 3,522 11,574

Other 3,930 3,996 3,930 3,996

Total current other liabilities 47,935 59,295 48,590 59,625

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Non-current

Loan from Queensland Government 40,515 36,005 40,515 36,005

Other 213 789 - -

Total non-current other liabilities 40,728 36,794 40,515 36,005

Total other liabilities 88,663 96,089 89,105 95,630

Smart State Loans

In 2001 the Queensland Government announced the establishment of the Smart State Research Facilities Fund (SSRFF) to promote the development of research and infrastructure for science and technology in Queensland. To date a total of $125,716,776 has been received from the SSRFF for 15 projects, in the form of interest free loans repayable over periods that vary between 30 and 35 years. Repayments have commenced during the current year. Provided the Group meets all of its obligations under the various loan agreements, one third of each loan will be forgiven. The Group has a potential financial liability to repay the full amount of the loans which will only result if certain conditions under the various loan agreements are not met. Management does not expect these potential financial liabilities to crystallise into obligations and therefore financial liabilities disclosed in the above table are management’s estimate of amounts that will be payable by the Group. No material losses are expected and as such, the fair values disclosed are management’s estimate of amounts that will be payable by the Group. In accordance with AASB 139 Financial Instruments: Recognition and Measurement, the loans have initially been recognised at their fair value. Fair value has been estimated as the net present value of the expected future cash payments to be made, discounted by using the yield on a long term Treasury Fixed Coupon Bond. In determining the future cash payments, the assumption has been made that all obligations under the loan agreements will be met. Subsequent to initial recognition, the loans are measured at amortised cost using the effective interest method.

Revenue received in advance

The University has funds donated by external parties (including Government) with specific restrictions that result in the funds not meeting the control requirements necessary for recognition as revenue. A liability has been recognised to show these funds as revenue in advance.






48

31 Reserves and retained surplus

(a) Reserves

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Reserves

Asset revaluation reserve 1,676,619 1,651,470 1,676,619 1,651,470

Business combination reserve 200 200 - -

Total Reserves 1,676,819 1,651,670 1,676,619 1,651,470

(b) Movements Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Revaluation surplus

Property, plant and equipment revaluation surplus 1,651,470 1,639,151 1,651,470 1,639,151

Transfers in 25,149 12,319 25,149 12,319

1,676,619 1,651,470 1,676,619 1,651,470

Total reserves 1,676,819 1,651,670 1,676,619 1,651,470

(c) Retained surplus Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Retained earnings at the beginning of the financial year 1,156,524 1,096,682 1,153,579 1,090,198

Net operating surplus attributable to members of UQ 113,241 59,842 118,229 63,381

Retained earnings at end of the financial year 1,269,765 1,156,524 1,271,808 1,153,579

32 Non-controlling interest Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Interest in:

Restricted funds 3,754 11,977 - -

Retained surplus (2,132) (7,527) - -

Total non-controlling interest 1,622 4,450 - -





49

33 Reconciliation of operating result after income tax to net cash flows from operating activities Consolidated Parent

Note

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Operating result for the period 110,051 58,181 118,229 63,381

Depreciation and amortisation 10 111,499 109,942 110,422 108,744

Donations of property, plant and equipment (7,455) (2,425) (7,455) (2,425)

Non-cash license fees (1,225) (493) - -

Dividends from jointly controlled entities - 517 - -

Non-cash other government grant (95,340) - (95,340) -

Net (gain) / loss on sale of non-current assets 4,192 6,358 4,043 6,243

Net (gain) / loss on disposal of other financial assets (24) (2,255) - -

Interest expense on Smart State loans & finance leases 12,902 12,682 12,875 12,628

Impairment of non-current financial assets 1,852 - 6,713 -

Impairment of property, plant and equipment 13 312 201 - 7

Loss/(gain) on deconsolidation (974) - - -

Equity accounted investment 45,905 (16,419) - -

Unrealised foreign exchange loss/(gain) (214) (27) (146) (6)

Interest revenue on related entity loans - - (89) 38

Change in fair value of other financial assets (12,139) (12,329) 22,036 (31,349)

Change in fair value of Smart State loan liabilities (7,341) (8,461) (7,341) (8,461)

Change in operating assets and liabilities:

(Increase) / decrease in receivables (4,263) 23,400 (172) 25,342

(Increase) / decrease in inventories 863 (58) 784 (424)

(Increase) / decrease in other assets 290 (1,003) 248 (1,039)

(Increase) / decrease in deferred tax asset 2,362 2,866 - -

Increase / (decrease) in payables (5,023) (19,122) (5,180) (15,621)

Increase / (decrease) in provisions 3,583 13,298 5,017 12,777

Increase / (decrease) in tax liabilities 39 163 - -

Increase / (decrease) in other liabilities (3,503) 7,776 (3,134) 7,212

Net cash provided by / (used in) operating activities 156,349 172,792 161,510 177,047






50

34 Commitments

(a) Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities are:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Property, plant and equipment

Within one year 27,712 138,154 27,712 138,154

Later than one year 2,000 34,800 2,000 34,800

Total capital commitments 29,712 172,954 29,712 172,954

(b) Lease commitments

(i) Operating Leases

The University leases various types of equipment, predominately IT related equipment, and premises under non-cancellable operating leases generally over a three year period.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Within one year 1,968 1,846 946 1,136

Between one year and five years 4,496 4,542 3,811 3,732

Total future minimum lease payments 6,464 6,388 4,757 4,868

(ii) Finance Leases

In November 2009, the University has entered into a lease for the construction of the Pharmacy Australia Centre of Excellence (PACE) building which expires in November 2049. Under the terms of the lease, the building transfers to the University on termination of the lease.

Commitments in relation to finance leases are payable as follows:

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Within one year 8,556 11,969 8,448 11,804


Later than five years 483,624 493,132 483,624 493,132

Total future minimum lease payments 528,644 540,603 528,475 540,279

Future finance charges (412,857) (423,757) (412,832) (423,722)

Recognised as a liability 115,787 116,846 115,643 116,557

The PACE lease is structured so that for the first 22 years interest expense exceeds payments made.





34 Commitments continued

(b) Lease commitments continued

51

For this reason, the lease liability will continue to grow until 2032 and no portion of the liability is disclosed as current.

The weighted average interest rate implicit in the finance leases in 2013 is: 9.19% (2012: 9.19%)

(c) Other commitments

University Innovation & Investment Trust No. 1 (UIIT)

Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Within one year 840 800 840 800


Total 2,476 3,300 2,476 3,300

University Innovation & Investment Trust No. 1 (UIIT)

The University has entered into a funding deed with the University Innovation and Investment Trust No. 1 (UIIT). Under the deed, the University may be required to meet calls on partly paid units held in the UIIT. The UIIT is a venture fund founded by The University of Queensland, The University of Melbourne and the University of New South Wales for the purpose of providing seed funding to further develop promising research outcomes and to assist with the commercialisation of such research outcomes.

As at 31 December 2013, the University held 18,000,001 Partly Paid $1 Units paid up to $15,490,415, and may be required to meet calls totalling $2,475,831. The rate of drawdown depends on: 1. Rate of investment in new ventures; 2. Rate of liquidation of investments; and 3. If unit holders request that the funds from any liquidated investments be retained in the trust to be offset against future calls, or paid to them immediately.

Purchase order commitments Consolidated Parent

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Within one year 24,264 35,606 24,264 35,606

24,264 35,606 24,264 35,606

Other operating commitments

In December 2013, UniQuest gave a non-binding commitment to make a special, one off follow on investment of up to $2,000,000 in one of the company's investee entities, Spinifex Pharmaceuticals Pty Ltd. It is expected that the investee's financing round will close in early 2014.

In 2012 UQ entered into a licence to occupy a portion of the TRI facility. Under this agreement, UQ is committed to contribute funds to cover the operational costs of the facility over the 30 year licence term. UQ contributed $7.758 million in 2013 (2012:$0).






52

35 Related parties

(a) Parent entities

The ultimate parent entity within the Group is The University of Queensland.

(b) Controlled entities

Interests in controlled entities are set out in Note 37.

(c) Key management personnel

Disclosures relating to directors and specified executives are set out in Note 39.

(d) Transactions with related parties

The following transactions occurred with controlled entities as related parties:

Parent

2013 $'000

2012 $'000

Revenue

Sale of goods and services 17,935 20,266

Royalty revenue 8,525 7,073

Dividends - 10,942

Interest 88 38

26,548 38,319

Expenditure

Purchase of goods and services 5,546 7,565

Grants and funding 1,465 3,287

7,011 10,852

(e) Loans to/from related parties

Parent

2013 $'000

2012 $'000

Loans to controlled entities

Beginning of the year 5,975 11,880

Loans advanced 1,200 1,252

Loan repayment received (170) (200)

Interest charged 88 354

Impairment of loan (5,481) -

Forgiveness of loan - (7,311)

End of year 1,612 5,975





35 Related parties continued

(e) Loans to/from related parties continued

53

Parent

2013 $'000

2012 $'000

Loans from controlled entities

Beginning of the year 1,717 1,717

End of year 1,717 1,717

A provision for impairment of $5.481 million has been recognised on The University of Queensland’s loan to one of its controlled entities, UQ Health Care Limited. This was recognised as an expense in the 2013 year (parent entity only).

Loans receivable from controlled entities are unsecured and are repayable when the University determines that the financial position of each controlled entity reasonably allows it to do so.

Loans payable to controlled entities are unsecured and repayable on demand.

(f) Outstanding balances

The following balances are outstanding at the reporting date in relation to transactions with related parties:

Parent

2013 $'000

2012 $'000

Current receivables

Controlled entities - sales of goods and services 4,102 7,099

Controlled entities - loans and advances 254 -

4,356 7,099

Non-current receivables (loans)

Controlled entities - loans and advances 1,358 5,975

1,358 5,975

Current payables

Controlled entities - purchase of goods and services 259 1,480

Controlled entities - loans and advances 1,717 1,717

1,976 3,197

No provisions for doubtful debts have been raised in relation to any outstanding balances, and no expense has been recognised in respect of bad or doubtful debts due from related parties, except for what had been disclosed in Note 35(e).






35 Related parties continued

(f) Outstanding balances continued

54

Trade receivables from controlled entities are unsecured and due to settlement no more than 30 days from the date of recognition.

Trade payables to controlled entities are unsecured and are generally settled on 30 day terms.

(g) Guarantees

The University of Queensland has provided a guarantee to some of its controlled entities that it will provide funding should a situation arise where the controlled entity is unable to meet its liabilities. How that funding is provided, whether by way of share subscription, gift, loan or by some other means will be determined at such time as it is required to be made available. The controlled entities to whom a guarantee has been provided are UniQuest Pty Ltd, JKTech Pty Ltd, Sarv Pty Ltd, UQ Health Care Limited and UQ College Limited.

36 Contingencies

(a) Contingent liabilities

Parent Entity

The University has a number of ongoing minor legal cases awaiting outcome. Estimates cannot be reliably measured for a number of these cases, but the University believes that the final amounts payable would be unlikely to exceed $2,000 in aggregate.

Supplementary Benefit Payments

The University has a contingent liability which may arise in respect of supplementary pension payments to be made to some retired staff members or their dependants. These retired staff were members of a Staff Superannuation Scheme which was terminated in June 1984. Former members who had been granted supplementary benefits at this date continue to receive these benefits.

Unimutual

For the period 1 January 1990 to date, The University of Queensland has been a member of Unimutual, a mutual organisation that provides discretionary risk protection to universities and other educational & research institutions. Under its rules, Unimutual may make a call for a supplementary contribution from members in the event of there being a deficit in any year. A supplementary contribution would only be levied after the application of reinsurance recoveries and investment income for the appropriate year. Supplementary contributions may be levied pro rata according to the original contribution paid.

Environmental and Make-Good Obligations

The University has a number of potential environmental obligations including asbestos remediation and Indooroopilly mine site rehabilitation costs.

Asbestos remediation costs are only identified when action needs to be taken to remove the asbestos. The University maintains a register of known and suspected contamination on University property. At reporting date, no asbestos has been identified as posing an immediate hazard or earmarked for removal as part of the scope of works in a building refurbishment.





36 Contingencies continued

(a) Contingent liabilities continued

55

At reporting date, no decision has yet been taken to close the Indooroopilly mine and therefore mine site rehabilitation costs are not known.

Third Party Liabilities – Consolidated Entity

Under the University's intellectual property policy, the future realisation of the Group's non-current financial assets for cash will give rise to the obligation to pay one third of the net proceeds to investors. These liabilities are contingent as they arise only upon future realisation of the underlying investment assets for cash. The realisation of cash proceeds from investment assets is uncertain due to risks associated with development of the technology, the availability of capital from investors and funding from grants, the acceptance of the technology in its target market and the general economic climate. The fair value of the investments in the commercialisation entities has been reduced to reflect the fact that their value to the Group represents only two-thirds of their full value.

(b) Contingent assets

Third Party Liabilities – Parent Entity

Under the University's intellectual property policy, the future realisation of the non-current financial assets held by subsidiaries for cash will give rise to an economic benefit of one-third of the net proceeds to the University as the parent entity. These receivables in the parent entity are contingent as they arise only upon future realisation of the underlying investment assets for cash. The realisation of cash proceeds from investment assets is uncertain due to risks associated with development of the technology, the availability of capital from investors and funding from grants, the acceptance of the technology in its target market and the general economic climate.

No other contingencies of a significant nature exist or are recognised in the accounts.

(c) Guarantees

The University has provided the following bank guarantees:

i) $5 million to Workcover Queensland as it is self-insured for workers' compensation. The guarantee has no expiration date.

ii) $1.414 million to the U.S. Department of Education to ensure that it continues to receive Federal Student Aid (FSA) from the U.S. Government in respect of U.S. students. The guarantee expires on 24 May 2018.

iii) $5.610 million in respect of a loan facility entered into by International House to construct new facilities.






56

37 Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in Note 1(b):

Name of Entity

Country of Incorporation Class of Shares

2013 %

2012 %

UQ Investment Trust Goup

IMBcom Pty Ltd Australia Ordinary 100.00 100.00 UQ Investment Trust Australia Ordinary 100.00 100.00 Cyclagen Pty Ltd Australia Ordinary 100.00 100.00 Kalthera Pty Ltd Australia Ordinary 100.00 100.00 IMBcom Asset Management Pty Ltd Australia Ordinary 100.00 100.00

UQ Holdings Group

UQ Holdings Pty Ltd Australia Ordinary 100.00 100.00 SARV Pty Ltd Australia Ordinary 100.00 100.00

UQ Health Care Ltd Australia

Limited by Guarantee - -

UQ College Ltd Australia


UQ Sport Ltd Australia


UQH Finance Pty Ltd Australia Ordinary 100.00 - (registered 10 October 2013)

JKTech Group

JK Tech Pty Ltd Australia Ordinary 94.00 94.00 Applied Resource Economics Pty Ltd Australia Ordinary 100.00 100.00 JK Africa Mining Solutions Pty Ltd South Africa Ordinary 100.00 100.00 JKTech South America SpA Chile Ordinary 100.00 100.00 SUSOP Pty Ltd Australia Ordinary 100.00 100.00

UniQuest Group

UniQuest Pty Ltd Australia Ordinary 100.00 100.00 Activetorque Pty Ltd Australia Ordinary - 57.00 (deconsolidated 1 January 2013)

Ausonex Pty Ltd Australia Ordinary 100.00 100.00 Australia China BioEnergy Pty Ltd Australia Ordinary 100.00 100.00 CILR Pty Ltd Australia Ordinary 100.00 100.00 Coridon Pty Ltd Australia Ordinary - 54.00 (deconsolidated 1 January 2013)

Dendright Pty Ltd Australia Ordinary 100.00 100.00 First Investor Pty Ltd Australia Ordinary 53.00 53.00 Herdvac Pty Ltd Australia Ordinary 100.00 100.00 Leximancer Pty Ltd Australia Ordinary 60.00 60.00 Lucia Publishing Systems Pty Ltd Australia Ordinary 95.00 95.00 Neurotide Pty Ltd Australia Ordinary 58.00 58.00 (deregistered 30 October 2013)

Pepfactants Pty Ltd Australia Ordinary 67.00 58.00 Rapisure Pty Ltd Australia Ordinary 100.00 100.00 Symbiosis Pty Ltd Australia Ordinary 100.00 100.00





37 Subsidiaries continued

57

UATC Pty Ltd Australia Ordinary 100.00 100.00 UTSAT Pty Ltd Australia Ordinary 100.00 100.00 UWAT Pty Ltd Australia Ordinary 100.00 100.00 UTASAT Pty Ltd Australia Ordinary 100.00 100.00 Vacquel Pty Ltd Australia Ordinary 71.00 71.00

UQ Foundation Trust

UQ Jakarta Office Pty Ltd

(registered 16 August 2013) Australia Ordinary 100.00 -

UniQuest Asset Trust Group

UniQuest Asset Trust Australia Ordinary 100.00 100.00 Aussie Colours Pty Ltd Australia Ordinary - 58.00 (deconsolidated 1 January 2013)

Bilexys Pty Lrd Australia Ordinary 100.00 100.00 Bioherbicides Australia Pty Ltd Australia Ordinary - 75.00 (deconsolidated 1 January 2013)

Ceramipore Australia Ordinary 100.00 100.00 Cloevis Pty Ltd Australia Ordinary 100.00 100.00 DuraCyc Power Pty Ltd Australia Ordinary 100.00 100.00 LanguageMap Pty Ltd Australia Ordinary - 100.00 (deconsolidated 1 January 2013)

Lightanate Pty Ltd Australia Ordinary - 58.00 (deconsolidated 1 January 2013)

Metallotek Pty Ltd Australia Ordinary 100.00 100.00 Millipede Forming Pty Ltd Australia Ordinary 75.00 75.00 Neo Rehab Pty Ltd Australia Ordinary 100.00 100.00 Progel Pty Ltd Australia Ordinary - 53.00 (deconsolidated 1 January 2013)

Tenasitech Pty Ltd Australia Ordinary - 54.00 (deconsolidated 1 January 2013)

Snoresound Pty Ltd Australia Ordinary 100.00 100.00

IMBcom Asset Trust Group

IMBcom Asset Trust Australia Ordinary 100.00 100.00 CCA Therapeutics Pty Ltd Australia Ordinary 100.00 100.00 Global Change Institute Pty Ltd Australia Ordinary 100.00 100.00

38 Events occurring after the reporting date

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.






58

39 Key management personnel disclosures

(a) Names of responsible persons and executive officers

The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the University during 2013. Further information on these positions can be found in the body of the Annual Report under the section relating to corporate governance.

Current Incumbents

Position Responsibilities Contract classification and appointment authority Date appointed to position

Vice-Chancellor and President

Chief Executive Officer Executive - Senate 8/10/2012

Senior Deputy Vice-Chancellor

Deputy Chief Executive Officer Executive - Vice Chancellor 8/10/2012

Deputy Vice-Chancellor (Academic)

Academic Policy and related matters Executive - Vice Chancellor

Previous appointment to 14/04/2013. Current appointment from 15/04/2013.

Deputy Vice-Chancellor (International)

International Student matters Executive - Vice Chancellor Previous appointment to

01/11/2013.

Vice-President (International) (Acting)

International Student matters Executive - Vice Chancellor Current appointment from

02/11/2013.

Deputy Vice-Chancellor (Research)

Research Policy and related matters Executive - Vice Chancellor 29/06/2009

Chief Operating Officer Operational Matters and Infrastructure

Executive - Vice Chancellor 16/03/2009





39 Key management personnel disclosures continued

59

(b) Remuneration of board members and executives

The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. The contracts provide for the provision of performance related cash bonuses and other benefits including motor vehicles.

For the 2013 year, remuneration of key executive management personnel increased by 2.5%.

Remuneration packages for key executive management personnel comprise the following components:-

• Short term employee benefits which include: - Base – consisting of base salary, allowances and leave entitlements paid and provided for the entire

year or for that part of the year during which the employee occupied the specified position. Amounts disclosed equal the amounts expensed in the Statement of Comprehensive Income.

- Non-monetary benefits – consisting of provision of vehicle together with fringe benefits tax applicable to the benefit.

• Long term employee benefits include long service leave accrued.

• Post-employment benefits include superannuation contributions.

• Redundancy payments are not applicable to senior staff however termination payments may be applicable in particular circumstances.

• Performance bonuses may be paid or payable annually depending upon the achievement of pre-determined individual performance targets as agreed by the supervisor and approved by the relevant approving authority.

Total fixed remuneration is calculated on a ‘total cost’ basis and includes the base and non-monetary benefits, long term employee benefits and post-employment benefits.



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39 Key management personnel disclosures continued

62

(c) Performance Payments

The basis for performance bonuses paid or payable in the 2012 financial year is set out below:

Position Date Paid Basis for payment

Vice-Chancellor and President 22/03/2013 Performance Appraisal - achievement of key result areas

Senior Deputy Vice-Chancellor 22/03/2013 Performance Appraisal - achievement of key result areas

Deputy Vice-Chancellor (Academic) 22/03/2013 Performance Appraisal - achievement of key result areas

Deputy Vice-Chancellor (International)

22/03/2013 Performance Appraisal - achievement of key result areas

Deputy Vice-Chancellor (Research) 22/03/2013 Performance Appraisal - achievement of key result areas

Chief Operating Officer 22/03/2013 Performance Appraisal - achievement of key result areas

Performance bonuses payable in relation to the 2013 financial year have not been paid at the date of the financial statements. They are expected to be paid in March 2014.

The aggregate performance bonuses paid to all key executive management personnel are as follows:

2013 2012

$'000 $'000

Performance payments to key executive management personnel 540 409





63

40 Financial risk management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group

Senate provides written principles for overall risk management and written policies covering specific areas, such as cash management, investment of funds, borrowing of funds and the use of foreign exchange contracts.

Details of the significant accounting policies and methods adopted, including the criteria for recognition and the basis of measurement, in respect of each class of financial instrument, are disclosed in Note 1(k).

The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit risk and liquidity risk.

(a) Market risk

(i) Interest rate risk

The Group's exposure to market risk for changes in interest rates relates primarily to the Group's short-term investments. The Group manages its short-term cash flow interest rate risk by investing in fixed term funds.

Significant assumptions Reasonably possible movements in interest rates were determined based on relationships with financial institutions, a review of the last two year's historical movements and economic forecaster's expectations.

(ii) Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily the US dollar. To manage its foreign exchange risk arising from future commercial transactions, the Group has, at times, entered into foreign exchange contracts. It is the University's policy to not enter into forward exchange contracts until a commitment is in place. The forward currency contracts must be in the same currency as the hedged item.

Significant assumptions Reasonably possible movements in foreign exchange rates were determined based on a review of the last five year's historical movements and economic forecaster's expectations.

(iii) Equity market risk

The Group is exposed to equity securities price risk because of long-term investments held by the Group. The Group manages its exposure to market risk by diversifying its long-term investments across different investment asset classes.

Significant assumptions Reasonably possible movements in equity prices were determined based on a review of the last three year's historical movements and economic forecaster's expectations.

(iv) Summarised sensitivity analysis

The following table summarises the sensitivity of the Group's financial assets and financial liabilities to interest rate risk, foreign exchange risk and equity market risk.


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(1

16)

(1

16)

1

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1

16

-

-

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-

Ca

sh h

eld

on

be

ha

lf o

f th

ird

pa

rty

3

,52

2

-

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-

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-

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-

-

-

-

-

-

Sh

ort

-te

rm d

ep

osi

ts le

ss t

ha

n 9

0 d

ays

3,4

98

(5

2)

(5

2)

1

7

1

7

-

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-

-

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-

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Re

ceiv

ab

les

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eb

tors

91

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9

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(334

)

(334

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4

33

4

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Fin

an

cia

l ass

ets

- A

vaila

ble

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r sa

le

7

,95

9

-

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-

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-

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(796

)

(796

)

79

6

79

6

Fin

an

cia

l ass

ets

- F

air

va

lue

th

rou

gh

P &

L

12

7,7

92

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(1

2,77

9)

(12,

779)

12

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12

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9

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rm d

ep

osi

ts g

rea

ter

tha

n 9

0 d

ays

1

85

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7

(2,7

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(2

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)

92

7

92

7

-

-

-

-

-

-

-

-

Inve

stm

en

ts in

ass

oci

ate

s

32

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3

-

-

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-

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-

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-

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Fin

an

cia

l li

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Tra

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s

74

,14

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Bo

rro

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gs

11

5,7

87

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-

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Lo

an

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m Q

LD

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v.

4

1,5

15

-

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-

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-

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-

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-

Oth

er

liab

ilitie

s

7,6

65

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-

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To

tal i

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ea

se/(

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ase

)

(2

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)

(2,8

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9

44

9

44

(4

50)

(4

50)

4

50

4

50

(1

3,57

5)

(13,

575)

13

,57

5

13

,57

5

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

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EM

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TS

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R T

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YE

AR

EN

DE

D 3

1 D

EC

EM

BE

R 2

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Th

e U

niv

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ity

of

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ee

ns

lan

d

No

tes

to t

he

Fin

anci

al S

tate

men

ts

Fo

r th

e Y

ea

r E

nd

ed

31

De

ce

mb

er

20

13

40

F

ina

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ial

ris

k m

an

ag

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t c

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ue

d

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Ma

rke

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sk

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65

31

De

ce

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In

tere

st

rate

ris

k F

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ch

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qu

ity

ma

rke

t ri

sk

-1.5

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2

47

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Ca

sh h

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on

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ha

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74

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Sh

ort

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rm d

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ts le

ss t

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ays

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07

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1,0

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1

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-

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Re

ceiv

ab

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- D

eb

tors

87

,26

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-

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(141

)

(141

)

14

1

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1

-

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Fin

an

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ets

- A

vaila

ble

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r sa

le

8

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1

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(855

)

(855

)

85

5

85

5

Fin

an

cia

l ass

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Fa

ir V

alu

e t

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ug

h P

&L

1

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-

-

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1

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Te

rm d

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rea

ter

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n 9

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ays

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Inve

stm

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ts in

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oci

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78

,79

3

-

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-

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-

-

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Fin

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l li

ab

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Tra

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79

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16

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9

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tal i

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(3

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11

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8

NO

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L S

TAT

EM

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EN

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D 3

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R 2

013






40 Financial risk management continued

66

(b) Credit risk

Credit risk is the risk that a contracting entity will not complete its obligation under a financial instrument or customer contract that will result in a financial loss to the Group. The Group is exposed to credit risk primarily from its operating activities (primarily from customer receivables) and from its dealings with financial institutions (deposits with banks and financial institutions).

The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount of those assets, net of any provisions for impairment of those assets, as disclosed in the Statements of Financial Position and Notes to the Financial Statements.

The economic entity does not have any material credit risk exposure to any single receivable or group of receivables, under financial instruments entered into by the economic entity.

There is no significant concentration of credit risk within the Group.

(c) Liquidity risk

Liquidity risk refers to the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

The Group's objective is to maintain a balance amongst continuity of funding, flexibility through the use of deposits with banks and cash funds, and accessibility to a drawdown stand-by facility.

The following tables summarise the maturity of the Group’s financial assets and financial liabilities:


The

Uni

vers

ity o

f Que

ensl

and

Not

es to

the

Fina

ncia

l Sta

tem

ents

Fo

r the

Yea

r End

ed 3

1 D

ecem

ber 2

013

40

Fina

ncia

l ris

k m

anag

emen

t con

tinue

d

(c)

Liqu

idity

risk

con

tinue

d

67

A

vera

ge In

tere

st

rate

Va

riabl

e in

tere

st

rate

W

ithin

1 y

ear

1 - 5

yea

rs

5+ y

ears

N

on-In

tere

st

Tota

l

20

13

20

12

20

13

$'00

0 2

01

2

$'0

00

20

13

$'00

0 2

01

2

$'0

00

20

13

$'00

0 2

01

2

$'0

00

20

13

$'00

0 2

01

2

$'0

00

20

13

$'00

0 2

01

2

$'0

00

20

13

$'00

0 2

01

2

$'0

00

Fina

ncia

l Ass

ets:

B

an

k b

ala

nce

s

2.75

3.6

9

29,5

12

3,4

98

-

-

-

-

-

-

-

-

29

,512

3

,49

8

Cas

h he

ld o

n be

half

of th

ird p

arty

2.51

3.6

1

3,52

2

11

,57

4

-

-

-

-

-

-

-

-

3,52

2

11

,57

4

Sh

ort

te

rm d

ep

osi

ts

4.

02

4

.77

-

-

3,

498

2

07

,05

9

-

-

-

-

-

-

3,49

8

20

7,0

59

Rec

eiva

bles

- d

eb

tors

-

-

-

-

-

-

-

-

-

-

91,0

29

87

,26

4

91,0

29

87

,26

4

Ava

ilab

le f

or

sale

fin

an

cia

l ass

ets

-

-

-

-

-

-

-

-

-

-

7,95

9

8,5

51

7,95

9

8,5

51

Des

igna

ted

at fa

ir va

lue

thro

ugh

inco

me

-

-

-

-

-

-

-

-

-

-

127,

792

1

08

,03

0

127,

792

1

08

,03

0

Te

rm d

ep

osi

ts

4.

69

5

.99

-

-

18

5,18

7

-

100

2

00

20

0

-

-

-

185,

487

2

00

Inve

stm

en

t in

ass

oci

ate

s

-

-

-

-

-

-

-

-

-

-

32,9

83

78

,79

3

32,9

83

78

,79

3

Tota

l Fin

anci

al A

sset

s

33,0

34

15

,07

2

188,

685

2

07

,05

9

100

2

00

200

-

25

9,76

3

28

2,6

38

48

1,78

2

50

4,9

69

Fina

ncia

l Lia

bilit

ies:

T

rad

e a

nd

oth

er

pa

yab

les

-

-

-

-

-

-

-

-

-

-

74

,148

7

9,2

33

74

,148

7

9,2

33

Bo

rro

win

gs

9.

19

9

.19

-

-

89

3

,83

5

-

-

115,

698

1

13

,20

0

-

-

115,

787

1

17

,03

5

Lo

an

fro

m Q

LD

Go

vern

me

nt

-

-

-

-

-

-

-

-

-

-

41

,515

3

7,0

05

41

,515

3

7,0

05

Oth

er

liab

ilitie

s

-

-

-

-

-

-

-

-

-

-

7,66

5

16

,35

9

7,66

5

16

,35

9

Tota

l Fin

anci

al L

iabi

litie

s

-

-

89

3,8

35

-

-

11

5,69

8

11

3,2

00

12

3,32

8

13

2,5

97

23

9,11

5

24

9,6

32

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TAT

EM

EN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

1 D

EC

EM

BE

R 2

013






68

41 Fair value measurement

(a) Fair value measurements

The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price.

Due to the short-term nature of the current receivables and payables their carrying value is assumed to approximate their fair value and based on credit history it is expected that the receivable that are neither past due nor impaired will be received when due.

The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:

Carrying Amount Fair Value

2013 $'000

2012 $'000

2013 $'000

2012 $'000

Financial assets

Cash and cash equivalents 36,532 299,101 36,532 299,101

Receivables 91,029 87,264 91,029 87,264

Investments in associates 32,983 78,793 32,983 78,793

Available for sale financial assets 7,959 8,551 7,959 8,551

Designated at fair value through income 127,792 108,030 127,792 108,030

Term deposits 185,487 200 185,487 200

Total financial assets 481,782 581,939 481,782 581,939

Financial Liabilities

Payables 74,148 79,233 74,148 79,233

Borrowings 115,787 117,035 115,787 117,035

Other liabilities - loan from QLD Government 41,515 37,005 41,515 37,005

Other liabilities 7,665 16,359 7,665 16,359

239,115 249,632 239,115 249,632

The Group measure and recognises the following assets and liabilities at fair value on a recurring basis:

• Financial assets at fair value through profit or loss. • Available-for-sale financial assets. • Land, buildings and other property plant and equipment carried at fair value.

(b) Fair value hierarchy

The University of Queensland categorises assets and liabilities measured at fair value into a hierarchy based on the level of inputs used in measurements.

Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities.





41 Fair value measurement continued

(b) Fair value hierarchy continued

69

Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(i) Recognised fair value measurements

Fair value measurements recognised in the balance sheet are categorised into the following levels at 31 December 2013. Comparative information for non-financial assets has not been provided as permitted by the transitional provisions of the new standard. Note

2013 $'000

Level 1 $'000

Level 2 $'000

Level 3 $'000

Recurring fair value measurements

Financial assets Financial assets at fair value through profit or loss 20 127,792 120,060 - 7,732 Available-for-sale financial assets 20 7,959 - - 7,959

Total financial assets 135,751 120,060 - 15,691

Non-financial assets Land and buildings 23 2,678,553 - 6,873 2,671,680

Total non-financial assets 2,678,553 - 6,873 2,671,680

There were no transfers between Levels 1 and 2 for recurring fair value measurements during the year. For transfers in and out of Level 3 measurements, see 41(d) below.

The University of Queensland's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Disclosed fair values

The fair value of assets or liabilities traded in active markets (such as the managed investment portfolio and shares held in listed entities) is based on quoted market prices for identical assets or liabilities at the balance sheet date (Level 1). This is the most representative of fair value in the circumstances.

The fair value of non-current borrowings disclosed in Note 27 is estimated by discounting the future contractual cash flows at the current market interest rates that are available to the group for similar financial instruments. For the period ending 31 December 2013, the borrowing rates were determined to be between -% and -%, depending on the type of borrowing. The fair value of current borrowings approximates the carrying amount, as the impact of discounting is not significant (Level 2).






41 Fair value measurement continued

70

(c) Valuation techniques used to derive Level 2 and Level 3 fair values

(i) Recurring fair value measurements

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. This is the case for unlisted equity securities which are carried at cost.

(d) Fair value measurements using significant unobservable inputs (Level 3)

The following table is a reconciliation of Level 3 items for the periods ended 31 December 2013 and 2012.

Level 3 Fair Value Measurement 2013

Shares and convertible notes unlisted entities

$'000

Land buildings and other

property plant and equipment carried at fair

value $'000

Total $'000

Opening balance 34,249 2,376,093 2,410,342

Acquisitions 1,233 239,931 241,164

Transfers from level 2 1,401 - 1,401

Lease instalments - - -

Disposals - (228) (228)

Sales (9,403) - (9,403)

Issues 845 - 845

Recognised in profit or loss (12,634) - (12,634)

Recognised in other comprehensive income - 55,884 55,884

Closing balance

15,691 2,671,680 2,687,371


Th

e U

niv

ers

ity

of

Qu

ee

ns

lan

d

No

tes

to t

he

Fin

anci

al S

tate

men

ts

Fo

r th

e Y

ea

r E

nd

ed

31

De

ce

mb

er

20

13

42

A

cq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t F

ina

nc

ial

As

sis

tan

ce

co

nti

nu

ed

74

42

A

cq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t F

ina

nc

ial

As

sis

tan

ce

(a)

DII

SR

TE

- C

GS

an

d o

the

r D

IIS

RT

E g

ran

ts

Co

mm

on

wea

lth

Gra

nts

S

chem

e #

1

Ind

igen

ou

s S

up

po

rt

Pro

gra

m

Par

tner

ship

&

Par

tici

pat

ion

Pro

gra

m

#2

Dis

abili

ty S

up

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rt

Pro

gra

m

Tra

nsi

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nal

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st

Pro

gra

m

Pro

mo

of

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in

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rnin

g a

nd

Tea

chin

g

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ent

En

tity

(U

niv

ersi

ty)

On

ly

Not

e

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

Fin

anci

al a

ssis

tanc

e re

ceiv

ed in

CA

SH

dur

ing

the

repo

rtin

g pe

riod

(tot

al c

ash

rece

ived

from

Aus

tral

ian

Gov

ernm

ent f

or th

e pr

ogra

m)

29

8,31

4

28

6,18

5

1,11

9

884

4,

263

4,

334

65

82

-

(7

00)

75

5

1,07

7

Net

acc

rual

adj

ustm

ents

-

-

-

-

-

-

-

-

-

-

(1

44)

-

Rev

enue

for

the

perio

d

2(a)

298,

314

28

6,18

5

1,11

9

884

4,

263

4,

334

65

82

-

(7

00)

61

1

1,07

7

Sur

plus

/(de

ficit)

from

the

prev

ious

yea

r

-

-

-

-

73

9

278

-

20

-

-

984

-

Tot

al r

even

ue in

clud

ing

accr

ued

reve

nue

29

8,31

4

28

6,18

5

1,11

9

884

5,

002

4,

612

65

102

-

(7

00)

1,

595

1,

077

Less

exp

ense

s in

clud

ing

accr

ued

expe

nses

(2

98,3

14)

(2

86,1

85)

(1

,119

)

(884

)

(3,8

01)

(3

,873

)

(65)

(102

)

-

700

(4

92)

(9

3)

Sur

plus

/(de

ficit)

for

the

repo

rtin

g pe

riod

-

-

-

-

1,20

1

739

-

-

-

-

1,

103

98

4

Rew

ard

Fu

nd

ing

T

ota

l

Par

ent

En

tity

(U

niv

ersi

ty)

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ly

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e

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

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0

Fin

anci

al a

ssis

tanc

e re

ceiv

ed in

CA

SH

dur

ing

the

repo

rtin

g pe

riod

(tot

al c

ash

rece

ived

from

Aus

tral

ian

Gov

ernm

ent f

or th

e pr

ogra

m)

713

685

30

5,22

9

29

2,54

7

Net

acc

rual

adj

ustm

ents

-

-

(1

44)

-

Rev

enue

for

the

perio

d

2(a)

713

68

5

305,

085

292,

547

Sur

plus

/(de

ficit)

from

the

prev

ious

yea

r

-

-

1,

723

29

8

Tot

al r

even

ue in

clud

ing

accr

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reve

nue

71

3

685

30

6,80

8

29

2,84

5

Less

exp

ense

s in

clud

ing

accr

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expe

nses

(7

13)

(6

85)

(3

04,5

04)

(2

91,1

22)

Sur

plus

/(de

ficit)

for

the

repo

rtin

g pe

riod

-

-

2,30

4

1,72

3

#1 b

asic

CG

S g

rant

am

ount

, CG

S –

Reg

iona

l Loa

ding

, CG

S –

Ena

blin

g Lo

adin

g, M

aths

and

Sci

ence

Tra

nsiti

on L

oadi

ng a

nd F

ull F

ee P

lace

s T

rans

ition

Loa

ding

.

#2 In

clud

es E

quity

Sup

port

Pro

gram

.

#3 In

clud

es C

olla

bora

tion

and

Str

uctu

ral A

djus

tmen

ts P

rogr

am

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TAT

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EN

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1 D

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e U

niv

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ity

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tes

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he

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anci

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tate

men

ts

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r th

e Y

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31

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42

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cq

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tal

of

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str

ali

an

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ve

rnm

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t F

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nc

ial

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sis

tan

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nu

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74

(b)

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he

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du

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tio

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me

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ex

cl

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LP

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ust

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ove

rnm

ent

pay

men

ts

on

ly)

FE

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niv

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Cas

h P

ayab

le/(

Rec

eiva

ble)

at t

he b

egin

ning

of t

he y

ear

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66)

1,

163

(8

84)

93

4

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Fin

anci

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ceiv

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repo

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g pe

riod

16

8,96

5

13

3,03

1

26,5

69

19

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4,58

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3,84

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200,

117

156,

860

Cas

h av

aila

ble

for

the

perio

d

165,

799

134,

194

25

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583

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844

19

6,06

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Rev

enue

ear

ned

2(

b)

(1

68,5

31)

(1

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60)

(2

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(2

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(4

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(3,8

44)

(1

96,5

94)

(1

63,0

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Cas

h P

ayab

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eiva

ble)

at t

he e

nd o

f the

yea

r

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(3,1

66)

2,

205

(8

84)

-

-

(5

27)

(4

,050

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#4 P

rogr

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in r

espe

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f FE

E-H

ELP

for

Hig

her

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ly a

nd e

xclu

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fund

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ceiv

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res

pect

of V

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(c)

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ho

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hip

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esea

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cho

lars

hip

s

Co

mm

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wea

lth

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du

cati

on

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mm

on

wea

lth

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cco

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od

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ola

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Ind

igen

ou

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cces

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cho

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hip

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tity

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niv

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(tot

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or th

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22

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20,8

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1,

925

1,

848

(4

95)

21

7

(371

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282

(1

33)

29

3

23,7

76

23

,501

Rev

enue

for

the

perio

d

2(c)

22,8

50

20

,861

1,92

5

1,84

8

(495

)

217

(3

71)

28

2

(133

)

293

23

,776

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01

Sur

plus

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ficit)

from

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prev

ious

yea

r

7,

869

3,

570

-

-

42

5

485

73

4

912

19

8

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clud

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30

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31

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1,

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70

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293

33

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28,4

68

Less

exp

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s in

clud

ing

accr

ued

expe

nses

(2

0,01

9)

(1

6,56

2)

(1

,925

)

(1,8

48)

81

(277

)

(153

)

(460

)

(65)

(95)

(22,

081)

(19,

242)

Sur

plus

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ficit)

for

the

repo

rtin

g pe

riod

10,7

00

7,

869

-

-

11

425

21

0

734

-

19

8

10,9

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9,

226

#5 In

clud

es G

rand

fath

ered

Sch

olar

ship

s, N

atio

nal P

riorit

y an

d N

atio

nal A

ccom

mod

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n P

riorit

y S

chol

arsh

ips

resp

ectiv

ely.

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TE

S T

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FIN

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L S

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e U

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of

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sis

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74

(d)

DII

SR

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se

arc

h

Join

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esea

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ng

agem

ent#

6 #

7

Res

earc

h T

rain

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S

chem

e R

esea

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Infr

astr

uct

ure

B

lock

Gra

nts

Su

stai

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xcel

len

ce in

U

niv

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ties

T

ota

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niv

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2012

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2013

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2012

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Fin

anci

al a

ssis

tanc

e re

ceiv

ed in

CA

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dur

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repo

rtin

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riod

(tot

al c

ash

rece

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from

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tral

ian

Gov

ernm

ent f

or th

e pr

ogra

m)

28,1

84

30

,522

60,0

60

57

,698

24,9

51

24

,938

19,7

85

17

,767

132,

980

130,

925

Rev

enue

for

the

perio

d

2(d)

28,1

84

30

,522

60,0

60

57

,698

24,9

51

24

,938

19,7

85

17

,767

132,

980

130,

925

Sur

plus

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ficit)

from

the

prev

ious

yea

r

12

5

-

-

-

3,86

1

8,72

0

-

-

3,98

6

9,14

8

Tot

al r

even

ue in

clud

ing

accr

ued

rev

enue

28

,309

30,5

22

60

,060

57,6

98

28

,812

33,6

58

19

,785

17,7

67

13

6,96

6

14

0,07

3

Less

exp

ense

s in

clud

ing

accr

ued

expe

nses

(2

7,94

3)

(3

0,39

7)

(6

0,06

0)

(5

7,69

8)

(2

8,81

2)

(2

9,79

7)

(1

9,78

5)

(1

7,76

7)

(1

36,6

00)

(1

36,0

87)

Sur

plus

/(de

ficit)

for

the

repo

rtin

g pe

riod

366

12

5

-

-

-

3,86

1

-

-

366

3,

986

#6 In

clud

es In

stitu

tiona

l Gra

nts

Sch

eme.

#7

The

rep

orte

d S

urpl

us fo

r JR

E (

$242

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r 20

13 is

exp

ecte

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be

rolle

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er fo

r fu

ture

yea

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pit

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ing

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uca

tio

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vest

men

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un

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tal

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ote

2013

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Fin

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ceiv

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dur

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al c

ash

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from

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tral

ian

Gov

ernm

ent f

or th

e pr

ogr

am)

26,5

00

31

,761

26,5

00

31

,761

Rev

enue

for

the

perio

d

2(e)

26,5

00

31

,761

26,5

00

31

,761

Sur

plus

/(de

ficit)

from

the

prev

ious

yea

r

15

,603

18,8

69

15

,603

18,8

69

Tot

al r

even

ue in

clud

ing

accr

ued

reve

nue

42

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50,6

30

42

,103

50,6

30

Less

exp

ense

s in

clud

ing

accr

ued

expe

nses

(1

6,85

0)

(3

5,02

7)

(1

6,85

0)

(3

5,02

7)

Sur

plus

/(de

ficit)

for

the

repo

rtin

g pe

riod

25,2

53

15

,603

25,2

53

15

,603

NO

TE

S T

O T

HE

FIN

AN

CIA

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EN

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R T

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YE

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DE

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1 D

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BE

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013



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e U

niv

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ity

of

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tes

to t

he

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al S

tate

men

ts

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r th

e Y

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31

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cq

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sis

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75

(f)

Au

str

ali

an

Re

se

arc

h C

ou

nc

il G

ran

ts

Pro

ject

s F

ello

wsh

ips

Ind

igen

ou

s R

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rch

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Dev

elo

pm

ent

Ear

ly C

aree

r R

esea

rch

er A

war

d

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tal

(i)

Dis

cove

ry

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ent

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tity

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niv

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ty)

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ly

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2013

$'00

0

2012

$'00

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2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

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0

2012

$'00

0

2013

$'00

0

2012

$'00

0

Fin

anci

al a

ssis

tanc

e re

ceiv

ed in

CA

SH

dur

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repo

rtin

g pe

riod

(tot

al c

ash

rece

ived

from

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tral

ian

Gov

ernm

ent f

or th

e pr

ogra

m)

34,8

63

34,7

34

20,6

58

21,9

62

-

(5)

7,

530

4,

429

63

,051

61

,120

Rev

enue

for

the

perio

d

2(f)

(i)

34

,863

34

,734

20

,658

21

,962

-

(5

)

7,53

0

4,42

9

63,0

51

61,1

20

Sur

plus

/(de

ficit)

from

the

prev

ious

yea

r

17

,790

15

,967

16

,413

9,

520

-

5

1,

398

-

35

,601

25

,492

Tot

al r

even

ue in

clud

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accr

ued

reve

nue

52

,653

50

,701

37

,071

31

,482

-

-

8,

928

4,

429

98

,652

86

,612

Less

exp

ense

s in

clud

ing

accr

ued

expe

nses

(3

3,38

3)

(32,

911)

(1

9,46

7)

(15,

069)

-

-

(5

,857

)

(3,0

31)

(5

8,70

7)

(51,

011)

Sur

plus

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ficit)

for

the

repo

rtin

g pe

riod

19,2

70

17,7

90

17,6

04

16,4

13

-

-

3,07

1

1,39

8

39,9

45

35,6

01

Res

earc

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Sch

emes

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fras

tru

ctu

re

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al

Pro

ject

s T

ota

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(ii)

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kag

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Par

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En

tity

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niv

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ly

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$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

$'00

0

2013

$'00

0

2012

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0

2013

$'00

0

2012

$'00

0

Fin

anci

al a

ssis

tanc

e re

ceiv

ed in

CA

SH

dur

ing

the

repo

rtin

g pe

riod

(tot

al c

ash

rece

ived

from

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tral

ian

Gov

ernm

ent f

or th

e pr

ogra

m)

-

(58)

2,56

5

1,98

7

-

13

13

,061

14,0

45

15

,626

15,9

87

Rev

enue

for

the

perio

d

2(f)

(ii)

-

(5

8)

2,

565

1,

987

-

13

13,0

61

14

,045

15,6

26

15

,987

Sur

plus

/(de

ficit)

from

the

prev

ious

yea

r

-

-

37

6

1,33

0

-

8

11,7

44

9,

896

12

,120

11,2

34

Tot

al r

even

ue in

clud

ing

accr

ued

reve

nue

-

(5

8)

2,

941

3,

317

-

21

24,8

05

23

,941

27,7

46

27

,221

Less

exp

ense

s in

clud

ing

accr

ued

expe

nses

-

58

(2,1

55)

(2

,941

)

-

(21)

(12,

741)

(12,

197)

(14,

896)

(15,

101)

Sur

plus

/(de

ficit)

for

the

repo

rtin

g pe

riod

-

-

786

37

6

-

-

12,0

64

11

,744

12,8

50

12

,120

NO

TE

S T

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FIN

AN

CIA

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FO

R T

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DE

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1 D

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BE

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niv

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of

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lan

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to t

he

Fin

anci

al S

tate

men

ts

Fo

r th

e Y

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nd

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31

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mb

er

20

13

42

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cq

uit

tal

of

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ve

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ial

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sis

tan

ce

co

nti

nu

ed

77

Cen

tres

T

ota

l

(iii)

Net

wo

rks

and

Cen

tres

P

aren

t E

nti

ty (

Un

iver

sity

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nly

N

ote

2013

$'

000

2012

$'

000

2013

$'

000

2012

$'

000

Fin

anci

al a

ssis

tanc

e re

ceiv

ed in

CA

SH

dur

ing

the

repo

rtin

g pe

riod

(to

tal c

ash

rece

ived

from

Aus

tral

ian

Gov

ernm

ent f

or th

e pr

ogra

m)

11,1

39

5,

485

11

,139

5,48

5

Rev

enue

for

the

perio

d

2(f)

(iii)

11

,139

5,48

5

11,1

39

5,

485

Sur

plus

/(de

ficit)

from

the

prev

ious

yea

r

3,

344

3,

083

3,

344

3,

083

Tot

al r

even

ue in

clud

ing

accr

ued

reve

nue

14

,483

8,56

8

14,4

83

8,

568

Less

exp

ense

s in

clud

ing

accr

ued

expe

nses

(7

,412

)

(5,2

24)

(7

,412

)

(5,2

24)

Sur

plus

/(de

ficit)

for

the

repo

rtin

g pe

riod

7,07

1

3,34

4

7,07

1

3,34

4

(g)

OS

-HE

LP

Par

ent

En

tity

(U

niv

ersi

ty)

On

ly

Not

e

2013

$'00

0

2012

$'00

0

Cas

h re

ceiv

ed d

urin

g th

e re

port

ing

perio

d

2,

447

1,

897

Cas

h sp

ent d

urin

g th

e re

port

ing

perio

d

(2

,446

)

(1,9

79)

Net

cas

h re

ceiv

ed

1

(82)

Cas

h su

rplu

s/(d

efic

it) fr

om th

e pr

evio

us p

erio

d

192

27

4

Cas

h su

rplu

s/(d

efic

it) fo

r th

e re

port

ing

perio

d

26

19

3

192

(h)

Stu

de

nt

Se

rvic

es

an

d A

me

nit

ies

Fe

e

Par

ent

En

tity

(U

niv

ersi

ty)

On

ly

Not

e 20

13

$'00

0 20

12

$'00

0

Uns

pent

/(ov

ersp

ent)

rev

enue

from

pre

viou

s pe

riod

1,

611

-

SA

-HE

LP r

even

ue e

arne

d 2(

b)

4,

583

3,

844

Stu

dent

ser

vice

s fe

es d

irect

from

stu

dent

s 4

3,

229

3,

230

Tot

al r

even

ue e

xpen

dabl

e in

per

iod

9,

423

7,

074

Stu

dent

ser

vice

s ex

pens

es d

urin

g pe

riod

(5,6

66)

(5

,463

)

Uns

pent

/(ov

ersp

ent)

stu

dent

ser

vice

s re

venu

e

3,75

7

1,61

1

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TAT

EM

EN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

1 D

EC

EM

BE

R 2

013






42 Acquittal of Australian Government Financial Assistance continued

78

(i) National Health & Medical Research Council Grants (i) Research Support

Project Grants Programs Development Grants Partnerships

Parent Entity (University) Only Note 2013 2012 2013 2012 2013 2012 2013 2012

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Financial assistance received in CASH during the reporting period (total cash received from Australian Government for the program)

33,305

36,636

7,649

7,806

1,123

968

302

430

Net accrual adjustments

3,092

-

695

-

82

-

27

-

Revenue for the period 2(g)(i) 36,397

36,636

8,344

7,806

1,205

968

329

430

Surplus/(deficit) from the previous year

10,805

6,464

1,924

1,647

- 129

261

360

252

Total revenue including accrued revenue

47,202

43,100

10,268

9,453

1,076

1,229

689

682

Less expenses including accrued expenses -

34,435 -

32,295 -

7,720 -

7,529 -

751 -

1,358 -

521 -

322

Surplus/(deficit) for the reporting period

12,767

10,805

2,548

1,924

325

- 129

168

360

International Collaborations Targeted Calls Centres for Research

Excellence Total


$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000


325

207

5,798

6,260

1,906

1,558

50,408

53,865


30

-

573

-

162

-

4,661

-

Revenue for the period 2(g)(i)

355

207

6,371

6,260

2,068

1,558

55,069

53,865


- 1

-

1,995

1,754

1,437

1,397

16,391

11,775


354

207

8,366

8,014

3,505

2,955

71,460

65,640

Less expenses including accrued expenses -

378 -

208 -

6,681 -

6,019 -

2,020 -

1,518 -

52,506 -

49,249


- 24

- 1

1,685

1,995

1,485

1,437

18,954

16,391






(i) National Health & Medical Research Council Grants continued

79

(ii) People Support

Early Career Fellowships

Established Career Fellowships

Career Development Fellowships

TRIP Fellowships


$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000


2,489

3,301

6,530

8,195

1,633

1,987

80

72


210

-

591

-

141

-

6

-

Revenue for the period 2(g)(ii) 2,699

3,301

7,121

8,195

1,774

1,987

86

72


341

322

- 1

- 460

181

97

12

-


3,040

3,623

7,120

7,735

1,955

2,084

98

72 Less expenses including accrued expenses

- 2,680

- 3,282

- 7,767

- 7,736

- 1,747

- 1,903

- 74

- 60


360

341

- 647

- 1

208

181

24

12

Postgraduate Scholarships Total

Parent Entity (University) Only Note

2013 2012 2013 2012

$'000 $'000 $'000 $'000


661

727

11,393

14,282


56

-

1,004

-

Revenue for the period 2(g)(ii)

717

727

12,397

14,282


145

- 97

678

- 138


862

630

13,075

14,144

Less expenses including accrued expenses

- 677

- 485

- 12,945

- 13,466


185

145

130

678







(i) National Health & Medical Research Council Grants continued

80

(iii) Infrastructure Support

Enabling Grants Infrastructure Grants Total

Parent Entity (University) Only Note 2013 2012 2013 2012 2013 2012

$'000 $'000 $'000 $'000 $'000 $'000


386

658

518

548

904

1,206


36

-

-

-

36

-

Revenue for the period 2(g)(iii) 422

658

518

548

940

1,206


116

- 71

431

819

547

748


538

587

949

1,367

1,487

1,954 Less expenses including accrued expenses

- 403

- 471

- 431

- 936

- 834

- 1,407


135

116

518

431

653

547



Management Certificate




Independent Audit Report



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