UNSW Australia2 UNSW nnual Reort 2015 Contents UNSW Annual Report 2015 – Volume 2 03 Council Report 09 Statement by Members of Council 10 Independent Auditor’s Report 12 2015 Financial

Never Stand Still

Financial Report 2015UNSW Australia

UNSW • Annual Report 2015 1

UNSW’s Financial Results

2015Annual Report

2 UNSW • Annual Report 2015

Contents

UNSW Annual Report 2015 – Volume 2

03 Council Report

09 Statement by Members of Council

10 Independent Auditor’s Report

12 2015 Financial Report

13 Income statement

14 Statement of comprehensive income

15 Statementoffinancialposition

16 Statement of changes in equity

17 Statementofcashflows

18 Notestothefinancialstatements

105 Supplementary Information

109 2015 Statutory Report

110 Access to Information and Privacy

111 2015 GIPAA Access Applications

113 Disclosure Requirements

114 Statistical Information on EEO Target Groups


Council Report31 December 2015

The members of The University of New South Wales Council present their report on the consolidated entity consisting of UNSW Australia (The University of New South Wales), referred to as “UNSW” and the entities it controlled at the end of or during the year ended 31 December 2015.

UNSW is governed by a Council led by the Chancellor under the University of New South Wales Act 1989 (“The Act”).TheActwasamendedduring2012toadoptnewgovernanceprovisionsunder The Universities Governing Bodies Act 2011.

MembersThefollowingpersonsweretheCouncilmembersofUNSWat31December2015:

Ex-Officio Council Members

• Mr David M. Gonski AC• Professor Ian Jacobs• Professor Prem Ramburuth

Ministerial Appointments

• Mr Brian Long• Ms Jillian S. Segal AM

Elected Council Members

• Mr Billy Bruffey• Associate Professor Dorottya Fabian• Ms Emma Lovell• Mr Aaron Magner• Scientia Professor John Piggott

Members Appointed by Council

• Dr Jennifer Alexander• Ms Maxine Brenner• Mr Nicholas Carney• MrMatthewGrounds• MrWarwickNegus

Former Member

ProfessorFrederickG.HilmerAOwasaCouncilmemberfromthebeginningoftheyearandcompletedhistermofofficeon31January2015.


Meetings of Council and Committees

ThenumberofmeetingsofthemembersofTheUniversityofNewSouthWalesCouncilandeachcommitteeheldduringtheyearended31December2015,andthenumbersofmeetingsattendedbyeachmemberwere:

MEMBER COUNCIL MEETINGS A BEx-Officio Council MembersMr David M. Gonski AC 7 7Professor Ian Jacobs 7 7Professor Prem Ramburuth 7 7Ministerial AppointmentsMr Brian Long 4 7Ms Jillian S. Segal AM 6 7Elected Council MembersMr Billy Bruffey 6 7Associate Professor Dorottya Fabian 6 7Ms Emma Lovell 5 7Mr Aaron Magner 7 7Scientia Professor John Piggott 6 7Members Appointed by CouncilDr Jennifer Alexander 7 7Ms Maxine Brenner 5 7Mr Nicholas Carney 6 7MrMatthewGrounds 5 7MrWarwickNegus 6 7Former MemberProfessor Frederick G. Hilmer AO1

A = Number of meetings attended as a member. B=Numberofmeetingsheldduringthetimethememberheldofficeduringtheyear. 1 Term ended 31 January 2015.

Council Report 31 December 2015



MEETINGS OF COMMITTEESAUDIT

FINANCE FINANCE NOMINATIONS & REMUNERATION RISK HONORARY

DEGREES

A B A B A B A B A B

Ex-Officio Council Members

Mr David M. Gonski AC1 4 4 3 3 2 2

Professor Ian Jacobs#2 4 4 2 3 3 4 2 2

Professor Prem Ramburuth 4 4 2 3 2 2

Ministerial Appointments

Mr Brian Long 5 5

Ms Jillian S. Segal AM3 4 5 4 4 1 3 4 4 0 2

Elected Council Members

Mr Billy Bruffey 2 4

Associate Professor Dorottya Fabian 1 2

Ms Emma Lovell 1 2

Mr Aaron Magner 4 5

Scientia Professor John Piggott 1 5 3 4

Members Appointed by Council

Dr Jennifer Alexander 3 4

Ms Maxine Brenner 2 3

Mr Nicholas Carney 4 4

MrMatthewGrounds 3 4

MrWarwickNegus 3 4 3 3

Former Member

Professor Frederick G. Hilmer AO## 1 1

External Committee Members

Mr Daniel Gauchat* 4 4

Mr Bruce Moore* 4 5

Mr George Sutton* 4 4

Mr Michael Wright* 3 5

Academic Board Nominees

Professor Louise Chappell** 2 2

Emeritus Professor Richard Henry AM* 2 2

A = Number of meetings attended as a member.B=Numberofmeetingsheldduringthetimethememberheldofficeduring the year.* Not a member of Council** Commenced as a member of the Honorary Degrees Committee on 23 February 2015.# Term commenced 2 February 2015.## Term ended 31 January 2015.

1AsChancellor,isexofficioamemberofallCouncilcommitteesandhas the right but not the obligation to attend all meetings.2AsVice-Chancellor,isexofficioamemberofallCouncilcommitteesexcept the Audit Committee and has the right but not the obligation to attend all meetings.3AsDeputyChancellor,isexofficioamemberofallCouncilcommittees and has the right but not the obligation to attend all meetings.



Principal Activities

Duringtheyear,theprincipalcontinuingactivitiesoftheconsolidatedentityconsistedof:

• The provision of education and research facilities of university standard;• Theencouragementofthedissemination,advancement,developmentandapplicationofknowledgeinformed

by free inquiry;• Theprovisionofcoursesofstudyorinstructionacrossarangeoffields,andthecarryingoutofresearch,to

meet the needs of the community;• The participation in public discourse;• The conferring of degrees, including those of Bachelor, Master and Doctorate;• Theprovisionofteachingandlearningthatengagewithadvancedknowledgeandinquiry;• Thedevelopmentofgovernance,proceduralrules,admissionpolicies,financialarrangementsandquality

assurance processes that are underpinned by the values and goals of UNSW’s core activities, and that are sufficienttoensuretheintegrityofallUNSWprograms.

Review of Operations

The operating result using the agreed Group of Eight methodology is a loss of $1.8m.

The operating result is driven by the university’s core activities of teaching and research. Consequently, funding fromnon-coreoperatingactivities,thoserestrictedforspecificpurposes,aswellastheextraordinaryitemsreferredtobelowareexcludedasthesefundsarenotavailabletosupporttheuniversity’sday-to-dayoperations.

CONSOLIDATED2015 2014

$’000 $’000Total revenue and income 1,761,317 1,747,147Employee costs (964,009) (942,056)Other expenses (719,804) (675,041)Accounting result 77,504 130,050

Restrictedforspecificpurposes:Philanthropic funds (17,668) (16,670)Capital grants (6,720) (20,776)

Specificpurposegrants (24,382) (11,576)

Non-coreoperating:Investment funds (30,509) (52,017)Extraordinary items¹ - (18,309)

Operating surplus/(loss)2 (1,775) 10,702

1RecognitionoftheCommonwealthandNSWGovernments’agreementtofundtheStateAuthoritiesNon-contributory Superannuation Scheme (SANCS) liabilities.2 The operating loss in 2015 includes a one-off accounting adjustment of $13m relating to systems valuation.Withoutthisadjustment,theOperatingresultwouldbean$11msurplus.



The consolidated group’s operating result for 2015 has decreased by $12m compared to 2014.

Totalassetsoftheconsolidatedgroupin2015increasedby$135mto$4.4bwhilenetassetsincreasedby$113mto$2.4bin2015.Thisismainlyattributedtoanincreaseinfixedassetsandintangibles.

The consolidated group’s cash balances including cash and cash equivalents and current portion of held-to-maturity investments increased by $59m from $182m in 2014 to $241m in 2015. The cash balances held bytheconsolidatedgroupformspartofUNSW’sworkingcapitalandisusedtosettlecurrentliabilities,capitalcommitmentsformajorcapitalworks,researchgrantsheldasincomeinadvance,andvariousothercommitmentsduewithinoneyear.

Significant Changes in the State of Affairs

TherewerenosignificantchangesintheStateofAffairsofUNSWoranyofitssubsidiariesduringtheyearandup to the date of this report.

Matters Subsequent to the End of the Financial Year

Therewerenosignificantmatterssubsequenttotheendofthefinancialyearthatrequiredisclosure.

Likely Developments and Expected Results of Operations

TheUniversityhasreleasedtheUNSW2025StrategicPlan,whichwillinfluencefutureprioritiesanddirections.

Environmental regulations

ThesignificantenvironmentalregulationstowhichUNSWissubjectareasfollows:

- Environment Protection and Biodiversity Conservation Act 1999 (Cth)- Environmental Planning and Assessment Act 1979 (NSW)- Environmentally Hazardous Chemicals Act 1985 (NSW)- Heritage Act 1977 (NSW)- National Greenhouse and Energy Reporting Act 2007 (Cth)- Native Vegetation Act 2003 (NSW)- Noxious Weeds Act 1993 (NSW)- Ozone Protection Act 1989 (NSW)- Protection of the Environment Operations (POEO) Act 1997 (NSW)- Threatened Species Conservation Act 1995 (NSW)- Waste Avoidance and Resource Recovery Act 2001 (NSW)- Water Management Act 2000 (NSW)- Water Management Amendment Act 2010 (NSW).

UNSWhasnotbeenissuedwithanyenvironmentallicensesalthoughsomeoftheactivities,inparticularresearchactivities,involvinghazardousmaterialsanddangerousgoods,aswellasconstructionactivitiesandgrounds maintenance, involve risks that have the potential to cause material environmental harm. Appropriate andproportionateemphasisisgiventoidentifying,controllingandminimisingtheseriskswithinUNSW’senvironmentalmanagementsystemandtheUniversity’sriskmanagementframework.



Insurance of officers

UNSWobtainscommercialinsurancetoindemnifypersonswhoserveonUNSWBoardsandCommitteesandonBoardsandCommitteesofallentitiesintheGroup.CoveragealsoextendstoUNSWappointeeswhoserveontheBoardsofotherentities,asdesignatedrepresentativesofUNSW,andwhoarenototherwiseindemnified.ThisinsuranceprovidesfundstodefendeachofficerandBoardappointeeofUNSWagainstclaimsfromthirdpartieswhichresultfromactualorallegedwrongacts,aspermittedbylaw.

The premium for this commercial insurance is paid for by UNSW, and UNSW self-insures all claims expenses whichfallbelowthepolicydeductibleorforliabilitieswhichareexcludedornotcoveredbythecommercialinsurance contract.

Proceedings on behalf of UNSW

There are no material proceedings against or on behalf of UNSW or its controlled entities.

ThisreportismadeinaccordancewitharesolutionofthemembersofUNSW.

Mr David M. Gonski ACChancellor, 30 March 2016


Statement by Members of Council

Pursuant to Section 41C (1B), (1C) and (1D) of the Public Finance and Audit Act 1983 (as amended) and clause 7 of the Public Finance and Audit Regulation 2015,westatethat:

1. Thefinancialreportexhibitsatrueandfairviewofthefinancialpositionasat31December2015andthefinancialperformancefortheyearthenendedfortheUniversityandControlledEntities;and

2. Thefinancialreportfortheyearended31December2015hasbeenpreparedinaccordancewith:

(a) the provisions of the Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2015 andtheCommonwealthDepartmentofEducationandTrainingFinancial Statement Guidelines for Australian Higher Education Providers for the 2015 Reporting Period; and

(b) Australian Accounting Standards, Australian Accounting Standards Board Interpretations and other mandatory professional reporting requirements.

3. Asatthedateofthestatement,wearenotawareofanycircumstancesthatwouldrenderanyparticularsincludedinthefinancialreporttobemisleadingorinaccurate.

As required by the Financial Statement Guidelines for Australian Higher Education Providers for the 2015 Reporting PeriodissuedbytheCommonwealthDepartmentofEducationandTraining,wealsocertifytothebestofourknowledgeandbeliefthatalltheAustralianGovernmentFinancialAssistanceexpendedbytheUniversityduringtheyearended31December2015wasexpendedforthepurposesforwhichitwasintendedandthatTheUniversityofNewSouthWaleshascompliedwithapplicablelegislation,contracts,agreementsandprogramguidelines in making that expenditure.

SignedinaccordancewitharesolutionofCouncil.

\

30 March 2016

Professor Ian Jacobs President and Vice-Chancellor

Mr David M. Gonski AC Chancellor


Independent Auditor’s Report


Independent Auditor’s Report 31 December 2015


2015Financial Report


The University of New South Wales

Income statement

For the year ended 31 December 2015

Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Income from continuingoperations

Australian Government financialassistance

Australian Government grants 2(g) 698,850 718,083 698,850 718,083

HELP - Australian Governmentpayments 2(b) 203,548 197,865 203,548 197,865

State and local government financialassistance 3 26,303 27,867 26,303 27,471

HECS-HELP - Student payments 31,197 31,122 31,197 31,122

Fees and charges 4 629,492 565,576 522,857 473,357

Investment revenue 5 37,822 40,267 36,864 41,261

Royalties, trademarks and licences 6,752 5,520 4,701 6,164

Consultancy and contracts 6 67,135 62,549 60,246 55,852

Other revenue 7 36,890 36,222 69,906 56,493

Gains on disposal of assets 66 117 49 105

Share of profit or loss on investmentsaccounted for using the equitymethod 17 2,903 6,725 - -

Other investment income 5 6,569 23,373 5,521 21,210

Other income 7 13,790 31,861 11,769 29,944

Total income from continuingoperations 1,761,317 1,747,147 1,671,811 1,658,927

Expenses from continuingoperations

Employee related expenses 8 959,439 942,056 906,447 894,119

Depreciation and amortisation 9 143,763 135,230 141,546 133,338

Repairs and maintenance 10 34,361 34,006 32,968 32,730

Borrowing costs 11 2,485 2,832 2,483 2,832

Impairment of assets 12 14,967 2,741 13,287 1,442

Loss on disposal of assets 458 648 370 478

Deferred superannuation expense 8 4,570 410 4,570 410

Other expenses 13 523,778 499,119 495,337 468,080

Total expenses from continuingoperations 1,683,821 1,617,042 1,597,008 1,533,429

Net result before income tax 77,496 130,105 74,803 125,498

Income tax (expense)/benefit 14 8 (55) - -

Net result after income tax for theperiod 77,504 130,050 74,803 125,498

Net result from continuingoperations after income tax for theperiod attributable to members ofThe University of New SouthWales 77,504 130,050 74,803 125,498

The above income statement should be read in conjunction with the accompanying notes.

2

Income statementFor the year ended 31 December 2015


Statement of comprehensive incomeFor the year ended 31 December 2015


Statement of comprehensive income


Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Net result after income tax for theperiod 77,504 130,050 74,803 125,498

Items that may be reclassified to profit orloss

Net losses on revaluation of available-for-sale financial assets 28(a) (18,557) (10,145) (17,773) (9,843)

Exchange differences on translation offoreign operations 28(a) 108 40 - -

Total (18,449) (10,105) (17,773) (9,843)

Items that will not be reclassified to profitor loss

Net gains on revaluation of property,plant and equipment 28(a) 61,487 64,647 61,487 64,647

Net actuarial losses on defined benefitsuperannuation plans 28(b) (7,165) (18,419) (7,159) (17,604)

Total 54,322 46,228 54,328 47,043

Total other comprehensive income forthe year, net of tax 35,873 36,123 36,555 37,200

Total comprehensive income for theyear 113,377 166,173 111,358 162,698

Total comprehensive incomeattributable to members of TheUniversity of New South Wales 113,377 166,173 111,358 162,698

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

3


Statement of financial positionAs at 31 December 2015


Statement of financial position

31 December 2015

Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Assets

Current assets

Cash and cash equivalents 15 217,739 101,499 128,933 38,710

Receivables 16 170,068 147,774 195,265 161,300

Inventories 1,146 1,155 - -

Other financial assets 18 24,057 81,586 24,057 81,586

Total current assets 413,010 332,014 348,255 281,596

Non-current assets

Receivables 16 1,305,437 1,332,650 1,305,383 1,332,592

Investments accounted forusing the equity method 17 16,139 13,988 - -

Other financial assets 18 449,526 442,208 445,635 436,921

Property, plant andequipment 20 2,157,448 2,087,252 2,150,321 2,083,752

Investment properties 19 8,851 8,247 8,851 8,247

Intangible assets 22 67,190 65,993 64,243 62,930

Total non-current assets 4,004,591 3,950,338 3,974,433 3,924,442

Total assets 4,417,601 4,282,352 4,322,688 4,206,038

Liabilities

Current liabilities

Trade and other payables 23 105,801 107,119 93,827 96,706

Borrowings 24 761 625 761 625

Provisions 25 303,388 270,987 296,409 264,550

Other financial liabilities 26 451 447 436 447

Other liabilities 27 100,885 89,689 51,541 54,893

Total current liabilities 511,286 468,867 442,974 417,221

Non-current liabilities

Borrowings 24 38,341 39,102 38,341 39,102

Provisions 25 1,452,799 1,469,323 1,450,255 1,467,144

Other financial liabilities 26 10 19 10 19

Other liabilities 27 19,298 22,551 19,298 22,100

Total non-currentliabilities 1,510,448 1,530,995 1,507,904 1,528,365

Total liabilities 2,021,734 1,999,862 1,950,878 1,945,586

Net assets 2,395,867 2,282,490 2,371,810 2,260,452

Equity

Reserves 28 751,334 708,551 743,400 699,941

Retained earnings 28 1,644,533 1,573,939 1,628,410 1,560,511

Total equity 2,395,867 2,282,490 2,371,810 2,260,452

The above statement of financial position should be read in conjunction with the accompanying notes.

4


Statement of changes in equityFor the year ended 31 December 2015


Statement of changes in equity


Parent

RetainedEarnings

$'000

Reserves

$'000

Total

$'000

Balance at 1 January 2014 1,452,657 645,097 2,097,754

Net result for the period 125,498 - 125,498

Net gains on revaluation of property, plant and equipment - 64,647 64,647

Net losses on revaluation of available-for-sale financial assets - (9,843) (9,843)

Net actuarial losses on defined benefit superannuation plans (17,604) - (17,604)

Transfers from reserves (40) 40 -

Total comprehensive income 107,854 54,844 162,698

Balance at 31 December 2014 1,560,511 699,941 2,260,452






Transfers from reserves 255 (255) -



Consolidated

RetainedEarnings

$'000

Reserves

$'000

Total

$'000





Exchange differences on translation of foreign operations - 40 40


Transfers from reserves (40) 40 -







Exchange differences on translation of foreign operations - 108 108


Transfers from reserves 255 (255) -



The above statement of changes in equity should be read in conjunction with accompanying notes.

5


Statement of cash flowsFor the year ended 31 December 2015


Statement of cash flows


Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Cash flows from operating activities:

Australian Government grants 2(h) 918,310 924,598 918,310 924,598

OS-HELP (net) 2(h) 408 2,897 408 2,897

Superannuation Supplementation 61,633 - 61,633 -

State Government grants 25,093 29,077 25,304 28,641

HECS-HELP - Student payments 31,046 31,360 31,046 31,360

Receipts from student fees and othercustomers 754,359 721,277 590,508 605,702

Payments to suppliers and employees (1,605,279) (1,530,851) (1,490,064) (1,443,018)

Contributions to related parties - - (7,352) (6,071)

Investment income received 25,433 32,138 26,047 34,441

Contribution from related parties - - 26,431 15,137

Interest received 10,120 6,476 8,549 5,165

Interest and other costs of finance paid (2,485) (2,933) (2,483) (2,933)

GST recovered 29,131 35,300 28,959 35,534

Income taxes paid (4) (55) - -

Net cash provided by operating activities 34 247,765 249,284 217,296 231,453

Cash flows from investing activities:

Proceeds from sale of property, plant andequipment 222 189 194 176

Proceeds from sale of available-for-saleand other financial assets 465,714 354,790 462,448 346,644

Payments for property, plant andequipment (146,987) (250,087) (141,965) (249,157)

Payments for available-for-sale and otherfinancial assets (427,823) (301,571) (427,205) (299,581)

Payments for intangible assets (21,425) (22,571) (19,319) (20,177)

Payments for investment properties (601) (8,247) (601) (8,247)

Net cash used in investing activities (130,900) (227,497) (126,448) (230,342)

Cash flows from financing activities:

Repayment of borrowings (625) (17,368) (625) (17,368)

Net cash used in financing activities (625) (17,368) (625) (17,368)

Net increase/(decrease) in cash and cashequivalents 116,240 4,419 90,223 (16,257)

Cash and cash equivalents at thebeginning of the financial year 101,499 97,080 38,710 54,967

Cash and cash equivalents at the endof the financial year 15 217,739 101,499 128,933 38,710

The above statement of cash flows should be read in conjunction with the accompanying notes.

6


Notes to the financial statements31 December 2015


Notes to the financial statements


Note Contents Page No

1 Summary of significant accounting policies 8

2 Australian Government financial assistance including Australian Government loan programs(HELP)

21

3 State and Local Government financial assistance 24

4 Fees and charges 25

5 Investment revenue and other investment income 25

6 Consultancy and contracts 26

7 Other revenue and income 26

8 Employee related expenses 27

9 Depreciation and amortisation 28

10 Repairs and maintenance 28

11 Borrowing costs 28

12 Impairment of assets 29

13 Other expenses 29

14 Income tax 30

15 Cash and cash equivalents 30

16 Receivables 31

17 Investments accounted for using the equity method 34

18 Other financial assets 36

19 Investment properties 37

20 Property, plant and equipment 38

21 Public Private Partnerships (PPP) 43

22 Intangible assets 44

23 Trade and other payables 45

24 Borrowings 46

25 Provisions 48

26 Other financial liabilities 49

27 Other liabilities 50

28 Reserves and retained earnings 51

29 Key management personnel disclosures 53

30 Remuneration of auditors 55

31 Contingencies 56

32 Commitments 57

33 Subsidiaries 58

34 Reconciliation of net result after income tax to net cash provided by operating activities 59

35 Financial risk management 60

36 Fair value measurements 66

37 Defined benefit plans 73

38 Acquittal of Australian Government financial assistance 84

7

1932

353636373738393939404041414245474849545556575960616264666768697071778495


Notes to the financial statements31 December 2015The University of New South Wales



1 Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. Thesepolicies have been consistently applied to all the years presented, unless otherwise stated. The financial statementsinclude separate financial statements for UNSW Australia (The University of New South Wales), referred to as"UNSW", an individual entity (the "parent entity") and the consolidated entity (the "Group") consisting of the Universityand its controlled entities.

(a) Basis of preparation

These general purpose financial statements have been prepared on an accrual basis in accordance with therequirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Act Regulations 2015, theAustralian Accounting Standards, other authoritative pronouncements of the Australian Accounting StandardsBoard, Australian Accounting Interpretations and the Higher Education Support Act 2003 (Financial StatementGuidelines) and other State/Australian Government legislative requirements.

UNSW is a not-for-profit entity and the financial statements and notes of UNSW have been prepared on thatbasis. Some of the Australian Accounting Standards requirements for not-for-profit entities are inconsistent withthe International Financial Reporting Standards (IFRSs) requirements.

Date of authorisation for issueThe financial statements were authorised for issue on 30 March 2016 by the Council.

Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by therevaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments)at fair value through the income statement and certain classes of property, plant and equipment.

Critical accounting estimatesThe preparation of financial statements in conformity with Australian Accounting Standards requires the use ofcertain critical accounting estimates. It also requires management to exercise its judgement in the process ofapplying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, orareas where assumptions and estimates are significant to the financial statements are disclosed below:

(i) Superannuation liability - Deferred Government ReceivablesUNSW contributes to three State superannuation schemes, namely the State Authorities SuperannuationScheme (SASS), the State Superannuation Scheme (SSS) and the State Authorities Non-contributorySuperannuation Scheme (SANCS).

On 5 December 2014, a Memorandum of Understanding (MOU) was signed between the Commonwealth andNSW Governments providing confirmation of the governments' intention to fund the superannuation liabilitiesassociated with these schemes (including contributions tax and other taxes) subject to the terms set out in theMOU.

An amendment to the Other Grants Guidelines (Education) 2012, made under the Higher Education SupportAct 2003 (HESA), as well as a grant made under those Guidelines (Grant), enables the Commonwealth toprovide funds to UNSW.

Accordingly, the liabilities have been recognised in the statement of financial position under provisions withcorresponding assets recognised under receivables. The recognition of both the asset and liability does notaffect the year end net asset position and net result of UNSW for those schemes, except as otherwisedisclosed.

The MOU stipulates that UNSW receives funding from governments when assets in the State Super reserveaccounts are run down to a one year asset buffer level. Accordingly, a proportion of both the liability andreceivable is recognised as current, representing the amounts payable, and therefore receivable, in the nextyear.

The calculation of the liability requires the use of various assumptions. Refer to note 37 for details of variousassumptions used in calculating the superannuation liabilities and the corresponding deferred Governmentreceivables.

(ii) Employee related provisions and obligationsThe Group makes provisions in respect of superannuation obligations and additional on-costs on paymentsmade to employees.

The Group assesses the appropriateness of these provisions at each reporting date by evaluating conditions

8





1 Summary of significant accounting policies (continued)

(a) Basis of preparation (continued)specific to the Group. The calculation of these provisions requires the use of various assumptions, such asexpected rate of return on the funds and superannuation entitlements, and is based on a range of possibleoutcomes.

(iii) Long-term leases of UNSW propertiesThe Group considers the substance of the leasing arrangements and the likelihood of continuance of the leasesthrough exercise of renewal options in order to determine the appropriate accounting treatment of the leasedproperties. Where at the inception of a lease, management considered that it would be reasonably certain thatan option to extend a lease would be exercised, the assumed lease term is inclusive of the additional optionperiod. This assessment impacts management's determination of the accounting treatment of the leasedproperties.

(b) Basis of consolidation

The consolidated financial statements incorporate the assets and liabilities of all entities controlled by theparent entity as at 31 December 2015 and the results of all controlled entities for the year then ended.

Controlled entities are all those entities (including structured entities) over which the Group has control. TheGroup has control over an investee when it is exposed, or has rights, to variable returns from its involvementwith the investee and has the ability to affect those returns through its power over the investee. Power over theinvestee exists when the Group has existing rights that give it current ability to direct the relevant activities ofthe investee. The existence and effect of potential voting rights that are currently exercisable or convertible areconsidered when assessing whether the Group controls another entity. Returns are not necessarily monetaryand can be only positive, only negative, or both positive and negative.

Controlled entities are fully consolidated from the date on which control is transferred to the Group. They arede-consolidated from the date that control ceases.

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

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

(c) Associates

Associates are all entities over which the Group has significant influence but not control, generallyaccompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates areaccounted for in the parent entity's financial statements using the cost method and in the consolidated financialstatements using the equity method of accounting, after initially being recognised at cost. The Group'sinvestment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition.

The Group's share of its associates' post-acquisition profits or losses is recognised in the income statement,and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative postacquisition movements are adjusted against the carrying amount of the investment. Dividends receivable fromassociates are recognised in the parent entity's income statement, while in the consolidated financialstatements they reduce the carrying amount of the investment.

9






(c) Associates (continued)

When the Group's share of losses in an associate equals or exceeds its interest in the associate, including anyother unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations ormade payments on behalf of the associate.

(d) Joint arrangements

The interest in a joint venture entity is accounted for in the consolidated financial statements using the equitymethod and is carried at cost by the parent entity. Under the equity method, the share of the profits or losses ofthe entity is recognised in the income statement, and the share of movements in reserves is recognised inreserves in the statement of comprehensive income and the statement of changes in equity.

(e) Public Private Partnerships (PPP)

The Group enters into PPP with the private sector in relation to the construction and operation of new studentaccommodation. Each individual PPP is accounted for in accordance with its substance and economic reality,and not merely its legal form. The Group recognises the new buildings that are the subject of the PPP as anemerging asset, incrementally over the lease period. Land leased to the private sector and any other serviceelements that are part of the PPP, excluding the buildings, are accounted for separately in accordance with theapplicable Australian Accounting Standards.

The private entity will retain rental revenue during the operating phase and will transfer the studentaccommodation to UNSW at the end of the concession period.

(f) Foreign currency translation

(i) Functional and presentation currencyItems included in the financial statements of each of the controlled entities are measured using the currency ofthe primary economic environment in which the entity operates (‘the functional currency’). The consolidatedfinancial statements are presented in Australian dollars, which is the parent entity’s functional and presentationcurrency.

(ii) Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates prevailing atthe dates of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the translation at year-end exchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognised in the income statement.

If gains or losses on non-monetary items are recognised in other comprehensive income, translation gains orlosses are also recognised in other comprehensive income. Similarly, if gains or losses on non-monetary itemsare recognised in the income statement, translation gains or losses are also recognised in profit or loss.

(iii) Controlled entitiesThe results and financial position of all the controlled entities (none of which has the currency of ahyperinflationary economy) that have a functional currency different from the presentation currency aretranslated into the presentation currency as follows:

assets and liabilities for each statement of financial position presented are translated at the closing rate

at the date of that statement of financial position;

income and expenses for each income statement are translated at average exchange rates (unless this

is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction

dates, in which case income and expenses are translated at the dates of the transactions); and

all resulting exchange differences are recognised as a separate component in other comprehensive

income.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities,and of borrowings, are taken to other comprehensive income.

Goodwill and fair value adjustments arising on the acquisition of foreign entities are treated as assets andliabilities of the foreign entities and translated at the closing rate.

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(g) Revenue recognition

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that futureeconomic benefits will flow to the Group and specific criteria have been met for each of the Group’s activities asdescribed below.

Amounts disclosed as revenue are net of returns, duties and taxes paid, and amounts collected on behalf ofthird parties.

(i) Government grantsGrants from the government are recognised at their fair value where the Group obtains control of the right toreceive the grant, it is probable that economic benefits will flow to the Group and it can be reliably measured.

(ii) Student fees and chargesStudent fees are recognised as revenue in the year in which the service is provided. Student fees received thatrelate to courses to be held in future periods are treated as income in advance.

(iii) Sale of goodsSales revenue comprises revenue earned (net of returns, discounts and allowances) from the supply ofproducts to entities outside the Group. Sales revenue is recognised when significant risks and rewards ofownership are transferred to the customer.

(iv) Fees and charges for servicesRevenue from services rendered is recognised in the period in which the service is provided, having regard tothe stage of completion of the service.

(v) Investment incomeInterest income is recognised as it accrues. Dividend income is recognised when the dividend is declared bythe subsidiary or investee.

(vi) Other revenueThis represents miscellaneous income and other grant income not derived from core business and isrecognised when it is earned.

(h) Income tax

The parent entity is exempt from income tax under Commonwealth income taxation legislation. Within theGroup, however, there are entities that are not exempt from paying income tax.

For those entities not exempt from tax, the income tax expense or benefit for the period is the tax payable onthe current period's taxable income, based on the income tax rate for each jurisdiction, adjusted by changes indeferred tax assets and liabilities attributable to temporary differences between the tax bases of assets andliabilities and their carrying amounts in the financial statements, and unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to applywhen the assets are recovered or liabilities are settled, based on those tax rates which are enacted orsubstantially enacted for the jurisdiction where the entity is situated. An exception is made for certain temporarydifferences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability isrecognised in relation to these temporary differences if they arose in a transaction, other than a businesscombination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it isprobable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amountand tax bases of investments in controlled entities where the parent entity is able to control the timing of thereversal of the temporary differences and it is probable that the differences will not reverse in the foreseeablefuture.

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(i) Operating leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor areclassified as operating leases. Payments made under operating leases (net of any incentives received from thelessor) are charged to the income statement on a straight-line basis over the period of the lease. Lease incomefrom operating leases, where the Group is a lessor, is recognised in the income statement on a straight-linebasis over the lease term.

(j) Non-current assets (or disposal group) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of their carryingamount and fair value less costs to sell, if their carrying amount will be recovered principally through a saletransaction rather than through continuing use.

A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group),but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previouslyrecognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date ofderecognition. An impairment loss is recognised for any initial or subsequent write down of the asset (ordisposal group) to fair value less costs to sell.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised whilethey are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal groupclassified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale arepresented separately from the other assets in the statement of financial position. The liabilities of a disposalgroup classified as held for sale are presented separately from other liabilities in the statement of financialposition.

A discontinued operation is a component of the Group that has been disposed of or is classified as held for saleand that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquiredexclusively with a view to resale. The results of discontinued operations are presented separately on the face ofthe income statement.

(k) Impairment of assets

Intangible assets that have an indefinite useful life are not subject to depreciation or amortisation and are testedannually for impairment. All other assets are reviewed for impairment whenever events or changes incircumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised inthe income statement for the amount by which the asset's carrying amount exceeds its recoverable amount. Animpairment loss on a revalued asset is recognised against the revaluation reserve of that class of asset to theextent that the impairment reverses a previous revaluation surplus. The recoverable amount is the higher of anasset's fair value less costs of disposal and value in use.

In accordance with AASB 136 Impairment of assets in respect of not-for-profit entities, value in use is thedepreciated replacement cost of an asset when the future economic benefits of the asset are not primarilydependent on the asset's ability to generate net cash inflows and where the entity would, if deprived of theasset, replace its remaining future economic benefits. In respect of for profit components of the Group, for thepurposes of assessing impairment, assets are grouped at the lowest levels for which there are separatelyidentifiable cash flows (cash generating units).

(l) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less from date of purchase that arereadily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement offinancial position.

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(m) Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost less anyprovision for impairment. Receivables are due for settlement generally no more than 30 days from the date ofrecognition. Cash flows relating to short-term receivables are not discounted if the effect of discounting isimmaterial.

Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible arewritten off. Subsequent recoveries of amounts previously written off are credited to the income statement.

A provision for impaired receivables is established when there is objective evidence that the Group will not beable to collect all amounts due according to the original terms of receivables. Significant financial difficulties ofthe debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default ordelinquency in payments are considered indicators that the receivable is impaired. The amount of the provisionis the difference between the asset’s carrying amount and the present value of estimated future cash flows.The amount of the provision is recognised in the income statement within impairment of assets.

(n) Inventories

Inventories are measured on weighted average cost basis at the lower of cost and net realisable value. Netrealisable value is the estimated selling price in the ordinary course of business less the estimated costsnecessary to make the sale.

(o) Investments and other financial assets

The Group classifies its investments in the following categories: financial assets at fair value through profit orloss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. Theclassification depends on the purpose for which the investments were acquired. Management determines theclassification of its investments at initial recognition and, in the case of assets classified as held-to-maturity,re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit or lossFinancial assets at fair value through profit or loss include financial assets held for trading. A financial asset isclassified in this category if acquired principally for the purpose of selling in the short term or if so designated bymanagement. The policy of the Group is to designate a financial asset if the possibility it will be sold in theshort-term exists and if the asset is subject to frequent changes in fair value. Derivatives are held for tradingunless they are designated as hedges. Assets in this category are classified as current assets.

(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are notquoted in an active market. They arise when the Group provides money, goods or services directly to a debtorwith no intention of selling the receivable. They are included in current assets, except for those with maturitiesgreater than 12 months after the balance sheet date which are classified as non-current assets. Loans andreceivables are included in receivables in the statement of financial position.

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturities that the Group's management has the positive intention and ability to hold to maturity. Held-to-maturity investments are included in non-current assets, except for those with maturities less than 12 monthsfrom the reporting date, which are classified as current assets. Held-to-maturity investments are carried atamortised cost using the effective interest method.

(iv) Available-for-sale financial assetsAvailable-for-sale financial assets, comprising principally marketable equity securities (held through managedfunds), are non-derivatives that are either designated in this category or not classified in any of the othercategories. They are included in non-current assets unless the Group intends to dispose of the investmentwithin 12 months of the balance sheet date.

Regular purchases and sales of investments are recognised on the trade date, being the date on which theGroup commits to purchase or sell the asset. Investments are initially recognised at fair value plus transactioncosts for all financial assets not carried at fair value through profit or loss. Financial assets are derecognisedwhen the rights to receive cash flows from the financial assets have expired or have been transferred, and theGroup has transferred substantially all the risks and rewards of ownership.

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(o) Investments and other financial assets (continued)

(v) Subsequent measurementAvailable-for-sale financial assets and financial assets at fair value through profit or loss are subsequentlycarried at fair value. Realised and unrealised gains and losses arising from changes in the fair value of the'financial assets at fair value through profit or loss' category are included in the income statement in the periodin which they arise. Unrealised gains and losses arising from changes in the fair value of securities classified asavailable-for-sale are recognised in other comprehensive income. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in other comprehensive incomeare included in the income statement as gains and losses from investment securities.

(vi) Fair valueThe fair values of investments and other financial assets are based on quoted prices in an active market. If themarket for a financial asset is not active (and for unlisted securities), the Group establishes fair value by usingvaluation techniques, that maximise the use of relevant data. These include reference to the estimated price inan orderly transaction that would take place between market participants at the measurement date. Othervaluation techniques used are the cost approach and the income approach based on the characteristics of theasset and the assumptions made by market participants.

(vii) ImpairmentThe Group assesses at each balance sheet date whether there is objective evidence that a financial asset orgroup of financial assets is impaired. In the case of equity securities classified as available-for-sale, asignificant or prolonged decline in the fair value of a security below its cost is considered in determining whetherthe 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 onthat financial asset previously recognised in the income statement is removed from equity and recognised in theincome statement. Impairment losses recognised in the income statement on equity instruments are notreversed through the income statement.

(p) Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and aresubsequently remeasured to their fair value. Changes in the fair value of derivative instruments that do notqualify for hedge accounting are recognised immediately in the income statement.

(q) Fair value measurement

The fair value of assets and liabilities must be measured for recognition and disclosure purposes. Refer to note36 for further disclosure.

(r) Investment property

Investment properties exclude properties held to meet service delivery objectives of UNSW.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition arecapitalised when it is probable that future economic benefits in excess of the originally assessed performanceof the asset will flow to UNSW. Where an investment property is acquired at no cost or for nominalconsideration, its cost shall be deemed to be its fair value, as at the date of acquisition.

Subsequent to initial recognition at cost, investment property is carried at fair value, which is based on activemarket prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset.If this information is not available, the Group uses alternative valuation methods such as recent prices in lessactive markets or discounted cash flow projections. These valuations are reviewed annually by externalindependent valuers. Changes in fair values are recorded in the income statement as part of the other income.

Rental revenue from the leasing of investment properties is recognised in the income statement in the periodsin which it is receivable, as this represents the pattern of service rendered though the provision of theproperties.

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(s) Property, plant and equipment

Land and buildings (including campus land, campus buildings, off-campus properties and leaseholdimprovements), works of art and rare books are shown at their fair value, based on annual valuations byexternal independent valuers. Any accumulated depreciation at the date of revaluation is restatedproportionately with the change in the gross carrying amount of the asset so that the carrying amount of theasset after revaluation equals its revalued amount. All other property, plant and equipment are stated at costless any accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to theacquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, asappropriate, only when it is probable that future economic benefits associated with the item will flow to theGroup and the cost of the item can be measured reliably. All other repairs and maintenance are charged to theincome statement during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of land and buildings are recognised in othercomprehensive income and accumulated in equity under the heading of property, plant and equipmentrevaluation reserve. To the extent that the increase reverses a decrease previously recognised in the incomestatement, the increase is first recognised in the income statement. Decreases that reverse previous increasesin that class of asset are first charged against revaluation reserves in other comprehensive income, to theextent of the remaining reserve attributable to the asset class; all other decreases are charged to the incomestatement.

Land, works of art and rare books are not depreciated. Depreciation on the other classes of assets is calculatedusing the straight line method to allocate their cost or revalued amounts, net of their residual values, over theirestimated useful lives. The depreciation rates are as follows:

ControlledEntities Parent

Campus buildings and off-campus properties 2.50% to 6.67% 2.50% to 6.67%

Computer equipment 20% to 33.33% 33.33%

Other equipment 10% 10% to 20%

Motor vehicles 12.50% to 33.33% 12.50%

Library collections 10% 10%

Leasehold improvements 2.50% to 20% 2.50% to 20%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheetdate.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amountis greater than its estimated recoverable amount (note 1(k)).

Gains and losses on disposals are determined by comparing net disposal proceeds with the carrying amount.The net gains and losses from the sale of assets are included in the income statement when the asset isderecognised. When revalued assets are sold, it is the Group's policy to transfer the amounts included inproperty, plant and equipment revaluation reserves in respect of those assets to retained earnings.

(t) Intangible assets

(i) Research and development - PatentsExpenditure on research activities, undertaken with the prospect of obtaining new scientific or technicalknowledge and understanding, is recognised in the income statement as an expense when it is incurred.

Expenditure on development activities, being the application of research findings or other knowledge to a planor design for the production of new or substantially improved products or services before the start ofcommercial production or use, is capitalised if the product or service is technically and commercially feasible;adequate resources are available to complete development and if it is sufficiently certain that the futureeconomic benefits to the Group will cover not only the usual operational and administrative costs but also thedevelopment costs themselves. There are also several other criteria relating to the development projects andthe processes or products being developed, all of which have to be met to justify asset recognition.

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(t) Intangible assets (continued)

The expenditure capitalised comprises all directly attributable costs, including costs of materials, services,direct labour, and an appropriate proportion of overheads. Other development expenditure is recognised in theincome statement as an expense as incurred. Capitalised development expenditure is stated at cost lessaccumulated amortisation. Amortisation is calculated using the straight line method to allocate the cost over theperiod of the expected benefit, which will vary depending on useful life, usually 20 years.

(ii) Computer softwareComputer software is stated at cost less accumulated amortisation and impairment.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, asappropriate, only when it is probable that future economic benefits associated with the item will flow to theGroup and the cost of the item can be measured reliably. All other upgrades and maintenance are charged tothe income statement during the financial period in which they are incurred.

Computer software is amortised using the straight line method to allocate its cost, net of any residual value,over its estimated useful life usually between 5 to 10 years.

(iii) Digitalised library research collectionsDigitalised library research collections are perpetual licences to access online research material. Digitalisedlibrary research collections are stated at cost less accumulated amortisation and impairment. Amortisation iscalculated using the straight line method to allocate the cost over its estimated useful life of 10 years.

(u) Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of thefinancial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days ofrecognition.

(v) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequentlymeasured at amortised cost. Any difference between the proceeds (net of transaction costs) and theredemption amount is recognised in the income statement over the period of the borrowings using the effectiveinterest method. Fees paid on the establishment of loan facilities, which are not an incremental cost relating tothe actual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis overthe term of the facility.

Borrowings are removed from the statement of financial position when the obligation specified in the contract isdischarged, cancelled or expired. The difference between the carrying amount of a financial liability that hasbeen extinguished or transferred to another party and the consideration paid, including any non-cash assetstransferred or liabilities assumed, is recognised in other income or other expenses.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement ofthe liability for at least 12 months after the balance sheet date and does not expect to settle the liability for atleast 12 months after the balance sheet date.

(w) Borrowing costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of timethat is required to complete and prepare the asset for its intended use or sale. Other borrowing costs areexpensed.

The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weightedaverage interest rate applicable to the entity's outstanding borrowings during the year.

(x) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of pastevents; it is probable that an outflow of resources will be required to settle the obligation and the amount can bereliably estimated. Provisions are not recognised for future operating losses.

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(x) Provisions (continued)

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement isdetermined by considering the class of obligations as a whole. A provision is recognised even if the likelihoodof an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required tosettle the present obligation at the balance sheet date. The discount rate used to determine the present valuereflects current market assessments of the time value of money and the risks specific to the liability. Theincrease in the provision due to the passage of time is recognised as a borrowing cost.

(y) Employee benefits

(i) Short-term obligationsLiabilities for short-term employee benefits including wages and salaries and non-monetary benefits aremeasured at the amount expected to be paid when the liability is settled, if it is expected to be settled whollybefore twelve months after the end of the reporting period, and is recognised in other payables. Liabilities fornon-accumulating sick leave are recognised when the leave is taken and measured at the rates payable.

(ii) Other long-term obligationsThe liability for other long-term benefits is recognised in current provisions for employee benefits if they are notexpected to be settled wholly before twelve months after the end of the annual reporting period. Other long-termemployee benefits include such things as annual leave, accumulating sick leave and long service leaveliabilities.

It is measured at the present value of expected future payments to be made in respect of services provided byemployees up to the reporting date using the projected unit credit method. Consideration is given to theexpected future wage and salary levels, experience of employee departures and periods of service. Expectedfuture payments are discounted using market yields at the reporting date on national government bonds withterms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Regardless of the expected timing of settlements, provisions made in respect of employee benefits areclassified as a current liability, unless there is an unconditional right to defer the settlement of the liability for atleast 12 months after the reporting date, in which case it would be classified as a non-current liability.

(iii) Bonus plansThe Group recognises a liability and an expense for bonuses where contractually obliged or where there is apast practice that has created a constructive obligation and when a reliable estimate of the obligation can bemade.

(iv) Retirement benefit obligationsAll employees of the Group are entitled to benefits on retirement, disability or death, from the superannuationplans contributed to by the Group. The plans have both defined benefit sections and defined contributionsections. The defined benefit sections provide defined lump sum benefits based on years of service and finalaverage salary. The defined contribution section receives fixed contributions from the Group and its legal orconstructive obligation is limited to these contributions.

A liability or asset in respect of each defined benefit superannuation plan is recognised in the statement offinancial position, and is measured as the present value of the defined benefit obligation at the reporting dateless the fair value of the superannuation fund's assets at that date and any unrecognised past service cost. Thepresent value of the defined benefit obligation is based on expected future payments which arise frommembership of the plan to the reporting date, calculated annually by independent actuaries using the projectedunit credit method. Consideration is given to the expected future wage and salary levels, experience ofemployee departures and periods of service.

Expected future payments are discounted using market yields at the reporting date on national governmentbonds with terms to maturity and currency that match, as closely as possible, the estimated future cashoutflows.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptionsare recognised in the period in which they occur, outside of the income statement, in the statement ofcomprehensive income.

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(y) Employee benefits (continued)

Past service costs are recognised immediately in the income statement.

Contributions to the defined contribution plan are recognised as an expense as they become payable.

(v) Unfunded superannuationThe superannuation liabilities recorded in the statement of financial position have been determined byindependent actuaries relating to the defined benefit superannuation plans: State Superannuation Scheme(SSS), State Authorities Superannuation Scheme (SASS), State Authorities Non-Contributory SuperannuationScheme (SANCS) and the UNSW Professorial Superannuation Fund. Information relating to these schemes isset out in note 37 and note 1(a)(i). Since 5 December 2014 when the Memorandum of Understanding wassigned by the Commonwealth and NSW Governments, the only unfunded liabilities comprise of the UNSWProfessorial Superannuation Fund, and the SSS, SASS and SANCS liabilities relating solely to UNSWCanberra at ADFA.

(vi) Workers compensationThe parent entity is a licensed self-insurer for workers compensation in New South Wales (NSW) and theAustralian Capital Territory (ACT).

Workers compensation matters are managed through two funds, one to record the parent entity's workerscompensation activities in New South Wales (known as the NSW Fund) and one to record the parent entity'sworkers compensation activities in the Australian Capital Territory (known as the ACT Fund). The provision forthe outstanding claims liability for each fund is recognised based on an independent actuarial assessment atbalance sheet date.

As a self-insurer, the parent entity sets a notional annual premium, which is charged on all employee salaries.Costs of workers compensation claims, claims administration expenses and actuarially assessedincreases/decreases in the provision for outstanding claims liability are met from the notional premium. Theoutstanding claims liability includes an amount for injuries that have already occurred but have not yet beenreported. The annual purchase of reinsurance protects UNSW from the adverse effects of large claims. UNSWpays a number of administration costs to the workers compensation scheme regulators. In NSW, costs includethe WorkCover Fund Contribution and Dust Diseases Fund. In the ACT, the Default Insurance Fund Levy andMagistrates Court Levy are recurrent costs.

(vii) Termination benefitsTermination benefits are payable when employment is terminated before the normal retirement date, or whenan employee accepts an offer of benefits in exchange for the termination of employment. The Grouprecognises termination benefits either when it can no longer withdraw the offer of those benefits or when it hasrecognised costs for restructuring within the scope of AASB 137 that involves the payment of terminationbenefits, or when it is demonstrably committed to either terminating the employment of current employeesaccording to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a resultof an offer made to encourage voluntary redundancy. Benefits not expected to be settled wholly before 12months after the end of the reporting period are discounted to present value.

(z) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurredis not recoverable from the taxation authority. In this case, it is recognised as part of the cost acquisition of theasset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount ofGST recoverable from, or payable to, the taxation authority is included with other receivables or payables in thestatement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing orfinancing activities which are recoverable from, or payable to the taxation authority, are presented as operatingcash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, thetaxation authority. Any GST payable (and recoverable from the Taxation Authority) on the commitments isdisclosed separately as part of the same note.

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(aa) Early adoption of accounting standard

In 2015, UNSW has decided to early adopt the relief outlined in AASB 2015-7. This new standard makesamendments to AASB 13 Fair Value Measurement to relieve not-for-profit public sector entities from certainrequirements of the standard.

The relief applies to the following disclosures about Level 3 assets within the scope of AASB 116 Property,Plant and Equipment which are primarily held for their current service potential rather than to generate futurenet cash inflows:

- quantitative information about the significant unobservable inputs used in the fair value measurement.

- the amount of the total gains and losses for the period included in profit or loss that is attributable to thechange in unrealised gains or losses relating to the assets held at the end of the reporting period.

- a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if achange in those inputs to a different amount might result in a significantly higher or lower fair valuemeasurement.

UNSW has applied this relief for both Campus Buildings and Leasehold improvements. Refer to note 36 forfurther disclosure.

(ab) Key management personnel

For the Group, key management personnel are members of UNSW Council and persons having authority andresponsibility for planning, directing and controlling the activities of the Group, directly or indirectly.

(ac) Standards and interpretations issued but not effective for the reporting period

(i) StandardsName Application Date

AASB 15 Revenue from Contracts with Customers Annual reporting periods beginningon or after 1 January 20181

AASB 9 Financial Instruments Annual reporting periods beginningon or after 1 January 20182

AASB 124 Related Party Disclosures Annual reporting periods beginningon or after 1 July 20163

AASB 16 Leases Annual reporting periods beginningon or after 1 January 20194

1The likely impact on the first time adoption of the standard for the year ending 31 December 2018 may include a change tothe timing of when revenue can be recognised. This is primarily as a result of changes impacting Government Contributions

formerly recognised under AASB 1004: Contributions. ED260: Income of Not-for-Profit Entities was released for comment in

April 2015. This ED is to replace AASB 1004.2The likely impact on the first time adoption of the standard for the year ending 31 December 2018 may include increasedvolatility in the income statement. This is primarily as a result of changes in available-for-sale financial assets recognitioncriteria.3The likely impact on the first time adoption of the standard for the year ending 31 December 2017 may include increaseddisclosure requirements relating to related party transactions. Comparative information will not be required in the first year of

application.

4The likely impact on the first time adoption of the standard for the year ending 31 December 2019 is recognition of assetsand liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The initialmeasurement of assets and liabilities arising from a lease are initially measured on a present value basis, and recognition ofdepreciation of lease assets and interest on lease liabilities will be recorded in the income statement over the lease term.

The likely impacts for each of the above standards have not yet been quantified.

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(ac) Standards and interpretations issued but not effective for the reporting period(continued)

(ii) InterpretationsName Application date

AASB 2013-9 Amendments to Australian Accounting Standards -Conceptual Framework, Materiality and FinancialInstruments (Part C: Financial Instruments)

Annual reporting periods beginningon or after 1 January 2015

AASB 2014-1 Amendments to Australian Accounting Standards(Part E: Financial Instruments)


AASB 2014-4 Amendments to Australian Accounting Standards -Clarification of Acceptable Methods of Depreciationand Amortisation (AASB 116 & AASB 138)


AASB 2014-5 Amendments to Australian Accounting Standardsarising from AASB 15


AASB 2014-7 Amendments to Australian Accounting Standardsarising from AAS 9 (December 2014)


AASB 2014-8 Amendments to Australian Accounting Standardsarising from AAS 9 (December 2014) - Application ofAASB 9 (December 2009) and AASB 9 (December2010) [AASB 9 (2009 & 2010)]


AASB 2014-9 Amendments to Australian Accounting Standards -Equity Method in Separate Financial Statements[AASB 1, AASB 127 & AASB 128]


AASB 2015-1 Amendments to Australian Accounting Standards -Annual Improvements to Australian AccountingStandards 2012-2014 Cycle {AASB 1, AASB 3, AASB5, AASB 7, AASB 11, AASB 110, AASB 119, AASB121, AASB 137 & AASB 140]


AASB 2015-2 Amendments to Australian Accounting Standards -Disclosure Initiative: Amendments to AASB101[AASB 7 & AASB 101]


AASB 2015-3 Amendments to Australian Accounting Standardsarising from the Withdrawal of AASB 1031

Annual reporting periods beginningon or after 1 July 2015

AASB 2015-6 Amendments to Australian Accounting Standards -Extended Related Party Disclosures to Not-for-ProfitPublic Sector Entities [AASB 10 & AASB 124]


AASB 2015-7 Amendments to Australian Accounting Standards -Fair Value Disclosures of Not-for-Profit Public SectorEntities [AASB 13]


(ad) Rounding of amounts

Amounts in the financial statements have been rounded to the nearest thousand dollars, or in certain cases, thenearest dollar.

(ae) Comparative amounts

Comparative figures have been reclassified and repositioned in the financial statements, where necessary, toconform to the basis of presentation and classification used in the current year.

20





2 Australian Government financial assistance including Australian Government loanprograms (HELP)

(a) Commonwealth Grant Scheme and Other Grants

Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Commonwealth Grant Scheme 269,050 262,725 269,050 262,725

Indigenous Support Program 1,151 1,039 1,151 1,039

Partnership and ParticipationProgram 3,837 5,444 3,837 5,444

Disability Support Program 189 202 189 202

Promotion of Excellence inLearning and Teaching 100 303 100 303

Australian Maths & SciencePartnership Program - (225) - (225)

Other 522 522 522 522

Total Commonwealth GrantScheme and Other Grants 38(a) 274,849 270,010 274,849 270,010

(b) Higher Education Loan Programs

HECS-HELP 161,156 157,711 161,156 157,711

FEE-HELP 39,453 37,279 39,453 37,279

SA-HELP 38(i) 2,939 2,875 2,939 2,875

Total Higher Education LoanPrograms 38(b) 203,548 197,865 203,548 197,865

(c) Scholarships

Australian Postgraduate Awards 24,508 23,897 24,508 23,897

International PostgraduateResearch Scholarships 1,969 1,962 1,969 1,962

Commonwealth Education CostScholarships 10 107 10 107

Commonwealth AccommodationScholarships (44) 68 (44) 68

Indigenous Access Scholarships 5 28 5 28

Total Scholarships 38(c) 26,448 26,062 26,448 26,062

21





2 Australian Government financial assistance including Australian Government loanprograms (HELP) (continued)

(d) Education Research

Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Joint Research EngagementProgram (JRE) 32,381 30,976 32,381 30,976

JRE Engineering Cadetships 523 384 523 384

Research Training Scheme 63,419 63,032 63,419 63,032

Research Infrastructure BlockGrants 22,034 20,699 22,034 20,699

Sustainable Research Excellencein Universities 17,435 15,219 17,435 15,219

Total Education ResearchGrants 38(d) 135,792 130,310 135,792 130,310

(e) Other Capital Funding

Education Investment Fund - 10,850 - 10,850

Total Other Capital Funding 38(e) - 10,850 - 10,850

(f) Australian Research Council (ARC)

(i) Discovery

Projects 25,706 27,419 25,706 27,419

Fellowships 20,637 26,707 20,637 26,707

Indigenous ResearchersDevelopment 379 749 379 749

Total Discovery 38(f)(i) 46,722 54,875 46,722 54,875

(ii) Linkages

Infrastructure 5,248 3,881 5,248 3,881

Projects 9,036 10,529 9,036 10,529

Industrial TransformationalResearch Program 2,172 709 2,172 709

Total Linkages 38(f)(ii) 16,456 15,119 16,456 15,119

(iii) Networks and Centres

Centres 4,397 4,412 4,397 4,412

Total Networks and Centres 38(f)(iii) 4,397 4,412 4,397 4,412

Total ARC 67,575 74,406 67,575 74,406

22






(g) Other Australian Government financial assistance

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Non-capital

Health and Ageing 81,114 82,926 81,114 82,926

Department of Defence 61,394 60,414 61,394 60,414

AUSAID 12,444 12,424 12,444 12,424

Various Other AustralianGovernment 39,234 50,530 39,234 50,530

Total 194,186 206,294 194,186 206,294

Capital

Various Other AustralianGovernment - 151 - 151

Total - 151 - 151

Total Other AustralianGovernment financialassistance 194,186 206,445 194,186 206,445

Total Australian GovernmentFinancial Assistance 902,398 915,948 902,398 915,948

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Reconciliation

Australian Government Grants 698,850 718,083 698,850 718,083

HECS-HELP 161,156 157,711 161,156 157,711

FEE-HELP 39,453 37,279 39,453 37,279

SA-HELP 2,939 2,875 2,939 2,875

Total Australian GovernmentFinancial Assistance 902,398 915,948 902,398 915,948

23






(h) Australian Government Grants received - cash basis

Consolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

CGS and Other Education Grants 274,077 270,533 274,077 270,533

Higher Education Loan Programs 203,667 195,581 203,667 195,581

Scholarships 26,701 26,062 26,701 26,062

Education research 135,792 130,310 135,792 130,310

Other Capital Funding - 10,850 - 10,850

ARC grants - Discovery 48,078 56,152 48,078 56,152

ARC grants - Linkages 17,445 17,414 17,445 17,414

ARC grants - Networks andCentres 9,534 9,480 9,534 9,480

Other Australian GovernmentGrants 203,016 208,216 203,016 208,216

Total Australian GovernmentGrants received - cash basis 918,310 924,598 918,310 924,598

OS-HELP (Net) 38(g) 408 2,897 408 2,897

Superannuation Supplementation 38(h) 48,074 - 48,074 -

Total Australian Governmentfunding received - cash basis 966,792 927,495 966,792 927,495

3 State and Local Government financial assistance

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Non-capital

Research financial assistance - State 23,763 25,023 23,763 24,627

Research financial assistance - Local 396 273 396 273

Other financial assistance 771 663 771 663

Total non-capital 24,930 25,959 24,930 25,563

Capital

Other financial assistance - State 1,373 1,908 1,373 1,908

Total capital 1,373 1,908 1,373 1,908

Total State and Local GovernmentFinancial Assistance 26,303 27,867 26,303 27,471

24





4 Fees and chargesConsolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Course fees and charges

Fee-paying onshore overseasstudents 442,969 377,861 362,788 319,746

Fee-paying offshore overseasstudents 297 322 297 322

Continuing education 16,521 15,824 16,521 15,853

Fee-paying domestic postgraduatestudents 24,220 26,152 23,275 24,690

Fee-paying domestic undergraduatestudents 2,471 3,065 2,471 3,065

Total course fees and charges 486,478 423,224 405,352 363,676

Other non-course fees andcharges

Educational measurement andtesting 20,313 21,280 4,791 4,877

Rental charges 15,271 14,232 19,604 17,458

Student accommodation 32,091 29,738 27,457 25,066

Publication sales 553 538 125 945

Miscellaneous sales 23,138 23,735 10,541 10,130

Service fees 23,469 21,695 21,089 18,759

Cost recoveries1 23,665 26,667 29,384 27,979

Student services and amenities fee 38(i) 4,514 4,467 4,514 4,467

Total other fees and charges 143,014 142,352 117,505 109,681

Total fees and charges 629,492 565,576 522,857 473,357

1The parent entity recovers costs paid on behalf of controlled entities, associated organisations and external entities.

5 Investment revenue and other investment incomeConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Interest 8,324 6,753 6,752 5,444

Dividends 26,635 30,686 27,249 32,989

Other ATO franking credit 2,863 2,828 2,863 2,828

Total investment revenue 37,822 40,267 36,864 41,261

Net gains/(losses) on sale ofinvestments (418) 2,643 (1,043) 775

Gains reclassified from equity 6,987 20,730 6,564 20,435

Total other investment income 6,569 23,373 5,521 21,210

Total investment income 44,391 63,640 42,385 62,471

25





6 Consultancy and contracts

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Consultancy 9,012 8,666 2,353 2,480

Contract research 58,123 53,883 57,893 53,372

Total consultancy and contracts 67,135 62,549 60,246 55,852

7 Other revenue and income

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Other revenue

Donations, bequests andcontributions1 30,087 28,874 63,103 48,919

Scholarships and prizes 6,280 6,282 6,280 6,282

Other external grants 523 1,066 523 1,292

Total other revenue 36,890 36,222 69,906 56,493

Other income

Subscription 203 240 203 240

Sponsorship 7,396 6,874 7,351 6,874

Miscellaneous income2 6,191 24,747 4,215 22,830

Total other income 13,790 31,861 11,769 29,944

Total other revenue and income 50,680 68,083 81,675 86,437

1Donations, bequests and contributions for the year ended 31 December 2015 to the Parent include contributions of $32,734,000 fromUNSW Global Pty Ltd (2014: $19,633,000).2For the year ended 31 December 2014 $18,309,000 related to the recognition of funding the Commonwealth and NSW Governmentsfor the SANCS superannuation scheme (refer to note 1(a)(i)).

26





8 Employee related expensesConsolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Academic1

Salaries 376,890 365,124 366,118 356,406

Contributions to superannuation andpension schemes:

Unfunded schemes 195 4,091 195 4,091

Funded schemes 56,058 53,776 54,505 52,513

Payroll tax 23,846 23,485 22,942 22,767

Workers compensation 360 995 240 888

Long service leave expense 11,541 14,286 11,103 13,897

Annual leave 34,758 33,766 33,506 32,718

Other 2,988 3,475 2,988 3,475

Total academic 506,636 498,998 491,597 486,755

Non-academic2

Salaries 338,276 329,545 308,028 301,389

Contributions to superannuation andpension schemes:

Unfunded schemes 154 176 154 176

Funded schemes 46,260 44,328 43,750 41,976

Payroll tax 21,037 21,088 19,134 18,946

Workers compensation 428 982 206 750

Long service leave expense 10,727 11,902 10,112 11,326

Annual leave 28,777 28,221 26,928 26,483

Other 7,144 6,816 6,538 6,318

Total non-academic 452,803 443,058 414,850 407,364

Total employee related expenses 959,439 942,056 906,447 894,119

Deferred superannuation expense 37(e) 4,570 410 4,570 410

Total employee related expenses,including deferred employment benefitsfor superannuation 964,009 942,466 911,017 894,529

1Academic staff includes teaching staff, sessional teaching staff, guest lecturers and academic research staff.2Non-academic staff includes general and administrative staff, professional staff, examination supervisors and casual general staff.

27





9 Depreciation and amortisationConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Depreciation

Campus buildings and off-campusproperties 103,281 96,445 102,577 96,004

Computer equipment 6,502 7,305 6,008 6,937

Motor vehicles 154 130 109 83

Leasehold improvements 1,339 1,530 1,218 1,448

Other equipment 25,778 23,645 25,743 23,611

Library collections 875 620 875 620

Total depreciation 137,929 129,675 136,530 128,703

Amortisation

Computer software 5,094 4,991 4,442 4,251

Patents 166 180 - -

Digitalised library research collections 574 384 574 384

Total amortisation 5,834 5,555 5,016 4,635

Total depreciation and amortisation 143,763 135,230 141,546 133,338

10 Repairs and maintenanceConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Service contracts 11,394 12,207 10,966 11,966

Buildings 15,927 16,579 14,965 15,550

Other equipment 7,040 5,220 7,037 5,214

Total repairs and maintenance 34,361 34,006 32,968 32,730

11 Borrowing costs

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Interest expense 2,485 2,832 2,483 2,832

Total borrowing costsexpensed 2,485 2,832 2,483 2,832

28





12 Impairment of assetsConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Student debtors 503 923 503 923

Sundry debtors (2) 704 (177) 503

Loans and other receivables - - - 164

Available-for-sale and other financial assets 178 23 - -

Property, plant and equipment (29) (148) (29) (148)

Intangible assets 14,317 1,239 12,990 -

Total impairment of assets 14,967 2,741 13,287 1,442

13 Other expensesConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Scholarships, grants and prizes 112,554 102,172 119,589 108,578

Non-capitalised equipment 46,643 45,089 50,138 44,923

Advertising, marketing and promotionalexpenses 16,090 14,781 14,598 12,630

Audit fees 935 906 474 479

Consumables 37,054 34,216 35,483 32,831

Travel and entertainment 45,163 44,659 43,970 43,681

Commission to agents 28,621 25,138 19,739 17,301

Contract services (including consultants) 146,231 142,948 139,937 137,663

Cost of books sold 5,352 6,023 - -

Energy, utilities, postage and telephone 22,109 23,816 21,550 22,986

Fees, charges and insurance 31,625 31,886 30,436 30,988

Operating lease expenses 12,089 12,238 5,937 6,387

Other operating expenses 19,312 15,247 13,486 9,633

Total other expenses 523,778 499,119 495,337 468,080

29





14 Income tax

(a) Income taxConsolidated

2015

$'000

2014

$'000

Current income tax (expense)/benefit 8 (55)

Income tax (expense)/benefit is attributable:

- Net result from continuing operations 8 (55)

Aggregate income tax (expense)/benefit 8 (55)

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

Net result before income tax 77,504 130,105

Tax at the Australian tax rate of 30% (2014: 30%) (23,251) (39,032)

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

Net income of tax exempt entities 23,313 39,033

Difference in overseas tax rates (58) (60)

Adjustment for current tax of prior periods 4 4

Total income tax (expense)/benefit 8 (55)

15 Cash and cash equivalentsConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Cash at bank and on hand 90,221 56,371 59,415 33,582

Deposits at call and investments originallymaturing within three months 127,518 45,128 69,518 5,128

Total cash and cash equivalents 217,739 101,499 128,933 38,710

(a) Reconciliation to cash and cash equivalents at the end of the financial year

The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in thestatement of cash flows.

(b) Cash at bank

Cash at bank earns floating interest rates between 0.53% and 2.38% (2014: 0.51% and 2.70%).

(c) Deposits at call and investments originally maturing within three months

The deposits are bearing interest rates between 2.35% and 2.85% (2014: 2.50% and 3.27%).

30





16 ReceivablesConsolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current

Sundry debtors 36,441 39,448 29,471 33,688

Less: Provision for impaired receivables (1,268) (1,569) (715) (966)

35,173 37,879 28,756 32,722

Student debtors 5,965 4,900 5,965 4,900

Less: Provision for impaired receivables (2,253) (2,290) (2,253) (2,290)

3,712 2,610 3,712 2,610

Loans and other receivables1 - - 32,819 20,124

Less: Provision for impaired loans - - - (414)

- - 32,819 19,710

Payments in advance 33,480 30,712 32,028 29,444

Sundry advances 608 567 572 545

Deferred government contributions forsuperannuation2 37(d) 80,692 55,743 80,692 55,743

Accrued income 12,058 18,187 12,343 18,451

Investment income receivable 4,345 2,076 4,343 2,075

Total current receivables 170,068 147,774 195,265 161,300

Non-current

Payments in advance 4,848 3,475 4,848 3,475

Deferred government contributions forsuperannuation2 37(d) 1,296,838 1,325,294 1,296,838 1,325,294

Other receivables 3,751 3,881 3,697 3,823

Total non-current receivables 1,305,437 1,332,650 1,305,383 1,332,592

Total receivables 1,475,505 1,480,424 1,500,648 1,493,892

1As at 31 December 2015, loans and other receivables include contributions of $32,734,000 (2014: $19,633,000) due from UNSWGlobal Pty Ltd, refer to note 7.

2As at 31 December 2015, a total of $1,377,530,000 (2014: $1,381,037,000) is receivable from the Commonwealth and NSWGovernments. These amounts include the net assets of UNSW Global Pty Ltd of $2,523,000 (2014: $2,439,000). The correspondingprovisions for Deferred government benefits for superannuation is a total of $1,488,208,000 (2014: $1,485,391,000) (refer to note 25),with the net provision of $110,678,000 (2014: $104,354,000) relating to UNSW Canberra at ADFA ($108,722,000) and other unfundedsuperannuation costs ($1,956,000).

31





16 Receivables (continued)

(a) Impaired receivables

Terms of trade are generally 30 days. As at 31 December 2015, current receivables of the Group and theparent entity with a nominal value of $8,499,000 and $7,946,000, respectively (2014: $9,792,000 and$9,194,000, respectively) were impaired. The amounts of the provision for the Group and the parent entity were$3,521,000 and $2,968,000 respectively (2014: $3,859,000 and $3,256,000, respectively), and relate to non-government customers, who are in unexpectedly difficult economic situations.

The ageing of the provision of these receivables are as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

91 to 180 days 722 856 495 613

181 to 270 days 222 207 136 72

271 to 365 days 876 821 746 732

over 365 days 1,701 1,975 1,591 1,839

3,521 3,859 2,968 3,256

(b) Past due but not impaired receivables

As at 31 December 2015 current receivables of the Group and the parent entity with a nominal value of$9,555,000 and $7,472,000 respectively (2014: $11,966,000 and $9,395,000 respectively) were past due butnot impaired.

The ageing of the nominal values of these receivables are as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

31 - 60 days 6,116 5,890 4,584 4,297

61 - 90 days 2,246 2,664 1,861 2,023

91 - 180 days 1,021 3,207 884 2,887

181 - 270 days 111 179 104 170

271 - 365 days 61 26 39 18

9,555 11,966 7,472 9,395

32





16 Receivables (continued)

(c) Movements

Movements in the provision for impaired receivables are as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Sundry debtors

Opening balance at 1 January 1,569 1,003 966 566

Provision for impairmentadded/(released) during the year (2) 704 (177) 503

Receivables written off during the year (299) (138) (74) (103)

Closing balance at 31 December 1,268 1,569 715 966

Student debtors

Opening balance at 1 January 2,290 1,792 2,290 1,792

Provision for impairment added duringthe year 503 923 503 923

Receivables written off during the year (540) (425) (540) (425)

Closing balance at 31 December 2,253 2,290 2,253 2,290

Loans and other receivables

Opening balance at 1 January - - 414 250

Provision for impairment added duringthe year - - - 164

Loans and other receivables forgivenduring the year - - (414) -

Closing balance at 31 December - - - 414


The creation and release of the provision for impaired receivables have been included in 'impairment of assets'in the income statement, refer to note 12. Amounts charged to the provision account are generally written offwhen there is no expectation of recovering additional cash.

The other classes within receivables do not contain impaired assets and are not past due. Based on credithistory of these other classes, it is expected that these amounts will be received when due.

33





17 Investments accounted for using the equity method2015

$'000

2014

$'000

Associates 16,139 4,394

Joint ventures - 9,594

Total investments accounted for using the equity method 16,139 13,988

(a) AssociatesFair value Ownership Interest %

Name of EntityPlace

of businessMeasurement

method

2015

$'000

2014

$'000 2015 2014

UIIT Trust No. 31 Australia Equity method 10,477 - 100.00 100.00

UIIT Trust No. 6 Australia Equity method 471 - 100.00 100.00

Australian Technology Park Innovation Pty Ltd Australia Equity method 5,191 4,394 25.00 25.00

Acyte Biotech Pty Ltd2 Australia Equity method - - 43.00 43.00

BioParticle Technologies Pty Ltd2 Australia Equity method - - 35.00 35.00

Bionic Vision Technologies Pty Ltd2 Australia Equity method - - 40.00 40.00

Randwick Health and Medical ResearchInstitute2 Australia Equity method - - 30.00 30.00

Sydney Institute of Marine Science2 Australia Equity method - - 25.00 25.00

Centre for Eye Health2 Australia Equity method - - 38.00 38.00

Dosimetry & Imaging Pty Ltd 3 Australia Fair value - - 13.51 40.00

16,139 4,394

1This entity was reclassified as an associate in 2015 following changes to shareholder agreements.

2These companies are public companies limited by guarantee. The constitutions of these companies prohibit profitdistributions of funds to the members. Accordingly, the results of these companies are equity accounted at nil value.

3In 2015 Dosimetry & Imaging Pty Ltd (D&I) issued additional shares, which resulted in NSI's ownership interest to reducefrom 40% to 13.51%. Accordingly, D&I is accounted for as an available-for-sale financial asset as at 31 December 2015.

34





17 Investments accounted for using the equity method (continued)

(b) Summarised financial information - associates

Summarised financial information for individually material associates is set out below:

UIIT Trust No. 3Australian Technology Park

Innovation Pty Ltd

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current assets 1,449 732 5,857 6,190

Non-current assets 10,329 8,903 16,345 12,675

Total assets 11,778 9,635 22,202 18,865

Current liabilities 1,301 41 1,420 1,333

Non-current liabilities - - 12 38

Total liabilities 1,301 41 1,432 1,371

Net assets 10,477 9,594 20,770 17,494

Share of associates' net assets 10,477 9,594 5,191 4,394

Reconciliation of carrying amounts:

Balance at 1 January 9,594 5,032 4,394 4,587

Share of profit for year 2,135 6,807 797 (193)

Dividends (1,252) (2,926) - -

Additions - 681 - -

Balance at 31 December 10,477 9,594 5,191 4,394

Financial Performance

Income 2,572 6,438 6,138 2,164

Profit/(loss) from continuing operations 2,135 6,807 3,188 (771)

Other comprehensive income 2,135 6,807 3,188 (771)

Share of associates' profit/(loss) 2,135 6,807 797 (193)

(c) Joint VenturesFair value Ownership Interest %

Name of EntityPlace

of businessMeasurement

method

2015

$'000

2014

$'000 2015 2014

UIIT Trust No. 31 Australia Equity method - 9,594 - 100.00

1The entity was reclassified as an associate in 2015 following changes to shareholder agreements.

(d) Individually immaterial associates

Aggregate carrying amount of interests in associates accounted for using the equity method that are notindividually material in the consolidated financial statements:

2015

$'000

2014

$'000

Profit/(loss) from continuing operations (29) -

Loss from continuing operations afterincome tax (29) -

Total comprehensive income (29) -

35





18 Other financial assetsConsolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current

Available-for-sale financial assets

Other available-for-sale financialassets 142 - 142 -

Held-to-maturity investments

Term deposit (a) 23,394 80,182 23,394 80,182

Derivative financial instruments

Forward foreign exchange contracts (b) 521 1,404 521 1,404

Total current other financial assets 24,057 81,586 24,057 81,586

Non-current


Unlisted unit trusts 438,091 435,162 430,215 426,323

Listed equities 6 9 - -

Unlisted equities 11,402 6,987 9,198 4,853

Total non-current available-for-salefinancial assets 449,499 442,158 439,413 431,176


Forward foreign exchange contracts (b) 23 46 23 46

Total non-current derivative financialinstruments 23 46 23 46

Other financial assets at cost

Unlisted companies (c) 4 4 97 97

Unincorporated venture capitalinvestment

(c)- - 6,102 5,602

Total non-current other financialassets at cost 4 4 6,199 5,699

Total non-current other financialassets 449,526 442,208 445,635 436,921

Total other financial assets 473,583 523,794 469,692 518,507

(a) Held-to-maturity investmentsThe average interest rate for held-to-maturity investments to which the Group is exposed at the end of thereporting period was 2.61% (2014: 3.47%).

(b) Derivative financial instrumentsThe Group entered into forward foreign exchange contracts, which are economic hedges but do not satisfy therequirements for hedge accounting. Changes in the fair value of these instruments are recognised in theincome statement as part of net foreign exchange gains/losses.

Information about the Group and the parent entity’s exposure to foreign exchange risk is provided in note 35.

(c) Other financial assetsThe Group and the parent entity's investments are shown at cost less impairment losses.

36





19 Investment propertiesConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

At fair value

Opening balance at 1 January 8,247 - 8,247 -

Acquisitions - 8,247 - 8,247

Capital Work in Progress 601 - 601 -

Valuation gain 3 - 3 -


(a) Amounts recognised in profit or loss for investment propertiesConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Rental income 659 396 659 396

Direct operating expenses (rentgenerating properties) (562) (313) (562) (313)

Total recognised in profit orloss 97 83 97 83

(b) Valuation basis

Investment properties (comprising of land and buildings) are fair valued, based on the highest and best use ofthe assets. The value reflects the amounts for which the assets could be exchanged between willing parties inan arm's length transaction, based on current prices in an active market for similar properties in the samelocation and condition. Fair value reflects, among other things, rental income from current leases and otherassumptions that market participants would use when pricing the investment property under current marketconditions. The valuation for 2015 was based on an independent assessment by CBRE Valuations Pty Ltd asat 31 December 2015.

(c) Leasing arrangements

The investment properties are leased to tenants under long-term operating leases with rentals payable monthly.Minimum lease payments receivable on investment properties are as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Within one year 726 476 726 476

Later than one year but not laterthan five years 1,846 60 1,846 60

Total future minimum leasepayments receivable 2,572 536 2,572 536

Applicable GST recoverable fromthe Taxation Authority 257 54 257 54

37

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

49

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

20

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t

Co

nso

lid

ate

d

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fa

rt

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

At

1 J

an

uary

2014

Cost

176,6

18

--

--

63,2

41

975

-261,8

61

90,4

78

-593,1

73

Valu

atio

n-

258,8

03

208,5

92

2,2

76,1

18

5,2

37

--

22,6

99

--

11,9

87

2,7

83,4

36

Acc

um

ula

ted d

epre

ciatio

n-

-(4

0,8

70)

(1,1

52,7

28)

-(5

0,3

79)

(271)

(10,8

67)

(132,8

17)

(85,9

01)

-(1

,473,8

33)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(548)

--

(548)

Net book

am

ount

176,6

18

258,8

03

167,7

22

1,1

23,3

90

5,2

37

12,8

62

704

11,8

32

128,4

96

4,5

77

11,9

87

1,9

02,2

28

Year

en

ded

31 D

ecem

ber

2014

Openin

g n

et book

am

ount

176,6

18

258,8

03

167,7

22

1,1

23,3

90

5,2

37

12,8

62

704

11,8

32

128,4

96

4,5

77

11,9

87

1,9

02,2

28

Additi

ons

201,8

01

-6,5

52

--

5,5

29

181

77

35,6

80

632

-250,4

52

Ass

ets

dis

posa

l-

--

--

(8,7

64)

(128)

(144)

(9,4

63)

--

(18,4

99)

Tra

nsf

ers

(173,5

05)

-531

171,5

85

--

-1,3

89

--

--

Exc

hange d

iffere

nce

s-

--

3-

7-

10

--

-20

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

12,5

01

11,8

68

31,6

87

(76)

--

(1,1

60)

--

(92)

54,7

28

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(1

,739)

9,1

62

--

-2,4

96

--

-9,9

19

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(2

,801)

(93,6

44)

-(7

,305)

(130)

(1,5

30)

(23,6

45)

(620)

-(1

29,6

75)

Wr ite

-back

for

ass

ets

dis

pose

d-

--

--

8,7

45

32

144

9,0

25

--

17,9

46

Exc

hange d

iffere

nce

s-

--

(5)

-(6

)-

(2)

(2)

--

(15)

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

148

--

148

Clo

sing n

et book

am

ount

204,9

14

271,3

04

182,1

33

1,2

42,1

78

5,1

61

11,0

68

659

13,1

12

140,2

39

4,5

89

11,8

95

2,0

87,2

52

At

31 D

ecem

ber

2014

Cost

204,9

14

--

--

60,0

13

1,0

28

-288,0

78

91,1

10

-645,1

43

Valu

atio

n-

271,3

04

227,5

43

2,4

79,3

93

5,1

61

--

22,8

71

--

11,8

95

3,0

18,1

67

Acc

um

ula

ted d

epre

ciatio

n-

-(4

5,4

10)

(1,2

37,2

15)

-(4

8,9

45)

(369)

(9,7

59)

(147,4

39)

(86,5

21)

-(1

,575,6

58)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(400)

--

(400)

Net

bo

ok a

mo

un

t204,9

14

271,3

04

182,1

33

1,2

42,1

78

5,1

61

11,0

68

659

13,1

12

140,2

39

4,5

89

11,8

95

2,0

87,2

52

38

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

50

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

20

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t (c

on

tin

ue

d)

Co

nso

lid

ate

d

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fa

rt

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

Year

en

ded

31 D

ecem

ber

2015

Openin

g n

et book

am

ount

204,9

14

271,3

04

182,1

33

1,2

42,1

78

5,1

61

11,0

68

659

13,1

12

140,2

39

4,5

89

11,8

95

2,0

87,2

52

Additi

ons

101,2

88

-4,3

59

-42

2,8

79

342

60

37,7

62

388

-147,1

20

Ass

ets

dis

posa

l-

--

--

(4,9

10)

(79)

-(7

,925)

--

(12,9

14)

Tra

nsf

ers

(245,2

35)

-17,3

07

226,5

08

-1,3

62

-58

--

--

Exc

hange d

iffere

nce

s-

--

--

13

-29

12

--

54

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

7,1

12

10,3

01

57,1

20

(104)

--

2,2

59

--

54

76,7

42

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(1

,266)

(12,0

65)

--

-(1

,924)

--

-(1

5,2

55)

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(3

,430)

(99,8

51)

-(6

,502)

(154)

(1,3

39)

(25,7

78)

(875)

-(1

37,9

29)

Wr ite

-back

for

ass

ets

dis

pose

d-

--

--

4,9

08

65

-7,4

15

--

12,3

88

Exc

hange d

iffere

nce

s-

--

--

(14)

-(1

7)

(8)

--

(39)

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

29

--

29

Clo

sing n

et book

am

ount

60,9

67

278,4

16

209,4

04

1,4

13,8

90

5,0

99

8,8

04

833

12,2

38

151,7

46

4,1

02

11,9

49

2,1

57,4

48

At

31 D

ecem

ber

2015

Cost

60,9

67

--

--

59,3

57

1,2

91

-317,9

27

91,4

98

-531,0

40

Valu

atio

n-

278,4

16

259,5

10

2,7

63,0

21

5,0

99

--

25,2

77

--

11,9

49

3,3

43,2

72

Acc

um

ula

ted d

epre

ciatio

n-

-(5

0,1

06)

(1,3

49,1

31)

-(5

0,5

53)

(458)

(13,0

39)

(165,8

10)

(87,3

96)

-(1

,716,4

93)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(371)

--

(371)

Net book

am

ount

60,9

67

278,4

16

209,4

04

1,4

13,8

90

5,0

99

8,8

04

833

12,2

38

151,7

46

4,1

02

11,9

49

2,1

57,4

48

39

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

51

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

20

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t (c

on

tin

ue

d)

Pare

nt

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fa

rt

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

At

1 J

an

uary

2014

Cost

176,6

18

--

--

59,1

67

682

-261,3

61

90,4

78

-588,3

06

Valu

atio

n-

258,8

03

208,5

92

2,2

68,3

64

5,2

32

--

22,2

55

--

11,9

87

2,7

75,2

33

Acc

um

ula

ted d

epre

ciatio

n-

-(4

0,8

70)

(1,1

47,4

03)

-(4

6,9

31)

(140)

(10,6

21)

(132,4

38)

(85,9

01)

-(1

,464,3

04)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(548)

--

(548)

Net book

am

ount

176,6

18

258,8

03

167,7

22

1,1

20,9

61

5,2

32

12,2

36

542

11,6

34

128,3

75

4,5

77

11,9

87

1,8

98,6

87

Year

en

ded

31 D

ecem

ber

2014

Openin

g n

et book

am

ount

176,6

18

258,8

03

167,7

22

1,1

20,9

61

5,2

32

12,2

36

542

11,6

34

128,3

75

4,5

77

11,9

87

1,8

98,6

87

Additi

ons

201,0

68

-6,5

52

--

5,3

41

181

77

35,6

71

632

-249,5

22

Ass

ets

dis

posa

ls-

--

--

(7,9

70)

(128)

-(9

,462)

--

(17,5

60)

Tra

nsf

ers

(173,5

05)

-531

171,5

85

--

-1,3

89

--

--

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

12,5

01

11,8

68

31,6

87

(76)

--

(1,1

60)

--

(92)

54,7

28

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(1

,739)

9,1

62

--

-2,4

96

--

-9,9

19

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(2

,801)

(93,2

03)

-(6

,937)

(83)

(1,4

48)

(23,6

11)

(620)

-(1

28,7

03)

Wr ite

-back

of ass

ets

dis

pose

d-

--

--

7,9

54

32

-9,0

25

--

17,0

11

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

148

--

148

Clo

sing n

et book

am

ount

204,1

81

271,3

04

182,1

33

1,2

40,1

92

5,1

56

10,6

24

544

12,9

88

140,1

46

4,5

89

11,8

95

2,0

83,7

52

At

31 D

ecem

ber

2014

Cost

204,1

81

--

--

56,5

38

735

-287,5

70

91,1

10

-640,1

34

Valu

atio

n-

271,3

04

227,5

43

2,4

71,6

36

5,1

56

--

22,5

61

--

11,8

95

3,0

10,0

95

Acc

um

ula

ted d

epre

ciatio

n-

-(4

5,4

10)

(1,2

31,4

44)

-(4

5,9

14)

(191)

(9,5

73)

(147,0

24)

(86,5

21)

-(1

,566,0

77)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(400)

--

(400)

Net book

am

ount

204,1

81

271,3

04

182,1

33

1,2

40,1

92

5,1

56

10,6

24

544

12,9

88

140,1

46

4,5

89

11,8

95

2,0

83,7

52

40

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

52

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

20

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t (c

on

tin

ue

d)

Pare

nt

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fa

rt

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

Year

en

ded

31 D

ecem

ber

2015

Openin

g n

et book

am

ount

204,1

81

271,3

04

182,1

33

1,2

40,1

92

5,1

56

10,6

24

544

12,9

88

140,1

46

4,5

89

11,8

95

2,0

83,7

52

Additi

ons

96,4

13

-4,3

59

-42

2,8

56

279

-37,7

61

388

-142,0

98

Ass

ets

dis

posa

ls-

--

--

(4,5

39)

(25)

-(7

,925)

--

(12,4

89)

Tra

nsf

ers

(239,9

56)

-17,3

07

222,5

91

--

-58

--

--

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

7,1

12

10,3

01

57,6

44

(104)

--

2,2

59

--

54

77,2

66

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(1

,266)

(12,5

89)

--

-(1

,924)

--

-(1

5,7

79)

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(3

,430)

(99,1

47)

-(6

,008)

(109)

(1,2

18)

(25,7

43)

(875)

-(1

36,5

30)

Wr ite

-back

for

ass

et dis

pose

d-

--

--

4,5

37

21

-7,4

16

--

11,9

74

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

29

--

29

Clo

sing n

et book

am

ount

60,6

38

278,4

16

209,4

04

1,4

08,6

91

5,0

94

7,4

70

710

12,1

63

151,6

84

4,1

02

11,9

49

2,1

50,3

21

At

31 D

ecem

ber

2015

Cost

60,6

38

--

--

54,8

55

989

-317,4

06

91,4

98

-525,3

86

Valu

atio

n-

278,4

16

259,5

10

2,7

51,8

71

5,0

94

--

24,8

78

--

11,9

49

3,3

31,7

18

Acc

um

ula

ted d

epre

ciatio

n-

-(5

0,1

06)

(1,3

43,1

80)

-(4

7,3

85)

(279)

(12,7

15)

(165,3

51)

(87,3

96)

-(1

,706,4

12)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(371)

--

(371)

Net book

am

ount

60,6

38

278,4

16

209,4

04

1,4

08,6

91

5,0

94

7,4

70

710

12,1

63

151,6

84

4,1

02

11,9

49

2,1

50,3

21

41





20 Property, plant and equipment (continued)

(a) Valuations of campus land and off-campus properties

Campus land and off-campus properties (comprises land and buildings) are fair valued based on the highestand best use of the assets. The value reflects the amounts for which the assets could be exchanged betweenwilling parties in an arm's length transaction, based on current prices in an active market for similar propertiesin the same location and condition. The revaluations for 2015 were based on independent assessments byCBRE Valuations Pty Ltd as at 31 December 2015.

(b) Valuations of campus buildings and leasehold improvements

Campus buildings and leasehold improvements are fair valued using the depreciated replacement cost basis.The 2015 revaluations were based on independent assessments by CBRE Valuations Pty Ltd as at 31December 2015.

(c) Valuations of rare books

Rare books are stated at fair value to reflect the amounts for which the assets could be exchanged betweenwilling parties in an arm's length transaction, based on current prices in an active market. The 2015revaluations were based on independent assessments by McWilliam & Associates Pty Ltd as at 31 December2015.

(d) Valuations of works of art

Works of art are stated at fair value to reflect the amounts for which the assets could be exchanged betweenwilling parties in an arm's length transaction, based on current prices in an active market. The 2015revaluations were based on independent assessments by McWilliam & Associates Pty Ltd as at 31 December2015.

(e) Leasing arrangements

Certain parts of campus land, campus buildings and off-campus properties are leased to tenants under short-term and long-term operating leases with rentals payable monthly.

Minimum lease payments by lessees to the Group and the parent entity (exclusive of GST) under non-cancellable operating leases of properties not recognised in the financial statements are receivable as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Within one year 6,725 6,846 10,851 10,346

Later than one year but no later than fiveyears 15,806 14,378 33,623 32,756

Later than five years 2,886 6,364 26,333 36,807

Total future minimum lease paymentsreceivable 25,417 27,588 70,807 79,909

Total GST payable (at 10%) 2,494 2,696 7,030 7,928

42





21 Public Private Partnerships (PPP)

(a) High Street Housing Project

In 2007, the parent entity entered into a PPP with UNSW Village Pty Limited to finance, design, construct andcommission student accommodation and maintain, manage and operate it for a period of 40 years.

On 1 January 2010, the parent entity granted to UNSW Village Pty Limited a 40 year lease, the concessionperiod for the land making up the site. The parent entity retains the legal title to the land. The arrangement istreated as an operating lease with the parent entity being a lessor and the land is leased at a peppercorn rent.The land is recorded at fair value at the balance sheet date.

Management estimates that the fair value of the student accommodation at the end of the concession periodwill be nil, refer to note 1(e).

(b) New College Postgraduate Village Project

In 2007, the parent entity entered into a PPP with New College Postgraduate Village to finance, design,construct and commission student accommodation and maintain, manage and operate it for a period of 49years.

During 2009 the parent entity granted to New College Postgraduate Village a 49 year lease, the concessionperiod for the land making up the site. The parent entity retains the legal title to the land. The arrangement istreated as an operating lease with the parent entity being a lessor and the land is leased at a peppercorn rent.The land is recorded at fair value at the balance sheet date.

Management estimates that the fair value of the student accommodation at the end of the concession periodwill be nil, refer to note 1(e).

43





22 Intangible assets

Consolidated

Work inprogress

$'000

Patents

$'000

Computersoftware

$'000

Digitalisedlibrary

researchcollections

$'000

Total

$'000

At 1 January 2014

Cost 6,522 8,557 79,533 3,296 97,908

Accumulated amortisation and impairment - (7,345) (39,925) (255) (47,525)

Net book amount 6,522 1,212 39,608 3,041 50,383

Year ended 31 December 2014

Opening net book amount 6,522 1,212 39,608 3,041 50,383

Additions 18,933 1,562 187 1,889 22,571

Disposals - (648) (580) - (1,228)

Transfers (318) - 318 - -

Amortisation/impairment

Amortisation - (180) (4,991) (384) (5,555)

Impairment charge - (1,239) - - (1,239)

Write-back of amortisation and impairmenton disposal - 481 580 - 1,061

Closing net book amount 25,137 1,188 35,122 4,546 65,993

At 31 December 2014

Cost 25,137 9,471 79,458 5,185 119,251

Accumulated amortisation and impairment - (8,283) (44,336) (639) (53,258)

Net book amount 25,137 1,188 35,122 4,546 65,993


Opening net book amount 25,137 1,188 35,122 4,546 65,993

Additions 17,859 1,415 - 2,160 21,434

Disposals - (482) - - (482)

Transfers (18,534) - 18,534 - -

Exchange differences - - 6 - 6

Amortisation/impairment

Amortisation - (166) (5,094) (574) (5,834)

Write-back of amortisation and impairmenton disposal - 394 - - 394

Impairment charges (12,990) (1,327) - - (14,317)

Exchange differences - - (4) - (4)

Closing net book amount 11,472 1,022 48,564 6,132 67,190

At 31 December 2015

Cost 11,472 10,404 97,998 7,345 127,219

Accumulated amortisation and impairment - (9,382) (49,434) (1,213) (60,029)

Net book amount 11,472 1,022 48,564 6,132 67,190

44





22 Intangible assets (continued)

Parent

Work inprogress

$'000

Computersoftware

$'000

Digitalisedlibrary

researchcollections

$'000

Total

$'000

At 1 January 2014

Cost 6,256 76,721 3,296 86,273

Accumulated amortisation and impairment - (38,630) (255) (38,885)

Net book amount 6,256 38,091 3,041 47,388


Opening net book amount 6,256 38,091 3,041 47,388

Additions 18,243 45 1,889 20,177

Transfers (76) 76 - -

Amortisation - (4,251) (384) (4,635)

Closing net book amount 24,423 33,961 4,546 62,930

At 31 December 2014

Cost 24,423 76,842 5,185 106,450

Accumulated amortisation and impairment - (42,881) (639) (43,520)

Net book amount 24,423 33,961 4,546 62,930


Opening net book amount 24,423 33,961 4,546 62,930

Additions 17,159 - 2,160 19,319

Transfers (17,528) 17,528 - -

Amortisation - (4,442) (574) (5,016)

Impairment charge (12,990) - - (12,990)

Closing net book amount 11,064 47,047 6,132 64,243

At 31 December 2015

Cost 24,054 94,370 7,345 125,769

Accumulated amortisation and impairment (12,990) (47,323) (1,213) (61,526)

Net book amount 11,064 47,047 6,132 64,243

23 Trade and other payablesConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current

OS-HELP liability to Australian Government 2,974 2,566 2,974 2,566

Sundry creditors 44,262 33,896 38,407 29,233

Accrued expenses 37,135 51,484 30,872 46,595

Employee related liabilities 21,430 19,173 21,574 18,312

Total current trade and other payables 105,801 107,119 93,827 96,706

45





24 BorrowingsConsolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current

Unsecured

Financing arrangement (a) 761 625 761 625

Total current borrowings 761 625 761 625

Non-current

Unsecured

Financing arrangement (a) 38,341 39,102 38,341 39,102

Total non-current borrowings 38,341 39,102 38,341 39,102

Total borrowings 39,102 39,727 39,102 39,727

(a) Financing arrangements

On 15 December 2006, an agreement was signed with Westpac, in which the parent entity granted a 99 yearground lease over 221-227 Anzac Parade to Westpac Office Trust for an amount of $41,000,000 (excludingGST), and agreed to take a lease-back on the property for an initial period of 25 years. The parent entity alsoholds two ten year options. The lease-back transaction is a “triple net lease” with the parent entity beingresponsible for all outgoings, management and capital expenditure/maintenance expenditure for the full periodof the lease-back periods. The transaction was completed on 12 January 2007.

On 22 December 2009, Westpac Office Trust sold the rights and assigned their rights and obligations under thetenancy lease agreements to the new owners.

The parent entity has retained the significant risks and rewards of ownership of the property, thus it has treatedthe transaction as a financing arrangement. Funds received under the transaction have been disclosed as aninterest bearing liability. Payments of “rent” under the lease-back agreement have been treated as interest andprincipal repayments. The building will continue to be carried in accordance with the parent entity’s accountingpolicy for property, plant and equipment.

The financing arrangement has a borrowing rate of 6% (2014: 6%).

As at 31 December 2015, the maturity analysis of the borrowing costs and principal repayments was as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Within one year 3,202 3,108 3,202 3,108

Later than one year but not later thanfive years 13,796 13,395 13,796 13,395


Borrowing costs (25,580) (28,064) (25,580) (28,064)

Total 39,102 39,727 39,102 39,727

Within one year 761 625 761 625

Later than one year but not later thanfive years 4,658 3,986 4,658 3,986


Present value of loan principal 39,102 39,727 39,102 39,727

46





24 Borrowings (continued)

(b) Bank loan facilities

Unrestricted access was available at balance date to the following line of credit:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Bank loan facilities

Total facilities 250,000 250,000 250,000 250,000

Unused at balance date 250,000 250,000 250,000 250,000

(c) Fair value

The carrying amounts of borrowings at balance sheet date are approximate to their fair value. More informationis provided in note 36.

(d) Risk exposures

Information about the Group and the parent entity's exposure to risk arising from borrowings is provided in note35.

47





25 ProvisionsConsolidated Parent

Note

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current provisions expected to besettled within 12 months

Employee benefits

Annual leave 45,730 43,805 42,568 41,162

Long service leave 24,949 24,323 24,208 23,705

Employment on-costs 718 853 718 853

Deferred government benefits forsuperannuation2 37(d) 81,607 55,743 81,607 55,743

Workers compensation 710 1,494 716 1,069

Other 11,173 10,931 11,173 10,992

Subtotal 164,887 137,149 160,990 133,524

Current provisions expected to besettled after more than 12 months

Employee benefits

Annual leave 8,470 8,939 8,406 8,879


Subtotal 138,501 133,838 135,419 131,026

Total current provisions 303,388 270,987 296,409 264,550

Non-current provisions

Employee benefits


Deferred non-governmentbenefits for superannuation1 37(d) 9,578 4,173 9,578 4,173

Deferred government benefitsfor superannuation2 37(d) 1,406,601 1,429,648 1,406,601 1,429,648

Workers compensation 6,074 6,174 6,074 6,174

Other 395 395 395 395

Total non-current provisions 1,452,799 1,469,323 1,450,255 1,467,144

Total provisions 1,756,187 1,740,310 1,746,664 1,731,694

1This relates to the net liabilities of the Professorial Superannuation Fund (refer to note 37(d))

2These amounts relate to the net liabilities of the SASS, SSS and SANCS superannuation schemes (refer to note 37(d)). Note thatthese amounts also include the net liabilities of UNSW Global Pty Ltd of $2,523,000 (2014: $2,439,000).

48





25 Provisions (continued)

(a) Movements in provisions

Movements in each class of provision during the financial year, other than employee benefits, are set out below:

Consolidated 2015

Workerscompensation

$'000

Other

$'000

Total

$'000

Carrying amount at start of year 7,668 11,326 18,994

Additional provisions recognised 471 342 813

Amounts used (833) - (833)

Unused amounts reversed (522) (100) (622)

Carrying amount at end of year 6,784 11,568 18,352

26 Other financial liabilitiesConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current

Forward foreign exchange contracts 451 447 436 447

Total current other financial liabilities 451 447 436 447

Non-current

Forward foreign exchange contracts 10 19 10 19

Total non-current other financial liabilities 10 19 10 19

Total other financial liabilities 461 466 446 466

Further information about forward foreign exchange contracts is provided in note 18.

49





27 Other liabilities

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Current

Income in advance1 90,413 79,842 48,768 50,289

Monies held from associatedparties 285 943 202 862

Other 10,187 8,904 2,571 3,742

Total current other liabilities 100,885 89,689 51,541 54,893

Non-current

Income in advance1 14,657 16,570 14,657 16,570

Other 4,641 5,981 4,641 5,530

Total non-current other liabilities 19,298 22,551 19,298 22,100

Total other liabilities 120,183 112,240 70,839 76,993

1Income in advance (current) includes research income of $31,819,000 (2014: $32,115,000), prepaid tuition fees of $45,042,000(2014: $32,242,000), the current portion of the rental income received in advance from the Children's Cancer Institute Australia forMedical Research (CCIA) of $1,862,000 (2014: $1,968,000), and the current portion of grant received in advance from the HealthAdministration Corporation (HAC) to fund the construction of the Australian Advanced Treatment Centre of $5,153,000 (2014:$6,525,000). Income in advance (non-current) represents the non-current portion of the rental income received in advance from theCCIA of $14,657,000 (2014: $16,570,000).

50





28 Reserves and retained earnings

(a) Reserves

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Reserves

Property, plant and equipmentrevaluation surplus 683,972 622,740 681,671 620,439

Available-for-sale financial assetsrevaluation surplus 67,888 86,445 61,729 79,502

Foreign currency translation reserve (526) (634) - -

Total reserves 751,334 708,551 743,400 699,941

Movements

Property, plant and equipmentrevaluation surplus


Revaluation of campus land 7,112 12,501 7,112 12,501

Revaluation of campus buildings 45,055 40,849 45,055 40,849

Revaluation of off-campus properties 9,035 10,129 9,035 10,129

Revaluation of rare books 54 (92) 54 (92)

Revaluation of works of art (104) (76) (104) (76)

Revaluation of leaseholdimprovements 335 1,336 335 1,336

Transfer to retained earnings (255) 40 (255) 40


Available-for-sale financial assetsrevaluation surplus


Gains/(losses) on revaluation (11,570) 10,585 (11,209) 10,592

Transfer to income statement (6,987) (20,730) (6,564) (20,435)


Foreign currency translation reserve

Opening balance at 1 January (634) (674) - -

Exchange differences on translation offoreign operations 108 40 - -

Closing balance at 31 December (526) (634) - -

Total reserves 751,334 708,551 743,400 699,941

51





28 Reserves and retained earnings (continued)

(b) Retained earningsConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Opening balance at 1 January 1,573,939 1,462,348 1,560,511 1,452,657

Net result for the period 77,504 130,050 74,803 125,498

Actuarial gains/(losses) on definedbenefit superannuation plans (7,165) (18,419) (7,159) (17,604)

Transfer from reserves 255 (40) 255 (40)

Closing balance at 31 December 1,644,533 1,573,939 1,628,410 1,560,511

(c) Nature and purpose of reserves

(i) Property, plant and equipment revaluation surplusThe property, plant and equipment revaluation reserve is used to record increments and decrements on therevaluation of non-current assets, as described in note 1(s).

(ii) Available-for-sale financial assets revaluation surplusChanges in the fair value and exchange differences arising on translation of investments classified as available-for-sale financial assets are taken to the available-for-sale financial assets revaluation surplus, as described innote 1(o). Amounts are recognised in the income statement when the associated assets are sold or impaired.

(iii) Foreign currency translation reserveExchange differences arising on translation of the foreign controlled entities are taken to the foreign currencytranslation reserve, as described in note 1(f). The reserve is recognised in the income statement when the netinvestment is disposed.

52





29 Key management personnel disclosures

(a) Council Members

The following persons were responsible persons and executive officers of the parent entity during the financialyear:

(i) Official Council Members

Mr David M. Gonski, AC, Chancellor

Professor Ian Jacobs, President and Vice-Chancellor (commenced 2 February 2015)

Professor Prem Ramburuth, President of the Academic Board

(ii) Ministerial Appointments

Ms Jillian S. Segal, AM, Deputy Chancellor

Mr Brian Long, Pro-Chancellor

(iii) Elected Council Members

Associate Professor Dorottya Fabian

Scientia Professor John Piggott

Mr Aaron Magner

Mr Billy Bruffey

Ms Emma Lovell

(iv) Council-appointed Members

Dr Jennifer Alexander, Pro-Chancellor

Ms Maxine Brenner

Mr Nicholas Carney

Mr Matthew T. Grounds

Mr Warwick Negus

(v) Council Members' term of office completed in 2015

Professor Frederick G. Hilmer, AO (resigned 31 January 2015)

(b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activitiesof the Group, directly or indirectly, during the financial year:

Professor Les D. Field, AM Vice-President and Deputy Vice-Chancellor (Research)

Professor Iain Martin Vice-President and Deputy Vice-Chancellor (Academic)

Mr Peter Noble Vice-President and Chief of Staff (commenced 2 February 2015)

Mr Andrew Walters Vice-President, Finance and Operations and Chief Financial Officer(commenced 1 August 2015)

Ms Jennie Lang Vice-President, Advancement

Mr Neil D. Morris Vice-President, Campus Life and Community Engagement

Mr David Ward Vice-President, Human Resources (commenced 15 June 2015)

Executive Officers' term of office completed in 2015:

Mr Stephen Rees Acting Vice-President, Finance and Operations and Chief FinancialOfficer (acting role ceased 1 August 2015)

Professor Merlin Crossley Dean, Faculty of Science (membership ceased 14 June 2015)

Professor David Dixon Dean, Faculty of Law (membership ceased 14 June 2015)

53





29 Key management personnel disclosures (continued)

(c) Remuneration of Council Members and executivesConsolidated Parent

2015 2014 2015 2014

Remuneration of Council Members

Nil 10 14 10 14

$90,000 to $104,999 - 1 - 1

$170,000 to $184,999 1 1 1 1

$200,000 to $214,999 - 1 - 1

$225,000 to $239,999 1 - 1 -

$285,000 to $299,999 - 1 - 1

$300,000 to $314,999 1 - 1 -

$345,000 to $359,999 - 1 - 1

$375,000 to $389,999 1 - 1 -

$420,000 to $434,999 1 - 1 -

$450,000 to $464,999 - 1 - 1

$980,000 to $994,999 - 1 - 1

$1,010,000 to $1,024,999 1 - 1 -

Total 16 21 16 21

In 2015, the Council consists of 15 members (2014: 15 members). Council members include the Group'semployees who may be ex-officio members or elected staff members. No Council member (includingChancellor and Deputy Chancellor) has received any remuneration in his/her capacity as a Council member.

Council members may also be executive officers of the parent entity. Where this is the case they have beenincluded in the remuneration above but excluded from the remuneration band of the executive officers.

There were six Council members (2014: seven) who received remuneration as employees of the parent entity.

There were ten Council members (2014: fourteen) who did not receive remuneration as employees of theparent entity.

Consolidated Parent

2015 2014 2015 2014

Remuneration of executive officers

$145,000 to $159,999 1 - 1 -

$170,000 to $184,999 1 - 1 -

$200,000 to $214,999 1 - 1 -

$230,000 to $244,999 2 1 2 1

$245,000 to $259,999 1 - 1 -

$360,000 to $374,999 - 1 - 1

$380,000 to $394,999 1 1 1 1

$420,000 to $434,999 - 1 - 1

$440,000 to $454,999 1 1 1 1

$455,000 to $469,999 1 1 1 1

$550,000 to $564,999 - 1 - 1

$610,000 to $624,999 1 - 1 -

$640,000 to $654,999 - 1 - 1

Total 10 8 10 8

54





29 Key management personnel disclosures (continued)

(d) Key management personnel compensation

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Short-term employee benefits 4,920 5,275 4,920 5,275

Post-employment benefits 624 609 624 609

Termination benefits 199 248 199 248

Total 5,743 6,132 5,743 6,132

30 Remuneration of auditors

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

(a) Audit of the financial statements

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Audit Office of NSW

Audit of financial statements 708 713 405 405

Audit of subsidiaries' financialstatements paid by parent entity 69 74 69 74

Other audit firms 158 119 - -

Total 935 906 474 479

(b) Other audit and assurance servicesAudit Office of NSW 25 26 25 26

Total 960 932 499 505

55





31 Contingencies

(a) Contingent liabilities

GuaranteesThe parent entity has a bank guarantee of $650,000 issued by the ANZ Banking Group in favour of HarinaCompany Limited for the lease of premises at 1 O'Connell Street, Sydney.

UNSW Global Pty Ltd has a bank guarantee of $583,000 issued by the ANZ Banking Group as a rental bond inrelation to student accommodation at 159-171 Anzac Parade, Kensington and this will expire on 11 June 2020.

The parent entity has a bank guarantee of $260,000 issued by the ANZ Banking Group in connection with anATA Carnet for the temporary admission of goods. This bank guarantee is for the life of the Carnet for which itwas issued and will continue until the Carnet has actually been acquitted by the issuing Body or the relevantNational Guaranteeing Organisation.

The parent entity is a licensed self-insurer for workers compensation in New South Wales (NSW) and theAustralian Capital Territory (ACT). In NSW the licence is issued under Division 5 of Part 7 of the WorkersCompensation Act 1987 and under Chapter 8, Part 8.1 of the ACT Workers Compensation Act 1951. Inaccordance with both licences the Group has the following bank guarantees:

(i) $2,928,000 with the ANZ Banking Group in favour of WorkCover New South Wales,

(ii) $750,000 with the ANZ Banking Group in favour of the Default Insurance Fund.

Letters of CommitmentThe parent entity has issued letters of commitment to controlled entities to ensure that those entities are able tomeet their debts when they become due. The total of letters of commitment for parent in 2015 is $11,750,000(2014: $11,550,000).

LitigationsThe Group is subject to a number of legal claims and associated potential liabilities, which arise from theactivities of the Group in the ordinary course of business, none of which are individually significant. Additionally,there are a number of legal claims against the Group, which cannot be quantified at this stage and for which noprovision is included.

56





32 Commitments

(a) Capital commitments

Capital expenditure contracted for at the balance sheet date but not recognised as liabilities are as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Property, plant and equipment

Within one year 136,610 65,275 136,610 65,275

Later than one year but not later than fiveyears 18,765 4,371 18,765 4,371

Total 155,375 69,646 155,375 69,646

(b) Lease commitments

Commitments for minimum lease payments in relation to non-cancellable operating leases which are notrecognised in the financial statements are as follows:

Consolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Within one year 9,031 8,294 3,832 2,956

Later than one year but not later than fiveyears 27,550 27,630 10,454 8,069


Total future minimum lease payments 44,316 49,779 21,710 21,603

Total commitments 199,691 119,425 177,085 91,249

Applicable GST recoverable fromthe Taxation Authority 19,840 11,572 17,638 8,863

57





33 Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries inaccordance with the accounting policy described in note 1(b).

Ownership interest

Name of EntityPrincipal place of

business

2015

%

2014

%

NewSouth Innovations Pty Limited Australia 100 100

- Cystemix Pty Ltd Australia 100 100

Qucor Pty Ltd1 Australia 60 60

UNSW Global Pty Ltd Australia 100 100

- UNSW Global (Singapore) Pte Limited Singapore 100 100

- UNSW Global India Pvt Limited2 India 100 100

- NewSouth Global (Thailand) Ltd3 Thailand - 49

- Australian Education Consultancy Ltd Hong Kong 100 100

UNSW (Hong Kong) Ltd Hong Kong 100 100

The University of New South WalesFoundation Ltd Australia 100 100

- as Trustee for the University of NewSouth Wales Foundation Australia 100 100

- as Trustee for the New South WalesMinerals Industry/University of NewSouth Wales Education Trust Australia 100 100

UNSW Hong Kong Foundation Limited Hong Kong 100 100

UNSW & Study Abroad - Friends andUS Alumni, Inc USA 100 100

UK Friends of UNSW Australia UK 100 100

University of New South Wales PressLtd Australia 100 100

Scientia Clinical Research Limited4 Australia 100 -

AGSM Ltd5 Australia - 100

1Ownership split: 30% UNSW, 30% NewSouth Innovations Pty Ltd, 40% held for the benefit of the Researchers.

2Ownership split: 99.6% UNSW Global Pty Ltd, 0.4% Australian Education Consultancy Ltd. The Board resolved to place thecompany in a dormant stage from 31 October 2013.

3The company applied for dissolution in December 2013 and completed the liquidation and deregistration on 9 February 2015.

4Incorporated on 21 July 2015.

5The Board resolved on 26 November 2013 to liquidate the company. The company completed the liquidation in June 2015 and

was formally deregistered on 25 November 2015.

58





34 Reconciliation of net result after income tax to net cash provided by operating activitiesConsolidated Parent

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Net result for the period 77,504 130,050 74,803 125,498

Depreciation and amortisation 143,763 135,230 141,546 133,338

Write-down on investments to recoverableamount 178 23 - -

Write-down/(reversal) on property, plant andequipment and intangible assets 14,288 1,091 12,961 (148)

Net losses on disposal of property, plantand equipment 392 531 321 373

Net gains on sale of investments (6,569) (23,373) (5,521) (21,210)

Other non-cash items (162) (365) (136) (365)

Share of (profit)/loss of associates and jointventures not received as dividends ordistributions (2,903) (6,725) - -

226,491 236,462 223,974 237,486

Change in operating assets and liabilities

(Increase)/decrease in sundry and studentdebtors 1,604 (4,576) (9,831) (12,146)

(Increase)/decrease in investment incomereceivable (2,269) (1,653) (2,268) (1,654)

(Increase)/decrease in accrued income 6,129 (4,482) 6,108 (4,363)

(Increase)/decrease in inventories 9 (72) - -

(Increase)/decrease in sundry advances (41) 258 (27) 261

(Increase) in payments in advance (4,141) (5,525) (3,957) (5,670)

(Increase)/decrease in other assets 1,036 (2,280) 1,032 (2,281)

Increase/(decrease) in deferredsuperannuation 4,564 (18,708) 4,570 (17,899)

Increase/(decrease) in trade and otherpayables (1,318) 16,024 (2,879) 14,464

Increase/(decrease) in income in advance 8,658 4,661 (3,434) (4,094)

Increase/(decrease) in other liabilities (612) 2,593 (2,740) 1,445

Increase in provisions 7,655 26,582 6,748 25,904

21,274 12,822 (6,678) (6,033)

Net cash provided by operating activities 247,765 249,284 217,296 231,453

59





35 Financial risk management

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

Financial risk management is governed by the UNSW Treasury Policy and managed by the UNSW Treasury andInvestment Services (UNSW Treasury). The UNSW Investment Policy is conformed to the UNSW Treasury Policy forfinancial risk management purposes.

The Policy specifically covers:

Foreign exchange risk

Interest rate risk

Credit risk

Liquidity risk

The Group uses different methods to measure different types of risk to which it is exposed at the reporting date. Thesemethods include foreign exchange exposure analysis, sensitivity analyses (foreign exchange, price and interest raterisks); approved counterparty limits linked to credit ratings for financial institution credit risk; and ageing analysis fornon-financial institution credit risk.

UNSW Treasury Policy prohibits the Group from engaging in any speculative trading in derivative instruments.Derivative instruments are entered into for the purposes of managing financial risk, such as foreign exchange risk. Thefinancial instruments used for foreign exchange risk management are spot and forward foreign exchange contracts.

(a) Market risk

(i) Foreign exchange risk

Foreign exchange risk refers to the risk that the value of a financial commitment, recognised financial asset orfinancial liability will fluctuate due to changes in foreign currency rates.

The Group and the parent entity operate internationally and are exposed to foreign exchange risk arising fromcommitted transactions such as research grants, expenditure to which the Group is bound or will imminentlyincur, and financial assets and financial liabilities which have been recognised in the accounts. The economicexposure to foreign exchange risk is minimised by entering derivative transactions in foreign exchange markets.The major currency to which the Group is exposed is the US Dollar (USD).

The group companies are required to fully hedge the foreign exchange risk exposure arising from foreigncurrency denominated borrowings. Any exception to this requires approval by the Director of Finance.

The sensitivity analysis below shows the effect on the post-tax net result and equity as at balance sheet datehad the Australian dollar weakened/strengthened by 11.7% against the US dollar (2014: 8.5%) at that date withall other variables held constant.

The method used to arrive at the possible risk percentages is based on both statistical and non-statisticalanalyses. The statistical analysis is based on currency movements for the last twelve months. This informationis then reviewed and if necessary adjusted for reasonableness under current economic circumstances.

60





35 Financial risk management (continued)

(a) Market risk (continued)

The carrying amounts of the Group’s and the parent entity's financial instruments that are exposed to foreigncurrency risk are primarily denominated in US dollars, as set out below:

2015

A$'000

2014

A$'000

Consolidated

Cash at bank and on hand 3,606 542

Sundry debtors 2,051 942

Sundry creditors (177) (924)

Accruals (241) -

Forward foreign exchange contracts

- sell foreign currency 4,715 4,641

- buy foreign currency 21,459 21,077

Parent

Cash at bank and on hand 3,386 466

Sundry debtors 2,051 684

Sundry creditors (177) (896)

Accruals (241) -


- sell foreign currency 4,715 4,641

- buy foreign currency 20,790 20,661

(ii) Price risk

Price risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate becauseof changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whetherthose changes are caused by factors specific to the individual financial instruments or its issuer, or factorsaffecting all similar financial instruments traded in the market.

The Group and the parent entity are exposed to securities price risk arising from available-for-sale investmentson the statement of financial position. Neither the Group nor the parent entity is exposed to commodity pricerisk.

61







The Group maintains investment portfolios characterised as short term, long term, and endowment. Theinvestment portfolios are governed by the UNSW Investment Policy and managed by the UNSW Treasury andInvestment Services (UNSW Treasury) who report to the Investment Sub Committee. The investment objectiveof the short term, long term and endowment investment portfolios are determined by the Investment SubCommittee giving consideration to primary and secondary objectives of each portfolio, risk appetite andinvestment time frame.

UNSW Investment Policy sets out the acceptable risk parameters for the portfolios. Risk parameters for theshort term portfolio include a maturity of no greater than two years for any investment, limiting the impact of anychange in interest rates, and approved counterparty limits linked to credit ratings. Risk parameters of the longterm portfolios set by the UNSW Investment Policy include asset allocation and portfolio re-balancingrequirements. Portfolio performance is reported to the Finance Committee.

The Investment Sub Committee of the Finance Committee meets periodically to review portfolio performance,fund manager selection, asset allocation, and other high level investment policy issues (for example the choiceof benchmarks and objectives of the investment portfolios), and to make recommendations on any proposedchanges to the UNSW Investment Policy.

The method used to arrive at the possible risk of 12% (2014: 7.7%) is based on both statistical and non-statistical analyses. The statistical analysis is based on an observed range of actual historical price data forcomparable indices for the last twelve months. This information is then reviewed and if necessary adjusted forreasonableness under current economic circumstances.

(iii) Cash flow and fair value interest rate risk

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with theinstrument will fluctuate due to changes in market interest rates.

The Group and the parent entity are exposed to interest rate risk predominantly from holding cash and cashequivalents, and interest bearing borrowings. Financial instruments issued at variable rates give exposure tocash flow interest rate risk. Financial instruments issued at fixed rates and carried at fair value expose theGroup to fair value interest rate risk.

As a result of obtaining committed 5 year debt facilities (refer Note 24(b)) UNSW has adopted an interest ratehedging strategy in accordance with UNSW Treasury Policy. No interest rate hedging has been transacted.During 2015 and 2014, the Group's borrowings at variable rates were denominated in Australian Dollars.

Following a review of the consensus forecast of the Reserve Bank of Australia (RBA) cash rate for 2015 byprivate sector economists published by Bloomberg, a 50 basis point change (2014: 50 basis point change) isdeemed to be reasonably likely and is used for reporting interest rate risk.

62







(iv) Summarised sensitivity analysisThe following table summarises the sensitivity of the Group's and the parent entity's financial assets andfinancial liabilities to foreign exchange risk, price risk and interest rate risk.

Consolidated

31 December 2015 Foreign exchange risk Price risk Interest rate risk

-11.7% USD +11.7% USD -12% +12% -0.5% +0.5%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets

Cash at bank and on hand 90,221 477 - (377) - - - - - (451) - 451 -

Deposit at call andinvestments originallymaturing within three months 127,518 - - - - - - - - (638) - 638 -

Sundry debtors 36,441 271 - (214) - - - - - - - - -

Unlisted unit trusts 438,091 - - - - - (52,571) - 52,571 - - - -

Listed equities 6 - - - - - - - - - - - -

Unlisted equities 11,402 - - - - - (1,368) - 1,368 - - - -

Forward foreign exchangecontracts 544 (1,652) - 2,093 - - - - - - - - -

Financial liabilities

Sundry creditors 44,262 (23) - 19 - - - - - - - - -

Accrued expenses 37,135 (32) - 25 - - - - - - - - -

Forward foreign exchangecontracts 461 (129) - 164 - - - - - - - - -

Total increase/(decrease) (1,088) - 1,710 - - (53,939) - 53,939 (1,089) - 1,089 -

Consolidated


-8.5% USD +8.5% USD -7.7% +7.7% -0.5% +0.5%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets


Deposit at call andinvestment originally maturingwithin three months 45,128 - - - - - - - - (226) - 226 -

Sundry debtors 25,954 87 - (73) - - - - - - - - -


Listed equities 9 - - - - - - - - - - - -

Unlisted equities 6,987 - - - - - (538) - 538 - - - -

Forward foreign exchangecontracts 1,450 1,870 - (1,578) - - - - - - - - -



Accrued expenses 51,484 - - - - - - - - - - - -


Total increase/(decrease) 1,584 - (1,336) - - (34,045) - 34,045 (508) - 508 -

63






(a) Market risk (continued)Parent


-11.7% USD +11.7% USD -12% +12% -0.5% +0.5%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets



Sundry debtors 29,471 271 - (214) - - - - - - - - -


Unlisted equities 9,198 - - - - - (1,104) - 1,104 - - - -

Forward foreign exchangecontracts 544 (1,652) - 2,093 - - - - - - - - -



Accrued expenses 30,872 (32) - 25 - - - - - - - - -

Forward foreign exchangecontacts 446 (59) - 75 - - - - - - - - -

Total increase/(decrease) (1,047) - 1,644 - - (52,730) - 52,730 (645) - 645 -

Parent


-8.5% USD +8.5% USD -7.7% +7.7% -0.5% +0.5%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets



Sundry debtors 20,424 63 - (53) - - - - - - - - -


Unlisted equities 4,853 - - - - - (374) - 374 - - - -

Forward foreign exchangecontracts 1,450 1,833 - (1,546) - - - - - - - - -



Accrued expenses 46,595 - - - - - - - - - - - -


Total increase/(decrease) 1,518 - (1,280) - - (33,201) - 33,201 (194) - 194 -

64






(b) Credit risk

Credit risk is the risk that a counterparty will cause a financial loss for the Group by not fulfilling its contractualobligations.

The Group and the parent entity are exposed to credit risk arising from its dealings with financial institutions forholdings of cash and cash equivalents, derivative financial instruments, fixed interest investments and deposits,interest bearing investments classified as held to maturity and classified as available for sale. Non-financialinstitution credit risk arises from credit exposures to customers, including outstanding receivables andcommitted transactions.

Credit exposures arising from the UNSW's investment activities other than cash are outside the scope ofUNSW Treasury Policy. Exposures to individual cash investments and classes of cash investments withfinancial institutions are included in the calculation of UNSW's maximum credit exposures.

Credit risk arising from cash and cash equivalents, derivative financial instruments and deposits with financialinstitutions is managed by UNSW Treasury on a Group basis. The maximum permitted credit exposure to anyfinancial institution is determined on that financial institution’s current external credit rating issued by one of thecredit rating agencies, Standard and Poor’s (S&P), Moody's Investors Service (Moody's) or Fitch Ratings(Fitch). Counterparties holding ratings from more than one rating agency will have their limit determined byreference to the lowest rating held.

The Group's practise is to spread the net credit exposure among major financial institutions with short-termratings of A2/P2/F2 or above. The net exposure and the credit ratings of financial institution counterparties arecontinuously monitored and the aggregate value of transactions is spread among approved counterparties. Thecounterparties to the financial instruments are major Australian and international financial institutions.

The carrying amounts of financial assets recognised in the statement of financial position are disclosed in moredetail in notes 15, 16 and 18. This amount best represents the consolidated entity’s maximum exposure tocredit risk at the reporting date. In respect to those financial assets and the credit risk embodied within them,the consolidated entity holds no significant collateral as security and there are no other significant creditenhancements in respect of these assets. The credit quality of all financial assets that are neither past due norimpaired is in accordance with the Treasury Policy and is consistently monitored in order to identify anypotential adverse changes in the credit quality. There are no significant financial assets that have hadrenegotiated terms that would otherwise, without that renegotiation, have been past due or impaired.

(c) Liquidity risk

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

Prudent liquidity risk management includes the continuing availability of Commonwealth government funding,maintaining sufficient cash and marketable securities to meet short term needs, and the ability to close outmarket positions. Daily monitoring of cash flow is carried out by UNSW Treasury to ensure there is adequateliquidity to meet the Group’s expected obligations over the near term.

The Group and the parent entity held cash and cash equivalents of $217,739,000 and $128,933,000,respectively as at 31 December 2015 (2014: $101,499,000 and $38,710,000 respectively), which includedeposits at call of $127,518,000 and $69,518,000, respectively (2014: $45,128,000 and $5,128,000respectively), that are expected to readily generate cash inflows for managing liquidity risk.

The average interest rate of cash at bank was 2.13% (2014: 2.41%) per annum.

The tables below analyse the Group’s and the parent entity's financial liabilities into relevant maturity groupingsbased on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed inthe table are the contractual undiscounted cash flows, which may not reconcile to the statement of financialposition. For forward foreign exchange contracts the cash flows have been estimated using spot ratesapplicable at the reporting date.

65






(c) Liquidity risk (continued)Within 1 year 1 - 5 years 5+ years Total

2015

$'000

2014

$'000

2015

$'000

2014

$'000

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Consolidated

Sundry creditors 44,262 33,896 - - - - 44,262 33,896

Accrued expenses 37,135 51,484 - - - - 37,135 51,484

Monies held from associated parties 285 943 - - - - 285 943

Financing arrangement 3,202 3,108 13,796 13,395 47,684 51,288 64,682 67,791


- (inflow) (42,255) (36,144) (541) (1,250) - - (42,796) (37,394)

- outflow 42,412 35,314 506 1,200 - - 42,918 36,514

Total financial liabilities 85,041 88,601 13,761 13,345 47,684 51,288 146,486 153,234

Within 1 year 1 - 5 years 5+ years Total

2015

$'000

2014

$'000

2015

$'000

2014

$'000

2015

$'000

2014

$'000

2015

$'000

2014

$'000

Parent

Sundry creditors 38,407 29,233 - - - - 38,407 29,233

Accrued expenses 30,872 46,595 - - - - 30,872 46,595

Monies held from associated parties 202 862 - - - - 202 862

Financing arrangement 3,202 3,108 13,796 13,395 47,684 51,288 64,682 67,791


- (inflow) (41,586) (35,729) (541) (1,250) - - (42,127) (36,979)

- outflow 41,729 34,921 506 1,200 - - 42,235 36,121

Total financial liabilities 72,826 78,990 13,761 13,345 47,684 51,288 134,271 143,623

36 Fair value measurements

(a) Fair value measurements

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement orfor disclosure purposes.

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



Investment properties

Land and buildings (campus land, campus buildings, off-campus properties and leasehold

improvements)

Works of art

Rare books

Fair value measurement of non-financial assets is based on the highest and best use of the asset.

66





36 Fair value measurements (continued)

(b) Fair value hierarchy

The Group categorises assets and liabilities measured at fair value into a hierarchy based on the level of inputsused in measurements.

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

Level 2 inputs other than quoted prices included within Level 1 that are observable for the assetor 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 31December 2015.

Fair value measurements at 31 December 2015

Consolidated Note

Total

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000

Recurring fair value measurementsFinancial assets

Available-for-sale financial assets 18

Unlisted unit trusts 438,091 - 438,091 -


Unlisted equities 11,402 - 2,204 9,198

Other 142 142 - -

Derivatives financial instruments 18

Forward foreign exchange contracts 544 - 544 -

Total financial assets 450,185 148 440,839 9,198

Non-financial assets

Investment properties 19 8,851 - 8,851 -

Land and buildings 20

Campus land 278,416 - 278,416 -

Off-campus properties 209,404 - 209,404 -

Campus buildings 1,413,890 - - 1,413,890

Leasehold improvements 12,238 - - 12,238

Works of art 20 5,099 - 5,099 -

Rare books 20 11,949 - 11,949 -

Total non-financial assets 1,939,847 - 513,719 1,426,128


Derivatives financial instruments 26


Total liabilities 461 - 461 -

67






(b) Fair value hierarchy (continued)Fair value measurements at 31 December 2014

Consolidated Note

Total

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000

Recurring fair value measurements

Financial assets




Unlisted equities 6,987 - 2,134 4,853

Derivative financial instruments 18

Forward foreign exchange contracts 1,450 - 1,450 -





Campus land 271,304 - 271,304 -

Off-campus buildings 182,133 - 182,133 -



Works of art 20 5,161 - 5,161 -

Rare books 20 11,895 - 11,895 -







Parent Note

Total

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000




Unlisted equities 9,198 - - 9,198

Other 142 142 - -




68






(b) Fair value hierarchy (continued)

Parent Note

Total

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000




Campus land 278,416 - 278,416 -




Works of art 20 5,094 - 5,094 -

Rare books 20 11,949 - 11,949 -







Parent Note

Total

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000




Unlisted equities 4,853 - - 4,853


Forward foreign exchange contracts 1,450 - 1,450 -

Total financial assets 432,626 - 427,773 4,853




Campus land 271,304 - 271,304 -




Works of art 20 5,156 - 5,156 -

Rare books 20 11,895 - 11,895 -






There were no transfers between fair value hierarchy levels during the year.

UNSW's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of thereporting period.

69






(b) Fair value hierarchy (continued)(ii) Disclosed fair values

The Group has a number of assets and liabilities which are not measured at fair value, but for which fair valuesare disclosed in the notes.

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, andavailable-for-sale listed securities) are based on quoted market prices on the Australian Securities Exchangefor identical assets or liabilities, at the balance sheet date, unless otherwise stated. The quoted market priceused for financial assets held by the Group is the current bid price, which is the most representative of fair valuein the circumstances. These instruments are included in level 1.

The carrying value less any impairment provision of short term financial assets, current receivables andpayables are assumed to approximate their fair values due to their short term nature.

The fair value of current borrowings approximates the carrying amount, as the impact of discounting is notsignificant (level 2). The carrying amounts of non-current borrowings at balance sheet date are approximate totheir fair value. The fair values of the financing arrangement are based on cash flows discounted at theborrowing rate of 6% (level 2).

(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 (for example, over-the-counterderivatives) are determined using valuation techniques. These valuation techniques maximise the use ofobservable market data where it is available and rely as little as possible on entity specific estimates. If allsignificant inputs required to fair value an instrument are observable, the instrument is included in level 2. Thisis the case for unlisted unit trusts.

If one or more of the significant inputs is not based on observable market data, the instrument is included inlevel 3. This is the case for some unlisted equities.

The Group uses a variety of methods and makes assumptions that are based on market conditions existing ateach balance date. Specific valuation techniques used to value financial instruments include:

the use of quoted market prices or dealer quotes for similar instruments;

quoted market bid prices declared by fund managers are used to estimate fair value for unlisted unit

trusts;

the fair value of forward foreign exchange contracts is determined using forward exchange rates at the

balance sheet date; and

other techniques, such as discounted cash flow analysis, are used to determined fair value for the

remaining financial instruments.

All of resulting fair value estimates are included in level 2 except for some unlisted equities, explained in (d)below.

The level in the fair value hierarchy is determined on the basis of the lowest level input that is significant to themeasurement in its entirety.

Campus land, campus buildings, off-campus properties, leasehold improvements, investment properties, worksof art and rare books are valued independently each year. At the end of each reporting period, the Groupupdates their assessment of the fair value of each item, taking into account the most recent independentvaluations.

The best evidence of fair value is current prices in an active market for similar properties. Where suchinformation is not available, the valuer considers information from a variety of sources including:

current prices in an active market for properties of a different nature or recent prices of similar properties

in less active markets, adjusted to reflect those differences; and

multiples derived from prices in observed transactions involving comparable buildings in similar locations

(e.g. price per square metre).

70






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

All resulting fair value estimates for properties are included in level 2 except for campus buildings and leaseholdimprovements.

Campus buildings and leasehold improvements are valued using the depreciated replacement cost (DRC)approach. These buildings are considered specialised assets for which there is no active secondary market. Assuch, the resulting fair value estimates are included in level 3.

(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 2015 and 2014.

Consolidated

Level 3 Fair Value Measurements 2015

Campusbuildings

$'000

Leaseholdimprovements

$'000

Unlistedequities

$'000

Total

$'000

Opening balance at 1 January 1,242,178 13,112 4,853 1,260,143

Additions - 60 - 60

Transfers from Work in progress 226,508 58 - 226,566

Foreign exchange differences - 12 - 12

Revaluation 45,055 335 - 45,390

Depreciation (99,851) (1,339) - (101,190)

Net gains in other comprehensive income - - 4,345 4,345

Closing balance at 31 December 1,413,890 12,238 9,198 1,435,326


Opening balance - - 4,009 4,009

Net gains in other comprehensive income - - 844 844

Transfers from level 2 1,242,178 13,112 - 1,255,290

Closing balance 1,242,178 13,112 4,853 1,260,143

Parent


Opening balance 1 January 1,240,192 12,988 4,853 1,258,033

Transfers from Work in progress 222,591 58 - 222,649

Revaluation 45,055 335 - 45,390

Depreciation (99,147) (1,218) - (100,365)

Net gains in other comprehensive income - - 4,345 4,345

Closing balance at 31 December 1,408,691 12,163 9,198 1,430,052

Level 3 Fair Value Measurement 2014

Opening balance - - 4,009 4,009

Adoption of AASB13 - - 844 844

Transfers from level 2 1,240,192 12,988 - 1,253,180

Closing balance 1,240,192 12,988 4,853 1,258,033

(i) Transfers between levels 2 and 3 and changes in valuation techniques

There have been no transfers between levels in 2015.

71






(d) Fair value measurements using significant unobservable inputs (level 3) (continued)

(ii) Valuation inputs and relationships to fair value

The following table summarises the quantitative information about the significant unobservable inputs used inlevel 3 fair value measurements. See (c) above for the valuation techniques adopted.

Description Consolidated2015

$'000

Fair value

Parent2015

$'000

Fair value

Unobservableinputs1

Rangeof inputs

Relationship of unobservableinputs to fair value

Unlistedequities 11,402 9,198 Discount rate 30%

The higher the discount rate, thelower the value

1There were no significant inter-relationships between unobservable inputs that materially affect fair value.

(iii) Valuation processes

UNSW engages qualified external valuers to provide a valuation of the Group's unlisted equities at the end ofevery financial year.

72





37 Defined benefit plans

All employees of the Group are entitled to benefits from the Group's superannuation plan on retirement, disability ordeath. The Group's superannuation plan has defined benefits sections and defined contribution sections. The definedbenefit sections provide lump sum benefits based on years of service and final average salary. The definedcontribution section receives fixed contributions and the Group's legal or constructive obligation is limited to thesecontributions.

The following sets out details in respect of the parent entity defined benefit section only.

(a) Fund specific disclosure

(i) Nature of the benefits provided by the fund

State schemes (SSS, SANCS, SASS)The Schemes are closed to new members and provide active members with defined benefits. The Pooled Fundholds in trust, the investments of the closed NSW public sector superannuation schemes.

- State Superannuation Scheme (SSS)- State Authorities Non-Contributory Superannuation Scheme (SANCS)- State Authorities Superannuation Scheme (SASS)

The above schemes are all defined benefit schemes or at least a component of the final benefit is derived froma multiple of a members salary and years of membership. All schemes are closed to new members.

The Professorial Superannuation FundThe Fund is closed to new members and provides active members with a combination of accumulation benefitsand defined benefits based on professorial salary levels. Pensioner members receive pension payments fromthe Fund based on professorial salary levels.

(ii) Description of the regulatory framework

State schemes (SSS, SANCS, SASS)The schemes in the Pooled Fund are established and governed by the following NSW legislation:

- Superannuation Act 1916- State Authorities Superannuation Act 1987- Police Regulation (Superannuation) Act 1906- State Authorities Non-Contributory Superannuation Scheme Act 1987and their associated regulations.

The schemes in the Pooled Fund are exempt public sector superannuation schemes under the CommonwealthSuperannuation Industry (Supervision) Act 1993 (SIS). The SIS legislation treats exempt public sectorsuperannuation funds as complying funds for concessional taxation and superannuation guarantee purposes.

Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that thePooled Fund will conform to the principles of Commonwealth's retirement incomes policy relating topreservation, vesting and reporting to members and that those members' benefits are adequately protected.

The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Boardactivities in a manner consistent with the prudential controls of SIS legislation. These provisions are in additionto the other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board'sadherence to the principles of the Commonwealth's retirement incomes policy.

An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigationwas performed as at 30 June 2015.

Professorial Superannuation FundThe Fund is subject to the provisions of the Superannuation Industry (Supervision) Act 1993, the Income TaxAssessment Act 1997, and various other legislation and regulation applicable to Australian superannuationfunds. Any surplus Fund assets are subject to a limit of the asset ceiling. Under Superannuation Guaranteelaws, employers are required to make a minimum contribution of 9.5% of gross Ordinary Times Earnings into afund for active members or to provide a minimum level of defined benefit.

73





37 Defined benefit plans (continued)

(iii) Description of other entities' responsibilities for the governance of the funds

State Schemes (SSS, SANCS, SASS)The Fund's Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to actsolely in the best interests of fund beneficiaries. The Trustee has the following roles:

- Administration of the Fund and payment to the beneficiaries from Fund assets when required in accordancewith the Fund rules;- Management and investment of the Fund assets; and - Compliance with other applicable regulations.

Professorial Superannuation FundThe Fund's Trustee is responsible for the prudential operation of the Fund and is required to act in the bestinterest of all members.

(iv) Description of risks

State Schemes (SSS, SANCS, SASS)There are a number of risks to which the Fund exposes the entity. The more significant risks relating to definedbenefits are:

- Investment risk - The risk that investment returns will be lower than assumed and the Group will need toincrease contributions to offset this shortfall.- Longevity risk - The risk that pensioners live longer than assumed.- Pension indexation risk - The risk that pensions will increase at a rate greater than assumed, increasing futurepensions.- Salary growth risk - The risk that wages or salaries (on which future benefit amounts for active members willbe based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiringadditional employer contributions.- Legislation risk - The risk that legislative changes could be made which increases the cost of providing thedefined benefits.

The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix.Each Fund has no significant concentration of investment risk or liquidity risk. The Trustees of the Fund are notaware of any asset and liability matching strategies currently adopted by the plans to manage risk.

Professorial Superannuation FundWhilst the Fund remains an ongoing arrangement the main risk to the Group is the need to make additionalcontributions to the Fund resulting from adverse investment experience, members and their spouses livinglonger than expected, salary increases being greater than expected and Fund expenses being greater thanexpected and allowed for in the recommended contribution rate.

(v) Description of any plan amendments, curtailments and settlements

State Schemes (SSS, SANCS, SASS)There were no amendments, curtailments or settlements during the year.

Professorial Superannuation FundThere were no amendments, curtailments or settlements during the year.

(vi) Funding arrangements

State Schemes (SSS, SANCS, SASS)Funding arrangements are reviewed at least every three years following the release of the triennial actuarialreview and were last reviewed following completion of the triennial review as at 30 June 2015. Contributionrates are set after discussions between the Group, SAS Trustee Corporation (STC) and NSW Treasury.Funding positions are reviewed annually and funding arrangements may be adjusted as required after eachannual review.

Refer to note 1a(i) for information on changes to Government funding for the State Schemes.

Professorial Superannuation FundIn the latest actuarial review as at 31 December 2015 it was recommended that the Parent will make nilcontributions to all defined benefit and pensioner members until 31 December 2016, subject to a further reviewin 2016.

74






(vii) Expected contributions

The Parent expects to make contributions estimated at $80,692,000 towards the SSS, SANCS and SASSSchemes to maintain a one year asset buffer level in the Scheme's reserves in the next financial year. TheParent expects to make a further $3,988,000 (2014: $4,561,000) contribution to the defined benefit plans.

(viii) Maturity profile

The weighted average duration of the State Schemes defined benefit obligation is 11.1 years to 12.8 years.

The weighted average duration of the Professorial Superannuation Fund defined benefit obligation is 8 years.

The expected maturity analysis of undiscounted benefit payments is as follows:

Less than 1year

$'000

Between 1and 2 years

$'000

Between 2and 5 years

$'000

Over 5years

$'000

Total

$'000

Defined benefit obligations - 31 December2015 (State Super) 80,692 81,570 240,809 1,354,782 1,757,853

Defined benefit obligations - 31 December2014 (State Super) 79,559 80,692 242,697 1,449,028 1,851,976

Defined benefit obligations - 31 December2015 (PSF) 4,636 4,506 12,494 20,547 42,183

Defined benefit obligations - 31 December2014 (PSF) 4,233 4,042 10,914 14,051 33,240

(b) Categories of plan assets

State Schemes (SSS, SANCS, SASS)

All Pooled Fund assets are invested by STC at arm's length through independent fund managers and assetsare not separately invested for each entity. As such, the disclosures below relate to total assets of the PooledFund.

The analysis of the plan assets as at 31 December 2015 is as follows:

$'000

Total

Quoted pricesin active markets

for identical assetsLevel 1

Significantobservable

inputsLevel 2

Unobservableinputs

Level 3

Assets category

Short term securities 2,978,554 2,943,012 35,542 -

Australian fixed interest 2,650,946 27,895 2,623,051 -

International fixed interest 828,608 (75) 828,683 -

Australian equities 9,512,077 9,057,851 446,022 8,204

International equities 12,451,510 9,268,278 2,180,440 1,002,792

Property 3,438,598 1,036,559 701,343 1,700,696

Alternatives 7,790,660 557,505 3,108,946 4,124,209

Total 39,650,953 22,891,025 9,924,027 6,835,901

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in this level are listed shares and listedunit trusts.Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in thislevel are cash, notes, government, semi-government and corporate bonds, unlisted trusts where quoted prices are availablein active markets for identical assets or liabilities.Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlistedproperty, unlisted shares, unlisted infrastructure, distressed debt and hedge funds.

The fair value of the Pooled Fund assets includes $179,000,000 (2014: $243,000,000) in NSW Governmentbonds.

75






(b) Categories of plan assets (continued)

Professorial Superannuation Fund

The analysis of the plan assets as at 31 December 2015 is as follows:

$'000

Total

Quoted pricesin active markets

for identical assetsLevel 1

Significantobservable

inputsLevel 2

Unobservableinputs

Level 3

Asset category

Cash and Cash Equivalents 1,848 1,848 - -

Equity instruments 22,377 22,377 - -

Debt securities 16,834 16,834 - -

Total 41,059 41,059 - -

Level 1 - quoted prices in active markets for identical assets or liabilities. The Fund's assets are invested in various portfolioswhere unit price changes occur on a daily basis. On this basis, it is not unreasonable to assume the Fund's assets are tradedin an active market.

The fair value of the plan assets does not include amounts relating to any of the controlling entity's ownfinancial instruments and any property occupied by, or other assets used by, the controlling entity.

(c) Actuarial assumptions and sensitivity

(i) Significant actuarial assumptions

The principal assumptions used for the purposes of the actuarial valuations were as follows (expressed asweighted averages):

2015

%

2014

%

State schemes (SSS, SANCS, SASS)

Discount rate 2.90 2.83

Expected rate(s) of salary inflation 3.00 to 3.50 2.70 to 4.00

Professorial Superannuation Fund

Discount rate 2.70 2.60

Expected rate(s) of salary inflation 3.00 3.00

76






(c) Actuarial assumptions and sensitivity (continued)

(ii) Sensitivity analysis

The sensitivity of the defined benefit obligation to change in the significant assumptions is as follows:

State schemes (SSS, SANCS, SASS)Change in

assumptionIncrease inassumption

Decrease inassumption

Discount rate 1.00% -9.95% 11.92%

Expected rate of salary inflation 0.50% 0.19% -0.18%

Professorial Superannuation FundChange in

assumptionIncrease inassumption

Decrease inassumption

Discount rate 0.50% -4.42% 4.75%

Expected rate of salary inflation 0.50% 4.75% -4.42%

The above sensitivity analyses are based on a change in an assumption while holding all the other assumptionsconstant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated.When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the samemethod has been applied as when calculating the defined benefit liability recognised in the statement offinancial position.

(d) Statement of financial position amountsAmounts recognised in thestatement of financialposition - 2015 Note

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Liabilities

Deferred non-governmentbenefits for superannuation 25 - - - 9,578 9,578

Deferred government benefitsfor superannuation 25 59,745 10,069 1,415,871 - 1,485,685

Deferred benefits forsuperannuation 59,745 10,069 1,415,871 9,578 1,495,263

Assets

Deferred governmentcontribution forsuperannuation1 16 (58,010) (10,249) (1,306,748) - (1,375,007)

Net liability/(asset)recognised in the statementof financial position 1,735 (180) 109,123 9,578 120,256

Net liability reconciliation -2015

Defined benefit obligation 105,631 16,638 1,506,933 50,636 1,679,838

Fair value of plan assets (45,886) (6,569) (91,062) (41,058) (184,575)

Net liability/deferred benefitsfor superannuation 25 59,745 10,069 1,415,871 9,578 1,495,263

Reimbursement right1 16 (58,010) (10,249) (1,306,748) - (1,375,007)

Total net liability/(asset) 1,735 (180) 109,123 9,578 120,256

77






(d) Statement of financial position amounts (continued)

Present value obligations -2015 Note

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Opening defined benefitobligation 98,813 17,917 1,516,619 48,009 1,681,358

Current service cost 3,098 701 1,076 294 5,169

Interest expense/(income) 2,684 479 41,728 1,245 46,136

Remeasurements

Actuarial losses/(gains)arising from changes indemographic assumptions 2,102 (192) 52,344 4,689 58,943

Actuarial losses/(gains)arising from changes infinancial assumptions (47) 4 (12,330) (407) (12,780)

Actuarial losses/(gains)arising from changes inexperience assumptions 6,367 (599) (23,995) 1,432 (16,795)

Contributions

From plan participants 1,205 - 905 - 2,110

Benefits paid (8,591) (1,673) (69,413) (4,626) (84,303)

Closing defined benefitobligation 105,631 16,637 1,506,934 50,636 1,679,838

Fair value of plan assets -2015

Opening fair value of planassets 77,727 7,670 64,999 43,836 194,232

Remeasurements

Actual return on plan assetsless interest income 1,338 19 129 768 2,254

Interest income 1,698 194 1,956 1,080 4,928

Contributions

Employers (27,490) 358 92,486 - 65,354

Plan participants 1,205 - 905 - 2,110

Benefits paid (8,591) (1,673) (69,413) (4,626) (84,303)

Closing fair value of plansassets 45,887 6,568 91,062 41,058 184,575

Reimbursement rights -2015

Opening value ofreimbursement right 20,229 10,564 1,347,805 - 1,378,598

Expected return onreimbursement rights 3,786 939 37,681 - 42,406

Remeasurements 7,046 (702) 14,651 - 20,995

Contributions from employer 27,714 (325) (92,425) - (65,036)

Other (765) (227) (964) - (1,956)

Closing value ofreimbursement right 1 16 58,010 10,249 1,306,748 - 1,375,007

78






(d) Statement of financial position amounts (continued)Amounts recognised in thestatement of financialposition - 2014 Note

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Liabilities

Deferred non-governmentbenefits for superannuation 25 - - - 4,173 4,173

Deferred government benefitsfor superannuation 25 21,086 10,247 1,451,619 - 1,482,952

Deferred benefits forsuperannuation 21,086 10,247 1,451,619 4,173 1,487,125

Assets

Deferred governmentcontributions forsuperannuation1 16 (20,229) (10,564) (1,347,805) - (1,378,598)

Net liability/(asset)recognised in the statementof financial position 857 (317) 103,814 4,173 108,527

Net liability reconciliation -2014

Defined benefit obligation 98,813 17,917 1,516,619 48,009 1,681,358

Fair value of plan assets (77,727) (7,670) (65,000) (43,836) (194,233)

Net liability 25 21,086 10,247 1,451,619 4,173 1,487,125

Reimbursement right1 16 (20,229) (10,564) (1,347,805) - (1,378,598)

Total net liability/(asset) 857 (317) 103,814 4,173 108,527

Present value obligations -2014

Opening defined benefitobligation 93,503 17,694 1,305,202 48,395 1,464,794

Current service cost 3,266 745 1,260 929 6,200

Interest expense 3,746 712 54,268 1,326 60,052

Remeasurements

Actuarial losses/(gains)arising from changes infinancial assumptions 5,399 1,399 221,854 1,720 230,372

Actuarial losses/(gains)arising from changes inexperience assumptions 2,897 697 (1,532) 1,041 3,103

Contributions

From plan participant 1,266 - 1,422 - 2,688

Benefits paid (11,264) (3,330) (65,855) (5,402) (85,851)

Closing defined benefitobligation 98,813 17,917 1,516,619 48,009 1,681,358

79






(d) Statement of financial position amounts (continued)

Fair value of plan assets -2014 Note

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Opening fair value of planassets 78,447 9,246 121,758 41,882 251,333

Remeasurements

Actual return on plan assetsless interest income 3,499 212 2,786 1,886 8,383

Interest income 3,159 376 3,759 1,643 8,937

Contributions

Employers 2,620 1,166 1,129 3,827 8,742

Plan participants 1,266 - 1,423 - 2,689

Benefits paid (11,264) (3,330) (65,855) (5,402) (85,851)

Closing value of plansassets 77,727 7,670 65,000 43,836 194,233

Reimbursement rights -2014

Opening value ofreimbursement right 14,515 - 1,099,624 - 1,114,139

Expected return onreimbursement rights 3,561 1,040 48,088 - 52,689

Remeasurements 4,556 1,789 201,144 - 207,489

Contributions from employer (2,403) (1,073) (1,051) - (4,527)

Recognition of newreimbursement rights - 8,808 - - 8,808

Closing value ofreimbursement right1 16 20,229 10,564 1,347,805 - 1,378,598

1$1,375,007,000 (2014: $1,378,598,000) of the net liabilities of the superannuation funds is payable by the Commonwealthand NSW Governments under the new funding arrangement as detailed in the MOU (see note 1(a)(i)). This is based on thenet liabilities of SASS of $59,745,000 (2014: $21,086,000), the net liabilities of SSS of $1,415,871,000 (2014:$1,451,619,000) and the net liabilities of SANCS of $10,069,000 (2014: $10,247,000) less the net liabilities of thesuperannuation funds of UNSW Canberra at ADFA and other unfunded superannuation costs totalling $108,722,000 (2014:$104,354,000) and $1,956,000 (2014: nil) respectively.

The financial impact on funds guaranteed by the Commonwealth Government is in respect of the parent entitydefined benefits only. This results in a difference between the closing value of the net liability arising fromdefined benefit obligations and reimbursement right per note 37 and the closing value per note 25 and note 16respectively. The difference is $2,523,000 (2014: $2,439,000) and is attributable to the funds guaranteed by theCommonwealth Government in respect of UNSW Global's defined benefits.

The amount of $25,535,000 contributed by the Commonwealth Government in 2004 for UNSW Canberra atADFA is managed as part of the pool of general investments of the Group. These funds are included as part ofavailable-for-sale financial assets disclosed in the balance sheet, refer to note 18.

If a net surplus exists in a Fund, the Group may be able to take advantage of it in the form of a reduction in therequired contribution rate, depending on the advice of the Fund's actuary.

Where a net deficiency exists, the Group is responsible for any difference between the employer's share of fundassets and the defined benefit obligation, except for instances in SASS, SANCS and SSS (as described above),where the difference will ultimately be borne by the Commonwealth and NSW Governments.

80






(e) Amounts recognised in other statements

Amounts recognised in the Income statement - 2015

The amounts recognised in the income statement are restricted to the Professorial Superannuation Fund, andthe UNSW Canberra at ADFA component of the three superannuation schemes.

Amounts recognised in theIncome statement - 2015 Note

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Current service cost 277 57 231 294 859

Interest expense 228 35 3,109 1,245 4,617

Interest income (207) (44) (173) (1,080) (1,504)

Other - 61 854 - 915

298 109 4,021 459 4,887

Less: employer contributions (224) (32) (61) - (317)

Total expense recognised indeferred superannuationexpense 8 74 77 3,960 459 4,570

Amounts recognised in other comprehensive income - 2015

The amounts recognised in the statement of comprehensive income are restricted to the ProfessorialSuperannuation Fund, and the UNSW Canberra at ADFA component of the three superannuation schemes.The amounts are included in retained earnings.

Actuarial losses (gains) arisingfrom changes in demographicassumptions 191 (12) 3,409 4,689 8,277

Actuarial gains/(losses) arisingfrom changes in financialassumptions - 1 (1,012) (407) (1,418)

Actuarial gains/(losses) arisingfrom experience adjustments 102 (38) (815) 1,432 681

Actual return on plan assets lessinterest income (255) (55) (343) (768) (1,421)

Other 765 165 110 - 1,040

Total amounts recognised in theStatement of comprehensiveincome 28(b) 803 61 1,349 4,946 7,159

81






(e) Amounts recognised in other statements (continued)

Amounts recognised in the Income statement - 2014

The amounts recognised in the income statement are restricted to the Professorial Superannuation Fund, andthe UNSW Canberra at ADFA component of the three superannuation schemes.

Amounts recognised in theIncome statement - 2014 Note

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Current service cost 273 59 103 929 1,364

Interest expense 297 50 3,988 1,326 5,661

Interest income (278) (68) (411) (1,643) (2,400)

292 41 3,680 612 4,625

Less: employer contributions (217) (92) (79) (3,827) (4,215)

Total expense recognised indeferred superannuationexpense 8 75 (51) 3,601 (3,215) 410

Amounts recognised in other comprehensive income - 2014

The amounts recognised in the statement of comprehensive income are restricted to the ProfessorialSuperannuation Fund, and the UNSW Canberra at ADFA component of the three superannuation schemes.The amounts are included in retained earnings.

$'000

SASS

$'000

SANCS

$'000

SSS

$'000

PSF

$'000

Total

Actuarial gains/(losses) arisingfrom changes in financialassumptions 517 136 17,597 1,720 19,970

Actuarial gains/(losses) arisingfrom experience adjustments 257 30 (759) 1,041 569

Actual return on plan assets lessinterest income (533) (71) (445) (1,886) (2,935)

Total amounts recognised in theStatement of comprehensiveincome 28(b) 241 95 16,393 875 17,604

82






(f) Financial impact on other funds

UniSuper

The parent entity also contributes to the UniSuper Defined Benefit Division (DBD), formerly known as theSuperannuation Scheme for Australian Universities (SSAU), for academic staff appointed since 1 March 1988and for all other staff from 1 July 1991. DBD is a defined benefit plan under Superannuation Law but isconsidered to be a defined contribution plan under AASB 119 Employee Benefits.

As at 30 June 2015, the assets of the DBD in aggregate were estimated to be $1,479,000,000 above vestedbenefits, after allowing for various reserves (30 June 2014: $271,000,000 above vested benefits). The vestedbenefits are benefits which are not conditional upon continued membership (or any factor other than leaving theservice of the participating institution) and include the value of indexed pensions being provided by the DBD.

As at 30 June 2015, the assets of the DBD in aggregate were estimated to be $3,377,000,000 above accruedbenefits, after allowing for various reserves (30 June 2014: $2,071,000,000 above accrued benefits). Theaccrued benefits have been calculated as the present value of expected future benefit payments to membersand indexed pensioners which arise from membership of UniSuper up to the reporting date.

The vested benefit and accrued benefit liabilities were determined by the Fund’s actuary using the actuarialdemographic assumptions outlined in their report on the actuarial investigation of the DBD as at 1 July 2015.

Assets have been included at their net market value; that is, after allowing for realisation costs. Clause 34 wasinitiated following the 31 December 2008, 30 June 2011, 30 June 2012 and 30 June 2013 actuarialinvestigations.

Following the end of the monitoring period commenced in relation to the 31 December 2008 actuarialinvestigation, the UniSuper Limited Board made a decision not to reduce accrued benefits. Instead, theydecided to reduce the rate at which benefits accrue in respect of the DBD membership after 1 January 2015.

Following the end of the monitoring period commenced in relation to the 30 June 2011 actuarial investigation,the Fund’s actuary advised that the Trustee is not required to take any further action under Clause 34 in relationto that monitoring period, and that monitoring period is now ceased.

Other superannuation schemes

The Group also contributes to the Commonwealth Superannuation Scheme. This superannuation scheme isfully funded. The Commonwealth Government has ultimate funding risk when members retire.

83

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41,7

31

2,3

55

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

-732

568

526

276,5

80

272,3

65

Le

ss e

xpe

nse

s in

clu

din

g a

ccru

ed

exp

ense

s-

(732)

(638)

(480)

(275,7

88)

(270,6

34)

Su

rplu

s/(d

efic

it) f

or

the

re

po

rtin

g p

erio

d-

-(7

0)

46

792

1,7

31

1In

clu

de

s th

e b

asi

c C

GS

gra

nt

am

ou

nt

an

d C

GS

En

ab

ling

Lo

ad

ing

.2In

clu

de

s E

qu

ity S

up

po

rt P

rog

ram

.

85

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

97

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

Acq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(b)

Hig

he

r e

du

ca

tio

n l

oa

n p

rog

ram

s (

ex

cl

OS

-HE

LP

)H

EC

S-H

EL

P

FE

E-H

EL

PS

A-H

EL

PT

ota

l

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nt

No

te

2015

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00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

Cash

Paya

ble

/(R

ece

ivable

) at th

e b

egin

nin

g o

f th

eye

ar

(1,8

26)

124

(817)

(198)

(2)

(287)

(2,6

45)

(361)

Fin

an

cia

l ass

ista

nce

re

ceiv

ed

in c

ash

du

rin

g t

he

report

ing p

eriod

161,3

17

155,7

61

39,4

14

36,6

60

2,9

36

3,1

60

203,6

67

195,5

81

Cash

ava

ilable

for

the p

eriod

159,4

91

155,8

85

38,5

97

36,4

62

2,9

34

2,8

73

201,0

22

195,2

20

Reve

nue e

arn

ed

2(b

)161,1

56

157,7

11

39,4

53

37,2

79

2,9

39

2,8

75

203,5

48

197,8

65

Cash

Paya

ble

/(R

ece

ivable

) at th

e e

nd o

f th

e y

ear

(1,6

65)

(1,8

26)

(856)

(817)

(5)

(2)

(2,5

26)

(2,6

45)

86

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

98

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

Acq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(c)

Sch

ola

rsh

ips

Au

str

alian

Po

stg

rad

uate

Aw

ard

s

Inte

rnati

on

al

Po

stg

rad

uate

Researc

hS

ch

ola

rsh

ips

Co

mm

on

we

alt

hE

du

ca

tio

n C

os

tS

ch

ola

rsh

ips

3

Co

mm

on

we

alt

hA

cc

om

mo

da

tio

nS

ch

ola

rsh

ips

Ind

ige

no

us

Access

Sc

ho

lars

hip

sT

ota

l

Pare

nt

No

te

2015

$'0

00

2014

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00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

Fin

an

cia

l a

ssis

tan

ce

re

ce

ive

d in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ive

d f

rom

th

e A

ust

ralia

n G

ove

rnm

en

tfo

r th

e p

rog

ram

)24,5

08

23,8

97

1,9

69

1,9

62

119

107

71

68

34

28

26,7

01

26,0

62

Ne

t a

ccru

al a

dju

stm

en

ts-

--

-(1

09)

-(1

15)

-(2

9)

-(2

53)

-

Reve

nue for

the p

eriod

2(c

)24,5

08

23,8

97

1,9

69

1,9

62

10

107

(44)

68

528

26,4

48

26,0

62

Su

rplu

s/(d

efic

it) f

rom

th

e p

revi

ou

s ye

ar

2,0

51

2,7

11

(12)

(494)

46

-72

--

-2,1

57

2,2

17

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

26,5

59

26,6

08

1,9

57

1,4

68

56

107

28

68

528

28,6

05

28,2

79

Le

ss e

xpe

nse

s in

clu

din

g a

ccru

ed

exp

ense

s(2

6,0

87)

(24,5

57)

(1,9

81)

(1,4

80)

(56)

(61)

(28)

4(5

)(2

8)

(28,1

57)

(26,1

22)

Su

rplu

s/(d

efic

it) f

or

the

re

po

rtin

g p

erio

d472

2,0

51

(24)

(12)

-46

-72

--

448

2,1

57

3In

clu

de

s G

ran

dfa

the

red

Sch

ola

rsh

ips

an

d N

atio

na

l Prio

rity

Sch

ola

rsh

ips.

87

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

99

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

Acq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(d)

Ed

ucati

on

Researc

h

Jo

int

Researc

hE

ng

ag

em

en

tJ

RE

En

gin

ee

rin

gC

ad

ets

hip

sR

esearc

h T

rain

ing

Sc

he

me

Researc

hIn

frastr

uctu

reB

lock G

ran

ts

Su

sta

ina

ble

Researc

hE

xc

ell

en

ce

in

Un

ivers

itie

sT

ota

l

Pare

nt

No

te

2015

$'0

00

2014

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00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

Fin

an

cia

l a

ssis

tan

ce

re

ce

ive

d in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ive

d f

rom

Au

stra

lian

Go

vern

me

nt

for

the

pro

gra

m)

32,3

81

30,9

76

523

384

63,4

19

63,0

32

22,0

34

20,6

99

17,4

35

15,2

19

135,7

92

130,3

10

Ne

t a

ccru

al a

dju

stm

en

ts-

--

--

--

--

--

-

Reve

nue for

the p

eriod

2(d

)32,3

81

30,9

76

523

384

63,4

19

63,0

32

22,0

34

20,6

99

17,4

35

15,2

19

135,7

92

130,3

10

Su

rplu

s/(d

efic

it) f

rom

th

e p

revi

ou

s ye

ar

--

347

--

--

--

-347

-

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

32,3

81

30,9

76

870

384

63,4

19

63,0

32

22,0

34

20,6

99

17,4

35

15,2

19

136,1

39

130,3

10

Le

ss e

xpe

nse

s in

clu

din

g a

ccru

ed

exp

ense

s(3

2,3

81)

(30,9

76)

(33)

(37)

(63,4

19)

(63,0

32)

(22,0

34)

(20,6

99)

(17,4

35)

(15,2

19)

(135,3

02)

(129,9

63)

Su

rplu

s/(d

efic

it) f

or

the

re

po

rtin

g p

erio

d-

-837

347

--

--

--

837

347

88

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

100

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

Acq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(e)

Oth

er

Ca

pit

al

Fu

nd

ing

Ed

uc

ati

on

In

ve

stm

en

tF

un

dT

ota

l

Pare

nt

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te

2015

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00

2014

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00

2015

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00

2014

$'0

00

Fin

an

cia

l a

ssis

tan

ce

re

ce

ive

d in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ive

d f

rom

th

e A

ust

ralia

n G

ove

rnm

en

tfo

r th

e p

rog

ram

)-

10,8

50

-10,8

50

Reve

nue for

the p

eriod

2(e

)-

10,8

50

-10,8

50

Su

rplu

s/(d

efic

it) f

rom

th

e p

revi

ou

s ye

ar

1,7

43

5,8

65

1,7

43

5,8

65

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

1,7

43

16,7

15

1,7

43

16,7

15

Le

ss e

xpe

nse

s in

clu

din

g a

ccru

ed

exp

ense

s(1

,708)

(14,9

72)

(1,7

08)

(14,9

72)

Su

rplu

s/(d

efic

it) f

or

the

re

po

rtin

g p

erio

d35

1,7

43

35

1,7

43

89

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

101

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

Acq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(f)

Au

str

ali

an

Re

se

arc

h C

ou

nc

il G

ran

ts

Pro

jects

Fe

llo

ws

hip

s4

Ind

ige

no

us

Researc

hers

Develo

pm

en

tT

ota

l

(i)

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very

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nt

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te

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00

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00

2015

$'0

00

2014

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00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

Fin

an

cia

l ass

ista

nce

re

ceiv

ed

in C

AS

H d

urin

g t

he

rep

ort

ing

pe

rio

d (

tota

l ca

sh r

ece

ive

d f

rom

th

eA

ust

ralia

n G

ove

rnm

en

t fo

r th

e p

rog

ram

)27,1

18

28,9

49

20,5

81

26,3

21

379

882

48,0

78

56,1

52

Ne

t a

ccru

al a

dju

stm

en

ts(1

,412)

(1,5

30)

56

386

-(1

33)

(1,3

56)

(1,2

77)

Reve

nue for

the p

eriod

2(f

)(i)

25,7

06

27,4

19

20,6

37

26,7

07

379

749

46,7

22

54,8

75

Su

rplu

s/(d

efic

it) f

rom

th

e p

revi

ou

s ye

ar

16,9

89

16,7

48

16,5

22

13,0

30

767

716

34,2

78

30,4

94

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

42,6

95

44,1

67

37,1

59

39,7

37

1,1

46

1,4

65

81,0

00

85,3

69

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s(2

4,1

17)

(27,1

78)

(21,1

29)

(23,2

15)

(347)

(698)

(45,5

93)

(51,0

91)

Su

rplu

s/(d

efic

it) f

or

the

re

po

rtin

g p

erio

d18,5

78

16,9

89

16,0

30

16,5

22

799

767

35,4

07

34,2

78

4In

cludes

Early

Care

er

Rese

arc

her

Aw

ard

.

90

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

102

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

Acq

uit

tal

of

Au

str

ali

an

Go

ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(f)

Au

str

ali

an

Re

se

arc

h C

ou

nc

il G

ran

ts (

co

nti

nu

ed

)In

du

str

ial

Tra

nsfo

rmati

on

Researc

h P

rog

ram

Infr

astr

uctu

reP

roje

cts

To

tal

(ii)

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ka

ge

s

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nt

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te

2015

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00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

2015

$'0

00

2014

$'0

00

Fin

an

cia

l ass

ista

nce

re

ceiv

ed

in C

AS

H d

urin

g t

he

rep

ort

ing

pe

rio

d (

tota

l ca

sh r

ece

ive

d f

rom

th

eA

ust

ralia

n G

ove

rnm

en

t fo

r th

e p

rog

ram

)1,3

35

1,5

84

5,8

75

5,4

12

10,2

35

10,4

18

17,4

45

17,4

14

Ne

t a

ccru

al a

dju

stm

en

ts837

(875)

(627)

(1,5

31)

(1,1

99)

111

(989)

(2,2

95)

Reve

nue for

the p

eriod

2(f

)(ii)

2,1

72

709

5,2

48

3,8

81

9,0

36

10,5

29

16,4

56

15,1

19

Su

rplu

s/(d

efic

it) f

rom

th

e p

revi

ou

s ye

ar

991

697

8,0

39

6,6

38

7,7

79

8,7

34

16,8

09

16,0

69

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

3,1

63

1,4

06

13,2

87

10,5

19

16,8

15

19,2

63

33,2

65

31,1

88

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s(7

01)

(415)

(5,7

35)

(2,4

80)

(9,2

06)

(11,4

84)

(15,6

42)

(14,3

79)

Su

rplu

s/(d

efic

it) f

or

the

re

po

rtin

g p

erio

d2,4

62

991

7,5

52

8,0

39

7,6

09

7,7

79

17,6

23

16,8

09

91

Note

s to

the

finan

cial

sta

tem

ents

31 D

ecem

ber 2

015

103

Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e y

ear

en

ded

31 D

ecem

ber

2015

38

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uit

tal

of

Au

str

ali

an

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ve

rnm

en

t fi

na

nc

ial

as

sis

tan

ce

(c

on

tin

ue

d)

(f)

Au

str

ali

an

Re

se

arc

h C

ou

nc

il G

ran

ts (

co

nti

nu

ed

)C

en

tres

To

tal

(iii

) N

etw

ork

s a

nd

Cen

tres

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nt

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te

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00

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00

2015

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2014

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Fin

an

cia

l ass

ista

nce

re

ceiv

ed

in C

AS

H d

urin

g t

he

rep

ort

ing

pe

rio

d (

tota

l ca

sh r

ece

ive

d f

rom

th

eA

ust

ralia

n G

ove

rnm

en

t fo

r th

e p

rog

ram

)9,5

34

9,4

80

9,5

34

9,4

80

Ne

t a

ccru

al a

dju

stm

en

ts(5

,137)

(5,0

68)

(5,1

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92


Notes to the financial statements31 December 2015

END OF THE AUDITED FINANCIAL STATEMENTS




38 Acquittal of Australian Government financial assistance (continued)

(g) OS-HELP

Parent Note

2015

$'000

2014

$'000

Cash received during the reporting period 4,736 7,062

Cash spent during the reporting period (4,328) (4,165)

Net cash received 2(h) 408 2,897

Cash surplus/(deficit) from the previous period 2,566 (331)

Cash surplus/(deficit) for the reporting period 2,974 2,566

(h) Superannuation supplementation

Parent Note

2015

$'000

2014

$'000

Cash received during the reporting period 2(h) 48,074 -

University contribution in respect of current employees 3,403 4,452

Cash available 51,477 4,452

Cash available for current period 51,477 4,452

Contributions to specified defined benefit funds 16 / 37 (51,477) (4,452)

Cash surplus/(deficit) for this period - -

(i) Student Services and Amenities Fee

Parent Note

2015

$'000

2014

$'000

Unspent/(overspent) revenue from previous period - -

SA-HELP revenue earned 2(b) 2,939 2,875

Student Services and Amenities Fee 4 4,514 4,467

Total revenue expendable in period 7,453 7,342

Student services expenses during period (7,453) (7,342)

Unspent/(overspent) student services revenue - -

END OF THE AUDITED FINANCIAL STATEMENTS

93


Supplementary InformationFor the year ended 31 December 2015 (Parent entity only)

Budget and Actual Performance (Parent entity only)

Budget Actual Budget 2015 2015 2016 $’000 $’000 $’000

Revenue from continuing operations AustralianGovernmentfinancialassistance Australian Government grants 656,632 698,850 658,556 HELP - Australian Government payments 202,954 203,548 205,005 StateandLocalGovernmentfinancialassistance 25,163 26,303 24,121 HECS-HELP - Student payments 48,860 31,197 52,280 Fees and charges 561,458 522,857 608,033 Investment revenue and income 17,612 36,864 25,031 Royalties, trademarks and licences 1,717 4,701 1,860 Consultancy and contracts 45,586 60,246 47,135 Other revenue 29,084 69,906 61,297Total revenue from continuing operations 1,589,066 1,654,472 1,683,318

Gains on disposal of assets - 49 - Other investment income - 5,521 - Other income 14,368 11,769 5,272Total other income from continuing operations 14,368 17,339 5,272

Total revenue and income from continuing operations 1,603,434 1,671,811 1,688,590

Expenses from continuing operations Employee related expenses 966,317 906,447 997,507 Depreciation and amortisation 146,383 141,546 155,118 Repairs and maintenance 32,041 32,968 33,230 Borrowingcosts 3,130 2,483 2,440 Impairment of assets 800 13,287 1,000 Loss on disposal of assets 13 370 - Deferredemploymentbenefitsforsuperannuation - 4,570 - Other expenses 492,740 495,337 520,917Total expenses from continuing operations 1,641,424 1,597,008 1,710,212

Net result before income tax from continuing operations (37,990) 74,803 (21,622)


Investment performance (Parent entity only)

UNSW’sinvestmentsareallocatedtothefollowinginvestmentPools:

• PoolLandPoolE:long-terminvestmentfundswithaninvestmenthorizonofmorethantwoyears.ThePoolshavethesameassetallocation,thecomponentsofwhichweremanagedduringtheyearbythesameexternalfundmanagersotherthancashwhichwasmanagedinternallybyUNSWTreasuryandInvestmentServices;

• PoolB:short-terminvestmentfundswithaninvestmenthorizonuptothreeyearsandacapitalpreservationinvestment objective. 50% of the Pool is invested in cash managed internally by UNSW Treasury and InvestmentServiceswiththebalancemanagedbyexternalfundmanagers;

• PoolS:theUNSW’sliquidityandworkingcapitalreservewithaninvestmenthorizonoflessthantwoyears.Pool S is managed internally by UNSW Treasury and Investment Services; and

• PoolP:principallystudentaccommodationandresidentialproperties(95%)andsignificantventureinitiatives(5%). Student accommodation investments are held for strategic purposes and are managed by UNSW’s StrategicPropertyGroup.Thesepropertiesarenotclassifiedasinvestmentpropertiesundercurrentaccounting standards.

InaccordancewiththeAnnual Report (Statutory Bodies) Act 1984 and its regulation 2010, the performance ofPoolL,E,BandSaremeasuredinthetablebelowagainstNSWTreasuryCorporationFacilities.ItisnotappropriateforPoolP’sperformancetobebenchmarkedinthiswayasitisaprojectfundanditsinvestmentcriteria and horizon differ markedly from any of the NSW Treasury Corporation’s facilities.

Fund Manager

(i) Return for 12 months to 31/12/2015

(ii) Treasury Corporation Facility Performance for 12 months to 31/12/2015

(i) Return for 12 months to 31/12/2014

(ii) Treasury Corporation Facility Performance for 12 months to 31/12/2014

% % % %Pool L & E Internal/External 2.85 4.21 19.16 19.54Pool B Internal/External 3.01 2.47 N/A N/APool S Internal 2.95 2.47 4.35 3.12

(i) The investment returns for Pool L and Pool E are calculated as the change in market value of investments from the beginning of the year to the end of the year. The return for Pool B is calculated as the change in market value of investments from the beginning of the year totheendoftheyearandtheweightedaverageyieldachievedonthecashinvestments.ThereturnforPoolSistheweightedaverageyield achieved.

(ii) TheweightedaverageoftheperformanceoftheNSWTreasuryCorporationmediumterm(25%)andlongtermfacilities(75%)isemployedforthePoolLandPoolEcomparison.ThisweightingreflectsthestrategicassetallocationofthePools.ThelongterminvestmentperformanceshownabovedoesnotincluderefundsfromtheATOinrespectoffrankingcredits.Frankingcreditscontributeapproximately0.5%inadditionalreturn.TheNSWTreasuryCorporationCashfacilityreturnisusedforthePoolBcomparisonreflectingthe capital preservation investment objective.

Supplementary Information For the year ended 31 December 2015 (Parent entity only)


Account payment performance (Parent entity only)

Total accounts paid on time Total amount paid

Target (i) % Actual (i) % $’000 $’0002014January - March 70 77 154,204 207,652April - June 70 79 165,902 211,292July - September 70 78 209,699 245,756October - December 70 68 220,032 277,014

2015January - March 70 89 214,637 232,609April - June 70 91 185,020 203,767July - September 70 92 186,861 219,257October - December 70 93 227,443 266,217

(i) The % is based on the number of transactions processed and not on monetary terms.




Land Appendix (Parent entity only)

InaccordancewithSection41B1(d)ofthePublic Finance and Audit Act,belowistheunauditedLandAppendixtotheFinancialStatementsoftheUniversityofNewSouthWales,referredtoas‘UNSW’,fortheyearended31December 2015.

Land Value Land Value2015 2014

Land Use $’000 $’000

T Teaching, Research and other University purposes 311,994 302,774

A Student Accommodation 32,514 31,301LR Leased to residential tenants 52,131 45,347LC Leased to commercial tenants 38,976 33,857

435,615 413,279

Thetotalvalueoflandownedoroccupiedishigherthanthelandvaluerecognisedwithinthecategories“Land”and “Off-campus properties” in the Statement of Financial Position. The value of the Land disclosed in the Statement of Financial Position has been adjusted for impairment.


2015 Statutory Report


Statutory Report 2015

Access to Information and PrivacyGovernment Information (Public Access) Act 2009 (NSW)

Under section 125 of the Government Information (Public Access) Act 2009 (NSW) (“the Act”) and clause 7 of the Government Information (Public Access) Regulation 2009 (NSW), the University is required to report annually on its obligations under the Act. The required statistical information on 2015 access applications to the Universityfollows.

Review of proactive release program

Undersection7oftheGIPAAct,theUniversitymustreviewitsprogramforthereleaseofgovernmentinformation to identify the kinds of information that can be made publicly available.

The University’s program for the proactive release of information involves making much of the information that it holdsfreelyavailableviatheUniversity’swebsite,including:

• the UNSW 2025 Strategic Plan, including details of the consultation process conducted throughout 2015;• details of the governance and management of the University, including the University Council, Academic

Board and Management Board;• thelatestUNSWAnnualReport(plusaccesstopreviousAnnualReports)includingdetailedfinancialreports;• a range of publications that document the activities of the University including UNSWorld (biannual alumni and

community magazine) and Uniken (quarterly magazine for staff, students and visitors that reports on issues affecting the tertiary education sector and the latest developments in UNSW’s research and teaching);

• the UNSW Handbook, that contains the rules and procedures relating to the University’s undergraduate and postgraduate programs,; and

• listing and full text access to UNSW policies, procedures and guidelines.

Duringthereportingperiod,wereviewedthisprogrambyassessingtheinformationrequestedunderbothformal access applications and informal requests to determine if such information could be made available to the public by proactive release.

Asaresultofthisreview,itwasdeterminedthattheUniversity’scurrentprogramfortheproactivereleaseofinformationissufficientgiventheexistingrequestsforinformationbythepublic.

Number of access applications received

Duringthereportingperiod,ouragencyreceivedatotalofsixteenformalaccessapplications(includingtwowithdrawnapplications).

Number of refused applications for Schedule 1 information

During the reporting period, the University did not refuse any formal access applications because the informationrequestedwasinformationreferredtoinSchedule1totheGIPAAct.

Privacy

TheUniversity’sPrivacyManagementPlanoutlineshowtheUniversitycomplieswiththePrivacy and Personal Information Protection Act 1998 (NSW) (“the PPIP Act”) and the Health Records and Information Privacy Act 2002(NSW).OneinternalreviewwascompletedunderPart5ofthePPIPActduringthereportingperiod.



2015 GIPAA access applicationsTable A: Number of applications by type of applicant and outcome*

Access granted in full

Access granted in part

Access refused in full

Information not held

Information already available

Refuse to deal with application

Refuse to confirm/deny whether information is held

Application withdrawn

Media 3 2 1 3 0 0 0 0

Members of Parliament

0 0 0 0 0 0 0 0

Private sector business

0 0 0 0 0 0 0 0

Notforprofitorganisations or community groups

0 0 0 0 0 0 0 0

Members of the public (application by legal representative)

0 0 0 0 0 0 0 0

Members of the public (other)

7 1 4 3 3 0 0 2

*More than one decision can be made in respect of a particular access application.

Table B: Number of applications by type of application and outcome

Access granted in full

Access granted in part

Access refused in full

Information not held

Information already available

Refuse to deal with application

Refuse to confirm/deny whether information is held

Application withdrawn

Personal information applications*

5 1 0 1 1 0 0 0

Access applications (other than personal information applications)

5 2 4 5 2 0 0 2

Access applications that are partly personal information applications and partly other

0 0 1 0 0 0 0 0

*Apersonalinformationapplicationisanaccessapplicationforpersonalinformation(asdefinedinclause4ofSchedule4totheAct)abouttheapplicant (the applicant being an individual).



Table C: Invalid applicationsReason for invalidity Number of applicationsApplicationdoesnotcomplywithformalrequirements(section41oftheAct) 0Application is for excluded information of the agency (section 43 of the Act) 0Application contravenes restraint order (section 110 of the Act) 0Total number of invalid applications received 0Invalid applications that subsequently became valid applications 0

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the Act

Number of times consideration used*

Overridingsecrecylaws 0Cabinet information 0Executive Council information 0Contempt 0Legal professional privilege 0Excluded information 0Documentsaffectinglawenforcementandpublicsafety 0Transport safety 0Adoption 0Care and protection of children 0Ministerial code of conduct 0Aboriginal and environmental heritage 0

*More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be recorded (but only once per application). This also applies in relation to Table E.

Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of the ActNumber of occasions when application not successful

Responsible and effective government 5Lawenforcementandsecurity 0Individual rights, judicial processes and natural justice 6Business interests of agencies and other persons 3Environment, culture, economy and general matters 0Secrecy provisions 0Exempt documents under interstate Freedom of Information legislation 0

Table F: TimelinessNumber of applications

Decidedwithinthestatutorytimeframe(20daysplusanyextensions) 12Decidedafter35days(byagreementwithapplicant) 1Notdecidedwithintime(deemedrefusal) 1Total 14



Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome)Decision varied Decision upheld Total

Internalreview 1 1 2ReviewbyInformationCommissioner*# 1 2 3Internalreviewfollowingrecommendationunder section 93 of Act 0 1 1

ReviewbyNCAT^ 0 0 0Total 2 3 5

*The Information Commissioner does not have the authority to vary decisions, but can make recommendation to the original decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been made.#OneapplicationsforreviewbytheInformationCommissionerispendingattimeofpublication.^OneapplicationforreviewbytheNCATispendingattimeofpublication.

Table H: Applications for review under Part 5 of the Act (by type of applicant)Number of applications for review

Applications by access applicants 4Applicationsbypersonstowhominformationthesubjectofaccessapplicationrelates (see section 54 of the Act) 0

Disclosure RequirementsNumbers and remuneration of senior executives

2014 2015Male Female Male Female

Vice-Chancellor 1 0 1 0Deputy Vice-Chancellor and Vice-President 2 0 2 0

Vice-President or Dean 4 1 4 1

Average total remuneration package of senior executives

2015 $ 443,732 2014 $ 486,567

Total remuneration package includes base salary, superannuation and performance pay (if applicable).

Percentage of total employee related expenditure that relates to senior executives

2015 0.37% 2014 0.41%


Statistical Information on EEO target groupsA. Trends in the Representation of EEO Groups

% of Total Staff

General Staff Benchmark or Target 2012 2013 2014 2015

Women 50% 62.60% 62.42% 62.62% 63.45%Aboriginal people and Torres Strait Islanders 2% 1.15% 1.26% 1.17% 1.28%PeoplewhosefirstlanguagewasnotEnglish 19% 27.84% 27.78% 27.93% 28.63%Peoplewithadisability 12% 3.54% 3.41% 3.65% 3.37%Peoplewithadisabilityrequiringwork-relatedadjustment

7% 0.49% 0.54% 0.56% 0.54%

% of Total Staff

Academic Staff Benchmark or Target 2012 2013 2014 2015

Women 50% 35.31% 37.68% 37.46% 38.28%Aboriginal people and Torres Strait Islanders 2% 0.60% 0.51% 0.53% 0.56%PeoplewhosefirstlanguagewasnotEnglish 19% 24.69% 22.82% 24.12% 23.65%Peoplewithadisability 12% 2.86% 2.47% 2.70% 2.67%Peoplewithadisabilityrequiringwork-relatedadjustment

7% 0.56% 0.59% 0.64% 0.64%

B. Trends in the Distribution of EEO Groups

Distribution Index

General Staff Benchmark or Target 2012 2013 2014 2015

Aboriginal people and Torres Strait Islanders 100 90 85 88 86PeoplewhosefirstlanguagewasnotEnglish 100 99 99 99 99Peoplewithadisability 100 96 98 100 101Peoplewithadisabilityrequiringwork-relatedadjustment

100 n/a n/a n/a n/a

Peoplewithadisabilityrequiringwork-relatedadjustment

100 n/a n/a n/a n/a

Distribution Index

Academic Staff Benchmark or Target 2012 2013 2014 2015

Aboriginal people and Torres Strait Islanders 100 98 98 100 102PeoplewhosefirstlanguagewasnotEnglish 100 99 107 104 105Peoplewithadisability 100 112 118 120 123Peoplewithadisabilityrequiringwork-relatedadjustment

100 118 123 125 127

Peoplewithadisabilityrequiringwork-relatedadjustment

100 128 118 123 125

Notes:1. Staff numbers are as at 31 March 2015. 2. Figures exclude casual staff. 3. A Distribution Index of 100 indicates that the centre of the distribution of the EEO groupacrosssalarylevelsisequivalenttothatofotherstaff.Valueslessthan100meanthattheEEOgrouptendstobemoreconcentratedatlowersalarylevelsthanisthecaseforotherstaff.Themorepronouncedthistendencyis,thelowertheindexwillbe.Insomecasestheindexmaybemorethan100,indicatingthattheEEOgroupislessconcentratedatlowersalarylevels.TheDistributionIndexisautomaticallycalculatedbythesoftwareprovidedbytheOfficeofEmploymentEquityandDiversity.4. TheDistributionIndexisnotcalculatedwhereEEOgroupornon-EEOgroupnumbersarelessthan20.


Notes

UNSW AustraliaUNSW SYDNEY NSW 2052 Tel +61 2 9385 1000www.unsw.edu.au

Hours of businessSwitchboard: Monday – Friday, 9am – 5pmMany departments of the Universityoperate beyond standard business hours.

This report is published online atwww.annualreport.unsw.edu.au

Produced by the UNSW Media Offi ce

© UNSW 2015ISSN 0726-8459 Volume 1CRICOS Provider Code 00098GAssociation of Pacific Rim Universities

UNSW Australia UNSW Sydney NSW 2052 Tel +61 2 9385 1000 unsw.edu.au

Hours of business Switchboard:Monday–Friday,9am–5pm Many departments of the University operate beyond standard business hours.

This report is available online atannualreport.unsw.edu.au

© UNSW 2016 ISSN 0726-8459 Volume 2 CRICOS Provider Code 00098G