2013 Annual Report Full Version

2013 Annual Report Full Version

ANNUAL REPORT

2013

Edith Cowan UnivErsity

III

Edith Cowan University acknowledges and respects the continuing association with the Nyoongar people, the traditional custodians of the land upon which its campuses stand and programs operate.

This report is available in PDF format from the ECU website:

www.ecu.edu.au/about-ecu/reports-

and-plans/annual-reports. To minimise download times and reduce printing, the report is provided in chapters, as well as a single document.

ECU encourages you to use recycled paper and to print the report and/ or its sections in double-sided formats.

The Annual Report references other documents obtainable from the ECU website. If you have difficulties accessing any of these documents, or you require the Annual Report in an alternative format, then please contact [email protected]

Official correspondence relating to the Annual Report should be addressed to:

Council Secretary

Edith Cowan University

270 Joondalup Drive

JOONDALUP WA 6027

JOONDALUP CAMPUS

270 Joondalup Drive

JOONDALUP WA 6027

Phone: 13 43 28

Fax: (08) 9300 1257

MOUNT LAWLEY CAMPUS

2 Bradford Street

MOUNT LAWLEY WA 6050

Phone: 13 43 28

Fax: (08) 9370 2910

SOUTH WEST CAMPUS

Robertson Drive

BUNBURY WA 6230

Phone: 13 43 28

Fax: (08) 9780 7800

ECU EMAIL and WEB ADDRESS

[email protected]

www.ecu.edu.au

2

ContEnts

SECTION 1: OVERVIEW

Statement of Compliance

Chancellor’s Foreword

Vice-Chancellor’s Executive Summary

About ECU

Organisational Structure

Committee Structure

Governance Structure

Work of the Governing Council

SECTION 2A: PERFORMANCE -

REPORT ON OPERATIONS

SECTION 2B: REPORT ON KEY

PERFORMANCE INDICATORS

Report Certification

16

34

35

SECTION 3: SIGNIFICANT ISSUES 44

SECTION 4: DISCLOSURES AND

LEGAL COMPLIANCE

Auditor General’s Statement

Certification of Financial Statements

Financial Statements

Additional Facts and Statistics

Other Financial, Government and

Legal Disclosures

47

48

51

52

127

130

9

10

11

14

6

7

8

4

5

LIST OF TABLES

Table 1. Student Load (EFTSL) by Course Award

Level, 2009-2013 21

Table 2. Student Load (EFTSL) by Funding

Category, 2009-2013

Table 3. Research Funding by Category,

2009-2013 ($m)

Table 4. Research Block Funding by Category,

2009-2013 ($m)

Table 5. Higher Degree by Research Student

Load, 2009-2013

Table 6. Financial Ratios, 2013

21

26

26

27

32

Table 7. Summary of Performance against

KPI Targets

Table 8. Retention Commencing Bachelor

Pass Student

36

37

Table 9. Undergraduate CEQ Course

Satisfaction 37

Table 10. Undergraduate CEQ Good Teaching

Scale 38

Table 11. Domestic Bachelor Course Level

Graduates in Full-time Employment 39

Table 12. Undergraduate Share of First

Preferences 39

Table 13. Teaching-related Expenditure per

Student Load

Table 14. Research Income

40

41

Table 15. Higher Degree Research Completions by level, total number and per 10

Academic FTE

Table 16. Research and Development

Publications per 10 Academic FTE

42

43

Table 17. Enrolments by Type of Attendance,

2009-2013 127

Table 18. Enrolments by Campus, 2009-2013 127

Table 19. Enrolments by Gender, 2009-2013

Table 20. Enrolments by Course Level, 2009-2013

127

128

Table 21. Onshore and Offshore International

Enrolments by Home Country Region,

2009-2013 128

Table 22. Enrolment Proportions by Equity

Group, 2009-2013

Table 23. Completions by Course Level, 2008-2012

Table 24: Major Capital Projects Completed, 2013

Table 25: Major Capital Projects in Progress, 2013

129

129

130

130

Table 26: Academic Staff by Contract Type, 2009-2013 131

Table 27: Professional Staff by Contract Type,

2009-2013 131

Table 28. Performance against 2013 Injury

Management Targets

Table 29: Advertising Expenditure, 2013

133

135

LIST OF FIGURES

Figure 1. ECU Organisational Structure as at 31

December 2013.

Figure 6. Higher Degree by Research Graduate

Satisfaction, 2008-2012

9

Figure 2. ECU Committees as at

31 December 2013.

Figure 3. Unit and Teaching Satisfation, 2009-2013

Figure 4. Graduate Satisfaction, 2008-2012

10

22

23

Figure 5. ECU Full-time Graduate Employment,

2010-2012 24

27

3

SECTION 1

OVERVIEW

STATEMENT OF COMPLIANCE

Hon Peter Collier MLC

Minister for Education

10th Floor, Dumas House

2 Havelock Street

WEST PERTH WA 6005

17 March 2014

Dear Minister

In accordance with section 61 of the Financial Management Act 2006 (WA), we hereby submit for your information and presentation to Parliament, the Annual Report of Edith Cowan University for the year ending 31 December 2013.

The Annual Report was prepared in accordance with the provisions of the Financial Management Act 2006 (WA) and is made in accordance with a resolution of the University’s Council.

Yours sincerely

The Hon Dr Hendy Cowan

Chancellor

On behalf of the University Council

Edith Cowan University

270 Joondalup Drive

JOONDALUP WA 6027

CHANCELLOR’S

FOREWORD

The University Council and the senior management of the University continue to work together to support the

University in achieving its objectives. I am grateful for the work of my fellow Council Members in providing a cohesive and effective governing body that interacts well with the senior management of the University.

The University, its students and staff achieved success in a number of areas. These achievements are highlighted within this Annual Report and it was a pleasure to hear of these successes at Council meetings throughout the year.

A number of key initiatives were progressed during 2013, including: z z

Construction of Building 34 - which is scheduled for completion in late 2014; z z

Planning for, and construction of, the ECU Health

Centre - which is expected to commence operations in

2014; z z

[email protected] For the Future, a major project which will see a number of significant improvements to the delivery of technology services across the University; z z

Progress against the University’s Reconciliation Action

Plan; z z

The introduction of a revised performance indicator framework against which the University’s ongoing performance will be measured; and z z

Further work on the ECU Foundation with good progress made against the University’s fundraising plan.

Council noted the continued high performance of ECU on measures of student and staff satisfaction. These survey results are only part of the information gathered by the University, and regular oversight by Council of a full range of indicators has confirmed that targets are being achieved, or substantial progress being made towards achievement.

Importantly, the University achieved its 2013 financial targets. The budget for 2014 was approved at the

December 2013 meeting of Council, and will provide a sound financial basis to support the strategic goals of the

University for 2014.

In looking ahead, it can be seen that the higher education sector is continuing to experience considerable change, in an environment of uncertain economic outlook and possible adjustments to higher education policy and funding. The reduced school-leaver cohort in 2015 in Western Australia is another factor that will have some impact on ECU, albeit that school leavers do not comprise the majority of ECU’s students. These matters have all been addressed by the University in its planning for 2014 and beyond.

Council is fortunate to have outstanding community and business leaders amongst its members and in

2013 Council was delighted to welcome Ms Denise

Goldsworthy as a member. Ms Goldsworthy brings extensive commercial experience to Council from her distinguished career within the resources sector. The re-appointments of Ms Denise McComish and Mr Simon

Holthouse, and the re-election of Ms Julien Proud ensured that Council retained the valuable insight and experience of these members.

It is an honour to continue to serve as Chancellor of ECU and to work with outstanding students, staff and Council members. As will be seen from the Annual Report, our students, staff and graduates continue to achieve great results.

The Hon Dr Hendy Cowan

Chancellor, March 2014

6

VICE-

CHANCELLOR’S

EXECUTIVE

SUMMARY

It has been a pleasure to witness the many successes resulting from the efforts of our students and staff, individually and jointly. A number of these achievements are highlighted under discussion of each Strategic

Priority in this report. Through our teaching, research and services to our communities, we actively contribute to improvements in the wellbeing, sustainability, prosperity and inclusivity of society.

Highlights during 2013 include: z z the award-winning app developed by ECU students to track the progression of Parkinson’s disease; z z the Friendly Schools Plus resource developed to help teachers combat cyber-bullying in schools; z z new glass developed to reduce transmission of unwanted radiation in sunlight and convert it into usable electrical energy; z z high-tech classrooms established at Ashdale

Secondary College transforming the way teacher education is taught; z z enhanced volunteering opportunities for students including the Australian Indigenous Mentoring

Experience; z z award-winning Journalism and Broadcasting students in the 2013 National Student Journalism Awards; z z award-winning WAAPA students and graduates; z z nursing students helping health workers in remote villages in South East Asia establish clinics whilst undertaking community placements in Thailand, Laos and the Philippines; and z z further research into Alzheimer’s disease and dementia and the treatment and prevention of serious illnesses such as cancer, through exercise.

At a time of apparently ever-increasing change locally and globally, during 2013 ECU worked strategically to be increasingly responsive to opportunities in timely ways. We have continued with extensive repositioning of the University to optimise and improve the quality and cost-effectiveness of our products and services. These changes include: z z in the Faculty of Business and Law, a re-focus of resource allocation on contemporary and strategically growing programs; z z extensive adjustments to our international operations have continued, particularly integration of the functions of student recruitment and admissions with their domestic counterparts to build the expertise to match

ECU’s academic capacity with the needs and interests of students from anywhere in the world; z z a rigorous new approach to supporting and monitoring course accreditation, designed to prevent accreditation issues and to maintain the high quality and good reputation of all ECU programs, including over 200 accredited courses; z z a major project to run for two to three years was started

- [email protected] for the Future. At a cost of several tens of millions of dollars, the outcome of this extensive enterprise change program will be to build capacity so that everyone at ECU has access to seamless, fast and reliable technology services; and z z work has continued for the third successive year in preparing the University for the anticipated likely reduction in revenue resulting from the half cohort in 2015. The approach has included significant reductions in continuing expenditure in out-years and also strategies to reduce liabilities during 2015 by, for example, reducing accumulated leave entitlements.

An indicator of the ongoing satisfaction of our students is the five-star ratings ECU has received for the fifth consecutive year for teaching quality, generic skills, and overall satisfaction, as published in the Good

Universities Guide.

ECU is making good progress towards achieving the University’s strategic priorities. As well as the positive impact of our research on humankind locally and globally, our community engagement has also been strengthened during 2013 with the launch of the

Volunteering at ECU project. We also continued our strategic focus on improved graduate employment outcomes in 2013 by revising the curriculum to further embed employability skills and through additional careers services and mentoring support to our students and graduates.

I look forward to my leadership role at ECU during

2014, working in partnership with my senior colleagues and members of the University Council under the wise guidance of our experienced Chancellor, the

Hon Dr Hendy Cowan. I thank him for his prodigious and continued efforts on behalf of the University and congratulate him on his re-election as Chancellor for an additional three year term.

Professor Kerry O. Cox

Vice-Chancellor, March 2014

7

ABOUT ECU

Edith Cowan University is a large, multi-campus institution serving communities in Western Australia and internationally. The University has two metropolitan campuses at Mount Lawley and Joondalup, and also serves Western Australia’s South West Region from a campus at Bunbury, 200 km south of Perth.

Granted university status in 1991, ECU offers innovative and practical courses across a wide range of disciplines and has a vibrant research culture with high quality researchers and research partners.

ECU works hard to develop productive and mutuallybeneficial partnerships with its varied stakeholders.

ECU has more than 23,300 students at undergraduate and postgraduate levels. Approximately 3,600 of these are international students originating from over 100 countries.

More than 320 courses are offered through four faculties: z z

Business and Law; z z

Health, Engineering and Science, z z

Education and Arts, which includes the Western

Australian Academy of Performing Arts (WAAPA); and z z

Regional Professional Studies.

ECU is committed to breaking down barriers to higher education through its school and community outreach activities, multiple entry pathways and flexible learning options.

STRATEGIC DIRECTION

Revisions to ECU’s strategic direction (Edith

Cowan University: Engaging Minds; Engaging

Communities. Towards 2020) were approved by

Council at its 13 December 2012 meeting. The document includes a ‘Purpose’, ‘Vision’, ‘Values’, and five ‘Strategic

Priorities’ as follows:

PURPOSE, VISION AND VALUES

Purpose

To further develop valued citizens for the benefit of

Western Australia and beyond, through teaching and research inspired by engagement and partnerships.

Vision

For our students, staff and graduates to be highly regarded internationally as ethical and engaged contributors to more inclusive, sustainable and prosperous communities.

Values

z z

Integrity – behaving ethically and pursuing rigorous intellectual positions z z

Respect – valuing individual differences and diversity z z

Rational Inquiry – motivated by evidence and reasoning z z

Personal Excellence – striving to realise potential

STRATEGIC PRIORITIES

1. To create positive outcomes in our communities through mutually beneficial engagement.

2. To deliver accessible world-class education and an enriching student experience.

3. To enhance the personal and professional outcomes of graduates.

4. To strengthen research capability, capacity, translation and impact.

5. To enhance organisational resilience, sustainability and reputation.

8

ORGANISATIONAL

STRUCTURE

University Council

Vice-Chancellor

Professor Kerry O. Cox

Vice-President

(Corporate Services)

Mr S Henderson

Deputy Vice-

Chancellor (Research and Advancement)

Professor J Finlay-Jones

Pro-Vice Chancellor

(Health Advancement)

Professor C Rudd

Finance & Business

Services Centre

(FBSC)

Mr B Francis

Chief Financial Officer

Facilities & Services

Centre (FSC)

Mr B Yearwood

Director

IT Services Centre

(ITSC)

Mrs E Wilson

Chief Information

Officer

Marketing &

Communications

Services Centre

Mrs J Tuner

Director

Office of Governance

Services

Mrs J Tracey

Director

Office of

Advancement

Dr A Medhurst

Director

Office of Research and Innovation (ORI)

Professor M Jones

Director

Graduate Research

School (GRS)

Professor J Luca

Dean

Pro-Vice Chancellor

(Equity and

Indigenous)

Professor C Hayward

Deputy Vice

Chancellor

(Academic)

Professor A Omari

Human Resources

Service Centre

(HRSC)

Mr R Bernstein

Director

Office of Legal

Services

Ms J Quinn

General Counsel

Planning, Quality and Equity Services

Centre

Mr A Lazzara

Director

Risk and Assurance

Services Centre

(RASC)

Mr P Draber

Director

Student Services

Centre (SSC)

Dr G Jackson

Director

Faculty of Regional

Professional Studies

(FRPS)

Ms L Farrell

Dean

Deputy Vice Chancellor

(Teaching, Learning and International)

Professor R Oliver

Centre for Learning and Development

(CLD)

Professor S Stoney

Head

Library Services

Centre (LSC)

Mr D Howard

University Librarian

International Office

(IO)

Professor G Shen

Dean

Pro-Vice Chancellor

(Engagement: Science,

Technology and Engineering)

Professor K Greenwood

Faculty of Health,

Engineering and

Science (FHES)

Professor K Greenwood

Executive Dean

Pro-Vice Chancellor

(Engagement:

Business, Law and Government)

Professor A Islam

Faculty of Business and Law (FBL)

Prof. A Islam

Executive Dean

Business

Law and Justice

Pro Vice-Chancellor

(Engagement:

Emirates)

Professor N Srinivasan

Computer and Security

Science

Engineering

Exercise and Health

Sciences

Medical Sciences

Natural Sciences

Nursing and Midwifery

Psychology and Social

Science

Pro-Vice Chancellor

(Engagement:

Communities)

Professor L Cohen

Faculty of Education and Arts (FEA)

Professor L Cohen

Executive Dean

Communications and Arts

WA Academy of

Performing Arts

(WAAPA)

Kurongkurl Katitjin

Education

Figure 1. ECU Organisational Structure as at 31 December 2013.

COMMITTEE

STRUCTURE

Council Executive

Resources Committee

Quality Audit and Risk Committee

Nominations Committee

Legislative Committee

Remuneration Committee

Governance Committee

Honorary Awards Committee

South West Campus (Bunbury)

Advisory Board

WA Academy of Performing Arts Board

ECU Foundation Board

Fees Allocation Committee

Figure 2. ECU Committees as at 31 December 2013.

University Council

Academic Board

Academic Services Committee

Legislative

Sub-commitee

Curriculum Teaching and Learning

Committee

Research and Higher Degrees

Committee

Student Appeals Committee

Human Research Ethics Committee

Animal Ethics Committee

Provides advice and reports for noting

Vice Chancellor

Vice-Chancellor’s Planning and Management Group

Equity Committee

Disability Access and Inclusion

Sub-commitee

Indigenous Consultative

Committee

Indigenous Employment

Sub-committee

Vice-Chancellor’s Student Advisory

Forum

Occupational Safety and Health Policy

Committee

Institutional Bio-safety

Committee

Radiation Biosafety Committee

Faculty/Service Centre OSH

Committees x9

GOVERNANCE STRUCTURE

COUNCIL MEMBERSHIP 2013

Member

Chancellor (ECU Act, section 12(1))

Hon Dr Hendy Cowan

Term

01.01.2014 – 31.12.2016

01.01.2011 – 31.12.2013

01.01.2008 – 31.12.2010

01.01.2005 – 31.12.2007

Members appointed by the Governor (ECU Act, section 9(1)(a))

Mr Eddie Bartnik 12.06.2012 – 11.06.2015

Mr John Cahill

Ms Leslie Chalmers

09.08.2011 – 08.08.2014

27.04.2011 – 26.04.2014

27.04.2008 – 26.04.2011

12.04.2005 – 26.04.2008

Hon Dr Hendy Cowan

In his capacity of Chancellor, Dr

Cowan attended all ECU Council meetings during 2013 (see above)

Mr Kempton Cowan

31.01.2010 – 30.01.2013

01.03.2007 – 30.01.2010

01.03.2004 – 28.02.2007

Dr Pamela Garnett

Ms Denise Goldsworthy

19.12.2012 – 18.12.2015

20.12.2009 – 19.12.2012

20.12.2006 – 19.12.2009

20.09.2012 – 19.09.2015

22.09.2009 – 21.09.2012

30.04.2013 – 29.04.2016

Date term commenced / ended

Current

Current

Current

Current

Term ended

31.01.2013

Current

Current

Term commenced

30.04.2013

Council meetings attended*

6

N/A

3(5)

4

4(4)

6

4

4

Member

Dr Norman Ashton

Term

Council meetings attended

Member nominated by Minister charged with administration of the School Education Act 1999 (WA)

(ECU Act, section 9(1)(aa))

30.08.2011 – 29.08.2014

30.08.2008 – 29.08 2011

30.08.2005 – 29.08.2008

Date term commenced / ended

Current 2(3)

Chief Executive Officer – ex-officio (ECU Act, section 9(1)(b))

Professor Kerry O. Cox Ex-officio Current 6

Academic Staff – elected (ECU Act, section 9(1)(c))

Associate Professor Ute

Mueller

01.10.2012 – 30.09.2015

16.05.2011 – 31.09.2012

Professor Mark Stoney 01.10.2012 – 30.09.2015

Mr Mattan Kipps 10.10.2013 – 09.10.2014

Current

Current

Salaried Staff, Other than Academic Staff – elected (ECU Act, section 9(1)(d))

Ms Valentina Bailey 01.10.2012 – 30.09.2015

01.10.2009 – 30.09.2012

01.04.2009 – 30.09.2009

Current

Enrolled Students – elected (ECU Act, section 9(1)(e))

Mr Peter Blakers 10.10.2012 – 09.10.2013

Term ended

09.10.2013

Mr Harinderjit Gill 10.10.2013 – 09.10.2014

Term commenced

10.10.2013

Term commenced

10.10.2013

Ms Nadia Louw 10.10.2012 – 09.10.2013

Term ended

09.10.2013

6

6

4

4(4)

1(2)

2(2)

3(4)

Member Term

Alumni – elected (ECU Act, section 9(1)(f))

Mr Brad McManus 22.12.2011 – 21.12.2014

Ms Julien Proud 20.09.2013 – 19.09.2016

20.09.2010 – 19.09.2013

01.04.2009 – 19.09.2010

Members co-opted by Council (ECU Act, section 9(1)(i))

Ms Janet Curran 20.09.2012 – 19.09.2015

20.09.2009 – 19.09.2012

Ms Kelly Hick

Mr Simon Holthouse

Ms Denise McComish

(Pro-Chancellor since

25.08.2011)

Dr Saliba Sassine

18.03.2012 – 17.03.2015

12.09.2013 – 11.09.2016

12.09.2010 – 11.09.2013

12.09.2007 – 11.09.2010

22.03.2013 – 21.03.2016

22.03.2010 – 21.03.2013

22.03.2007 – 21.03.2010

17.11.2012 – 16.11.2015

25.08.2011 – 16.11.2012

Date term commenced / ended

Current

Current

Current

Current

Current

Current

Current

Council meetings attended

6

5

6

4

3(5)

*

Council held six regular meeting during the year. The bracketed figures indicate the potential number of attendances for members whose term of office did not cover the full year, or who had leave of absence during the year.

Additional Council membership information can be viewed at Members of Council.

5

5

13

WORK OF THE GOVERNING COUNCIL

ECU’s enabling Act provides that the Council is the governing authority of the University. The fundamental responsibilities of the Council are to determine the strategic direction and governance framework of the

University. The Council is chaired by the Chancellor, the Hon Dr Hendy Cowan, and consists of the Vice-

Chancellor (ex-officio) and members drawn from the community and the University’s alumni, students and staff. Council members fulfil an important duty for the

University and the community and do so on an honorary basis.

The major activities of Council fall into five categories: z z

Determining the strategic direction of the University; z z

Management/oversight of the Vice-Chancellor; z z

Self-governance of the Council and its various subcommittees; z z

Providing governance of the University; and z z

Ensuring compliance with the ECU Act and all other relevant legislation and statutes.

The Council met on six occasions during 2013.

STRATEGIC DIRECTION OF THE

UNIVERSITY

z z

Major strategic issues considered by Council in 2013 included: z z

IT @ECU for the Future – project report; z z

Briefings on the performance of each of the four faculties; z z

Annual report against the Reconciliation Action Plan,

2012-2015; z z

2013 Audit Operational Plan; z z

ECU Performance Indicator Framework - themed reports on Teaching and Learning; Capacity and

Community Responsiveness; and Research; z z

Report on the Office of Advancement; z z

Implications of the outcome of the Federal election; and z z

ECU Key Actions for 2014.

To inform and enhance Council’s role in shaping the strategic direction of the University, presentations were provided to Council on key issues and themes, including: z z

Enrolment Functional Plan; z z

Engagement Functional Plan (subsequently rescinded); z z

Research and Research Training Functional Plan; z z

Teaching and Learning Functional Plan; and z z

Commercialisation of Research.

At its December 2013 meeting, Council considered and approved the Budget for 2014.

OVERSIGHT OF THE VICE-

CHANCELLOR

Council received a report from the Vice-Chancellor at each Council meeting. This report included strategic advice and matters for information. In addition, the

Vice-Chancellor reported to Council on the University’s performance against its Key Performance Indicators and its Targets, as well as on the University’s progress against the Key Actions which Council had set for the year.

Council approved the Vice-Chancellor’s Performance

Agreement for 2014. Through its Remuneration

Committee, Council also received a report on the

Vice-Chancellor’s Performance for 2012, and set the remuneration for the Vice-Chancellor for 2013.

SELF-GOVERNANCE OF THE COUNCIL

ECU’s

Corporate Governance Statement assists current and commencing members of Council, executive management and senior staff of the University in carrying out their roles. It also helps to inform students and staff of the broader University community about governance processes at the University, and serves a similar purpose for the external community, including stakeholders such as governments.

In addition, ECU’s governing Council has affirmed a commitment to monitor its performance against the

Voluntary Code of Best Practice for the Governance of Australian Universities and the Tertiary Education

Quality Standards Agency Threshold Provider

Standards.

Each year Council undertakes a self-evaluation and in

2013 an online questionnaire asked members to assess their own performance and that of Council as a whole.

An independent reviewer received the responses and prepared a report for the Chancellor.

The report confirmed that governance remains robust at

ECU, with the skills and expertise of Council members, the leadership of the Chancellor, the monitoring of delegated responsibilities, and Council’s working relationship with the Vice-Chancellor highlighted as particular strengths. The work of Council committees was also considered to be highly effective, as was the logistical and practical support offered to Council.

14

GOVERNANCE OF THE UNIVERSITY

Key Council activities in 2013 relating to the governance of the University included: z z

Regular meetings of Council committees. Reports from these committees were subsequently provided to Council to keep it informed of activities across the academic and operational areas of the University.

z z

The Vice-Chancellor provided mid-year and end-ofyear reports on the performance of the University against its key performance indicators.

z z

In June and December 2013, the Vice-Chancellor reported on progress against the Key Actions for 2013, as previously approved by Council; z z

One Statute was amended and gazetted; z z

Council approved an amended Guild Constitution; z z

Amendments were made, as requested, to University

Rules; and z z

All members of Council were offered professional development opportunities throughout the year.

COMPLIANCE

The 2012 Annual Report was approved by Council and submitted to the Western Australian Minister for

Education in accordance with the required timelines.

The Council’s monitoring of the University, particularly through the Resources Committee and the Quality, Audit and Risk Committee, provided assurance to Council that the University has in place appropriate risk management, financial and quality controls.

At its August 2013 meeting, Council reviewed TEQSA’s

Provider Threshold Standards as they pertained to governance and noted that the University complied with the Standards.

The Voluntary Code of Best Practice for the Governance

of Australian Universities (Item 14) requires that a university should disclose in its annual report its compliance with the Voluntary Code of Best Practice and provide reasons for any areas of non-compliance.

At its August 2013 meeting, Council confirmed that it continued to comply with the Voluntary Code of Best

Practice. Council is satisfied that the University is compliant with the new Code of Best Practice.

SECTION 2A

PERFORMANCE - REPORT ON OPERATIONS

strAtEgiC Priority onE: to CrEAtE PositivE oUtComEs in oUr CommUnitiEs throUgh mUtUAlly bEnEFiCiAl EngAgEmEnt

PUBLIC LECTURES

Several public lectures were held at ECU in 2013.

Australian of the Year, Ita Buttrose AO spoke at the Joondalup Campus in July on the ‘dementia epidemic’ in Australia and the need for more research in this area. In November, The Right Honourable the

Lord Mayor of Perth Lisa Scaffidi delivered the 2013

Vice-Chancellor’s Distinguished Oration and outlined her vision for Perth as an important economic centre, and a city strong in arts and culture.

ECU SHOWCASE

Approximately 100 high school students attended the Joondalup and Mount Lawley campuses to participate in a week-long series of ECU showcase events in December 2013 aimed at building aspiration for higher education. Students from low socio-economic status backgrounds attended, including students from the Pilbara, Albany and

Bunbury regions, in addition to those from the

Metropolitan area. Students were able to experience life as a university student and participate in workshops in a range of academic streams.

REDEVELOPMENT OF JOONDALUP

PINES

The outdoor cinema at the Joondalup Campus was upgraded in time for the beginning of the 2013

Lotterywest film season. The theatre and Edith

Cowan House area are now available for use by the

University and community groups outside the film season.

TACKLING CYBER BULLYING

ECU’s Child Health Promotion Research Centre launched Friendly Schools PLUS in May, a resource giving teachers the skills to combat cyber-bullying.

It is the first anti-bullying strategy for schools to be based on extensive research, and draws on 13 major research projects conducted over 15 years involving

27,000 Australian school students.

LABRATS

The Joondalup Campus hosted more than 300 secondary school students over three days for the

2013 LabRats community engagement initiative. This annual event provides an opportunity for students to visit the Campus and participate in hands-on science workshops led by ECU’s Faculty of Health,

Engineering and Science.

PARKINSON’S APP

Computer and Security Science student Jose

Alvarado worked with IT engineer Robert Broadway on a tablet app that tracks the progression of

Parkinson’s disease. Mr Alvarado won both a WA

Information Technology and Telecommunications

Award (WAITTA) and a national iAward for his work in ensuring the security of the medical data in the app, which is backed up to the cloud.

highlights

ECU’S KEY ENGAGEMENT OUTCOMES

IN 2013

The University’s governing Council approved one key action relating to this Strategic Priority for 2013.

Action: Enhance ECU engagement activities by implementing the Wanneroo GP Super Clinic, to position ECU as a major innovator in health.

The University Council approved the facility’s name as “ECU Health Centre” at its February 2013 meeting.

Construction of the building commenced in January

2013. The building is on budget and on schedule to be ready for occupation by mid-2014. Negotiations for tenancy agreements within the ECU Health Centre have commenced and are expected to continue into 2014.

17

18

ECU’S STRATEGIC FOCUS ON

ENGAGEMENT

Significant work was undertaken by the University in recent years to embed engagement across all core functions of the University and there is clear evidence of success. As a result, ECU’s Council rescinded the Engagement Functional Plan, 2011-

2013 at the conclusion of its term in 2013. All ongoing and outstanding engagement initiatives have been incorporated into the functional plans for teaching and learning, research and research training, and into the operational plans of faculties and service centres.

The University’s engagement activities continued to be overseen by five Pro-Vice-Chancellors with engagement responsibilities: z z

Professor Lynne Cohen, Pro-Vice-Chancellor

Engagement (Communities); z z

Professor Ken Greenwood, Pro-Vice-Chancellor

Engagement (Science, Technology and Engineering); z z

Professor Colleen Hayward AM, Pro-Vice-Chancellor

(Equity and Indigenous); z z

Professor Atique Islam, Pro-Vice-Chancellor

Engagement (Business, Law and Government); and z z

Professor Cobie Rudd, Pro-Vice-Chancellor (Health

Advancement).

During 2013, the part-time position of Pro-Vice

Chancellor Engagement (Emirates) was created by the University’s Council to continue to encourage the development of programs in Dubai with Emirates Airlines and Group. This position will be filled for the next three years by Professor Nara Srinivasan, in addition to his existing duties as Professor of Security and Risk within the School of Computer and Security Science.

Engagement initiatives progressed during 2013 included: z z

A wide range of outreach activities and projects with community stakeholders and partners, supported and co-ordinated by ECU’s Engagement Unit, in collaboration with ECU’s faculties.

z z

Strategies, policies and procedures to support fundraising and alumni relationships, developed and implemented by ECU’s Office of Advancement.

z z

School engagement, including activities, projects and sporting events and articulation work with registered training organisations to build transition pathways between the Vocational Education and Training and

Higher Education sectors.

z z

Continued development of over 100 mutuallybeneficial partnerships, including those through the

Bunbury Education Precinct, the Joondalup Learning

Precinct, the ECU Health Centre, and the Smith

Family.

18

strAtEgiC Priority tWo: to dElivEr ACCEssiblE World-ClAss EdUCAtion

And An EnriChing stUdEnt ExPEriEnCE

FIVE-STAR RATING

For the fifth year in a row ECU received five-star ratings for teaching quality, overall satisfaction and generic skills, as compiled by The Good Universities

Guide from a national survey of recent university graduates.

VIDEO CLASSROOMS

Two new high-tech classrooms, co-funded by, and operated in conjunction with, ECU, were installed at

Ashdale Secondary College. The classrooms are equipped with video cameras, microphones and an observation room, to enhance skills development for

ECU pre-service teachers and Ashdale’s teachers.

GLOBAL INDUSTRY CHAMPION

Advertising Course Co-ordinator Diane Slade was named as a “champion of industry” by the

International Advertising Association (IAA). She was the only Western Australian amongst 56 individuals from 25 countries recognised by the IAA for leadership and vision, and commitment to excellence in communications.

OFFICE OF LEARNING AND

TEACHING CITATIONS

Two ECU staff were named as 2013 Citation winners by the Australian Government’s Office of Learning and Teaching. Learning Skills Adviser Joanna Ashton and Centre for Learning and Development Project

Manager James McCue were recognised for their outstanding contributions to student learning.

JACK THOMPSON LENDS A HAND

Celebrated Australian actor Jack Thompson was a guest of ECU in 2013. He shared his expertise with

WAAPA students in the Acting for Camera master classes and in the Tool Box - Secrets of Filmmaking sessions at the WA Screen Academy.

ECU’S ECU’S KEY TEACHING AND

LEARNING OUTCOMES IN 2013

The University’s governing Council approved two key actions for this Strategic Priority for 2013.

Action: Continue to expand e-learning and increase flexibility in programs as part of further implementation of the Curriculum Framework

The Online Project is funded through the ECU Strategic

Initiative Fund and commenced in 2012. Five new online courses are under development through this project and a further three are planned, totalling 96 new units. In addition the Online Project will support enhancing and upgrading of five existing online course offerings across the faculties, totalling 43 revised units.

The expansion of e-learning has continued across the University with the development of the Bachelor of Education (Primary and Early Childhood) and the

Masters of Social Work as online offerings from 2014.

Initiatives undertaken to improve the flexibility of programs have resulted in a steady increase in the proportion of student load studied in online mode (from

12 per cent in 2009 to 20 per cent in 2013). There were

1800 new enrolments into online units in 2013.

highlights

19

Action: Further embed internationalisation of the curriculum and core operations of the University

ECU secured over $300,000 in AsiaBound funding for 2013-2014. The Australian Government program supports practicums, clinical placements, internships, research trips and volunteer projects, as well as institution-based study for up to two semesters. In addition, up to $20,000 of funding was made available to

ECU PhD students to facilitate mobility activities as part of their research studies.

Study abroad opportunities for ECU students include activities that receive academic credit, such as practicum placements, exchange programs, and study tours. There were more than 500 exchange and study tour students in

2013, with 90 exchange partners.

All ECU undergraduate courses and postgraduate coursework courses now include learning outcomes relating to global perspectives and international awareness. The Australian Qualifications Framework

(AQF) Compliance Project will support the development of these capabilities through deliberate learning activities and assessment strategies.

Resources to help ECU staff incorporate internationalisation into the curriculum were developed and delivered as a component of ECU’s Role Based

Development Framework.

In order to increase the number of international PhD students at ECU, new partnerships with international institutions and scholarship funding schemes were developed in 2013. These include agreements with the

Vietnamese government and the China Scholarship

Council. In addition, the University approved a Joint

Doctor of Philosophy policy, which will enable the delivery of joint degree programs with universities outside Australia.

ECU’S STRATEGIC FOCUS ON

TEACHING AND LEARNING

ECU has two functional plans that outline initiatives, actions, timeframes, responsibilities and performance measures for the achievement of the University’s goals in teaching and learning.

The Enrolment Functional Plan, 2012-2014 includes activities relating to marketing, teaching, student support and partnership building. ECU has made significant progress in growing enrolments and increasing access and participation by under-represented groups. The

Teaching and Learning Functional Plan, 2014-2016

promotes a number of elements that will keep learning and teaching strategies and directions strongly aligned with ECU’s Purpose and Vision. This includes strategies to further develop internationalisation within the curriculum and develop the capacity and capability to use technology to provide flexible and enhanced learning opportunities for students.

Student Recruitment

In 2013 ECU launched its new campaign “That’s How

University Should Be”, which included television, radio, outdoor signage, train and bus advertising, and digital advertising. The integration of digital marketing into overall marketing activity grew significantly in 2013.

Growth continued across the social media channels:

ECU’s Future Students’ Facebook page acquired 26,000 fans by November 2013, a 100 per cent increase on the same time last year. In 2013, Facebook fans have grown by an average of nearly 1,000 fans per month.

Twitter followers grew to 2,465 (a 45 per cent increase),

YouTube video views grew to 194,300 (a 75 per cent increase) and LinkedIn Company Page members grew to 3,112 members (an 85 per cent increase).

Overall, there were 60,000 prospective student enquiries from within Australia (a growth of 11 per cent on 2012), and over 1 million visitors to the future students website

(a growth of 27 per cent on 2012).

A number of school engagement activities were undertaken in 2013, supported by funding through the

Australian Government’s Higher Education Participation and Partnership Program. These included a wide variety of initiatives in partnership with primary and secondary schools, and with young people from disadvantaged communities. The initiatives are intended to support learning and foster aspirations for higher education for all those with the ability and motivation to study.

Student Admissions

ECU undertook a program of review and structural reform during 2013 to significantly improve its student recruitment capability. International student recruitment is now located with domestic student recruitment in the Marketing and Communications Services Centre, consistent with the “One University: Students First” philosophy. The University is also investing in the development of a strategic business development capability to improve the return on investment of student recruitment activities and to grow the number of onshore students participating in undergraduate and postgraduate programs.

Enrolments

Full-year total student load for 2013 was estimated to be

17,680 Equivalent Full Time Student Load (EFTSL), a decline of 2.5 per cent from 2012 (18,131 EFTSL).

ECU experienced stable Commonwealth-supported student load in 2013. The introduction of student demand driven funding for Commonwealth-supported places in 2012 has had minimal impact in Western Australia, where little growth in domestic student numbers is evident. This reflects the historically lower levels of unmet demand for higher education in Western Australia.

The reduction in total student load is attributable to

ECU’s strategic consolidation of international offshore activities and a fall in onshore international students due to sector-wide issues related to policy changes for student visas, the strong Australian dollar and increasing competition from other international education provider countries and from countries that previously were a source of international students.

20

The following tables show ECU’s student load for the period 2009-2013 by course award level and by funding categories.

Table 1. Student Load (EFTSL) by Course Award Level, 2009-2013

Doctorate by Research

Doctorate by Coursework

Masters by Research

Masters by Coursework

Postgraduate/Graduate Diploma

Postgraduate/Graduate Certificate

Bachelor

Sub-Bachelor

Enabling and Other

Vocational Education and Training

Total

Notes: 2013 data is as at 14/02/2014.

Table 2. Student Load (EFTSL) by Funding Category, 2009-2013

2009

302

25

78

2010

336

20

99

2011

347

14

108

2012

351

11

106

2013

325

4

95

2,348

792

271

2,181

842

277

1,583

833

275

1,415

855

284

1,425

806

277

12,523 13,725 14,116 13,951 13,641

111 108 85 69 40

630 687 562 606 622

446 488 477 483 445

17,526 18,763 18,400 18,131 17,680

Commonwealth Grant

Domestic Tuition Fee

Fee-paying International on-shore

Fee-paying International off-shore

Research Training Scheme / ECU Funded

Vocational Education and Training

Total

N

otes: 2013 data is as at 14/02/2014.

2009 2010 2011 2012 2013

11,360 12,657 12,995 13,002 12,902

731

2,645

2,055

286

792

2,732

1,767

325

963

2,594

1,034

337

1,049

2,379

878

340

1,094

2,307

631

301

449 490 477 483 445

17,526 18,763 18,400 18,131 17,680

Retention

ECU has committed significant resources to improving the retention of students through additional student support, such as the Connect for Success program. This

University-wide initiative offers specialised services and additional support as required, for students to progress in, and to complete, their studies.

During 2013, orientation modules such as Balancing

Life and Uni, Essential study skills and Basic computing

skills were made available online and video information was embedded in the ECU website and on Youtube. The

Student Guide, which provides orientation and transition information, is now also available electronically.

Peer mentoring has also been used as a successful retention strategy, to positively influence a student’s experience and to build academic and social networks, particularly during the crucial first year of study. The ECU

Retention and Persistence Transition Support (RaPTS) initiative is one such example and mentee numbers increased across most areas of the University in 2013. A number of successful ECU school-based peer mentoring programs were also available.

Peer support continued to be provided to postgraduate research students through the Graduate Research

School’s Support-Opportunities-Advice-Resources

(SOAR) Centre. Since 2009, 46 SOAR Ambassadors have been employed on a casual basis to provide cultural, academic and campus transition support to

Higher Degree by Research and Bachelor Honours students.

The 2013 retention rate for ECU students who commenced in 2012 increased slightly compared with the previous year’s results (see Report on Key

Performance Indicators beginning on page

34).

21

New Course Offerings in 2013

ECU regularly renews its course offerings to maintain an academic profile that is contemporary and continues to reflect the needs of the communities it serves. New courses introduced in 2013 included: z z

University Preparation Course (Engineering and

Technology); z z

Bachelor of Arts (Acting); z z

Bachelor of Engineering (Chemical); z z

Bachelor of Medical Science; z z

Bachelor of Performing Arts; z z

Graduate Certificate in Patient Safety and Clinical Risk; z z

Masters of Midwifery Practice; z z

Masters of Psychology (Community); z z

Masters of Teaching (Secondary); and z z

Doctor of Health Science (Clinical Leadership and

Management).

Student and Graduate Satisfaction

ECU continued to perform well on the key indicators of teaching excellence, as measured by the national

Course Experience Questionnaire (CEQ) of graduates and through ECU’s own online Unit and Teaching

Evaluation Instrument (UTEI) and mid-course CEQ survey, that gauge the satisfaction of current ECU students.

Student satisfaction with teaching quality and with unit content (as measured by the UTEI) slightly decreased in 2013, but continued the trend of high results over the time-series.

Figure 3. Unit and Teaching Satisfation, 2009-2013

65.0

60.0

55.0

50.0

45.0

40.0

Teaching Quality

Unit Content

35.0

2009

2010 2011 2012 2013

Year

Notes: Mean overall satisfaction is measured on a scale of -100 to +100. The measure includes all ECU student cohorts and all coursework units.

In the latest CEQ survey results, ECU was ranked 11 th

nationally for Overall Course satisfaction. On Good Teaching satisfaction ECU was ranked 4 th

nationally and was the second highest rank of all WA universities. On Generic Skills satisfaction ECU was ranked 9 indicators.

th

nationally. ECU was consistently above the State and national averages for these

22

Figure 4. Graduate Satisfaction, 2008-2012

100

95

80

75

90

85

70

65

60

55

Overall Satisfaction

Generic Skills

Good Teaching

50

2007

2008 2009 2010 2011

Year of Survey

Notes: The three measures record the percentage of ECU Bachelor level graduates who, in responding to the relevant Course Experience

Questionnaire survey items ‘agree’ with those statements. The percentage agreement is the percentage of responses that are 4 (agree) and 5

(strongly agree) on the five-point Likert scale. This is a departure from previous years, which reported ‘broad agreement’ for these measures. This change is in keeping with the usual method of measurement across the Higher Education sector.

The University Experience Survey (UES) was conducted at all Australian universities for the second time in

2013. The satisfaction of undergraduate students was measured across five focus areas and in four of these

(Skills Development, Teaching Quality, Student Support, and Learning Resources) ECU’s results were in the top

10 of Australian universities.

ECU’s learning environment and support for student learning is also evaluated through the ECU Student

Services and Facilities Feedback Evaluation (SSAFE) survey, which is conducted biennially. The latest SSAFE survey was conducted in late 2013 and an internal summary report and action report will be prepared in early 2014 to help inform improvement plans by relevant service centres and faculties.

Additional data on course satisfaction and quality of teaching, including comparison with State and national benchmarks, can be found in the Report on Key

Performance Indicators beginning on page

34.

strAtEgiC Priority thrEE: to EnhAnCE thE

PErsonAl And

ProFEssionAl oUtComEs oF grAdUAtEs

VOLUNTEERING AT ECU PROJECT

The Volunteering at ECU project was launched in May 2013 and provides opportunities for ECU students to volunteer to improve their employability skills through community engagement. To date almost 400 ECU students have registered for volunteering opportunities through the new Volunteering Hub and website.

ECU students have been involved in a range of volunteering programs including the Australian

Indigenous Mentoring Experience (AIME), where

34 ECU students have mentored 94 Indigenous high school students and ECU Mates, where 150

ECU students have mentored 150 high school students from a low socio-economic status background.

highlights

ECU’S KEY GRADUATE EMPLOYMENT

OUTCOMES IN 2013

The University’s governing Council approved one key action for this Strategic Priority for 2013.

Action: Implement improvement strategies for workplace integrated learning, careers, volunteering and student leadership to support improvements in graduate employment outcomes at all course levels

ECU closely monitors results from the Graduate

Destination Survey, which provides data on the type of work, further study and other post-study activities graduates are involved in. ECU’s graduate full-time employment rate in the 2012 Graduate Destination

Survey showed a slight improvement of 2.7 percentage points when compared to the previous year’s result.

However further improvement is required and in

December 2012, in acknowledgement of the need for a renewed focus on graduate outcomes, an additional

Strategic Priority was established.

ECU is continuing to develop new approaches to improve its graduate employment outcomes through a range of strategies embedded in the curriculum and provided through support and service structures. Some of these are outlined below.

ECU’s Careers and Leadership Service Unit, established in 2013, engaged with key stakeholders to develop appropriate career-based programs for ECU students and graduates. This included career events, presenting workshops to cohorts of students and the Volunteering at

ECU project.

ECU Career Advisors from the Unit also engaged academics in each of the faculties through the academic mentoring program and trained mentors to improve the employability skills of students from their first to their final year.

As part of the Australian Qualifications Framework

(AQF) Compliance Project, ECU courses are assessed for course-level learning outcomes and ECU’s focus on graduate employability outcomes (including workplaceintegrated learning) is incorporated into this work. Using the Blackboard Outcomes module, work continued in

2013 to map course-level outcomes to core units and to gather evidence to support how students will achieve these outcomes.

Analyses of ECU graduate outcomes conducted in late 2012 (via a telephone survey and also the Beyond

Graduation Survey results) confirmed that graduate employment levels improved considerably between four months and 12 months post-graduation and that over the longer term, ECU graduate employment rates are at the sector average.

Figure 5. ECU Full-time Graduate Employment,

2010-2012

80

75

90

85

70

65

60

55

Sector Average

Full-time Employment

50

2010 2011

Year

2012

Notes: The measure reported is the Bachelor-level domestic graduates who are working full-time, as a proportion of those in, or available for, full-time work. ‘Available’ means those who are seeking full-time work, but are either not working, or are working part-time. This is a slightly amended measure compared with that of previous years, which excluded from the denominator those seeking full-time work if they were also prepared to consider part-time work. This brings ECU’s measure into line with others in the sector, however only a three-year time series is available.

24

stratEgiC Priority FoUr: to strEngthEn rEsEarCh

CaPability, CaPaCity, translation and imPaCt

ECU’S KEY RESEARCH AND RESEARCH

TRAINING OUTCOMES IN 2013

The University’s governing Council approved one key action for this Strategic Priority for 2013.

Action: Attain the actions set for 2013 in the

Collaborative Research Networks (CRN) funding for ECU, and continue to build areas of research concentration, depth and impact.

The Collaborative Research Networks (CRN) program is an Australian Government initiative to assist universities to develop research capacity through sustained collaborations.

ECU’s six sub-projects within the CRN network progressed well towards completion of their objectives and outcomes. These objectives and outcomes are measured by 14 Key Performance Indicators (KPIs) within the CRN agreement and the majority have already been achieved or targets exceeded, while the remaining

KPIs are likely to be achieved by the revised end date of the CRN agreement (May 2016).

The collaborative relationship between iVEC @ ECU and the CRN sub-projects continued to be developed with new infrastructure and support being provided (e.g. data storage).

SEAGRASS AS BLUE CARBON

STORAGE

A study by ECU’s Centre for Marine Ecosystems

Research found there could be more than 150 million tonnes of carbon stored in more than 92,500 km

2

of seagrass around Australia’s coastline. The study is one of the first to examine the blue carbon storage capacity of

Australia’s seagrass meadows.

LASER-GUIDED HERBICIDES

The Photonic Weed Detection System is set to change the way farmers kill weeds, reducing herbicide use by up to 75 per cent and eliminating the need to blanket spray crops. The system, developed by ECU and the Photonic

Detection Systems (PDS) Pty Ltd, uses lasers to target and spray weeds within crops with extreme accuracy.

LANDMARK SEx OFFENDER

STUDY

Foundation Chair in Social Justice, Professor

Caroline Taylor AM led a landmark study of WA’s sex offender registry. The website is the first of its kind in Australia and one of only a handful of public sex offender registries in the world. The study aims to quantify the effectiveness of the website from the community’s point of view.

highlights

The central CRN team will sponsor more interstate

HDR students (one per sub-project) to attend the 2014

Inspire Summer School. This event is an inter-university summer school bringing together postgraduate students from the five WA universities to promote high quality, collaborative and interdisciplinary research.

By the end of 2013, 66 journal articles had been published or submitted for publication and 21 of the 72 grant proposals submitted were successful.

ECU’S STRATEGIC FOCUS ON

RESEARCH AND RESEARCH TRAINING

Research Profile

ECU seeks to be recognised for high impact research providing social, economic, environmental and cultural benefits, with eleven identified areas of research priority: z z

Medical and Health Sciences z z

Biological and Environmental Sciences z z

Language, Communication and Culture z z

Studies in Creative Arts and Writing z z

Education z z

Engineering z z

Law and Legal Studies z z

Commerce, Management, Tourism and Services z z

Built Environment and Design z z

Security z z

Indigenous Studies

25

ENGAGED RESEARCH

ECU and Tropiglas Ltd collaboration

Professor Kamal Alameh and his team have developed an innovative transparent film embedded into glass that deflects ultraviolet light and captures and converts it into electrical energy. The glass is currently being trialled in the new Government Communications and

Information Systems office building in Pretoria,

South Africa.

www.ecu.edu.au/community/partnerships/ science/selective-sunshade-glazing-project

Spotting risks in the workplace

School of Business researcher, Dr Sue Bahn, is the inventor of the Riskspotter© tool, that trains staff to identify and rectify occupational, safety and health risks in the real world. The tool has application across the global mining, construction and industrial production sectors and beyond, potentially improving the work safety environment for tens of thousands of workers.

www.ecu.edu.au/schools/business/ research-activity/projects/riskspotter/about

Research Leadership

ECU continued to build a rich research culture in 2013 by implementing multiple new initiatives designed to engage and support researchers.

A comprehensive program of Master Classes for researchers was implemented in 2013, providing professional development opportunities such as: expanding their networks; improving their grant writing skills; and planning for a successful career in research.

For the first time, two Research Orientation (You, your

research and ECU) sessions were delivered to inform researchers about the many support services available to them at ECU.

ECU students and staff , as well as members of the community, attended the inaugural Inspirational Leaders

Seminar series. Speakers were Denise Goldsworthy

(then incumbent Chief Commercial Officer, Rio Tinto

Autonomous Haul Trucks), Dr Carolyn Patteson

(Executive Manager, Computer Emergency Response

Team (CERT) Australia), and The Right Honourable the

Lord Mayor of Perth, Lisa Scaffidi.

Table 3. Research Funding by Category, 2009-2013 ($m)

Building research collaborations is a priority for ECU and this initiative is being supported through the ECU

Capability Enhancement Scheme, designed to provide seed funding to assist researchers to visit collaborators’ research institutes, or to invite them to ECU. More than $70,000 was dispersed in the first round of this competitive funding in 2013.

Research Funding

Total research income in 2013 is likely to exceed that achieved in 2012 ($15.4 million), based on unaudited figures as at February 2014 ($16.3 million). The

Australian Government’s total research block grant allocation for 2013 was $8.3 million.

National Competitive Research Grants

Other Public Sector Research Funding

Industry and Other Funding

Co-operative Research Centre Funding

2009

2.91

7.71

2.01

0.18

2010

2.75

8.30

4.21

0.05

2011

2.80

8.40

4.55

0

2012

2.99

6.32

4.92

1.19

2013

2.99

6.96

4.91

1.40

Total 12.81

15.31

15.75

15.43

16.26

Notes: the 2013 income figures unaudited as at 20/02/2014. Further analysis is also required based on the latest HERDC guidelines, which might alter research funding by category income for 2013. The 2012 income figures are final (audited) and differ from the provisional figures reported in the Annual Report for 2012.

Table 4. Research Block Funding by Category, 2009-2013 ($m)

Joint Research Engagement Program

Research Training Scheme

Research Infrastructure Block Grant

Sustainable Research Excellence

Total

2009

1.87

4.38

0.39

6.63

-

2010

2.03

4.41

0.37

0.45

7.27

2011

2.19

4.41

0.47

0.52

7.59

2012

2.42

4.48

0.51

0.71

8.12

2013

2.58

4.58

0.44

0.71

8.31

26

ECU maintained its position in the top Tier Two funding group for Sustainable Research Excellence based on Category 1 Australian Competitive

Research Grant income.

In 2013 ECU increased its strategic research investment by 4 per cent to $10.2 million, with a focus on increasing external research collaborations and building research capacity. These funds were applied to key State, national and international initiatives, fellowships, scholarships and infrastructure, in order to foster industry linkages and commercialisation in areas of research priority.

NATIONAL GRANTS ANNOUNCED

IN 2013

A research project to better understand the role exercise plays in counteracting the sexual dysfunction associated with prostate cancer was awarded $561,844 by the NHMRC. Led by

Health and Wellness Institute Director Professor

Daniel Galvão, Foundation Professor of

Exercise and Sports Science Rob Newton and

Senior Research Fellow Dr Prue Cormie, the project collaborates with Griffith University, the

University of Newcastle and the Metropolitan

Health Service.

Dr Donell Holloway was awarded a Discovery

Early Career Researcher Award from the

Australian Research Council to investigate whether primary school children have the skills to negotiate social media. The project Digital

Play: Social network sites and the well-being of

young children, was awarded $383,899.

RESEARCH TRAINING

Growth in Higher Degree by Research student numbers has been steady since 2009, although provisional figures for

2013 indicate a modest decline.

Table 5. Higher Degree by Research Student Load, 2009-2013

Doctorate by Research

Masters by Research

2009

302

78

2010

336

99

2011

347

108

2012

351

106

2013

325

95

Total (EFTSL) 380 435 455 457 420

Notes: 2013 data is as at 14/02/2014. 2012 data is finalised and differs from the provisional figures reported in the Annual Report for 2012.

Instruments such as the International Student Barometer show that ECU’s research and higher degree students and graduates continue to rate highly the support received from their supervisors and ECU’s Graduate

Research School.

The Postgraduate Research Experience Questionnaire

(for both domestic and international students) also shows high levels of student satisfaction with ECU. For the last two years ECU was rated significantly higher than the national average.

Figure 6. Higher Degree by Research Graduate Satisfaction, 2008-2012

100

95

90

85

80 ECU

Sector Average

75

2008 2009 2010 2011 2012

Year of Survey

Notes: This measures the percentage of ECU Higher Degree by Research graduates who, in responding to the overall satisfaction item from the national Postgraduate Research Experience Questionnaire “agree” with the statement “Overall, I was satisfied with the quality of my higher degree research experience”. The percentage agreement is the percentage of responses that are 4 (agree) and 5 (strongly agree) on the fivepoint Likert scale.

27

ECU scholarship opportunities increased for domestic

Higher Degree by Research candidates in 2013, with the introduction of ‘Inspiring Minds’ Scholarships, worth

$40,000 per annum for those wishing to work in ECU’s nominated areas of research priority. The number of international scholarship opportunities also increased through partnerships with international institutions and foreign governments. Recruitment activity for international research students also increased through attendance at international scholarship fairs.

Enhancing the research experience through support for student mobility was a focus in 2013. Three international and two national placements were funded through a newly established Mobility Grant. Eight ECU students were invited to participate in a collaborative “Writer’s

Retreat” with Victoria University. There was excellent feedback from the retreat, in particular the opportunity to collaborate across institutions, and the opportunity to get targeted writing development training.

A project commenced in 2013 to better support doctoral candidates to successfully complete in a timely manner. PhD candidates will be assisted in developing an individual learning plan in consultation with their supervisor panel, to identify areas for skills development, and set out as a structured and comprehensive plan for learning.

In 2013 ECU completed two projects funded by the

Australian Government’s Office of Learning and

Teaching (OLT). The Good Practice Framework for promoting institutional research training quality is now hosted on the OLT website. It is also the basis of an institutional research training benchmarking exercise with four other universities, to be completed in early

2014. The other OLT project completed in 2013 was a national ‘toolkit’ of resources to help support academics that are new to postgraduate supervision.

RESEARCH WEEK

The Joondalup, Mount Lawley and South West

(Bunbury) campuses again hosted the annual

Research Week event in September, with seminars, presentations and exhibitions to inspire the next generation of researchers. The ECU

Three Minute Thesis Competition showcased research undertaken by Higher Degree by

Research candidates. School of Communication and Arts PhD candidate Sian Teague won the

ECU competition for her presentation on her research, which looks at how writing memoirs can help people overcome their experiences with trauma.

strAtEgiC Priority FivE: to EnhAnCE orgAnisAtionAl rEsiliEnCE, sUstAinAbility And rEPUtAtion

ECU’S KEY ORGANISATIONAL

SUSTAINABILITY OUTCOMES IN 2013

The University’s governing Council approved five key actions for this Strategic Priority for 2013.

Action: Implement strategies to improve organisational productivity and government relations in preparation for the financial impact of the 2015 half-cohort of WA school-leavers.

The financial impact of anticipated revenue reductions arising from the 2015 half-cohort as well as the

Australian Government’s ‘Efficiency Dividend’ on university teaching and research grants have been addressed within the ECU Budget for 2014, approved by

Council at its December 2013 meeting.

The University continues to proactively manage the challenges of the half-cohort with strategies for cost containment, resource re-alignment and enrolment growth, including: z z the establishment of a Staffing Steering Committee chaired by the Deputy Vice-Chancellor (Academic) to review and approve staff appointments and workforce management initiatives to monitor staffing profiles, leave and reduced working hours; z z further refinement of the Enterprise Resource

Allocation Model to facilitate improved strategic budget allocation decisions to be made across the University; z z a Strategic Sourcing Project to contain contract expenditure and improved cost management across the University; and z z the realignment of international student recruitment and admissions activities within the Marketing and

Communications Service Centre and Student Services

Centre to improve the efficiency and effectiveness of international activities.

NEW STUDENT HOUSING

Work commenced in 2013 on a new 127-bed development on the Joondalup Campus. Campus

Living Village will invest $17 million in the state-of-theart building located adjacent to the existing 148-bed student village on the eastern side of the Campus.

BIGGEST OPEN DAY YET

More than 13,000 future students, their families and friends attended the Joondalup Campus and Mount

Lawley Campus Open Days in 2013 - the largest attendance yet. These student recruitment events involved hundreds of staff and student volunteers to help showcase the University and its courses.

CLOSER TIES WITH CHINA

ECU Vice-Chancellor and President Professor

Cox led an ECU delegation on a three-week visit to Southwest China. Visiting 11 universities in the region, the delegation explored further opportunities for student exchange, degree articulation and research collaboration and signed several memoranda of understanding.

NEW JOONDALUP CAMPUS FACILITIES

Work continued on Building 34, a $72 million project providing a multi-storey administration building, café and campus street for the Joondalup Campus. The project is scheduled for completion in late 2014.

highlights

29

Action: Commence implementation of the [email protected]

ECU for the Future project, to better support contemporary learning, teaching and research

The four elements of [email protected] for the Future; Enterprise

Architecture, IT Governance, the IT Service Catalogue and the ITSC Operating Model were completed in 2013.

This marked the close of the [email protected] for the Future project, which will move to implementation in 2014. Key outcomes from the project will include: “architectural roadmaps” to support each of the functions of the

University; new IT governance protocols to improve returns on technology investment; and improved support for student and staff users of technical services.

Action: Direct income from the Student Services and Amenities Fee to support improved student services and outcomes, in consultation with the

Guild

The University continues to enjoy good relations with the ECU Student Guild. A consultation process on the allocation of the Student Services and Amenities Fees

(SSAF) funds was completed and a Fees Allocation

Deed agreed and signed between the University and the

Guild. Council approved allocations for 2013 at its April

2013 meeting.

These allocations provide significant additional funding to the Guild and support both the Guild’s and the University’s efforts to improve student services and outcomes. More than three quarters of the SSAF income will be directed to: providing students with help to obtain employment or advice on careers (25 per cent); supporting sporting, or other recreational activities for students (24 per cent); promoting the health and welfare of students (19 per cent); and supporting the production and dissemination of media to students, for content provided by students (10 per cent). The remainder of the funding will be applied to a variety of projects as agreed between the University and the Guild, and in accordance with Federal guidelines governing the use of the SSAF funds.

As required by the Fees Allocation Deed, the Guild provided quarterly reports to the University on the services undertaken by the Guild and the associated expenditure.

Action: Develop and commence implementation of an integrated fundraising program and strengthen links between advancement and engagement through partnerships, fundraising and Alumni relations

ECU has undertaken extensive consultation with its alumni to understand and secure their long-term engagement with the University. In 2013 ECU began to establish programs and activities that reflect alumni feedback. Initiatives included: z z a review of the Alumni Benefits program, which has led increased participation; z z facilitating alumni-student interactions to support and enhance employment outcomes for ECU graduates through mentoring programs. More than 40 ECU alumni have agreed to take part; z z the introduction of a regular bi-monthly Alumni e-News; and z z the introduction of a six-monthly International e-News for alumni located overseas.

A substantial program of engagement activities was undertaken to identify and cultivate potential supporters.

Events in 2013 included: z z

‘ECU at The Ellington Club’ as part of the Perth

International Jazz Festival (May); z z the WAAPA mid-year Musical (June) and VIP

Reception for supporters; z z the Community Campus Dash (October), which promoted the benefits of exercise and raised just under

$4000 for the ECU Health and Wellness Institute; and z z

ECU’s signature alumni event, ‘Music Under the Stars’

(November). Over 1,000 alumni and community members were welcomed to the Joondalup Campus for an evening of outdoor entertainment.

A number of new corporate partnerships were developed in 2013 and existing sponsors were engaged with on a regular basis to safeguard these partnerships as ongoing and sustainable relationships.

Action: Continue a pro-active approach to quality, including through implementation of the ECU

Excellence Framework and relationship building with the Tertiary Education Quality and Standards

Agency (TEQSA).

The ECU Excellence Framework (ECUEF) policy was launched in July 2013. The ECUEF was incorporated into a range of quality processes including course accreditation, consultative committees and school reviews. Work will continue in 2014 to incorporate the framework into unit and course reviews, research centre reviews, staff performance management and annual reviews.

The inaugural meeting of the Quality and Performance

Advisory Group was held in September 2013. This

Group will meet biannually and will provide advice to the Vice-Chancellor and the Vice-Chancellor’s Planning and Management Group on matters relating to quality processes and the ECUEF.

ECU continued to engage with TEQSA as required, on applications relating to the Commonwealth Register of Institutions and Courses for Overseas Students

(CRICOS) and in responding to requests for information on accreditation matters.

ECU’S STRATEGIC FOCUS ON

ORGANISATIONAL SUSTAINABILITY

This Strategic Priority comprises four elements: z z

Staffing; z z z z

Financial Positioning;

Infrastructure; and z z

Sustainability.

30

STAFFING

The University continues to implement the ECU Staffing

Plan, 2012-15 that covers the key workforce planning and staffing strategies to 2015. This plan also incorporates the

University’s major equity and diversity commitments in relation to staffing, addressing the legislative requirements of the Equal Opportunity Act 1984 (WA).

The Collective Agreement was re-negotiated in 2013 and a new single Academic and Professional Staff Union

Collective Agreement, 2013 was finalised, combining the previously separate academic and general staff agreements. The Agreement includes a four per cent per annum pay rise for four years, and provides increased flexibility and focus around academic roles and more flexible contract arrangements.

The Academic Standards and Performance Expectations and Outcomes (ASPEO) Framework was incorporated into the new Agreement as well as into: Academic Staff

Promotion assessment criteria; the Management for

Performance process; and Academic workload planning.

Initiatives in the revised Indigenous Employment Strategy

and Action Plan, 2012-2015 were implemented during the year including a major review of practices, revised targets and the filling of five new positions and five traineeships.

The strategy is on track to meet the target of 15 new

Indigenous staff appointments, plus 10 new traineeships by 2015, including the award of an Indigenous Researcher

Fellowship.

The ECU Wellness Program achieved special commendation in the 2013 Best Practice in Health &

Wellbeing IPAA-WA awards. The number of participants at Wellness sessions has increased by 130 per cent since 2009 and the University sponsorship of the Global

Corporate Challenge saw it achieve the title of most active Western Australian University, with ECU’s largest participant numbers to date (756 staff).

Significant work on recruitment and selection processes and role-specific training was undertaken to improve the quality and governance of selection decisions across the

University in response to staff survey (2012) feedback.

STRENGTHENING ECU’S LEADERSHIP CAPACITY

A number of significant appointments were made in 2013. These included: z z

Hon Dr Hendy Cowan, re-elected as

Chancellor; z z

Professor John Finlay-Jones, reappointed as

Deputy Vice-Chancellor (Research); z z

Professor Colleen Hayward AM, reappointed as

Pro-Vice-Chancellor (Equity and Indigenous) and Head of Centre, Kurongkurl Katitjin, Centre for Indigenous Australian Education and

Research, effective 2014; z z

Professor Nara Srinivasan, appointed as part-time Pro-Vice-Chancellor Engagement

(Emirates), in addition to his primary role as

Professor of Security and Risk; z z

Professor Julie Warn AM, reappointed as

Director, WA Academy of Performing Arts, effective 2014; z z

Ms Lyn Farrell, appointed Dean, Faculty of

Regional and Professional Studies; z z

Professor Hugh Wilkins, appointed Head of the

School of Business, Faculty of Business and

Law; z z

Professor Beth Armstrong, appointed to Head of the School of Psychology and Social Science,

Faculty of Health, Engineering and Science; z z

Associate Professor Andrea Hinwood, appointed Head of the School of Natural

Sciences, Faculty of Health, Engineering and

Science; z z

Associate Professor Andrew Woodward, appointed Head of the School of Computer and Security Science, Faculty of Health,

Engineering and Science; z z

Professor Daryoush Habibi, reappointed Head of the School of Engineering, Faculty of Health,

Engineering and Science; z z

Associate Professor Julie Ann Pooley, appointed as Associate Dean, Teaching and

Learning, Faculty of Health, Engineering and

Science; z z

Associate Professor Mark McMahon, appointed as Associate Dean, Teaching and Learning,

Faculty of Education and Arts; z z

Professor Will Stock, appointed as Associate

Dean, Research, Faculty of Health, Engineering and Science; z z

Associate Professor Jan Gray, appointed as Associate Dean, Research, Faculty of

Education and Arts; z z

Associate Professor Jim Cross, reappointed as Associate Dean, International, Faculty of

Health, Engineering and Science; z z

Professor Moira Sim, promoted to the position of Professor and reappointed as Head of the

School of Medical Sciences, Faculty of Health,

Engineering and Science; z z

Professor Mel Ziman, promoted to the position of Professor within the School of Medical

Sciences; z z

Professor Russell Jones, appointed Professor of Clinical Education within the School of

Medical Sciences; and z z

Professor Margaret Jones, appointed to the level of Professor as Director of the Office of

Research and Innovation.

Financial Positioning

The University’s five strategic priorities are reflected in University-wide strategic budget allocations and in the expenditure plans of individual faculties, schools and service centres. ECU has implemented budget strategies to enable ECU to respond quickly to change, while progressing its Purpose, Vision and Strategic

Priorities.

These budget strategies work in parallel with complementary initiatives designed to: z z continue to focus ECU’s academic activities and staff profile in areas of strength; z z improve the quality of activities, services and outcomes in teaching and research; and z z support the financial viability of ECU through a combination of cost-savings and improved efficiencies, and through the achievement of revenue growth targets.

ECU overall financial position remained sound and the University received a “clean bill of health” from the

Commonwealth Department of Education in its annual review of the financial position of Australian universities.

In addition, the University once again received an unqualified external audit opinion for 2013.

Throughout 2013 ECU operated within the key budget parameters approved by Council. Performance against the 2013 financial targets set by Council was once again strong. The University posted a 2013 operating surplus of $33 million for the year, which was an increase of

$10 million from the original budget ($23 million). Total revenue for the University in 2013 was $390 million, which represents an increase of $14 million compared to original budget ($376 million).

Table 6. Financial Ratios, 2013

total Revenue operating Margin interest cover on borrowings liquidity – current Ratio cash Reserves (no. of weeks)

Debt to equity ratio actual

$390m

8.4%

9.1x

2.7

34

10.3%

target

≥ $376m

Variance/comment

Revenue results achieved budget.

At least 4% The operating margin is above the target set for

2013.

At least 3x The interest cover on borrowings is above the target set for 2013.

At least 1.0

The current ratio is above the target set for 2013.

At least 4 weeks

Not more than 30%

The number of weeks of revenue in cash assets is above target set for 2013.

The debt to equity ratio is within the target set for

2013.

The Financial Statements begin on page 53 of this Annual Report.

infrastructure and services

As part of ECU’s Performance Indicator Framework, the

University measures the performance of its infrastructure on five measures which are benchmarked through the

Tertiary Education Facility Management Association

(TEFMA).

Backlog Maintenance

This measure provides the ratio of backlog maintenance cost to asset replacement value and indicates that

ECU continues to maintain a low liability in backlog maintenance.

ECU

WA

Sector

2008 2009 2010 2011 2012

1.4% 0.7% 0.8% 0.4% 0.5%

3.2% 2.6% 2.8% 2.2% 3.5%

4.0% 5.5% 4.4% 4.3% 3.4%

Utilisation Rates

This measure provides the daytime utilisation measured by an audit of teaching spaces (% time used) and indicates that ECU has the ability to continue to grow teaching and learning activities through improved utilisation of existing space.

ECU

WA

Sector

2008 2009 2010 2011 2012

19.4% 15.3% 21.5% 21.1% 21.4%

- 40.2% 42.2%

- 31.3% 31.4% 35.7% 33.4%

32

Water Consumption

This measures the use of water (kL) against the student load (EFTSL). Benchmarking rules were changed in

2011 and earlier figures are not comparable with those for 2011 and later. ECU performs well compared to other universities in the State.

ECU

WA

Sector

2008 2009 2010 2011 2012

7.9

6.1

4.8

14.4

12.0

10.5

11.0

10.4

10.3

12.5

9.9

32.6

12.4

33.0

12.0

Waste to Landfill

This measures the waste to landfill in (kg) against the student load (EFTSL). Measurement commenced in 2011. ECU performs well compared with other universities in the State and nationally.

ECU

WA

Sector

2011 2012

25.9

29.7

44.5

52.3

30.2

47.5

Energy Consumption

This measures energy consumption (gigajoules) against the gross floor area (m2). All new buildings at ECU have been designed to use less energy. ECU performs well compared with other universities in the State and nationally.

ECU

WA

Sector

2008 2009 2010 2011 2012

0.5

0.6

0.5

0.5

0.5

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.8

0.7

Environmental Sustainability

ECU operates under an environmental management system accredited to ISO 14001, Environmental

Management Systems. This system includes programs around energy, water, waste, travel and biodiversity that educate, inform and change behaviour on environmental issues. In 2013 ECU achieved re-certification of this system with a high compliance rating.

Building Infrastructure

ECU’s Strategic Asset Management Framework and

Buildings Asset Management Plan deliver a structured and consistent approach to the management of the

University’s assets. The framework and plan supports the University’s Purpose, Vision and Strategic Priorities by delivering building infrastructure that enables ECU’s core functions of teaching, learning and research.

In 2013 all major building projects were undertaken within budget and met milestone targets.

Major building projects completed included: z z

Joondalup Building 23 Engineering and Technology.

This facility provides significant expansion to allow growth in teaching, learning and research for engineering, computing and other related disciplines. z z

The completion of a number of flexible learning spaces as part of the University’s review of its teaching practices, which was funded through the Australian

Government’s Structural Adjustment Fund.

z z

Upgrade of two lecture theatres at the Mount Lawley

Campus.

The following major projects were at varying stages of development at the end of 2013: z z

Construction is progressing well on Joondalup

Building 34. The project remains on schedule to be completed at the end of 2014. z z

Construction on the ECU Health Centre (incorporating the Wanneroo GP Super Clinic) is progressing ahead of schedule for completion by mid-2014. z z

Work on the Joondalup Engineering Pavilion commenced. This will replace offsite-leased accommodation and is scheduled to be completed by

June 2014.

z z

ECU has entered into a Private Public Partnership with its existing student accommodation provider,

Campus Living Villages, to provide an additional 127 beds for student accommodation on the Joondalup

Campus. The agreement incorporates funding received through the National Rental Affordability

Scheme. Construction of the facility commenced in

2013 and will be ready for occupation by Semester 1,

2015.

IT Infrastructure

Major initiatives for technology infrastructure have been informed by the roadmap identified through the

[email protected] for the Future project, initiated to establish a technology capability across the University that would meet the needs of the University now and in the future.

The focus in 2013 was to establish the foundations and implementation will commence in 2014.

Planning for the following strategic initiatives was also underway in 2013: z z provisioning of data centre/cloud services, capable of providing access to content from any location; z z an information security program that will consider the requirements for managing non-University-owned devices connected to the network, whilst protecting the

University’s data; and z z a major network replacement program to address increasing traffic and cyber-security requirements, as well as non-University-owned devices connected to the network.

33

SECTION 2B

REPORT ON KEY PERFORMANCE INDICATORS

REPORT

CERTIFICATION

We hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess ECU’s performance, and fairly represent the performance of

ECU for the financial year ended 31 December 2013.

The Hon Dr Hendy Cowan

Chancellor

6 March 2014

Professor Kerry O. Cox

Vice-Chancellor

6 March 2014

INTRODUCTION

ECU’s Key Performance Indicators (KPIs) focus on the University’s core business (teaching, learning and research) and key stakeholders (students). The KPIs are informed by the functions of the University as set out in Section 7 of the Edith Cowan University Act 1984 (WA)

(ECU Act), particularly: z z

S7(a) “to provide…courses of study appropriate to a university to meet the needs of the community in this

State.” z z

S7(c) “to support and pursue research and scholarship and aid the advancement, development, and practical applications to education, industry, commerce and the community, of knowledge or any techniques.”

A revised version of the University’s strategic directions document: Edith Cowan University: Engaging Minds;

Engaging Communities. Towards 2020 was approved by

Council at its 13 December 2012 meeting. The revised document specifies ECU’s Purpose and five Strategic

Priorities which articulate the University’s commitment to the communities it serves.

ECU’s Purpose is:

To further develop valued citizens for the benefit of

Western Australia and beyond, through teaching and research inspired by engagement and partnerships.

ECU’s five Strategic Priorities are:

1. To create positive outcomes in our communities

through mutually beneficial engagement;

2. To deliver accessible world-class education and an

enriching student experience;

3. To enhance the personal and professional outcomes of

graduates;

4. To strengthen research capability, capacity, translation

and impact; and

5. To enhance organisational resilience, sustainability and

reputation.

The Annual Report section entitled Report on Operations was structured around these strategic priorities, reflecting their importance in setting direction for the

University’s operations.

In this Key Performance Indicator Report, the functions specified in the ECU Act and reflected in ECU’s current

Strategic Priorities, provide the basis for the following outcomes, against which the University’s performance is measured:

Outcome 1: ECU’s courses of study meet the needs of the Western Australian community and are provided in a supportive and stimulating learning environment.

Outcome 2: ECU’s research and scholarship advance and develop education, industry, commerce and the community, through the practical application of knowledge.

For each KPI, the Key Performance Indicator Report provides: z z

ECU’s performance over the last five years; z z a comparison to Target for the most recent year; and z z wherever possible, comparisons to the overall performance of universities in Australia (“National

Average”) and to public universities in Western

Australia (“State Average”).

35

36

A summary of performance against targets for the most recent audited data is provided in Table 7 below.

Table 7. Summary of Performance against KPI Targets

Performance Indicator

Retention (%) - 2012 commencements

Course Satisfaction (%) -

2012 survey

Quality of Teaching (%) -

2012 survey

Graduate Employment (%) -

2012 survey

Share of First Preference (%) -

2013 Admissions

Teaching-related Expenditure per

Student Load ($/ EFTSL) - 2013

Research Income ($m) – 2012

Actual Target Variance/Comment

76.8

80.0

The retention rate increased slightly by 0.2 percentage points, and is 3.2 percentage points below Target.

95.0

95.0

92.8

92.0

Performance declined slightly by 1.1 percentage points, but met Target. ECU’s graduate Course Satisfaction is above both the National Average and the State Average.

Performance improved slightly by 0.3 percentage points, and was 0.8 percentage points above Target. ECU’s

Good Teaching satisfaction is above both the National

Average and the State Average.

74.2

78.0

Performance increased by 3.8 percentage points, but was 3.8 percentage points below Target. ECU’s Graduate

Employment results are below both the National Average and the State Average.

16.9

16.0

ECU’s share of first preference applications for Bachelor and Associate Degree courses processed through TISC declined slightly by 0.4 percentage points and was 0.9 percentage points above Target.

17,547 17,685 Teaching-related expenditure per student load increased and was below Target.

15.458

14.000 ECU’s total research income declined slightly by

$0.296m, but was $1.458m above Target.

Higher Degree Research

Completions (per 10 Academic

Staff FTE) - 2012

1.7

2.0

Higher degree research completions per 10 academic staff FTE increased (from 1.5 to 1.7), but was below

Target.

Research Publications (per 10

Academic Staff FTE) - 2012

10.3

12.0

Weighted Research Publications per 10 Academic Staff

FTE declined (from 11.6 to 10.3), and was below Target.

Note: Actual results are for the most recent data available. Full definitions are provided in the Key Performance Indicator Report.

36

oUtComE 1: ECU’s

CoUrsEs oF stUdy mEEt thE nEEds oF thE

WEstErn AUstrAliAn

CommUnity And ArE

ProvidEd in A sUPPortivE

And stimUlAting lEArning EnvironmEnt.

This outcome has the following measures:

Key Effectiveness

Indicators

Key Efficiency

Indicator

Retention

Course Satisfaction

Quality of Teaching

Graduate Employment

Share of First Preferences

Teaching-Related

Expenditure per Student Load

1. RETENTION

Many factors influence whether students decide to remain in their studies (retention), including the relevance of those studies to their needs, and the learning environment in which that study takes place.

Student retention is therefore an indicator of the extent to which ECU’s courses meet the needs of the Western

Australian community and are provided in a supportive and stimulating learning environment.

Retention is here defined as the percentage of all domestic and international students who commence a Bachelor Pass course in a given year (Year of

Commencement) and either complete, defer or are still enrolled in the same course or another ECU course one year later. This measure is calculated on a point-to-point basis, being 31 March of each year.

Table 8. Retention Commencing Bachelor Pass

Student

Year of Commencement

2009 2010 2011 2012 2013

1

78.2% 80.4% 76.6% 76.8% ECU

Target

National

Average

2

80.0% 80.0% 81.0% 80.0%

84.0% 83.1% 83.0% n/a

Notes: 1. Retention data for students commencing in 2013 will not be available until March 2014. 2. The National

Average figures are from Table 4.9 of Appendix 4 on the

Department of Industry website at:

www.innovation.

gov.au/HigherEducation/HigherEducationStatistics/

StatisticsPublications/Pages/default.aspx The National

Average figure for 2012 will not be available until mid-2014.

The retention rate for ECU students commencing in 2012 increased slightly (by 0.2 percentage points) compared with the retention rate for those who commenced in

2011. The retention rate for ECU students commencing in 2012 is 3.2 percentage points below Target.

2. COURSE SATISFACTION

Graduates are more likely to rate their course highly, in terms of overall satisfaction, if the course was relevant to their needs, provided in a supportive learning environment and has proven useful and relevant in an employment context following graduation. Graduate satisfaction with the quality of their course is therefore an indicator of the extent to which ECU’s courses of study meet the needs of the Western Australian community and are provided in a supportive and stimulating learning environment.

Comparative data on how ECU’s graduates rate the quality of their courses is available from responses to the Course Experience Questionnaire (CEQ), a national survey of graduates conducted four to six months after course completion.

Course Satisfaction is here defined as the percentage of all domestic and international Bachelor level (Bachelor

Pass, Bachelor Honours and Bachelor Graduate Entry) graduates who ‘broadly agree’ with the statement:

“Overall, I was satisfied with the quality of this course” from the Course Experience Questionnaire. The percentage broad agreement is the percentage of responses which are 3 (neither agree nor disagree),

4 (agree) or 5 (strongly agree) on the five-point Likert scale.

Table 9. Undergraduate CEQ Course Satisfaction

Year of Survey

2009 2010 2011 2012 2013

1

92.6% 95.0% 96.1% 95.0% ECU

Target

National

Average

State

Average

93.0% 93.0% 95.0% 95.0%

88.1% 93.1% 93.6% 94.0%

89.9% 93.5% 94.4% 94.3%

Notes: 1. National data sets for 2013 were not made available in sufficient time to allow inclusion in this Report. 2. The performance results are shown here by “Year of Survey”, as is common practice across the sector. 3. For the 2012 survey

3,186 ECU Bachelor graduates were surveyed, of whom 1,769 responded to the CEQ, equating to a response rate of 55.5%.

ECU graduates’ Course Satisfaction level in the 2012 survey declined slightly (by 1.1 percentage points), compared with the 2011 survey. The results over the time series show an increase of 2.4 percentage points in 2012 compared to the 2009 results. The 2012 survey result is on Target.

ECU’s Course Satisfaction results are consistently above both the National and State averages.

37

3. QUALITY OF TEACHING

Graduates are more likely to rate highly the quality of the teaching in their course, if the content and teaching style was relevant to their needs and the course was provided in a supportive learning environment. Graduate satisfaction with the teaching they experienced during their course is therefore an indicator of the extent to which ECU’s courses of study meet the needs of the

Western Australian community and are provided in a supportive and stimulating learning environment.

Comparative data on how ECU’s graduates rate the quality of the teaching they experienced is available from responses to the Course Experience Questionnaire

(CEQ), a national survey of graduates conducted four to six months after course completion. Six items in the

CEQ make up the Good Teaching Scale which is used to indicate how satisfied graduates were with the teaching experience during their course.

The Good Teaching Scale is here defined as the proportion of domestic and international Bachelor level (Bachelor Pass, Bachelor Honours and Bachelor

Graduate Entry) graduates who ‘broadly agree’ on average with the six items comprising this scale. The percentage broad agreement is the proportion of a respondent’s scores on the six items which are 3 (neither agree nor disagree), 4 (agree) or 5 (strongly agree) on the five-point Likert scale.

Table 10. Undergraduate CEQ Good Teaching Scale

ECU

Target

Year of Survey

2009 2010 2011 2012 2013

1

89.1% 92.4% 92.5% 92.8%

91.0% 91.0% 92.0% 92.0%

National

Average

State

Average

82.8% 87.7% 88.5% 89.1%

85.5% 88.7% 88.8% 89.5%

Notes: 1. National data sets for 2013 were not available in sufficient time to allow inclusion in this Report. 2. The performance results are shown here by “Year of Survey”, as is common practice across the sector. 3. For the 2012 survey

3,186 ECU Bachelor graduates were surveyed, of whom 1,769 responded to the CEQ, equating to a response rate of 55.5%.

ECU graduates’ level of satisfaction with the quality of teaching for the 2012 survey increased slightly (by 0.3 percentage points), compared with the 2011 survey. The latest result is the highest in the time series. The level of satisfaction in the 2012 survey year is above Target by

0.8 percentage points.

ECU’s Good Teaching Scale results are consistently above both the National Average and the State Average.

4. GRADUATE EMPLOYMENT

There is strong evidence that many students undertake higher education for employment-related reasons (i.e.to gain employment, or to advance their career). The employers, on whom the job prospects of graduates largely depend, seek employees who have the skills and attributes needed in their professions and occupations.

Graduate employment is therefore an indicator of the extent to which ECU’s courses of study meet the needs of the Western Australian community and are provided in a supportive and stimulating learning environment.

Comparative data on employment outcomes for ECU graduates is available from the Graduate Destination

Survey (GDS), a national survey of graduates, conducted four to six months after course completion.

Graduate Employment is here defined as the percentage of domestic Bachelor level (Bachelor Pass, Bachelor

Honours and Bachelor Graduate Entry) graduates in full-time employment as a proportion of all domestic

Bachelor level graduates in, or seeking, full-time work

(including those who were working part-time or on a casual basis while seeking full-time employment).

38

Table 11. Domestic Bachelor Course Level Graduates in Full-time Employment

Year of Survey

2009 2010 2011 2012 2013

1

78.0% 75.6% 70.4% 74.2% ECU

Target

National

Average

State

Average

87.0% 83.0% 79.0% 78.0%

81.1% 78.5% 78.7% 78.1%

82.2% 77.5% 78.2% 81.1%

Notes: 1. National data sets for 2013 were not available in sufficient time to allow inclusion in this Report. 2. The performance results are shown here by “Year of Survey”, as is common practice across the sector. 3. For the 2012 survey

2,473 ECU Domestic Bachelor graduates were surveyed, of whom 1,425 responded to the GDS, equating to a response rate of 57.6% .

The proportion of ECU graduates in full-time employment at the time of the 2012 survey increased by

3.8 percentage points, compared with those surveyed in

2011. The 2012 survey result is 3.8 percentage points below Target and is below both the National and State averages.

An additional Strategic Priority (SP3), added in

December 2012, reinforces ECU’s commitment to improved graduate employment outcomes. This was matched by a range of strategies embedded in the curriculum and provided through support and services structures that are responding to SP3.

5. SHARE OF FIRST PREFERENCES

The relevance of courses and quality of the learning environment in which they are taught, as perceived by prospective students and the wider community, will influence demand for places at a university. ECU’s Share of First Preferences, processed through the Western

Australian Tertiary Institutions Service Centre (TISC), is an indicator of the level of demand for the University’s undergraduate courses within the broader competitive market in the State. It is therefore an input indicator of the extent to which ECU’s courses of study meet the needs of the Western Australian community.

Share of First Preferences is here defined as the number of first preference applications for ECU’s undergraduate courses, expressed as a percentage of all first preference applications to Western Australia’s public universities as processed by TISC. Data is taken at the end of the applications process for that year’s entry to university through the TISC pathway only. A definitional change was applied from 2010 to limit the data to applications for Bachelor and Associate Degree courses only.

Table 12. Undergraduate Share of First Preferences

Entry Year

2009 2010 2011 2012 2013

19.5% 20.1% 16.6% 17.3% 16.9% ECU

Target

Curtin

21.0% 21.0% 18.0% 16.0% 16.0%

31.6% 34.0% 34.0% 36.2% 39.4%

Murdoch 14.5% 13.6% 14.2% 16.1% 15.0%

UWA 34.4% 32.3% 35.1% 30.4% 28.7%

Notes: From 2010 a revised definition, approved by ECU’s

Council at its meeting of December 2009, was applied. The change in definition provides better comparisons between the universities by limiting the data to applications for Bachelor and

Associate Degree courses only. Therefore figures for 2009 vary from those reported in earlier Annual Reports.

ECU’s share of first preference applications for undergraduate courses processed through TISC declined slightly by 0.4 percentage points between the

2012 and the 2013 entry years.

ECU’s first preference share in 2013 is above Target by

0.9 percentage points.

This measure excludes direct applications and the relevance of this KPI to ECU’s performance continues to decline as the proportion of undergraduate students entering the University using pathways other than TISC increased to more than 75% for 2013.

39

6. TEACHING-RELATED ExPENDITURE

PER STUDENT LOAD

Teaching-related expenditure per Student Load shows the cost associated with providing teaching and learning support to a full-time equivalent student in a given year.

Over time, the measure shows whether such costs are decreasing or increasing, which could be interpreted as indicating either increased efficiency or reduced efficiency respectively.

This measure must, however, be interpreted in the context of other KPIs associated with Outcome 1.

A decrease in cost does not necessarily indicate improved efficiency if it leads to, for example, lower retention, graduate satisfaction or graduate employment outcomes. For example, a substantial increase in class size (student: staff ratio) may reduce costs, but might adversely impact on performance against other indicators.

Trends on this measure can also be affected by factors such as changes in the overall ECU student load, the proportion of costs which are fixed, and the proportion of student load in higher cost disciplines.

Teaching-related Expenditure per Student Load is here defined as the total expenditure less research-only expenditure, divided by total full-time equivalent students

(EFTSL) in the year.

Table 13. Teaching-related Expenditure per Student Load

Teaching-Related Expenditure ($’000)

Total Student Load (EFTSL)

Teaching-Related Expenditure/Total Student Load ($)

Target ($)

2

2009 2010 2011 2012 2013

1

252,064 277,172 282,800 305,953 310,240

17,583

14,336

14,756

18,711

14,813

14,572

18,478

15,305

14,719

18,132

16,874

16,645

17,680

17,547

17,685

Teaching-Related Expenditure/Total Student Load

(2013 $ equiv)

3

Target (2013 $ equiv)

15,772

16,234

15,930

15,670

16,035

15,421

17,324

17,090

17,547

17,685

Notes: 2013 projected full year student load figure is as at 14/02/2014 and includes VET course load. 2. Targets are derived from Teaching-

Related Expenditure based on the Original Full year Budget divided by the total Student Load from the Budget. For 2013, this was

$316,338,000 divided by 17,887 EFTSL. 3. Prior year expenditure is indexed for current costs, based on CPI for December Qtr 2013.

Teaching-related expenditure per Student Load (2013 $ equivalent) increased between 2012 and 2013. The 2013 figure is lower than targeted.

40

oUtComE 2: ECU’s rEsEArCh And sCholArshiP AdvAnCE

And dEvEloP EdUCAtion, indUstry, CommErCE

And thE CommUnity, throUgh thE PrACtiCAl

APPliCAtion oF knoWlEdgE.

This outcome has the following measures:

Key Effectiveness

Indicators

Key Efficiency

Indicator

Research Income

Higher Degree Research

Completions

Research Publications

7. RESEARCH INCOME

Universities attract research income as a result of their: historical competitiveness in winning grants; previous research outcomes; and perceived ability to deliver quality research and scholarship. Research income, across the four categories listed below, reflects the relevance and potential impact of ECU’s research as perceived by various funders. It is therefore an indicator of the extent to which ECU’s research and scholarship, advance and develop education, industry, commerce and the community.

Research Income is here defined as the level of external research funding obtained during a year, in total and in each of the four categories defined by the Department of Industry.

Table 14. Research Income

Category

1 - National Competitive Research Grants ($m)

2 - Other Public Sector Research Funding ($m)

3 - Industry and Other Funding for Research ($m)

4 - Co-operative Research Centre Funding ($m)

2009

2.907

7.709

2.012

0.182

2010

2.750

8.301

4.211

0.050

2011

2.801

8.402

4.551

0

2012

2.991

6.324

4.920

1.193

Total ($m)

Target ($m)

Note: Research income for 2013 is unavailable until verified by audit in June 2014.

12.809

15.312

15.754

15.458

13.629

13.629

13.600

14.000

2013

1

Between 2009 and 2012, total research income has increased by $2.649 million. Between 2011 and 2012, overall research income declined slightly by $0.296 million. However, research increased in three of the four categories defined by the Department of Industry. Total research income in 2012 was above Target by $1.458 million.

41

8. HIGHER DEGREE RESEARCH

COMPLETIONS

Doctorate and Masters by Research completions is a measure of ECU’s success in training new researchers who will undertake research activity and scholarship, to advance and develop education, industry, commerce and the community.

Higher Degree Research Completions per 10 Academic

FTE is a measure of the efficiency of ECU’s higher degree research programs in providing new researchers to education, industry, commerce and the community.

Higher Degree by Research Completions is defined here as the number of Research Doctorates and Masters by

Research theses passed in a year. Completions are also expressed per 10 full-time equivalent (FTE) academic staff, where academic staff are those at Level B and above, classified as ‘teaching and research’ or ‘research only’.

Table 15. Higher Degree Research Completions by level, total number and per 10 Academic FTE

Doctorate by Research

Masters by Research

Total Completions

Total State Completions

2009

41

23

64

659

2010

51

19

70

647

2011

56

22

78

696

2012

61

29

90

797

2013

Total National Completions

Academic Staff FTE

Completions per 10 FTE

Target

7,092

494

1.3

2.2

7,403

531

1.3

2.2

7,961

517

1.5

2.2

8,230

528

1.7

2.0

Notes: Research completions for 2013 are unavailable until verified by audit in June 2014. 2. State and National Higher Degree by Research completions for 2012 are from Table 8 of the 2012 Award Course Completions listings on the Department of Industry website at:

www.innovation.gov.au/HigherEducation/HigherEducationStatistics/StatisticsPublications/Pages/default.aspx 3. National Higher

Degree by Research completions for 2011 was previously stated as 7,895. The Department of Industry website accessed on 18/10/2013 stated the total national completions for 2011 as 7,961.

1

Total completions for both Research Doctorates and Research Masters increased between 2011 and 2012. Completions per 10 Academic Staff FTE increased (from 1.5 to 1.7) but remain below target by 0.3 completions per 10 Academic Staff

FTE.

42

9. RESEARCH PUBLICATIONS

The number of recognised research and development publications produced in a year, as reported to the

Department of Industry, is a direct measure of research output.

The number of weighted research and development publications per 10 Academic Staff FTE is a measure of the efficiency of research output and an indicator of how efficiently ECU’s research and scholarship advance and develop education, industry, commerce and the community.

Research and Development “Weighted Publications” is defined as the number of publications in the Department of Industry-defined categories A1, B, C1 and E1 in a year. The number of publications is assessed annually in a rigorous, externally audited system prior to submission to the Department of Industry. Weighted publications are expressed per 10 full-time equivalent (FTE) academic staff, where academic staff are those at Level B and above, classified as ‘teaching and research’ or ‘research only’.

Table 16. Research and Development Publications per 10 Academic FTE

2009 2010

Unweighted Publications per 10 FTE

A1 – Authored Research Books

B - Book Chapter

C1 - Articles in Scholarly Refereed Journal

E1 - Full Written Paper - Refereed Proceedings

Total Unweighted Publications

Total Weighted Publications

Academic Staff FTE

Weighted Publications per 10 FTE

Target

0.36

1.03

5.02

3.32

480.9

552.9

494

11.2

12.8

Note: Research publications figures for 2013 are unavailable until verified by audit in June 2014.

0.38

0.88

5.06

3.53

522.1

602.1

531

11.3

12.8

2011

0.22

0.79

5.73

3.90

549.4

595.4

517

11.6

12.8

2012

0.15

0.73

5.86

2.92

509.7

541.7

528

10.3

12.0

2013

Total Unweighted Publications decreased by 39.7 between 2011 and 2012. Total Weighted Publications also decreased in number between 2011 and 2012, by 53.7 publications. Weighted Publications per 10 Academic Staff FTE declined between 2011 and 2012 (from 11.6 to 10.3), and was below Target (12) by 1.7 publications per 10 Academic Staff FTE in

2012.

1

43

44

SECTION 3

SIGNIFICANT ISSUES

44

Commonwealth Funding

Funding to the Higher Education sector was a priority under the last two Federal Labor Governments, as it sought to drive a significant reform agenda to improve higher education participation and attainment rates.

However, political pressure to return the Commonwealth

Budget to surplus, in an environment of falling tax revenues, led to a scaling back of funding for the sector in the final term of the Gillard/Rudd Government.

Cuts in Higher Education spending included: the imposition of a 3.25 per cent Efficiency Dividend in 2014 and 2015; conversion of student start-up scholarships to income-contingent loans; the removal of the 10 per cent discount for up-front HECS/HELP payments; and the removal of the five per cent bonus for voluntary HELP debt repayments.

At the same time, additional funding was provided to meet the forecast increase in demand for Bachelor-level places in the demand driven system, and additional formula-based allocations were made under the

Partnerships component of the Higher Education

Participation and Partnership Program.

The Federal Coalition Government, which came to power in late 2013, has continued to support the funding commitments made under the previous Government.

As a result, funding for additional (“capped”)

Commonwealth supported places in postgraduate and Sub-Bachelor courses was included in funding agreements for 2014-2016.

The 2015 Half Cohort

In 2001, the Western Australian Government increased the pre-school and school entry age by six months to align with other Australian states and territories.

This change reduced the kindergarten cohort in 2001 to approximately 40 per cent. By 2014, this “halfcohort” will result in a Year 12 school-leaver cohort of approximately 13,000 students, compared to 21,000 students in the previous year. This will impact on ECU’s commencing student numbers in 2015 and 2016, with school-leavers representing approximately 37 per cent of the University’s commencing domestic undergraduate enrolments.

The Tertiary Education Quality and

Standards Agency (TEQSA)

The Tertiary Education Quality and Standards Agency

(TEQSA) commenced operations in early 2012 and the associated legislation introduced revised Australian

Government regulatory arrangements. In 2013 a review of higher education regulation (entitled Assuring the

Quality while reducing the Higher Education Regulatory

Burden) was undertaken in response to sector concerns about the increasing burden of administrative “red tape” and regulation on universities. The report released in

August 2013 supported the continuing role of TEQSA in ensuring quality in Australia’s Higher education system, but made recommendations to reduce reporting requirements imposed by TEQSA and the Department of

Education. It is anticipated that the relationship between

TEQSA and the sector will become clearer in 2014, as the recommendations of the review are implemented.

Course Accreditation

ECU encountered a number of issues in relation to course accreditation in 2013, including the failure of the Masters of Physiotherapy course to gain accreditation and the temporary withdrawal of provisional accreditation for the Masters of Nutrition and Dietetics course. ECU undertook a significant review of accreditation processes and as a result of this review, implemented rigorous new accreditation guidelines including a proactive approach to health course accreditations in particular. In addition, the

Vice-Chancellor has delegated responsibility for all health-related accreditation to the Pro-Vice-Chancellor

(Health Advancement). Throughout the year, ECU maintained close contact with TEQSA to keep it informed of developments and actions taken by ECU in order to maintain the high quality and good reputation of its programs, including its over 200 accredited courses.

Workplace Bullying

From 1 January 2014, employees may approach Fair

Work Australia’s Anti-Bullying Panel directly to progress

Workplace Bullying claims. Fair Work Australia’s Case

Management Model and the Anti-bullying Benchbook were reviewed by ECU in conjunction with information provided by Safe Work Australia to ensure that ECU’s internal policies comply with the changes and the information is communicated University-wide. ECU is well prepared for the change in reporting process.

45

Defence Trade Controls

Australia works with its allies to identify and regulate sensitive military and strategic technologies, which are compiled in the Defence and Strategic Goods List

(DSGL). Strengthened export control legislation was introduced to control the intangible supply, brokering and publication of these same goods and technologies through the Defence Trade Controls Act 2012 (Cwlth).

Changes of particular relevance to ECU include: z z regulation of intangible exports such as software and electronic files (including those transferred by personto-person contacts or email); z z regulation of defence services; and z z brokering in such goods or services internationally, where there is a connection with Australia, but not necessarily involving an actual export from Australia.

In 2013 the Australian Government appointed a

Strengthened Export Controls Steering Group to assess the regulatory and organisational impacts of the new regime of controls. Eight separate pilots in the next two years will test the regulatory impact of the Act on the research and industry sectors (including universities) and specifically, the costs and benefits associated with the new controls, the feasibility of their implementation, the necessary processes and interactions for implementation of the Act, and modifications prior to the offence provisions coming into full effect. ECU will monitor the outcome of the pilots and will develop risk management and compliance protocols to mitigate risks created by this change in legislation.

Autonomous Sanctions and UNSC Sanctions

Sanctions imposed through the Autonomous Sanctions

Act 2011 (Cwlth) and the United Nations Security Council

(UNSC) require the University to implement compliance processes to ensure that the University does not: 1. provide sanctioned services to sanctioned individuals; and/or 2. deal with designated entities/individuals.

The University has implemented relevant compliance processes and is monitoring the compliance obligations to verify that its processes and procedures continue to maintain compliance.

Harmonised Work Safety and Health

Legislation

Harmonisation of the safety and health legislation across Australia will result in uniform work safety and health legislation across jurisdictions. Legislation in

Western Australia was delayed and the new laws are now expected to be enacted in 2014. ECU has reviewed the proposed laws and is well prepared to meet the requirements of the new legislation.

SECTION 4

DISCLOSURES AND LEGAL COMPLIANCE

AUDITOR

GENERAL’S

STATEMENT

48

AUDITOR

GENERAL’S

STATEMENT

49

AUDITOR

GENERAL’S

STATEMENT

50

CERTIFICATION OF

FINANCIAL STATEMENTS

The accompanying financial statements of ECU and the accompanying consolidated financial statements have been prepared in compliance with the provisions of the

Financial Management Act 2006 (WA) from proper accounts and records to present fairly the financial transactions for the financial year ended 31 December 2013 and the financial position as at 31 December 2013.

At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

The Hon Dr Hendy Cowan

Chancellor

6 March 2014

CERTIFICATION OF

FINANCIAL STATEMENTS

REqUIRED BY

COMMONWEALTH

DEPARTMENT OF

EDUCATION

I declare that: z z at the time of this certification there are reasonable grounds to believe that ECU will be able to pay its debts as and when they fall due; and z z the amount of Commonwealth financial assistance expended during the financial year ended 31 December 2013 was for the purpose(s) for which it was provided.

Professor Kerry O. Cox

Vice-Chancellor

6 March 2014

The Hon Dr Hendy Cowan

Chancellor

6 March 2014

Mr Brad Francis

Chief Financial Officer

6 March 2014

Professor Kerry O. Cox

Vice-Chancellor

6 March 2014

51

 

Financial  Statements    

Income  statements  

Statements  of  comprehensive  income  

Statements  of  financial  position  

Statements  of  changes  in  equity  

 

Statements  of  cash  flows  

Notes  to  the  financial  statements  

 

 

This  financial  report  covers  both  Edith  Cowan  University  as  an  individual  entity  and  the  consolidated  entity  consisting  of  Edith  

Cowan  University  and  its  subsidiary.    The  financial  report  is  presented  in  the  Australian  currency.  

The  financial  report  was  authorised  for  issue  by  the  Council  on  17 th

 day  of  March  2014.  The  consolidated  entity  has  the  power   to  amend  and  reissue  the  financial  statements.  

53  

54  

55  

56  

58  

59  

  52  

 

Edith  Cowan  University  

Income  Statement  

For  the  Year  Ended  31  December  2013  

 

 

Note

Consolidated

2013

$000's

2012

$000's

Income from continuing operations

Australian Government financial assistance

Australian Government grants

HELP - Australian Government payment

State and Local Government financial assistance

HECS-HELP - Student payments

Fees and charges

Investment revenue

Royalties

Consultancy and contracts

Sale of goods

Other revenue

4

5

6

2

2

3

7

8

162,731

87,823

13,580

11,677

69,768

11,657

4,588

5,528

3,817

10,559

167,994

76,575

11,796

12,305

70,308

8,732

7,018

6,251

7,137

6,254

Total revenue from continuing operations

Gains on disposal of assets

Other investment income

Other income

Total income from continuing operations

9

5

8

381,728

1,921

3,993

1,955

389,597

374,370

2,531

771

1,002

378,674

Expenses from continuing operations

Employee related expenses

Depreciation and amortisation

Repairs and maintenance

Borrowing costs

Impairment of assets

Investment losses

Cost of goods sold

Other expenses

Total expenses from continuing operations

10

11

12

13

14

5

15

216,965

23,600

9,146

4,068

-

7,547

1,882

93,566

356,774

214,543

22,267

8,634

3,594

1,421

1,093

3,708

97,755

353,015

25,659

(55)

Operating result before income tax

Income tax expense 16

32,823

-

Operating result from continuing operations

32,823

Operating result after income tax for the period

32,823

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

25,604

25,604

2013

$000's

Parent

2012

$000's

162,731

87,823

13,580

11,677

69,768

11,657

4,588

5,528

3,817

10,559

381,728

1,921

3,993

1,955

389,597

216,965

23,600

9,146

4,068

-

7,547

1,882

93,566

356,774

32,823

-

32,823

32,823

167,994

76,575

11,796

12,305

70,308

8,669

4,022

6,251

7,062

5,980

370,962

2,568

771

1,002

375,303

211,913

22,239

8,616

3,594

1,160

1,093

3,708

95,112

347,435

27,868

-

27,868

27,868

  53  

 Edith  Cowan  University  Annual  Report  2013  

Operating result after income tax for the period

Note

Items that may be reclassified to profit or loss

Gain on available-for-sale financial assets, net of tax

Net change in fair value of available-for-sale financial assets reclassified to profit or loss

32

Cash flow hedges, net of tax 32

Exchange differences on translation of foreign operations 32

32

Items that will not be reclassified to profit or loss

Revaluation of property, plant and equipment, net of tax

Impairment adjustments

32

Total comprehensive income

Edith  Cowan  University  

Statement  of  Comprehensive  Income  

For  the  Year  Ended  31  December  2013  

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

32,823

3,995

21

-

(2,717)

(23,695)

-

(22,396)

25,604

1,852

1

204

-

(3,032)

13

(962)

32,823

3,995

21

-

(2,717)

(23,695)

-

(22,396)

27,868

1,852

1

-

-

(3,032)

13

(1,166)

Total comprehensive income attributable to: Edith

Cowan University

10,427 24,642 10,427

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

26,702

  54  

Assets

Current assets

Cash and cash equivalents

Receivables

Inventories

Derivative financial instruments

Other financial assets

Non-current assets classified as held for sale

Other non-financial assets

Total current assets

Non-current assets

Receivables

Other financial assets

Property, plant and equipment

Investment properties

Intangible assets

Total non-current assets

Total assets

Note

18

21

25

24

27

17

18

19

20

21

22

23

Consolidated

Edith  Cowan  University  

Statement  of  Financial  Position  

31  December  2013  

Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

66,452

12,158

-

21

114,768

1,305

8,183

202,887

51,429

9,130

1,783

-

92,476

16,853

14,544

186,215

66,452

12,158

-

21

114,768

1,305

8,183

202,887

51,429

9,130

1,783

-

92,476

16,853

14,544

186,215

22,986

71,380

782,941

13,610

6,103

26,816

69,611

803,700

9,820

5,667

22,986

71,380

782,941

13,610

6,103

26,816

69,611

803,700

9,820

5,667

897,020 915,614 897,020 915,614

1,099,907 1,101,829 1,099,907 1,101,829

Liabilities

Current liabilities

Trade and other payables

Borrowings

Provisions

Other liabilities

Total current liabilities

28

29

30

31

6,495

172

38,964

29,827

75,458

10,289

2,320

39,652

28,593

80,854

6,495

172

38,964

29,827

75,458

Non-current liabilities

Borrowings

Provisions

29

30

90,145

59,844

90,067

66,875

90,145

59,844

Total non-current liabilities

Total liabilities

Net Assets

149,989

225,447

874,460

156,942

237,796

864,033

149,989

225,447

874,460

Equity

Parent entity interest

Reserves

Retained earnings

32

32

354,845

519,615

380,519

483,514

354,845

519,615

Parent entity interest

Total equity

874,460

874,460

864,033

864,033

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

874,460

874,460

10,289

2,320

39,652

28,593

80,854

90,067

66,875

156,942

237,796

864,033

380,519

483,514

864,033

864,033

55  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Statement  of  Changes  in  Equity  

For  the  Year  Ended  31  December  2013  

 

2013

Balance at 1 January 2013

Profit or loss

Revaluation of property, plant and equipment

Gain on available-for-sale financial assets

Cash flow hedges

Transfer between reserves

Net change in fair value of available-for-sale financial assets reclassified to profit or loss

Total comprehensive income

Balance at 31 December 2013

2012

Retained

Earnings

$000's

483,514

32,823

-

-

-

3,278

-

36,101

519,615

Parent

Reserves

$000's

380,519

-

(23,695)

3,995

21

(3,278)

(2,717)

(25,674)

354,845

Balance at 1 January 2012

Profit or loss

Revaluation of property, plant and equipment

Gain on available-for-sale financial assets

Cash flow hedges

Impairment adjustments

Transfer between reserves

Parent

Retained

Earnings

$000's

449,882

Reserves

$000's

387,449

27,868

-

-

-

-

5,764

-

(3,032)

1,852

1

13

(5,764)

Total comprehensive income

33,632 (6,930)

Balance at 31 December 2012

483,514 380,519

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

Total

$000's

864,033

32,823

(23,695)

3,995

21

-

(2,717)

10,427

874,460

Total

$000's

837,331

27,868

(3,032)

1,852

1

13

-

26,702

864,033

  56  

Edith  Cowan  University  

Statement  of  Changes  in  Equity  

For  the  Year  Ended  31  December  2013  

2013

Balance at 1 January 2013

Profit or loss

Revaluation of property, plant and equipment

Gain on available-for-sale financial assets

Cash flow hedges

Transfer between reserves

Net change in fair value of available-for-sale financial assets reclassified to profit or loss

Consolidated

Retained

Earnings

$000's

483,514

Reserves

$000's

380,519

32,823

-

-

-

3,278

-

-

(23,695)

3,995

21

(3,278)

(2,717)

Total comprehensive income

Balance at 31 December 2013

2012

36,101

519,615

(25,674)

354,845

Balance at 1 January 2012

Profit or loss

Revaluation of property, plant and equipment

Gain on available-for-sale financial assets

Cash flow hedges

Gain on foreign exchange

Impairment adjustments

Transfer between reserves

Consolidated

Retained

Earnings

$000's

452,146

Reserves

$000's

387,245

25,604

-

-

-

-

-

5,764

-

(3,032)

1,852

1

204

13

(5,764)

Total comprehensive income

31,368 (6,726)

Balance at 31 December 2012

483,514 380,519

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

Total

$000's

864,033

32,823

(23,695)

3,995

21

-

(2,717)

10,427

874,460

Total

$000's

839,391

25,604

(3,032)

1,852

1

204

13

-

24,642

864,033

57  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Statement  of  Cash  Flows  

For  the  Year  Ended  31  December  2013  

 

Note

Consolidated

2013

$000's

2012

$000's

2013

$000's

Parent

2012

$000's

Cash flows from operating activities

Australian Government grants

OS-HELP (net)

Superannuation Supplementation

State and Local Government grants

HECS-HELP - student payments

Receipts from student fees and other customers

Dividends received

Interest received

Payments to suppliers and employees (inclusive of GST)

Interest and other cost of finance

2(g)

2(g)

2(g)

3

Net cash provided by operating activities

41

248,461

60

2,704

13,580

249,048

(8)

3,209

11,795

248,461

60

2,704

13,580

249,048

(8)

3,209

11,795

11,677

98,018

12,305

98,580

11,677

98,018

12,305

94,445

813

11,238

891

7,469

813 891

(331,660) (321,490) (331,660) (315,580)

(4,959) (3,580)

11,238

(4,959)

7,406

(3,580)

49,932 58,219 49,932 59,931

Cash flows from investing activities

Proceeds from sale of property, plant and equipment and non-current assets held for sale

Payments for property, plant and equipment and investment properties

Proceeds from sale of financial assets

Payments for financial assets

Net cash used in investing activities

Cash flows from financing activities

Proceeds from borrowings

Repayment of borrowings

Net cash provided by / (used in) financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of financial year

Effects of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of financial year

Financing arrangements

Non-cash financing and investing activities

17

29

42

25,330

(38,566)

3,290

(22,893)

(32,839)

250

(2,320)

(2,070)

15,023

51,429

-

66,452

22,828

(39,616)

206

(72,205)

(88,787)

50,000

(2,170)

47,830

17,262

33,963

204

51,429

25,330

(38,566)

3,290

(22,893)

(32,839)

250

(2,320)

(2,070)

15,023

51,429

-

66,452

22,819

(39,634)

197

(72,205)

(88,823)

50,000

(2,170)

47,830

18,938

32,491

-

51,429

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

  58  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

28

29

30

31

32

33

22

23

24

25

26

27

10

11

12

13

14

15

16

17

18

19

20

21

3

4

5

6

7

8

9

34

35

36

37

38

39

40

41

42

43

44

45

46

47

Note Contents of the notes to the financial statements

1

2

Summary of significant accounting policies

Australian Government financial assistance including HECS-HELP and other Australian

Government loan programs

State and Local Government financial assistance

Fees and charges

Investment revenue and income

Royalties

Consultancy and contracts

Other revenue and income

Gains on disposal of assets

Employee related expenses

Depreciation and amortisation

Repairs and maintenance

Borrowing costs

Impairment of assets

Other expenses

Income tax expense

Cash and cash equivalents

Receivables

Inventories

Derivative financial instruments

Other financial assets

Non-current assets classified as held for sale

Other non-financial assets

Investment properties

Property, plant and equipment

Deferred tax assets and liabilities

Intangible assets

Trade and other payables

Borrowings

Provisions

Other liabilities

Reserves and retained earnings

Restricted funds

Key management personnel disclosures

Remuneration of auditors

Contingencies

Commitments

Related parties

Subsidiaries

Events occurring after the reporting date

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

Non-cash investing and financing activities

Financial risk management

Fair value measurement

Write-offs

Superannuation

Acquittal of Australian Government financial assistance

Page No.

60

76

88

88

89

90

94

95

96

96

99

101

101

103

81

82

82

82

83

83

84

85

86

87

87

88

78

79

79

80

80

80

81

103

104

105

105

106

107

107

107

108

108

111

115

116

121

59  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

1 Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the annual financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The annual financial statements include separate financial statements for Edith Cowan University as an individual entity and the

Consolidated Entity consisting of Edith Cowan University and its subsidiary.

The principal address of Edith Cowan University is: 270 Joondalup Drive, Joondalup, Western Australia, 6027.

(a) Basis of preparation

The annual financial statements represent the audited general purpose financial statements of the University.

They have been prepared on an accrual basis in accordance with the Australian Accounting Standards.

Additionally the statements have been prepared in accordance with the following statutory requirements:

Higher Education Support Act 2003 (Financial Statement Guidelines)

Financial Management Act 2006

Edith Cowan University is a not-for-profit entity and these statements have been prepared on that basis. Some of the requirements for not-for-profit entities are inconsistent with the IFRS requirements.

Date of authorisation for issue

The financial statements were authorised for issue by the University Council on 6 March 2014.

Historical cost convention

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

Critical accounting estimates and judgments

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

Estimating the useful life of key assets;

Impairment of assets;

Classification of financial assets;

Discount rates used in estimating provisions;

Estimating liabilities for defined benefit superannuation plans

  60  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(b) Basis of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Edith Cowan

University (''parent entity'') as at 31 December 2013 and the results of all subsidiaries for the year then ended.

Edith Cowan University and its subsidiaries together are referred to in this financial report as "the Consolidated

Entity" or "the Group".

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

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

A list of controlled entities appears in note 39 - Subsidiaries.

(c) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances rebates and amounts collected on behalf of third parties.

The Consolidated Entity recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Consolidated Entity and specific criteria have been met for each of the Consolidated Entity’s activities as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Consolidated Entity bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Revenue is recognised for the major business activities as follows:

(i) Government Grants

Grants from the government are recognised at their fair value where the Consolidated Entity obtains control of the right to receive a grant, it is probable that economic benefits will flow to the Consolidated Entity and it can be reliably measured.

(ii) Student fees and charges

Fees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate to courses to be held in future periods. Such income is treated as income in advance. Conversely, fees and charges relating to debtors are recognised as revenue in the year to which the prescribed course relates.

(iii)Consultancy and contracts/ Fee for service

Revenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.

61  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

(iv) HELP payments

Revenue from HELP is categorised into those received from the Australian Government and those received directly from students. Revenue is recognised and measured in accordance with the above disclosure.

(v) Interest revenue

Revenue is accrued on a time-proportion basis, by reference to the principal outstanding and at the effective interest rate applicable.

(vi) Royalties

Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreements.

(vii) Land development and resale

Land is not sold until the development work is completed, and income is recognised when the significant risks and rewards of ownership control transfer to the purchaser and can be measured reliably.

(viii) Gains

Gains may be realised or unrealised. Realised gains are determined on a net basis as the difference between the sale proceeds received or receivable and the carrying amount of the non-current asset. Unrealised gains are determined on a net basis as the difference between the fair value and the carrying amount of an asset.

The policies adopted for the recognition of significant categories of gains are as follows:

Realised gains on disposal of non-current assets

Gains arising on the disposal or retirement of a non-current asset are recognised when control of the asset and the significant risks and rewards of ownership transfer to the purchaser. Net gains are included in income for the period in which they arise.

Unrealised gains associated with investment property at fair value

Gains arising from changes in the fair value of an investment property are included in income for the period in which they arise.

Gains or losses associated with financial assets

Gains arising on the retirement of financial assets are recognised when control of the asset and the significant risks and rewards of ownership transfer from the Consolidated Entity. Net gains are included in income for the period in which they arise.

(ix) Lease income

Lease income from operating leases is recognised in income on a straight-line basis over the lease term.

(x) Service concession income

Service concession income generated from the consumption of access rights by the operator is recognised on a straight line basis over the life of the service concession arrangement. This represents the amortisation of the service concession provision. Refer to note 1(u) for further details regarding this provision.

  62  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(d) Income tax

The Consolidated Entity is exempt from income tax in Australia under the Income Tax Assessment Act 1997.

The Consolidated Entity is subject to foreign income tax for overseas operations. Deferred tax assets are only recognised where it is probable that future amounts will be available to utilise those temporary differences and unused tax losses.

The taxation expense represents the sum of tax currently payable and is measured at 31 December each year.

Taxable profit differs from net profit as reported in the income statements because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The liability for current tax is calculated using tax rates that have been enacted by the reporting date.

The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised using the liability method, for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for the jurisdiction where the entity is situated. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

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

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

(e) Borrowing costs

(f)

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

Impairment of assets

University assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

63  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

The recoverable amount of assets identified as surplus assets is the higher of fair value less costs of disposal or the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence.

Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at each reporting date.

(g) Cash and cash equivalents

For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand and short-term deposits with financial institutions with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(h) Restricted funds

(i)

(j)

Endowment and bequest funds are classified as restricted funds. Endowment and bequest funds have been received from benefactors who, by the terms of their conveying instruments, have stipulated that the use of funds is limited in future years to the purposes designated by the benefactors.

Receivables

Receivables are recognised and carried at the original invoice amount less an allowance for any uncollectible amounts. The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance for impairment. The allowance for impairment (doubtful debts) is raised for all amounts overdue more than 90 days. The carrying amount is equivalent to the fair value as it is due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impairment of receivables is established when there is objective evidence that the

Consolidated Entity will not be able to collect all amounts due according to the original terms of receivables.

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate cash flows relating to short-term receivable are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the income statement.

Inventories

Inventories are measured at the lower of cost and net realisable value. Cost comprises direct materials and where applicable, import duties, transport and handling costs, that have been incurred to bring the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

  64  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(k) Investments and other financial assets

Classification

The Consolidated Entity classifies its investments in the following categories: loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification 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) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the statement of financial position date which are classified as non-current assets. Loans and receivables are included in receivables in the statement of financial position.

(ii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Consolidated Entity's management has the positive intention and ability to hold to maturity.

(iii) Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the end of the reporting period.

Regular purchases and sales of financial assets are recognised on trade date - the date on which the

Consolidated Entity commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Consolidated Entity has transferred substantially all the risks and rewards of ownership. In circumstances, where an investment is liquidated and capital distributions are received, the capital distributions are accounted for as a reduction in the carrying value of the investment

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in other comprehensive income are included in the income statement as gains and losses from investment securities.

Subsequent measurement

Available-for-sale financial assets are subsequently carried at fair value. Loans, receivables and held-to-maturity investments are carried at amortised cost using an effective interest method.

Changes in the fair value of securities classified as available-for-sale are recognised in equity.

Fair value

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

65  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

(l)

Impairment

The Consolidated Entity assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement.

Fair value measurement

The fair value of assets and liabilities must be measured for recognition and disclosure purposes.

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

The fair value of assets or liabilities traded in active markets (such as available-for-sale securities) is based on quoted market prices for identical assets or liabilities at the reporting date (Level 1). The quoted market price used for assets held by the Consolidated Entity is the most representative of fair value in the circumstances within the bid-ask spread.

The fair value of assets or liabilities that are not traded in an active market (for example, land and buildings) is determined using valuation techniques. The Consolidated Entity uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Techniques used to determine fair value for the remaining assets and liabilities are outlined in note 44.

The fair value of interest-rate swaps is calculated as the present value of the estimated future cash flows. The fair value of forward exchange contracts is determined using forward exchange market rates at the reporting date. The level in the fair value hierarchy shall be determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

Fair value measurement of non-financial assets is based on the highest and best use of the asset. The

Consolidated Entity considers market participants use of, or purchase price of the asset, to use it in a manner that would be highest and best use.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short-term nature.

(m) Property, plant and equipment

Land, buildings, leasehold improvements and works of art are shown at fair value, based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings and leasehold improvements. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include gains or losses that were recognised in other comprehensive income on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. For items of property, plant and equipment acquired at no cost or for nominal cost, cost is their fair value at the date of acquisition. Items of property, plant and equipment (excluding works of art) costing less than

$5,000 are expensed the income statement.

  66  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(m) Property, plant and equipment continued

Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of assets are recognised, net of tax, in other comprehensive income and accumulated in equity under the heading of revaluation surplus. To the extent that the increase reverses a decrease previously recognised in the income statement, the increase is first recognised in the income statement. Decreases that reverse previous increases of the same asset class are also recognised in other comprehensive income to the extent of the remaining reserve attributable to the asset class.

All other decreases are charged to the income statement.

Land and works of art are not depreciated. The assets residual values and useful lives are reviewed each year and adjusted where appropriate at the end of each reporting period.

Leasehold improvement

Leasehold improvements are capitalised at amounts directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended for the Consolidated Entity. Such assets are depreciated over the shorter of the lease term or the assets useful life. Where lease arrangements contain options for renewal and extension of the lease term, such extensions are only taken into account for the purposes of determining an appropriate depreciation period when, at inception of the lease, it is reasonably certain that the Consolidated Entity will exercise the option.

Service concession assets

The University has entered into arrangements with respect to the development and refurbishment of student accommodation. Such arrangements provide for the appointment of an operator responsible for construction, asset upgrades and subsequent operation and management of the assets for an extended period. It is deemed that the University continues to control such assets primarily due to the University, as grantor:-

(i) Ultimately controlling or regulating the services that may be provided by the operator with respect to the student accommodation assets, the pricing of such services, and to whom such services may be provided; and

(ii) Controlling the significant residual interest in the infrastructure at the end of the term of the arrangement

Existing university buildings that form part of the arrangement with the external operator have been transferred from Land and Buildings into the Service Concession Assets class of assets. Capital improvements to such assets are capitalised at cost which is equivalent to their fair value.

Service concession assets under construction at reporting date are recognised at cost, which will be an amount equivalent to fair value based on depreciated replacement cost. Subsequent to initial recognition, service concession assets are measured at cost and depreciated over their useful life.

Works of Art

All works of art are initially recognised at fair value and continue to be measured at fair value, such value being based on current market values determined by a qualified independent valuer. Works of Art are not subject to depreciation having regard to their indefinite life and the expectation of increasing value over time. Such assets controlled by the University are classified as heritage assets and are protected and preserved for public exhibition, education, research and the furtherance of public service. They are neither disposed for financial gain nor encumbered in any manner.

67  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Depreciation

Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

Depreciation on other assets is calculated using the straight line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:

Asset Category Life

Buildings 25 - 50 years

Service concession assets - buildings

Computing equipment

Other equipment and furniture

Motor Vehicles

36.5 - 50 years

4 years

6 years

4 - 6 years

Works of Art

Leasehold improvements

Library collections

Not depreciated

Refer to policy above

10 years

The assets’ useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

(n) Investment properties

Investment properties exclude properties held to meet service delivery objectives of the University.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the University. Where an investment property is acquired at no cost or for nominal consideration, 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 active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset.

If this information is not available, the Consolidated Entity uses alternative valuation methods such as recent prices in less active markets or discounted cash flow projections. These valuations are reviewed annually by a member of the Australian property institute. Changes in fair values are recorded in the income statement.

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

(o) Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases (note 37(b)). The Consolidated Entity leases certain property and equipment by way of operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

  68  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(p) Intangible assets

All intangible assets are initially measured at cost. For assets acquired at no cost or for nominal cost, cost is their fair value at the date of acquisition.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, where appropriate, only when it is probable that future economic benefits associated with the item will flow to the

Consolidated Entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Amortisation is calculated on a straight line basis over the estimated useful life of the asset. The estimated useful lives for each class of intangible assets are:

Intangible asset class

Library collection

Life

10 years

Expenditure on research activities is recognised in the income statement as an expense when it is incurred.

(q) Unfunded superannuation

In accordance with the 1998 instructions issued by the Department of Education, Training and Youth Affairs now known as the Australian Government Department of Education, the effects of the unfunded superannuation liabilities of the University and its controlled entities were recorded in the statement of financial position for the first time in 1998. The prior years’ practice had been to disclose liabilities by way of a note to the financial statements.

An arrangement exists between the Australian Government and the State Government to meet the unfunded liability for the Edith Cowan University’s beneficiaries of the State Superannuation Scheme on an emerging cost basis. This arrangement is evidenced by the State Grants (General Revenue) Amendment Act 1987, Higher

Education Funding Act 1988 and subsequent amending legislation. Accordingly, the unfunded liabilities have been recognised in the statement of financial position under Provisions with a corresponding asset recognised under Receivables. The recognition of both the asset and the liability consequently does not affect the year-end net asset position of Edith Cowan University and its controlled entities.

(r)

The unfunded liabilities recorded in the statement of financial position under Provisions have been determined by an independent actuary, Mercer, and relate to: liabilities for existing employees who are members of the pension scheme have been calculated based on each member’s salary and the completed proportion of their expected total service. Members are assumed to earn entitlements to the maximum state pension at retirement.

Liabilities for existing pensioners have been calculated allowing for the level of the existing pension, the level of assumed pension indexation and expected mortality rates. Some former pension scheme members have transferred to the Gold State Super. In respect of their transferred benefit the members receive a lump sum benefit at retirement, death or invalidity which is related to their salary during their employment and indexed during any deferral period after leaving public sector employment. Liabilities for member of Gold State Super have been calculated based on their projected unfunded transferred service amounts and rates of exit.

The calculated defined benefit obligation is the sum of the accrued liabilities for all relevant employees.

Non-current assets held for sale

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

69  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

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

Non-current assets classified as held for sale are not depreciated or amortised and are presented separately from other assets in the statement of financial position.

(s) Trade and other payables

(t)

These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of the financial year, which are unpaid. Accounts payable are not interest bearing and are stated at their nominal value. The amounts are unsecured and are usually paid within 30 days of recognition.

Borrowings

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

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

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

(u) Provisions

Provisions for legal claims and service warranties are recognised when: the Consolidated Entity has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.

Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of 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 to settle the present obligation at the balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as a finance cost

  70  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(u) Provisions continued

Employee benefits

(i) Short-term obligations

Liabilities for short-term employee benefits including wages and salaries, are measured at the amount expected to be paid when the liability is settled, if it is expected to be settled wholly before twelve months after the end of the reporting period, and is recognised in other payables.

Liability for accumulating sick leave is recognised as the related service is provided by the employees and which increases their sick leave entitlement. The accumulated sick leave entitlement is measured at the additional undiscounted amount expected to be paid as a result of the unused entitlement that has accumulated at the end of the reporting period. The past history of leave utilisation is taken into account in the estimation process.

(ii) Other long-term obligations

The liability for other long-term employee benefits such as annual leave, accumulating sick leave, long service leave and post employment benefits is recognised in current provisions for employee benefits if it is not expected to be settled wholly before twelve months after the end of the reporting period. It is measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

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

(iii) Retirement benefit obligations

All employees of the Consolidated Entity are entitled to benefits on retirement, disability or death from the

Consolidated Entity’s superannuation plans. The Consolidated Entity has a defined benefit section and a defined contribution section within its plans. The defined benefit section provides defined lump sum benefits based on years of service and final average salary. The defined contribution section receives fixed contributions from

Consolidated Entity companies and the Consolidated Entity’s legal or constructive obligation is limited to these contributions. The employees of the parent entity are all members of the defined contribution section of the

Consolidated Entity’s plans

A liability or asset in respect of defined benefit superannuation plans is recognised in the balance sheet, and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligation is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Actuarial gains and losses are fully funded, refer note 1(q).

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

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

71  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Past service costs are recognised in income immediately.

Contributions to the defined contribution section of the University's superannuation fund and other independent defined contribution superannuation funds are recognised as an expense as they become payable.

For details relating to the individual schemes, refer to note 46.

(iv) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment. The Consolidated Entity recognises termination benefits either when it can no longer withdraw the offer of those benefits or when it has recognised costs for restructuring within the scope of AASB137 that involves the payment of termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits not expected to be settled wholly before 12 months after the end of the reporting period are discounted to present value.

Service concession provision

The University has recognised a service concession provision in the statement of financial position. The liability reflects the performance obligation the University has incurred to allow the operator access to, and the right to generate revenue from, service concession assets. The liability incurred is initially recognised at an amount equivalent to the value of service concession assets delivered to the University and is amortised to the statement of comprehensive income over the duration of the service concession arrangement. As a provision, it is subsequently measured at the best estimate of the amount that the University would rationally pay to settle the obligation at the reporting date or to transfer it to a third party. This will generally equate to the unamortised balance at each reporting date.

(v) Foreign currency translation and hedge accounting

(i) Functional and presentation currency

Items included in the financial statements of each of the Consolidated Entity’s entities are measured using the currency of the primary economic environment in which the entity operations (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is the University’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Qualifying cash flow hedges shall be accounted for by recognising the portion of the gain or loss determined to be an effective hedge in other comprehensive income and the ineffective portion in the income statement.

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

  72  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(w) Goods and Services Tax (GST)

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

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of

GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.

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

(x) Comparative amounts

Where necessary, comparative information has been reclassified to enhance comparability in respect of changes in presentation adopted in the current year.

(y) New Accounting Standards and interpretations

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Consolidated Entity has decided against early adoption of these standards. The following table summarises those future requirements, and their impact on the

Consolidated Entity:

Standard Name

Effective date for entity Requirements Impact

AASB 9 Financial Instruments and amending standards

AASB 2010-7 / AASB 2012-6

1 January 2015 Changes to the classification and measurement requirements for financial assets and financial liabilities.

The Consolidated

Entity will consider the provisions of this standard when

New rules relating to derecognition of applicable. financial instruments.

73  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

AASB 10 Consolidated

Financial Statements / AASB

11 Joint Arrangements / AASB

12 Disclosures of Interests in

Other Entities, AASB 127

Separate Financial

Statements, AASB 128

Investments in Associates and

AASB 2012-10 Amendments to Australian Accounting

Standards - Transition

Guidance and Other

Amendments

1 January 2014 AASB 10 includes a new definition of control, which is used to determine which entities are consolidated, and describes consolidation procedures.

The Standard provides additional guidance to assist in the determination of control where this is difficult to assess.

AASB 11 focuses on the rights and obligations of a joint venture arrangement, rather than its legal form (as is currently the case). IFRS

11 requires equity accounting for joint ventures, eliminating proportionate consolidation as an accounting choice.

AASB 12 includes disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles.

The Consolidated

Entity will consider the provisions of these standards when applicable.

1 January 2014 This standard specifies the nature of budgetary disclosures and circumstances for inclusion in the financial statements.

No impact as the entity is not a public sector entity.

AASB 1055 - Budgetary

Reporting

AASB 2013-1 Amendments to

AASB 1049 - Relocation of

Budgetary Reporting

Requirements

AASB 2012-3 Amendments to

Australian Accounting

Standards - Offsetting

Financial Assets and Financial

Liabilities [AASB 132]

AASB 2013-4 Amendments to

Australian Accounting

Standards – Novation of

Derivatives and Continuation of Hedge Accounting

1January 2014 This standard adds application guidance to AASB 132 to assist with applying some of the offset criteria of the standard.

1 January 2014 To permit the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations.

There will be no impact to the entity as there are no offsetting arrangements currently in place.

The Consolidated

Entity will consider the provisions of this standard when applicable.

  74  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

1 Summary of significant accounting policies continued

(y) New Accounting Standards and interpretations continued

AASB 2013-5 Amendments to

Australian Accounting

Standards – Investment

Entities

1 January 2014 The standard defines an investment entity and require that, with limited exceptions, an investment entity not consolidate its subsidiaries or apply

AASB 3 Business Combinations when it obtains control of another entity. These amendments require an investment entity to measure unconsolidated subsidiaries at fair value through the income statement in accordance with AASB 9 Financial

Instruments in its consolidated and separate financial statements. The amendments also introduce new disclosure requirements for investment entities to AASB 12

Disclosure of Interests in Other

Entities and AASB 127 Separate

Financial Statements.

The Consolidated

Entity will consider the provisions of this standard when applicable.

AASB 2013-7 Amendments to

AASB 1038 arising from AASB

10 in relation to consolidation and interests of policyholders

[AASB 1038]

1 January 2014 This Standard removes the specific consolidation 1requirements from

AASB 1038 Life Insurance

Contracts, and thereby leave AASB

10 Consolidated Financial

Statements as the sole source for consolidation requirements applicable to life insurer entities.

No impact on the

Consolidated Entity.

AASB 2013-8 Amendments to

Australian Accounting

Standards – Australian

Implementation Guidance for

Not-for-Profit Entities – Control and Structured Entities

1 January 2014 The AASB has issued this Standard to add an appendix to AASB 10 to explain and illustrate how the principles in AASB 10 apply from the

The Consolidated

Entity will consider the provisions of this standard when perspective of not-for-profit entities in applicable. the private and public sectors, particularly to address circumstances where a for-profit perspective does not readily translate to a not-for-profit perspective. Similarly, the Standard adds an appendix to AASB 12, in relation to structured entities.

(z) Rounding of amounts

The University is of a kind referred to in Class order 98/0100 as amended by Class order 04/667, issued by the

Australian Securities and Investments Commission, relating to the ''rounding off'' of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

75  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

2 Australian Government financial assistance including HECS-HELP and other Australian Government loan programs

(a) Commonwealth Grants Scheme and Other Grants

Commonwealth Grants Scheme

Indigenous Support Program

#1

Partnership and Participation Program

#2

Disability Support Program

Transitional Cost Program

Promotion of Excellence in Learning and

Teaching

Reward Funding

Other

Total Commonwealth Grants Scheme and other grants

Note

Consolidated

2013

$000's

2012

$000's

132,168

619

2,770

84

-

131,197

593

3,210

66

92

47(a)

42

330

2,781

138,794

50

333

7,067

142,608

2013

$000's

Parent

2012

$000's

132,168

619

2,770

84

-

131,197

593

3,210

66

92

42

330

2,781

138,794

50

333

7,067

142,608

(b) Higher Education Loan Programs

HECS - HELP

FEE - HELP

#3

SA - HELP

Total Higher Education Loan Programs

47(h)

47(b)

73,851

13,019

953

87,823

66,642

9,711

222

76,575

73,851

13,019

953

87,823

66,642

9,711

222

76,575

1,641

162

86

40

61

1,990

1,840

174

172

162

83

2,431

1,641

162

86

40

61

1,990

1,840

174

172

162

83

2,431

2,579

4,583

441

709

452

8,764

2,417

4,481

509

710

906

9,023

2,579

4,583

441

709

452

8,764

2,417

4,481

509

710

906

9,023

  76  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

2 Australian Government financial assistance including HECS-HELP and other Australian Government loan programs continued

(e) Australian Research Council

(i) Discovery

Projects

(ii) Linkages

Projects

Total Australian Research Council

Note

47(e)(i)

47(e)(ii)

Consolidated

2013

$000's

2012

$000's

208 188

367

575

492

680

2013

$000's

Parent

2012

$000's

208 188

367 492

575 680

(f) Other Australian Government financial assistance

Non-capital

National competitive

Other research grants

Other non-research grants

Total

Capital

Other non-research grants

Total other Australian Government financial assistance

Total Australian Government financial

assistance

2,414

1,852

3,442

7,708

4,900

12,608

250,554

2,487

2,528

3,636

8,651

4,601

13,252

244,569

2,414

1,852

3,442

7,708

4,900

12,608

250,554

2,487

2,528

3,636

8,651

4,601

13,252

244,569

#1 Includes the basic CGS grant amount, CGS - Regional Loading, CGS - Enabling Loading, Maths and Science Transition Loading,

Allocated Places Advance and Non-designated Courses Advance.

#2 Includes Equity Support Program.

#3 Program in respect of FEE-HELP for Higher Education only and excludes funds received in respect of VET FEE HELP.

#4 Includes Grandfather Scholarships, National Priority and National Accommodation Priority Scholarships.

#5 Includes Institutional Grants Scheme.

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Reconciliation

Australian Government grants (a + c + d + e + f )

HECS - HELP payments

FEE - HELP payments

SA - HELP payments

162,731

73,851

13,019

953

167,994

66,642

9,711

222

162,731

73,851

13,019

953

167,994

66,642

9,711

222

Total Australian Government financial assistance

250,554 244,569 250,554 244,569

77

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

(g) Australian Government Grants received - cash basis (Ref note 47)

Consolidated

2013

$000's

CGS and Other Education grants

Higher Education Loan Programs

Scholarships

Education research

ARC grants - Discovery

ARC grants - Linkages

Other Australian Government grants

47(a)

47(b)

47(c)

47(d)

47(e)

47(e)

139,360

86,804

881

9,659

208

367

11,182

2012

$000's

143,159

81,370

3,212

9,033

188

493

11,593

Total Australian Government grants received - cash basis

OS-Help (Net)

Superannuation Supplementation

Total Australian Government funding received - cash basis

47(f)

47(g)

248,461

60

2,704

251,225

249,048

(8)

3,209

252,249

2013

$000's

Parent

2012

$000's

139,360

86,804

881

143,159

81,370

3,212

9,659

208

367

11,182

9,033

188

493

11,593

248,461

60

2,704

251,225

249,048

(8)

3,209

252,249

3 State and Local Government financial assistance

Government grants were received during the reporting period for the following purposes:

Consolidated

2013

$000's

2012

$000's

Non-capital

WA State Department of Education and Training*

WA State Government research grants

8,467

5,113

8,207

3,589

Total State and Local Government financial assistance

13,580 11,796

Parent

2013

$000's

2012

$000's

8,467

5,113

13,580

8,207

3,589

11,796

*The funding relates to Western Australian Academy of Performing Arts (WAAPA)

  78  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

4 Fees and charges

Course fees and charges

Fee-paying overseas students

Continuing education

Fee-paying domestic postgraduate students

Fee-paying domestic undergraduate students

Fee-paying domestic non-award students

Total course fees and charges

Other non-course fees and charges

Student services and amenities fees

Examination, registration and photocopying fees

Other fees and charges

Parking fees

Rental charges

Other

Total Other Fees and Charges

Total fees and charges

Consolidated

2013

$000's

2012

$000's

55,353

446

5,751

86

85

61,721

1,734

1,277

1,462

2,553

8,047

69,768

490

531

56,990

811

4,727

89

-

62,617

1,178

514

1,424

1,494

2,446

635

7,691

70,308

Parent

2013

$000's

2012

$000's

55,353

446

5,751

86

85

61,721

1,734

490

1,277

1,462

2,553

531

8,047

69,768

56,990

811

4,727

89

-

62,617

5 Investment revenue and income

Investment revenue

Interest revenue from operating account

Interest from bank bills

Rental income from investment properties

Total investment revenue

Other investment income

Dividends received

Distributions from managed funds

Net gain on disposal of available-for-sale financial assets transferred from equity

Total other investment income

Other investment losses

Net change in fair value of investment properties

Net investment income

Consolidated

2013

$'000

2012

$'000

349

10,552

756

11,657

111

702

535

8,197

-

8,732

115

656

3,180

3,993

(7,547)

8,103

-

771

(1,093)

8,410

2013

$'000

Parent

2012

$'000

349

10,552

756

472

8,197

-

11,657

111

702

8,669

115

656

3,180

3,993

(7,547)

8,103

-

771

(1,093)

8,347

1,178

514

1,424

1,494

2,446

635

7,691

70,308

79  

 Edith  Cowan  University  Annual  Report  2013  

 

6 Royalties

Royalties

7 Consultancy and contracts

Consultancy

Contract research

Total consultancy and contracts

8 Other revenue and income

Other revenue

Donations and bequests

Scholarships and prizes

Proceed from sale of non-capitalised equipment

Professional development courses

Commissions, recoveries and rebates received

Expense recoups

Box office sales

Sundry income

Medical practitioners' fees

Other revenue

Total other revenue

Other income

Service concession income

Other income

Total other income

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Consolidated

2013

$000's

2012

$000's

4,588 7,018

Parent

2013

$000's

2012

$000's

4,588 4,022

Consolidated

2013

$000's

2012

$000's

379

5,149

5,528

374

5,877

6,251

2013

$000's

Parent

2012

$000's

379

5,149

5,528

374

5,877

6,251

Consolidated

2013

$000's

2012

$000's

1,896

1,403

162

-

5,061

53

473

892

133

486

10,559

948

1,007

1,955

436

1,022

19

684

2,015

61

499

892

177

449

6,254

948

54

1,002

2013

$000's

Parent

2012

$000's

1,896

1,403

162

-

5,061

53

473

892

133

486

436

1,578

19

-

2,015

61

499

746

177

449

5,980 10,559

948

1,007

1,955

948

54

1,002

  80  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

9 Gains on disposal of assets

Proceeds from sale of property, plant and equipment and non-current assets held for sale

Carrying amount of property, plant and equipment and non-current assets held for sale - sold

Proceeds from sale of intangible assets

Net gain on disposal

Consolidated

2013

$000's

2012

$000's

19,215 20,406

2013

$000's

Parent

2012

$000's

19,215 20,406

(17,294)

-

1,921

(17,884)

9

2,531

(17,294)

-

1,921

(17,838)

-

2,568

10 Employee related expenses

Academic

Salaries

Contributions to superannuation and pension schemes

Payroll tax

Worker's compensation

Long service leave expense

Annual leave

Other

Total academic

Non-academic

Salaries

Contributions to superannuation and pension schemes

Payroll tax

Worker's compensation

Long service leave expense

Annual leave

Other

Total non-academic

Total employee related expenses

Consolidated

2013

$000's

2012

$000's

79,929 82,057

2013

$000's

Parent

2012

$000's

79,929 82,057

11,837

5,494

181

2,782

249

549

101,021

93,572

13,101

5,926

240

2,433

243

429

115,944

216,965

11,713

4,939

30

2,166

240

721

101,866

90,509

112,677

214,543

13,407

5,574

92

2,048

293

754

11,837

5,494

181

2,782

249

549

101,021

93,572

13,101

5,926

240

2,433

243

429

115,944

216,965

11,713

4,939

30

2,166

240

721

101,866

88,617

13,054

5,459

107

2,027

255

528

110,047

211,913

81

 

 Edith  Cowan  University  Annual  Report  2013  

 

11 Depreciation and amortisation

Depreciation

Buildings

Service concession assets

Leasehold improvements

Other equipment and furniture

Computing equipment

Motor vehicles

Library collections

Total depreciation

Amortisation

Intangible assets

Total depreciation and amortisation

12 Repairs and maintenance

Buildings maintenance

Grounds maintenance

Other equipment maintenance

Total repairs and maintenance

13 Borrowing costs

Interest paid

Less: amount capitalised

Total borrowing costs expensed

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Consolidated

2013

$000's

2012

$000's

13,325

1,209

968

3,321

2,690

95

1,029

22,637

13,806

1,559

534

3,037

1,341

82

999

21,358

963

23,600

909

22,267

2013

$000's

Parent

2012

$000's

13,325

1,209

968

3,321

2,690

95

1,029

22,637

13,806

1,559

516

3,034

1,334

82

999

21,330

963

23,600

909

22,239

Consolidated

2013

$000's

2012

$000's

7,366

904

876

9,146

6,925

795

914

8,634

2013

$000's

Parent

2012

$000's

7,366

904

876

9,146

6,907

795

914

8,616

Consolidated

2013

$000's

2012

$000's

4,949

(881)

4,068

3,763

(169)

3,594

2013

$000's

Parent

2012

$000's

4,949

(881)

4,068

3,763

(169)

3,594

  82  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

14 Impairment of assets

Bad and doubtful debts

Impairment of investments

Impairment of inventory

Impairment of intangibles

Total impairment of assets

Consolidated

2013

$000's

2012

$000's

-

-

-

-

-

1,147

13

44

217

1,421

2013

$000's

Parent

2012

$000's

-

-

-

-

1,147

13

-

-

- 1,160

* Additional details on impairments of receivables are included at note 18 .

15 Other expenses

Scholarships, grants and prizes

Advertising and marketing

Promotions and sponsorships

Audit fees, bank charges, legal costs and insurance

Computer software and maintenance

General consumables

Hire and lease costs

Library subscriptions

Non-capitalised equipment

Operating lease rental expenses

Printing and stationery

Professional and consulting fees

Student related expenditure

Telecommunications

Travel, staff development and entertainment

Utilities and rates

Net loss on asset write-offs

#1

Student Practicum and related expenses

Miscellaneous

Total other expenses

2,754

14,237

8,960

1,184

5,969

7,043

36

3,107

8,655

8,246

5,794

2,388

1,984

11,438

4,815

1,604

1,355

3,744

253

93,566

Consolidated

2013

$000's

2012

$000's

9,487

5,932

3,076

1,712

11,750

5,855

3,042

1,990

4,030

365

3,533

13,852

5,960

1,715

6,704

6,779

48

2,618

9,307

97,755

2013

$000's

Parent

2012

$000's

2,754

14,237

8,960

1,184

5,969

7,043

36

3,107

8,655

8,246

5,794

2,388

1,984

11,438

4,815

1,604

1,355

3,744

253

93,566

3,481

13,803

5,960

1,692

6,608

6,779

48

2,618

8,569

9,486

5,882

3,076

1,584

11,750

4,860

2,531

1,990

4,030

365

95,112

#1 Additional detail on write-offs during the year are included at note 45.

83

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

16 Income tax expense

(a) Income tax expense / (benefit)

Current tax

Deferred tax

Income tax expense is attributable to:

Operating results from continuing operations

Aggregate income tax (benefit)/expense

Deferred income tax (revenue)/expense included in income tax expense comprises

Decrease/(increase) in deferred tax assets

Increase/(decrease) in deferred tax liabilities

Note

26

26

Consolidated

2013

$000's

2012

$000's

-

-

(49)

104

55 -

-

-

55

55

-

-

-

191

(87)

104

Income tax is only in relation to the controlled entity ECURL, which includes overseas branches.

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

Operating results form continuing operations before income tax expense

Less: Non-taxable operating result from Australian operations

Tax at the Australian tax rate of 30% (2012: 30%)

Adjust for current tax of prior years

Previously unrecognised tax losses used to reduce current tax expense

Tax losses carried forward not recognised

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

Sundry items

Income tax expense adjusted for permanent differences

Consolidated

2013

$000's

2012

$000's

33,602

(33,602)

-

25,659

(25,987)

(328)

-

-

-

-

-

(98)

104

(49)

98

55

-

-

-

-

Tax losses carried forward not recognised

Total income tax expense

-

-

-

55

  84  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

16 Income tax expense continued

(c) Amounts recognised directly in equity

There was no amount recognised directly in equity.

(d) Tax losses

There are no unused tax losses as at 31 December 2013.

17 Cash and cash equivalents

Cash at bank

Bank Bills

Cash held in imprests

Total cash and cash equivalent

Consolidated

2013

$000's

2012

$000's

10,916

55,526

10

66,452

13,351

38,068

10

51,429

Parent

2013

$000's

2012

$000's

10,916

55,526

10

13,351

38,068

10

66,452 51,429

(a) Reconciliation to cash at the end of the year

The above figures are reconciled to cash at the end of the year as shown in the statement of cash flows as follows:

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Note

Unrestricted cash

Restricted funds

Balance as per cash flow statement

33

57,722

8,730

66,452

44,788

6,641

51,429

57,722

8,730

66,452

44,788

6,641

51,429

(b) Cash at bank and held in imprests

Cash in operating accounts earns interest at the rate of 2.45% (2012: 2.95%).

(c) Bank Bills

The bank bills are bearing fixed interest rates between 3.29% and 3.75% (2012: 4.36% and 4.65%). These deposits have an average maturity of 90 days.

85  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

18 Receivables

Current

Trade receivables and student fees

Less: Provision for impaired receivables

Deferred Government contributions for superannuation

GST and withholding tax receivable

Total current receivables

Non-current

Deferred Government contribution for superannuation

Total non-current receivables

Total trade and other receivables

Consolidated

2013

$000's

2012

$000's

8,474

(1,292)

6,629

(1,956)

7,182

2,856

2,120

12,158

4,673

2,887

1,570

9,130

22,986

22,986

35,144

26,816

26,816

35,946

2013

$000's

Parent

2012

$000's

8,474

(1,292)

6,629

(1,956)

7,182

2,856

2,120

4,673

2,887

1,570

9,130 12,158

22,986

22,986

35,144

26,816

26,816

35,946

Impaired receivables

As at 31 December 2013 current receivables of the Consolidated Entity with a nominal value of $1.3m (2012: $2.0m) were impaired. It was assessed that a portion of the receivables is expected to be recovered.

The ageing analysis of these receivables is as follows:

3 to 6 months

Over 6 months

Consolidated

2013

$000's

2012

$000's

585

707

430

1,526

1,292 1,956

As at 31 December 2013, trade receivables of $1.9m (2012: $1.1m) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default.

The ageing analysis of these receivables is as follows:

3 months or less

3 to 6 months

Consolidated

2013

$000's

2012

$000's

1,692

242

1,030

31

1,934 1,061

  86  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

Movements in the provision for impaired receivables are as follows:

At 1 January

Provision for impairment recognised during the year

Receivables written off during the year as uncollectible

Amounts recovered during the year

At 31 December

Consolidated

2013

$'000

2012

$'000

1,956

(595)

(68)

(1)

843

1,147

(26)

(8)

1,292 1,956

The provision for impaired receivables recognised during the year, has been included in ‘Impairment of assets’ in the income statement. Amounts charged to the provision account are generally written off when there is no expectation of recovering additional cash.

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

19 Inventories

Current

At cost:

Trading stock

Consolidated

2013

$000's

2012

$000's

-

-

1,783

1,783

2013

$000's

Parent

2012

$000's

- 1,783

- 1,783

20 Derivative financial instruments

Current assets

Derivative financial instruments

Consolidated

2013

$000's

2012

$000's

21 -

Parent

2013

$000's

2012

$000's

21 -

(a) Instruments used by the Consolidating Entity

The Consolidated Entity is party to derivative financial instruments in the normal course of business in order to hedge exposure to fluctuations in foreign exchange rates in accordance with the University’s financial risk management policies (refer to note 43).

In order to protect against exchange rate movements, the University had entered into a forward exchange contract to purchase foreign currency.

These contracts are hedging obligations for payments for the ensuing financial year. The contracts are timed to mature when payments for major shipments of component parts are scheduled to be made.

The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in equity. When the cash flows occur, the University adjusts the initial measurement of the component recognised in the balance sheets by the related amount deferred in equity.

87  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

(b) Interest rate and foreign exchange risk

For an analysis of the sensitivity of derivatives to interest rate and foreign exchange risk refer to note 43.

21 Other financial assets

Current

Held-to-maturity

Term deposits

Total current other financial assets

Non-Current

Available-for-sale investments

Investment in shares

Investment in managed funds

Held-to-maturity

Term deposits

Total non-current other financial assets

Total other financial assets

Consolidated

2013

$000's

2012

$000's

114,768

114,768

92,476

92,476

2,572

18,808

50,000

71,380

186,148

1,880

17,731

50,000

69,611

162,087

2013

$000's

Parent

2012

$000's

114,768

114,768

92,476

92,476

2,572

18,808

50,000

71,380

186,148

1,880

17,731

50,000

69,611

162,087

22 Non-current assets classified as held for sale

Non-current assets held for sale

Plant and equipment

Land

Total non-current assets held for sale

Consolidated

2013

$000's

2012

$000's

-

1,305

1,305

37

16,816

16,853

2013

$000's

Parent

2012

$000's

-

1,305

37

16,816

1,305 16,853

23 Other non-financial assets

Current

Accrued income

Advances and prepayments

Total current other non-financial assets

Consolidated

2013

$000's

2012

$000's

4,627

3,556

8,183

12,131

2,413

14,544

2013

$000's

Parent

2012

$000's

4,627

3,556

12,131

2,413

8,183 14,544

  88  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

24 Investment properties

At fair value

Opening balance at 1 January

Additions

Transfers from property, plant and equipment

Loss on revaluation

Closing balance as at 31 December

Consolidated

2013

$000's

2012

$000's

9,820

9,287

2,050

(7,547)

13,610

10,913

-

-

(1,093)

9,820

2013

$000's

Parent

2012

$000's

9,820

9,287

2,050

(7,547)

13,610

10,913

-

-

(1,093)

9,820

(a) Amounts recognised in income statement for investment properties

Consolidated

2013

$000's

2012

$000's

Loss on revaluation 7,547 1,093

Total recognised in income statement

7,547 1,093

2013

$000's

Parent

2012

$000's

7,547

7,547

1,093

1,093

(b) Valuation basis

The fair value of all land and buildings has been determined by reference to recent market transactions. The investment properties have been valued as at 31 December 2013 by independent professional valuers

89

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

25 Property, plant and equipment

Parent

Year ended 31 December 2012

Opening net book amount

Additions

Disposals

Accumulated depreciation on disposals

Write-offs during the year

Accumulated depreciation on write-offs

Revaluation increments/(decrements)

Classified as non-current assets held for sale

Depreciation expense

Transfers

Work in progress

$000's

11,307

32,953

-

-

-

-

-

-

-

(27,890)

Closing net book amount

At 31 December 2012

- Cost

- Valuation

Accumulated depreciation

16,370

16,370

-

-

Net book amount

16,370

Land

$000's

123,389

1,510

(549)

-

-

-

(58)

(3,398)

-

2,083

Buildings

$000's

555,650

-

-

-

-

-

(3,454)

-

(13,806)

23,408

Service concession assets - land

$000's

Service concession assets - build ing

$000's

Leasehold improvement s

$000's

Works of Art

$000's

Library

Collections

$000's

Motor

Vehicles

$000's

11,149

-

-

-

-

-

-

-

-

-

51,852

-

-

-

-

-

-

-

(1,559)

-

10,068

-

-

-

-

-

297

-

(516)

-

12,537

148

-

-

-

-

183

-

-

-

6,116

-

-

-

-

-

-

-

(999)

939

193

240

(18)

9

-

-

-

-

(82)

-

Other equipment and furniture

$000's

Computer

Equipment

$000's

8,108

3,696

(462)

431

(184)

177

-

(37)

(3,034)

970

2,396

781

-

-

(12)

12

-

-

(1,334)

490

122,977

-

122,977

-

561,798

-

561,798

-

11,149

11,149

-

-

50,293

53,488

-

(3,195)

9,849

-

9,849

-

12,868

-

12,868

-

6,056

11,470

-

(5,414)

342

663

-

(321)

9,665

36,731

-

(27,066)

2,333

10,672

-

(8,339)

122,977 561,798 11,149 50,293 9,849 12,868 6,056 342 9,665 2,333

Total

$000's

140,543

707,492

(44,335)

803,700

792,765

39,328

(1,029)

440

(196)

189

(3,032)

(3,435)

(21,330)

-

803,700

  90  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

25 Property, plant and equipment continued

Year ended 31 December 2013

Opening net book amount

Additions

Disposals

Accumulated depreciation on disposals

Write-offs during the year

Accumulated depreciation on write-offs

Revaluation increments/(decrements)

Reclassifications in/(out)

Transferred to investment properties

Depreciation expense

Transfers

16,370

25,154

-

-

-

-

-

-

-

-

(6,958)

122,977

1,230

(1,230)

-

-

-

3,610

(468)

(2,050)

-

-

Closing net book amount

At 31 December 2013

- Cost

- Valuation

Accumulated depreciation

Net book amount

34,566

34,566

-

-

34,566

124,069

-

124,069

-

124,069

561,798

-

(408)

16

-

-

(25,540)

-

-

(13,325)

3,197

525,738

-

525,738

-

525,738

11,149

-

-

-

-

-

-

468

-

-

-

11,617

11,617

-

-

11,617

50,293

-

-

-

-

-

-

-

-

(1,209)

-

49,084

53,488

-

(4,404)

49,084

9,849

-

-

-

-

-

(1,766)

-

-

(968)

2,000

9,115

-

9,115

-

9,115

12,868

63

-

-

(10)

-

-

-

-

-

-

12,921

-

12,921

-

12,921

6,056

-

-

-

-

-

-

-

-

(1,028)

558

5,586

12,029

-

(6,443)

5,586

381

762

-

(381)

381

342

138

(39)

35

-

-

-

-

-

(95)

-

9,665

2,200

(1,094)

965

(33)

29

-

-

-

(3,321)

667

9,078

38,471

-

(29,393)

9,078

2,333

607

(350)

350

-

-

-

-

-

(2,690)

536

786

11,472

-

(10,686)

786

803,700

29,392

(3,121)

1,366

(43)

29

(23,696)

-

(2,050)

(22,636)

-

782,941

162,405

671,843

(51,307)

782,941

91  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Consolidated

Year ended 31 December 2012

Opening net book amount

Additions

Disposals

Accumulated depreciation on disposals

Write-offs during the year

Accumulated depreciation on write-offs

Revaluation increments/(decrements)

Foreign currency valuation and translation

Classified as non-current assets held for sale

Depreciation expense

Transfers

Work in progress

$000's

11,307

32,953

-

-

-

-

-

-

-

-

(27,890)

Closing net book amount

At 31 December 2012

- Cost

- Valuation

Accumulated depreciation

16,370

16,370

-

-

Net book amount

16,370

122,977

-

122,977

-

122,977

Land

$000's

123,389

1,510

(549)

-

-

-

(58)

-

(3,398)

-

2,083

Buildings

$000's

Service concession assets - land

$000's

Service concession assets - build ing

$000's

Leasehold improvement s

$000's

Works of Art

$000's

Library

Collections

$000's

Motor

Vehicles

$000's

555,650

-

-

-

-

-

(3,454)

-

-

(13,806)

23,408

11,149

-

-

-

-

-

-

-

-

-

-

51,852

-

-

-

-

-

-

-

-

(1,559)

-

10,101

-

-

-

-

-

297

(15)

-

(534)

-

12,537

148

-

-

-

-

183

-

-

-

-

6,116

-

-

-

-

-

-

-

-

(999)

939

193

240

(18)

9

-

-

-

-

-

(82)

-

Other equipment and furniture

$000's

Computer

Equipment

$000's

8,130

3,699

(559)

508

(184)

177

-

(2)

(37)

(3,037)

970

2,433

786

(143)

117

(12)

12

-

(9)

-

(1,341)

490

561,798

-

561,798

-

561,798

11,149

11,149

-

-

11,149

50,293

53,488

-

(3,195)

50,293

9,849

-

9,849

-

9,849

12,868

-

12,868

-

12,868

6,056

11,470

-

(5,414)

6,056

342

663

-

(321)

342

9,665

36,731

-

(27,066)

9,665

2,333

10,672

-

(8,339)

2,333

Total

$000's

140,543

707,492

(44,335)

803,700

792,857

39,336

(1,269)

634

(196)

189

(3,032)

(26)

(3,435)

(21,358)

-

803,700

  92  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

25 Property, plant and equipment continued

Year ended 31 December 2013

Opening net book amount

16,370

Additions

Disposals

Accumulated depreciation on disposals

25,154

-

-

Write-offs during the year

Accumulated depreciation on write-offs

Revaluation increments/(decrements)

Reclassifications in/(out)

Transferred to investment properties

Depreciation expense

Transfers

-

-

-

-

-

-

(6,958)

122,977

1,230

(1,230)

-

-

-

3,610

(468)

(2,050)

-

-

Closing net book amount

At 31 December 2013

- Cost

- Valuation

Accumulated depreciation

Net book amount

34,566

34,566

-

-

34,566

124,069

-

124,069

-

124,069

561,798

-

(408)

16

-

-

(25,540)

-

-

(13,325)

3,197

525,738

-

525,738

-

525,738

11,149

-

-

-

-

-

-

468

-

-

-

11,617

11,617

-

-

11,617

50,293

-

-

-

-

-

-

-

-

(1,209)

-

49,084

53,488

-

(4,404)

49,084

9,849

-

-

-

-

-

(1,766)

-

-

(968)

2,000

9,115

-

9,115

-

9,115

12,868

63

-

-

(10)

-

-

-

-

-

-

12,921

-

12,921

-

12,921

6,056

-

-

-

-

-

-

-

-

(1,028)

558

5,586

12,029

-

(6,443)

5,586

381

762

-

(381)

381

342

138

(39)

35

-

-

-

-

-

(95)

-

9,665

2,200

(1,094)

965

(33)

29

-

-

-

(3,321)

667

9,078

38,471

-

(29,393)

9,078

2,333

607

(350)

350

-

-

-

-

-

(2,690)

536

786

11,472

-

(10,686)

786

803,700

29,392

(3,121)

1,366

(43)

29

(23,696)

-

(2,050)

(22,636)

-

782,941

162,405

671,843

(51,307)

782,941

93  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

(a) Valuations of land, buildings and Works of art

Land, buildings and leasehold improvements were revalued as at 31 December 2013 by independent professional valuers. The fair value of all land has been determined by reference to recent market transactions and the fair value of buildings and leasehold improvements have been determined by reference to the cost of replacing the remaining future economic benefits, refer to note 1(m).

Works of art are heritage assets and have been valued as at 31 December 2012. by independent professional valuers, the fair value of works of art has been determined by reference to recent market transactions.

(b) Service concession assets

The University entered into a Service Concession Arrangement with Campus Living Villages (‘CLV’), an entity that specialises in the construction, operation and maintenance of long-term student accommodation services.

As part of this arrangement, CLV has constructed a 355 bed student village at the Mt Lawley Campus; commenced construction of a 127 bed student accommodation in Joondalup and continue to undertake refurbishment of existing accommodation at Mt Lawley, Joondalup and Bunbury campuses. CLV has assumed management of all such accommodation. CLV is compensated for the provision of capital works to the University through the granting of rights by the University to CLV allowing CLV to operate and enjoy full access to such assets, including the retention of all rental income.

The term of the arrangement is for 38 years in total, at which time CLV management and operational rights will cease, and the full operation and management will return to the University. The financial statements reflect the control of all such assets by the University pursuant to the principles of service concession accounting.

A breakdown of service concession assets at reporting date is:

Consolidated

2013

$000's

2012

$000's

Land

Buildings

Work in progress

11,617

49,084

1,433

11,149

50,293

-

Net book amount

62,134 61,442

2013

$000's

Parent

11,617

49,084

1,433

2012

$000's

11,149

50,293

-

62,134 61,442

26 Deferred tax assets and liabilities

Deferred tax assets

Movements

At 1 January

Credited to the income statement

At 31 December

Consolidated

2013

$000's

2012

$000's

-

-

193

(193)

- -

  94  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

26 Deferred tax assets and liabilities continued

Deferred tax liabilities

Movements

At 1 January

Charged to the income statement

At 31 December

Consolidated

2013

$000's

2012

$000's

-

-

87

(87)

- -

27 Intangible assets

Consolidated

Year ended 31 December 2012

Opening net book amount

Additions

Amortisation charge

Disposals

Accumulated amortisation on intangible assets retired

Impairment

Computer software

$000's

-

-

-

-

-

-

Publishing titles

$000's

217

-

-

(217)

217

(217)

Library collections

$000's

5,421

1,155

(909)

-

-

-

Closing net book amount

At 31 December 2012

- Cost

- Accumulated amortisation and impairment

Net book amount

Year ended 31 December 2013

Opening net book amount

Additions

Amortisation charge

-

7,150

(7,150)

-

-

-

-

-

-

-

-

-

-

-

5,667

10,768

(5,101)

5,667

5,667

1,399

(963)

Closing net book amount

At 31 December 2013

- Cost

- Accumulated amortisation and impairment

Net book amount

-

-

-

-

-

-

-

-

6,103

12,168

(6,065)

6,103

Total

$000's

17,918

(12,251)

5,667

5,667

1,399

(963)

6,103

12,168

(6,065)

6,103

5,638

1,155

(909)

(217)

217

(217)

5,667

95  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

28 Trade and other payables

Current

Trade and other payables

CGS and other liabilities to Australian Government

OS HELP liabilities to Australian Government

GST payable

Total trade and other payables

Consolidated

2013

$000's

2012

$000's

5,728

405

93

269

6,495

8,708

996

34

551

10,289

2013

$000's

Parent

2012

$000's

5,728

405

93

269

6,495

8,708

996

34

551

10,289

The fair value of trade and other payables is equal to their carrying value.

(a) Foreign currency risk

The carrying amounts of the Consolidated Entity's trade and other payables are all denominated in Australian

Dollars.

29 Borrowings

Current - Unsecured

Western Australian Treasury Corporation

Non-current - Unsecured

Western Australian Treasury Corporation

Total borrowings

Consolidated

2013

$000's

2012

$000's

172 2,320

90,145

90,317

90,067

92,387

Parent

2013

$000's

2012

$000's

172 2,320

90,145 90,067

90,317 92,387

  96  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

29 Borrowings continued

(a) Financing arrangements

Unrestricted access was available at reporting date to the following lines of credit:

Consolidated

2013

$000's

2012

$000's

Credit standby arrangements

Total facilities

Western Australian Treasury Corporation

Bank facilities

100,417

6,050

100,638

6,050

Total facilities 106,467 106,688

Used at balance date

Western Australian Treasury Corporation

Bank facilities

Total used at balance date

90,317

211

90,528

92,387

272

92,659

2013

$000's

Parent

2012

$000's

100,417

6,050

106,467

100,638

6,050

106,688

90,317

211

90,528

92,387

272

92,659

Unused at balance date

Western Australian Treasury Corporation 10,100 8,251 10,100 8,251

Bank facilities 5,839 5,778 5,839 5,778

Total unused at balance date 15,939 14,029 15,939 14,029

Bank loan facilities

Total facilities

Used at balance date

Unused at balance date

106,467

90,528

15,939

106,688

92,659

14,029

106,467

90,528

15,939

106,688

92,659

14,029

The current interest rates on loans from Western Australian Treasury Corporation range between 3.57% and 5.35%, depending on the type of borrowing (2012: 4.13% and 7.10%).

A majority of the used bank facilities of $0.2m (2012: $0.3m) represent credit card balances outstanding as at year end which are included as part of trade and other payables in note 28.

97  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

(b) Fair value

The carrying amounts and fair values of borrowings at reporting date are:

Consolidated

2013

Carrying amount

$000's

Fair value

$000's

On-statement of financial position*

Borrowings

Western Australian Treasury Corporation

90,317

90,317

2012

Carrying amount

$000's

Fair value

$000's

92,387

90,317

90,317 92,387

92,387

92,387

Parent Entity

On-statement of financial position*

Borrowings

Western Australian Treasury Corporation

90,317

90,317

90,317

90,317

92,387

92,387

92,387

92,387

*The fair value of borrowings equals their carrying amount, as the impact of discounting is not significant.

(c) Risk exposures

The exposure of the Consolidated Entity’s and parent entity’s borrowings to interest rate changes and the contractual repricing dates at the reporting dates are as follows:

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

6 months or less

6 to 12 months

1 to 5 years

Over 5 years

85

87

35,145

55,000

621

41,349

417

50,000

85

87

35,145

55,000

621

41,349

417

50,000

90,317 92,387 90,317 92,387

These borrowings are classified as follows:

Current borrowings

Non-current borrowings

172

90,145

90,317

2,320

90,067

92,387

172

90,145

90,317

2,320

90,067

92,387

The carrying amounts of the Consolidated Entity’s borrowings are denominated in Australian Dollars.

For an analysis of the sensitivity of borrowings to interest rate risk refer to note 43.

  98  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

30 Provisions

Current provisions expected to be settled within 12 months

Employee benefits

Annual leave and other compensated absences

Long service leave

Defined benefit obligation

Staff bonuses

Superannuation and other post-employment benefits

Employee on-costs

Provision for service concession liabilities

Other provisions

Current provisions expected to be settled after more than 12 months

Employee benefits

Annual leave and other compensated absences

Long Service Leave

Superannuation and other post-employment benefits

Employee On-costs

Total current provisions

Non-current provisions

Employee benefits

Long service leave

Defined benefit obligation

Provision for deferred salary

Superannuation and other post-employment benefits

Employee on-costs

Provision for service concession liabilities

Total non-current provisions

Total provisions

Consolidated

2013

$000's

2012

$000's

6,754

7,185

2,856

1,038

2,038

1,088

948

2,607

24,514

6,284

7,520

2,887

1,267

1,852

974

948

8,874

30,606

2013

$000's

Parent

2012

$000's

6,754

7,185

2,856

1,038

2,038

1,088

948

2,607

24,514

6,284

7,520

2,887

1,267

1,852

974

948

8,874

30,606

496

11,460

1,560

934

14,450

38,964

4,187

22,986

100

1,419

327

30,825

59,844

98,808

496

7,158

861

531

9,046

39,652

7,407

26,816

239

1,560

513

30,340

66,875

106,527

496

11,460

1,560

934

14,450

38,964

4,187

22,986

100

1,419

327

30,825

59,844

98,808

496

7,158

861

531

9,046

39,652

7,407

26,816

239

1,560

513

30,340

66,875

106,527

Current provisions expected to be settled after more than 12 months represents a current obligation of the Consolidated

Entity, however it is the view of the management that they are expected to be settled after more than 12 months.

Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least

12 months after reporting date.

Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the reporting date.

99  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation premiums and payroll tax. The provision is measured at the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is included at note 10.

(a) Movements in provision

Consolidated 2013

Current

Carrying amount as start of year

Additional provisions recognised

Amounts incurred and charged

Carrying amount at end of year

Non-current

Carrying amount at start of year

Additional provisions recognised

Amounts incurred and charged

Carrying amount at end of year

Provision for income tax

$000's

Employmen t on-costs

$000's

Service concession liabilities

$000's

-

-

-

-

-

-

-

-

1,505

517

-

2,022

513

(186)

-

327

948

948

(948)

948

30,340

1,433

(948)

30,825

Other

$000's

8,874

-

(6,267)

2,607

-

-

-

-

Consolidated 2012

Current

Carrying amount as start of year

Additional provisions recognised

Amounts incurred and charged

Carrying amount at end of year

Non-current

Carrying amount at start of year

Additional provisions recognised

Amounts incurred and charged

Carrying amount at end of year

Provision for income tax

$000's

Employmen t on-costs

$000's

Service concession liabilities

$000's

3

-

(3)

-

-

-

-

-

1,467

38

-

1,505

455

58

-

513

948

948

(948)

948

31,288

-

(948)

30,340

Other

$000's

3,196

6,895

(1,217)

8,874

957

-

(957)

-

  100  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

31 Other liabilities

Current

Fees and grants received in advance

Financial assistance received in advance

Accrued expenses

Total other liabilities

Consolidated

2013

$000's

2012

$000's

15,159

3,845

10,823

29,827

12,459

3,236

12,898

28,593

Parent

2013

$000's

2012

$000's

15,159

3,845

10,823

12,459

3,236

12,898

29,827 28,593

32 Reserves and retained earnings

(a) Reserves

Reserves

Property, plant and equipment revaluation reserve

Investments revaluation reserve

Hedging reserve - cash flow hedges

Total Reserves

Consolidated

2013

$000's

2012

$000's

348,719

6,105

21

354,845

375,692

4,827

-

380,519

2013

Parent

$000's

348,719

6,105

21

354,845

2012

$000's

375,692

4,827

-

380,519

Movements

Property, plant and equipment revaluation reserve

Balance 1 January

Revaluation - gross

Transfer to retained earnings

Balance 31 December

Investments revaluation reserve

Balance 1 January

Revaluation - gross

Reclassification of net change in fair value of available-for-sale financial assets to profit and loss

Impairment of investments

Consolidated

2013

$000's

2012

$000's

-

375,692

(23,695)

(3,278)

348,719

4,827

3,995

(2,717)

384,488

(3,032) (23,695)

(5,764)

375,692

2,962

1,852

-

13

2013

$000's

Parent

375,692

(3,278)

348,719

4,827

3,995

(2,717)

-

2012

$000's

384,488

(3,032)

(5,764)

375,692

2,962

1,852

-

13

Balance 31 December 6,105 4,827 6,105 4,827

101  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Hedging reserve - cash flow hedges

Balance 1 January

Revaluation - gross

Transfer to inventory and other assets - gross

Balance 31 December

Foreign currency translation reserve

Balance 1 January

Currency translation differences arising during the year

Balance 31 December

Total reserves

-

21

-

21

-

-

-

354,845

(1)

-

1

-

(204)

204

-

380,519

-

21

-

21

-

-

-

354,845

(1)

-

1

-

-

-

-

380,519

(b) Retained earnings

Movement in retained earnings were as follows:

Retained earnings at end of the year

Consolidated

2013

$000's

2012

$000's

Retained earnings at the beginning of the year

Operating result for the period

Transfer from property, plant and equipment reserve*

483,514

32,823

3,278

519,615

452,146

25,604

5,764

483,514

2013

Parent

$000's

483,514

32,823

3,278

519,615

2012

$000's

449,882

27,868

5,764

483,514

* Transfer from revaluation reserve of $3.3m (2012: $5.8m) represents realisation of revaluation surplus on assets disposed.

(c) Nature and purpose of reserves

(i) Property, plant and equipment revaluation reserve

The property, plant and equipment revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in note 1(m).

(ii) Investments revaluation reserve

Changes in the fair value and exchange differences arising on revaluation of investments, such as equities, classified as available-for-sale financial assets, are taken to the investments revaluation reserve, as described in note 1(k). Amounts are recognised in the income statement when the associated assets were sold or impaired.

(iii) Hedging reserve - cash flow hedges

The hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that are recognised directly in equity, as described in note 1(v). Amounts are recognised in the income statement when the associated hedged transaction affects profit and loss.

  102  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

32 Reserves and retained earnings continued

(c) Nature and purpose of reserves continued

(iv) Foreign currency translation reserve

Exchange differences arising on translation of the foreign controlled branches of the University's subsidiary are taken to the foreign currency translation reserve, as described in note 1(v).

33 Restricted funds

Restricted funds

ECU Foundation

Consolidated

2013

$000's

2012

$000's

8,730 6,641

2013

$000's

Parent

2012

$000's

8,730 6,641

The purpose of the ECU Foundation is to hold funds received from external sources. These funds are appropriated for a variety of educational and research purposes ranging from scholarships, research, prizes and special lecture programs.

The Foundation was established to aid and promote excellence in educational and research activities by seeking, receiving and administering private gifts for the benefit of the University and its community.

34 Key management personnel disclosures

(a) Remuneration of members of the University Council

The number of council members, whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:

2013

2012

Nil to $10,000 19 19

$50,001 to $60,000

$120,001 to 130,000

$150,001 to $160,000

$160,001 to $170,000

-

1

-

1

1

1

1

-

$230,001 to $240,000

$310,001 to $320,000

$720,001 to $730,000

$740,001 to $750,000

1

-

-

1

-

1

1

-

The total aggregate remuneration of members of the accountable authority

('000)

$

1,260 $ 1,386

The council members include university employees who may be ex-officio members or elected staff members.

No council member has received any remuneration in his/her capacity as a council member. A total of 18 council members (2012:18 members) received no remuneration, fees, superannuation or benefits.

The total remuneration includes the superannuation expense incurred by the University in respect of council members.

No council members are members of the pension scheme.

103  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

(b) Remuneration of senior officers

The number of senior officers, other than senior officers reported as members of the accountable authority, whose total fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:

2013

2012

$60,001 to $70,000

$90,001 to $100,000

$220,001 to $230,000

$230,001 to $240,000

$250,001 to $260,000

$270,001 to $280,000

$290,001 to $300,000

$300,001 to $310,000

$310,001 to $320,000

$320,001 to $330,000

$330,001 to $340,000

$340,001 to $350,000

$350,000 to $360,000

$410,001 to $420,000

$430,001 to $440,000

$440,001 to $450,000

The total aggregate remuneration of senior officers ('000) $

1

-

-

1

-

-

-

1

-

1

2

1

1

-

-

2

3,185 $

-

1

2

-

3,081

-

1

1

-

1

1

1

-

1

-

-

1

The remuneration includes the superannuation expense incurred by the University in respect of senior officers other than senior officers reported as members of the University Council.

One senior officer is a member of the pension scheme.

35 Remuneration of auditors

Remuneration to the Office of the Auditor General and non-related audit firms for the financial year are as follows:

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Assurance services

Audit services

Office of the Auditor General (OAG)

Auditing the accounts, financial statements and performance indicators

Non-OAG audit firms for the audit or review of financial reports of any entity in the Consolidated Entity

252

5

302

22

252

5

242

5

Total

257 324 257 247

  104  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

36 Contingencies

Contingent liabilities

In addition to the liabilities incorporated in the financial statements, the Consolidated Entity has the following contingent liabilities:

Native title claims

University land is subject to Federal Court proceedings concerning native title rights and to settlement negotiations between the State Government and the South West Aboriginal Land and Sea Council.

Outstanding litigation

The University is a defendant in an action with the Management Development Institute of Singapore. The claim is being defended and has been set down for trial in Singapore in April-May 2014. The claim is indemnified under the

University’s insurance arrangements. The University is also counterclaiming an amount in respect of unpaid invoices for services delivered to the plaintiffs.

The University and a number of its staff members are defendants in various actions commenced by a former employee.

The claims are not material and sufficient insurance is in place to cover the potential liabilities.

Workers compensation claims

The Consolidated Entity may have some potential liability towards workers compensation claims. The process of defending the claims are progressing and sufficient insurances are in place to cover the potential liability.

Other contingencies

A course conducted by the University has not received accreditation which may give rise to claims by third parties. At this stage the quantum of such claims is uncertain and sufficient insurance is in place to cover the potential liability.

37 Commitments

(a) Capital expenditure commitments

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, including amounts for infrastructure, are payable as follows:

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Property, plant and equipment

Within one year 39,441 19,409 39,441 19,409

39,441 19,409 39,441 19,409

105  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

(b) Lease commitments: The Consolidated Entity as lessee

(i) Operating leases

Commitments in relation to leases contracted for at the reporting date but not recognised in the financial statements as liabilities, are payable as follows:

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Within one year

Between one year and five years

230

353

229

199

230

353

229

199

Cancellable operating lease

583

428 583 428

(c) Other expenditure commitments

Commitments in relation to purchase orders in existence at the reporting date, but not recognised as liabilities, are payable as follows:

Consolidated Parent

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Within one year 6,589 7,837 6,589 7,837

38 Related parties

Subsidiaries

The University had one related party during the financial year. Interests in the subsidiary is set out in note 39.

(a) Transactions with related parties

The following transactions occurred with related parties:

Sale of goods and services

Purchase of goods

Consolidated

2013

$000's

2012

$000's

-

-

-

-

2013

$000's

Parent

2012

$000's

-

-

593

94

  106  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

39 Subsidiaries

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

Name of Entity

Country of incorporation Class of shares 2013 2012

E.C.U. Resources for Learning Ltd. (ECURL)* Australia

Australian public company limited by guarantee 100.00% 100.00%

* The address of ECURL is 270 Joondalup Drive, Joondalup, WA 6027.

The operations of ECURL have been wound up effective 31 December 2012 and is no longer consolidated.

40 Events occurring after the reporting date

No events have occurred since the reporting date, that are likely to have a material impact on the financial statements or notes of the Consolidated Entity.

41 Reconciliation of operating result after income tax to net cash flows from operating activities

Consolidated

2013

$000's

2012

$000's

2013

$000's

Parent

2012

$000's

Operating result for the period

Non-cash items

Depreciation and amortisation expense

Revaluation of investment property

Provision for impairment of receivables

Service concession income

Gain on sale of asset

Net loss on asset write-offs

Impairment of assets

Gain on sale of investment

Change in assets and liabilities

(Increase)/decrease in receivables and non-financial assets

(Increase)/decrease in tax assets

(Increase)/decrease in inventories

Increase/(decrease) in trade and other payables

Increase/(decrease) in tax liabilities

Increase/(decrease) in provisions

32,823

23,600

7,547

(664)

(948)

(1,921)

36

-

(3,180)

57,293

1,620

-

1,783

(2,560)

-

(8,204)

25,604

22,267

1,093

1,147

(948)

(2,531)

48

274

-

46,954

2,682

193

173

623

(87)

7,681

32,823

23,600

7,547

(664)

(948)

(1,921)

36

-

(3,180)

57,293

1,620

-

1,783

(2,560)

-

(8,204)

27,868

22,239

1,093

1,147

(948)

(2,568)

48

13

-

48,892

1,892

-

(198)

1,367

-

7,978

Net cash provided by operating activities

(7,361)

49,932

11,265

58,219

(7,361)

49,932

11,039

59,931

107

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

42 Non-cash investing and financing activities

Proceeds accrued from sale of property, plant and equipment and non-current assets held for sale

Consolidated

2013

$000's

2012

$000's

650 6,857

2013

$000's

Parent

2012

$000's

650 6,857

During the financial year, there were sales of Churchlands property that has been sold but not yet settled and therefore not reflected in the cash flow statement.

43 Financial risk management

The Consolidated Entity is exposed to the following financial risks as a result of its activities:

(a) Market risk

(i) Foreign exchange and interest risk

The Consolidated Entity does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity price changes). The University’s exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations. The University’s borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and are at fixed rates with varying maturities. The risk is managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the interest rate sensitivity analysis table below, the University has limited exposure to interest rate risk because it has no borrowings other than the WATC borrowings.

(ii) Price risk

The Consolidated Entity investment portfolios' are exposed to fluctuations in the prices of equity securities. The

University's investment policy provides strategies for minimisation of price risk with the diversification of that risk through a number of investment managers and regular independent expert monitoring to ensure that there is no concentration of risk in any one area.

  108  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

43 Financial risk management continued

(a) Market risk continued

(iii) Summarised sensitivity analysis

The following table summarises the sensitivity of the Consolidated Entity's financial assets and financial liabilities to interest rate risk, foreign exchange risk and other price risk.

Interest rate risk Foreign exchange risk Other price risk

-1% +1% -10% +10% -10% +10%

Carrying amount$'

000

Profit

$000's

Equity

$000's

Profit

$000's

Equity Profit

$000's $000's

Equity Profit

$000's $000's

Equity Profit

$000's $000's

Equity

$000's

Profit

$000's

Equity

$000's

31 December 2013

Financial assets

Cash and cash equivalents

Trade receivable

Financial assets - Available for sale

21,380

Financial assets - Held to maturity

Derivatives - cash flow hedges

164,768

21

Sub-total

66,452 (665) (665) 665 665

7,182 -

-

-

-

-

-

-

-

-

-

-

-

- (11) (11)

-

-

-

-

-

-

(2)

-

-

-

(2)

(665) (665) 665 665 (13) (13)

Financial liabilities

Trade payables

Borrowings

Sub-total

Total increase/(decrease)

6,226 -

90,317 (4)

(4)

-

(4)

(4)

(669) (669)

-

4

4

-

4

4

-

-

-

-

-

-

669 669 (13) (13)

Interest rate risk

-

11

-

-

2

13

-

-

-

13

Foreign exchange risk

-

11

-

2

13 (2,138) (2,138) 2,138 2,138

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Other price risk

-

-

- (2,138) (2,138) 2,138 2,138

-

-

-

-

-

-

-

-

-

13 (2,138) (2,138) 2,138 2,138

-1% +1% -10% +10% -10% +10%

31 December 2012

Carrying amount

$'000

Profit

$000's

Equity

$000's

Profit

$000's

Equity

$000's

Profit

$000's

Equity

$000's

Profit

$000's

Equity

$000's

Profit

$000's

Equity

$000's

Profit

$000's

Equity

$000's

Cash and cash equivalents

Trade receivables

Sub-total

51,429 (514) (514) 514 514

4,673 - - - -

-

(7)

-

(7)

Financial assets - available for sale 19,611 - - - -

Financial assets - held to maturity 142,476 (1,425) (1,425) 1,425 1,425

-

-

-

-

(1,939) (1,939) 1,939 1,939 (7) (7)

Financial liabilities

Trade payables

Borrowings

9,738

92,387

-

(6)

-

(6)

-

6

-

6

-

-

-

-

Sub-total

(6) (6) 6 6 - -

Total increase/(decrease)

(1,945) (1,945) 1,945 1,945 (7) (7)

-

7

-

-

7

-

-

-

7

-

7

-

-

-

-

-

-

-

-

- (1,961) (1,961) 1,961 1,961

- - - - -

7 (1,961) (1,961) 1,961 1,961

-

-

-

-

-

-

-

-

-

-

- - - - -

7 (1,961) (1,961) 1,961 1,961

109  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

(b) Credit risk

Credit risk arises when there is the possibility of the Consolidated Entity’s receivables defaulting on their contractual obligations resulting in financial loss to the University. The Consolidated Entity measures credit risk on a fair value basis and monitors risk on a regular basis.

The maximum exposure to credit risk at the reporting date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment.

The Consolidated Entity trades only with recognised, credit worthy third parties. In addition, receivable balances are monitored on an ongoing basis with the result that the Consolidated Entity’s exposure to bad debts is minimal. There are no significant concentrations of credit risk.

Provision for impairment of financial assets is calculated based on past experience, and current and expected changes in client credit ratings. For financial assets that are either past due or impaired, refer to note 18.

(c) Liquidity risk

The Consolidated Entity is exposed to liquidity risk through its trading in the normal course of business. Liquidity risk arises when the University is unable to meet its financial obligations as they fall due.

The Consolidated Entity’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and finance leases. The Consolidated Entity has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

The tables below analyse the Consolidated Entity's financial assets and liabilities based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

Financial Assets:

Cash and cash equivalents

Trade and other receivables

Other financial assets

Derivative financial instruments

Total Financial Assets

Financial Liabilities:

Trade and other payables

Borrowings

Total Financial Liabilities

Within 1 year

2013

$000's

2012

$000's

1 - 2 years

2013

$000's

2012

$000's

2 - 5 years

2013

$000's

2012

$000's

5+ years

2013

$000's

2012

$000's

Total

2013

$000's

2012

$000's

66,452 51,429

7,182 4,673

114,768 92,476

21 -

-

-

-

-

-

-

-

-

-

-

-

-

- - - 66,452 51,429

- - - 7,182 4,673

- 71,380 69,611 186,148 162,087

- - - 21 -

188,423 148,578 - - - - 71,380 69,611 259,803 218,189

6,226 9,738

172 41,970

6,398 51,708

- - - - - -

125 172 35,020 245 55,000 50,000

125 172 35,020 245 55,000 50,000

6,226 9,738

90,317 92,387

96,543 102,125

  110  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

43 Financial risk management continued

(c) Liquidity risk continued

The following are the average interest rates for the above financial assets and liabilities as at 31 December

2013:

Financial assets

1. Cash and cash equivalents - 3.32% p.a (2012: 4.10% p.a).

2. Trade and other receivables - Non-interest bearing financial asset.

3. Available-for-sale financial assets - Non-interest bearing financial asset.

4. Held to maturity investments - 4.43% p.a (2012: 5.25% p.a).

Financial liability

1. Trade and other payable - Non-interest bearing financial liability.

2. Borrowings - 4.04% p.a (2012: 5.33% p.a).

The Consolidated Entity’s derivative financial instruments will be settled on a gross basis within the next 12 months.

44 Fair value measurement

(a) Fair value measurements

The fair value financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

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

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

Carrying Amount Fair Value

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Financial assets

Cash and cash equivalents

Trade receivables

Available-for-sale financial assets

Held-to-maturity financial assets

Derivative financial instruments

66,452

7,182

21,380

164,768

21

51,429

4,673

19,611

142,476

-

66,452

7,182

21,380

164,768

21

51,429

4,673

19,611

142,476

-

Total financial assets

Financial liabilities

Trade payables

Borrowings

Total financial liabilities

259,803

6,226

90,317

96,543

218,189

9,738

92,387

102,125

259,803

6,226

90,317

96,543

218,189

9,738

92,387

102,125

111  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

The Consolidated Entity measures and recognises the following assets and liabilities at fair value on a recurring basis:

Derivative financial instruments

Available-for-sale financial assets

Land and buildings

Leasehold improvements

Investments properties

Works of art

The Consolidated Entity has also measured assets and liabilities at fair value on a non-recurring basis as a result of the reclassification of assets as held for sale.

(b) Fair value hierarchy

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

Level 1

Level 2

Level 3 quoted prices (unadjusted) in active markets for identical assets or liabilities. inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. inputs for the asset or liability that are not based on observable market data

(unobservable inputs)

  112  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

44 Fair value measurement continued

(b) Fair value hierarchy continued

(i) Recognised fair value measurements

Fair value measurements recognised in the statement of financial position are categorised into the following levels at 31 December 2013.

2013 Level 1 Level 2

Recurring fair value measurements

Note $000's $000's $000's

Financial assets

Investment in shares

Investment in managed funds

21

21

2,572

18,808

2,572

-

-

18,808

Derivative financial instruments

21 21 -

Total financial assets 21,401 2,593 18,808

Non-financial assets

Investment properties

Land

Buildings

24

25

13,610

124,069

-

-

13,610

124,069

Leasehold improvements

Works of art

25

25

25

525,738

9,115

12,921

-

-

-

525,738

9,115

12,921

Total non-financial assets 685,453 - 685,453

Non-recurring fair value measurements

Land held for sale

1,305 - 1,305

Total non-recurring fair value measurements

1,305 - 1,305

113

 

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Recurring fair value measurements

Financial assets

Investment in shares

Investment in managed funds

Total financial assets

Non-financial assets

Investment properties

Land

Buildings

Leasehold improvements

Works of art

Total non-financial assets

Non-recurring fair value measurements

Land held for sale

Total non-recurring fair value measurements

Note

21

21

24

25

25

25

25

2012

$000's

1,880

17,731

19,611

9,820

122,977

561,798

9,849

12,868

717,312

16,816

16,816

Level 1

$000's

1,880

-

1,880

-

-

-

-

-

-

-

-

Level 2

$000's

-

17,731

17,731

9,820

122,977

561,798

9,849

12,868

717,312

16,816

16,816

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.

(ii) Disclosed fair values

The University has a number of assets and liabilities which are not measured at fair value, but for which the fair values are disclosed in the notes.

The carrying value less impairment provision of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables.

Non-current borrowings are measure at amortised cost with interest recognised in the income statement when incurred. The fair value of borrowings disclosed in note 29 represents the contractual undiscounted cash flows at balance date.

(c) Valuation techniques used to derive level 2 fair values

(i) Recurring fair value measurements

Available-for-sale financial assets

The fair values of investments in managed funds were based on the redemption prices at balance date, provided by the fund managers. These prices represent the fair value of these investments.

  114  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

44 Fair value measurement continued

(c) Valuation techniques used to derive level 2 fair values continued

Land

The fair values of land were determined by independent valuer, McGees Property, effective 31 December 2013.

Land has been valued at the highest and best use basis. The most significant inputs into the land valuation were the prices per hectare, derived from transactions that were considered to be relevant. Adjustments for differences in key attributes, such as size and redevelopment costs based on recent transactions, have been made where necessary.

Buildings and Leasehold Improvements

The fair values of buildings and leasehold improvements were determined by independent valuer, Davson &

Ward, effective 31 December 2013. The fair values have been derived based on the cost approach. The most significant input into this valuation approach was rates per square metre, sourced from in-house library of cost analysis for similar projects and trade publications.

The University buildings are of a specialised nature and there is no active market for the assets, fair values have been determined on the basis of replacement with a new asset having similar service potential including an allowance for professional fees. The net current value of a building is the gross current value less accumulated depreciation to reflect the consumed or expired service potential of the asset.

Investment properties

The fair values of investment properties have been valued by an independent valuer, McGees Property, effective

31 December 2013. Valuations are based on the income approach with current rentals derived from market data.

Works of art

The fair values of works of art were determined by independent valuer, Seva Frangos Art and Lister Gallery in

2012.

(ii) Non-recurring fair value measurement

Land classified as held for sale are valued at lower of fair value less costs to sell or carrying amount. The fair values of the land were determined using the prices per hectare from relevant transactions.

45 Write-offs

Total write-offs as approved by the accountable authority during the financial year

Receivables written-off against provision*

Property, plant and equipment

Inventory

Total write-offs

Consolidated

2013

$000's

2012

$000's

69

14

22

105

26

7

41

74

2013

$000's

Parent

2012

$000's

69

14

22

105

26

7

41

74

* The vast majority of the receivables write-offs are relating to international student debts incurred in 2012 and before which have been identified as irrecoverable.

115  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

46 Superannuation

Unfunded Pension and Unfunded Gold State (Lump sum) Schemes

The University has in its staffing profile a number of employees who are members of the Government Employees

Superannuation Board (GESB) Scheme. As the Employer, the University is required to contribute to the scheme as employees are paid a pension or lump sum pay out. Consequently, an unfunded liability has been created. The

Commonwealth Government is committed to reimbursing the University for payments actually made to the scheme for these emerging costs.

Nature of the benefits provided by the Scheme

Pension Scheme

Pension Scheme members receive pension benefits on retirement, death or invalidity. The Fund Share of the pension benefit, which is based on the member’s contributions plus investment earnings, may be commuted to a lump sum benefit. The employers do not bear the cost associated with indexation of any pension arising from the Fund Share. The

State Share of the pension benefit, which is fully employer-financed, cannot be commuted to a lump sum benefit.

Gold State Super (transferred benefits)

Some former pension scheme members have transferred to Gold State Super. In respect of their transferred benefit the members receive a lump sum benefit at retirement, death or invalidity which is related to their salary during their employment and indexed during any deferral period after leaving public sector employment.

Description of the regulatory framework

The Pension Scheme and Gold State Super (transferred benefits) operate under the State Superannuation Act 2000

(Western Australia) and the State Superannuation Regulations 2001 (Western Australia).

Although the schemes are not formally subject to the Superannuation Industry (Supervision) (SIS) legislation, the

Western Australian government has undertaken (in a Heads of Government Agreement) to operate the schemes in accordance with the spirit of the SIS legislation.

As an exempt public sector superannuation scheme (as defined in the SISI legislation), the schemes are not subject to any minimum funding requirements.

As a constitutionally protected scheme, the schemes are not required to pay tax.

Description of other entities responsibilities for the governance of the Scheme

The Government Employees Superannuation Board (GESB) is the Scheme's Trustee and is responsible for the governance of the Scheme. As Trustee, GESB has a legal obligation to act solely in the best interests of Scheme beneficiaries. GESB has the following roles:

Administration of the Scheme and payment to the beneficiaries when required in accordance with the Scheme rules;

Management and investment of the Scheme assets (although the liabilities in this report are not supported by assets), and

Compliance with the Heads of Government Agreement referred to above.

  116  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

46 Superannuation continued

Description of risks

Pension Scheme

There are a number of risks to which the Scheme exposes the University. The more significant risks relating to the defined benefits are:

Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined benefits.

Pensioner mortality risk - The risk is that pensioner mortality will be lighter than expected, resulting in pensions being paid for a longer period.

Inflation risk - The risk that inflation is higher than anticipated, increasing pension payments, and the associated employer contributions.

Gold State Super (transferred benefits)

There are a number of risks to which the Scheme exposes the University. The more significant risks relating to the defined benefits are:

Salary growth risk - The risk that wages or salaries (on which future benefit amounts will be based) will rise more rapidly than assumed, increasing defined amounts and the associated employer contributions.

Legislative risk - The risk is that legislative changes could be made which increase the cost of providing the defined benefits.

Description of significant events

There were no plan amendments, curtailments or settlements during the year.

Sensitivity analysis

Pension Scheme

The defined benefit obligation as at 31 December 2013 under several scenarios is presented below.

Scenario A and B relate to discount rate sensitivity. Scenario C and D relate to expected pension increase rate sensitivity.

Scenario A: 0.5% p.a lower discount rate assumption.

Scenario B: 0.5% p.a higher discount rate assumption.

Scenario C: 0.5% p.a lower expected pension increase rate assumption.

Scenario D: 0.5% p.a higher expected pension increase rate assumption.

Base Case Scenario A

-0.5% p.a discount rate

Discount rate

Pension increase rate

Defined benefit obligation (A$'000s)

Scenario B

+0.5% p.a discount rate

Scenario C

-0.5% p.a pension increase rate

Scenario D

+0.5% p.a pension increase rate

4.17% p.a 3.67% p.a 4.67% p.a 4.17% p.a 4.17% p.a

2.5% p.a 2.50% p.a 2.50% p.a 2.00% p.a 3.00% p.a

25,400 26,339 24,521 24,501 26,352

117  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

The defined benefit obligation has been recalculated by changing the assumption as outlined above, whilst retaining all other obligations.

Gold State Super (transferred benefits)

The defined benefit obligation as at 31 December 2013 under several scenarios is presented below.

Scenario A and B relate to discount rate sensitivity. Scenario C and D relate to expected pension increase rate sensitivity.

Scenario A: 0.5% p.a lower discount rate assumption.

Scenario B: 0.5% p.a higher discount rate assumption.

Scenario C: 0.5% p.a lower expected pension increase rate assumption.

Scenario D: 0.5% p.a higher expected pension increase rate assumption.

Base Case Scenario A Scenario B Scenario C Scenario D

-0.5% p.a discount rate

+0.5% p.a discount rate

-0.5% p.a salary increase rate

+0.5% p.a salary increase rate

Discount rate

Salary inflation rate

Defined benefit obligation (A$'000s)

4.17% p.a 3.67% p.a 4.67% p.a 4.17% p.a 4.17% p.a

5.00% p.a 5.00% p.a 5.00% p.a 4.50% p.a 5.50% p.a

442 454 430 432 451

The defined benefit obligation has been recalculated by changing the assumption as outlined above, whilst retaining all other obligations.

Funding arrangements

The employer contributes, as required, to meet the benefits paid.

Reconciliation of the Net Defined Benefit liability/(asset)

Defined benefit obligation

Fair value of Scheme assets

Deficit/(surplus)

Adjustment for effect of asset ceiling

Liability/(asset)

Pension Scheme

2013

$000's

2012

$000's

25,400

-

25,400

-

25,400

28,782

-

28,782

-

28,782

Gold State Super

2013

$000's

2012

$000's

442

-

442

-

442

921

-

921

-

921

  118  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

46 Superannuation continued

Reconciliation of the Defined Benefit obligation

Present value of defined benefit obligations at the beginning of the year

Interest cost

Actuarial (gains)/losses arising from changes in financial assumptions

Actuarial (gains)/losses arising from liability experience

Benefits paid

Balance at the end of the year

Pension Scheme

2013

$000's

2012

$000's

Gold State Super

2013

$000's

2012

$000's

28,782

852

(2,069)

639

(2,804)

25,400

27,656

1,041

2,617

252

(2,784)

28,782

921

27

(25)

(8)

(473)

442

873

33

7

8

-

921

These defined benefit obligations are wholly unfunded, such that there are no assets. The employer contributes, as required, to meet the benefits paid.

Reconciliation of the fair value of Scheme assets

Fair value of Scheme assets at beginning of the year

Employer contributions

Benefits paid

Balance at the end of the year

Pension Scheme

2013

$000's

2012

$000's

2,804

(2,804)

-

2,784

(2,784)

-

Gold State Super

2013

$000's

2012

$000's

474

(474)

-

-

- -

These defined benefit obligations are wholly unfunded, such that there are no assets.

Reconciliation of the effect of the asset ceiling

The asset ceiling has no impact on the net defined benefit liability/(asset).

Fair value of Scheme assets

There are no assets in the Pension Scheme to support the State Share of the Benefit. Hence, there is:

No fair value of Scheme assets;

No asset allocation of Scheme assets;

No financial instruments issued by the employer;

No assets used by the employer;

No asset-liability matching strategies.

119  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Significant Actuarial assumptions at the reporting date

Discount rate (active members)

Discount rate (pensioners)

Expected salary increase rates

Expected pension increase rates

Pension Scheme

2013

% p.a

2012

% p.a

4.17

4.17

5.00

2.50

3.11

3.11

5.00

2.50

Gold State Super

2013

% p.a

2012

% p.a

4.17

4.17

5.00

2.50

3.11

3.11

5.00

2.50

The discount rate is based on the Government bond maturing in April 2023. The decrement rates used (e.g. mortality and retirement rates) are based on those used at the last actuarial valuation for the Schemes.

Expected contributions

Expected contributions

Expected employer contributions

Pension Scheme

2014

$000's

Gold State Super

2014

$000's

2,811 45

Maturity profile of defined benefit obligation

Pension Scheme

The weighted average duration of the defined benefit obligation for the whole of the Pension Scheme is 9.6 years.

Gold State Super (transferred benefits)

The weighted average duration of the defined benefit obligation for the whole of the Gold State Super Scheme is 7.9 years.

  120  

 

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

47 Acquittal of Australian Government financial assistance

(a) CGS and other Education grants

Note

Commonwealth Grants

Scheme

#1

2013

$000's

2012

$000's

Indigenous Support

Program

2013

$000's

2012

$000's

Partnership &

Participation Program

#2

2013

$000's

2012

$000's

Parent Entity

Financial assistance received in CASH during the reporting period (total cash received from Australian

Government for the program)

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total revenue including accrued revenue

Less expenses including accrued expenses

Surplus/(deficit) for the reporting period

2(g) 132,116 131,550

52 (353)

2(a) 132,168 131,197

- -

132,168 131,197

(132,168) (131,197)

- -

566

53

619

619

(619)

Parent Entity

Financial assistance received in CASH during the reporting period (total cash received from Australian

Government for the program)

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total revenue including accrued revenue

Less expenses including accrued expenses

Surplus/(deficit) for the reporting period

-

-

646

(53)

593

(4)

589

(685)

(96)

Note

- -

Promotion of

Excellence in Learning and Training

2013

$000's

2012

$000's

2(g)

2(a)

3,419

(649)

2,770

-

2,770 3,295

(2,770) (3,295)

44

(2)

42

49

91

(21)

70

3,355

(145)

3,210

85

50

-

50

-

50

(1)

49

Disability Support

Program

2013

$000's

105

(21)

84

-

84

(84)

-

Reward Funding

2013

$000's

2012

$000's

329

1

330

-

330

(330)

-

2012

$000's

66

-

66

-

66

(66)

-

333

-

333

-

333

(333)

-

Diversity and Structural

Adjustment Fund

#3

2013

$000's

2012

$000's

-

-

-

-

-

-

-

Other

#4

2013

$000's

2012

$000's

2,781

-

2,781

807

3,588

(3,588)

-

-

-

-

219

219

(219)

-

7,067

-

7,067

652

Transitional Cost

Program

2013

$000's

-

-

-

-

-

-

-

2013

$000's

Total

2012

$000's

139,360

(566)

138,794

856

2012

$000's

92

-

92

-

92

(92)

-

143,159

(551)

142,608

952

7,719 139,650 143,560

(6,912) (139,580) (142,800)

807 70 760

#1 Basic CGS grant amount, CGS – Regional Loading, CGS - Enabling Loading, Maths and Science, Transition Loading, Allocated Places Advance and Non-designated Courses Advance.

#2 Includes Equity Support Program.

#3 Includes Collaboration and Structural Adjustments Program.

#4 Includes Structural Adjustment Fund and Facilitation funding.

121  

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

 

(b) Higher education loan programs (excl OS-HELP)

Parent Entity

Financial assistance received in CASH during the reporting period (total cash received from the Australian

Government for the programs)

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total Revenue including accrued revenue

Less expenses including accrued expenses

Surplus / (deficit) for reporting period

Note

HECS-HELP (Aust.

Government payments only)

2013

$000's

2012

$000's

2(g)

2(b)

74,484

(633)

73,851

-

67,603

(961)

66,642

-

FEE-­‐HELP

2013

$000's

11,230

1,789

13,019

-

73,851 66,642 13,019

(73,851) (66,642) (13,019)

- - -

#5

2012

$000's

13,690

(3,979)

9,711

-

9,711

(9,711)

-

SA-HELP

2013

$000's

2012

$000's

1,090

(137)

953

-

953

(953)

-

77

145

222

-

222

(222)

-

2013

$000's

Total

86,804

1,019

87,823

-

87,823

(87,823)

-

2012

$000's

81,370

(4,795)

76,575

-

76,575

(76,575)

-

#5 Program is in respect of FEE-HELP for Higher Education only and excludes funds received in respect of VET FEE-HELP.

  122  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

47 Acquittal of Australian Government financial assistance continued

(c) Scholarships

Parent Entity (University) Only

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

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total revenue including accrued revenue

Less expenses including accrued expenses

Surplus/(deficit) for the reporting period

Note

Australian

Postgraduate

Awards

2013

$000's

2012

$000's

2(g)

2(c)

1,991

(350)

1,641

1,840

-

1,840

283 330

1,924 2,170

(1,698) (1,887)

226 283

International

Postgraduate

Research

Scholarships

2013

$000's

2012

$000's

162

-

162

-

162

(162)

-

Commonwealth

Education Cost

Scholarships

2013

$000's

2012

$000's

174 (1,203) 1,022

- 1,289 (850)

174 86 172

-

174

(174)

-

-

86

(79)

7

-

172

(172)

-

Commonwealth

Accommodation

Scholarships

2013

$000's

2012

$000's

Indigenous Access

Scholarship

2013

$000's

2012

$000's

Total

2013

$000's

2012

$000's

(71)

111

40

-

40 162

(35) (162)

5

95

67

162

-

-

2

59

61

-

61

(61)

-

81

2

83

-

881 3,212

1,109

1,990

283

(781)

2,431

330

83 2,273 2,761

(83) (2,035) (2,478)

- 238 283

#6 Includes Grandfathered Scholarships, National Priority and National Accommodation Priority Scholarships respectively.

123  

 

 Edith  Cowan  University  Annual  Report  2013  

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

(d) Education Research

Parent Entity (University) Only

#7

Financial assistance received in CASH during the reporting period (total cash received from Australian

Government for the program)

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total revenue including accrued revenue

Less expenses including accrued expenses

Surplus/(deficit) for the reporting period

Note

Joint Research

Engagement

#7

2013

$000's

2012

$000's

Research Training

Scheme

2013

$000's

2012

$000's

Research

Infrastructure Block

Grants

Commercialisation

Training Scheme

2013

$000's

2012

$000's

2013

$000's

2012

$000's

Sustainable

Research

Excellence in

Universities

2013

$000's

2012

$000's

Other

2013

$000's

2012

$000's

Total

2013

$000's

2012

$000's

2(g) 2,579

-

2,579

2,427

(10)

2,417

4,583

-

4,583

4,481

-

4,481

- - - -

2,579 2,417 4,583 4,481

(2,579) (2,417) (4,583) (4,481)

- - - -

441

-

441

509

-

509

- -

441 509

(441) (509)

- -

-

-

-

33

33

(33)

-

#7 The reported surplus for collaborative research network is $86m and is expected to be rolled over for future use.

-

-

-

35

35

(2)

33

709

-

709

710

-

710

1,347

(895)

452

906

-

906

9,659 9,033

(895) (10)

8,764 9,023

- - 1,308 1,964 1,341 1,999

709 710 1,760 2,870 10,105 11,022

(709) (710) (1,674) (1,562) (10,019) (9,681)

- - 86 1,308 86 1,341

  124  

47 Acquittal of Australian Government financial assistance continued

(e) Australian Research Council Grants

(i) Discovery

Parent Entity (University) Only

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

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total revenue including accrued revenue

Less expenses including accrued expenses

Surplus/(deficit) for the reporting period

(ii) Linkages

Parent Entity (University) Only

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

Net accrual adjustments

Revenue for the period

Surplus/(deficit) from the previous year

Total revenue including accrued revenue

Less expenses including accrued expenses

Surplus/(deficit) for the reporting period

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Note

2(g)

2(e)(i)

Projects

2013

$000's

2012

$000's

208

-

188

-

208 188

2013

$000's

Total

2012

$000's

208

-

188

-

208 188

Note

2(g)

2(e)(ii)

164

372

(241)

164

352

(188)

131 164

Projects

2013

$000's

367

-

367

2012

$000's

493

-

493

164

372

(241)

131

164

352

(188)

164

2013

$000's

Total

2012

$000's

367

-

367

493

-

493

179

546

(273)

273

57

550

(371)

179

179

546

(273)

273

57

550

(371)

179

125  

 Edith  Cowan  University  Annual  Report  2013  

 

 

(f) OS-HELP

Cash received during the reporting period

Cash spent during the reporting period

Net cash received

Cash surplus/(deficit) from the previous period

Cash surplus/(deficit) for the reporting period

(g) Superannuation supplementation

Cash received during the reporting period

University contribution in respect of current employees

Cash available

Cash surplus/(deficit) from the previous period

Cash available for current period

Contributions to specified defined benefit funds

Cash surplus/(deficit) for this period

(h) Student Services and Amenities Fee

SA-HELP revenue earned

Student services and amenities fees

Total revenue expendable in period

Student services expenses during period

Unspent/(overspent) student services revenue

Edith  Cowan  University  

Notes  to  Financial  Statements  

For  the  Year  Ended  31  December  2013  

Note

2(g)

28

2013

$000's

Parent

2012

$000's

490

(430)

60

391

(399)

(8)

33

93

41

33

Note

2(g)

2013

$000's

2,704

242

2,946

206

3,152

(3,532)

(380)

2012

$000's

3,209

305

3,514

(182)

3,332

(3,052)

280

Note

2(b)

4

2013

$000's

953

1,734

2,687

(2,687)

-

2012

$000's

222

1,178

1,400

(1,400)

-

EDITH  COWAN  UNIVERSITY  2013  

ADDITIONAL FACTS AND STATISTICS

student Enrolments (Persons)

Table 17. Enrolments by Type of Attendance, 2009-2013

Full-time

Part-time

Total

Table 18. Enrolments by Campus, 2009-2013

Joondalup

Mount Lawley

Bunbury

Study Centres (overseas)

Study Centres (in Australia)

Total

Table 19. Enrolments by Gender, 2009-2013

Female

Male

Total

2009

16,152

6,122

22,274

2009

9,504

7,584

943

2,406

1,837

22,274

2009

13,471

8,803

22,274

2010

17,708

6,533

24,241

2010

10,959

7,938

1,004

2,386

1,954

24,241

2010

14,676

9,565

24,241

2011

17,836

6,053

23,889

2012

17,661

5,871

23,532

2013

17,652

5,653

23,305

2011

11,769

7,450

1,015

1,568

2,087

23,889

2012

11,834

6,929

974

1,248

2,547

23,532

2013

11,854

6,599

1,037

942

2,873

23,305

2011

14,734

9,155

23,889

2012

14,549

8,983

23,532

2013

14,321

8,984

23,305

127

student Enrolments (Persons)

(continued)

Table 20. Enrolments by Course Level, 2009-2013

Doctorate by Research

Doctorate by Coursework

Masters by Research

Masters by Coursework

Graduate/ Postgraduate Diploma

Graduate Certificate

Bachelor Honours

Bachelor Pass

Associate Degree

Advanced Diploma/ Diploma

Other Award/ VET

Enabling Course

Cross-Institutional/ Non Award

Total

Table 21. Onshore and Offshore International Enrolments by Home Country Region, 2009-2013

Americas

Asia

Africa

Europe

Middle East

Other

Total International Enrolments

2009

104

3,901

970

310

95

7

5,387

2009

385

43

127

3,029

1,197

782

168

14,973

103

78

465

764

160

22,274

2010

438

39

154

3,216

1,306

794

187

16,285

120

47

567

902

186

24,241

2011

441

28

162

2,552

1,291

685

143

17,071

113

16

577

689

121

23,889

2012

441

21

165

2,234

1,332

771

140

16,797

93

27

591

789

131

23,532

2013

471

9

164

2,303

1,189

695

149

16,871

58

22

488

798

88

23,305

2010

105

4,098

969

312

101

18

5,603

2011

109

3,300

814

329

137

4

4,693

2012

106

2,831

614

236

164

4

3,988

2013

105

2,524

545

230

217

10

3,631

128

Student Enrolments (Persons)

(continued)

Table 22. Enrolment Proportions by Equity Group, 2009-2013

Low SES Students (%)

Regional Students (%)

Indigenous Australian Students (%)

Students with a Disability (%)

Table 23. Completions by Course Level, 2008-2012

Doctorate by Research

Doctorate by Coursework

Masters by Research

Masters by Coursework

Graduate/ Postgraduate Diploma

Graduate Certificate

Bachelor Honours

Bachelor Pass

Associate Degree

Advanced Diploma/ Diploma

VET

Total

2010

41

10

23

1,424

648

412

92

408

6

55

73

6,192

2010

11.3

15.3

1.1

4.7

2009

58

17

35

1,245

593

394

89

3,304

9

35

68

5,847

2009

11.1

15.1

1.1

3.6

2012

54

6

21

1,191

649

386

130

3,549

16

16

188

6,206

2012

12.0

16.2

1.1

5.2

2011

48

8

22

1,423

703

467

113

3,342

8

42

182

6,358

2011

11.6

15.9

1.0

5.0

2013

61

4

28

989

691

511

88

3,660

14

-

213

6,259

2013

11.8

16.8

1.2

5.3

129

OTHER FINANCIAL, GOVERNMENT AND LEGAL

DISCLOSURES

Pricing Policies

ECU sets the level of the student contribution for Commonwealth supported places at the maximum allowed under the Higher Education Support Act 2003 (Cwlth), as is the case for most

Australian universities. Fees for fee-paying courses are determined on the basis of cost and market conditions and take into account Australian Government requirements regarding fees set for non-Commonwealth supported places.

major Capital Projects

Table 24: Major Capital Projects Completed, 2013

Project

Joondalup Building 23 Engineering and Technology

Table 25: Major Capital Projects in Progress, 2013

Project

Joondalup Building 34

ECU Health Centre

Joondalup Engineering Pavilion

Joondalup Student Housing (Private Public Partnership)

Estimated total cost ($m)

40.0

Actual total cost

($m)

39.3

Estimated total cost ($m)

72.0

22.0

5.45

0.2

Project spend to date ($m)

28.5

11.4

0.4

0.1

Expected year of completion

2014

2014

2014

2015

130

Employees and Employee relations

Table 26: Academic Staff by Contract Type, 2009-2013

Staff

Permanent Full-time

Permanent Part-time

Temporary Full-time

Temporary Part-time

Casual

2009

367

29

146

36

178

2010

368

30

152

42

102

2011

365

32

142

44

101

Total 756 696 687

Notes: Figures are based on full-time equivalency, rather than head-count. Figures are average full-time equivalents for the 12 calendar months. Figures include staff in VET provision.

Table 27: Professional Staff by Contract Type, 2009-2013

Staff

Permanent Full-time

Permanent Part-time

Temporary Full-time

Temporary Part-time

2009

610

102

170

80

2010

629

108

160

74

2011

640

117

184

79

Casual 65 86 111

Total 1,026 1,059 1,131

Notes: Figures are based on full-time equivalency, rather than head-count. Figures are average full-time equivalents for the 12 calendar months. Figures include staff in VET provision.

2012

365

30

141

46

108

692

2013

350

39

133

48

123

695

2012

613

122

239

88

114

1,178

2013

597

136

245

88

114

1,182

131

oCCUPational saFEty, hEalth and injUry managEmEnt

Executive Commitment to Occupational Safety, Health and Injury

Management

ECU is committed to providing a safe and healthy environment for all students, staff, visitors and contractors; conducive to study, wellbeing and productivity. ECU is proactive in preventing and minimising the potential for injury, illness and harm and the University has a range of safety and health policies, guidelines, procedures and protocols to meet, and exceed, legislative obligations.

Executive commitment is demonstrated by the University’s Due Diligence Compliance

Framework which requires Occupational Safety and Health (OSH) operational plans to be developed and implemented by all faculties and service centres, the maintenance of Hazard Risk Registers and reporting against a suite of lead and lag performance indicators. OSH compliance is verified biannually by Executive Deans /Faculty

Executives and Service Centre Directors, and this is reported for noting to the Quality,

Audit and Risk Committee (QARC) and Council.

To assist University staff in understanding their safety and health responsibilities and the

Due Diligence requirements, safety and health training programs have been developed and included in the Role Based Development Framework for managers and supervisors, the Executive and Council. In addition to statutory requirements, the University expects all managers and supervisors to provide information, instruction, training and supervision on safety and health procedures and work practices so that a safe and healthy working environment is maintained.

Mechanism for Consultation with Employees on OSH and Injury

Management Matters

ECU’s Occupational Safety and Health

Consultative Committee structure comprises the following four levels:

1. Occupational Safety and Health Policy Committee. This bi-annual committee consists of both safety and health representatives and management representatives and reports to the Vice-Chancellor.

2. Institutional Bio-safety Committee / Radiation Committee, reporting to the

Occupational Safety and Health Policy Committee.

3. Occupational Safety and Health Campus Working Groups, meeting at least quarterly and reporting to the Director, Human Resources and the Occupational Safety and

Health Policy Committee.

4. Faculty and Service Centre Work Safety and Health committees, meeting at least quarterly.

Each of these OSH committees engages with elected safety and health representatives and employee representatives from faculties and service centres to facilitate consultation at all levels.

In addition to formal OSH committees, networking events for OSH representatives were introduced to ECU in 2013. These events included presentations on safety and health topics by guest speakers and an opportunity to meet and interact with WorkSafe WA

Inspectors, and provided networking opportunities for OSH representatives from different

ECU campuses, faculties and service centres.

Compliance with the Model Work Health and Safety Act

Although Western Australia has yet to sign on to the Commonwealth’s Work Health and

Safety Act [WHS Act] and Regulations, ECU has undertaken significant preparation for future implementation, to meet current best practice in safety and health legislative requirements.

In 2013 this work included: a review and revision of University safety and health policies, guidelines and supporting material to meet WHS Act requirements; the development of new guidelines on discharging Due Diligence and consultation requirements; and regular briefings to QARC and Council on these matters.

Workers’ Compensation and Injury Management

ECU has a formal Workers’ Compensation and Injury Management Policy and

Guidelines as well as a detailed workers’ compensation claim and return to work process which meets the requirements of the Workers’ Compensation and Injury Management

Act 1981 (WA). Return to work programs for employees with both work and non-work related injuries and illnesses are developed in consultation with the employee, their supervisor and the treating medical practitioner.

Safety, health and injury management programs are communicated via health and safety committees and incorporated into the operational plans of all faculties and service centres. Performance indicators for Workers’ Compensation claims, costs and premiums, and accident and injury metrics, are monitored and reported quarterly to

QARC and Council.

Assessment of the occupational safety and health management system

ECU continues to promote self-assessment of faculty and service centre OSH systems and processes, based on the primary functions and supporting principles of the

Australian and New Zealand Standard AS/NZS 4801:2001, supplemented by formal

132

audits of the OSH management system. Audit findings help to inform revisions to the framework and the development of operational plans for faculties and service centres.

Completion and regular review of an OSH Hazard Risk Register, that identifies businessinherent and residual risk is mandated and also requires formal review and endorsement by Executive Deans /Faculty Executives and Service Centre Directors.

Additionally, staff attitudes to, and perceptions of, safety in their work environment are monitored through staff surveys. The last staff survey was conducted in 2012 and showed a high level of satisfaction with safety at the University, in particular with relation to supervisors and management engagement in good safety behaviour.

Table 28. Performance against 2013 Injury Management Targets

Indicator

Number of fatalities

Lost time injury/ diseases incidence rate

Lost time injury severity rate

Target 2013

Zero (0)

Zero or 10% reduction on previous year

Result

2011

0

0.26

Result

2012

0

0.31

Result

2013

0

0.66

Comment on 2013 result

Achieved

Not achieved

Percentage of injured workers returned to work within

(i) 13 weeks; and

(ii) 26 weeks.

Zero or 10% improvement on previous year

Greater than or equal to 80% return to work

20.0

within 26 weeks 80%

80%

33.3

83%

100%

0.0

85%

92%

Achieved

-

Achieved

Percentage of managers trained in occupational safety and health and injury management

Greater than or equal to 80%

N/A N/A N/A -

Notes: Results are shown on a calendar year basis, while those reported in previous Annual Reports were based on July-June financial years. Lost time injury/diseases incidence rate is defined as the number of lost time injury claims lodged, divided by the number of employees (FTE), multiplied by 100.

Lost time injury severity rate is the number of lost time injury claims where employees do not return to any work duties within 60 days, divided by the total lost time injury claims, multiplied by 100. The

Percentage of injured workers returned to work within 13 weeks and 26 weeks measures employees returning to full duties. Occupational safety and health and injury management obligations were incorporated into OSH training and information sessions for managers in 2013. Training data will be reported from 2014.

insUranCE oF oFFiCErs

In 2013 financial year ECU paid a premium of $19,647.65 in respect of Directors and

Officers Liability Insurance. The cover applies to members of Council and Officers of the

University and its controlled entities.

CorPoratE standards and risk managEmEnt

Equity Commitments and Compliance Reporting in 2013

ECU is an inclusive university that values diversity and strives to maintain an environment free from discrimination. ECU is committed to increasing access and providing opportunities for students who face barriers to higher education. ECU’s staffing strategies also seek to achieve appropriate representation and distribution of underrepresented groups in its workplaces.

The University has a number of specific equity plans that describe initiatives, performance measures and responsibilities for progressing equity and social inclusion.

ECU’s Equity Committee advises and reports to the Vice-Chancellor on matters related to equity, including on progress against these equity plans.

In 2013 the University continued the implementation of its second Reconciliation

Action Plan (RAP) covering 2012-2015. The RAP outlines the University’s vision for reconciliation and its objective to translate its commitments to Indigenous Australians into improved outcomes. ECU also reported to Reconciliation Australia, through the ECU

Council, summarising the first year of implementation of ECU’s 2012-2015 RAP.

The Indigenous Australian Employment Strategy and Action Plan, 2012-2015 also continued to be implemented in 2013, with activities including a major review of practices, revised targets and the filling of five new positions and five traineeships.

ECU’s five-year Disability Access and Inclusion Plan for 2011-2016 continued to be supported in 2013 through an annual implementation plan coordinated by the ECU

Disability Access and Inclusion Sub-Committee and reporting to the Equity Committee.

The University reported to the Australian Government’s Workplace Gender Equality

Agency in accordance with the Workplace Gender Equality Act 2012. The University’s annual compliance report gives a snapshot of the number of staff employed by the

University, with breakdowns by level and gender and reinforces the commitment to advance women and remove barriers to their employment and promotion.

133

Other compliance and legislative reporting completed during the year included: the Indigenous Education Statement to the Department of Education (Australian

Government); the annual report to the Workplace Gender Equality Agency (Australian

Government); the annual report to the Western Australian Aboriginal Education and

Training Council (State Government); the annual report on progress against the Disability

Access and Inclusion Plan to the Disability Services Commission (State Government); and the annual equal opportunity demographics report to the Public Sector Commission

(State Government).

Celebrating and Supporting Equity in 2013

ECU hosted a range of events in 2013 for students, staff and the community to celebrate equity, including: Harmony Week, International Women’s Day, NAIDOC Week,

International Anti-Poverty Day, International Day of People with a Disability, PRIDEFEST and Mental Health Week.

ECU also continued to support two volunteer equity networks. University Contact

Officers provide referral advice on equity policies and practices for students and staff who are concerned about discrimination or harassment, while “ALLYs” provide a network of advocates for Gay, Lesbian, Bisexual, Transgender and Intersex students and staff.

Quality

During 2013 ECU developed a new Excellence Framework, to provide a consistent and holistic approach to continuous quality improvement across different levels of planning and review. An accompanying ECU Excellence Framework Policy, which supports the various quality review processes within the University, was also approved in 2013. This policy provides an overarching approach to all planning and review activities.

The ECU Annual Review process is underpinned by an evidence-based approach and uses performance-based metrics from the revised ECU

Performance Indicator

Framework.

Guidelines were introduced in 2013 describing consistent internal processes to be followed for the professional accreditation of courses. A web-based unit and course review application (ECUonQ) was developed and the application will be in use from

January 2014.

A Quality and Performance Advisory Group, chaired by the Deputy Vice-Chancellor

(Academic), was established in 2013 to provide advice to the Vice-Chancellor on matters relating to the Excellence Framework.

ECU’s capacity to manage quality, compliance standards and academic governance was enhanced by the merger of the Office of Academic Governance and the Quality Unit to create an expanded Quality and Academic Governance Unit within the Planning, Quality and Equity Services Centre.

Strategic oversight of quality issues is included in the terms of reference for the Quality,

Audit and Risk Committee, as well as in the Quality, Audit and Risk Committee Charter.

Governance

As required by the Voluntary Code of Best Practice for the Governance of Australian

Universities (Item 14) ECU continues to comply with the Voluntary Code of Best Practice

for the Governance of Australian Universities (the Code). Note that Item 4 of the Code

(which deals with procedures for the removal of the Chancellor or Pro-Chancellor) does not apply, as the University’s legislation does not contain the relevant provisions.

That notwithstanding, in 2012 the Governance Committee reviewed the Corporate

Governance Statement and the Council Standing Orders to provide greater guidance to

Council on this issue.

Risk Management Statement

This statement is consistent with, and complies with, the Voluntary Code of Best Practice

for the Governance of Australian Universities (Item 11):

ECU has an Integrated Risk Management Framework and Policy. It is compliant with ISO

Standard 31000: Risk Management.

Strategic oversight of risk management is included in the terms of reference for the

Quality, Audit and Risk Committee, as well as in the Quality, Audit and Risk Committee

Charter and the Risk and Assurance Service Centre Charter approved by Council in August 2011. A Risk Reference Forum, chaired by the Deputy Vice-Chancellor

(Academic), assists with the exchange of experiences of best practice and dissemination of risk management-related material within the University.

Functionally, the Risk Assurance Service Centre is responsible for the development and implementation of risk management strategies, methods and tools (including insurances), legislative compliance, business continuity and fraud and misconduct prevention and management. The Human Resources Services Centre is responsible for the day-to-day operation of occupational safety and health strategies and workers’ compensation. The Office of Legal Services is responsible for the oversight of legal risk within ECU.

134

Risk Management

A major component of corporate governance at ECU is effective risk management.

During 2013, ECU improved the alignment between internal audit planning and reporting and the University’s Strategic Risk Register. The University also commenced revising the Integrated Risk Management Policy as well as the Strategic Risk Register. The

Quality, Audit and Risk Committee now receives half-yearly updates on the status of

ECU’s Strategic Risks.

Fraud and misconduct prevention training for middle management and supervisors was conducted during 2013. ECU risk assessed its operations for legislative compliance with the State Records Act 2000 (WA). The report recommended a number of processes and procedural changes to address issues and enhance compliance with the Act. The

University continues to implement procedure to ensure compliance with the Autonomous

Sanctions Act 2011 (Cwlth) as well as for the introduction of the harmonised work, health and safety legislation.

Business Continuity Plans are in place for all ECU campuses. Documentation and testing of IT disaster recovery plans and key IT systems continued during 2013. The

Chief Information Officer also initiated a review of ITSC’s business continuity plans.

More information on Risk Management can be found on the ECU website.

advErtising

In accordance with the requirements of section 175ZE of the Electoral Act 1907 (WA) the

University is required to report all expenditure incurred by, or on behalf of, the University on advertising, market research, polling, direct mail and media advertising during the financial year.

Advertising expenditure in 2013 totalled $5,291,940. The amount in each expenditure class and the organisations paid, are listing in Table 29 below.

Table 29: Advertising Expenditure, 2013

Advertising agencies

303 Group Pty Ltd

Longtail Communications Company Pty Ltd

Hobsons Australia Pty Ltd

Market research organisations

Polling organisations

Direct mail organisations

Media advertising organisations

Mitchell and Partners Australia Pty Ltd

Google

Other organisations

Total Expenditure

2,807,992

50,209

0

0

2,433,739

5,291,940

135

rECordkEEPing

The University continued to embed record keeping practices across the University with the ongoing rollout of the Electronic Document and Records Management System (EDRMS). The

University increased consultation and advice in relation to information structure, the provision of record keeping advice on information storage, cloud technology and the management of records derived from a social media environment.

The EDRMS is the University’s approved record keeping system, allowing emails and documents from any application to be saved electronically. The focus for the EDRMS project in

2013 was in the academic areas of the University, with the rollout completed for the Faculty Offices and also for a number of business units within the faculties.

State Records Commission Standard 2 Record Keeping Plans: Principle 6 - Compliance

ECU is subject to the requirements of the State Records Act 2000 (WA) and is committed to compliance in its record keeping activities.

ECU’s activities under each of the requirements include:

The efficiency and effectiveness of the organisation’s record keeping system is evaluated not less than once every 5 years.

ECU’s Record Keeping Plan was submitted to the State Records Office for review in March 2011 and was approved for a further five year period. It is due for review again in 2016.

The West Australian University Sector Disposal Authority for records was approved by the State Record Commission and was updated in 2013. It will be fully reviewed in 2016.

Promotion of the ECU Vital Record program to ECU staff commenced in April 2012 and there was a 50 per cent increase in the number of vital records captured.

The organisation conducts a record keeping training program.

ECU conducts regular record keeping training programs that are integrated into the University’s overall professional development and training framework. These include: z z

A basic record keeping induction training session, available to all new staff. z z

The Records Awareness Training System, which was implemented in 2008 to raise record management awareness for staff, continues to be offered to staff. Since implementation, over

1,940 staff have completed, or are working through the course.

z z

Monthly training courses on the University’s record keeping software (TRIM) are provided at Basic, Intermediate and Advanced levels. In 2013, 440 staff undertook some form of records training.

z z

Customised group sessions on TRIM continued to be developed and delivered, on request.

z z

One-on-one training occurred, on request.

The efficiency and effectiveness of the record keeping training program is reviewed from time to time

The outcomes of all record keeping training are monitored and staff feedback is collected through questionnaires. This feedback is reviewed to assess whether the training was effective. Feedback is then used to review training sessions and the overall training program that is delivered. An Intermediate level course for users was introduced as a result of this feedback.

The organisation’s induction program addresses employees’ roles and responsibilities with regards to their compliance with the organisation’s record keeping plan.

All new ECU employees undergo an induction course which addresses employee roles and responsibilities in regard to the compliance aspects of the Record Keeping Plan.

Additionally, this material is included in a handbook issued to employees when they commence work at ECU.

136

disability aCCEss and inClUsion Plan oUtComEs

In July 2013, as required under schedule 3 of the Disability Service Regulations 2004 (WA), ECU reported on achievements against its Disability Access and Inclusion Plan (DAIP) for the

2012/13 reporting year. It is important to note that as the DAIP spans a five year period (2011-2016), many of the strategies will continue to be implemented throughout that period. Some examples of achievements against ECU’s DAIP Outcomes in 2012/13 are listed below.

Outcome One: People with disabilities have the same opportunities as other people to access the services of, and any events organised by, the University.

z z

A clause was included in all course and unit outlines promoting reasonable adjustments to the learning program for people with disabilities.

z z

An Inclusive Curriculum Checklist was made available.

Outcome Two: People with disabilities have the same opportunities as other people to access the buildings and other facilities of the University.

z z

Improvements have been made in accessibility in ECU buildings, including going beyond minimum access standards in the construction of the University’s new student services building.

z z

An accessible bus stop was installed on the Joondalup Campus.

Outcome Three: People with disabilities receive information from the University in a format that will enable them to access the information as readily as other people are able to access it.

z z

ECU’s Writing for the Web guide was updated to include a section on accessible content.

z z

Progress was made towards Web Content Accessibility Guidelines 2.0 Level AA compliance across ECU authored webpages.

Outcome Four: People with disabilities receive the same level and quality of service from the staff of the University as other people receive from the staff of the University.

z z

Two mental health workshops were facilitated for staff in 2013.

z z

Anti-discrimination training for staff in the area of disability was mandated through the Equal Opportunity Online training program.

Outcome Five: People with disabilities have the same opportunities as other people to make complaints to the University.

z z

The University Contact Officer (UCO) and Ally networks have been maintained. z z

A Blackboard community site was created for UCOs and Allys.

Outcome Six: People with disabilities have the same opportunities as other people to participate in any public consultation by the University.

z z

ECU’s standard survey software remained compliant with US section 508 accessibility requirements.

z z

The City of Joondalup provided a representative at ECU’s Disability Access and Inclusion Sub-committee to discuss local disability issues.

Outcome Seven: People with disabilities have the same opportunities as other people to seek employment and work experience placements with the University.

z z

Staff records systems have been checked to ensure disability details, if disclosed, are being correctly recorded.

z z

ECU has had regular contact (monthly) with leading disability agencies discussing positions that are being advertised.

Outcome Eight: The University promotes an inclusive culture that values diversity, does not tolerate harassment or discrimination and encourages a secure and safe environment for all students and staff.

z z

The Centre for Learning and Development has integrated mental health skills training in the new manager/supervisor training from 2013.

z z

Eight disability experts were identified and placed on the media experts database.

137

Contact ECU by phone on

134 ECU (134 328)

For calls outside Australia phone

(61 8) 6304 0000

Email us at [email protected]

or visit reachyourpotential.com.au

Become a fan at

facebook.com/ecujourney

Follow us at

twitter.com/edithcowanuni

Watch us at

youtube.com/edithcowanuniversity

Every effort has been made to ensure that the information contained in this publication is correct at the time of printing.

The information is subject to change from time to time and the University reserves the right to add, vary or discontinue courses and impose limitations on enrolment in any course.

The publication constitutes an expression of intent and is not to be taken as a firm offer or understanding.

ECU IS SM KE-FREE

GreeninG eCU: Edith Cowan University is committed to reducing the environmental impact associated with its operations by conducting its activities in a socially and environmentally responsible manner. This includes implementing strategies and technologies that minimise waste of resources and demonstrate environmentally sensitive development, innovation and continuous improvement.

CRICOS IPC 00279B tl0052_1404

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