20 09 ANNUAL REPORT 2009

20 09 ANNUAL REPORT 2009

Contents:

3

Mission Statement

4

Report from the Chancellor

6

Report from the Vice-Chancellor

8

Year in Review

18

The University Council

20

Officers and Senior Leadership Team

22

Directory

23

Financial Review

25

Summary Facts and Figures

26

Statement of Responsibility

27

Audit Report

30

Statement of Comprehensive Income

31

Statement of Changes in Equity

32

Balance Sheet

33

Statement of Cash Flows

35

Notes to and Forming Part of the Financial Statements

71

Statement of Service Performance

Appendices:

90

Students

94

Staff

ANNUAL REPORT 2009 PAGE 1

PAGE 2 ANNUAL REPORT 2009

MASSEY UNIVERSITY

Mission Statement

“By 2020 Massey will be acknowledged as New Zealand’s defining university and as a world centre of tertiary learning.”

Six Big Goals for the University

1 RESEARCH AND SCHOLARSHIP

We will promote the highest standards of research and scholarship and be a world leader in our areas of specialisation.

2 TEACHING AND LEARNING

We will ensure an exceptional and distinctive learning experience at Massey for all students.

3 CONNECTIONS

We will strengthen our connections with local, national and international partners and stakeholders to gain mutually beneficial outcomes.

4 RESPONSIBILITY

We will enhance our reputation as New Zealand’s defining university by contributing to understanding of, and innovative responses to, social, economic, cultural and environmental issues.

5 GENERATING INCOME

We will significantly increase our income to allow for more investment to enable the University to achieve its goals.

6 ENABLING EXCELLENCE

We will provide the very best working and learning environment for our staff and students.

ANNUAL REPORT 2009 PAGE 3

REPORT FROM THE

Chancellor

Although my involvement with the Council of Massey University stretches over many years, 2009 was my first year as Chancellor. I was delighted, therefore, that my first year coincided with the publication of a new strategic plan for the University titled The Road to 2020.

The plan is ambitious. It states that “By 2020 Massey will be acknowledged as New Zealand’s defining university and as a world centre of tertiary learning”.

Members of the Massey Council are determined to see this mission statement fulfilled.

We believe that Massey is rightly seen as “New Zealand’s defining

University”. It is the University which best gives expression to those things associated with being a New

Zealander – creativity, innovation and a sense that knowledge should be applied in some way that is of practical benefit to the wider community.

Massey is most representative of

New Zealand because it has main campuses in Wellington, Manawatu and Albany with smaller outposts in Hawkes’ Bay and Taranaki. Massey farms are dotted throughout the North Island. Our distance education virtual campus serves the interests of students throughout the nation and around the world.

For close to 125 years Massey’s combination of ground breaking research and outstanding teaching has been defining and shaping the world view of New Zealanders.

Our ambition to be acknowledged as a “world centre of tertiary learning” is equally well founded. There is no doubt that of all New Zealand universities it is Massey that is most recognised around the world. There is a simple reason for this. Massey is one of the world’s leading agrifood universities. For over 80 years students have come from all around the world to study and do research at Massey. They have gone on to become our champions. Today we also have a world-wide reputation for our leadership in many other disciplines as diverse as design, defence, aviation, health, sport and finance upon which we intend to build.

During this year, the Council has been pleased with the progress that has been made toward the 2020 plan. The success Massey researchers have enjoyed nationally and internationally has been great to see. Moves to establish a new model of commercialisation through partnerships with the Bio-Commerce

Centre in Palmerston North and the e-Centre in Albany have already led to a higher throughput of new ideas.

In the area of teaching and learning it has been particularly pleasing to see the surge in students keen to study at Massey,

PAGE 4 ANNUAL REPORT 2009

the number of awards being given to teaching staff and the rapid development of the academic reform programme which will unfold more fully in 2010.

A great deal of work has gone into extending the engagements

Massey has with stakeholders and partners around New Zealand and the world. Massey has always placed great emphasis on connections and this will continue.

Throughout the year sustainability has been a key area of work for the University. Gaining funding for the Life Cycle Management

Centre, the Greenhouse Gas Research Centre and the Natural

Hazards Platform are just three examples of Massey being recognised for its leadership in this crucial area.

A range of new approaches to lifting the revenue of the University were started during the year and I would point to the relaunch of the Massey Foundation with its goal of raising $100 million over ten years as evidence of a spirit of entrepreneurialism that is vital to the future of the University.

Finally, efforts to improve the working and learning environment for staff and students have seen such notable developments as a close partnership between student representatives and the

University, the completion of the new library at Albany and a strong emphasis on Mäori and Pasifika students.

These achievements have taken place against the backdrop of a very challenging policy and financial environment. Current government policy is directed at lifting quality and gaining more value for the dollars invested in tertiary education. Tertiary funding was reduced in 2009 and a cap was imposed on the number of students the Government was willing to fund. Despite this, Massey has managed to move its plans forward and retain a modest level of earnings for future investment. However the

Council and University Senior Leadership Team recognise that in an environment of constrained Government funding we must lift the level of both revenue and retained earnings if we are to achieve our ambitious goals

Council is an enthusiastic supporter of the University’s strategic plan. But we are aware that all plans come to nothing without sound management and financial stability. Throughout the year, Council has supported moves to reduce costs and raise the revenue of the University. A close relationship between senior management and the Council has ensured that, despite challenges, the year has been a highly productive and satisfying one. My thanks go to the Vice-Chancellor and his Senior Leadership Team, staff, students and our partners for a year marked by outstanding accomplishments. I would also like to recognise my fellow

Council members who have worked diligently and harmoniously during the year to ensure Massey is well positioned for the future.

Dr Russ Ballard

Chancellor

ANNUAL REPORT 2009 PAGE 5

REPORT FROM THE

Vice-Chancellor

When I took up my post as the Vice-Chancellor of Massey University after 21 years in local and central politics, five as the Minister Responsible for Tertiary Education, many people asked me what it was like to turn from “gamekeeper to poacher”.

I can only say that I have greatly enjoyed the transition. The world of universities has changed significantly since I taught as a junior lecturer in business administration and then a lecturer and senior lecturer in sociology during the 1970s and 80s. I recall my time as an academic as enormously rewarding. I taught during a time of rapid expansion. I was able to be involved in new developments in teaching and research while taking on numerous new and exciting projects. It seemed that whatever new challenge I wanted to explore, the resources could always be found from somewhere.

Looking back from the vantage point of 2009, what was distinctive about teaching in a New Zealand university (as it was in most western democracies) through the

1970s and 80s was the ability of staff to define for themselves what they wanted to teach and research. Universities were very much their own masters.

This is not the case today. During the latter part of the 20th century the wider society began to take a close interest in the contribution universities might make to the future of the nation.

Issues of quality, relevance, accessibility and connectedness were raised and universities found themselves having to report on their performance.

An annual report is not the place to debate the merits or otherwise of the changes that have taken place in tertiary education, but it is important to acknowledge that changes have taken place and universities must respond if they are to thrive.

This is what we are seeking to do at

Massey University. 2009 has seen us map out our future for the next

10 years in our newly released plan

The Road to 2020. The plan sets out clearly our mission, defining qualities and six big goals. These goals make it clear that Massey is research -led and wants to be a world leader in its areas of specialisation; that our teaching will be distinctive and exceptional; that we will be connected and engaged with our stakeholders and partners; that we will make a practical contribution to solving real world problems; that we will diversify our revenue base; and that we will provide a great environment for students and staff.

I hope Massey’s plan for the future is read by anyone who has an interest in the University. Be assured that we mean what we say to be put into action. That is why this year we have:

PAGE 6 ANNUAL REPORT 2009

• made it clear that teaching and research are our core activities and that we intend to excel in both;

• ensured that each of our campuses (Wellington, Manawatu,

Albany) has a distinct identity while operating within a “one university” model;

• focused on gaining financial stability so appropriate investment can be made in the key areas;

• stressed the importance of collegiality amongst staff across all campuses;

• strengthened the role of management while encouraging a more inclusive style that makes the most of talent throughout the University;

• ensured a close working relationship between the University

Council and senior management;

• deepened and expanded our engagement with the various communities associated with the University;

• redeveloped the Massey brand;

• been ambitious about the future and reflected this in the way the university operates; and

• instituted a programme of change designed to focus the university on its strengths.

2009 is the first year of a 10 year plan. There is a long way to go and the road is not going to be smooth. Changes in Government policy and financial constraints will demand a lot of staff, students and our supporters. But we are determined to move forward with confidence because that is our responsibility. Of all New

Zealand universities, Massey has always been most closely associated with the economic, social, cultural and environmental future of the nation. Of all universities it is Massey that carries the responsibility of upholding the nation’s academic reputation around the world. We take these responsibilities seriously.

In closing, I want to thank staff and students for their outstanding contribution during 2009. Thanks must also go to supporters of

Massey including alumni, the business community, professional organisations, local government, iwi, Pasifika, new migrant communities, and of course our major funder the Government of

New Zealand.

If a lot was accomplished in 2009, our intention is to do more in

2010.

Hon Steve Maharey

Vice-Chancellor.

ANNUAL REPORT 2009 PAGE 7

2009 YEAR IN REVIEW

Campuses and Colleges

Albany campus

• More than 800 new students, friends and families, packed North Harbour Stadium for a record attendance to a Welcome

Reception in the campus’ 17-year history.

Albany’s new library building

• The Ferguson Bar opened on campus next to the Recreation Centre in

February, owned and run by North Shore businessmen and College of Business graduates, Andrew Waite and Andrew

Jackson.

• The Let’s Beat Diabetes Nutrition

Scholarship programme was launched, aiming to turn the tide on the growing number of diabetes sufferers in South

Auckland – a workforce development partnership between the College of

Sciences, the Counties-Manukau District

Health Board and the Ministry of Health.

• A team of Massey engineering students took the top title in the university category at the Vex Robotics World championships in Dallas, Texas.

Dr Johan Potgeiter, senior lecturer in mechatronics, engineering and industrial management at the School of

Engineering and Advanced Technology, won Volunteer of the Year at the event.

It was the first time New Zealand has competed.

Professor David Bellamy, who gave a public lecture at the campus and visited

PhD students at the institute to discuss topics such as sustainable farming, biofuels and carbon capping.

• The first stage of the Albany Library

Extension building opened in November, and was blessed during a dawn ceremony in December. The $30 million, five-level building features state-of-theart study pods for group study, expanded information commons and new Mäori and Pasifika collections. health professionals in the district. The objective is to build on existing education and research strengths in the region and to foster new centres of excellence.

• Ecology and conservation postgraduate students at the Institute of Natural

Sciences won praise for their work from prominent British conservationist

• The University joined the Waitemata

District Health Board’s Health Campus initiative, to provide education, research and innovation to support the training of

Professor David Bellamy in discussion with postgraduate Ecology and Conservation

Group students at the Institute of Natural

Sciences.

PAGE 8 ANNUAL REPORT 2009

Manawatu campus

• Consumer demand for leaner meat led to the establishment of New Zealand’s first computed technology scanning unit for large animals. Located at the University’s

Veterinary Teaching Hospital, the

$470,000 scanner will be used for any animals that require it, though the initiative came from Landcorp Farming. A purpose-built facility costing $1.1 million has been constructed around it.

Animal welfare collaborating centre management committee members, from left: Professor

Paul Hemsworth, Dr Peter Thornber, Professor Kevin Stafford, Dr Kate Littin, Professor David

Mellor, Dr Lindsey Matthews, Dr David Bayvel, Dr Chris Prideaux and Dr Andrew Tribe.

• The first management committee meeting of an expanded Australasian animal welfare collaborating centre was hosted at the campus in October. With

Massey support, the World Organisation for Animal Health expanded the collaborating centre to include partner groups at AgResearch, the University of

Melbourne, the University of Queensland and the Commonwealth Scientific and

Industrial Research Organisation in New

South Wales.

• More than 200 secondary school pupils and teachers visited the campus for a three-day scholarship symposium involving some of the University’s top academics. Hosted by the College of

Education, the symposium is aimed at year-13 pupils sitting one or more

The heritage Refectory building to be restored and refurbished scholarship subjects and their teachers.

Strengthening the relationship between local government and education providers was a key issue on the agenda for educators and community leaders at the first Community Engagement in

Education Forum, held at the campus in

July.

• The Graduate Research School’s first writing retreat for doctoral scholars, was held in November. The retreat provided an opportunity for intensive writing time away from the normal demands of work and domestic life, interspersed with optional workshops.

• The University announced a major fundraising initiative to raise $18 million to restore and refurbish two of the campus’ most iconic heritage buildings,

Old Main Building and Refectory.

ANNUAL REPORT 2009 PAGE 9

[

MAWSA representatives celebrated their

10th anniversary in a typically off-beat student way in a year in which the campus

[

also marked the milestone in a more formal manner.

Wellington campus

• The 10th anniversary of Wellington’s campus was celebrated with numerous events. Highlights included a VIP cocktail function and the opening of an exhibition in the Museum Building celebrating the building’s illustrious history.

• Celebrations also included the presentation of ‘once in a decade’ staff excellence awards. To be eligible nominated staff must have worked at the campus for at least 10 years. Senior librarian Christine Alexander and senior technician and laboratory manager

Marilyn Mabon were presented with separate silver service platters in honour of their achievement.

• Four special Wellington campus research awards were also made to coincide with the 10th anniversary. The awards were presented to Wellington academics from each college considered to have made a defining research contribution to that college. Recipients were: College of

Business, Professor Frank Sligo, head of the Department of Communication,

Journalism and Marketing; College of Creative Arts, Associate Professor

David Cross, Litmus Research Initiative;

College of Humanities and Social

Sciences, Associate Professor Annette

Huntington and Dr Jean Gilmour, nursing programmes, School of Health and Social services; College of Sciences, Mr Stan

Abbott, senior lecturer in microbiology at the Institute of Food, Nutrition and

Human Health.

• Students were also acknowledged with the awarding of one-off scholarships for school leavers and postgraduates. The scholarships, in total worth $20,000 and sponsored by the Dominion Post, were available to New Zealand citizens and permanent residents for full-time study in Wellington in 2010.

student way with music and a mid-winter barbecue.

The annual research medals dinner was held in the

Great Hall of the Museum building

Sir Peter Gluckman, the Government’s chief science adviser.

• The Massey at Wellington Students

Association (MAWSA) also celebrated its 10th anniversary in a typically off-beat

• The year saw separate inaugural celebrations acknowledging Mäori sector and alumni in March, while in

May Pasifika graduates were honoured with a special ceremony one evening before the main graduation events at the

Michael Fowler Centre.

• Two medals awarded of particular significance to Wellington staff were the presentation of an early career research medal to the associate director of the Sleep/Wake Research Centre, Dr

Leigh Signal, and an individual medal to renowned photographer and Professor of Fine Arts, Professor Anne Noble.

• In September, Regional Chief Executive

Professor Andrea McIlroy, represented the university at two separate conferences in China, including the 4th

World Women’s University Forum in

Nanjing.

• New Zealand School of Music senior lecturer Flora Edwards was made an officer of the New Zealand Order of Merit for services to music.

• The Wellington campus also organised a series of public lecturers by staff with a wide variety of research disciplines around the theme of sustainability. These included lectures by rainwater specialist

Stan Abbott, occupational health and asthma and cancer researcher Professor

Jeroen Douwes and School of Fine

Arts director of photography Associate

Professor Wayne Barrar.

• The Great Hall of the Museum Building was the venue for the university’s annual

Research Medals Dinner, which included an address by guest speaker Professor

Graduation ceremonies included an inaugural ceremony to honour Pasifika graduates.

PAGE 10 ANNUAL REPORT 2009

Massey University is now a programme partner with the

Chartered Financial Analyst Institute based on the Bachelor of

Business Studies with a major in Finance.

College of Business

• The College achieved accreditation from the Association to Advance Collegiate

Schools of Business. It is now one of only 570 business schools out of 10,000 worldwide to have this accreditation.

The British Association of Master of

Business Administration has accredited

Massey’s Executive Master of Business

Administration.

• Massey University is now a programme partner with the Chartered Financial

Analyst Institute based on the Bachelor of Business Studies with a major in

Finance. The School of Accountancy secured accreditation from the

Association of Chartered Certified

Accountants and was reaccredited by the Chartered Institute of Management

Accountants.

Vice-Chancellor Steve Maharey and Aviation School chief executive Ashok Poduval with one of the new training aircraft.

• The University showed its commitment to having a world-leading aviation school by investing $8 million in a fleet of 14 new aircraft. Massey is one of a few universities worldwide to offer degrees in aviation with professional pilot training incorporated. The two high performance twin-engine Diamond Aircraft 42 and 12

DA40 single-engine aircraft will keep the school at the forefront of pilot training in

New Zealand.

• Community engagement during 2009 included the Young Enterprise Scheme, the Global Enterprise Challenge launched by Prime Minster John Key,

New Zealand Business Week, the ANZ-

Massey Economics Challenge, and the National University Business Case

Competition. We continued to support emerging leaders through the Captains’

Club and Dean’s List schemes.

• The New Zealand Centre for SME

Research hosted the Small Enterprise

Association of Australia and New

Zealand conference and was named as the venue for the 2012 International

Council for Small Business conference.

The college also hosted the University’s first sustainability conference.

• Toyota New Zealand chief executive

Alistair Davis took over as chairman of the College of Business Advisory Board from Business NZ chief executive Phil

O’Reilly. The board was set up to provide strategic advice to the college and to ensure that its teaching and research are relevant to the business community that employs many of the graduates.

• Academic staff recognised for their excellence include Dr Hamish Anderson who was the first person outside Australia to be awarded the Pearson Accounting and Finance Association of Australia and New Zealand Accounting Finance

Lecturer of the Year Award for 2009. Dr

Heather Kavan was presented with a

Tertiary Teaching Sustained Excellence

Award. Dr Bevan Catley received the inaugural Richard Buchanan College of

Business Teaching Excellence Award for his work with first-year students.

• The Healthy Work Group carried out a study funded by the Department of

Labour and the Health Research Council into workplace stress and bullying.

• Professor Ben Jacobsen is one of a team that secured a Marsden grant for a project entitled Disasters and Asset

Pricing.

ANNUAL REPORT 2009 PAGE 11

College of Creative Arts

• Reinforcing its reputation as the leading design school in New Zealand, the college students dominated the James

Dyson Product Design Awards, with all three finalists from Massey, and the

Designers Institute of New Zealand

BeST Awards, with five gold, three silver and seven bronze wins across product, graphic and visual communication categories. BeST Gold Award winner Tim

Cox also won the top Dyson award for his

Tretech equipment, an ultrasound tool that is set to revolutionise the forestry industry.

• Associate Professor Tony Whincup launched his latest book on the subject,

Bwai ni Kiribati. Professor Whincup, who heads the School of Visual and Material

Culture at the College, has more than

30 years experience photographing and writing about Kiribati.

• A record 20,000 attended more than 35 different events at the BLOW Creative

Arts Festival, where the college welcomed three more of its illustrious alumni – Grant Alexander, Jane Ussher and the late John Drawbridge – to its Hall of Fame.

• Professor Dorita Hannah, Programme

Leader in Spatial Design, received international acclaim with awards for both costume and set design at the

World Stage Design Awards.

• Staff who featured in the BeST awards were Professor Tony Parker for his work on the Hulme CanAm supercar concept, and Sam Trubridge for his exhibition design for the theatre production Sleep/

Wake.

• Professor Anne Noble was named one of the five Arts Foundation Laureates for her ongoing and outstanding contribution to New Zealand photography.

• Industrial Design student Annabel

Goslin received a Red Dot, a coveted international award for outstanding product design, for her Clima-shell

Armadillo sports jacket. Spatial Design students won second and third places at the Australasian Student Design Awards in both exhibition and interior design categories: and six Visual Communication

Design students gained membership of the prestigious International Society of

Typographic Designers.

BeST Gold Award winner Tim Cox with his Tretech ultrasound tool that is set to revolutionise the forestry industry.

[

A cultural group from Kiribati joined in celebrations for the launch of the latest book about the tiny Pacific island nation by

[

Associate Professor Tony Whincup.

PAGE 12 ANNUAL REPORT 2009

Professor Tom Nicholson was elected to the Reading Hall of

Fame based in the United States, one of about 100 international academics currently in the hall – and the only New Zealander.

College of Education

• The college hosted two international conferences in Wellington in January, one on dyslexia, hosted by Professors

Bill Tunmer and James Chapman, and one for the International Academy for

Research in Learning Disabilities.

and bullying, behaviour disorders, disability issues, Mäori and Pacific Island students, and learners with diverse linguistic and cultural backgrounds

• A delegation from the Singapore Institute for Adult Learning was hosted at the

Manawatu campus in March to establish new research partnerships while also identifying potential adult training programmes for delivery in Singapore.

• The Centre for Research Excellence in Mathematics Education hosted the 11th New Zealand Association of Mathematics Teachers biennial conference in Palmerston North.

Professor Glenda Anthony delivered the keynote address.

• Associate Professor Tracy Riley, from the College of Education’s School of Curriculum and Pedagogy, was elected to the board of the Professional

Association for Gifted Education.

• Launch of the Centre of Excellence for Research in Inclusive Education to conduct research and teaching in areas including gifted and talented students, home and school partnerships, violence

• The National Centre for Tertiary

Teaching Excellence, a national project launched to find ways to get more scientists in New Zealand by examining the transition from secondary schools’ science classes to university degrees.

A joint venture between the college and the College of Sciences, funded by Ako

Aotearoa.

• In September the college hosted a national hui to discuss the status of

Professor Tom Nicholson, elected to international Reading Hall of Fame.

provision of Mäori medium initial teacher education. All 10 national providers in the Mäori medium/immersion teaching sector attended and discussed issues ranging from language proficiency to a national shortage of teachers.

• Professor Tom Nicholson was elected to the Reading Hall of Fame based in the United States, one of about 100 international academics currently in the hall – and the only New Zealander.

The launch of the National Centre for Tertiary Teaching Excellence.

ANNUAL REPORT 2009 PAGE 13

[

Senior lecturer in the School of English and Media Studies, Dr Angie Farrow, who wrote and staged the play Before

[

the Birds.

College of Humanities and Social Sciences

• New Pro Vice Chancellor Professor

Susan Mumm was welcomed to the college at the start of the academic year.

• College research centres were awarded significant Foundation of Research,

Science and Technology and Health

Research Council funding to lead research in occupational health; sleep; cancer, alcohol and drug research;

Mäori health and development; and sustainability.

• Massey sociologist Professor Paul

Spoonley was awarded a Royal Society of New Zealand Science and Technology medal for his work on race relations in

New Zealand. Professor Spoonley and

Professor Glyn Harper, from the Centre for Defence Studies, were awarded

Fulbright Senior Scholars Awards.

• Dr Nigel Parsons, Politics Lecturer and

Middle East specialist, was named

Massey University Student Association’s

Manawatu Lecturer of the Year.

• Funding of $6.4 million for an eight-year project to study youth transitions being awarded through the Building and

Inclusive Society portfolio to Professor

Robyn Munford and Dr Jackie Sanders.

• Senior lecturer in the School of English and Media Studies, Dr Angie Farrow, wrote and staged a play which mined

Manawatu’s rich mystical history.

Before the Birds was performed as part of Student Arts Week in September.

• The School of Psychology and the Joint

Centre for Disaster Research helped the governmental response to the tsunami that struck Samoa in September.

Dr Nigel Parsons wins the Students’

Association’s Manawatu lecturer of the year award.

PAGE 14 ANNUAL REPORT 2009

College of Sciences

• Professor Roger Morris from the Institute of Veterinary, Animal and Biomedical

Sciences’ EpiCentre received the

2009 Kesteven Medal, awarded for scientific and technical contributions to international agricultural development.

New Zealand agribusiness. To date partnership engagements have occurred with Gallaghers Group, the Ministry of

Agriculture and Forestry, the Ministry of

Foreign Affairs and Trade, and Landcorp.

• Professor Peter Lockhart from the

Allan Wilson Centre was awarded the prestigious James Cook Research

Fellowship to undertake research on the evolutionary response of New Zealanld alpine plants to environmental change.

• Dr Murray Cox from the Institute of

Molecular BioSciences was awarded the

Gabriel Ward Lasker Prize by the editorial board of Human Biology for the most influential article published in the journal in 2008.

• The company PolyBatics was launched in early August to exploit intellectual property developed by Professor Bernd

Rehm of the Institute of Molecular

BioSciences. Professor Rehm will assume the role of Chief Scientific

Officer for PolyBatics and has a research contract with them to do further research to support proof of concept of the patents.

• Distinguished Professor Gaven J Martin,

Head of the Institute for Advanced Study and the Instituted for Natural Sciences on the Albany Campus was invited to deliver two Charles P Taft lectures in the United

States.

• Professor Rory Flemmer from the

School of Engineering and Advanced

Technology won the title of New

Zealand Engineering Innovator of the

Year at the New Zealand Engineering

Excellence Awards.

• Massey was successful in its bid to establish a Chair in Life Cycle

Management. Sponsored by the

Government through the Ministry of

Agriculture and Forestry, the Chair will be housed within the Institute of

Food, Nutrition and Human Health alongside agribusiness and supply chain academics. The centre is focused on managing New Zealand’s environmental footprint in partnership with the ministry,

AgResearch, Lanadcare Research,

Scion and Plant and Food.

• Prime Minister John Key launched Food

Innovation New Zealand in August.

Six food research and development organisations, science networks. including Massey

University, have committed themselves to a single international brand, Food

Innovation New Zealand, to promote the country’s agricultural and horticultural

• Research led by Professor Paul Rainey, shedding new light on the origins and genetics of adaptive traits, was a featured story in the prestigious science journal Nature.

• PhD student Carlene Starck’s research into a debilitating disease was honoured at the MacDiarmid Young Scientist of the Year Awards. Ms Starck, who studies structural biochemistry at the

Manawatu campus, won the Advancing

Human Health and Wellbeing category of the awards for research into the role of protein misfolding in human disease.

Professor Paul Rainey’s research into the genetics of adaptive traits featured on the cover of Nature.

Prime Minister John Key and Vice-Chancellor

Steve Maharey at the Food Innovation New

Zealand launch.

• The University’s Agrifood Strategy commenced in earnest. The strategy is spearheaded by Mark Jeffries and is designed to encourage partnerships across the entire value chain of

• Professor Emeritus Colin Holmes was made a member of the New Zealand

Order of Merit for services to agriculture, while 11 Massey alumni received honours.

Winner of the Advancing Human Health category at the MacDiarmid Young Scientist

Awards, Carlene Starck.

ANNUAL REPORT 2009 PAGE 15

[

Guests gathered at the first

Mäori alumni event at the

Wellington campus.

[

Mäori

• Dr Nathan Matthews was appointed to a new role in the Office of the Assistant

Vice-Chancellor (Mäori and Pasifika) to support the University’s more than 80

Mäori doctoral candidates.

Mäori academic and professional leadership launched in June. Manu

Ao – the Mäori Academy for Academic and Professional Advancement is led by Massey and supported by all eight universities.

• More than 150 guests attended the first

Mäori sector and alumni evening at the

Wellington campus in March at which

Vice-Chancellor Steve Maharey and

Deputy Vice-Chancellor Mason Durie outlined the University’s The Road to

2020 strategy and its relevance to Mäori.

• The Health Research Council is funding two Massey University research projects aimed at improving overall cancer care for Mäori patients and increasing the rate of survival for cervical cancer. Dr Lis

Ellison-Loschmann, from the University’s

Centre for Public Health Research, is leading both projects with $1.2 million from the council.

• During April and May ceremonies were held at each campus to honour the more than 400 Mäori graduates.

Taumata Maunsell-Petersen’s whänau posthumously accepted her

Postgraduate Diploma of Arts majoring in Psychology at the Albany campus ceremony.

• An honorary doctorate (D Litt) was conferred on educationalist Turoa Royal in recognition of his service to education, particularly Mäori education, over a

50-year period. Dr Royal is Chair of Te

Wänanga o Raukawa.

• Dr Selwyn Katene was appointed director of an inter-university academy to support

• As part of Matariki celebrations at

Massey, Professor Mason Durie delivered three public lectures discussing the sustainability of the Mäori estate, approaches to Mäori health, the relationship between Mäori and the

Crown and the constitutional position of

Mäori beyond 2020.

• A three-day visit to Tai Tokerau

(Northland) was made by members of the University’s senior leadership team, including the vice-chancellor.

The delegation met with educators, politicians, business leaders and iwi to hear how the University can support the region, educationally and through research.

• The University’s inaugural Ngä Kupu Ora

Mäori Book Awards – selected by public voting on-line – was hosted by Professor of Mäori Language Taiarahia Black at Te

Pütahi-a-Toi at the Manawatu campus on Mäori Language Day, September 14.

• The year ended with the announcement that Deputy Vice-Chancellor, Professor

Mason Durie had been made a Knight

Companion of the New Zealand Order of

Merit in the New Year’s Honours list.

Winners of the Inaugural Ngä Kupu Ora

Mäori Book Awards: Dr Ranginui Walker,

Malcolm Mulholland, Professor Ngahuia Te

Awekotuku, Margaret Kawharu, Linda Nikora

(Professor Te Awekotuku’s co-author and researcher), Dr Monty Soutar and Dr Deidre

Brown.

PAGE 16 ANNUAL REPORT 2009

The University supported key Pasifika cultural events during the year including the four-day ASB Polyfest at the Counties-

Manukau Velodrome, the largest cultural festival for secondary schools in New Zealand.

Pasifika

• The Academic Board approved the first

Pasifika qualification, the Certificate of

Pacific Development, to be offered by the College of Humanities and Social

Sciences.

• The University supported key Pasifika cultural events during the year including the four-day ASB Polyfest at the

Counties-Manukau Velodrome, the largest cultural festival for secondary schools in New Zealand.

• Ceremonies to honour Pasifika graduates was held at each campus beginning with the Albany campus on April 22 where guest speaker was former All Black and former Massey staff member Michael

Jones.

Michael Jones was the guest speaker at the Pasifika graduation ceremony at the Albany campus, pictured with acting director Pasifika Sione Tu’itahi, Assistant Vice-Chancellor (Mäori and Pasifika) Professor Mason Durie and Vice-Chancellor Steve Maharey.

• Following on from the establishment of a Pacific Peoples’ Consultancy Group at the Albany campus, similar groups have now been established at the

Wellington and Manawatu campuses, providing opportunities for engagement with Pasifika peoples and communities.

The groups comprise representatives from the colleges, Pasifika staff and community members.

• The [email protected] Network and

Whenua Research Network Conference was held at the Wellington campus in

November. Network chair Associate

Professor Rukmani Gounder was reelected at the conference and three new

Pasifika publications were launched:

Teachers Developing Communities of

Mathematical Enquiry by Dr Roberta

Kathleen Hunter; Langafonua: In Search

of Success by Sione Tu’itahi; and Pacific

Development Perspectives: Meeting

Our Diverse Goals, edited by Associate

Professor Rukmani Gounder.

• Additional capacity has been added to the Pasifika directorate with the appointment of Dr Etuate Saafi to a new position of Senior Research Fellow

Pasifika, Dr Saafi is based at Albany.

Engagement Advisers have been appointed in Wellington and Auckland.

• Pasifka Director Professor Sitaleki Finau was made a member of the New Zealand

Order of Merit for services to Pacific

Islands community health.

Midwifery graduate Kathleen Maki attended the inaugural Manawatu campus ceremony to honour Pasifika graduates in May.

ANNUAL REPORT 2009 PAGE 17

2009

The University Council

From left: Karl Pearce, Alexandria Sorensen, Professor Tony Signal, Dr Susan Baragwanath, Stephen Kos, Bruce Ullrich,

Professor Ray Winger, Dr Colin Anderson, Dr Russell Ballard, Dr Alison Patterson, Chris Kelly, Ralph Springett, Nigel Gould and Steve Maharey. Inset: Andrea Davies, Mavis Mullins, Professor Ngatata Love, Alastair Scott.

PAGE 18 ANNUAL REPORT 2009

Chancellor

Dr Russell Ballard, CNZM, BAgrSc, MAgrSc, PhD

Flor., FNZIM

Pro-Chancellor

Stephen Kós, QC, LLB(Hons) Well., LLM Camb.

Vice-Chancellor

Steve Maharey, CNZM, BA, MA (Hons)

Members appointed by the Minister of Education

Dr Russell Ballard, CNZM, BAgrSc, MAgrSc, PhD

Flor., FNZIM

Stephen Kós, QC, LLB(Hons) Well., LLM Camb.

Professor Sir Ngatata Love, GNZM, JP, BCom,

BCA(Hons), PhD Well., ACIS, ANZIM

Alastair Scott BBS

Elected Permanent Member of Academic Staff

Dr Colin Anderson, MA Auck., PhD Auck.

Elected Academic Staff of the Academic Board

Professor Ray Winger, MS, PhD, Wisc., FNZIFST,

FIFST UK, MAIFST

Professor Tony Signal BSc PhD Adelaide

Permanent Member of General Staff

Andrea Davies, BBS, MBA

Representatives of the Federation of Student

Associations at Massey University Incorporated

Ralph Springett (President of EXMSS)

Karl Pearce BSW(Hons) (Joint EMXSS/MUSAF

Appointment)

Alexandria Sorensen (Student Representative)

Elected members from the Court of Convocation

Susan Baragwanath, BA Otago, MA Lond., HonDLitt,

DipEd FRGS

Bruce Ullrich, OBE, BCom Cant., MBA, ACA, FInstD

University Council appointees

Nigel Gould, JP, BCA Well., FCA

Chris Kelly, MVSc, MACVSc

Mavis Mullins, MBA

Alison Paterson, HonDCom, FCA, FInstD

ANNUAL REPORT 2009 PAGE 19

2009

Officers and Senior Leadership Team

Members of the University’s Senior Leadership Team, back row, from left: Professor Robert Anderson, Professor Sally Morgan, Professor John

Raine, Professor James Chapman, Steve Maharey, Dr John Griffiths, Alan Davis, Professor Ian Warrington, Professor Ingrid Day and Professor

Lawrence Rose. Front row, from left: Stuart Morriss, Sue Foley, Professor Andrea McIlroy, Professor Nigel Long, Professor Susan Mumm and

Professor Mason Durie

PAGE 20 ANNUAL REPORT 2009

Officers of the University

Chancellor

Pro-Chancellor

Vice-Chancellor

Dr Russell Ballard, CNZM, MAgrSc, PhD Flor., FNZIM

Stephen Kós, QC, LLB (Hons) Well., LLM Camb.

Steve Maharey, CNZM, BA, MA (Hons)

University Registrar

Stuart Morriss, MPP Well., BAgrSc, DipBusStud.

Senior Leadership Team

Vice-Chancellor

Steve Maharey, CNZM, BA, MA (Hons)

Deputy Vice-Chancellor Professor Mason Durie, CNZM, MBChB Otago, DPsych McGill, DLitt, LLD (Honoris causa) Otago, FRANZCP, FRSNZ

Regional Chief Executives:

Albany and International

Professor John Raine, BE (Hons) Cant., PhD Cant., CEng, FIMechE., FIPENZ, MSAE

Manawatu

Professor Ian Warrington, MHortSc (Hons), DSc, DLitt (Honoris causa) FRSNZ, FNZSHS

Wellington

Professor Andrea Mcllroy, BA Well., MBA, PhD, DipTchg

Pro Vice-Chancellors:

College of Business

Professor Lawrence Rose, BA Bradley, MA Northern Illinois, PhD Texas A & M, FFin

College of Creative Arts

Professor Sally Morgan, BA (Hons), Sheff Hallam, MA Warw., KASKA Antwerp

College of Education

Professor James Chapman, MA Well., PhD Alta., DipTchg, FIARLD

College of Humanities and Social Sciences

Professor Susan Mumm, BA (Hons) Sask., MA Sask., DPhil Sus., FRHS

College of Sciences

Professor Robert Anderson, ONZM, MAgrSc, PhD C’nell, DDA, FNZIAS

Assistant Vice-Chancellors:

External Relations

Sue Foley

Finance, IT, Strategy and Commercial

Dr John Griffiths, BBS (Hons), MCom (Hons) C.Sturt, PhD Monash, CA, AFNZIM

Mäori and Pasifika

Professor Mason Durie, CNZM, MBChB Otago, DPsych McGill, DLitt, LLD (Honoris causa) Otago, FRANZCP, FRSNZ

People and Organisational Development

Alan Davis, LLB Cant., MBA Well.

Academic and Research

Professor Nigel Long, MSc Auck., PhD Qld, FNZPsS

Academic and International

Professor Ingrid Day, BA S.Aust., BA(Hons) S.Aust., PhD S.Aust.

University Registrar

Stuart Morriss, MPP Well., BAgrSc, DipBusStud.

ANNUAL REPORT 2009 PAGE 21

2009

Directory

Bankers

Bank of New Zealand

Auditor

Audit New Zealand on behalf of the Auditor-General

Valuer

Quotable Value New Zealand

Legal Advisers

Buddle Findlay, Wellington

Cooper Rapley, Palmerston North

Russell McVeagh, Wellington

Andrea Craven, Palmerston North

Kensington Swan, Wellington

Davenport Harbour Lawyers, Auckland

AJ Park, Wellington

Insurers

Vero Insurance New Zealand Limited

Axiom Risk Insurance Management Limited

QBE Insurance (International) Ltd

Internal Auditor

PricewaterhouseCoopers

PAGE 22 ANNUAL REPORT 2009

F I N A N C I A L R E V I E W 2 0 0 9

Introduction

Further consolidation marked the 2009 year as the University worked its way through a new capped funding regime at a time when student enrolments increased due partly to the economic environment as unemployment levels continued to climb.

The financial result for the University was a surplus of $1.264 million after allowing for the Tertiary Education

Commission 2008 PBRF error of $2.704 million to be expended in 2009. The operating surplus before the PBRF error was $3.968 million. The budgeted surplus for 2009 was $5.7 million. The bottom line result compares with a 2008 surplus of $5.37 million.

Student numbers at 19,994 equivalent full time students (EFTS) were higher than target of 18,505 by 1,489, both domestic and international student numbers EFTS were above target by 1,431 and 58 respectively.

Income Statement

The University surplus before fair value adjustments of $1.264 million, (0.3% of revenue) is less than last year’s figure of $5.37 million, (1.3% of revenue).

The result was short of the 3% of revenue that the Tertiary Advisory Monitoring Unit (TAMU) of the Tertiary

Education Commission recommends. The University needs to significantly increase its surplus to ensure that it can reinvest for the future to achieve the Road to 2020 Strategy.

The table below sets out several TAMU measures that are used to monitor the financial health of tertiary institutions.

Note:

1

2

3

Measure

Surplus

Cash Cover

Return on Assets

1

2

3

TAMU Targets (%)

3.0

8.0

1.0

Surplus as a percentage of total revenue

Liquid funds as a percentage of annual cash outgoings

Surplus as a percentage of assets

2009

University (%)

0.3

24.5

0.1

Group (%)

0.6

25.1

0.2

Major variances against the budget and last year’s performance are outlined below:

1. Total Operating Revenue

Revenue increased 1.41% over 2008 and was up on budget by 2.15%. Student fees (both Domestic and

International) were above budget by $6.87million and $6.27 million more than last year due to higher student numbers. Contract and trading revenue was higher than both budget and 2008, however, the level of expenditure more than offset this. Interest revenue was sharply down on budget due to lower interest rates.

23

2. Total Cost of Operations

The university budgeted for a decrease in cost over 2009 of 0.4%. However, costs were up on 2008 by 2.48% and up on budget by 3.34%. Staff related costs were 4.% above budget with a number of targeted savings not being achieved partly due to the above budgeted student numbers.

Balance Sheet

The University’s Balance Sheet shows $1.06 billion of assets.

1. Working capital

Current assets are down 6.9% on last year and up 33.9% on budget. Cash and cash equivalent were favourable against budget primarily due to the withdrawal of investments which were converted into cash.

2. Non current assets and liabilities

Noncurrent liabilities were down on last year largely due to current receipts in advance being less. The net value of the University was $59.74 million lower than budget due to the lower than forecast revaluation of land and buildings.

Statement of Cashflows

Ending cash for the year was less than the previous year by $5.172 million due to higher levels of both operational and capital expenditure. However, this was $5.06 million better than budget.

Conclusion

Massey University consolidated its financial situation in 2009. Significant work remains to be done in 2010 to enable the Road to 2020 Strategy to be achieved. Emphasis will be placed on a “value for money” approach to make sure that the University’s activities are all contributing appropriately to the “one Massey University”.

K Argyle

Director – Finance and Asset Management

24

Students

Equivalent full-time students (Efts)

Change over previous year (%) total student enrolments

Change over previous year (%)

Examination pass rate

- internal student (passed/sat)

- extramural study (passed/sat)

Staff

College academic staff (full-time equivalent) student: staff ratio total general staff (full-time equivalent) total general: college academic staff

Financial Performance

Net cost of services per Efts

Net operating surplus/(deficit) ($000)

Return on total assets

Return on total income

Financial Position

Capital expenditure per Efts short-term liquidity

Working capital ratio

Debt to equity

Change in equity

S U M M A R y F A C T S A N d F I G U R E S

Notes

1

2009

19,994

6.70%

36,125

4.97%

90.0%

91.5%

2008 2007

18,738

(3.57%)

34,413

(7.05%)

19,432

(5.09%)

35,491

(10.51%)

89.1%

90.6%

89.0%

91.0%

2006

20,475

(6.29%)

37,022

(6.64%)

89.4

90.1

2005

21,850

(6.33%)

39,657

(4.49%)

90.0%

90.1%

2004

23,326

(0.07%)

41,436

(0.54%)

89.1%

90.1%

2

1117

17.9:1

1,553

1.39

1114

16.8:1

1,457

1.31

1,188

15.8:1

1,522

1.28

1,214

16.3:1

1,490

1.23

1,255

16.8:1

1,574

1.25

1,307

17.3:1

1,583

1.21

$14,622

1,264

0.21%

0.56%

$14,565

5,375

0.50%

1.33%

$13,356

9,053

0.92%

2.39%

$12,991

(1,322)

(0.15%)

(0.37%)

$12,231

3,694

0.53%

1.05%

$11,827

14,762

2.48%

4.20%

$3,060

1.18:1

1.16:1

2.56%

0.19%

$1,977

1.43:1

1.44:1

2.63%

7.21%

$1,475

1.12:1

1.13:1

2.76%

0.77%

$2,165

0.96:1

1.02:1

3.15%

0.96%

$2,652

0.85:1

0.91:1

1.31%

0.57%

$1,605

1.13:1

1.19:1

1.37%

2.61%

Note:

1 EFTS funded includes Ministry of Education funded plus full-fee/international, but excludes NZ School of Music.

2 General staff includes technical and casual and excludes contract and trading.

2006 to 2009 are reported under IFRS; prior years have not been amended.

25

S T A T E M E N T o F R E S P o N S I B I L I T y

In the financial year ended 31 December 2009, the Council and management of Massey University were responsible for:

• the preparation of the financial statement, statement of service performance, and the judgements used therein

• establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

In the opinion of the Council and management of Massey University the financial statements for the financial year fairly reflect the financial position and operations of Massey University.

R Ballard

Chancellor

S Maharey

Vice-Chancellor

JR Griffiths

Assistant Vice-Chancellor – Finance, IT, Strategy and Commerical

20 April 2010

26

A U d I T R E P o R T

T o T H E R E A d E R S o F

M A S S E y U N I V E R S I T y A N d G R o U P ’ S

F I N A N C I A L S T A T E M E N T S A N d P E R F o R M A N C E I N F o R M A T I o N

F o R T H E y E A R E N d E d 3 1 d E C E M B E R 2 0 0 9

The Auditor-General is the auditor of Massey University (the University) and group. The Auditor-General has appointed me, David Walker, using the staff and resources of Audit New Zealand, to carry out the audit on her behalf. The audit covers the financial statements and statement of service performance included in the annual report of the University and group for the year ended 31 December 2009.

Unqualified opinion

In our opinion:

• the financial statements of the University and group on pages 30 to 70:

 comply with generally accepted accounting practice in New Zealand; and

 fairly reflect:

-

- the University and group’s financial position as at 31 December 2009; and the results of operations and cash flows for the year ended on that date.

• the performance information of the University and group on pages 71 to 89 fairly reflects its service performance achievements measured against the performance targets adopted for the year ended on that date.

The audit was completed on 20th April 2010, and is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and the

Auditor, and explain our independence.

Basis of Opinion

We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the

New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements whether caused by fraud or error.

27

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

• determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;

• verifying samples of transactions and account balances; performing analyses to identify anomalies in the reported data; reviewing significant estimates and judgements made by the Council; confirming year-end balances; determining whether accounting policies are appropriate and consistently applied; and determining whether all financial statement and statement of service performance disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Council and the Auditor

The Council is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the University and group as at 31 December 2009. They must also fairly reflect the results of operations and cash flows for the year ended on that date. The Council is also responsible for preparing performance information that fairly reflects the service performance achievements for the year ended 31 December 2009. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act

2001 and the Crown Entities Act 2004.

28

Independence

When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

In addition to the audit we have carried out assignments in the areas of auditing the Chief Executive Officer’s declaration on the Performance Based Research Fund external research income; and a review of the Allocation of Massey’s Overheads to Research Activities, which are compatible with those independence requirements.

Other than the audit and these assignments, we have no relationship with or interests in the University or any of its subsidiaries

David Walker

Audit New Zealand

On behalf of the Auditor-General

Auckland, New Zealand

Matters relating to the electronic presentation of the audited financial statements, performance information

This audit report relates to the financial statements and performance information of Massey University

(the University) and group for the year ended 31 December 2009 included on the University and group’s website. The University and group’s Council is responsible for the maintenance and integrity of the University and group’s website. We have not been engaged to report on the integrity of the

University and group’s website. We accept no responsibility for any changes that may have occurred to the financial statements and performance information since they were initially presented on the website.

The audit report refers only to the financial statements and performance information named above.

It does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and performance information. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and performance information as well as the related audit report dated 20 April 2010 to confirm the information included in the audited financial statements and performance information presented on this website.

Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

29

Government grants

Student fees

Interest

Charges for services

Trust funds

Other gains/(losses)

Total Operating Revenue

Staff related cost

Depreciation

Other direct costs

Finance costs

Trust funds

Total Cost of Operations

Surplus for the year

Other Comprehensive Income

Increases in property revaluation

Other movements in revaluation reserves

Net loss on available for sale assets

Total other comprehensive income for the year

Total comprehensive income for the year

S T A T E M E N T O F C O M P R E H E N S I V E I N C O M E

for the year ended 31 December 2009

Notes

2, 3

3

3

3

3, 25

3, 4

Actual

2009

(000)

173,515

113,366

4,037

108,980

2,874

(2,105)

400,667

University

Budget

2009

(000)

177,119

106,492

5,750

100,978

1,908

-

392,247

Actual

2008

(000)

173,607

107,087

7,467

103,856

2,578

509

395,104

2, 5

2, 18

2, 7

6

25

233,906

37,387

124,293

1,648

2,169

399,403

1,264

224,846

36,539

121,667

2,132

1,300

386,484

5,763

229,407

34,733

121,484

2,007

2,098

389,729

5,375

23, 24

23, 24

24

-

(800)

-

(800)

464 5,763

-

-

-

53,517

(877)

(79)

52,561

57,936

Consolidated

Actual

2009

($000)

176,155

Actual

2008

($000)

176,179

114,508

4,121

109,188

2,874

(1,300)

405,546

108,085

7,571

104,083

2,578

125

398,621

237,780

37,488

124,178

1,649

2,169

403,264

232,694

34,830

121,702

2,014

2,098

393,338

2,282 5,283

(800)

-

(800)

-

1,482

53,517

(877)

(79)

52,561

57,844

The accompanying notes form part of these financial statements.

30

S T A T E M E N T O F C H A N G E S I N E q u I T y

for the year ended 31 December 2009

Public equity as at 1 January

Comprehensive income for the year

Capital funding

Public Equity as at 31 December

Notes

24

24

24

Actual

2009

($000)

923,092

464

-

University

Budget

2009

($000)

977,540

5,763

-

Actual

2008

($000)

861,048

57,936

4,108

923,556 983,303 923,092

Consolidated

Actual

2009

($000)

923,186

Actual

2008

($000)

861,129

1,482

275

57,844

4,213

924,943 923,186

The accompanying notes form part of these financial statements.

31

ASSETS

Current Assets

Cash and cash equivalents

Trade and other receivables

Inventories

Biological - livestock

Other financial assets

Non-current assets held for sale

Total Current Assets

Non-current Assets

Investment property

Trade and other receivables

Other financial assets

Biological - forestry

Property plant and equipment

Total Non-Current Assets

Total Assets

LIABILITIES AND EquITy

Current Liabilities

Trade and other payables

Borrowings

Employee entitlements

Receipts in advance

Total Current Liabilities

Non-current Liabilities

Borrowings

Employee entitlements

Receipts in advance

Total Non-Current Liabilites

Total Liabilites

Public Equity

Total Liabilites and Public Equity

The accompanying notes form part of these financial statements.

32

B A L A N C E S H E E T

as at 31 December 2009

13

14

11

12

15

16

Notes

Actual

2009

($000)

University

Budget

2009

($000)

Actual

2008

($000)

47,967

30,772

1,435

3,425

13,551

2,694

99,844

42,906

27,300

1,160

3,150

74,516

-

-

42,795

22,784

1,120

3,459

35,165

1,933

107,256

17

12

15

14

18

2,365

125

15,172

661

942,625

960,948

1,060,792

3,272

2,000

29,500

499

994,346

1,029,617

1,104,133

2,480

1,523

19,290

559

921,217

945,069

1,052,325

Consolidated

Actual

2009

($000)

Actual

2008

($000)

49,126

32,022

1,435

3,425

14,401

2,694

103,103

44,438

23,832

1,120

3,459

35,165

1,933

109,947

2,365

125

14,690

661

943,181

961,022

1,064,125

2,480

148

19,314

559

921,587

944,088

1,054,035

21

22

19

20

26,214

811

19,333

39,187

85,545

21,658

305

20,000

29,500

71,463

22,152

405

20,126

32,027

74,710

20

21

22

24

23,470

27,209

1,012

51,691

137,236

923,556

1,060,792

24,347

24,000

1,020

49,367

120,830

983,303

1,104,133

24,586

28,889

1,048

54,523

129,233

923,092

1,052,325

27,003

811

19,449

40,213

87,476

22,990

405

20,211

32,721

76,327

23,470

27,224

1,012

51,706

139,182

924,943

1,064,125

24,560

28,914

1,048

54,522

130,849

923,186

1,054,035

CASHFLOwS FROM OPERATING ACTIVITIES

Cash was provided from:

Government grants

Student income

Other income

Interest on operating income

Trust funds

Cash was applied to:

Payments to employees and suppliers

Net GST movement

Interest paid

Net Cashflow from Operating Activities

CASHFLOwS FROM INVESTING ACTIVITIES

Cash was provided from:

Withdrawal of investments

Sale of fixed assets

Cash was applied to:

Purchase of investments

Purchase of fixed assets

Net Cashflow from Investing Activities

S T A T E M E N T O F C A S H F L O w S

for the year ended 31 December 2009

Notes

Actual

2009

($000)

University

Budget

2009

($000)

Actual

2008

($000)

Consolidated

Actual

2009

($000)

Actual

2008

($000)

178,593

119,588

99,799

4,971

1,241

404,192

177,119

110,492

98,165

5,750

1,908

393,434

174,343

122,926

92,388

6,710

1,729

398,096

8

363,483

(573)

1,664

364,574

39,618

353,643

2,148

-

355,791

37,643

329,586

15,316

2,047

346,949

51,147

181,252

120,619

100,259

5,043

1,241

408,414

176,980

124,113

96,059

6,834

1,729

405,715

367,075

(566)

1,665

368,174

40,240

336,960

15,767

2,274

355,001

50,714

27,749

584

28,333

9,000

3,500

12,500

515

176

691

141

60,911

61,052

(32,719)

55,000

55,000

27,006

36,950

63,956

(42,500) (63,265)

27,894

584

28,478

474

253

727

837

61,177

62,014

27,016

37,050

64,066

(33,536) (63,339)

The accompanying notes form part of these financial statements.

33

CASHFLOwS FROM FINANCING ACTIVITIES

Cash was provided from:

Capital injections

Cash was applied to:

Loan repaid

Net Cashflow from Financing Activities

Net Increase/(Decrease) in Cash Held

Net foreign exchange gains/(losses)

Cash brought forward

Ending Cash Carried Forward

Notes

Actual

2009

($000)

University

Budget

2009

($000)

Actual

2008

($000)

Consolidated

Actual

2009

($000)

Actual

2008

($000)

-

-

-

4,108

4,108

11

710

710

(710)

6,189

(1,017)

42,795

47,967

406

406

(406)

(5,263)

48,169

-

42,906

409

409

3,699

(8,419)

1,171

50,043

42,795

-

4,238

4,238

999

999

(999)

5,705

(1,017)

44,438

49,126

475

475

3,763

(8,862)

1,171

52,129

44,438

The GST (net) component of operating activities reflects the net GST paid and received with the Inland

Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

The accompanying notes form part of these financial statements.

34

N O T E S T O A N D F O R M I N G P A R T O F T H E

F I N A N C I A L S T A T E M E N T S

for the year ending 31 December 2009

Note 1. Statement of Accounting Policies

The Reporting Entity

Massey University was established as a university under the Massey University Act 1963 (founding legislation).

These financial statements have been prepared in accordance with the Crown Entities Act 2004 and Section 220 of the Education Act 1989. The financial statements have been prepared in accordance with NZ GAAP. They comply with New Zealand equivalents to IFRS, and other applicable financial reporting standards, as appropriate for public benefit entities.

Massey University comprises the following areas of significant activity for teaching, research and community service:

Colleges of

• Business

Creative Arts

Education

Humanities & Social Sciences

• Sciences.

The group consists of Massey University and its subsidiaries, Massey University Foundation (100% owned),

Massey Ventures Limited (100% owned), and Estendart Limited, E Centre Limited and MVLONE Limited (all

100% owned by Massey Ventures Limited). The reporting entity includes the afore mentioned group, New

Zealand School of Music (a joint venture 50% owned by Massey university) and associates owned by Massey

Ventures Limited - Magritek Holdings Limited(23.62%), Polybatics Limited(27.5%) and New Zealand Vet

Pathology (22.19%).

Massey University (and its subsidiaries) was established as a tertiary education provider and researcher.

Accordingly, Massey University (and its subsidiaries) have designated themselves as public benefit entities. All applicable public benefit entity exemptions have been adopted.

The financial statements of Massey University and group are for the year ended 31 December 2009. The financial statements were authorised for issue by Council on 20th April 2010.

Measurement Base

The financial statements have been prepared on a historical cost basis except the following assets carried at fair value: financial instruments held for trading, financial assets available for sale, biological assets and investment property and the revaluation of certain property, plant and equipment.

35

Accounting Policies

The following accounting policies which materially affect the measurement of financial performance and financial position have been applied.

Basis of Consolidation

The Consolidated Financial Statements are prepared from the financial statements of the University and all subsidiaries as at 31 December 2009 using the purchase method. Corresponding assets, liabilities, revenues, expenses and cash flows are added together on a line-by-line basis.

Massey University consolidates as subsidiaries in the consolidated financial statements all entities where Massey

University has the capacity to control their financing and operating policies so as to obtain benefits from the activities of the entity.

Any joint venture the University has an interest in is accounted for using the proportionate method of consolidation.

Massey University accounts for an investment in an associate in the group financial statement using the equity method.

Budget Figures

The budget figures are those approved by the Council at the beginning of the financial year.

The budget figures have been prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by the Council for the preparation of the financial statements.

Allocation of Overheads

Administrative and indirect teaching and research costs are allocated to significant activities on the basis of total equivalent full-time students (EFTS) in each college. Exceptions to this rule are allocated on the following basis:

(i) regional facilities management – by floor space

(ii) Recreation Centre – by internal full-time students

(iii) student services – by internal equivalent full-time students

(iv) annual leave – by general staff numbers for general staff and from academic department leave records for academic staff.

Revenues

Government grants are recognised as income on entitlement.

Student fees are recognised as income on entitlement.

Trust funds include interest and donations of a capital nature, are recognised as income when money is received,

36

or entitlement to receive money is established.

Income for research that is externally funded is recognised in the Cost of Services Summary (see Note 3) as

“Charges for services” on a percentage of completion basis. Research funds relating to incomplete portions of externally funded research activities at year end are included in the balance sheet as “Receipts in advance”.

Foreign Currencies

Both the functional and presentation currency of Massey University and its subsidiaries is New Zealand dollars, rounded to the nearest thousand dollars. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.

Cash and Cash Equivalents

Cash and cash equivalents represent funds held to meet short-term commitments and include cash in hand, deposits held at call with the bank, other short-term highly liquid investments and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

Trade and Other Receivables

Trade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

A provision for impairment of receivables is established when there is objective evidence that the University will not be able to collect all amounts according to the original term of the receivables.

Inventories

Inventories are valued at the lower of cost (using the first-in first-out basis) or net realisable value. All consumables are charged direct to expenditure.

Biological Assets

Biological assets are valued at fair value less estimated costs to sell, and agricultural produce is valued at fair value less estimated costs to sell at point of harvest. All consumables are charged direct to expenditure. Fair value is the market value at balance date.

37

Property Plant and Equipment

(i) Valuation

Asset Category

Land and buildings

Leasehold improvements

Equipment and furniture

Computers and research equipment

Motor vehicles

Aircraft

Library collection

Valuation By

Quotable Value New Zealand

Valued at historical cost

Valued at historical cost

Valued at historical cost

Valued at historical cost

Valued at historical cost

Valued at historical cost

Last Valuation

31 December 2008

Land is valued at fair market value.

Buildings (which include land improvements and reticulated services) are valued at fair market value or depreciated replacement cost on the basis of highest and best use.

Where the fair value of an asset can be determined by reference to the price in an active market for the same asset or a similar asset, the fair value of the asset is determined using this information. Where fair value of the asset is not able to be reliably determined using market-based evidence, depreciated replacement cost is considered to be the most appropriate basis for determination of the fair value.

The Optimised Depreciated Replacement Cost (ODRC) begins with assessing the replacement cost of the assets as the date of valuation less an allowance for any physical and economic obsolescence to date and for any over-design. The balance of the RC less all forms of obsolescence and over-design represents the fair value of the asset.

Highest and Best Use is defined as the most probable use of the asset that is physically possible, appropriately justified, legally permissible, financially feasible, and which results in the highest value.

Additions between valuations are recorded at cost.

Capital work in progress is valued on the basis of expenditure incurred and certified gross progress claim certificates up to balance date.

The level at which individual assets are capitalised as property plant and equipment is $2,000.

(ii) Depreciation

The depreciation rates used in the preparation of these statements are as follows:

Asset Class

Buildings

Leasehold improvements

Equipment and furniture

Computers and research equipment

Motor vehicles

Aircraft

Library collection (current use)

Depreciation Rate

1% - 7%

Method

Straight line

Lesser of 10% or life of lease Straight line

5% - 33% Straight line

25%

20%–25%

6%

10%

Straight line

Straight line

Straight line

Straight line

38

Land, permanently retained library collections, art collections and archives are not depreciated.

Leasehold improvements are depreciated based upon their estimated useful life and the term of lease.

Work in progress is not depreciated. The total cost of a project is transferred to the relevant asset class upon completion and then depreciated.

(iii) Crown-owned Assets

Crown owned land and buildings used by Massey University are included as part of Massey

University’s fixed assets. These were first recognised on 31 December 1989. Although legal title has not been transferred, Massey University has assumed all the normal risks and rewards of ownership, but may have to negotiate with the Crown for any sale.

In order to fairly and accurately record the value of all Land and Buildings occupied by Massey

University, it is necessary to incorporate the Crown owned land and buildings on the Massey

University Asset Register.

(iv) Impairment

The carrying values of property plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Massey University has three cash-generating units, being the three main campuses. Impairment of property plant and equipment is recognised when:

• replacement cost is identified as less than net book value the carrying amount exceeds its recoverable amount items of property plant and equipment become obsolete damage occurs to property plant and equipment.

An asset becomes surplus to requirements and is no longer used

(v) Disposal/Derecognition of Assets

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

Any gain or loss arising on derecognition on the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the Statement of

Comprehensive Income in the year the item is derecognised.

Intangible Assets

An intangible asset is recognised when it is probable that it will generate future economic benefit to Massey

University and the costs of the intangible asset can be measured reliably.

Internally generated software should be classified into a research phase and a development phase.

39

An intangible asset arising from development (or the development phase of an Internal project) shall be recognised only when the University can demonstrate:

• the technical feasibility of completing the intangible asset so that it will be available for use or sale:

• the availability of resources to complete the development: the ability to measure reliably the expenditure attributable to the intangible asset during its development

• how the asset will generate future economic benefits:

Costs that can be included in the capitalisation of internally developed software include:

Costs of staff seconded to such projects:

Costs to design, build, configure, test and document such systems:

Support fees payable before such systems are ready for use:

Software that is acquired separately or in a business combination are recorded at costs determined at the date of acquisition.

Amortisation of software is calculated using a straight line basis over four years and is reviewed annually for any impairment.

Employee Entitlements

Annual leave for academic and general staff has been accrued. In addition, an accrual has been made for retirement gratuities and long service leave for both academic and general staff. Both retirement gratuities and long-service leave have been accrued on the following basis.

Leave and gratuities that have vested in the employee (an entitlement has been established) have been measured at nominal value using remuneration rates current at reporting date. This is included as a current liability.

Leave and gratuities that have not yet vested in the employee (no entitlement has been established) have been measured using the present value measurement basis, which discounts expected future cash outflows. This is treated as a non-current liability.

Duty leave overseas for academic staff has not been accrued as this leave is a commitment subject to eligibility and is not an entitlement.

Sick leave has not been accrued as the University has a “Wellness Policy”, hence no sick leave is available to carry forward.

Obligations for contributions to superannuation schemes are accounted for as defined contribution schemes and are recognised as an expense in the statement of financial performance.

Goods and Services Tax (GST)

The financial statements are prepared on a GST exclusive basis, with the exception of accounts receivable and accounts payable.

40

Taxation

Tertiary education institutions are exempt from the payment of income tax as they are treated by the Inland

Revenue Department as charitable organisations. Accordingly, no charge for income tax has been provided for.

Massey University’s subsidiaries are also exempt from paying income tax.

Leases

Finance leases effectively transfer to Massey University substantially all the risks and benefits incidental to ownership of the leased item. These are capitalised at the lower of fair value of the asset or the present value of the minimum lease payments. The leased assets and corresponding lease liabilities are disclosed and the leased assets are depreciated over the period Massey University is expected to benefit from their use.

Operating lease payments, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating surplus in equal installments over the lease term.

Financial Instruments

Massey University classifies its financial assets into the following categories: financial assets at fair value through profit or loss, loans and receivables, and available for sale. Management determines the classification of its investments at initial recognition. Financial assets are initially measured at fair value.

The fair value of financial instruments traded in an active market is based on quoted market prices as at balance date. The quoted market price used is the current bid price.

Financial assets at fair value through profit and loss are classified in this category if acquired principally for the purpose of selling in the short term. Assets in this category are classified as current assets if they are expected to be realised within 12 months of balance date.

Financial assets in this category include Massey University Foundation’s managed fund.

Loan and Receivables

These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition they are measured at amortised cost using the effective interest method. Loans to third parties and receivables are classified as trade and other receivables in the balance sheet. Bank deposits with a maturity of more than 3 months are classified as loans and receivables.

Available for sale Financial Assets

Financial assets at fair value through equity are those financial assets that are not classified in either of the above categories. This category encompasses shares held for strategic purposes. After initial recognition these investments are measured at their fair value.

Massey University’s investment in its subsidiary and associate companies is held at cost.

At the end of each financial year Massey University assesses whether there is any impairment of its financial assets; any impairment is written off to expenses in the Statement of Comprehensive Income.

41

Borrowings

Borrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

Trade and Other Payables

Trade and other payables are carried at amortised cost. Due to their short-term nature they are not discounted.

They represent liabilities for goods and services provided to Massey University prior to the end of the financial year that are unpaid, and arise when Massey University becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and usually paid within 30 days of recognition.

Borrowing Costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

Investment Property

Any property held that is not held to meet service delivery objectives is classified as investment property.

Investment property is measured initially at its cost, including transaction costs.

After recognition, Massey University measures all investment property at fair value as determined annually.

Gains or losses arising from a change in fair value of an investment property are recognised in the Statement of

Comprehensive Income.

Joint Ventures

A joint venture is a contractual arrangement whereby two parties undertake an economic activity that is subject to joint control. For a jointly controlled entity Massey University recognises in its financial statements assets it controls, the liabilities and expenses it incurs, and the share of income that it earns from the joint venture.

Changes in Accounting Policy

There have been no changes in accounting policies and the policies have been applied on a basis consistent with prior years except for, adopting a new policy in respect of Intangible Assets and applying new standards that came into effect from 1 January 2009.

NZIAS 1 Presentation of Financial Statements now requires a statement of comprehensive income, resulting in changes to the presentation of information in the Income Statement and Statement of Changes In Equity. The

Income Statement has been replaced by the Statement of Comprehensive Income.

Amendments to NZ IFRS 7 requires the inclusion of a three level fair value disclosure hierarchy. The University has chosen not to show prior year comparatives, as allowed during the year of transition.

NZIAS 41 Agriculture has amended the discount rate for fair value calculations on long term biological assets, there has been no effect on the 2009 financial statements.

42

Standards, amendments and interpretations issued that are not yet effective and have not been early adopted

The following applicable standards have been issued at balance date, but are not yet effective and have not yet been adopted by Massey University:

NZ IFRS 9 will eventually replace NZ IAS 39. This replacement is happening in three phases. Phase 1 the classification and measurement of financial assets has been completed. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at cost or fair value, replacing the many different rules in NZ

IAS 39.

Note 2. (i) Government Grants

The Ministry of Education provides income to the University by way of a grant, which is recognised as income upon entitlement.

(ii) Cost of Operations

Staff related costs

- includes direct staff- related costs allocated to colleges, support services and regions.

Employee entitlements relating to actuarial calculation are shown separately.

Depreciation

- includes all depreciation on all assets held by the University.

Other direct costs

- includes all direct costs of operating and maintaining the University. It also includes the cost of research, including salaries and wages.

Note 3. Revenue Disclosure

Government Grants

Students

Other

Student Fees

Domestic students

International students

Charges for Services

Research

Other

Interest

Trust funds

Other gains/(losses)

Total Revenue

Notes

25

4

University

Actual

2009

($000)

Actual

2008

($000)

122,481

51,034

173,515

78,567

34,799

113,366

120,668

52,939

173,607

71,093

35,994

107,087

69,088

39,892

108,980

4,037

2,874

(2,105)

400,667

63,564

40,292

103,856

7,467

2,578

509

395,104

Consolidated

Actual

2009

($000)

Actual

2008

($000)

124,266

51,889

176,155

79,588

34,920

114,508

122,668

53,511

176,179

71,959

36,126

108,085

69,088

40,100

109,188

4,121

2,874

(1,300)

405,546

63,564

40,519

104,083

7,571

2,578

125

398,621

43

Note 4. Other Gains and (Losses)

Livestock fair value gains/(losses)

Forestry fair value gains/(losses)

Disposal of equipment gains/(losses)

Changes in fair value of assets held for sale gains/(losses)

Changes in fair value of investment property gains/(losses)

Fair value managed funds through profit and loss gains/(losses)

Fair value gains/(losses) on shares

Foreign exchange gains/(losses)

Total Gains/(Losses)

Note 5. Staff-Related Costs

Salaries and wages

Superannuation

Long service leave and retirement allowance

Other

Total

Note 6. Finance Costs

Interest expenses

Total Finance Costs

Notes

14

14

16

17

University

2009

($000)

(171)

2008

($000)

229

(325)

-

(1,017)

(2,105)

102

(386)

(193)

(115)

1,171

509

-

-

60

(159)

-

(792)

Consolidated

2009

($000)

(171)

2008

($000)

229

805

(325)

(1,017)

(1,300)

102

(386)

(193)

(115)

(384)

-

1,171

125

60

(159)

-

(792)

University

2009

($000)

222,973

7,251

2008

($000)

212,537

6,158

(1,989)

5,671

233,906

4,890

5,822

229,407

Consolidated

2009

($000)

226,785

7,287

2008

($000)

215,682

6,186

(1,989)

5,697

237,780

4,890

5,936

232,694

University

2009

($000)

1,648

1,648

2008

($000)

2,007

2,007

Consolidated

2009

($000)

1,649

1,649

2008

($000)

2,014

2,014

44

Note 7. Other Direct Cost Disclosures

The Net Surplus/(Loss) is After Charging:

Audit fees for annual report

Other services provided by principal auditor: PBRF Audit

Internal audit fees

Bad debts written off

Increase/(reduction) in provision for bad debts

Rental expense on operating leases

Scholarships

Energy

Repairs and maintenance

Travel and accommodation

Computing & telecommunications

Advertising/marketing/public relations

Contracted serviecs

Other operating expenses

Total Other Expenses

University

2009

($000)

160

2008

($000)

156

12,625

12,098

11,106

3,975

22,932

37,060

124,293

5,076

12,374

6,280

19

154

284

150

15,176

12,029

10,230

3,884

20,422

37,050

121,484

5,029

10,492

6,366

8

194

522

(74)

Note 8. Reconciliation of the Net Surplus on Operations with the Net Cashflows from Operating

Activities

Surplus /(Deficit) on Operations

Notes

University

2009

($000)

2008

($000)

1,264 5,375

Consolidated

2009

($000)

2,282

2008

($000)

5,283

Add Non-Cash Items:

Depreciation

Asset disposals

Other (gains)/losses - forestry fair value

Other (gains)/losses - livestock fair value

Impairment on investments - other

Impairment on investment property

Bad debts

Provision for doubtful debts

Foreign exchange (gains)/losses

FV shares direct to equity - no balance in reserve

(Decrease)/increase in annual leave provisions

Total Non-Cash Items

Movements In Working Capital:

Decrease/(increase) in prepayments

Decrease/(increase) in trade and other receivables

Decrease/(increase) in stocks and biological assets

Increase/(decrease) in accounts payable

Increase/(decrease) in receipts in advance

Total Movement in working Capital

Net Cash Flow from Operating Activities

17

7

12

4

21

18

4

4

4

12

13, 14

284

150

1,017

325

(1,680)

37,442

37,387

386

(102)

171

(611)

115

(2,458)

(5,964)

(452)

2,662

7,124

912

39,618

522

(74)

(1,171)

285

4,879

40,587

34,733

159

(60)

(229)

751

792

79

687

393

1,894

2,132

5,185

51,147

285

150

1,017

325

(1,680)

36,897

37,488

411

(102)

171

(1,283)

115

(2,458)

(6,080)

(426)

2,569

7,456

1,061

40,240

522

(74)

(1,171)

285

4,879

40,743

34,830

345

(60)

(229)

624

792

79

1,985

319

234

2,071

4,688

50,714

45

Consolidated

2009

($000)

229

2008

($000)

207

12,667

12,192

11,216

3,976

22,932

35,676

124,178

5,927

12,385

6,346

19

158

285

170

15,194

12,123

10,336

3,905

20,598

35,700

121,702

5,885

10,633

6,445

8

194

529

(55)

Note 9. Summary of Financial Assets and Liabilities

Classification of

Financial Assets & Liabilities

Loan and

Receivables

Assets at Fair

Value through

Profit & Loss

University 2009

Assets Available for Sale

Other Liabilities at

Amortised Cost

FINANCIAL ASSETS

Cash & cash equivalents

Trade & other receivables

Prepayments

Loans & loans to related parties

Short-term deposits with maturities of

4-12 months

Term deposits maturing between 1 and

5 years

Shares in subsidiaries

Unlisted shares

Funds invested in Massey University

Foundation

Shares

Fair value through income statement - managed funds

Total Financial Assets

-

-

-

-

47,967

22,701

8,071

125

13,551

-

-

92,415

-

-

-

11,089

-

-

11,089

-

-

-

-

-

1,912

607

-

-

1,564

-

4,083

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

FINANCIAL LIABILITIES

Trade & other payables

Accrued expenses

Borrowings: term loans

Total Financial Liabilities

-

-

-

-

-

-

-

-

-

-

-

-

13,946

12,188

24,281

50,415

Total

-

1,912

607

11,089

47,967

22,701

8,071

125

13,551

1,564

-

107,587

13,946

12,188

24,281

50,415

46

Classification of

Financial Assets & Liabilities

FINANCIAL ASSETS

Cash & cash equivalents

Trade & other receivables

Prepayments

Loans & loans to related parties

Short-term deposits with maturities of

4-12 months

Term deposits maturing between 1 and

5 years

Shares in subsidiaries

Unlisted shares

Funds invested in Massey University

Foundation

Shares

Fair value through income statement - managed funds

Total Financial Assets

FINANCIAL LIABILITIES

Trade & other payables

Accrued expenses

Borrowings: term loans

Total Financial Liabilities

Loan and

Receivables

108,247

-

-

-

-

-

42,795

17,171

5,613

1,523

35,165

5,980

-

-

-

-

Assets at Fair

Value through

Profit & Loss

University 2008

Assets Available for Sale

Other Liabilities at

Amortised Cost

-

-

10,269

-

-

10,269

-

-

-

-

-

-

-

-

-

-

1,923

-

3,041

510

608

-

-

-

-

-

-

-

-

-

-

13,533

8,596

24,991

47,120

-

-

-

-

-

-

-

-

-

-

-

-

Total

510

608

10,269

1,923

-

121,557

42,795

17,171

5,613

1,523

35,165

5,980

13,533

8,596

24,991

47,120

47

Classification of

Financial Assets & Liabilities

FINANCIAL ASSETS

Cash & cash equivalents

Trade & other receivables

Prepayments

Loans

Short-term deposits with maturities of

4-12 months

Term deposits maturing between 1 and

5 years

Shares in subsidiaries

Unlisted shares

Funds invested in Massey University

Foundation

Shares

Fair value through income statement - managed funds

Total Financial Assets

FINANCIAL LIABILITIES

Trade & other payables

Accrued expenses

Borrowings: term loans

Total Financial Liabilities

Loan and

Receivables

49,126

23,951

8,071

125

14,401

132

-

-

-

-

-

95,806

-

-

-

-

Assets at Fair

Value through

Profit & Loss

Consolidated 2009

Assets Available for Sale

Other Liabilities at

Amortised Cost

-

11,711

11,711

-

-

-

-

-

-

-

-

-

-

-

-

-

1,283

-

-

-

-

-

-

-

-

1,564

-

2,847

-

-

-

14,711

12,212

24,281

51,204

-

-

-

-

-

-

-

-

-

-

-

-

Total

49,126

23,951

8,071

125

14,401

132

-

1,283

-

1,564

11,711

110,364

14,711

12,212

24,281

51,204

48

Classification of

Financial Assets & Liabilities

FINANCIAL ASSETS

Cash & cash equivalents

Trade & other receivables

Prepayments

Loans

Short-term deposits with maturities of

4-12 months

Term deposits maturing between 1 and

5 years

Shares in subsidiaries

Unlisted shares

Funds invested in Massey University

Foundation

Shares

Fair value through income statement - managed funds

Total Financial Assests

FINANCIAL LIABILITIES

Trade & other payables

Accrued expenses

Borrowings: term loans

Total Financial Liabilities

Loan and

Receivables

109,688

-

-

-

-

-

44,438

18,219

5,613

148

35,165

6,105

-

-

-

-

Assets at Fair

Value through

Profit & Loss

Consolidated 2008

Assets Available for Sale

Other Liabilities at

Amortised Cost

-

10,259

10,259

-

-

-

-

-

-

-

-

-

-

-

-

-

1,027

-

-

-

-

-

-

-

1,923

-

2,950

-

-

-

14,359

8,608

24,965

47,932

-

-

-

-

-

-

-

-

-

-

-

-

Total

-

1,027

-

1,923

10,259

122,897

44,438

18,219

5,613

148

35,165

6,105

14,359

8,608

24,965

47,932

49

Note 9A. Fair value hierarchy disclosures

For those instruments recognised at fair value on the balance sheet, fair values are determined according to the following hierarchy:

• Quoted Market Price - Financial Instruments with quoted prices for identical instruments in active markets

• Valuation technique using observable inputs - Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in an inactive market and financial instruments valued using models where significant inputs are observable

• Valuation techniques with significant non-observable inputs - Financial instruments valued using models where one or more significant inputs are not observable

The following table analyses the basis of the valuation classes of financial instruments measured at fair value on the balance sheet

University 2009

Classification of

Financial Assets & Liabilities Total quoted market price

($000)

Observable inputs

($000)

Significant non- observable inputs

($000)

FINANCIAL ASSETS

Shares

Funds invested in Massey University Foundation

1,564

11,089 -

1,564

11,089 -

-

Classification of

Financial Assets & Liabilities

FINANCIAL ASSETS

Shares

Managed funds

Total

1,564

11,711

Consolidated 2009

quoted market price

($000)

Observable inputs

($000)

Significant non- observable inputs

($000)

-

1,564

11,711 -

-

50

Note 10. Shares in Subsidiaries

Name of entity:

Principal activity:

Massey Ventures Limited

Holding Company

Ownership: 100%

Contribution:

$47,731 ( 2008: $79,000 )

Fair Value of Investment:

$1,586,335

The fair value of Massey University’s investment in Massey Ventures Limited as approximated by the net assets of the company as at 31 December 2009: $1,586,335. As at 31 December 2008: ($162,000).

Name of entity:

Principal activity:

Massey University Foundation

Investment

Ownership: 100%

Contribution:

$689,000 { 2008: ($642,000) }

Fair Value of Investment:

$11,062,000

The fair value of Massey University’s investment in Massey University Foundation as approximated by the net assets of the entity as at 31 December 2009: $11,062,000. As at 31 December 2008: $10,269,000.

Note 11. Cash and Cash Equivalents

Cash at bank and in hand

Short-term deposits with maturities of 3 months or less

Total Cash and Cash Equivalents

University

2009

($000)

2008

($000)

3,967

44,000

47,967

7,212

35,583

42,795

Consolidated

2009

($000)

2008

($000)

4,576

44,550

49,126

7,916

36,522

44,438

The carrying value of short-term deposits with maturity dates of three months or less approximates their fair value. Refer to Note 15 for weighted average effective rates for cash and cash equivalents.

United States of America

Australia

Great Britain

Euro's

Yen

All currencies shown as valued in NZD as at 31 December.

2009

($000)

1,728

268

94

3

12

2008

($000)

10,717

26

13

310

-

51

Note 12. Trade and Other Receivables

Trade debtors

Other amounts receivable

Related parties receivables

Prepayments

Loans

Loans to related parties

Less provision for doubtful debts

University

2009

($000)

14,774

2008

($000)

13,718

8,571

195

8,071

125

31,736

-

3,942

200

5,613

148

1,375

24,996

(839)

30,897

(689)

24,307

Consolidated

2009

($000)

16,106

2008

($000)

14,832

8,736

-

8,071

125

33,038

-

4,108

-

5,613

148

-

24,701

(891)

32,147

(721)

23,980

Less non-current portion:

Loans

Loans to related parties

Total non-current portion

Current Portion

125

-

125

30,772

148

1,375

1,523

22,784

125

-

125

32,022

148

-

148

23,832

Loans to related parties are on call and at 0% interest and therefore approximates their fair value.

The carrying value of trade and other trade receivables (excluding loans to related parties) approximates their fair value.

Trade debtors overdue, whose payment has not been negotiated and not impaired are as follows:

> 3 Months

University

2009

($000)

2008

($000)

1,649 1,474

Consolidated

2009

($000)

2008

($000)

1,714 1,474

As at 31 December 2009 and 2008, all overdue receivables have been assessed for impairment and appropriate provisions applied. Massey University does not hold any collateral as security or other credit enhancements over receivables that are past due or impaired.

Movements in the provision for impairment of receivables are as follows:

At 1 January

Additions made during the year

Receivables written off during the year

At 31 December

University

2009

($000)

689

2008

($000)

763

150

-

839

(74)

-

689

Consolidated

2009

($000)

721

2008

($000)

776

170

-

891

(55)

-

721

52

Note 13. Inventories

Material and stores

Total

University

2009

($000)

1,435

1,435

2008

($000)

1,120

1,120

Consolidated

2009

($000)

1,435

1,435

2008

($000)

1,120

1,120

The carrying amount of inventories identified as held for distribution as at 31 December 2009 amounted to

$ 1,065,089 (2008, $687,337 ); The carrying amount of inventories pledged as securities for liabilities is nil (2008 nil).

Note 14. Biological Assets

Livestock

Opening balance

Increase due to purchase

Gains/(losses) arising from changes in fair value

Decreases due to sales

Closing Balance

Forestry

Opening balance

Gains/(losses) arising from changes in fair value

Closing Balance

Current

Non-current

Total

University

2009

($000)

2008

($000)

3,459

417

(171)

(280)

3,425

3,580

286

229

(636)

3,459

3,425

661

4,086

559

102

661

3,459

559

4,018

499

60

559

Consolidated

2009

($000)

2008

($000)

3,459

417

(171)

(280)

3,425

3,580

286

229

(636)

3,459

3,425

661

4,086

559

102

661

3,459

559

4,018

499

60

559

Massey University owns 106 hectares of pinus radiata forest which are at varying stages of maturity.

No forests have been harvested in this period (2008: nil).

Forestry is valued as at 31 December at fair value, using a model supplied by an independent valuer.

Fair Value is the market value less estimated point of sale costs.

Massey University is not materially exposed to financial risks from changing timber prices.

Livestock has been valued at market value.

53

Note 15. Other Financial Assets

Current Portion

Loans and receivables:

Short-term deposits with maturities of 4-12 months

Total Current Portion

Non-Current Portion

Loans and receivables

Fair value through equity - shares

Fair value through income statement - managed fund

Unlisted shares

Funds invested in Massey University Foundation

Shares in subsidiaries

Total Non-Current Portion

University

2009

($000)

2008

($000)

13,551

-

13,551

-

35,165

35,165

1,564

-

-

607

11,089

1,912

15,172

5,980

1,923

-

608

10,269

510

19,290

Consolidated

2009

($000)

14,401

-

14,401

2008

($000)

-

35,165

35,165

132

1,564

11,711

1,283

-

14,690

-

6,105

1,923

10,259

1,027

-

-

19,314

There were no impairment provisions for other financial assets.

Unlisted shares: No market exists for the unlisted shares and these are shown at cost because either the fair value of the investment cannot be determined using a standardised valuation technique or due to cost not being materially different to fair value.

Maturity analysis and effective interest rate:

Short-term deposits with maturities of 3 months or less

Weighted average interest rate

Short-term deposits with maturities of 4-12 months

Weighted average interest rate

Term deposits maturing between 1 and 2 years

Weighted average interest rate

Term deposits maturing after 2 years but less than 5 years

Weighted average interest rate

University

2009

($000)

2008

($000)

44,000

3.35%

13,551

6.33%

0.00%

-

0.00%

-

57,551

35,583

4.31%

35,165

8.25%

5,980

8.54%

0.00%

-

76,728

Consolidated

2009

($000)

2008

($000)

44,100

3.35%

14,401

6.23%

132

8.52%

0.00%

-

58,633

36,522

4.38%

35,165

8.25%

6,105

8.52%

0.00%

-

77,792

The fair values of Term Deposits are as follows.

Fair value on Term Deposits (>3 months):

Fair value as at 31 December

University

2009

($000)

13,648

2008

($000)

42,499

Consolidated

2009

($000)

13,648

2008

($000)

42,499

54

Note 16. Non-Current Assets Held for Sale

Non-Current Assets Held for Sale are:

Air craft

Land

Buildings

Total Non-Current Assets Held for Sale

University

2009

($000)

954

2008

($000)

-

905

835

2,694

979

954

1,933

Consolidated

2009

($000)

954

2008

($000)

-

905

835

2,694

979

954

1,933

The Council approved the sale of Ruawharo Campus on 7th July 2006, the site was still used as a campus until early 2007. To date this property has been subject to two conditional offers, both of which failed to go unconditional. This property remains for sale and is currently being marketed.

On 5th September 2008 the Council approved the replacement of the University’s fleet of aircraft. To date two aircraft have been sold with the balance of the fleet being actively marketed.

Note 17. Investment Property

Balance at 1 January

Fair value gains/(losses) on valuation

Balance at 31 December

University

2009

($000)

2008

($000)

2,480

(115)

2,365

3,272

(792)

2,480

Consolidated

2009

($000)

2008

($000)

2,480

(115)

2,365

3,272

(792)

2,480

Massey University investment properties are valued annually at fair value effective 31 December.

All investment properties were valued based on open market evidence.

Land and Buildings were valued by Kerry Stewart FPINZ, FPINZ of Quotable Value New Zealand Limited.

55

56

57

Impairment Losses of $800,000 (2008: $877,652) have been recognised for impairment of operational buildings that either will be or were demolished or removed to make way for future campus developments. Massey

University does not have any financing leases.

Asset values included in the balance sheet as at 31 December 2009 include all land and buildings as occupied and utilised by Massey University. The exception to this is the land on Riverside Farm (leased from Sydney

Campbell Foundation).

Legal ownership of land and buildings is detailed as follows (at balance sheet values).

i) Massey University owned ii) Crown owned (includes buildings on Crown owned land)

2009

($000)

89,428

90,814

180,242

Land

2008

($000)

104,821

75,500

180,321

Buildings

2009

($000)

374,716

253,547

2008

($000)

386,730

252,519

628,263 639,249

Land and Buildings were valued by Kerry Stewart FPINZ, FPINZ of Quotable Value New Zealand Limited.

The BNZ holds a registered mortgage over the Albany Campus, please refer to Note 20.

Note 19. Trade and Other Payables

Trade payables

Other payables

Accrued expenses

Amounts due to related parties

Building retentions

Total Trade payables

University

2009

($000)

373

13,573

12,188

80

-

26,214

2008

($000)

297

13,184

8,596

52

23

22,152

Consolidated

2009

($000)

878

13,833

12,212

80

-

27,003

Trade and other payables are non-interest bearing and are normally settled on 30 day terms; therefore the carrying value of trade and other payables approximates their fair value.

2008

($000)

968

13,391

8,608

23

-

22,990

Note 20. Borrowings

Current

Term loans

Total Current Borrowings

Non-current

Term loans

Total Non-Current Borrowings

University

2009

($000)

2008

($000)

811

811

405

405

23,470

23,470

24,586

24,586

Consolidated

2009

($000)

2008

($000)

811

811

405

405

23,470

23,470

24,560

24,560

Fixed-Rate Debt: Massey University Debt of $24,281,317 is issued at fixed rates of interest against which the BNZ holds a registered mortgage over the Albany Campus, which is included in Note 18.

58

Maturity analysis and effective interest rate:

Less than one year

Weighted average interest rate

Later than one year but less than 20 years

Weighted average interest rate

Total Borrowings

Fair value on borrowings:

The fair values of non-current borrowings are as follows:

Fair Value as at 31 December

Note 21. Employee Entitlements

University

2009

($000)

2008

($000)

811

6.70%

23,470

6.70%

24,281

2009

($000)

23,533

405

6.71%

24,586

6.71%

24,991

University

2008

($000)

25,220

Consolidated

2009

($000)

2008

($000)

811

6.70%

23,470

6.70%

24,281

405

6.71%

24,560

6.71%

24,965

Consolidated

2009

($000)

23,533

2008

($000)

25,220

Accrued pay

Annual leave

Long service leave

Retirement gratuities

Total

Current

Non-current

Total

University

2009

($000)

4,011

2008

($000)

1,929

13,881

949

27,701

46,542

19,333

27,209

46,542

17,357

1,404

28,325

49,015

20,126

28,889

49,015

Consolidated

2009

($000)

4,014

2008

($000)

1,933

13,994

964

27,701

46,673

19,449

27,224

46,673

17,438

1,429

28,325

49,125

20,211

28,914

49,125

The long service leave and retirement gratuities were independently assessed as at 31 December 2009 by

Mr J Eriksen FIA, a Fellow of the New Zealand Society of Actuaries with Eriksen & Associates.

An actuarial valuation involves the projection, on a year by year basis of the long service and retirement gratuities liabilities, based on accrued services, in respect of current employees.

These liabilities are estimated in respect of their incidents according to assumed rates of depth, disablement,resignation and retirement allowing for assumed rates of salary progression. Of these assumptions, the discount, salary progression and resignation rates are most important. The projected cash flow is then discounted back to the valuation date at the valuation discounted rates.

Discount rates range from 4.29% to 6.93% for 9 years and beyond (2008: 4.05% to 5.13%).

Salary progression allows for a 2.75% increase per year (2008: 2.75%).

The demographic assumptions were based on the experience of the Government Superannuation Fund.

59

Note 22. Receipts in Advance

Student fees

Receipts other

Total Receipts in Advance

Current

Non-current

Total Receipts in Advance

University

2009

($000)

13,321

2008

($000)

12,607

26,878

40,199

20,468

33,075

39,187

1,012

40,199

32,027

1,048

33,075

Consolidated

2009

($000)

13,905

2008

($000)

12,935

27,320

41,225

20,834

33,769

40,213

1,012

41,225

32,721

1,048

33,769

The current portion of receipts in advance is expected to be recognised as income during 2010.

The carrying value of current receipts in advance approximates their fair value.

The non-current portion of receipts in advance was discounted to net present value and approximates their fair value.

Note 23. Asset Revaluation Reserves

Land & Buildings

Balance 1 January

Revaluation

Impairment

Balance 31 December

University

2009

($000)

2008

($000)

390,145

-

(800)

389,345

337,505

53,517

(877)

390,145

Consolidated

2009

($000)

2008

($000)

390,145

-

(800)

389,345

337,505

53,517

(877)

390,145

Note 24. Public Equity

Notes

25

23

Opening

Balance

01.01.09

($000)

17,748

390,145

University 2009

Movements

($000)

(800)

-

Operating

Surplus/

Deficit

($000)

705

-

Trust funds

Asset revaluation reserves

Special reserves

Fair value to equity

General reserves

Total

26,964

488,235

-

923,092 (800)

-

-

-

-

559

1,264

Closing

Balance

31.12.09

($000)

18,453

389,345

26,964

488,794

-

923,556

Opening

Balance

01.01.08

($000)

17,268

337,505

University 2008

Movements

($000)

-

52,640

Operating

Surplus/

Deficit

($000)

480

-

26,973

79

479,223

861,048

(9)

(79)

4,117

56,669

4,895

-

5,375

-

Closing

Balance

31.12.08

($000)

17,748

390,145

26,964

488,235

-

923,092

60

Trust funds

Asset revaluation reserves

Special reserves

Fair value to equity

General reserves

Total

Notes

25

23

Opening

Balance

01.01.09

($000)

17,748

390,145

Consolidated 2009

Movements

($000)

Operating

Surplus

Deficit

($000)

(800)

705

-

Closing

Balance

31.12.09

($000)

18,453

389,345

27,054

-

488,239

923,186

275

(525)

-

-

1,577

2,282

-

27,054

-

490,091

924,943

Note 25. Trust Funds

Helen Akers Bequest

MU Common Fund

Sasakawa Foundation

Delahunty Trust

Norwood Trust

A G East Memorial Trust

Tony Drakeford Memorial Trust

Other Trusts

Total Trust Funds

Opening

Balance

01.01.09

($000)

771

10,471

5,753

569

75

42

67

-

17,748

University 2009

Movement

($000)

(42)

729

(10)

20

3

-

705

-

5

Closing

Balance

31.12.09

($000)

729

11,200

5,743

589

78

42

72

-

18,453

Opening

Balance

01.01.08

($000)

17,268

337,505

Consolidated 2008

Movements

($000)

Operating

Surplus

Deficit

($000)

-

52,640

480

-

Closing

Balance

31.12.08

($000)

17,748

390,145

26,973

79

479,304

861,129

81

(79)

4,179

56,821

4,756

5,236

-

27,054

-

488,239

923,186

Opening

Balance

01.01.08

($000)

836

9,995

5,747

525

69

17,268

-

26

70

University 2008

Movement

($000)

(65)

476

6

44

6

16

(3)

-

480

Closing

Balance

31.12.08

($000)

771

10,471

5,753

569

75

42

67

-

17,748

Helen Akers Bequest

MU Common Fund

Sasakawa Foundation

Delahunty Trust

Norwood Trust

A G East Memorial Trust

Tony Drakeford Memorial Trust

Other Trusts

Total Trust Funds

Opening

Balance

01.01.09

($000)

Consolidated 2009

Movement

($000)

Closing

Balance

31.12.09

($000)

771

10,471

5,753

569

75

42

(42)

729

(10)

20

3

-

67

-

17,748

5

-

705

729

11,200

5,743

589

78

42

72

-

18,453

Opening

Balance

01.01.08

($000)

Consolidated 2008

Movement

($000)

Closing

Balance

31.12.08

($000)

836

9,995

5,747

525

69

26

(65)

476

6

44

6

16

70

17,268

-

(3)

-

480

771

10,471

5,753

569

75

42

67

-

17,748

Although these items are trusts, Massey University has control over them and obtains benefits associated with ownership of them. They have therefore been treated as equity in the Parent and Consolidated Balance Sheet.

Details of trust funds are as follows:

61

Helen Akers Bequest -

funds bequeathed from the Estate of Helen Akers to provide scholarships for students.

Massey University Property Foundation -

foundation established to support the Department of Finance,

Banking and Property Studies and the Real Estate industry.

Massey Univerisity Common Fund -

pool of funds used for holding and paying out scholarships and prize monies to students.

Sasakawa Foundation -

scholarships provided from the Sasakawa Foundation, Japan, for students.

Delahunty Trust -

trust fund established to provide research grants to foster primary industry accounting research to students living in New Zealand.

Norwood Trust -

prizes for students for achievement in trade courses.

A G East Memorial Trust -

educational scholarships for technical and trade courses.

Tony Drakeford Memorial Trust -

educational scholarships for commerce courses.

Note 26. Joint Venture

Massey University’s interest in the New Zealand School of Music (NZSM) joint venture is accounted for as a jointly controlled operation.

Massey University’s interest in NZSM is as follows:

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Income

Expense

Consolidated

2009

($000)

1,973

2008

($000)

1,799

324

1,082

15

3,992

3,726

163

853

25

3,818

3,394

Joint Venture Commitment and Contingencies:

There were no commitments or contingent liabilities arising from Massey University’s involvement in the joint venture.

62

Note 27. Council Members’ Fees Paid During 2009 Year

R Ballard

S Kos

S Baragwanath

R Fifield

N Gould

C Kelly

B Heap

N Love

M Mullins

A Paterson

K Pearce

A Scott

A Sorenson

R Springett

B Ullrich

Total

Note 28. Related Party Information

Members of Council

During the year Massey purchased goods and services from or sold goods and services to:

Byrd Services Limited , of which Mr N Gould, a Councillor of Massey University has an interest: Supplied goods and services to Massey University at a cost of nil (2008: $34,143) amount owing at year end nil

(2008: nil)

Professor Sir N Love, a Councillor of Massey University, is a trustee and a director of the following organisations:

-

-

Massey supplied goods and services to Te Papa Tongarewa at a cost of $3,316 (2008: nil), amount owing at year end nil (2008: nil)

Wellington 10ths Trust supplied services at a cost of $337,500 (2008: $337,500) with nil (2008: nil) owing by Massey University at the end of the year.

Land Corp Farming Ltd, of which Mr C Kelly, a Councillor of Massey University, is CEO: Massey supplied goods and services at a cost of $1,494 (2008: $30,431), amount owing at year end nil (2008: nil)

Polybatics Ltd, of which Mr C Kelly, a Councillor of Massey University, is a director: Massey supplied goods and services at a cost of $100,211 (2008: nil), amount owing at year end $67,500 (2008: nil)

Agricultural ITO, of which Mr C Kelly, a Councillor of Massey University, is a director: Massey supplied goods and services at a cost of $3,924 (2008: $1,360), amount owing at year end nil (2008: nil)

NZ Landcare Trust, of which Mrs M Mullins, a Councillor of Massey University, is a trustee: Massey supplied goods and services at a cost of nil (2008: $163,574), amount owing at year end nil (2008: nil)

4,640

4,960

-

-

85,030

4,160

2,400

1,920

8,960

-

2008

8,960

11,200

3,520

3,840

25,350

5,120

1,600

4,320

3,680

5,120

80,870

2,240

-

1,760

8,960

4,320

2009

25,350

11,200

2,720

-

640

8,960

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• FCS Group Limited, of which Mr B Ullrich, a Councillor of Massey University, is a director: Supplied goods and services to Massey at a cost of $2,080 (2008: nil), amount owing at year end nil (2008: nil)

All goods were supplied under normal commercial terms.

There were no transactions between Massey University and other Councillors.

Key Management Personnel

University

2009

($000)

2008

($000)

Consolidated

2009

($000)

2008

($000)

Remuneration

Short-term employment benefits

Post-employment benefits

Council fees

3,532,115

182,888

80,870

3,795,873

3,363,162

151,995

85,030

3,600,187

3,532,115

182,888

143,070

3,858,073

3,363,162

151,995

140,130

3,655,287

Key personnel include the Council, Vice-Chancellor and senior executive who report directly to the Vice-

Chancellor.

Number of Staff Remuneration

Bands in $000

100 - 109

110 - 119

120 - 129

200 - 209

210 - 219

220 - 229

230 - 239

240 - 249

250 - 259

260 - 269

270 - 279

280 - 289

130 - 139

140 - 149

150 - 159

160 - 169

170 - 179

180 - 189

190 - 199

2

-

2

-

7

1

7

2

1

547

9

8

4

22

10

50

35

226

106

55

The above table does not include the Vice Chancellors income, which is reported directly to the SSC in their annual return.

64

Material Related Party Transactions

Professor J Chapman, a Pro Vice Chancellor of Massey University has an interest in Sterling Human Resources

Ltd: - supplied goods and services to Massey University at a cost of $80,115 (2008: $73,224). Amount outstanding at balance date was nil (2008: nil)

Steve Maharey, Vice Chancellor of Massey University has an indirect interest in Flicka Ltd: - supplied goods and services to Massey University at a cost of $9,500(2008: nil). Amount outstanding at balance date was nil (2008: nil)

Professor J Raine, Regional Chief Executive Manawatu and International, has an interest in REANNZ Limited:

- supplied goods and services to Massey University at a cost of $296,496 (2008:nil) and Massey supplied them goods and services of $13,923 (2008:nil). Amount outstanding at balance date was nil (2008: nil).

Professor I Warrington, Deputy Vice-Chancellor and Regional Chief Executive Manawatu, is a Director of Bio

Commerce Centre: - supplied goods and services to Massey University services at a cost of $75,860 (2008:$27,147) and Massey supplied them goods and services of $24,316 (2008:$24,147). Amount outstanding at balance date was nil (2008: nil).

All goods were supplied under normal commercial terms.

There were no other transactions between Massey University and key personnel.

The Crown

The Government influences the roles of the University as well as being a major source of revenue.

Creative Campus Enterprises Limited

Creative Campus Enterprises Limited ceased trading as at the 31st December 2007; the company was wound up and removed from the Companies Office Register in 2008.

New Zealand School of Music (NZSM) Limited

During the year Massey University entered into transactions with NZSM Limited. All transactions were conducted on an arm’s length basis using commercial terms.

Massey University charged NZSM Limited $2,225,549(2008: $2,015,906), including GST for rental, postage, salaries, computing, communications, printing, payroll and financial services. The amount owed to Massey

University by NZSM Limited at the year end was $149,347 (2008: $4,675), payable under normal trading terms.

NZSM Limited charged Massey University $2,000 (2008: $172,000), including GST for music performances and other music-related services. The amount owed to NZSM Limited by Massey University at the end of the year was nil (2008: $80,000), payable under normal trading terms.

Massey University Foundation (MUF)

During the year Massey University received a net contribution from Massey University Foundation of $727,574

(2008 net loss: $168,000), being a return on funds managed by Massey University Foundation.

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Massey Ventures Limited (MVL)

During the year Massey University entered into no transactions with Massey Ventures Limited (MVL). A loan from Massey University of $1,402,038, was converted into share capital.

Massey Ventures Limited has a loan from Massey University of nil (2008: $1,375,503).

Estendart Limited

During the year Massey University entered into transactions with Estendart Limited. All transactions were conducted on an arm’s length basis using commercial terms.

Massey University charged Estendart Limited $393,280 (2008: $287,382), including GST for rental, postage, insurance and fixed assets. The amount owed to Massey University by Estendart Limited as the year end was

$ 22,449 (2008: nil), payable under normal trading terms.

Estendart Limited charged Massey University $42,762 (2008: $195,276), including GST for professional services.

The amount owed to Estendart Limited by Massey University at the end of the year was nil (2008: $12,055), payable under normal trading terms.

E-Centre Limited

During the year Massey University entered into transactions with E-Centre Limited. All transactions were conducted on an arm’s length basis using commercial terms.

Massey University charged E-Centre Limited $247,260 (2008: $238,515), including GST for rental, security and cleaning. The amount owed to Massey University by E-Centre Limited as the year end was nil (2008: $19,135), payable under normal trading terms.

BioCaveo

During the year Massey University entered into no transactions with BioCaveo. During the year BioCaveo was removed from the companies register on the 9th November 2009.

Magritek Holdings Limited

During the year Massey University entered into no transactions with Magritek Holdings Limited.

New Zealand Vet Pathology (NZVPL) Limited

During the year Massey University entered into transactions with NZVPL. All transactions were conducted on an arm’s length basis using commercial terms.

Massey University charged NZVPL $119,011 (2008: $149,401), including GST for rental, postage, insurance and other services. The amount owed to Massey University by NZVPL at the year end was $30,398 (2008: $126,261), payable under normal trading terms.

NZVPL charged Massey University $15,369 (2008: $168,358), including GST for professional services. The amount owed to NZVPL by Massey University at the end of the year was nil (2008: nil), payable under normal trading terms.

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Note 29. Statement of Commitments

Total Project Commitments 2009

Total Project Commitments 2008

Projected Total

Cost of Project

($000)

60,046

56,222

Expenditure to 31.12.09

($000)

47,044

21,764

unspent

Commitment

($000)

13,002

34,458

In addition, the University had operating commitments in respect of service contracts, leases of land, buildings and equipment, and photocopier rental as follows:

University

Actual

2009

($000)

Actual

2008

($000)

Consolidated

Actual

2009

($000)

Actual

2008

($000)

Operating Leases

Due not later than 1 year

Due later than 1 year and not later than 5 Years

Due later than 5 years

Total

5,108

8,825

2,734

16,667

3,670

7,483

4,917

16,070

5,372

9,852

2,927

18,151

3,933

8,536

5,303

17,772

Other Commitments

Due not later than 1 year

Due later than 1 year and not later than 5 years

Due later than 5 years

Total

1,600

818

373

2,791

2,763

4,766

441

7,970

1,600

818

373

2,791

2,763

4,766

441

7,970

-

-

-

Note 30. Statement of Contingent Liabilities

As at 31 December 2009, Massey University had the following contingent liabilities (University and

Consolidated):

There were 9 employee personal grievances against the University as at 31 December 2009.

The Contingent Liability was assessed at $165,000 (2008: $130,000).

-

Three students have lodged separate claims against the University. The University is defending its position.

Contingent liability is assessed at $390,000 (2008: nil)

A contractor has lodged a claim against the University. The University is defending its position.

Contingent liability is assessed at nil (2008: nil).

Note 31. Post Balance Date Events

There are no significant post balance date events (2008: nil).

Note 32. Financial Instrument Risks

Massey University has a series of policies to manage risks associated with financial instruments. Massey University is risk adverse and seeks to minimise exposure from Treasury activities. Massey University has established

Council-approved liability management and investment policies. These policies do not allow any transactions that are speculative in nature to be entered into.

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Market Risk

Credit Risk

Credit Risk is the risk that a third party will default on its obligations to Massey University, causing Massey

University to incur a loss. Massey University has no significant concentrations of credit risk as it has a large number of credit customers, mainly students.

Massey University invests funds only in deposits with registered banks, and its investment policy limits the amount of credit exposure to any one bank. Investment funds are spread over a number of banks and vary between short and long term. Investments with each bank is in line with the Universities Treasury framework.

Maximum exposure to credit risk at balance date are:

Bank deposits

Receivables and prepayments

Guarantee Bond

Credit Facility on Credit Card

Managed funds

University

2009

($000)

2008

($000)

61,518

30,897

30

4,000

-

83,940

24,307

30

4,000

-

Consolidated

2009

($000)

2008

($000)

63,209

32,147

30

4,000

11,711

85,708

23,980

30

4,000

10,259

The above maximum exposures are net of any recognised provision for losses on these financial instruments. No collateral is held on the above amounts.

Bank Deposits are represented by the following:

ASB Bank Limited

Bank of New Zealand

Kiwibank Limited

ANZ National Bank Limited

Westpac New Zealand Limited

Credit Rating

AA (Very Strong)

AA (Very Strong)

AA- (Very Strong)

AA (Very Strong)

AA (Very Strong)

University

2009

($000)

2008

($000)

5,000

5,559

9,000

37,700

5,750

63,009

7,000

21,495

34,000

15,695

5,750

83,940

Consolidated

2009

($000)

2008

($000)

5,000

7,327

9,000

37,700

5,750

64,777

7,000

23,263

34,000

15,695

5,750

85,708

Standard and Poor’s Credit Ratings sourced from the Reserve Bank of New Zealand: http://www.rbnz.govt.nz/nzbanks

Liquidity Risk

Liquidity Risk is the risk that Massey University will encounter difficulty raising funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash and ensuring the availability of funding through an adequate amount of committed credit facilities. Massey University aims to maintain flexibility in funding by keeping committed credit lines available.

68

Massey University aims at having minimum cash holding of $20 million.

Massey University manages its borrowings in accordance with its funding and financial policies.

The maturity profiles of Massey University’s interest-bearing investments are disclosed in Note 15.

Currency Risk

Currency Risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.

Massey University minimises the risk over expenditure by holding funds in the major foreign currencies that it does business in. The amount on deposit is determined by the amount that is expected to be incurred against that currency over the next 12 months. Holdings of foreign currencies are disclosed in Note 11.

Where one-off major capital expenses involving foreign currency is identified, then a review of current trends and amount held in that currency is undertaken. If appropriate, then forward cover may be undertaken.

Interest Rate Risks

The interest rates on Massey University’s investments are disclosed in Note 15, and borrowings in Note 20.

.

Fair Value Interest Rate Risk

Fair Value Interest Rate Risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market rates. Massey University is limited by statute in its ability to manage this risk. If interest rates on investments had fluctuated by plus or minus 0.5%, the effect would have been to increase/decrease the surplus by $381,140. Interest rates on borrowings are fixed and not subject to fluctuation for the duration of the fixed maturity chosen.

Cashflow Interest Rate Risk

Cash Flow Interest Rate Risk is the risk that cash flows from financial instruments will fluctuate because of changes in market rates. Borrowings and investments made at variable interest rates expose Massey University to cash flow interest rate risk. Apart from some deposits at call for liquidity purposes, Massey University does not have any variable interest rates.

Other Price Risk

Other Price Risk is the risk that the value of a financial instrument will fluctuate as a result of market changes in market price. Massey University does not hold any other financial instruments of significance subject to this risk.

Note 33. Critical Accounting Estimates and Assumptions

In preparing the financial statements Massey University has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates are judgements are continually evaluated based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. With the exception of those items listed below, there were no estimates of assumptions that will have significant impact on the carrying amounts of assets and liabilities within the next financial year.

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Long-Service Leave and Retirement Gratuities

In order to assess Massey University’s liability in respect of long-service leave and retirement gratuities, an actuarial report was prepared by Eriksen Actuarial in accordance with NZ IAS 19. (Refer Note 21 for assumptions.)

Note 34. Critical Judgements in Applying Massey University Accounting Policies

Management has exercised the following critical judgements in applying Massey University policies for the year ended 31 December 2009.

Impairment of Trade Receivables

Trade Debtors have been reviewed fully and impairments provided as necessary.

Impairment of Property Plant and Equipment

When considering whether any impairment of property plant and equipment existed, the cash generating unit for Massey University is taken to be at campus level. At balance date a review was undertaken and no impairments were disclosed.

Carrying Value of Land and Buildings

To ensure that the carrying value of the University’s land and building are correctly recorded it has been determined that such assets are valued by an independent registered valuer on a regular basis or as deemed necessary.

There is land that is owned by the Crown that is recorded on the Massey University Asset Register.

In order to fairly and accurately record the value of all Land and Buildings occupied by Massey University, it is necessary to incorporate the Crown owned land and buildings on the Massey University Asset Register.

70

S t a t e m e n t o f S e r v i c e P e r f o r m a n c e

The Massey University Investment Plan 2008 – 2010 states specific performance indicators and measures under each of the University’s nine strategic priorities. The performance indicators are intended to cover all the activities of the University. Performance against these indicators is reported in the Statement of Service

Performance. The Appendices provide additional information and detail on the University’s profile.

The targets for 2009 in the Statement of Service Performance were set in 2007 when the Investment Plan 2008-

2010 was approved by the Tertiary Education Commission. The University’s Investment Plan and performance indicator targets for 2010 have been revised during 2009 to be consistent with the strategic direction in the

University’s long term strategic plan, The Road to 2020.

S t r a t e g i c P r i o r i t y 1 :

Enhanced academic outcomes for Mäori and Pasifika from the implementation of Massey University’s Mäori and

Pasifika Strategies.

Performance Highlights 2009:

• Considerable progress has been made with advancing the KIA MAIA Strategy. Highlights include:

- Launching MANU AO, an inter-university Mäori Academy for academic and professional advancement initiative, led by Massey University, with Dr Selwyn Katene appointed as Director

- Mäori Communications Strategic Plan under development

- Several doctoral support initiatives have been progressed including:

♦ Two doctoral writing retreats were held in Manawatu and Albany

♦ Doctoral portal updated with fifteen new online research seminars

♦ Dr Nathan Matthews took up the new role of Doctoral Studies Coordinator, in the Office of AVC

Mäori and Pasifika, to advance Mäori postgraduate research

♦ Cyber community launched and maintained

- 2009 Paerangi Lectures were held on each campus in June and July 2009

- Inaugural Mäori Alumni event heralded as “outstanding success”

- A Mäori & Pasifika Student Success Strategies Planning Workshop was held to focus on encouraging student academic success. Valuable insights were shared from across the University

- The approach to Strategic Iwi Partnerships was approved and implemented with a Memorandum of

Understanding being considered between Ngäti Porou and Massey University

- All campuses supported the Ngahere Matariki project. On each campus Regional Facilities

Management, Mäori students, and Mäori staff groups organised the planting of a native tree

- Received confirmation of funding from the TEC Priority for Focus Fund, and the Encouraging and

Supporting Innovation Fund

71

• Considerable progress has also been made with advancing the [email protected] Strategy. Highlights include:

- A combined Pasifika knowledge development and research advisory group has been established

- Pasifika Communications Strategy currently under development

- The first Pacific qualification, the Certificate of Pacific Development, has been approved, and will be open to new enrolments in 2010

- One Pasifika supernumerary position has been established

- A Pasifika Staff Research Award has been established which will enable the release of a Pasifika Lecturer, to initiate or complete a research project

- Relationships have been established with Pasifika teams in Ministries of Health, Education, and Pacific

Island Affairs

- The Pasifika Directorate presented papers at various Pasifika national and international conferences on research, education, health and the environment

- Pacific People’s Consultancy Groups and Ceremonies to Honour Pasifika Graduates have been established on all campuses

- A Pasifika Writing and Learning consultant has been appointed full time to ensure that the needs of

Pasifika internal and extramural students are met

• The Massey Medical Centre continues to improve its data collection methods to effect measures to improve

Mäori health outcomes. Akin to this exercise is the development of a Pacific Island Peoples’ Health Plan by the Medical Centre to identify any inequalities between Pasifika and non-Pasifika in a suite of measurable health outcomes

• Inaugural Ngä Kupu Mäori Book Awards held at the Manawatu campus in September 2009

• Professor Mason Durie, Assistant Vice-Chancellor, Mäori and Pasifika, took on the additional role of Deputy

Vice-Chancellor

• Mäori qualification-level completion rates over 5 years have exceeded targets for 2009, and continued to improve on last year, particularly at postgraduate level

• The drop in course completion rates for Mäori research degrees reflects the unusually large cohort who completed in 2008

• Pasifika completion and retention rates, while marginally under target in some areas, showed significant improvement on last year, again at postgraduate level

Performance indicators

Implementation of Kia Maia investment initiatives by 2010

Implementation and extension of the Pasifika @ Massey strategy by 2010

- Undergraduate

- Postgraduate (excl. Doctorates)

Mäori course completion rate (research degree level) (%)

Pasifika qualification level completion rate for 1 EFTS & under over 2

Years (%)

Performance indicators

Mäori qualification level completion rate over 5 years (%)

- All levels

notes

1, 2

2009 target

Implementation as per plan

Implementation as per plan

2009 target 2009 actual

2009 actual

Achieved and ongoing

Achieved and ongoing

2008 actual

3

1, 4, 5

19%

17%

33%

-

16%

20%

17%

36%

84%

33%

20%

17%

32%

96%

17%

72

Performance indicators

Pasifika qualification level completion rate over 5 years (%)

- All levels

- Undergraduate

- Postgraduate (excl. Doctorates)

Pasifika qualification retention rate year 1 to year 2 (%)

- All levels

- Undergraduate

- Postgraduate (excl. Doctorates)

notes

1, 2

5

4, 5

2008 target

23%

18%

44%

49%

47%

54%

2008 actual

21%

15%

44%

52%

46%

70%

2007 actual

18%

15%

35%

47%

46%

69%

Note:

1. Qualification Completion Indicators: Completion records are only generated if and when a student applies to graduate. Consequently, where a student has completed but not yet applied to graduate, the completion is not included in the performance data.

2. 2009 Target and Actual relate to the 2003 cohort of students. 2008 Actual relates to the 2002 cohort of students.

3. This indicator measures course completions by Mäori students for courses at research degree level. This is a new indicator and as such, the focus for 2009 has been on collection of base historical data to enable appropriate university-level targets to be set in future years. 2009 Actual relates to 2008 courses. 2008 Actual relates to 2007 courses.

4. 2009 Target and Actual relate to the 2006 cohort of students. 2008 Actual relates to the 2005 cohort of students.

5. The cohort size for this performance indicator is relatively small and this can cause variations in performance between years.

S t r a t e g i c P r i o r i t y 2 :

Improved educational success for life-long learners from the continuous improvement of Massey’s universitylevel distance education provision.

Performance Highlights 2009:

• Associate Professor Mark Brown was appointed to the position of Director Distance and Blended Education and is now working to bring the development goals together in a broader strategy around distance and blended learning at Massey University

• Feasibility study completed for distance programmes in under-serviced regions and populations

• The Bridging the Distance Project received supportive funding from the Tertiary Education Commission

(TEC) to establish a research-based framework and online tools for distance learner support. A project manager was appointed in 2009 with substantive work ongoing in 2010

• Investment plan for distance education infrastructure completed

• There is strong alignment between the University’s investment in infrastructure for distance education and that for (e)Learning. Implementation of Stream, the University’s new Learning Management System, is currently at the centre of these developments. Significant investment was made in 2009 for the technical infrastructure required to support Stream but more importantly, this has been reinforced with expanded training and development capacity for both staff and students.

73

• The development of a Certificate of University Preparation paper in study skills for distance delivery is complete; this paper and a communication skills paper will be delivered in Semester 2, 2010. The papers are for those students who are intending to continue their study by distance but who need additional preparation prior to embarking on their degree level study i.e. adult learners

• Agreement established with SENAI (National Service for Industrial Apprenticeship) in Brazil to offer Master of Technology via an innovative distance learning partnership

• The Library has been recognised internationally for its outstanding work through the Insync Library Client

Survey Report

• The Library’s new BONUS reciprocal scheme with eight Australian university libraries (including University of Melbourne and University of Newcastle) allows Massey staff and students to order books not held by

Massey directly and in real time from these libraries

• The CUAP approved Diploma of Secondary Teaching in partnership with Cempaka Schools was delayed due to requirements of the Malaysian Government. Over the course of 2009, three other programmes have been developed for delivery in 2010

• Massey University is taking a major role in the organisation of the 2010 Distance Education Association

Conference which will provide a significant opportunity for individuals and groups across the sector to discuss issues and advancements in the area of distance learning

• National Tertiary Teaching Excellence Awards for Sustained Excellence were awarded to Heather Kavan

(Department of Communication, Journalism and Marketing) and Norman Meehan (New Zealand School of

Music)

• Qualification completion rates for distance education students improved at all levels of study in 2009

• Retention rates for students studying at a distance exceeded target and improved on 2008 levels, as did student satisfaction rates

Performance indicators

Implement strategic redevelopment goals for distance education by 2013

Explore the opportunity to provide a wider range of academic programmes in under-serviced regions and populations

Invest in infrastructure for distance education

2009 target

Implementation as per plan

Development

Investment as per programme

2009 actual

Achieved and ongoing

Achieved and ongoing

Achieved and ongoing

Performance indicators

Extramural qualification level completion rate over 5 years (%)

- All levels

- Undergraduate

- Postgraduate

Extramural retention rate year 1 to year 2 (%)

Extramural student satisfaction with services (% students rating services good/very good)

Number of qualifications offered to students overseas via distance learning

notes

1,2,3

4

3

2009 target

-

-

-

49%

74%

2

2009 actual

18%

14%

36%

50%

84%

1

2008 actual

15%

11%

33%

45%

78%

1

Note:

1. Qualification Completion Indicators: Completion records are only generated if and when a student applies to graduate. Consequently, where a student has completed but not yet applied to graduate, the completion is not included in the performance data.

74

2. 2009 Target and Actual relate to the 2003 cohort of students. 2008 Actual relates to the 2002 cohort of students.

3. This indicator is a new indicator and as such the focus for 2009 has been on collection of base historical data to enable appropriate university-level targets to be set in future years. Targets have been set for 2010.

4. 2009 Target and Actual relate to the 2006 cohort of students. 2008 Actual relates to the 2005 cohort of students.

S t r a t e g i c P r i o r i t y 3 :

Improved educational outcomes for learners from strengthening of Massey University’s (e)Learning Capacity

Performance Highlights 2009:

• Paper redesign is in progress as part of Stream implementation. As at December 2009 there are at least

150 papers which have been redesigned for Stream and each of the Colleges is working to an agreed development plan for the implementation of remaining papers in 2010 and 2011

• Investment plan for distance education infrastructure completed. There is strong alignment between the

University’s investment in infrastructure for distance education and that for (e)Learning. Implementation of Stream, the University’s new Learning Management System, is currently at the centre of these developments. Significant investment was made in 2009 for the technical infrastructure required to support

Stream, but more importantly this has been reinforced with expanded training and development capacity for both staff and students

• A licence has been negotiated to expand the current electronic toolset for Stream

• A Fund for the Innovative Use of Stream was established and successful applicants from across the university are proceeding with research projects related to student use of information and communications technologies

• Community template has been developed for the Stream environment. Several community and/or programme-wide initiatives are underway in Stream to provide a more cohesive learning experience for a diverse range of learners. Examples include the Mäori PhD Community, first year Sciences community, and

Wellington Campus postgraduate student community

• Information Systems Strategic Plan currently under development

• Significant additional funding allocated to information technology as part of the 2010 Budget

• The 2009 target was not achieved for the proportion of papers having an (e)Learning component, due to competing demands on staff, including PBRF requirements. Have therefore adopted a slight change in the approach to supporting staff transitioning papers to Stream, to ensure progress while ensuring the integrity of the transition

• Student satisfaction with the online learning environment exceeded target and improved significantly on

2008. This could be attributed to the introduction of Stream, the University’s new Learning Management

System

75

Performance indicators

Redesign of papers to support the electronic delivery of selected programmes by

2010

Invest in infrastructure for (e)learning

Develop a research programme to evaluate the impact of information and communications technologies on learners by 2009

2009 target

Development

Investment as per programme

Implementation

2009 actual

Achieved and ongoing

Achieved and ongoing

Achieved and ongoing

Performance indicators

Proportion of papers that have an (e)learning component (%)

Student satisfaction with online learning environment (% students rating services good/very good)

notes

1

2009 target

50%

71%

2009 actual

42%

78%

2008 actual

40%

67%

Note:

1. The wording for the 2009 survey question has changed to “The online learning environment is easy to use

(ie WebCT, Stream, OWLL)” and this may have contributed to the percentage increase from 2008 to 2009.

S t r a t e g i c P r i o r i t y 4 :

Enhanced contribution to economic transformation and social development through a focused and differentiated academic portfolio.

Performance Highlights 2009:

• Professor Ingrid Day was appointed to the position of Assistant Vice-Chancellor (Academic & International) in July 2009 and has assumed responsibility for the design and implementation of a major Academic Reform

Project that will include strategic review of all papers and programmes in 2010. Academic policies being developed and revised within the Academic Reform Project include assessment, academic integrity, student evaluation, and study material provision. The design phase of the Academic Reform project will include the acknowledgement and extension as appropriate of postgraduate provisions in areas of recognised research strength

• Association to Advance Collegiate Schools of Business (AACSB) accreditation granted for the College of

Business for a 5 year period

• Association of MBAs (AMBA) accreditation granted for the MBA qualification. The MBA programme has been redesigned to make it more flexible, more accessible, and more financially sustainable

• School of Accountancy achieved self-certification status with the Chartered Institute of Management

Accountants (CIMA), another step in the accreditation process with the international accounting body

• Massey University gained Certified Financial Analyst (CFA) partnership status, recognizing the quality of our undergraduate Finance programmes

• The Institute of Professional Engineers New Zealand (IPENZ) accreditation report of Massey's engineering programmes confirmed accreditation of all established Bachelor of Engineering majors and the two

Bachelor of Engineering Technology majors that are being phased out, provisional accreditation of the

Product Development and Multimedia Systems Engineering Bachelor of Engineering majors (with full accreditation subject to checks on final year projects), and provisional accreditation of the Electrical,

Electronics and Communications Engineering and Product Design Engineering majors of the Bachelor of

Engineering (with full accreditation once the first graduates are produced)

76

• Massey University is working closely with the New Zealand Vice-Chancellors Committee Graduate Outcomes

Review Group to establish a longitudinal study of graduate outcomes across the university sub-sector.

Funding was secured in 2009 and a subcontractor selected. A pilot of the new survey will be conducted in

2010

• Student City projects continue to be embraced by the tertiary sector, PNCC, and local businesses.

Engagement has occurred through the Integrated Education Guardian Group (IEGG), which is coordinated by Vision Manawatu. An internship paper commencing semester 2, 2009, was launched on 18 June. This is a collaborative initiative between the IEGG, College of Business, Student Life Careers’ Service, local businesses, and Vision Manawatu to improve the links between students and businesses with the aim to retain graduates in Palmerston North. Thirteen students participated in the first intake

• The Integrated Education Guardian Group (IEGG) has a number of priority areas for development. Dr

Shillington is leading the IEGG priority area of “Sports, Wellness and Nutrition” and is in the process of developing a proposal aimed at a Talent Development Centre for secondary school aged youth. A business plan has been prepared following the workshop and will be implemented in 2010

• Tertiary Discovery Day (at the Convention Centre in Palmerston North and organised jointly by Massey and UCOL), was held on 31 March 2009, was attended by more than 400 people, predominantly secondary school students. The event was aimed at building awareness in the Manawatu district of what the two main tertiary education providers in Palmerston North can offer their community in the way of continued education

• Massey is continuing to define itself as the University of Choice among New Zealand’s top athletes who are involved in tertiary education. For example, Massey students were awarded 101 Prime Minister’s Athlete

Scholarships in 2009, which accounts for almost one third of the scholarships awarded

• Ako Aotearoa Research Project on the Secondary / Tertiary Learning Interface launched

• Approval to offer an innovative degree in Natural Sciences at Albany achieved

• Launch of Bachelor of Agricultural Science, Bachelor of Agricultural Commerce, and Bachelor of

Environmental Management in Manawatu (consolidation and revitalisation of the offerings from the former

Bachelor of Applied Science)

• Internationalisation of the distance Master of Veterinary Medicine (MVM) programme achieved

• The College of Creative Arts applications for selected entry in 2010 reached the highest levels ever on the

Wellington campus

• Directors of Teaching and Learning appointed within each College

• The proportion of qualifications reviewed was lower than targeted due to Massey approaching the end of the

5-7 year review cycle in 2009, and the expected reviews within the College of Business were not undertaken in lieu of work on AACSB accreditation

• The increase in sub-degree level provision for 2009 relates to enrolments in the Certificate in Foundation

Studies and Certificate in University Preparation

• Doctoral level provision exceeded target for 2009 and increased on 2008 levels

77

Performance indicators

Strategic positioning and review of College and campus academic programmes over the planning period

Examine the network of provision in Auckland, Wellington and the central North

Island over the planning period

Explore the opportunity to provide a wider range of academic programmes in under-serviced regions and populations via distance learning

Examine areas of recognised research strength to further align postgraduate provisions and review programme provision in marginal areas over the planning period

Seek AACSB international accreditation by 2010

Develop mechanisms to better understand the outcomes for graduates by 2009

Expand programmes to encourage secondary school students into degree studies and professional careers over the planning period

2009 target

Review & Implementation

Feasibility & Development

Development

Feasibility & Implementation

Development

Development

Development

2009 actual

Achieved and ongoing

Achieved and ongoing

Achieved and ongoing

Achieved and ongoing

Achieved

Achieved and ongoing

Achieved and ongoing

Performance indicators

Proportion of qualifications reviewed (%)

Student progression into degrees from other TEOs (number of)

- ITP

- PTE/OTEP

- Wananga

EFTS by qualification level (%)

- Sub-degree

- Undergraduate

- Postgraduate

- Doctorates

notes

1

2009 target

20%

395

140

120

5%

72%

18%

5%

2009 actual

12%

-

-

-

6%

71%

17%

6%

2008 actual

15.5%

307

105

52

4%

72%

18%

5%

Note:

1. 2009 Target and Actual relate to progression of 2008 students. 2008 Actual relates to progression of 2007 students. Results for 2009 Actual were not available from the Tertiary Education Commission at the time of publication.

S t r a t e g i c P r i o r i t y 5 :

Enhanced contribution to economic transformation and social development through strategic collaboration with industry, communities and other providers.

Performance Highlights 2009 (please also refer to highlights under Strategic Priority 6):

• Agri-Food communication strategy activated, with supporting publications created

• Increased connection with the food industry has been achieved through the successful partnership and launch of Food Innovation New Zealand and reinvigoration of the Food Awards. Food Innovation Network

New Zealand proposals agreed

• Massey University, Palmerston North City Council, Manawatu District Council, Sport Manawatu and local cycling fraternity worked together to develop a “bid” for the Sparc initiated proposal to develop an international standard indoor velodrome at Massey University. The outcome for this bid will be known in

2010

• Established relationships with Royal New Zealand Navy at Devonport and with the Royal New Zealand

Airforce at Whenuapai

78

• Hosted an Open Day at Riverside Farm to better connect with the rural community. Massey has also become the main sponsor of the Central Districts Field Days

• Hosted the Global Enterprise Challenge in 2009 at the Albany campus in partnership with the Young

Enterprise Trust. The FEDEX business challenge was included as a new initiative. The campus also sponsored the Westpac Enterprise North Shore Business Excellence Awards, the North Harbour Club

AIMES Awards, and the Massey University North Harbour Sporting Excellence Awards

• Successful stakeholder function held to celebrate the 10th anniversary of the Wellington Campus

• Massey University’s Blow 09 Creative Arts Festival attracted record numbers of visitors, positive media attention and industry and stakeholder acclaim

• Mission to Northland identified several opportunities to engage with Northland businesses, industry, local government and iwi, in both degree and professional short course education

• Agricultural Services Strategic Plan presented to stakeholders. The Plan will ensure that AgServices work within Massey University’s strategic plan to be acknowledged as New Zealand’s Defining University. In conjunction with the College of Sciences, AgServices is working to maximise the opportunities for postgraduate study on Massey University farms and support funding initiatives that incorporate postgraduate study and publication of research findings

• Successful delivery of the third international FAME (Food and Agribusiness Market Experience) course in partnership with Lincoln and Otago Universities (sponsored by AGMARDT)

• In collaboration with Lincoln University, we are partnering a major primary industry application into the

Primary Growth Partnership (PGP)

• Memorandum of Understanding signed between Massey’s Centre for Defence Studies and the NZ Defence

Force

• 22nd Fertiliser and Lime Research Centre Annual Workshop was conducted. The workshop was sponsored by fertiliser companies, Horizons Regional Council, Crown Research Institutes, three Soil and Plant Testing

Laboratories, DairyNZ and AGMARDT

• The first Vice-Chancellor’s Special Lecture was held at Albany campus. The lecture was given by New

Zealand’s leading financial journalist, Rod Oram

• Establishment of external magazine, Defining NZ

• Secured naming rights of the Wanganui Business Awards for 2009-2011

• Provided judges and methodology for regional business awards in Manawatu, Wanganui and Northland

• Riddet Institute Food Summit Meeting held in conjunction with invited industry, government and international participants

• Provided first stage judging for the Fairfax Sustainable 60 awards

• Vice-Chancellor Steve Maharey was elected to Wellington Regional Chamber of Commerce, with first term beginning in January 2010

• The School of Public Health has been established, with the launch planned for early 2010

• Inter-College cluster in Exercise and Sports Sciences based on Manawatu Campus, with formal consultation on a draft proposal for a School of Sport currently under consideration by the Senior Leadership Team

(SLT)

79

• Working Committee established to design an Academy for Sustainability and the Environment

• Centre for Research Excellence in Inclusive Education established

• In November 2009, the Sustainability Research Network (SuRE) was launched to link researchers within the

College of Creative Arts whose work engages with sustainability and the environment

• The New Zealand Centre for Life Cycle Management and the New Zealand Biochar Research Centre established within the College of Sciences

• Planning has commenced for an International Centre for Sheep Research and a Centre for Infectious

Disease Research

• Partnership secured within the New Zealand Greenhouse Gas Emissions Research Centre

• New Zealand Centre for SME Research hosted the Small Enterprise Association of Australia and New

Zealand conference in September 2009

• Agreement reached with Lincoln University to develop detailed business plan for consideration of new collaborative vehicle for the joint delivery of research, professional development and education to relevant organisations and companies working in the Agri-food sector

• The Partnership for Excellence in Agriculture and Life Sciences initiated several research projects which included needs analyses for professional development for New Zealand agri-food corporates and farm advisors

• The number of academic qualifications offered in partnership with other providers is being maintained at current levels pending the outcome of the Academic Reform Project

• While the total number of research programmes/contracts offered in partnership with other providers decreased from 2008, target was exceeded for 2009

Performance indicators

Further enhance and develop partnerships with industry and our communities of interest

Offer specialist services to other providers and explore collaborative arrangements where these can offer economies of scale over the planning period

2009 target

Development & Implementation

Feasibility & Development

2009 actual

Achieved and ongoing

Not achieved. It is intended that as the University develops its infrastructure and capability for distance education and (e)

Learning, there will be services that it can provide to other institutions in the Sector. The major investment made in

2009 will support this being undertaken in the future.

Achieved and ongoing Establish and/or further develop new centres for research excellence over the planning period

Explore the establishment of a national College of Agriculture and Life Sciences

Development & Establishment

Development Partially achieved and ongoing

Performance indicators

Proportion of qualification reviews including engagement with relevant stakeholders (%)

Number of academic qualifications offered in partnership with other providers

Number of research programmes/contracts offered in partnership with other providers

notes

1

2009 target

100%

22

54

2009 actual

100%

16

146

2008 actual

100%

16

156

80

Note:

1. Partnerships included here are only those Massey is the first party (the lead-contractor) to the programme/ contract. This indicator is a new indicator and as such the focus for 2009 has been on collection of base historical data to enable appropriate university-level targets to be set in future years.

S t r a t e g i c P r i o r i t y 6 :

Enhanced national research capability and economic growth from the advancement of Massey University’s research capability, performance and reputation.

Performance Highlights 2009 (please also refer to highlights under Strategic Priority 5):

• University Research Strategy drafted and will be finalised in 2010 for implementation thereafter

• Performance Based Research Fund (PBRF) strategy has been adopted and implementation has commenced.

All College Research Plans have been updated with the aim of increasing research capability and improving performance for the 2012 PBRF round. PBRF Communications Strategy has been developed

• A number of research collaborations with national and international partners have been established which include: multi-party collaboration research developments including the Life Cycle Management Centre, the

Agricultural Greenhouse Gas Research Centre and the Natural Hazards Research Platform; Food Innovation

NZ brand developed and successfully launched; research partnership with Polybatics established; research consortia with Leather and Shoe Research Association approved; NZ Biochar Research Centre inaugurated with Professor and Associate Professor appointed; Agri-food Strategy Manager appointed to accelerate the

Massey-Lincoln Partnership for Excellence; and partnership established with Goethe Institut

• The Ministry of Agriculture and Forestry (MAF) contract was awarded to Massey University to establish

Research Centre for Life Cycle Analysis. The inaugural workshop was held in August 2009, and the Director,

Dr Sarah McLaren, appointed in November 2009

• Preferred provider status was achieved for three Primary Growth Partnership bids

• The Biocommerce Centre at Manawatu and e-Centre at Albany will be the University’s commercialisation partners. This will establish a network of commercialisation capability across the campuses with the objective of increasing commercial opportunities

• Positive success rates from externally funded sources including Marsden, Health Research Council (HRC) and the Foundation for Research Science and Technology (FRST), with external revenue in line, or higher than previous years

• As part of the 2010 Budget, an increase of $750,000 has been provided for PhD scholarships to boost the number of postgraduate research completions

• The Riddet Institute established “The Earle Food Research Fund”, a $1 million scholarship fund to support postgraduate students to deliver research which contributes to its Centre of Research Excellence (CoRE)

Research Programme

• Professor Anne Noble received a 2009 Arts Foundation Laureate Award

• Professor Dorita Hannah won Gold and Silver Awards at the 2009 World Stage Design Competition

• Royal Society of New Zealand Science and Technology medal awarded to Professor Paul Spoonley for his scholarship on race relations in New Zealand

81

• Fullbright Senior Scholar awards won by Professor Paul Spoonley, Glyn Harper and Grant Hannis

• Professor Philippa Gander was elected a Fellow of the Royal Society of NZ

• Dr Rory Flemmer won New Zealand Engineering Innovator of the Year in November 2009

• The Council of the Royal Society of New Zealand elected Professor Vincent Neall as a Companion, an honour which recognises outstanding leadership in Science

• Professor Ulrich Zuelicke was awarded the New Zealand Association of Scientists Research Medal

• Dr Barbara Holland received the New Zealand Mathematical Society’s Early Career Award for 2008

• Associate Professor Bruce Glavovic was the first New Zealander to be appointed to a prestigious international scientific advisory team researching the impact of climate change on coastal areas

• Professor Margaret Tennant has been elected as a Fellow of the New Zealand Academy of Humanities

• Massey graduate, Caine Thompson, won the 2009 Young Horticulturalist of the Year competition (from 1200 other competitors)

• Massey design graduates dominated the prestigious Zonta Design Awards including the Supreme Winner awarded to Andrea Bednarek

• Massey PhD Science student Martina Dautel received the Millennium Science Young Scientist Award

• Carlene Starck won the MacDiarmid Young Scientist of the Year Award in the Advancing Human Health and

Wellbeing category

• Massey students top Dyson Design Awards for second year running

• Industrial Design student Annabel Goslin won an international Red Dot design award in the largest and most renowned design competition in the world

• Massey University celebrated 1,000 doctoral students concurrently enrolled for the first time in Massey’s history

• Postgraduate student numbers (equivalent full-time students) up on 2008 by 5.6%

• Total research and consulting income (excluding PBRF) exceeded target for 2009 and increased by 10% on

2008 levels

• PBRF income exceeded target for 2009 and increased by 16% on 2008 levels

• Research degree completions were maintained at a similar level to 2008

• While the total number of Quality Assured research publications decreased from 2008, target was exceeded for 2009

82

Performance indicators

Implement the University’s Strategic Policy on Research Capability by 2012

Strengthen collaborative networks with relevant national and international partners over the planning period

Update and implement College research plans post 2006-PBRF

Develop appropriate mechanisms for commercialisation of Massey University intellectual property by 2009

Develop an enterprise capability for expanding private sector research and development connections

Further develop intellectual property capture processes by 2008

Establish and monitor key performance indicators for intellectual property development by 2008

2009 target

Implementation as per policy

Development & Implementation

2009 actual

Partially achieved and ongoing

Achieved and ongoing

Development & Implementation

Implementation

Achieved and ongoing

Achieved

Implementation Achieved

Implementation

Implementation

Achieved

Achieved and ongoing

Performance indicators

Total research and consulting income (excluding PBRF) ($m)

PBRF income ($m)

Research degree completions (number)

Total number of Quality Assured research publications

notes

1

1, 2

3

2009 target

58

37

780

1,680

2009 actual

70

52

414

2,672

2008 actual

63

45

418

3,612

Note:

1. This is an interim figure only, pending confirmation of final data from Tertiary Education Commission

2. 2009 Actual relates to 2008 completions. 2008 Actual relates to 2007 completions. The 2009 target for research degree completions was based on 2006 base historical data which was inflated by the one-off data cleansing exercise associated with the PBRF.

3. This indicator is a new indicator and as such the focus for 2009 has been on collection of base historical data to enable appropriate university-level targets to be set in future years.

S t r a t e g i c P r i o r i t y 7 :

Enhanced economic growth for New Zealand and Massey University through the optimisation of commercial activities.

Performance Highlights 2009:

• New model of commercialisation at Massey approved by Council during 2009, with commercialisation mechanisms implemented and IP processes documented. KPIs to be implemented by December 2010

• The Biocommerce Centre at Manawatu and e-Centre at Albany will be the University’s commercialisation partners. This will establish a network of commercialisation capability across the campuses with the objective of increasing commercial opportunities

• Proposal prepared for a joint not-for-profit company with Lincoln University to manage human capability improvement in Agri-Food

• Substantial work undertaken in 2009 to explore options for a Short Course and Professional Development

Programme at Massey. A strategy is under development and detailed planning is scheduled for 2010

• Group and short courses for international groups continue to be increasing activity for the Centre for

University Preparation and English Language Studies (CUPELS). More than 350 students have participated in over 20 courses managed through CUPELS during 2009, supporting the University’s internationalisation strategy

83

• Research and consulting income from non-government sources exceeded target for 2009 and increased by

17% on 2008 levels

Performance indicators

Progress implementation of Massey University’s commercialisation framework over the planning period

Develop more extensive relationships between the University and private sector agencies over the planning period

Investigate opportunities for enhancing the performance of the University’s other commercial activities by 2009

Develop and implement a University-wide strategy for short courses and professional development programmes by 2008

2009 target

Implementation

Development & Implementation

Development & Implementation

Implementation

2009 actual

Achieved and ongoing

Achieved and ongoing

Achieved

Partially achieved and ongoing

Performance indicators

Licensing revenue / income ($000)

Research and consulting income from non-government sources ($m)

Numbers of licences and options executed

notes

1

1

2009 target

550

13

2

2009 actual

272

14

2

2008 actual

334

12

2

Note:

1. This indicator is a new indicator and as such the focus for 2009 has been on collection of base historical data to enable appropriate university-level targets to be set in future years.

S t r a t e g i c P r i o r i t y 8 :

Enhanced international reputation and competitiveness of New Zealand’s university sector through the optimisation of Massey University’s organisational capability and capacity.

Performance Highlights 2009:

• The University’s long term strategic plan, The Road to 2020, was reviewed and updated during 2009

• Progress was made on the development of the University’s Strategic Asset Management (SAMP) and

Information Services (ISSP) plans

• Revised Financial Strategy under development with finalisation expected in 2010. Value for Money project concept plan approved with project scheduled for completion in 2010

• Albany Library/Information Services Complex 2 opened for business in December 2009. Business case has been prepared for Wellington Library’s extension and refurbishment

• The Vice-Chancellor launched his first video web blog on YouTube in May 2009

• A clear one-University brand was established during 2009 with rebranding underway and expected to be completed by March 2010. Rebranding of the website went live in November 2009. Massey was placed 2nd in a public survey by ‘UMR Research’ of best known New Zealand University brands in August 2009

• Paper presented to SLT in December 2009 regarding the establishment of an Alumni Engagement

Programme aimed at increasing connections with international alumni

• Launch of Massey Foundation heritage fund in November 2009, with full launch planned in March 2010

• Continued planning on the relocation of University staff from Hokowhitu to Turitea

• Massey University Community Christian Centre opened in new building on Turitea campus; formal opening planned for early 2010

84

• Further improvements in all aspects of service delivery to students to enhance the University experience implemented including: Student Experience Group established, with strategy being released in early 2010;

Student Management System developments including enhanced on-line enrolment functionality; Enrolment

Planning Tool under development; Student Engagement Framework developed; finalisation of relationship framework with the student associations and federation; further roll-out of the customer interaction centre system; communication service standards rolled out from the National Contact Centre; and Student

Administration Steerage and coordination mechanisms approved. The Student Experience Survey (April

2009) showed strong overall improvement in student satisfaction with University services

• A number of Human Resource initiatives were implemented in 2009, including;

- Recruitment guidelines reviewed and new website section planned for 2010

- International recruitment marketing targeted difficult-to-fill roles

- Subscribed to Uni-jobs website, achieving significant penetration of the Australian academic market

- New brand reflected in recruitment advertising

- Further enhancements made to recruitment processes, practices and systems

- Staff induction processes developed

- Documentation of a remuneration policy and associated procedures

- Massey commenced the first New Zealand University Pay and Employment Equity Review

- A new job evaluation system was introduced for General Staff

- A working group has reviewed past practice for employee surveys. The practice of other NZ Universities and large organisations is being researched to inform the University’s approach in 2010

• Paper prepared to support the establishment of the Office of Public Policy and Development; Universitywide consultation underway

• Principles of revised Performance Reporting Framework approved by Council. Enhancement of risk management reporting in progress, with clear links to the revised Performance Reporting Framework identified. The Risk Register Software has been upgraded, with a view to enhanced risk reporting in 2010

• A University-wide Business Impact Analysis completed as part of the Business Continuance Management

Programme

• The implementation of the Records Management Programme is underway

• Implementation of the Institutional Research Programme commenced (due for completion in 2010) delivering five substantial reports during 2009

• Alan Davis, AVC People and Organisational Development, was chosen as the Supreme Award Winner and the Human Resources Institute of New Zealand’s HR Person of the Year at the HRINZ annual awards

• The percentage of University academic staff with a doctoral qualification increased to 69% from 59% last year and exceeded target for 2009

• The purchase of two high-performance twin-engine Diamond Aircraft 42 (DA42) and twelve DA40 singleengine planes will keep the School of Aviation at the forefront of pilot training in New Zealand

• Domestic student numbers increased by 8.5% during 2009

• First year qualification-level attrition rates for degree, graduate diploma and postgraduate qualifications improved on last year and were well under target - a positive outcome

85

• Qualification-level completion rates for all degree, graduate diploma and postgraduate qualifications also improved on last year and exceeded target for 2009 - again a positive outcome

Performance indicators

Develop Strategic Asset Management Plan (SAMP) by 2010

Develop Information System Strategic Plan (ISSP) by 2009

Complete Service Optimisation project by 2009

Implement budget strategies designed to ensure the University’s financial performance meets TEC guidelines by 2009

Invest in library infrastructure to support teaching and research needs

Relocate the College of Education from Hokowhitu site to Turitea by 2010

Develop and implement Strategic Capability Plans across the University by 2009

2009 target

Implementation

Implementation

Implementation

Implementation

Invest per Capital Programme

Implementation

Implementation

2009 actual

Partially achieved and ongoing

Partially achieved and ongoing

Achieved

Partially achieved and ongoing

Achieved

Ongoing

Partially achieved and ongoing

Performance indicators

First year qualification-level attrition for degree, graduate diploma and post-graduate qualifications (%)

Qualification-level completion rates for all degree, graduate diploma and post-graduate qualifications over 5 years (%)

Financial

- Surplus as a percentage of income (%)

- Working capital ratio (%)

- Debt to debt plus equity ratio (%)

- Staff turnover ratio (%)

notes

1

2, 3

2009 target

42%

29%

3%

90%

3.5%

13%

2009 actual

36%

38%

0.56%

119.25%

2.56%

8.2%

2008 actual

37%

33%

1.33%

144.05%

2.63%

12.2%

Note:

1. 2009 Target and Actual relate to the 2006 cohort of students. 2008 Actual relates to the 2005 cohort of students.

2. Qualification Completion Indicators: Completion records are only generated if and when a student applies to graduate. Consequently, where a student has completed but not yet applied to graduate, the completion is not included in the performance data.

3. 2009 Target and Actual relate to the 2003 cohort of students. 2008 Actual relates to the 2002 cohort of students.

86

S t r a t e g i c P r i o r i t y 9 :

Enhanced economic contribution to New Zealand through implementation of Massey University’s internationalisation strategies.

Performance Highlights 2009:

• Student country-of-origin numbers have increased for the majority of top ten markets except for China where over-dependency has been substantially reduced. Regional priority strategy to be developed by April

2010

• Regional Chief Executive, Manawatu, serves on the Education NZ Export Education Innovation Programme

(EEIP) Advisory Board and promotes the scheme within Massey University

• New international agreements signed in 2009. Review of all current agreements to be undertaken in early

2010 with a view to ensuring active relationships aligned with overall international strategy. New collaborative research opportunities identified within new agreements

• Discussions held with members of a delegation from JF Oberlin University, Japan, regarding English

Language training as part of a proposed agreement related to the School of Aviation

• The Director CUPELS is part of an Export Education Innovation Programme (EEIP) working party that has been set up with funding from Education NZ to work on the development of:

- a taught Masters degree with an endorsement in TESOL and Educational Leadership, with innovative distance learning/teaching design to be delivered jointly by the College of Education and College of

Humanities and Social Sciences

- an online ESOL programme with the School of Engineering and Advanced Technology

• The Regional Chief Executive of the Manawatu Campus, Pro Vice-Chancellor of the College of Education and the Director, CUPELS, maintained an active link with those universities and institutions in Thailand with whom Massey has partnership agreements. Visits to those universities focused on staff training, student exchanges and students interested in PhD study at Massey

• Massey University ranked 4th in New Zealand in the Shanghai Jiao Tong University Academic Ranking of

World Universities 2009

• Massey University ranked 24th in Oceania and 670 in the world for global performance and visibility in July

2009, in the international ranking of tertiary institution websites by Cybermetrics Lab, affiliated to CSIC, the largest public research body in Spain

• Indications are that the Direct Entry English Pathway (DEEP) programme will grow significantly to meet demand from international students

• Massey University won the Excellence in Marketing Award at the 18th Annual International Education

Conference

• Principles of internationalisation reviewed and updated

• The development of the World Bank-sponsored Master of Veterinary Medicine and the Master of Public

Health for overseas delivery is ongoing

• The proportion of international students studying at postgraduate level increased on last year’s levels, while the increase in sub-degree level provision reflects increased enrolment in the Certificate in Foundation

Studies and Certificate of University Preparation

87

• Qualification completion rates for international students improved significantly on last year at all levels of study

Performance indicators

Further diversification of international markets over the planning period

Grow international teaching and research collaborations in strategic areas

Develop international research relationships over the planning period

Deliver international distance degree and short course programmes in targeted disciplines and countries by 2010

2009 target

Development & Implementation

Development & Implementation

Development

Development

2009 actual

Achieved and ongoing

Achieved and ongoing

Achieved and ongoing

Achieved and ongoing

Performance indicators

International ranking: Asia pacific rankings

International EFTS by qualification level (%)

- Sub-degree

- Undergraduate

- Postgraduates

International student qualification completion rate over a 5 years period

(%)

- All levels

- Undergraduate

- Postgraduate (excl. Doctorate)

Number of formal academic arrangements with overseas institutions

notes

1

2

3, 4, 5

Note:

2009 target

43-64

-

97

-

-

4%

86%

10%

2009 actual

68-106

14%

55%

31%

70%

68%

77%

153

2008 actual

42-68

6%

66%

28%

58%

64%

65%

143

1. This information is accessible from http://www.arwu.org.

2. Due to a change in methodology, all international students (by Equivalent Full-Time Student) are included for 2008 and 2009 Actual. In the 2008 Annual Report only full-fee paying students were included and the targets were prepared on that basis.

3. This indicator is a new indicator and as such the focus for 2009 has been on collection of base historical data to enable appropriate university-level targets to be set in future years. “International students” includes non-

MOE reported students.

4. Qualification Completion Indicators: Completion records are only generated if and when a student applies to graduate. Consequently, where a student has completed but not yet applied to graduate, the completion is not included in the performance data.

5. 2009 Target and Actual relate to the 2003 cohort of students. 2008 Actual relates to the 2002 cohort of students.

88

o t H e r U n i v e r S i t y K e y P e r f o r m a n c e i n d i c a t o r S :

Performance indicators

Student participation by equivalent full-time students (eftS)

Total University

Funded by Ministry of Education

International full fee (MOE reported only)

Other

Undergraduate (includes sub-degree)

Postgraduate taught

Postgraduate research

Internal

Distance

Mäori

Pasifika

Proportion of students under 25 years (%)

- Sub-degree

- Undergraduate

- Postgraduate

- Doctorate

Student participation by number (headcount):

Total University

Mäori

Pasifika

Extramural

Proportion of students over 25 (%)

Student satisfaction with non-academic service

(% students rating services good/very good)

academic staff with a doctoral qualification

(% of full-time equivalent) notes

35,170

3,540

940

16,900

61%

68%

60%

6%

83%

11%

1%

2009 target

19,450

16,566

2,284

600

15,675

2,365

1,410

13,250

6,200

1,750

500

36,125

3,548

988

17,488

60%

80%

69%

6%

87%

6%

1%

2009 actual

19,994

17,360

2,021

613

15,923

2,476

1,595

13,469

6,525

1,877

522

34,413

3,235

854

16,511

61%

68%

59%

4%

89%

6%

1%

2008 actual

18,738

15,996

2,084

658

14,884

2,319

1,535

12,749

5,989

1,710

466

89

a p p e n d i c e s s t u d e n t n u m b e r s

Note: Figures below are Student head count and include all students enrolled regardless of funding source.

university totals

Internal

Distance

total

% change over previous year

Number of international students included in totals above

notes

1

1

2,3

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

18,611 17,458 18,283 19,506 21,461 21,893 20,640 19,366 18,436 17,902 18,637

18,959 18,933 19,336 20,239 20,201 19,543 19,017 17,656 17,055 16,511 17,488

37,570 36,391 37,619 39,745 41,662 41,436 39,657 37,022 35,491 34,413 36,125

16.0% (3.1%) 3.26% 5.65% 4.82% (0.54%) (4.49%) (6.64%) (4.14%) (3.03%) 4.97%

1,132 1,222 1,820 3,445 5,754 6,216 5,790 5,279 4,481 3,985 3,752

Note:

1. By student mode

2. 1997-2000 international figures above are not directly comparable to 2001 figures onwards

3. 1997-2000 figures are international full-fee students only; 2001 figures onwards are all international students regardless of New Zealand residency or funding status

25000

20000

15000

10000

5000

0

1999 2000 2001 2002 2003 2004

Year

2005 2006 2007 2008 2009

Internal

Distance

International

90

E Q U I V A L E N T F U L L - T I M E S T U D E N T S ( E F T S )

Notes

Internal 1

Distance

Total all students regardless of funding sources

1

% change over previous year

Full-fee International students included in Totals above

EFTS Funded by Ministry of Education

% change over previous year

2

3

2002 2003 2004 2005 2006 2007 2008 2009

14,392 16,090 16,159 14,952 14,002 13,315 12,749 13,469

7,135 7,253 7,167 6,897 6,473 6,117 5,989 6,525

21,527

23,342 23,326 21,850 20,475 19,432 18,738 19,994

6.56% 8.43% (0.07%) (6.76%) (6.29%) (5.09%) (3.5%) 6.70%

2,493 4,341 4,809 4,197 3,412 2,671 2,084 2,021

18,543

18,349 17,840 16,931 16,411 16,085 15,996 17,360

(0.30%) (1.05%) (2.77%) (5.10%) (3.07%) (1.99%) (0.55%) 8.52%

Notes:

1. By paper mode

2. These are full-fee international students as per Ministry of Education funding classifi cation 02, 03 and 20

3. As per Ministry of Education Funding Classifi cation 01.

12000

10000

8000

6000

4000

2000

0

18000

16000

14000

2002 2003 2004 2005

Year

2006

2007 2008 2009

Internal

Distance

91

S T U D E N T A G E D I S T R I B U T I O N ( H E A D C O U N T )

Ethnicity Gender

New Zealand Mäori Female

European

Male

Total

Female

Pasifi ka

Male

Total

Female

Male

Asian

Other

Unspecifi ed

Total

Total

Female

Male

Total

Female

Male

Total

Female

Male

Total

Female

Male

Total

Total(%)

<17 17-19

9 248

3 129

12 377

8 1,756

5

951

13 2,707

54

1 34

1 88

201

1 213

1 414

1 129

106

1 235

107

1 104

1 211

18 2,495

11 1,537

29 4,032

0.08%

11%

25-29

115

81

196

985

956

1,941

209

201

369

178

547

1,957

1,133

3,090

410

122

84

206

3,757

2,633

6,390

18%

20-24

147

104

251

1,111

1,090

2,201

248

312

565

298

863

3,805

2,184

5,989

560

216

136

352

6,092

4,124

10,216

28%

35-39

60

53

113

175

123

298

151

141

295

121

416

1,438

767

2,205

292

94

74

168

2,213

1,279

3,492

10%

Note:

• Total all (%)column and row is the percent of the total year fi gure: 2009 = 36,125

• Figures above include all students regardless of funding source

• Student data as at 31st December 2009

2009

30-34

94

49

143

318

264

582

183

180

332

157

489

1,375

859

2,234

363

95

75

170

2,397

1,584

3,981

11%

40+

108

88

196

260

193

453

297

198

615

229

844

3,622

1,824

5,446

495

342

209

551

5,244

2,741

7,985

22%

Total

Total all

(%)

7% 2,433

1,115

3,548

13,961

7,723

21,684

578

410

988

3,050

2,840

5,890

1,218

1,138

3%

10%

39%

21%

60%

2%

1%

3%

8%

2,356

976

683

8%

16%

3%

3%

7%

3%

2%

1,659

22,216

5%

61%

13,909

36,125

39%

92

s t u d e n t e t H n i c i t Y , m O d e a n d G e n d e r ( H e a d c O u n t ) ethnicity mode

New Zealand Mäori Internal

Distance

European

Total

Internal

Distance

Pasifika

Asian

Other

Total

Internal

Distance

Total

Internal

Distance

Total

Internal

Distance

Unspecified

Total

Total

Internal

Distance

Total

Internal

Distance

Total

13,961

239

339

578

2,320

730

3,050

677

541

female

879

1,554

2,433

6,117

7,844

1,218

511

465

976

10,743

11,473

22,216

7,723

220

190

410

2,356

484

2,840

785

353

male

530

585

1,115

3,645

4,078

1,138

358

325

683

7,894

6,015

13,909

2009

21,684

459

529

988

4,676

1,214

5,890

1,462

894

total

1,409

2,139

3,548

9,762

11,922

2,356

869

790

1,659

18,637

17,488

36,125

16%

4%

3%

7%

3%

2%

3%

13%

3%

% total all

4%

6%

10%

27%

33%

60%

1%

2%

5%

52%

48%

100%

Notes:

• Total all (%) column and row is the percent of the total year figure: 2009 = 36,125

• Figures above include all students regardless of funding source

• Student data as at 31st December 2009

93

s t a f f i n G l e v e l s f u l l - t i m e e q u i v a l e n t ( f t e ) s t a f f s t a f f f t e

2008

Colleges

Academic

General

Contract and Trading

total colleges centres of research excellence, support services and administration

Regional Services

Vice-Chancellors Office

Assistant Vice-Chancellor (Academic and International)

Assistant Vice-Chancellor (External Relations)

Assistant Vice-Chancellor (Finance, IT, Strategy, and Commercialisation)

Assistant Vice-Chancellor (Mäori and Pasifika)

Assistant Vice-Chancellor (People and Organisational Development)

Assistant Vice-Chancellor (Research)

Assistant Vice-Chancellor and University Registrar

Centre for University Preparation and English Language Studies

total support services and administration total staff

Note: 2008 figures have been reworked to reflect the change in the AVC reporting structure in 2009

19

154

9

31

359

17

141

70

171

55

1,026

3,013

1,114

471

402

1,987

2009

20

157

13

32

356

19

152

75

171

65

1,060

3,080

1,117

493

410

2,020

94

college

College of Business

College of Creative Arts

College of Education

College of Humanities and Social Sciences

College of Sciences

Total Colleges

total fte s t a f f f t e , b Y c O l l e G e

Academic

General

Contract and Trading

Academic

General

Contract and Trading

Academic

General

Contract and Trading

Academic

General

Contract and Trading

Academic

General

Contract and Trading

Academic

General

Contract and Trading

265

61

72

429

146

63

104

2004

326

133

3

141

36

0

302

125

1,307

595

304

2,206

266

65

60

415

154

71

111

2003

323

155

3

125

33

0

299

110

1,283

623

284

2,190

252

55

118

436

121

62

110

2006

290

113

17

115

34

2

253

206

1,214

517

453

2,184

259

62

67

422

125

51

103

2005

302

123

4

146

36

0

298

123

1,254

570

297

2,121

226

49

137

432

104

47

94

2008

251

97

11

101

35

6

242

158

1,114

470

402

1,987

244

62

115

445

113

48

111

2007

282

97

16

105

35

2

284

174

1,189

526

418

2,133

234

55

154

423

107

47

85

2009

240

103

9

113

37

6

251

156

1,117

493

410

2,020 s t a f f i n G r a t i O s

Funded equivalent full-time students (EFTS) (excluding CUPELS)

Total academic staff incl casual academic

Total general staff incl casual general

2003

22,389

1,283

1,601

2004

22,438

1,307

1,583

2005

20,968

1,255

1,574

2006

19,598

1,214

1,507

2007

18,541

1,188

1,522

2008

17,869

1,114

1,456

2009

18,882

1,117

1,553

college

College of Business

College of Creative Arts

College of Education

College of Humanities

& Social Sciences

College of Sciences

university total ratio of efts to academic staff

23.1:1

2007 ratio of General to academic staff

0.35:1

16.0:1

16.3:1

16.9:1

0.33:1

0.43:1

0.25:1

ratio of efts to academic staff

23.7:1

2008 ratio of General to academic staff

0.39:1

17.2:1

16.6:1

18.1:1

0.35:1

0.45:1

0.22:1

ratio of efts to academic staff

25.2:1

2009 ratio of General to academic staff

0.43:1

16.1:1

17.1:1

21.4:1

0.33:1

0.44:1

0.24:1

9.9:1

15.6:1

0.64:1

1.28:1

10.1:1

16.0:1

0.56:1

1.31:1

11.0:1

16.9:1

0.59:1

1.39:1

95

96

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