aut university · 2017-11-20 · ar-03/2011-400 aut university march 2011 director of planning...

AR-03/2011-400

aut university march 2011 Director of PlanningPrivate Bag 92006, Auckland 1142City Campus, 55 Wellesley Street EastAuckland, New Zealand

TEL: 09-921-9999FAX: 09-921-9983 www.aut.ac.nz

aut university 2010 annual report

annual report2010

manu täwhiowhio >>In many cultures the bird is a symbol of navigation.Manu Täwhiowhio or ‘bird satellite’ stands proudly at the entrance to AUT University, symbolic of our role as navigator for our students, equipping them with the skills and values that will guide them toward successful careers.

welcome to aut university

[[

E ngä mana, e ngä reo, e ngä hau e whäTënä koutou katoa.

Nau mai piki mai, haere mai ki Te Wänanga Aronui o Tamaki Makau Rau.

Piki mai ki tënei Whare WänangaHaere mai ki te whiriwhiri ngä körero ka hiki tonu te möhiotangaKia tutuki ai koe ki ngä whäinga o ngä whänau me ngä iwi whänui o te ao.Tënä koutou katoa.

To the many communities of the world, greetings.

Welcome to AUT University.

Come to AUT to participate in discussion and higher learning opportunities. Achieve your goals, those of your family and those of the local and international community.

Tënä koutou katoa.

To fosTer excellence, equiTy and eThics

in learning, Teaching, research and scholarship,

and in so doing serve our regional, naTional

and inTernaTional communiTies.

te whakatipu tino pükekotanga, tauriteritenga me ngä mahi tika o roto i te akomanga, whakaako, rangahau me ngä pou mätauranga me te mea hoki ka manaakitia o tätau rohe, me ngä häpori o te motu me era o täwahi.

2010 ann ual report 1

tHe Year: 2010 TheCounciloftheAuckland UniversityofTechnology.....................................2 Chancellor’sForeword............................................3 OfficersoftheAuckland UniversityofTechnology.....................................4 Vice-Chancellor’sReport........................................5 FinancialReview......................................................9 KeyFactsandFigures...........................................10 StatementofManagement Responsibility....................................................13 IndependentAuditor’sReport..............................14

reportS FacultyofAppliedHumanities.............................18 FacultyofBusinessandLaw................................19 FacultyofDesignand CreativeTechnologies.......................................20 FacultyofHealthand EnvironmentalSciences....................................21 TeAraPoutama.....................................................22 EqualOpportunities..............................................23 StudentServices...................................................24 StateMent oF reSourCeS Library...................................................................26 InformationTechnologyServices.........................27 LandandBuildings................................................28 Staffing..................................................................30 StateMent oF SerVICe perForManCe ExcellenceinEducation LearningandTeaching.......................................32 ResearchandDevelopment..................................35 Engagement InternationalAdvancement..............................38 ExcellenceinEducation CurriculumDevelopment..................................40 Engagement MäoriAdvancement PasifikaAdvancement CommunityRelationships.................................42 StaffDevelopment...............................................46 Sustainability........................................................48 DIreCtorY oF InDuStrY aDVISorY CoMMItteeS IndustryAdvisoryCommittees............................52

FInanCIal StateMentS IncomeStatement.................................................56 StatementofComprehensiveIncome.................57 BalanceSheet........................................................58 StatementofChangesinEquity...........................59 StatementofCashFlows......................................60 NotestotheConsolidated FinancialStatements.........................................61

contents

2 2010 annual repo rt

For the Year Ended 31 December 2010

chancellor the Rt Revd and the Hon sir Paul Reeves ONZ,GCMG,GCVO,QSO,KSt.J,MA,LTh Co-optedmember

Pro-chancellor Jocelyn Martin LLB AppointedbytheMinisterofEducation

secretary to council Dr Andrea Vujnovich LLB(Hons),MSc(Hons),PhDAuckland LegalCounselandDirectorofGovernance

Members Uluomatootua Aiono BSc,MBA AppointedbytheAucklandUniversityofTechnologyCouncil(afterconsultation withPacificIslandorganisationsandcommunitiesofNewZealand)

Dr Pat Alley MBChB,FRACS,DipProfEthics (afterconsultationwiththeCouncilofTradeUnions)

Dr Alan cocker MA(Hons),PhDAuckland ElectedbytheacademicstaffoftheAucklandUniversityofTechnology

Filomena Davies BA(Hons),NZLSC,ALIANZA ElectedbythegeneralstaffoftheAucklandUniversityofTechnology

Dr Henry Duncan BSc,MS,PhDUCLA,DipTchg AppointedfromthenominationsoftheAucklandUniversityofTechnology AcademicBoard

Philippa Dunphy BHSc,CFA Co-optedmember

Rangimarie naida Glavish JP AppointedbytheAucklandUniversityofTechnologyCouncil (afterconsultationwith,andfromthenominationsof,thelocaliwi) (resigned26July2010)

Lex Henry LLB AppointedbytheMinisterofEducation

John Hill BArch(Hons) AppointedbytheMinisterofEducation

Pauline Kingi CNZM,BA,LLB,LLM,DipCrim AppointedbytheAucklandUniversityofTechnologyCouncil(afterconsultation with,andfromthenominationsof,theAucklandDistrictMäoriCouncil)

John Maasland MA,FIOD AppointedbytheAucklandUniversityofTechnologyCouncil (afterconsultationwiththeCentralOrganisationofEmployers)

Derek Mccormack MSc,DipTchg Vice-ChancelloroftheAucklandUniversityofTechnology

Veronica ng Lam BHSc(Podiatry) AppointedbytheAucklandStudentMovementatAucklandUniversityofTechnology

John o’Hara MBIE AppointedfromthenominationsoftheAucklandUniversityofTechnology AlumniAssociationInc(resigned1June2010)

Paul Phillips BE,MBA Co-optedmember

Danielle schofield AppointedbytheAucklandStudentMovementatAucklandUniversityofTechnology

James schofield BCom,MSc(Econ),FCA Co-optedmember

tHe coUnciL oF tHe AUcKLAnDUniVeRsity oF tecHnoLoGy


officiallyopenedinMarch2010withmorethan400foundingstudents.Bytheendof2010,applicationsexceededavailableplacesfor2011,anearlyindicatorofthesuccessoftheCampusanditslikelyfutureeconomicandsocialcontributiontotheregion.ThefirststageofdevelopmentbeganatAUT-MillenniumCampusasaresultofsubstantialgovernment,localcouncilandprivateinvestorgrants;thiscampuswillbeNewZealand’spremiersportsscienceresearchfacilityandtrainingcentreforhigh-performanceathletes.DevelopmentoftheWGPrecinctontheCityCampushasalsobegunandthesenewfacilitiesarelikelytotransformtheteachingandlearning,researchandscholarshipexperiencesofcurrentandfuturegenerations.

In2010,weinvitedtheextendedAUTcommunitytojoinusincelebratingthecompletionofourfirstdecadeasauniversity,acknowledgingthesignificantcontributionwearemakingtotertiaryeducationforAucklandandNewZealand.IndevelopingournewStrategicPlan2011-2015,AUT’sCouncilandExecutiveManagementTeamspenttimereflectingonpastandpresentachievements,andarenowconsideringhowthesesuccessesmightshapethecourseoftheUniversity’sfuture.

ThisAnnualReportdemonstratesthatAUTUniversitymanageswellandachievesitstargets.Weembracechangeandourapproachistofindnewopportunities,ratherthansimplytodefendestablishedpositions.Iamimpressedbythethoroughnessofourconsultationwiththemanycommunitiesofthisdiversecity.Perhapsitcomesfrombeingayounguniversity,onlytenyearsold,butIhopewecancontinuetobeanimbleandadaptableorganisation.

ItismypleasuretothankallthemembersofCouncilwhogivesowillinglyoftheirtimeandexpertisetoadviseandguidetheVice-ChancellorandExecutiveManagementTeam.TheconstructiverelationshipwehaveiscrucialtoAUTUniversity’sdevelopment.IhopeyouwillsharethepridethatIfeelforAUTintheachievementsrecordedinthisAnnualReport.

sir Paul ReevesChancellor

Thelastfewyearshavebeenchallengingforuniversities,bothhereandabroad.Internationally,governmentshaveadoptedwidelydifferentapproachestotertiaryfundinginresponsetotheglobalfinancialrecession.TheAustralianGovernmentintroducedmajorspendinginitiativestobroadenaccesstohighereducationandsupportresearchandinfrastructuredevelopments,whiletheBritishgovernmentannouncedsignificantreductionsintuitionsubsidiesandresultingfeeincreases.TheNewZealandGovernmentrespondedbysignificantlyreducingstrategicandcapitalfunds,whileonlymodestlyincreasingstudent-basedfundingfortheuniversities.However,studentdemandcontinuedtoexceedthenumberoffundedplacesand,forthefirsttimeinAUT’shistory,CouncilendorsedactiontorestrictenrolmentsinJuly2010.ThiswasnecessaryiftheUniversitywastoremainwithinitsmandatedmaximumnumberofplaces,andbeconsideredforadditionalfundingandstudentplacesin2011.

Inspiteofthedecisiontorestrictenrolments,totalstudentenrolmentsat18,952EFTSwerethehighestintheUniversity’shistory,up5%from2009.Continuingthetrendsofpreviousyears,agreaterproportionofourstudents(82%)studiedatdegreeandpostgraduatelevel.TheUniversitywasalsoproactiveaboutgrowingitsinternationalstudentcohort,with4,384studentssourcedfrom93countriesin2010.1

AUT’sresearchperformancecontinuedtodevelopdespiteconsiderablecompetitionforresearchfundswithinthesector.TheUniversitysignedexternalresearchcontractswithatotalvalueofmorethan$16million.ThebiggestcontributorwastheHealthResearchCouncilofNewZealandwhichawardedAUTresearchersinexcessof $8millioninfunding.AUTwasalsooneofsix researchorganisationsselectedbytheGovernmenttoparticipateinaschemetoincreasethetransferoftechnologyandknowledgetobusiness.ThisistestamenttothecapabilitiesofouracademicstaffandtoAUT’sgrowingresearchreputation.AUTcontinuestocommercialiseresearchdiscoveriesanddevelopnewtechnologies.Threeofthe21start-upcompanieshostedbyAUT’sBusinessInnovationCentrewereinthepost-incubationphaseduring2010andonegraduatecompany,Enervate,isnowbasedinSingapore,afterreceivinga$0.5milliongrantfromtheSingaporeEconomicDevelopmentBoard.

TheUniversitycontinuedtofosterwiderparticipationineducation,oftenincollaborationwithcommunitypartners.OurManukauCampus

cHAnceLLoR’s FoRewoRD

1 AlargernumberofsourcecountriesisreportedherethaninKeyFactsandFigureswhichreportsinternationalstudents studyinginMinistry-fundedprogrammesonly



Vice-chancellor Derek MccormackMSc,DipTchg

Deputy Vice-chancellor Professor Robert AllenBA(Econ),PhDEdinburgh

Pro Vice-chancellors and Deans

ProVice-Chancellor(International)Dean,FacultyofAppliedHumanities

Professor nigel HemmingtonBSc(Hons),PhDSurrey,FCIM,FICPD,FIH,CharteredMarketer

Dean,FacultyofBusinessandLaw2 Professor Des GraydonBCom,CADr Geoff Perry BA,MA,MPhil(Hons),PhDAuckland,DipCom,PGDipSocSci(Dstn),DipTchg

Dean,FacultyofDesignand CreativeTechnologies

Desna JuryMEd(Hons),DipTchg,FDINZ,FRSA

ProVice-Chancellor(NorthShore)Dean,FacultyofHealthandEnvironmentalSciences

ProfessorMaxAbbottBA,BSc,MA(Hons),PhDCanterbury,DipClinPsych,TColDip(Dstn), MNZCCP,MRSNZ

ProVice-Chancellor(MäoriAdvancement)ProVice-Chancellor(LearningandTeaching)andDean,TeAraPoutama(FacultyofMäoriDevelopment)

AssociateProfessorPare KeihaQSO,MBA,MComLaw,MSc,PhDAuckland,FRSA,MInstD,MRSNZ

ProVice-Chancellor(Research)3 Professor Richard BedfordQSO,MA(Hons),PhDAustralian National University,FRSNZ

ProVice-Chancellor(InnovationandEnterprise)4

Professor John RaineBE(Hons),PhDCanterbury, CEng,FIMechE,FIPENZ,MSAE,MASPACI

ProVice-Chancellor Professor Philip sallisBA,PhDCity(UK),FNZCS,MRSNZ,MACM,MIEEE

ProVice-Chancellor Professor ian shirleyMA(Hons),PhDMassey

General Managers

CorporateServices5 Richard HallOBE,MNZM,MAFinanceandEstates JudithMcKayBA,BCom,CA,MInstD,MNZSCTUniversityRelationsandAdvancement VivienBridgwaterDipTchg

Legal counsel Dr Andrea VujnovichLLB(Hons),MSc(Hons),PhDAuckland

internal Auditor Alastair BurrowsCFIIA,AIIA(NZ)

Bankers AnZ national Bank Limited

Auditor Audit new Zealand on behalf of the Auditor-General

oFFiceRs oF tHe AUcKLAnDUniVeRsity oF tecHnoLoGy

2 FollowingthedeathofProfessorDesGraydoninApril2010,DrGeoffPerryassumedthisroleinanactingcapacityandwas subsequentlyconfirmedinthepositioninDecember20103 ProfessorRichardBedfordwasappointedasProVice-Chancellor(Research)inApril2010.ProfessorIanShirley,whopreviouslyheld thepositionofProVice-Chancellor(ResearchandDevelopment),retainsthepositionofProVice-Chancellor4 ProfessorJohnRainewasappointedasProVice-Chancellor(InnovationandEnterprise)inApril2010.ProfessorPhilipSallis,who previouslyheldthisposition,retainsthepositionofProVice-Chancellor5 JohnWilliams,GeneralManager,ServiceandOperationsleftAUTinAugust2010.RichardHallwasappointedasActingGeneral Manager,ServicesandOperationsandwasconfirmedintheroleofGeneralManager,CorporateServicesinNovember2010;this positionreplacesbothGeneralManager,ServicesandOperationsandHeadoftheVice-Chancellor’sDepartment


Vice-cHAnceLLoR’s RePoRt

2010wasayearofenormousachievementforAUTUniversity.WecelebratedourfirstdecadeasauniversityandhadahighlysuccessfulfirstyearatourManukauCampus.Weenrolledarecordnumberofstudents,includingthehighest-everproportionatdegreeandpostgraduatelevel,andweachievedanunprecedentedlevelofincome,includingthehighesteveramountofresearchfundingawarded.Wealsobeganworkonourlargestcapitalprojecttodate,theWGLearningPrecinctontheCityCampus.

Aswelooktothenextdecade,wewillcontinueourprogrammeofsignificantchange,particularlyinrelationtoourresearchandstudentprofiles.However,AUT’scorequalitiesareunchanged. TheUniversitywillremainoutwardlooking;itwillcontinuetorecognisethetransformativepowerofhighereducationforindividualsandforthecountry;anditwillretainitscommitmenttoofferingthisopportunitytopeoplefromeveryNewZealandcommunity.Significantchallengeslieaheadhowever,includingtheneedto:managegrowth,withingovernmentenrolmentrestrictions;andretainafocusonaccesstohighereducationwhileGovernmentplacesgreateremphasisonstudentperformance.

Onasaddernote,manyofAUT’scommunitywereaffectedbythepassingofProfessorDesGraydon,DeanoftheFacultyofBusinessandLaw,whodiedinAprilafterashortillness.His30yearsofservicetoAUTleftbehindalegacyofstrongleadershipandinnovativeapproachestotertiaryteachingandlearning.ThousandsofstudentsandstaffbenefittedfromhispassionandstewardshipandhelefthismarkontheUniversityinnumerousways,notleastthroughthedevelopmentoftheBusinessSchoolbuilding,whichwonnumerousarchitecturalawardsforitsinnovativedesign.

eXceLLence in eDUcAtionIn2010,theMinisterforTertiaryEducation,HonStevenJoyce,introducededucationalperformanceindicatorsforalltertiaryinstitutions.Theresultswillbemonitored,madepubliclyavailableandusedtodetermineuptofivepercentofanorganisation’sstudent-basedfundingfrom2012.AlthoughAUTisbroadlysupportiveofthisinitiative,weremaindissatisfiedwithsomeaspectsofthemonitoringsystem,whichfailtoaccountfortheinfluenceofwidercontextualfactorsonoverallresults.ForAUT,theseincludeannualgrowthinEFTS,considerablechangestoourmixofprovisionasweshiftfurthertowardshighereducation,andlargerproportionsof

Mäori,Pasifikaandpart-timestudentsthanmanyoftheotheruniversities.

TheUniversitycontinuedtodevelopthequalityandrelevanceofourcurriculumthroughout2010.InlightofAUT’scommitmenttoincreasingprovisionatdegreeandpostgraduatelevel,wediscontinuedorreducedEFTSallocationsforseveraldiplomaandcertificateprogrammes. Intheirplace,weaddedthreenewMastersqualificationsandanumberofnewmajorsfordegreeprogrammes.

AUTadoptedtheLearningandTeachingEnabledbyTechnology(LATENT)strategyin2010,whichembedstheuseofflexible-learningactivitiesthroughouttheUniversity.ThestrategywasinformedbyexcellentinputfromtheAucklandStudentMovement@AUT(AuSM)onstudents’perceptionsoflearningtechnologies,andbuildsonthesuccessofAUTonline,earlierupgradestoaudio-visualandinternetfacilities,andenhancedwirelessaccessacrossallcampuses.TheCentreforLearningandTeachingwasestablishedtoencourageteachingexcellenceandenhancetheuseofinnovativelearningtechnologiesacrosstheUniversity.During2010,activitiesfocussedonimprovingstudentretentionandsuccess,anddevelopingthedigitalcapabilitiesofstaff.AUT’sadmissiontotheAppleUniversityConsortium,whichpromotesdigitalcreativity,providedfundingformorethan20staffandstudentsfromAUTtoattendtheWorldwideDevelopers’conferenceinSanFrancisco,andtheDevWorldandCreateWorldconferencesinAustralia.

TheUniversity’sResourcesforEnhancingLearningandTeachinggrantsaredesignedtopromoteinnovationacrossaparticularprogrammeordepartment.Fourgrantsof$25,000eachwereawardedtofacultiesin2010,alongwithsmallergrantstoacombinedcentralunit($16,000)andtotheSchoolofCommunications($5,000).Therecipientshaveusedthefundingtoimplementarangeofnewinitiatives,includinge-portfoliosforphysiotherapyandproductdesignstudents.

The2010Vice-Chancellor’sAwardsforExcellenceinTeachingagainrecognisedhighcalibrecandidates;awardsweremadetostafffromtheSchoolofCommunicationStudies;TeAraPoutama;andInterprofessionalEducationwithintheFacultyofHealthandEnvironmentalSciences.TheawardsreflectthediversityofgoodpracticeacrossAUTandremainakeyvehicleforacknowledgingthesuccessofouracademicstaff.


ReseARcH AnD DeVeLoPMent2010wasthemostsuccessfulyearinAUT’shistoryforgeneratingresearchfunding,withtheUniversityreceivingover$8.5millionfromtheHealthResearchCouncilofNewZealand(HRC)alone.ProfessorValeryFeiginreceived$4.94millionforafive-yearinvestigationintomeasuringandreducingtheburdenofstrokeinNewZealand.DrScottDuncanwasgranted$1.19millionoverthreeyearsfora‘healthyhomework’programmethatprovidesphysicalactivityandnutritioninterventionsforchildren.ProfessorKathrynMcPhersonreceived$0.73millionforathree-yearstudyofrecoveryandadaptationexperiencesafterdisablingtraumaticbraininjuries,andafurther$147,000forafeasibilitystudyonchronicobstructivepulmonarydisease.ProfessorPhilipSchluterwasgranted$0.73millionforatwo-yearinvestigationintothehearingstatusofPasifikachildren.Inadditiontoitsmainfundinground,theHRCalsoawardedAUTatotalof$0.83millionforfiveCareerDevelopmentAwards,includingapost-doctoralfellowshipandtheErihapetiRehu-MurchieResearchFellowshipinMäoriHealth.DrPeterSkillingalsoreceivedfundingfromtheMarsdenFund’shighly-contestableFastStartgrants.TheseawardssignifythestrengtheningofAUT’sresearch,particularlyinhealthsciences.

AUTcontinuedtodevelopourresearchpartnershipsin2010.AUTacademicsworkedwiththeMinistriesofHealth,EconomicDevelopmentandWomen’sAffairs,aswellastheAucklandRegionalTransportAuthority.AUTalsobrokeredseveralsignificantpartnershipswithbusinessandtheinternationalresearchcommunity.ArecentagreementwithTelecomwilladvanceourradioastronomyprogrammebyprovidingaccesstoTelecom’s30-metreWarkworthsatellitedish.Thedishwillbeconvertedintoamodernradiotelescopewhich,whencombinedwithAUT’sexisting12-metreradiotelescope,willcreateaworld-classresearchfacility.ThepartnershipsavesAUTapproximately$25-$30millionininstallationcostsandthenewfacilitywilladvanceresearchanddevelopmentinarangeofdisciplines,includingphysics,mathematics,mechanicalandelectricalengineering,high-performancecomputingandtelecommunications.ItwillalsoenhanceNewZealand’scapabilitytoco-hosttheSquareKilometreArray(radiotelescope)withAustralia,shouldthatbidbesuccessful,andallowAUTtoparticipateinseveralprestigiousglobalresearch,real-timedatatransfer,andobservationnetworks.

Researchcommercialisationisanintegralpart ofAUTUniversity’sresearchandbusinessengagementstrategy.Sevenearly-stageprojectsreceivedgrantsfromUniCom’sTechnologyJumpStartandAUT’sCommercialisationFundstohelpdeterminemarketandtechnologicalfeasibility. TheUniversityiscurrentlydevelopingasustainablebusinessmodelforthethreeInnovationandEnterprisebusinessunits:AUTEnterprisesLimited(AUTEL),theBusinessInnovationCentreandtheCentreforInnovativeLeadership.Closecooperation,collaborationandresource-sharingnetworkswerealsoestablishedbetweenthethreeunitsandtheUniversityResearchOffice.

CoLab’svirtualrealitysuite(VRS)officiallyopenedatAUTinMayandincludesarangeofpioneering3Ddevelopmenttechnologies.Theassociated3Dvisualisationclusterprovidesinformation-sharingandcollaborationopportunitiesfororganisationsinterestedinusingthetechnology.SeveralpostgraduatestudentsandresearchersarebasedattheVRS,workingondiverseprojectssuchasinteractivemarketingapplications,drivingsimulators,andstrokerehabilitationaids.

enGAGeMent – inteRnAtionAL ADVAnceMentAUT’snewInternationalStrategicPlan2011-2013articulatestheUniversity’scommitmenttointernationalisationinsixkeyareas:internationalrecognition;researchandcollaboration;internationalisationofthecurriculum;campuses,servicesandfaculties;internationalstudents;andstudentandstaffmobility.Theseconsiderationswillframeourapproachtoeducationandresearch,includingdevelopingnewinternationalpartnershipsandtherecruitmentofinternationalstudents.

During2010,AUTcontinuedtoexpandourinternationalprofilebydevelopingandconsolidatingstrategicpartnershipswitharangeofprestigiousinstitutions,particularlyintheAsia-Pacificregion,butalsomorewidelyinEurope,theMiddleEastandSouthAmerica.AsChairofUniversitiesNewZealand,Iledtheuniversities’delegationattheShanghaiExpo2010EducationForum.Duringthisvisit,AUTstrengthenedtieswithChinesepartnersandestablishedseveralnewarticulationagreements.AtripartiteresearchagreementbetweenAUT’sKnowledgeEngineeringandDiscoveryResearchInstitute(KEDRI),ShanghaiJiaoTongUniversityandXinjiangUniversitywasfinalised,andKEDRIalsoestablishedajoint


researchagreementwiththeChineseAcademyofScienceInstituteofAutomationinBeijing. Theresultingresearchintodetermininganindividual’sriskofbraindiseasewillbefundedbya$300,000grantfromtheMinistryofResearch,ScienceandTechnology.

AUTrenewedmemorandaofunderstanding(MOU)withThailand’sChulalongkornandKhonKaenUniversities,coveringactivitiessuchasresearchcollaborationandstudent/staffexchanges.AnMOUwasalsosignedwithBINUSUniversity,Indonesiawhichislikelytoresultinseveralnewarticulationagreementsfrom2011.AnotheragreementwithNamseoulUniversitywillattractanumberofSouthKoreanstudentstoAUTtostudyEnglishlanguageandhospitality.

TheSchoolofComputingandMathematicalSciencesbeganteachingprogrammesatVietnam’sUniversityofScience,aspartofacross-creditagreement.TheSchoolofAppliedSciencesandtheFacultyofBusinessandLawhavesimilararrangementswithotheruniversitiesinChinaandVietnam.TheMiddleEastremainsasignificantgrowthareaforAUTwithongoingcurriculumdevelopmentanddeliveryinOman,theUnitedArabEmiratesandBahrain.

enGAGeMent – MÄoRi ADVAnceMent, PAsiFiKA ADVAnceMent AnD coMMUnity ReLAtionsHiPsAUTexperiencedrecordenrolmentsforMäoristudentsatdegreelevelandhigher,upfourpercentfrom2009.MäoristudentshaveperformedstronglyatAUTinrecentyears,rankingabovethesub-sectormedianforMäoricoursecompletionsaccordingtoTECdata.AUTfocussedonexpandingandsupportingourMäoripostgraduatecohort,throughinitiativessuchastheMäoriandPacificPostgraduateWänangaseries,postgraduatewritingretreatsandextendedHäpai(graduateassistant)rolesforpostgraduatestudents.

TheMäoristaffnetworkisdynamicandvibrant,andmakesasignificantcontributiontothelifeandcultureofAUT.AspartofitsaimtobecometheemployerofchoiceforMäori,theUniversityoffersanintegratedprogrammeofacademicsupport,successionplanningandcareerdevelopmentforbothstaffandstudents.TheUniversitycontinuestoencourageallstudentsandstafftoimprovetheirunderstandingoftikangaMäoriandtereoMäori.Tothisend,weintroducedanewMasterofArtsspecialisationintereoMäoriin2010whichusesSmartBoard

technologytoteachstudentsacrossseveralexternalsites.AUTalsoprovidesopportunitiesforinternationalstudentstoexperienceMäoricultureandlanguage,includingthepopularnohomarae.

AUTalsostrivestoimprovePasifikaacademicoutcomes,andcurrentlyhasthelargestproportionofPasifikastudentsintheuniversitysub-sector(12%).Althoughwehaveimplementedanumberofcentrally-andfaculty-basedsupportinitiatives,theUniversityrecognisesthatmoreneedstobedonetoimprovethesuccessofourPasifikastudents.

AUTaimstocreateacriticalmassofPasifikapostgraduatestudents,withaparticularfocusondoctoralcandidatesasapotentialsourceofacademicstaff.ThePasifikaPostgraduateStudentshipprogrammewasestablishedin2007tosupportthisgoal;sevenmembershavesubsequentlycompletedMastersdegreesandonePhDcandidaterecentlysubmittedherthesis.PasifikastudentsalsohavetheopportunitytopresenttheirresearchtootheradvancedstudentsfromuniversitiesinNewZealandandthePacificthroughtheBuildingResearchCapabilityintheSocialSciences(BRCSS)NationalPacificPostgraduateTalanoaseries.Furtherafield,21postgraduatestudentsfromtheUniversityoftheSouthPacificintheCookIslandswereawardedAUTqualificationsin2010.

AUTiscommittedtomaintainingcloserelationshipswithourlocalcommunities.TheUniversityengageswithitsmanystakeholdersthroughestablishedconsultationnetworks,providesscholarshipstoincreaseaccesstohighereducationamongtargetgroups,andseekstoincreaseaspirationfor,andsuccessin,highereducationthroughtheAgentsofChangeandRangatahiprojects.Bothprogrammestakeaholisticapproachtopreparingstudentsforhighereducation,incorporatingrole-modelsandencouragingfamily/whänauinvolvement.TheRangatahiprojectoffersindividualmentoring,academicsupportandemploymentopportunitiestoyoungMäorihealthsciencestudents,facilitatingbothshort-termretentionandlong-termcareersuccess.In2010,approximately20individualsparticipatedintheprogramme.AgentsofChangehasawiderfocus,withaninterrelatedseriesofprogrammestailoredtodifferentstudents’needs,including:leadershipandpersonaldevelopmenttrainingforprefects;practicalandexperientiallearningopportunitiesforYear10boys;andcareerdaysandmediation


trainingforstudentswithaninterestinthejusticesystem.AUTalsoworkedwithSpecialOlympicsNewZealandtocreatealeadershipdevelopmentprogrammeforelitedisabledathletes.Studentsfrommorethan50schoolswereinvolvedinAgentsofChangethroughout2010andtheresponsefrombothparticipantsandtheirschoolshasbeenhighlypositive.

sUstAinABiLity – stRAteGic DeVeLoPMentsThefinancialmanagementandperformanceoftheUniversityin2010wasexcellentdespiteeconomicpressuresontheuniversitysector.AUTmetallitsfinancialcovenants,somebyasignificantmargin.Revenueincreasedby$27million;ofthis,$24millionwasstudent-related,reflectinggrowthindomesticandinternationalenrolments,and$3millionwasfromadditionaltradingactivities.Theadditionalrevenuewasoffsetbyanincreaseinsalariesandsupportexpenditureof$13millionanda$4millionincreaseindepreciation.

Thenetsurplusof$18millionwasmorethandoublethe2009surplusof$8millionandwas36%aheadofbudget.Thesurpluswillrelievesomeofthefinancialpressuresexpectedin2011,includingthelossofapproximately$8millionofGovernmentfundingfromthetripartiteadjustmentfundandseveraltrainingcontracts.AUT’scommitmenttofundingthe$97millionWGPrecinctoverthenexttwoyearswillrequiretheUniversitytoremainfiscallyprudenttoensurethatallfinancialcovenantscontinuetobemet.

In2010,AUTconvertedthefinalthirdoftheCrown’s$25millionSuspensoryLoanfortheManukauCampusintoequity.Basedon2010results,AUTwillbeeligibletoapplyfortheearlyconversionofpartofthe$50millionSuspensoryLoantoadvanceresearchcultureandcapability.

ClassesbeganatManukauCampuson1March2010,ahistoricdayforboththeUniversityandCountiesManukaucommunities.Laterthatmonth,PrimeMinisterJohnKeyofficiallyopenedtheManukauCampusataceremonyattendedbyanumberofdignitariesincludingfivecabinetministers,HonPhilGoffandMayorLenBrown.Theeventincludedalarge-scalecelebrationtowelcomethecommunitytotheCampus.Asecondphaseofdevelopmenthasnowcommenced,extendingteachingspace,providingdedicatedpostgraduateareasandupgradingcafeteriaandconferencefacilities.

TheAUT-MillenniumOwnershipTrustreceived$15millioningovernmentfundingforanewnationaltrainingcentreforhigh-performanceathletesbasedattheAUT-MillenniumCampus.ThisinvestmentwillcontributetothefirstphaseoftheCampus’capitaldevelopmentplan,whichincludesAUTlaboratoriesandapostgraduatecentre.ThethenNorthShoreCityCouncilalsoallocated$10milliontowardsasecond25-metreswimmingpool.Thefacility’sdevelopmentandprofilehavesurgedaheadsincetheTrustwasformedin2009.Thisisevidencedbyanumberofprivatedonations,including$1.1millionreceivedtodatefromphilanthropistOwenGlennwiththepotentialforafurther$2.75million.

AsignificantstepintheevolutionoftheCityCampusalsobeganin2010,withinitialdevelopmentworkbeginningonourlargest-everproject:theWGLearningPrecinct.ThenewbuildinganditssurroundswillconnecttheCityCampusandlinkittotheCBD.Itwillutilisethelatesttechnologiestoofferinspiringlearningandsocialspaces,reflectingAUT’stransformativeapproachtoeducation.Plansincludenewlecturetheatres,televisionstudios,anintegratedperformancecapturetheatreandacafé.Alllobbiesandbreak-outspaceswillbedesignedascollaborativesocialstudyareascateringformultiplemethodsoflearning.

concLUsionThe2010accomplishmentsnotedinthisreportaresignificant,ifonlyrepresentingafractionofAUT’sachievementssincebecomingauniversityin2000.Inthenexttenyears,IexpectAUTwillbecomeoneofNewZealand’stwolargestuniversities.ItisalsoclearthatAUThasthequalitiesandthepotentialtobeamongstthiscountry’sleadingteachingandresearchinstitutions.Thechallengewillbetoremainoutwardlookingandliveuptoourclaimtobetheuniversityforthechangingworld.Weembracethechallengeandlooktothefuturewithconfidence.

Derek MccormackVice-Chancellor


FinAnciAL ReViewFor the Year Ended 31 December 2010

Key FinAnciAL inDicAtoRs Un i v ersi ty 2010 2010 2009

Actual Budget Actual

operations $000s $000s $000s

total revenue 287,391 282,638 260,122

total expenses before finance costs 265,496 264,385 248,218

surplus before finance costs 21,895 18,253 11,904

Finance costs

Interestonborrowings 1,072 1,987 1,068

Financechargesonfinanceleases 2,476 2,825 2,788

total finance costs 3,548 4,812 3,856

total expenses 269,044 269,197 252,074

net surplus 18,347 13,441 8,048

cash Flows

Operatingcashreceipts 291,724 282,639 268,692

Operatingcashpayments 232,780 239,508 216,786

net cash flows 58,944 43,131 51,906

Property, plant & equipment – net book value 464,525 462,617 461,822

Debt

Bankborrowings 33,550 55,300 48,700

Financeleases–current 5,079 5,908 5,273

Financeleases–term 36,851 38,042 37,835

total debt 75,480 99,250 91,808

equity 354,850 352,874 336,636

operating ratios

Netsurplus/revenue 6.4% 4.8% 3.1%

Cashratio 125% 118% 124%

Interestcoverratio 6.2 3.8 3.1

capital ratios

Debtcoverratio 1.3 2.3 1.8

Debt/debt+equity 18% 22% 21%

10 2010 annual rep o rt

Key FActs AnD FiGURes 2010 2010 2009 2008 Budget Actual Actual Actual

MoEdomesticEFTS 15,514 15,391 14,767 13,573

OtherSAC-fundedEFTS6 57 98 66 52

MoESAC-fundedEFTS 15,571 15,489 14,833 13,625

InternationalEFTS 2,260 2,445 2,257 2,295

Domestic + international eFts 17,831 17,934 17,090 15,920

ContractEFTS 277 114 109 148

CommunityEducationEFTS 208 675 575 336

TotalprogrammeEFTS 18,316 18,723 17,774 16,404

AUTInternationalHouseEFTS 170 229 289 295

total eFts 18,486 18,952 18,063 16,699

total number of students 27,141 26,002 24,484

DoMestic stUDents in MinistRy-FUnDeD PRoGRAMMes

2010 2009 2008

ethnicity7

NZEuropean/Pakeha 42% 42% 43%

Mäori 10% 10% 9%

Pasifika 12% 11% 10%

Asian 27% 27% 27%

Other 10% 10% 11%

Gender

Female 61% 62% 62%

Male 39% 38% 38%

Age

Under25years 62% 61% 61%

25–39years 26% 26% 25%

40+years 12% 13% 14%

Full-time / Part-time

Full-time 66% 66% 63%

Part-time 34% 34% 37%

6 ThisincludesInternationalMoEResearchEFTSandOnshoreInternationalPhDEFTS7 Thefiguresforethnicbreakdownofstudentstotal101%duetorounding

2010 annual report 11

eFts By FAcULties

2010 2010 2009 2008 Budget Actual Actual Actual

FacultyofAppliedHumanities 3,896 3,862 3,528 3,288

FacultyofBusinessandLaw 4,763 4,971 4,722 4,361

FacultyofDesignandCreativeTechnologies 4,300 4,360 4,274 3,903

FacultyofHealthandEnvironmentalSciences 4,828 4,855 4,572 4,250

TeAraPoutama 86 90 88 83

AUTInternationalHouse 170 229 289 295

Universityprogrammes 443 585 590 519

total 18,486 18,952 18,063 16,699

DoMestic eFts

Ministry-fundedprogrammes 2010 2009 2008 eFts EFTS EFTS

Postgraduate 1,662 1,491 1,173

Undergraduate 11,034 10,118 8,650

Sub-degree 2,690 3,129 3,714

Notcategorised 5 29 36

total 15,391 14,767 13,573

inteRnAtionAL stUDents in MinistRy-FUnDeD PRoGRAMMes

Internationalstudentswereenrolledfrom81countries.Thetoptenarelistedbelow.

2010 2010 2009 numbers Percentage Percentage

China 1,046 33% 33%

India 610 19% 21%

SouthKorea 252 8% 7%

SaudiArabia 156 5% 4%

Vietnam 151 5% 4%

Russia 104 3% 3%

Malaysia 100 3% 3%

Taiwan 83 3% 3%

HongKong 58 2% 2%

RepublicofFiji 56 2% 2%

Other(71countries) 538 17% 18%

total international students in Ministry-funded programmes 3,154


8 Externalresearchfundingrepresentsthetotalamountofexternalresearchfundingreported(asearned)ineachyear

QUALiFicAtions AwARDeD

2010 2009 2008

Doctorates 37 37 24

Masters 593 597 321

Honours,PostgraduateDiplomasandPostgraduateCertificates 810 777 368

Degrees,GraduateDiplomasandGraduateCertificates 3,378 4,126 3,327

Diplomas 849 1,413 1,166

Certificates 1,761 1,097 2,319

total qualifications awarded 7,428 8,047 7,525

ReseARcH

2010 2009 2008 Actual Actual Actual

Totalresearchoutputs 2,692 2,159 1,988

Externalresearchfunding8 $11.1M $10.6M $8.1M

Performance-BasedResearchFund(PBRF) $7.4M $6.4M $6.5M

PBRFfundingreflectsrevenueearnedasaresultoftheUniversity’sresearchperformance inthereportedyearandincludesthewash-uppaidinasubsequentyear.For2010,PBRFmoniesareprovisionalanddonotincludethe2010wash-upwhichisduetobepaidin2011.ThesefiguresthereforedifferfromthosereportedforPerformanceMeasure3.3andtheNotestotheIncomeStatement.

stAFFinG

2010 2009 2008 Actual Actual Actual

Student:StaffRatio

Total EFTS/Total FTE Academic Staff 19.9:1 18.8:1 16.8:1



IntermsoftheEducationAct1989andtheCrownEntitiesAct2004wecertifythat:

WehavebeenresponsibleforthepreparationofthesestatementsofserviceperformanceandthesefinancialstatementsforAucklandUniversityofTechnologyandGroupandthejudgementsusedtherein;and

Wehavebeenresponsibleforestablishingandmaintainingasystemofinternalcontroldesignedtoprovidereasonableassuranceastotheintegrityandreliabilityofperformancereportingandfinancialreporting;and

WeareoftheopinionthatthesestatementsofserviceperformanceandthesefinancialstatementsfairlyreflectthefinancialpositionforAucklandUniversityofTechnologyandGroupat31December2010andtheresultsoftheoperationsfortheyearended31December2010.

sir Paul Reeves Derek Mccormack CouncilChairperson Vice-Chancellor

28March2011

stAteMent oF MAnAGeMentResPonsiBiLity


inDePenDent AUDitoR’s RePoRt

To the readers of Auckland University of Technology and group’s financial statements and statement of service performancefor the year ended 31 December 2010

TheAuditor-GeneralistheauditorofAucklandUniversityofTechnology(theUniversity)andgroup.TheAuditor-Generalhasappointedme,JohnScott,usingthestaffandresourcesofAuditNewZealand,tocarryouttheauditofthefinancialstatementsandstatementofserviceperformanceoftheUniversityandgrouponherbehalf.

Wehaveaudited:

• thefinancialstatementsoftheUniversityandgrouponpages55to106,thatcomprisethebalancesheetasat31December2010,theincomestatement,statementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsfortheyearendedonthatdateandthenotestotheconsolidatedfinancialstatementsthatincludeaccountingpoliciesandotherexplanatoryinformation;and

•thestatementofserviceperformanceoftheUniversityandgrouponpages31to50.

oPinionInouropinion:

• thefinancialstatementsoftheUniversityand grouponpages55to106:

–complywithgenerallyacceptedaccounting practiceinNewZealand;and

– fairlyreflecttheUniversityandgroup’s:

• financialpositionasat31December 2010;and

• financialperformanceandcashflowsfor theyearendedonthatdate;and

• thestatementofserviceperformanceoftheUniversityandgrouponpages31to50:

–complieswithgenerallyacceptedaccounting practiceinNewZealand;and

– fairlyreflectstheUniversityandgroup’s serviceperformanceachievementsmeasured againsttheperformancetargetsadopted fortheyearended31December2010.

Ourauditwascompletedon28March2011. Thisisthedateatwhichouropinionisexpressed.

Thebasisofouropinionisexplainedbelow.Inaddition,weoutlinetheresponsibilitiesoftheCouncilandourresponsibilities,andweexplainourindependence.

BAsis oF oPinionWecarriedoutourauditinaccordancewiththeAuditor-General’sAuditingStandardsandtheInternationalStandardsonAuditing(NewZealand).Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandcarryoutouraudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsandstatementofserviceperformancearefreefrommaterialmisstatement.

Materialmisstatementsaredifferencesoromissionsofamountsanddisclosuresthatwouldaffectareader’soverallunderstandingofthefinancialstatementsandstatementofserviceperformance.Ifwehadfoundmaterialmisstatementsthatwerenotcorrected,wewouldhavereferredtotheminouropinion.

Anauditinvolvescarryingoutprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatementsandstatementofserviceperformance.Theproceduresselecteddependonourjudgement,includingourassessmentofrisksofmaterialmisstatementofthefinancialstatementsandstatementofserviceperformance,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheUniversityandgroup’spreparationofthefinancialstatementsandstatementofserviceperformancethatfairlyreflectthematterstowhichtheyrelate.Weconsiderinternalcontrolinordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessof theUniversityandgroup’sinternalcontrol.

an audit also involves evaluating:

• theappropriatenessofaccountingpoliciesusedandwhethertheyhavebeenconsistentlyapplied;

• thereasonablenessofthesignificantaccountingestimatesandjudgementsmadebytheCouncil;

• theadequacyofalldisclosuresinthefinancialstatementsandstatementofserviceperformance;and

• theoverallpresentationofthefinancialstatementsandstatementofserviceperformance.


John scottAuditNewZealandOnbehalfoftheAuditor-GeneralAuckland,NewZealand

Wedidnotexamineeverytransaction,nordoweguaranteecompleteaccuracyofthefinancial statementsandstatementofserviceperformance.Wehaveobtainedalltheinformationandexplanationswehaverequiredandwebelievewehaveobtainedsufficientandappropriateauditevidencetoprovideabasisforourauditopinion.

ResPonsiBiLities oF tHe coUnciL TheCouncilisresponsibleforpreparingfinancialstatementsandastatementofserviceperformancethat:

• complywithgenerallyacceptedaccountingpracticeinNewZealand;

• fairlyreflecttheUniversityandgroup’sfinancialposition,financialperformanceandcashflows;and

• fairlyreflecttheUniversityandgroup’sserviceperformanceachievements.

TheCouncilisalsoresponsibleforsuchinternalcontrolasitdeterminesisnecessarytoenablethepreparationoffinancialstatementsandastatementofserviceperformancethatarefreefrommaterialmisstatement,whetherduetofraudorerror.

TheCouncil’sresponsibilitiesarisefromtheEducationAct1989andtheCrownEntities Act2004.

ResPonsiBiLities oF tHe AUDitoR Weareresponsibleforexpressinganindependentopiniononthefinancialstatementsandstatementofserviceperformanceandreportingthatopiniontoyoubasedonouraudit.Ourresponsibilityarisesfromsection15ofthePublicAuditAct2001andtheCrownEntitiesAct2004.

inDePenDenceWhencarryingouttheaudit,wefollowedtheindependencerequirementsoftheAuditor-General,whichincorporatetheindependencerequirementsoftheNewZealandInstituteofCharteredAccountants.

Inadditiontotheaudit,wewillperformanassignmentfortheprovisionofassuranceontheperformancebasedresearchfundexternalresearchincomefortheyearended31December2010whicharecompatiblewiththoseindependencerequirements.Otherthantheauditandthisassignment,wehavenorelationshipwithorinterestsintheUniversityoranyofitssubsidiaries.

MAtteRs ReLAtinG to tHe eLectRonic PResentAtion oF tHe AUDiteD FinAnciAL stAteMents AnD stAteMent oF seRVice PeRFoRMAnce ThisauditreportrelatestothefinancialstatementsandstatementofserviceperformanceofAucklandUniversityofTechnology(theUniversity)andgroupfortheyearended31December2010includedontheUniversityandgroup’swebsite.TheUniversityandgroup’sCouncilisresponsibleforthemaintenanceandintegrityoftheUniversityandgroup’swebsite.WehavenotbeenengagedtoreportontheintegrityoftheUniversityandgroup’swebsite.Weacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementsandstatementofserviceperformancesincetheywereinitiallypresentedonthewebsite.Theauditreportrefersonlytothefinancialstatementsandstatementofserviceperformancenamedabove.Itdoesnotprovideanopiniononanyotherinformationwhichmayhavebeenhyperlinkedtoorfromthefinancialstatementsandstatementofserviceperformance.Ifreadersofthisreportareconcernedwiththeinherentrisksarisingfromelectronicdatacommunicationtheyshouldrefertothepublishedhardcopyoftheauditedfinancialstatementsandstatementofserviceperformanceaswellastherelatedauditreportdated28March2011toconfirmtheinformationincludedintheauditedfinancialstatementsandstatementofserviceperformancepresentedonthiswebsite.LegislationinNewZealandgoverningthepreparationanddisseminationoffinancialinformationmaydifferfromlegislationinotherjurisdictions.


RePoRts


FAcULty oF APPLieD HUMAnities

Dean:Professor nigel Hemmington

TheFacultyofAppliedHumanitiesoffersarangeofpostgraduate,undergraduateandsub-degreequalificationswithafocusonthehumanitiesandthehumanservicessectors,includingeducation,hospitalityandtourism,socialsciencesandlanguages.AreasofresearchstrengthincludelocalgovernmentinNewZealand,webinteractionpatternsandPacificstudies.Aswellastraditionalsubjectssuchaspsychology,theFacultyalsooffersspecialisedprogrammesinemergingornichedisciplinessuchascriminology,signlanguageandDeafstudies,andSteinerandMontessorieducation.AllqualificationstaughtbytheFacultyofAppliedHumanitiessharethesameemphasisonprofessionally-orientedlearningthatpreparesgraduatesforsuccess.

school of educationHeadofSchool: Jay Reid (to 4 October 2010)ActingHeadofSchool: Dr Beverley cl ark (from 5 October 2010)

school of Hospitality and tourismHeadofSchool:Linda o’neill

school of L anguages and social sciencesHeadofSchool:Dr sharon Harvey

institute of culture, Discourse and communicationDirector:Professor All an Bell

institute of Public PolicyDirector:David wilson

new Zeal and tourism Research instituteDirector:Professor simon Milne

9 Externalresearchgrantscomprisethetotalamountofexternalresearchfunding(exclusiveofPerformance-BasedResearch Fundmonies)reportedasearnedbyeachfacultyineachyear10 NetcostofserviceperEFTSiscalculatedusingMoEbulk-fundedtaughtEFTS

DeputyDean:Linda o’neill

AssociateDeans:sharon Harvey

Linda o’neillJay Reid

Professors:All an Bell

John Bitchener charles crothers

Peggy Fairbairn-Dunlop nigel Hemmington

simon Milne Mark orams

ian shirley Marilyn waring

AssociateProfessors:Andy BeggLove chile

nesta Devinesharon Graham Davies

Michael LuckPat strauss

Key FActs 2010 2009 Actual ActualenrolmentsMinistry-fundedEFTS 3,237 2,952InternationalEFTS 462 463OtherEFTS 163 113

TotalprogrammeEFTS 3,862 3,528

TaughtEFTS 3,816 3,483MoEbulk-fundedtaughtEFTS 3,464 3,220AcademicstaffFTE 176 182Student:Staffratio 21.7:1 19.1:1

Research No.ofresearchoutputs 523 280Externalresearchgrants9 $833,571 $956,704

Financial $000s $000sFacultycosts 23,120 23,449Administrativecosts 15,325 12,483

total costs 38,445 35,932

Lessrecoveries 2,029 2,720

Netcostofservice 36,416 33,212

NetcostofserviceperEFTS10 $10,513 $10,314


FAcULty oF BUsiness AnD LAw

Dean:Professor Des Graydon (until 9 April 2010) Dr Geoff Perry(Acting from 11 April 2010)

TheFacultyofBusinessandLawofferstuitioninacomprehensiverangeofbusinessdisciplines.AllprogrammesintheFacultyhaveastrongemphasisonappliedlearningandouracademicstaffprovideinnovative,research-ledteachingthathelpspreparegraduatesforthedemandsofprofessionalbusinesspractice.TheFacultyincludesthefastestgrowingbusinessschoolinNewZealandandhasdevelopedsignificantbusinessresearchcapabilitywithoverthirtyprofessorialstaffwithexpertiseinawiderangeofrelateddisciplines.

school of BusinessAssociateDeanPostgraduateStudents:Dr Andy GodfreyDirectorUndergraduateProgrammes:Associate Professor Keith MackyDirectorPostgraduateProgrammes:Professor Bill DoolinDirectorCentreforBusinessInterdisciplinaryStudies: catherine VileDirectorMasterofBusinessAdministration: Ken Lee

ch ai rs of DisciplinesAccounting: Professor Keith Hooper Business InformationSystems: Professor Felix tanEconomics: Professor tim MaloneyFinance: Professor Alireza tourani-RadInternational Business: Professor Peter enderwickManagement: Professor erling Rasmussen Marketing: Professor Roger Marshall

school of L awDean: Professor ian eagles

Prog ra mme DirectorsUndergraduateProgrammes: Mike FrenchPostgraduateProgrammesinLawandTaxation: Professor Louise Longdin

new Zeal and work and L abour Market instituteDirector:Professor Ray Markey

11 Asperfootnote912 Asperfootnote10

DeputyDeans: Geoff Perry

(until 11 April 2010)Jenny Bygrave

(until 13 August 2010) Roger stokell (Acting)

AssociateDeans:Bill Doolin

Andy Godfrey Kate Kearins Keith Macky

Roger stokell

Professors: trish corner

Bill Doolinian eagles

Peter enderwick Keith Hooper Ming-Hua Liu Kate Kearins

Louise Longdintim Maloney

Ray MarkeyRoger Marshall

Deryl northcottchris ohms

Judith Pringleerling Rasmussen

Felix tanAlireza tourani-Rad

AssociateProfessors:Brett collins

Margaret craig-Lees Bart Frijns

sonjaya Gaur Mark Glynn

Ahsan Habib coral ingley

Felicity L ammRomie Littrell

Keith Mackysimon Mowatt

Andrew Parsonsedwina Pio

Peiming wang william wang

Don webbernevan wright

AdjunctProfessors:Don Brash

Lee Parker Arch woodsideKey FActs

2010 2009 Actual ActualenrolmentsMinistry-fundedEFTS 3,689 3,557InternationalEFTS 1,054 981OtherEFTS 228 184






Lessrecoveries 308 188




FAcULty oF DesiGn AnDcReAtiVe tecHnoLoGies

Dean:Desna Jury

TheFacultyofDesignandCreativeTechnologiesdrawstogetherauniquegroupofdisciplines,includingart,design,communications,computing,engineering,electrotechnology,informationtechnology,computersciences,mathematicalmodellingandstatistics.Studentsdevelopstrengthsinthesecoreareaswhileharnessingthepossibilitiesprovidedbytheconvergenceofnewtechnologiesandresearch;thefaculty’sgraduateshavetheknowledge,capabilitiesandattitudestocontributetowealthcreationinthecreativeeconomy.Researchiscloselylinkedtoindustryneedsandsolvesproblems,stimulatesdevelopmentandleveragesopportunitiesinthecreativeindustries.

school of Art and Design HeadofSchool:Ron Left

school of communication studiesHeadofSchool:Dr Alan cocker

school of computing and Mathematical sciencesHeadofSchool: Professor Ajit narayanan

school of engineeringHeadofSchool:Professor John Raine

creative industries Research institute Director: Professor ol af Diegel

engineering Research and innovation cluster Director: Professor thomas neitzert

institute of Biomedical technologiesDirector: Professor Ahmed Al-Jumaily

institute for Radio Astronomy and space ResearchDirector: Professor sergei Gulyaev

Knowledge engineering and Discovery Research instituteDirector:Professor nikol a Kasabov

interdisciplinary UnitDirector:Associate Professor charles walker

AssociateDeans:ol af Diegel

Mark Jackson Barry King

Professors:Adnan Al-Anbuky Ahmed Al-Jumaily

ol af DiegelAlvis Fong

sergei Gulyaev Jeffrey Hunter

nikol a KasabovBarry King

stephen MacDonellAjit narayanan

thomas neitzertKrishnamachar Prasad

John Raine Philip sallis

Leong yapAlbert (wai) yeap

AssociateProfessors:christopher Braddock

Jiling caoZhan chen

Paul cowpertwaitnancy de Freitas

tina engels-schwarzpaulMartin Hirstwayne Hope

welby ingsMark Jackson

Frances Josephsergiy Klymchuk

tek tjing Lie sigrid norris

David RobieAndy thomson

John tookey charles walker

David wilson

AdjunctProfessors:elizabeth Grierson

Peter thomassen





Research No.ofresearchoutputs 574 913Externalresearchgrants13 $2,235,911 $2,155,480







FAcULty oF HeALtH AnDenViRonMentAL sciences

Dean:Professor Max Abbott

TheFacultyofHealthandEnvironmentalSciencesisNewZealand’slargestandmostdiversehealthscienceeducationproviderandis deeplyinvolvedinissuesthataffectthewholecommunity.TheFaculty preparesgraduatestoenterawidevarietyofhealth,sportandrecreation,andappliedscienceprofessions.Italsoconductsresearchtoadvancescientificknowledgeandprofessionalpracticeintheseareasanditprovidespostgraduateandcontinuingeducationforpractitioners.Intheseandotherways,itseekstoenhancethehealthandwellbeingofNewZealandersandtheenvironmentinwhichtheylive.

school of Applied sciences HeadofSchool:Dr Roger whiting (to October 2010) Dr Len Gillman (from November 2010)

school of Health care PracticeHeadofSchool:naumai smith

school of Public Health and Psychosocial studiesHeadofSchool: Professor Janis Paterson

school of Rehabilitation and occupation studiesHeadofSchool: Associate Professor Duncan Reid

school of sport and RecreationHeadofSchool: Dr Henry Duncan

Biotechnology Research instituteDirector: Professor stephen Henry

earth and oceanic sciences Research instituteDirector:Associate Professor steve o’shea

Health and Rehabilitation Research centreDirector:Professor Peter Mcnair

sports Performance Research institute new Zeal andDirector:Professor John cronin

national institute for Public Health and Mental Health Research Directors:Professor Max Abbott and Professor Janis Paterson

national institute for stroke and Applied neurosciences Director:Professor Valery Feigin

AssociateDeans:Geoff Dickson

Kate HaswellMarion Jones

susan shaw

Professors:Max Abbott

John BrooksJohn cronin

Valery Feigin stephen Henry

will HopkinsPatria Hume

Jane Koziol-McL ainPeter Mcnair

Kathryn McPhersonJanis Paterson

Keith Romeel aine Rush

Philip schluterGrant schofield

David seedhouse

AssociateProfessors:Andrea Alfaro

stephen Appel Mark Boocock simeon cairns Geoff DicksonKate Diesfeld

Lynne Giddingswayne Hing

cl are HockingMarion Jones Justin Keogh

Paul a KerstenAndrew Kilding

Antoinette Mccallin steve o’shea Duncan Reid

yang shigang John F. smith

Liz smythe Denise taylor

Keith tudorAl ain Vandal

Denise wilson owen young

AdjunctProfessors:clive Aspin

Paul Bennett Rex Billington

Brian BroomJ.e. Lindsay carter

Dawn Foremanian Frecklelton

Richard Gajdosik Peter Greener

Frances Hughes Gregory Kolt

Paul L aursen Al ain Leplege

Paul MacDonald theresa Madden

Michael McGuiganJan McMillen

william K. MummeryAnne Passmore

John RaeburnBrian Robinson

Johan RosmanJill thistlewaite

Rex thompsonLynne turner-stokes

Rachel VolbergBarry wilson





Research No.ofresearchoutputs 933 549Externalresearchgrants15 $6,585,355 $5,523,435



Lessrecoveries 428 1,417




te ARA PoUtAMA

Dean: Associate Professor Pare Keiha

TeAraPoutama,theFacultyofMäoriDevelopment,supportsthedevelopmentofstudentsandtheirwhänau,hapuandiwianditsresearchissignificantlyinfluencedbythatcommitment.FacultystaffresearchandteachinkeyaspectsofMäoridevelopment,includingbusiness,policy,youthdevelopment,tereoMäori,digitaltechnologyandmedia.TheFacultytakesaninnovativeapproachtoteachingandlearning,usingthelatesttechnologiestocreatearangeofelectronicandmobileresourcesforteachingintereoMäori.BasedatTeAraPoutama,TeIpukarea:TheNationalMäoriLanguageInstituteisdevelopinganationalandinternationalreputationasaresearch-ledcommunityofscholarsdedicatedtolanguagerevitalisation.

te ipukarea: the national Mäori L anguage institute Director:Professor tania Ka’ai

Tumuaki:teorongonui Josie Keel an

Professors:tania Ka’aiPaul Moon

John Moorfield

AssociateProfessor:Pare Keiha


Key FActs 2010 2009 Actual ActualenrolmentsMinistry-fundedEFTS 90 88InternationalEFTS – –OtherEFTS – –

TotalprogrammeEFTS 90 88

TaughtEFTS 230 260MoEbulk-fundedtaughtEFTS 215 247AcademicstaffFTE 18 17Student:Staffratio 12.8:1 15.3:1


Financial $000s $000sFacultycosts 1,948 1,915Administrativecosts 926 897






oVeRViewAUTcontinuestofurtherequalopportunitiesthroughanumberofestablished,successfulinitiatives.In2010,theUniversitycelebrateditsachievementofanumberofkeymilestonesthatconsiderablyenhancedequalopportunitiesforbothstaffandstudents.Theseinclude:theopeningoftheManukauCampus,whichwillexpandtertiaryeducationprovisionwithinthe SouthAucklandregionwhichhashighproportionsofyoungMäoriandPasifika;recordnumbersofMäoriandPasifikastudentsstudyingatdegreelevelandabove;andtheimplementationofarisk-managementstrategytoimproveMäoriandPasifikastudentretentionandsuccess.

Whendeliveringequityinitiatives,AUTprioritisesMäori,Pasifika,andstaffandstudentswithadisability;theseprogrammesare,inthemain,supportedbydedicatedfundingreceivedfromtheTertiaryEducationCommission(TEC).However,AUT’scommitmenttoequalopportunitiesalsoextendsbeyondthesegroups;theUniversitycontributessubstantialresourcestoequityinitiativeswhichsupportothercommunities,includingLGBT,19women,newmigrantsandrefugees.Theuniversityremainscommittedtobeing“auniversityofopportunity,continu[ing]tosupportandencouragecommunitiesandgroupswhohavebeentraditionallyunder-representedinhighereducation”.20AUTcelebratesdiversityacrossallitsactivitiesandseekstoberelevanttothediversecommunitiesofAucklandandAotearoa.

stUDentsEnrolmentpatternsshowmarkedincreasesinthenumberofMäoriandPasifikastudentsstudyinginundergraduateandpostgraduateprogrammes(bothupby4%from2009).In2010,theUniversitygraduated125MäoriandPasifikapostgraduatestudentsincludingAUT’sfirstdoctoralcandidatetocompleteathesisintereoMäori.

In2010,theTECreleaseditsEducationalPerformanceIndicatorsfortheuniversity sub-sector.AUT’sMäoristudentsperformedwellwithcoursecompletionrates(77%)slightlyexceedingthesub-sectormedian(76%).AUT’s Pasifikastudentsreportedacoursecompletionrateof65%whichwasslightlylowerthanthesub-sectormedianof66%.GiventhattheUniversityhasthehighestproportionofPasifikastudents inthesub-sector,AUT’sPasifikacoursecompletionrateispromising.However,AUTwillcontinuetomakeaconcertedefforttoimprovePasifikastudentcoursecompletionratesbybuildingoncurrentsuccessfulstrategiesandactivitiesthatsupportPasifikastudentsuccess.

AUTUniversitysurveysstudentsatisfactionannuallyandhighlevelsofsatisfactionarehistoricallyrecordedforMäoriandPasifikastudents.Thistrendcontinuedin2010with83%ofMäoristudentsand82%ofPasifikastudentssatisfiedwithAUT.21

In2010,AUThasbeeninvestigatingandimplementingtheDisabilityCodeofPracticeKia Orite – Achieving Equity.Generally,AUTmeetsorpartiallymeetsmanyoftheactivitiesandbestpracticestandardsoutlinedinKia Orite.Recognisingtheimportanceofabarrier-free environment,theUniversitycommitted$250,000overfiveyearstoauditthephysicalenvironment,spaceandfacilities,andmakeanyrequiredimprovementstoensureaccessibility.The UniversityLibrarycarriedoutaself-assessmentbasedonKia Orite;areasofimprovementwereidentifiedandworkiscontinuingtoimplementtheseimprovements.In2011,theUniversityplanstoadoptthismodelofself-assessmentacrossallareasinlinewiththebestpracticestandardsoftheCodeofPractice.

stAFFTheUniversity’scommitmenttoequalemploymentopportunitiesisclearlyarticulatedinitsStrategicPlan2007-2011.TheUniversityisdedicatedto“equalopportunityemployment,recognisingtheopportunitytoberelevanttothediversecommunitiesof21stcenturyAuckland.”22 BuildingonthesuccessofAUT’spositionasthe ‘universityofchoice’forMäoriandPasifikastudents,AUTwillcontinuetotargetpotential MäoriandPasifikastaffand,whereappropriate,adaptprocessessothatAUTbecomesthe‘employerofchoice’forMäoriandPasifika.

HumanResources(HR)wasreviewedin2010andoneoftheresultswasarestructureofthe departmenttoincludeOrganisationalDevelopment(OD).TheabilitytoinfluenceorganisationalcultureanddevelopmentthroughanintegratedHRandODapproachwillgivegreatereffectto equalemploymentopportunities.TheUniversity’srecruitmentprocesshasbeenadaptedtoincludemoreexplicitreferencestoMäoriandPasifikacommunitiesaswellastheTreatyofWaitangi,andworkcontinuestoembedthisdiscoursewithintheUniversity’sHRdocumentation.TheMäori andPasifikapostgraduateteachingassistantshipprogrammescontinuetobuildcapabilityamongstseniorstudentsandsupporttheUniversity’saimofbuildingourstaffprofilefromwithinourownstudentpopulation.In2010,theUniversityalsocontinuedtofundanumberofstaffnetworks(Mäori,Pasifika,Disability,LGBT,AsianandWomenonCampus),whichhavebeenhighlysuccessfulforaforstaffcelebratingtheiridentityandculture,andwhichgiveeffecttoasenseofcommunityforAUTUniversitystaff.

eQUAL oPPoRtUnities

19 LGBTisaninitialismusedasaself-designationbywhatwasformerlyknownasthe“gaycommunity”.Itreferscollectivelyto lesbian,gay,bisexualandtransgenderpeople20 AUTStrategicPlan2007-2011,p.1021 AUTAnnualProgrammeSurvey:ReportontheStudentExperienceofProgrammesatAUTin2010,p.21 22 AUTStrategicPlan2007-2011,p.12


stUDent seRVices

AUTUniversityseekstoprovideasupportive,affirmingandtransformationaleducationexperienceforourstudents.ThisrequiresaUniversity-wideapproachtostudentsupport,toensureallstudentsreceivetimelyassistanceastheyprogressfrominitialinquirythroughtograduation.Althoughatanoperationallevel,servicestostudentswerefundamentallyunchangedin2010,anumberofdirectorateswerereviewedandrealignedtoallowthisfocusonthe‘completestudentjourney’.Thenewmodelencompassesstudentsupport,administrationandretentioninitiatives.Italsoenablesamoreadaptableandflexibleapproachtostudentsuccessandbettersupportstheorganisation’sbusinessneeds;thestudentexperienceisplacedatthecoreofAUT’sactivities,providingaseamless,integratedandcoordinatedsupportservicetoallstudents,frombeforeapplicationtoaftergraduation.

Educationisnotanisolatedactivity;rather,externalcircumstancescanseriouslyaffectastudent’slearningexperience.Recognisingthis,AUTtakesaholisticapproachtowell-being, providinghealth,socialandspiritualsupportservicesaswellaseducationalsupport.Studentsatriskofwithdrawalareidentifiedby theSuccessandRetentiongroupandoffered personalisedassistance,tailoredtotheir individualcircumstances.Thiscasemanagementapproachensuresthatallunderlyingneedsareidentified,therebyimprovingbothacademicandpersonaloutcomesforstudents.

TheestablishmentofManukauCampusin2010requiredaninnovativeapproachtostudentsupportprovision;theUniversityneededaservicethatwouldfulfilstudents’expectationswhileremainingcost-effective.

AtManukau,studentadvisorsprovidedarangeofgeneralservices,whilestudentswithmoreacuteneedswerereferredtospecialisedservicesatWellesleyorNorthShoreCampuses.Thisapproachwasbroadlysuccessfulinitsfirstyear;71%ofstudentsratedthequalityofthestudentadvisoryserviceaseitherexcellentorverygood.On-campusserviceprovisionisexpectedtoexpandasManukauCampusgrows.

Aparticularfocusfor2010wastheprovisionofadditionalstudyspaceatManukauandCitycampuses.ThenextstageofrefurbishmentsatManukauwillprovidededicatedpostgraduatespace;thiswillbeavailabletostudentsbasedatothercampusesbutresidentinthearea,aswellasthosestudyingatManukauCampus.ThenewpostgraduatecentreonCityCampuswasopenedinmid-2010andhasbeenwellutilised. ThenewWGPrecinctwillprovidearangeofsocialandstudyspacesforallstudentstosupportarangeofdifferentlearningstyles.

TheDecembergraduationceremoniesremain apopularoptionforstudentsandnumbersattendingcontinuetogrow.Closeto3,800studentsgraduatedduringthetwo-daycelebration,includingtwentydoctoralcandidates.

Finally,theUniversitywishestoacknowledgeAuSM’ssignificantcontributiontoAUT’svibrantanddynamicstudentexperience;theUniversitywillworkcloselywiththestudents’associationthroughthetransitiontovoluntarymembership.


stAteMent oF ResoURces


2010 2009expenditure – $000s Operatingexpenditure–excludingdepreciation 5,345 5,229Depreciation23 5,689 3,389Totaloperatingexpenditure 11,034 8,618Capitalexpenditure–informationresources 4,799 4,538total Library expenditure 15,833 13,156

Percentageincrease/(decrease)totallibraryexpenditure 20% (1%)LibraryoperatingexpenditureasapercentageoftotalUniversityexpenditure 4.1% 3.4%

TotalEFTS(MoEandInternational) 17,934 17,090TotalFTE(academicandadministrativestaff) 1,916 1,860TotalLibraryexpenditure($)perEFTSandFTE 798 694

total Library staff (Fte) 65.1 61.5

e-resourcese-journaltitles 105,462 80,565e-booktitles 57,295 48,240e-Reserveitems(AUTonline)24 3,047 –Researchrepositoryitems(ScholarlyCommons) 966 –

Print resources (titles)25 Books 207,406 –Journals(Serials) 2,360 –Multimedia(AVitems) 17,308 –

online accesse-journalfull-textdownloads 1,928,639 1,405,945e-bookfull-textdownloads 33,514 –e-Reservefull-textdownloads 32,415 –Researchrepositoryfull-textdownloads 578,090 –LibraryGuidespageviews 592,277 –Librarywebsitepageviews26 1,675,553 –

LoansPrintandmultimedia 335,537 328,244Coursereserve(highdemand) 55,877 53,639Interloanitemssuppliedandreceived 10,508 11,472

information servicesInformationliteracyworkshops(participants) 14,583 14,439Informationliteracyworkshops(groups) 612 595Researchconsultations 3,729 3,230LibraryHelpDeskenquiries 14,971 13,173

turnstile counts (visits to Library) 1,517,197 1,399,359opening hours (per week)27 86 86

LiBRARy

23 Mostoftheincreaseindepreciationfrom2009to2010isexplainedbyanincreaseinthedepreciationrateondatabases in2010(from10%to20%),whichresultedinadditionaldepreciationof$1.9million24 TheLibraryReportwasreviewedin2010tobetterreflecttrendsinthevirtualaswellasphysicalLibraryandtobetteralign withbestpracticereporting.Someinformationpresentedinthe2010reportwasnotpreviouslycollectedandcannotbe reportedfor2009(thisisindicatedwithadash)25 Inthe2009AnnualReport,printresourcesweremeasuredasvolumesratherthantitles.Thismetricprovidedasenseofthe amountofphysicalspaceusedforprintresources;astheLibraryisincreasingitsonlineprovisionofresources,itismore accuratetoreflecttitlesratherthanvolumes26 ThenewAUTLibrarywebsitewentliveon11February2010.Figuresfor2010relatetotheremainingportionoftheyear27 Weeklyopeninghoursincreaseto98hoursforthelastfourweeksofeachsemester


2010 2009

expenditure — $000s

OperatingexpenditureforInformationTechnologyServices(ITS) 13,447 11,587

Operatingexpenditureforcomputerleasesinotherdivisions 3,549 3,938

TotaloperatingITSexpenditureforUniversity 16,996 15,525

Capitalexpenditure 1,558 2,207

total its expenditure 18,554 17,733

Percentageincrease/(decrease)totalITSexpenditure 5% 19%

ITSoperatingexpenditureasapercentageoftotalUniversityexpenditure 6.3% 6.1%

ITSsalaries/totalITSoperatingexpenditure 36% 35%

TotalITSexpenditureperEFTS($) 1,035 1,038

TotalITSstaff(FTE) 85 71

computers and student users

Totalnumberofcomputers(includinglaptops) 6,810 6,465

Percentageincrease/(decrease)innumberofcomputers 5.3% 6.6%

Numberofcomputersinclassroomsandopen-accesslaboratories 4,586 4,276

Percentageincrease/(decrease)incomputersinclassroomsandopen-accesslaboratories 7.2% 8.6%

Numberofstudentusers(log-onauthorisations) 31,450 26,640

Computer:studentratio 1:6.9 1:6.2

computer facilities and support

Availableopen-accesslaboratoryhours 1,987,879 1,593,098

Percentageincrease/(decrease)open-accesshours28 24.8% 13.8%

Totalnumberofopen-accesshoursused29 623,139 649,269

Percentageopen-accessusage 31.3% 41%

Totalhelpdeskenquiries 75,077 51,375

Percentageincrease/(decrease)helpdeskenquiries30 46% (4.9%)

AUt website performance

Numberofwebpages 5,249 4,873

NumberofpageviewsonAUTwebsite 17.0M 18.8M

inFoRMAtion tecHnoLoGyseRVices

28 Theincreaseinopen-accesshoursfor2010istheresultofanewlabatManukauCampus,increasedopeninghoursduringtheexam periodandsomelabsprovidingaccessfor24hoursaday/7daysaweek 29 Utilisationofopen-accesshoursdecreasedin2010.Thisresultedfromtheimplementationofamoreaccuratebookingsystem whichrecordsusagebytheminute,ratherthanin30-minuteblocks.Therehasalsobeenanincreaseinthenumberofstudents workingontheirownlaptopsusingAUT’swirelessaccess30 Theincreaseinhelpdeskenquiriesfor2010reflectsgreaterefficienciesinthecaptureofcallsloggedusingthenewService Desktoolset


2010 2009 Gross Value Gross Value LAnD Area ha $000s Areaha $000s

crown owned land 16.9 39,203 16.9 34,925

AUt owned land

CityCampus 1.0 19,298 1.0 25,736

ManukauCampus 7.8 28,022 7.8 29,190

total land 25.7 86,523 25.7 89,851

2010 2009 net Book NetBook Gross Value Gross Value BUiLDinGs Area m2 $000s Aream2 $000s

crown owned buildings31

CityCampus 12,062 19,289 17,861 20,536

NorthShoreCampus 19,223 29,622 19,223 31,880

total crown owned buildings32 31,285 48,911 37,084 52,416

AUt owned buildings

city campus

ArtandDesignBuilding 9,266 22,053 9,266 21,814

BusinessBuilding 10,681 34,705 10,681 36,156

DadleyBuilding 2,975 2,296 2,975 2,271

HotelandRestaurantStudiesBuilding 7,887 27,096 7,887 28,273

NgäWaiOHorotiuMarae 559 1,640 559 1,685

ScienceandTechnologyBuilding 10,012 22,869 10,012 21,834

SymondsStreetBuilding 10,320 10,987 10,320 10,633

TeAraPoutamaandHikuwaiBuildings 7,896 15,714 7,896 15,335

WellesleyLearningCentre(TeAmorangi) 16,500 35,134 16,500 33,736

46WakefieldStreet 3,221 2,111 3,221 1,944

Otherbuildings 515 17,455 515 17,461

Siteimprovementsandinfrastructure – 1,469 – 2,760

Workinprogress – 8,528 – 3,327

total city campus 79,832 202,057 79,832 197,229

north shore campus

AABuilding 3,320 2,135 3,320 2,168

ADBuildingLevel1Extension 553 232 553 249

AFLectureTheatreComplex 1,272 9,812 1,272 9,798

AkorangaLearningCentre 2,677 6,126 2,677 6,093

AkorangaAdministrationBuilding 1,129 2,741 1,129 2,642

SportandRecreationCentre 5,930 9,481 5,930 8,604

EducationBuilding33 817 2,762 – –

Workinprogress – 238 – 560

total north shore campus 15,698 33,527 14,881 30,114

LAnD AnD BUiLDinGs


31 AcomprehensiverevaluationofalllandandbuildingswascarriedoutbySeagarandPartners,RegisteredValuers,asat31December 2010.Therevaluationresultedinanetdecreaseinthevalueoflandholdingsandanincreaseinthenetvalueofbuildings.Referto Note16oftheFinancialStatements32 ThereductioningrossareaofCrownownedbuildingsin2010isduetothedemolitionoftwobuildings,WJandWK,inpreparationfor WGPrecinctconstruction33 ThenewEducationbuildingwascompletedin2010 34 The2009figurefortotalAUTownedbuildingsis$2.9millionlessthanreportedinthe2009AnnualReport.The2009figureincluded $2.3millionforworkinprogressattheWarkworthSatelliteStationwhichhassincebeenclassifiedasproperty,plantand equipment.Thechangeinaccountingpolicyrelatingtocapitalisationofinteresthasdecreasednetbookvaluein2009by$634,00035 Grossareaofcontractualleasesdecreasedin2010duetotheterminationofleasesatOsterleyWayandGreenstonePlace36 The2010figuredoesnotinclude112EFTSthatarenotassignedtoanyfaculty37 The2009figuredoesnotinclude116EFTSthatarenotassignedtoanyfaculty38 Thegrossusableareaindevelopmentorvacantdecreasedin2010;spacewithinbuildingsonManukauCampusbecameoperational in2010andpreviouslyvacantspaceinWJandWKbuildingswasdemolishedin2010tobegindevelopmentoftheWGPrecinct

2010 2009 net Book NetBook Gross Value Gross Value Area m2 $000s Aream2 $000s

AUt owned buildings (continued)

Manukau campus

ManukauCampusbuildings 8,075 16,904 8,075 5,752

Workinprogress – 361 – 9,853

total Manukau campus 8,075 17,265 8,075 15,605

total AUt owned buildings34 103,605 252,849 102,788 242,948

total land and buildings 388,283 385,215

Contractualleases(various)35 46,999 47,709

MangereRefugeeCentre 1,312 1,312

University total gross area 183,201 188,893

Less:Nonleasablearea 31,030 30,599

net usable area 152,171 158,294

2010 2009Utilised as follows Gross taught Area m2 Gross Taught Aream2

Usable eFts per per Usable EFTSper per Area m2 Faculty eFts Aream2 Faculty EFTS

Faculties

FacultyofAppliedHumanities 15,524 3,816 4.1 14,883 3,483 4.3

FacultyofBusinessandLaw 10,511 4,837 2.2 10,222 4,561 2.2

FacultyofDesignandCreativeTechnologies 34,445 4,777 7.2 33,385 4,718 7.1

FacultyofHealthandEnvironmentalSciences 25,878 4,951 5.2 25,546 4,636 5.5

TeAraPoutama 1,106 230 4.8 933 260 3.6

AUTInternationalHouse 1,658 229 7.2 1,735 289 6.0

total faculties 89,122 18,84036 86,704 17,94737

Administration

Administrationservices 35,596 36,515

Carparks 9,387 9,387

Studentaccommodation 15,759 16,180

Indevelopment/vacant38 2,307 9,508

totAL 152,171 158,294



2010 2009

Faculties Academic Admin total Academic Admin total

AppliedHumanities 176 62 238 182 59 241

BusinessandLaw 177 52 229 170 51 221

DesignandCreativeTechnologies 235 89 324 250 75 325

HealthandEnvironmentalSciences 293 104 397 285 98 383

TeAraPoutama 18 2 20 17 3 20

total Faculty Fte 899 309 1,208 904 286 1,190

central Administration services

Vice-Chancellor’sOffice 3 8 11 – 26 26

CorporateServices39 – 170 170 – – –

LearningandTeaching 9 14 23 11 15 26

MàoriAdvancement – 1 1 1 1 2

International 22 21 43 27 20 47

InnovationandEnterprise – 10 10 – – –

ResearchandDevelopment 5 75 80 4 80 84

ServicesandOperations – – – – 145 145

FinanceandEstates – 122 122 – 112 112

UniversityRelationsandAdvancement 14 234 248 13 215 228

total central Admin services Fte 53 655 708 56 614 670

total University Fte 952 964 1,916 960 900 1,860

stAFFinG

39 Severalcentraladministrationareaswererestructuredorrealignedin2010.CorporateServiceswascreated,encompassing PeopleandOrganisation(previouslynamedHumanResources),InformationTechnologyServicesandmostofthefunctionsof theVice-Chancellor’sDepartment.ServicesandOperations,whichpreviouslyincludedHumanResourcesandInformation TechnologyServices,wasdisestablished


stAteMent oF seRVice PeRFoRMAnce

AUTUniversity’sStrategicPlan2007-2011outlinestheUniversity’sstrategicdirectionforafiveyearperiod.Itincludeshigh-levelinformationontheorganisation’spurposeandrole,aswellasthenatureandscopeofitsoperationsanditsfitwiththeGovernment’slong-termobjectives.FivekeythemesguidetheUniversity’sdevelopment–ExcellenceinEducation,ResearchandDevelopment,Engagement,StaffDevelopmentandSustainability.Fromthese,asetofassociatedobjectivesandCriticalSuccessFactorsdefinetheimpactsandoutcomestheUniversitystrivesfor.SomeareexternallyfocussedwhileothersrelatetoaspectsoftheUniversity’soperations.AUT’seffectivenessisthenmeasuredbyaseriesofkeyperformanceindicators(KPIs),asrecordedintheAUTUniversityInvestmentPlan2008-2010.ThefollowingStatementofServicePerformancecontainsinformationontheUniversity’sobjectives,CriticalSuccessFactorsandKPIsinordertodocumenttheservicesprovidedbyAUTtomeetstakeholderneedsandtoensuretheintentoftheStrategicPlanisfulfilled.

ForanoverallviewoftheperformanceoftheUniversity,theStatementofServicePerformanceSectionmustbereadinconjunctionwiththeReportsSection.


eXceLLence in eDUcAtion Learning and teaching

stRAteGic tHeMe u AUt University will provide excellent education that inspires students to reach their full potential.

cRiticAL sUccess FActoRs 1 AnD 2 uto be the best place to learn u to consolidate our higher education contribution

oBJectiVes uto ensure our graduates are knowledgeable, sought after and inspirational uto enhance curriculum flexibility and increase student choiceuto encourage students to progress to, and be successful in, higher education programmes

OneofAUT’skeypointsofdifferenceistheuniquebalancemaintainedbetweenthebroadcriticalthinkingandanalyticalskillsexpectedofalluniversitygraduates,andthespecificprofessionally-orientedattributesandworkplaceexperienceneededonceemployed.AUToffersresearch-led,relevantandflexiblequalificationsthatmeettheneedsofstakeholdersandwhichensurethatourgraduatesarehighlysoughtafter.AUThasapedagogicalapproachthatisstudent-centred,interactiveandcapabilitybuilding,aswellasknowledgeimparting.TheUniversity’sacademicportfoliowasbroadenedin2010withtheintroductionofthreenewpostgraduatequalifications,namelytheMasterofPerformanceandMediaArts,MasterofPsychotherapyandMasterofSportandExercise.NewmajorswerealsointroducedintheBachelorsofArts(InternationalStudies),Business(BusinessInformationSystems),Education(Primary)TeachingandEngineering(Honours)(BiotronicEngineering),aswellasintheMasterofArts(tereoMäori).In2010,thefirstcohortofstudentsmajoringinSaleswithintheBachelorofBusinessgraduated.Thismajorwasintroducedinconsultationwithindustryin2007.OrganisationsthathadinputintothedevelopmentofthemajorincludedPorathExecutiveSearch,Vodafone,ANZ,AMPandNZPost.

TheUniversityreacheditstargetsforsuccessfulcompletionratesforallgroupsofstudentsexceptundergraduateswhoplaced2%belowthe2010lowerthresholdtargetof85%.Sub-degree,MäoriandPasifikastudentsallimprovedontheircompletionratesfrom2009.TheUniversitycontinuedtoshiftitsstudentprofiletowardshighereducation.The2010targetsfordomestic,internationalandoverallpercentagesofstudentsstudyinginhighereducationprogrammeswereexceeded.Between2009and2010therewasa4%increaseto82%inthenumberofstudentsstudyinginhighereducation.AUTalsoreducedthenumberofitssub-degreeprogrammesin2010,whichcontributedinparttoahigherproportionofsub-degreestudentsprogressingintohigherlevelqualificationsby2010.

2010sawthedevelopmentofanImprovementPlanatAUTLibrary,basedupontheresultsofthe2009customersatisfactionsurvey.ThePlanrespondedtokeyissuesincludingnoisecontrolacrossallthreeCampusLibraries,andwebnavigability.TheLibraryranaseriesofclientfocusgroupstodeepenitsunderstandingofclientissuesandperceptionsoftheLibrarywebsite.Outcomeswillinformthewaythewebsitecontinuestobedeveloped.

ThehighcalibreofAUTstudentswasrecognisedthroughexcellentresultsinavarietyofnationalcompetitionsthisyear.AnAUTMastersgraduatewasawardedbestemergingNewZealandfilmmakerattheDocumentaryEdgeawardsinMarch.AUT’sAdvertisingCreativitystudentswontheTVNZ/AXISStudentCreativeoftheYearawardatthe2010AXISCreativeAwards.ThiswasthethirdconsecutiveyearthattheprizehasbeenwonbyAUTstudents.ArecentAUTpublicrelationsgraduatewasawardedtheSallyLogan-MilneYoungPractitioneroftheYearawardbythePublicRelationsInstituteofNewZealand.ThiswastheseventhAUTgraduatetowintheawardineightyears.AUTstudentsalsoscoredtheirfourthconsecutivewininthenationalStudentsinFreeEnterprisecompetition,representingNewZealandinLosAngelesinOctober.


Key performance indicators Target Actual 2010 2010 2009 2008

Universityaverage 80%-85% 82% 82% 83%

Sub-degreestudents 70%-75% 78% 76% 75%

Undergraduatestudents 85%-90% 83% 83% 85%

Postgraduatestudents 90%-95% 90% 90% 89%

Internationalstudents 80%-85% 84% 86% 85%

Mäoristudents >77% 78% 77% 77%

Pasifikastudents >65% 69% 66% 67%

Studentswithdisability >77% 79% 78% 79%

Substantiallyachieved

In2010,AUTachievedallbutoneofitscompletionratetargets.Theundergraduatestudentcompletionratefor2010wasmaintainedat83%althoughitfellbelowthetargetedrangefor2010.AUTiscurrentlyconductingareviewofstudentcompletions;thiswillinformthedevelopmentofexistingprocessesfortheearlyidentificationofat-riskstudents.Positivelyfor2010,AUTshowedamarkedimprovementfrom2009inPasifikacompletionrates,whichwerewellabovetarget.

PeRFoRMAnce MeAsURes

1.1 Tomaintainorimprovethesuccessfulcompletionratesofourstudents.40

1.2 TomeettheneedsofstakeholdersintheAucklandregionbyachievingthestudentenrolmenttargetsnegotiatedwiththeTertiaryEducationCommission(TEC).

DespiteadecisiontorestrictenrolmentsfromSemesterTwo,AUTUniversityexperiencedmoderategrowthin2010.TotalEFTSwere18,952,anincreaseof5%from2009.AspartoftheInvestmentPlannegotiations,AUTUniversitysecuredStudentAchievementComponent(SAC)fundingforapproximately15,120domesticEFTSin2010.However,growthwassuchthattheUniversityexceededthisfigurebymorethan350domesticEFTS.AUTUniversitycontinuestonegotiatewiththeTECforadditionalfundingandwillcarefullymonitor2011enrolmentstoensurethatEFTSremainbalancedwithavailableSACfunding.

Achieved

40 ThecompletionratesarecalculatedusingtheMoEformula[Pass÷(Pass+Fail+Withdrawn)].From2011,completionwillbecalculatedusing theTECperformancemetriccalculations

Key performance indicator Target Actual 2010 2010 2009 2008

ToachieveEFTStargetsasstatedin 230 269 – – theManukauCampusAcademicPlan.

In2009,theUniversitynegotiatedanAcademicPlanforAUT’snewManukauCampuswiththeTertiaryEducationCommission.TheagreedEFTStargetof230wasexceededin2010,with269EFTSontheCampusinitsinauguralyear.Theseincludedfirst-yearstudentsinhealthsciences,business,andsportandrecreationdegrees.InadditiontothereportedEFTS,someprovisionofotherprogrammes,suchastheNationalDiplomainTeaching(EarlyChildhoodEducation,Pasifika),alsotookplaceontheCampusin2010.

Achieved

1.3 TomeettheneedsofstakeholdersintheCountiesManukauregionbyincreasingEFTSaspertheManukauCampusAcademicPlan.


PeRFoRMAnce MeAsURes (continued)

2.3 ToreviewtheUniversity’scontributionwithinthenetworkoftertiaryeducationprovisioninAucklandregion.

2.4 Toincreaselinkstoprovideopportunitiesforstudentsfromothersub-sectorstoprogressintohighereducation.

AUTUniversityexpandeditscontributiontoAuckland’stertiaryprovisionwiththeopeningoftheManukauCampusin2010.Thefoundingstudentswereenrolledinbusiness,educationandhealthsciencesprogrammesandtheofferingwillbeextendedin2011toincludeComputerandInformationScience.FurthercontributionstotheAucklandregionwillarisefromthedevelopmentofanewnationaltrainingcentreforhigh-performanceathletesbasedatAUT’sMillenniumCampus.AUTalsocontinuedtodevelopitscurriculumin2010withseveralnewMastersdegreesandanumberofnewmajorswithindegree-levelstudy.

Achieved

In2010AUTconsolidatedexistingrelationshipswithothertertiaryorganisations,andfocussedonincreasinglinkswithotherprovidersintheCountiesManukauregion.Meetingswereheldwithanumberoftertiaryorganisations,includingTeWänangaoAotearoa(TWoA),ManukauInstituteofTechnology(MIT),NewZealandManagementAcademies(NZMA)andNewZealandCareerCollege(NZCC).DiscussionsregardingmemorandaofunderstandingandsubsequentarticulationagreementshavecommencedwithTWoA,NZCCandNZMA.However,inaneraofstrongdemandforhighereducationandprescribedenrolmentrestrictions,AUTmustachieveacarefulbalancebetweenapprovingapplicationsforstudentsprogressingfromotherproviders,andthosefromqualifiedschool-leavers.

Achieved


Overall41 75% 82% 78% 73%

Domestic42 75% 83% 79% 73%

International43 80% 87% 83% 78%

Achieved


Toincreasethepercentageof >40% 61% 48% 42% studentsprogressingfrom sub-degreeintohigherlevel qualifications.44

Achieved

AUThasbeenreviewingtheprovisionofsub-degreeprogrammesaspartofitscommitmenttoincreasingstudyatdegreelevelandabove.The2010progressionrateof61%ishigherthanpreviousyearsandispartlyattributabletothediscontinuationofsixsub-degreelevelprogrammesthathadlowerthanaveragehistoricalratesofprogressionorcompletion.

2.1 Toincreasethepercentageofstudentsstudyinginhighereducationprogrammestoatleast75%ofallEFTSby2012.

2.2 Toincreasethepercentageofstudentsprogressingintohigherlevelqualifications.

41 OverallEFTSincludesenrolmentcategoriesnotconsideredintheDomesticandInternationalcalculations(forexample,revenuegenerating activities).Assuch,OverallEFTSisnotaweightedaverageofDomesticandInternational42 DomesticEFTScompriseDomesticMinistry-fundedEFTS(excludingNotCategorisedEFTS) 43 InternationalEFTScompriseInternationalMinistry-funded,InternationalMoEResearchandOnshoreInternationalPhDEFTS(excludingNot CategorisedEFTS)44 Progressionratesaretheproportionofstudentenrolmentsinaprogrammefromasinglereportingyearthatprogressinthesameora subsequentyeartoenrolinahigher-levelprogramme.Thesefiguresexcludeenrolmentsinnon-progressingsub-degreeprogrammesand includedomestic(Ministry-funded)studentsonly


ReseARcH AnD DeVeLoPMent stRAteGic tHeMe u AUt University will conduct excellent research, advancing knowledge and practice in its areas of expertise and supporting its higher education programmes.

cRiticAL sUccess FActoRs 2 AnD 3 uto consolidate our higher education contribution u to enhance our research contribution

oBJectiVes uto increase research activity uto enhance our research reputationuto ensure research activity is sustainable

Basedonthesolidfoundationsofitsdisciplinaryresearchareas,AUTprovidescreative,innovativesolutionstocontemporarysocialandeconomicissues.In2010,thiswasevidencedbyadditionalfundingfromtheMinistryofHealthforextantresearchonproblem-gamblingbehavioursanddistricthealthboards’responsestovictimsoffamilyviolence.AUTacademicsalsoworkedwiththeUnitedNationsDevelopmentProgrammeandAusAIDtoprovideresearchandtechnicalsupportintheareasofgovernance,leadershipandgenderequalitytraininginthePacific.ResearchteamsalsoworkedwiththeMinistriesofEconomicDevelopmentandWomens’Affairs,aswellasthethenAucklandRegionalTransportAuthority(nowAucklandTransport).

Overthelastfewyears,AUThassoughttobuilditsresearchcapabilitieswithanumberofsuccessfulinitiatives.Theseinclude:increasingthenumberofacademicstaffontermsandconditionsconducivetoconductingresearch;theSummerResearchAssistantAwards,whichprovideemploymentopportunitiesforadvancedstudentsandresearchsupportforacademicstaffduringthesummerbreak;aresearchconsultancyservicetoassiststaffwhenapplyingforexternalfunds;andpreparationsforthe2012Performance-BasedResearchFund(PBRF)qualityevaluationround.AUThasalsocontinuedtoattractestablished,high-qualityresearchstaffandstudentstotheUniversity.Twonotablehighlightsfor2010weretheappointmentsofProfessorRichardBedfordastheProVice-Chancellor(Research),andProfessorJohnRaineasProVice-Chancellor(InnovationandEnterprise).TheUniversity’sresearchandcommercialisationprogrammesgainedfurthermomentumundertheirleadership.

Domesticpostgraduatestudentnumberswereupby11%onthepreviousyear;thisisapleasingresultasAUTcontinuestobuilditsresearchcapacityinlinewithitsstrategicdirection.Asmentionedelsewhereinthisreport,AUThadanextremelysuccessfulyearintermsofresearchfundinggenerated.Thehighcalibreofourhealthscienceresearchers,inparticular,wasrecognisedbytheHRCwhichawardedAUTcontractstotallingmorethan$8millionin2010.ThisrepresentsasignificantachievementbytheUniversityandistestamenttothequalityofAUT’shealthresearchprogramme.TheFacultyofHealthandEnvironmentalSciencesalsoledinresearchpublishingactivity,achievingthehighestnumberofverified,qualityassuredresearchoutputsperfull-timeequivalentin2010.

Thenationalandinternationalreputationofouracademicstaffcontinuedtoflourishin2010.NotableachievementsincludedDrChellieSpiller’sFulbrightNewZealand’sSeniorScholarawardwhichwillallowhertospendtimeatHarvardUniversityin2011,investigatingthecreationofspiritual,socialandeconomicwell-beinginNativeAmericanbusinessandMäoribusiness.DrKirstenHanna,InstituteofPublicPolicy,gainedinternationalmedia,professionalandacademicattentionforherresearchintotheuseofchildwitnessesinNewZealand’scriminaljusticesystem.HerresearchwassponsoredbytheLawFoundation,andherfindingswerepublicisedthroughtheinternationallawresourceLexisNexisandtheLondon-basedChildRightsInformationNetwork.TheBusinessInnovationCentre’schiefexecutiveofficer,JonathanKirkpatrick,wasre-electedasthechairpersonofIncubatorsNewZealand.Intheseroles,hewillcontinuetoprovidevaluableinsight,leadershipandindustryexperienceforemergingbusinessesintheAucklandregionandaroundNewZealand.

TheVice-Chancellor’sawardsforresearchexcellencecelebratethesedevelopingareasofstrength.In2010,ProfessorKathrynMcPhersonreceivedtheOutstandingResearcheraward,forhercontributiontorehabilitationstudies.TheOutstandingResearchTeamawardwasgiventotheInstituteforRadioAstronomyandSpaceResearch,fortheirground-breakingworktoestablishNewZealand’sfirstresearchradiotelescope.TheExcellenceasanEmergingResearcherawardwasjointlypresentedtoDrsHelenTregidga(FacultyofBusinessandLaw)andYunSingKoh(FacultyofDesignandCreativeTechnologies).ProfessorSimonMilnereceivedtheawardforExcellenceinPostgraduateSupervision.



3.1 Toincreasetheproportionofacademicstaffontermsandconditionsconducivetoconductingresearch.

AcademicstaffrespondedenthusiasticallytotheUniversity’sofferofachangetotheirtermsofemploymentwhichwouldallowgreatertimeforresearch.Theofferconsistedofanincreaseinsalaryandopportunitiesforsabbaticalandresearchleaveinreturnforacommensuratereductioninannualleave(tonofewerthanfourweeks)andanexpectationthatstaffengageinresearch.Thenumberofacademicstaffonthenewconditionsincreasedby33%in2010,from457FTEin2009to606FTE.2010wasthefinalyeartheofferwasmadetostaff.

Achieved


Toincreasethenumberofdoctoral * 212 218 167 andresearchmasterscompletions.

*Thisisarelativebenchmarkandnospecifictargetshavebeensetfor2008-2010.

Notachieved

Thenumberofdoctoralandresearchmasterscompletionsdeclinedslightlyfrom2009to2010,althoughthisresultstillrepresentsanoverallincreaseof27%since2008.Inpart,thiswasduetoadecreaseinenrolmentsforresearchmastersdegreesin2007whichhashadanimpactonthe2010result.TheUniversityhasadoptedastrategiccommitmenttopostgraduateeducationandresearchandwillcontinuetoinvestinbuildingpostgraduatecapabilitiesoverthenextfewyears.


Toincreaseexternalresearch $21M $18.3M $17.3M $15.2M revenue.46

Annualexternalresearch 8.1% 6.4% 6.7% 6.5% revenueasapercentageof totalexternalrevenue.

Toincreasethenumberofsuccessful 120 110 124 98 applicationstocontestable researchfundseachyear.

Notachieved

Althoughthe2010targetwasnotachieved,AUT’sexternalresearchrevenuecontinuestoincrease,up20%from2008.TheInvestment Plan 2008-2010setambitioustargetsforresearchrevenue,recognisingthatAUT’scontinueddevelopmentwascloselytiedtoincreasedresearchcapability.However,theprevailingeconomicconditionshaveaffectedmanytraditionalsourcesofresearchfunding;anincreasednumberoforganisationsarenowcontendingforareducedfundingpool.Inresponsetothishighlycompetitiveenvironment,AUThassoughttoimprovethequalityoffundingapplications,withsupportprovidedthroughtheUniversityResearchOffice.AUT’srecordachievementsinthe2010HealthResearchCouncilfundingroundareatestamenttothesuccessofthisinitiative.

3.2 Tograduateanincreasingnumberofdoctoralandresearchmastersstudentseachyear.45

3.3 Toincreaseexternalresearchrevenueto10%ofexternalrevenueby2012.

45 IntheInvestmentPlan2008-2010,thisperformancemeasurereferredtoincreasingtheproportionofdoctoralandresearchmasters students.InAUT’s2010VariationtotheInvestmentPlan,theKPIcomponentrelatingtoproportionwasdeleted;theperformancemeasure hasbeenrewordedtoreflecttheremainingKPIbasedonnumberofcompletions46 IncludesPerformance-BasedResearchFund(PBRF)funding.PBRFmoniesfor2010areprovisional.PBRFmoniesfor2009and2008include thewash-upsreceivedinthoseyearsforpreviousyears




Toincreasethenumberof 2,457 2,692 2,159 1,988 researchoutputsby10%each year.

Achieved

3.4 Toincreasethenumberofresearchoutputsby10%eachyear.


enGAGeMent international Advancement

stRAteGic tHeMe u AUt University will actively engage with the communities we serve and contribute to their social and economic development.

cRiticAL sUccess FActoR 4 uto enhance our international reputation

oBJectiVes uto strengthen and build strategic relationships and partnerships that advance education, research, and economic and social development

AstronginternationalpresenceiscrucialtoAUT’scontinueddevelopment;theUniversitydoesnotoperateinisolationbutisapowerfulallyinthepursuitofknowledge,understandingandsolutionstorealworldissues.AUT’sinternationalreputationisenhancedthroughrelationshipswithotheruniversities,researchorganisationsandinternationaleducationprogrammes.Mindfulofourcommunityresponsibilities,AUThaschosentofocusitsinternationalactivitiesontheAsia-Pacificregionand,in2010,AUTnegotiatedarticulationagreementsandmemorandaofunderstandingwithuniversitiesfromtheRepublicofKorea,Thailand,Indonesia,andChina.TheseagreementsbroadenthereachofAUT’sinternationalstudentrecruitment.

TheAsia-PacificregionalsocontinuedtobeafocusforAUT’sinternationalresearchprogramme.TheInstituteofPublicPolicyreceivedfundingfromthePacificIslandsChiefofPolicetoinvestigateAIDSknowledgeamongstpoliceofficersinPapuaNewGuinea,Vanuatu,FijiandSamoa.AUTworkedwiththelocalgovernmenttosupportthedevelopmentoftertiaryeducationintheCookIslands,andisconsideringapartnershipwiththeUniversityoftheSouthPacifictoexpanditsRarotonganCampus.AUTalsopartneredwithVictoriaUniversityofWellingtontoco-hostamajorconferenceofacademicsandbusinessleadersfromtheNewZealandChinaTradeAssociationonthenextfiveyearsofdevelopmentinChinaandthelikelyimpactsforNewZealand.

AUT’sjointventurewiththeVietnameseGovernment’sMinistryofEducationandTraining,knownasProject165,sponsorsseniorgovernmentofficialstostudyatAUTforuptosixmonths.ThefirstProject165studentsenrolledin2010andtheventureexpandedwiththesigningoftwonewtrainingcontracts;oneforEnglishlanguagetrainingandtheotherforshortcoursesforofficialsinmarineenvironmentalprotection.AUTUniversity’sreputationhasbeengrowinginVietnam,soitissignificantthatseveralVietnamesegovernmentandNZAIDscholarshipholderschoseAUTfordoctoralstudyin2010.

AUTcontinueditstrendofrisinginternationalstudentenrolments;3,154internationalstudentsfrom81countriesenrolledinMinistry-fundedprogrammesin2010,comparedwith3,000in2009.China,IndiaandSouthKorearemainedthemainsourcecountries,followedbySaudiArabiaandVietnam.


47 InternationalEFTScompriseInternationalMinistry-funded,InternationalMoEResearchandOnshoreInternationalPhDEFTS(excludingNot CategorisedEFTS)



Percentageofinternational >20% 26% 23% 21% studentsinpostgraduate programmes(EFTS).

Achieved

4.1 Toincreasethepercentageofinternationalstudentsstudyinginpostgraduateprogrammes.47

4.2 ToexpandinternationalcollaborativerelationshipsthatenhancetheUniversity’sprofile.

AUT’sinternationalreputationwasfurtherstrengthenedthroughout2010.UndertheleadershipofProfessorNigelHemmington,ProVice-Chancellor(International),AUTnegotiatednewarticulationagreementsandmemorandaofunderstandingwithBINUSUniversity(Indonesia),NamseoulUniversity(RepublicofKorea)andHueUniversity(Vietnam).AnewmemorandumofunderstandingwassignedwiththeUniversityofTexasatDallasandexistingagreementswererenewedwithanumberofinstitutions,includingChulalongkornUniversity(Thailand)andUniversidadCatolicadeChile.

AUThasalsocommencednegotiationswithanumberofotherinternationalorganisations,includingPetronas,Malaysia’snationaloilcompany.Undertheproposedprogramme,PetronaswouldsponsoremployeestostudyatAUT,indisciplinessuchassustainability,commerciallawandengineering.AresearchmastersandPhDprogrammeisunderconsiderationwithColfuturo,theColombianscholarshipprogramme.

TeAraPoutamaextendeditsverysuccessfulprogrammesinMäorilanguageretentionandrevitalisationontotheinternationalstagewiththedevelopmentofmajorcollaborationswithseveralindigenouspeoplesinNorthAmericaandEurope.

Achieved


eXceLLence in eDUcAtion curriculum Development

stRAteGic tHeMe u AUt University will provide excellent education that inspires students to reach their full potential.

cRiticAL sUccess FActoR 5 uto sustain the quality and relevance of our curriculum

oBJectiVes uto build and broaden discipline strengths uto ensure that the learning experience is of high quality

TeachingatAUTisledbythelatesttheoreticaldevelopmentsandgroundedbygenuinepracticalexperience.Thiscreatesanappliedcurriculumthatisrelevanttothecurrentmarketplace,whilereinforcingtheenduringimportanceofdiscovery,curiosityandinnovation.AUT’sgraduatesarethereforewellpreparedforemploymentandabletomakeasmoothtransitiontothelabourforce.ThisisevidencedbythecontinuedemployerconfidenceinAUT’sgraduates;the2010AUTGraduateDestinationSurveyshowedthat91%ofgraduateswereinemploymentorfurtherstudysixmonthsaftercompletingtheirdegrees.Thisexceedsthetargetof90%,andisanexcellentresultundertheprevailingeconomicconditions.

Inspirationalteachingisavitalcomponentinahigh-qualitylearningexperience.AUTthereforeencouragesacademicstafftoimprovetheirteachingskillsaswellasextendingtheirresearchportfolios.TheannualVice-Chancellor’sawardsforexcellenceinteachingcelebratetheexceptionalstandardofteachingacrossAUTUniversity;the2010recipientswere:SueRaleigh,FacultyofHealthandEnvironmentalSciences;GregTreadwellandajointawardtoJaneBerney,DavidBrownandPaulWhite,FacultyofDesignandCreativeTechnologies;andafaculty-wideawardtoTeAraPoutama.ThisawardrecognisedtheoutstandingcontributionofTeAraPoutama’steachingstaff,andtheirinnovativeuseofnewtechnologiestoenhancestudents’learning.

In2010,AUTmadeincreasinguseofitsinstitutionaldatainordertostrengthenitsqualityassuranceprocessesforthelearningexperience.FacultyBoardscontinuedtoreviewstudentperformancebutmadeuseofthenewTECperformancemetrics.Students’perspectivesontheiruniversityexperiencewerealsomonitoredusingtheAnnualProgrammeSurvey.OveralllevelsofsatisfactionwithAUTwereveryhighin2010with83%indicatingtheywouldrecommendAUTtoothers.Afurther14%indicatedamoreneutralopinionandonly3%werenotsatisfiedwiththeirexperience.ThisrepresentsanencouragingresultfortheUniversityandisconsistentwith2009results.

Inadditiontotheco-operativeeducationcomponentoftheirdegrees,AUTprovidesstudentswithawiderangeofopportunitiestoapplytheirskills.TheAUTVentureFundisnowinitssecondyearandcontinuestofosterstudents’entrepreneurialabilities;thewinnerofthe2009awardnowhasanonlineclothingstoreandsponsoredtheNewZealandfreedivingchampionshipsin2010.Thewinningideasin2010wereapostcardbusiness,aviolence-freehorsetrainingprogramme,andawebsitelinkingadvertiserswithprivatecarowners.NetworkPRsponsoredacompetitionforseniorpublicrelationsandmarketingstudentstodesignacampaignforanot-for-profitorganisation.ArtisticstudentshadtheopportunitytocompeteintheCreativeWritingcompetition,whichhadbothshortstoryandsongwritingcategories.TheAD10festivalandAUTRookiefashionshowcontinuetocelebratetheoutstandingtalentofAUT’sfinal-yearartanddesignstudents.




Toachievearateof90%of >90% 91% 93% * Universitygraduatesin employmentorfurtherstudy sixmonthsaftergraduating.

*Informationnotavailablefor2008.

Achieved

5.1 Tomaintainaminimumof90%ofourgraduatesinemploymentorfurtherstudysixmonthsaftergraduating.

5.2 Toensureprocessesinnewprogrammedevelopmentandprogrammereviewmaintainformalstakeholderrepresentation.

5.3 Toensurethateachmajordisciplineareahasanindustryadvisorycommittee.

5.4 ToensureeachResearchInstitutehasadevelopmentboardwhosemembershipincludesexternalstakeholders.

Professionalbodies,industrystakeholdersandcommunityrepresentativesareconsultedonnewprogrammeorsubjectproposals.Externalacademicandprofessional,communityorindustrystakeholdersarealsoincludedaspanelmembersonprogrammeapprovalandreviewpanels.

Achieved

Eachmajordisciplineareahasanindustryadvisorycommittee.AUTstaffengagedwithindustryinabroadrangeofdisciplineareasin2010toensureacademicprogrammesremainedrelevant.PleaserefertotheDirectoryofIndustryAdvisoryCommitteeswithinthisAnnualReportforalistofCommitteesandtheirrespectiveChairs.

Achieved

AUTrequiresinputfromindustry,communitygroupsandotherstakeholderstocreateitsdistinctivebrandofappliedresearch.ExternalstakeholdersarerepresentedonthedevelopmentboardsoftenofAUT’sthirteenresearchinstitutes.Asindicatedinthe2009AnnualReport,therole,functionandcontributionofAUT’sresearchinstitutesarebeingprogressivelyreviewed,withaviewtomaximisingtheireffectiveness.Decisionsonthestructureofresearchinstituteswillbemadeoverthenexttwoyears;untilthen,furtherexpansionofstakeholderrepresentationisunlikely.

Substantiallyachieved


enGAGeMent Mäori Advancement Pasifika Advancement community Relationships

stRAteGic tHeMe u AUt University will actively engage with the communities it serves and contribute to their social and economic development.

cRiticAL sUccess FActoR 6 uto ensure that the staff and student profile better reflects the population we serve

oBJectiVes uto strengthen and build strategic relationships and partnerships that advance education, research, and economic and social development uto honour the commitment to the treaty of waitangi by being the university of choice for Mäori uto encourage access and success in university education for students from the diverse communities within the Auckland Region

In2010,AUTenhanceditsrelationshipswithmanawhenuagroups,iwiandMäori,Pasifika,Asian,industryandbusinesscommunities.ParticularattentionwasgiventodevelopingtheserelationshipsinSouthAucklandtoensurethesuccessofthenewManukauCampusandconsolidateAUT’spositionasaleadingtertiaryproviderinAuckland.

TheUniversityiscommittedtoencouragingaccessandsuccessinuniversityeducationforAuckland’sdiversecommunities,particularlyMäoriandPasifika.EnrolmentpatternsforMäoriandPasifikastudentshavechangeddramaticallyoverthelastfewyearswithanotableincreaseintheproportionsofbothgroupsstudyinginhighereducation.Mäoristudentsinhighereducationnowmakeup82%ofallMäoriEFTS,up10%from2008andexceedingthe2010target.Similarly,theproportionofPasifikaEFTSinhighereducationhasincreasedby8%since2008,upto66%in2010andexceedingthe2010target.ThisprovidesgoodevidenceofAUT’ssuccessinbuildingtheaspirationforhighereducationinthesehistoricallyunder-representedgroups.

AUTcontinuedtobea‘universityofchoice’forMäoriandPasifika.BasedontheTECperformancedatareleasedin2010,AUThadthehighestproportionofPasifikastudentsofalluniversitiesandwasthirdequalfortheproportionofMäoristudents,behindtheUniversityofWaikatoandMasseyUniversity.AUTalsoaimstoan‘employerofchoice’andhasundertakenanumberofinitiativestobuildamorerepresentativestaffprofile.Thislong-termstrategyincludesinitiativestodevelopcandidatesinternallysuchastheMäoriandPasifikaTeachingAssistantshipprogramme.Despitefiercecompetitionfordoctoralqualifiedstaff,AUTmadeseveralkeyMäoriacademicappointmentsin2010includingAssociateProfessorDeniseWilsonintheFacultyofHealthandEnvironmentalSciencesandDrsDeanMahutaandRachelKa’ai-MahutainTeAraPoutama.AnumberofAUT’sPasifikastaffwereappointedtohighprofilerolesin2010,includingPaulineWintertotheTECBoardofCommissionersandDrSemisiJamesPrescotttotheBoardoftheFamiliesCommission.

Forthefirsttimein2010,AUTdeliveredtheGlobalMessengerLeadershipTrainingprogrammefortheNewZealandSpecialOlympics.TheprogrammeraisesawarenessoftheSpecialOlympicsandencouragespotentialathletestoparticipate,competeandnetworkwithbusiness,schoolsandcommunitygroupsintheirregion.TheaimistogenerateongoingsupportforlocalOlympiansandtiesinwithAUT’sAgentsofChangeengagementstrategy,particularlySHINEDisability,whichbuildsleadershipcapacityforelitedisabledathletes.


Key performance indicators Regional Actual Proportion48 201049 2009 2008

Mäori 9.2% 10% 10% 9%

Pasifika 11.2% 12% 11% 10%

European 52.3% 42% 42% 43%

Asian 19.5% 27% 27% 27%

NonDeclared/Other 9.8% 10% 10% 11%

Key performance indicator Actual 2010 2009 2008

AUTUniversity 83% 83% 85%

Universitysub-sectoraverage51 * * 84%

*Informationnotavailablefor2009or2010sothelevelofachievementcannotbemeasured.

The2010coursecompletionratesforstudentsagedunder25whowereenrolledinhighereducationprogrammesremainedsteadyat83%.Thisresultiscomparabletothelastavailablesub-sectoraverage.

Key performance indicators Regional Actual Proportion50 2010 2009 2008

Mäori 9.2% 6% 6% 6%

Pasifika 11.2% 4% 4% 5%

European 52.3% 67% 62% 63%

Asian 19.5% 15% 15% 14%

NonDeclared/Other 9.8% 8% 13% 12%

Partiallyachieved

TheintentofthisKPIwastoimprovetherepresentationofstudentsandstafffromAUT’stargetpopulations,MäoriandPasifika,whoaregenerallyunder-representedintertiaryeducation.StudentparticipationratesofbothgroupsnowslightlyexceedregionalproportionsandPasifikastudentshavebeentrendingupwardsforthelastthreeyears.

AUTseekstoincreasethenumberofMäoriandPasifikaemployees,particularlywithinouracademicstaff.TheUniversityremainscommittedtothisendeavourandacknowledgesthechallengesnotonlyforAUTbutforthetertiarysectorgenerally;itiswidelyrecognisedthatthemarketforMäoriandPasifikadoctoralqualifiedstaffisextremelycompetitive.AUThaslaunchedanumberofinitiativestogrowitsownMäoriandPasifikastaff,includingprovidingacademicemploymentopportunitiesthroughtheMäoriandPasifikaTeachingAssistantshipprogramme.


6.1.1 ToensuretheUniversity’sdomesticstudentprofilebetterreflectsthedemographicmixoftheregion.

6.2 Toensurethatcoursecompletionratesforstudentsagedunder25enrolledinqualificationsatdegreelevelandaboveareequaltoorabovetheuniversitysub-sectoraverage.

6.1.2 ToensuretheUniversity’sstaffprofilebetterreflectsthedemographicmixoftheregion.

48 Regionalethnicproportionsarebasedon2006Censusresults(StatisticsNewZealand),andhavebeenadjustedtocapturethe15-64agerange. StatisticsNewZealandethnicityreportingallowspeopletoclaimmorethanoneethnicity,meaningthepercentagetotalsusuallyadduptomore than100%.AUTstudentandstaffdataisreportedusingtheindividual’sfirstself-selectedethnicity.ComparisonofStatisticsNewZealandand AUTdataisindicative49 The2010figuresforethnicbreakdownofstudentstotal101%duetorounding50 Asperfootnote4851 Theinformationfor2008wasprovidedbytheMarch2009TECProgressMonitoringReport(PMR).ThePMRmeasuresstudentsundertheage of25thathaveenrolledindegreeandgraduatediplomaprogrammesonly.From2011,thiscalculationwillbecompletedusingtheTECeducational performancemetrics




Toincreasethepercentageof 75% 82% 78% 72% MäoriEFTS(asaproportionof totalMäoriEFTS)enrolledin highereducationprogrammes.

Toincreasethepercentageof 57% 66% 62% 58% PasifikaEFTS(asaproportionof totalPasifikaEFTS)enrolledin highereducationprogrammes.

Achieved

6.3 ToincreasetheproportionsofMäoriandPasifikaEFTSinhighereducationprogrammes.


Mäori >73% 78% 79% 81%

Pasifika >70% 69% 67% 72%

Partiallyachieved

The2010coursecompletiontargetforMäoristudentsinhighereducationwasachieved.WhilethecoursecompletionrateforPasifikastudentsinhighereducationincreasedby2%to69%in2010,itwasjustbelowthetarget.AUTiscurrentlyconductingareviewofstudentcompletionsandwillcontinuetorefineitsprocessestosupportstudentsatriskofnon-completion.


Domesticunder-25studentsto 70% 69% 69% 70% comprise70%ormoreoftotal domestichighereducationEFTS.

Notachieved

Thetargetof70%ormoreofdomesticstudentEFTSagedunder25yearsenrolledinhighereducationqualificationswasnarrowlymissedin2010.However,thenumberofdomesticEFTSagedunder25increasedby9%,from8,102EFTSin2009to8,811EFTSin2010.Inpart,failingtoreachthetargetof70%isduetoAUT’ssuccessinbuildingitspostgraduateresearchprovision,particularlyatdoctorallevel,asthesestudentsarepredominantlyaged25yearsorover.TheUniversitycontinuesitsinitiativestorecruitstudentsagedunder25,includingafirst-yearexperienceinitiativetosupportstudentstransitioningfromsecondarytotertiarystudy,scholarshipsforschoolleaversfromhistoricallyunder-representedgroupsandahostofinnovativeprojectsconductedinconjunctionwithAuckland’ssecondaryschoolswhichfosteraspirationsfordegree-levelstudy.

6.4 ToincreasecoursecompletionratesforhighereducationqualificationsamongstMäoriandPasifikastudents.

6.5 ToincreasetheproportionofEFTSfordomesticstudentsagedunder25enrolledinhighereducationqualifications.



6.6 Toensurethatunder-representedgroupsintheuniversitysub-sectorarereflectedinthedemographicmixoftheManukauCampusstudentpopulation.

AUTUniversityestablisheditsManukauCampusinordertoprovideuniversity-leveleducationtocommunitieswhichhavepreviouslybeenunder-representedintertiaryeducation.ThecampushasbeenembracedbytheregionwithMäoriandPasifikastudentsbeingespeciallywell-represented,accountingfor67%ofstudentsin2010.WhileAUTexpectsthisproportiontoshiftasthecampusgrows,itremainscommittedtoprovidingalearningenvironmentthatiswelcomingandsupportiveofMäori,Pasifikaandotherunder-representedgroups.

Achieved


stAFF DeVeLoPMent stRAteGic tHeMe u AUt University will attract, develop and retain excellent staff.

cRiticAL sUccess FActoR 7 uto ensure our people are inspired by, and contribute to, the achievement of our mission

oBJectiVes uto ensure the University provides a challenging, stimulating and rewarding work environment for all staff uto promote the development of well-rounded careers for all staff

AUThasundergoneconsiderableevolutionoverthelasttenyears,initsprofile,reputation,activitiesandstaffing.AnorganisationalreviewofHumanResources(HR)wasundertakeninthelatterhalfof2010.Thekeygoalofthereviewwastochangethebalanceofactivitiesfromtheroutineandtransactionaltothetransformationalandstrategic.Significantoutcomesincludeincreasedfocusonorganisationaldevelopmentactivities,includingthemergeroftheOrganisationalandDevelopmentGroup(ODG)withHumanResourcestosynergiseresourcesforleadershipandprofessionaldevelopment.In2010,57leadersormanagerstookpartinthein-houseLeadershipandManagementEnhancementProgrammeand24completedthesixmodulecoursein2010.ManymoreAUTstafftookuptheopportunitytodeveloptheirprofessionalskillsthroughthesuiteofprogrammesofferedthroughtheODG.Theseprogrammesincludepersonalandprofessionaldevelopmentcoursessuchascareerplanning,projectandtimemanagementandcustomerservice,aswellascoursesonhealthandsafety,AUTsystemsandprocessesandinformationtechnology.

TheCentreforLearningandTeaching(CfLAT)wasestablishedinJanuarytosupporttheUniversity’sgoaltobethebestplacetolearn.TheCentreprovidessupportforacademicstaffinteachingandlearningdevelopmentandpromotesexcellenceandinnovationinteachingpracticeusingblendedlearningapproaches.2010activitiesfocussedonimprovingstudentretentionandsuccessanddevelopingthedigitalcapabilitiesofacademicstaff.BoththeCfLATandtheODGaresupportedbytheUniversity’songoinginvestmentof1.5%ofgrosssalariesforstaffdevelopment.

Significantgainswerealsomadeindevelopingtheresearchcapabilitiesofstaff.In2010,149academicstafftookupemploymentconditionsconducivetoconductingresearch,joining457staffwhohadpreviouslyjoinedthescheme.ThelaunchoftheAUTSummerResearchAssistantshipAwardswashugelypopularwith40academicstafftakingonpostgraduatestudentsasresearchassistantsoverthesummerbreak.AcademicstaffclosetocompletingtheirdoctoralqualificationswereeligibletoapplyforDoctoralStudyAwardswhichreleasedthemfromteachingandadministrativedutiesforuptosixmonths.Thisyeartherewere15successfulstaffrecipients.

Anumberofstaffwererecognisedwithprestigiousawardsin2010.ProfessorJohnMoorfieldwasmadeaCompaniontotheQueen’sServiceOrderforhisservicestoMäorilanguageeducationandRichardHall,GeneralManager,CorporateServices,becameanAdditionalMemberoftheNewZealandOrderofMeritforservicestotheNewZealandDefenceForce.ProfessorRichardBedford,ProVice-Chancellor(Research)wasawardedtheDameJoanMetgemedalbytheRoyalSocietyofNewZealandforhisresearchintomigrationintheAsia-Pacificregion.AssociateDeanJayReid,FacultyofAppliedHumanities,receivedaUniversityofOxfordfellowship,whileDrJunLuandAssociateProfessorFrancesJosephreceivedRoyalSocietytravelgrants.

TheUniversitycontinuestomaintainahighstandardofhealthandsafetyforitsstaff.In2010,AUTprovidedarangeofcoursestoraiseknowledgeofhealthandsafetyissuesforstaffandmanagement.Riskassessmentswereundertakenforanumberofcoreactivitiesandhealthandsafetyperformancewasreportedtoseniormanagementusingasuiteofleadingindicators.Facultiesanddepartmentsnowholdquarterlyhealthandsafetymeetingsandin2010introducedprogrammestorewardandrecogniseoutstandingstaffcontributionstohealthandsafety.AnindependentauditoftheUniversity’shealthandsafetysystemswascarriedoutfortheAccidentCompensationCorporation(ACC)WorkplaceSafetyManagementPracticesProgrammeandAUTwassuccessfulinachievingtertiarylevel.




Tomaintainastaffdevelopment 1.5% 1.5% 1.5% 1.5% budgetequivalentto1.5%of grosssalaries.

Toensuretheaverageturnover ofstaffismaintainedwithinthe followingranges:4-6%for academicstaff;10-14%for administrativestaff.

•Academicstaff 4%-6% 4.3% 6.0% 5.4%

•Administrativestaff 10%-14% 6.7% 9.1% 10.3%

Partiallyachieved

In2010,academicstaffturnoverwaswithinthetargetrange(4.3%).Alliedstaffhadlowerturnoverat6.7%thanthetargetrange(10-14%)althoughthiswasunsurprisinggiventherecessionaryemploymentmarket.

7.1 Todevelopstaffcapabilityandachieveconsistentlyhighlevelsofstaffsatisfaction.


sUstAinABiLitystRAteGic tHeMe u AUt University will ensure its sustainability through good management and strong performance and reputation.

cRiticAL sUccess FActoRs 8, 9 AnD 10 uto improve the physical infrastructure of the campus uto be a high performing organisation uto ensure financial viability

oBJectiVes uto ensure financial sustainability uto enhance the effectiveness and efficiency of the University’s operations uto be a good steward of the University’s assets

AUTUniversityisbuildingforthefuture;fromstrategicpartnershipsandnewcapitaldevelopmentstogrowth-managementmeasuresandfinancialstructures,AUTisimplementingthephysicalandsystemicinfrastructurerequiredtoremainattheforefrontofeducationalinnovation.ThepartnershipwithMillenniumInstituteofSportandHealth(MISH)continuedtobringdividendstobothparties;substantialGovernment,councilandprivateinvestorgrantsin2010willallowthefirststageofdevelopmentattheAUT-MillenniumCampustobegin.Thesearecrucialstepstowardsthecreationofaworld-classsportsscienceresearchfacilityandtrainingcentreforhigh-performanceathletes.

ManukauCampuswasAUT’smajorstrategicdevelopmentin2010.TheUniversityaimstodeveloptheCampusfromitscurrentcapacityofover400EFTSto5,000EFTSby2020.Reachingthistotalwillensurethelong-termviabilityoftheCampusandfulfiltheaspirationsoftheCountiesManukaucommunity.AUTundertookseveralmajorcapitalprojectsin2010:thefirsttwostagesofdevelopmentatManukauCampus,turninganabandonedsetofofficebuildingsintoamodern,vibrantuniversitycampus;thenewEducationbuildingonNorthShoreCampus;andthecommencementofworkonWGPrecinct,AUT’slargestcapitalprojecttodate.Throughthesedevelopments,AUTwillestablishalegacyofexcellentdesign,basedonsustainableprinciplesandincorporatingefficientpractices,recognisingthatthesebuildingswillhaveasignificanteffectontheirsurroundingslongintothefuture.ThebuildingsfacilitateAUT’sinnovativeapproachtoteachingandlearning;allsupportsocialinteractionbetweenstudents,haveflexiblefurnishingstoaccommodatearangeoflearningstylesandareequippedwiththelatesttechnologies.Newbuildingsaredesignedtooperateefficiently,minimisingenergyrequirementsandwastecreation.AUTisalsoimplementingthesesustainabilitystrategiesinexistingbuildingsthroughplannedmaintenanceandminorcapitalworks.

Strongenrolmentdemandcontinuedthroughout2010,despiteexternalrestrictionsimposedbytheTECondomesticstudentfunding.Thishighlightedtheneedforamorerobustadmissionsmanagementsystem,fortheUniversitytocontinuemeetingitsjointobjectivesofexcellenceandopportunity.From2011,allapplicationstoundergraduateandsub-degreeprogrammeswillbecentralisedthroughtheUniversityAdmissionsOffice(UAO),providingaclear,University-wideviewofadmissions,improvedreportingandmonitoring,andasinglepointofcontactwithapplicants.

AUTisseekingtodiversifyrevenuestreams,decreasingitstraditionalrelianceonGovernmentfundingandincreasingincomethroughresearch,internationalisationactivitiesandotheralternativesources.TheaggressivebuildingprogrammeisalsodesignedtoreducetheUniversity’srelianceonleasedspace,particularlyinthecentralcity;optionsforfundingfuturecapitaldevelopmentmayincludepublic-privatepartnershipswithlocaliwi,jointventuresandphilanthropicsponsorship.

RevenueperacademicFTEincreasedby11%,from$270,960in2009to$301,881in2010surpassingthetargetof$273,080.EquityperEFTSalsoincreasedfrom2009despitecontinuedgrowthinEFTS.In2010,AUTcontinuedtomaintainaneffectivebalancebetweenacademicandadministrativecosts.



8.1 Todevelopandimplementatenyearcapitaldevelopmentplan.

Key performance indicators

CapitalDevelopment Budget Actual Actual Actual Programme($000s) 2010 2010 2009 2008

WGPrecinct 7,000 7,294 1,182 1,294

EarlyChildhood– 3,200 2,945 413 62 NorthShoreCampus

ScienceandTechnologyBuilding – 134 2,395 55 –carparkredevelopment

Othermajorcapitalworks – – 20,010 8,474

Totalmajorcapitalworks 10,200 10,373 24,000 9,885

Minorcapitalworks 3,226 1,748 3,080 1,368

Library 5,000 4,732 4,829 5,903

InformationandCommunication 1,844 2,441 2,839 344 Technology

Other 4,637 2,954 1,731 2,208

TotalexcludingManukau 24,907 22,248 36,479 19,708

Manukau–seeKPI8.2 1,840 3,366 3,237 42,517

total 26,747 25,614 39,716 62,225

TheCapitalAssetManagementPlan2010–2020(CAMP)isderivedfromandsupportsthestrategicdirectionoftheUniversityandensuresapositivelegacyforAUT’sstakeholders,bothpresentandfuturegenerations.In2010,AUTupdateditsCAMP;majorchangesincludedthedevelopmentofManukauCampustobuilditscapacityto5,000EFTSby2020,UniversityLibraryandInformationandCommunicationTechnologyplans.Followingahigh-levelauditofthefacilities-relatedassetmanagementplaninOctober,theCAMPwillbestrengthenedinlinewiththeauditrecommendations.

ByDecember2010,AUT’scapitalexpendituretotalled$25.6millionor96%ofthebudgetedtotal.Themajorityofthevariancestobudgetwereduetotiming,withconstructionandacquisitionsbudgetedin2010butcompletedinthe2010-11summerbreak.TheadditionalexpenditureonICTwasduetotheinstallationofWi-Fiinthestudenthostelsandthepurchaseofpreviouslyleasedequipment.

Achieved

8.2 TodevelopandimplementtheManukauCampusdevelopmentplan.

Key performance indicators Budget Actual Actual Actual ($000s) 2010 2010 2009 2008

ManukauCampusland – – – 29,190

ManukauCampusbuildings 1,200 2,938 3,227 13,327

Minorcapitalworks 200 185 – –

Library – 68 – –

InformationandCommunication 164 69 7 – Technology

Other 276 106 3 –

total Manukau 1,840 3,366 3,237 42,517

Achieved

AbovebudgetexpenditureonbuildingswasduetotherefurbishmentofMCandMDbuildingswhichwerecompletedin2010butbudgetedin2009.




Toincreaserevenueper $273,080* $301,881 $270,960 $238,504 academicFTE.

ToincreaseequityperEFTS. ** $18,724 $18,673 $19,692

Tomaintainaneffective balancebetweenacademic andadministrativecosts: •Ratioofacademicto 1:0.9 1:1.0 1:0.9 1:0.9 administrativestaff •Ratioofstudentsto 19.4:1* 19.9:1 18.8:1 16.8:1 academicstaff.52

*ThisisabudgettargetasnoformaltargetwasnegotiatedwiththeTEC **Nospecifictargetwassetfor2010

Achieved

AUTmaintainedaneffectivebalancebetweenacademicandadministrativecostsin2010.Theratioofacademictoadministrativestaffreflectsgreateradministrativesupportofacademicstaff.StronggrowthinEFTSsince2008(up13%)hasledtoahigherratioofstudentstoacademicstaffthanthe2010target.For2010inparticular,thisfigureisdistortedbyalargerthanbudgetednumberofCommunityEFTS(up101%since2008).

9.1 ToensurethattheUniversityisoperatingeffectivelyandefficiently.

52 TotalstudentEFTS/totalFTEacademicstaff


Ratio1:Minimumsurplus/ 2.4%* 6.4% 3.2% 2.1% externalrevenue%.

*ThistargetwasformallynegotiatedwiththeTECthroughthe$50millionSuspensoryLoannegotiationprocess

Achieved

10.1 Tomeetappropriatefinancialratios.


DiRectoRy oF inDUstRy ADVisoRy coMMittees


Following is a list of the Industry Advisory Committees and their respective Chairs.

FAcULty oF APPLieD HUMAnities

CentreforRefugeeEducation Abdirizak Abdi, MoE,AucklandRegionalOffice

Education–Career Gabrielle Riley, ElectriciansITO

Education–EarlyChildhood Rosemary searle,Auckland Kindergarten Association

Education–PasifikaEarlyChildhood Dr Mere Kepa,Community

Education–Postgraduate Dr Vicki carpenter,TheUniversityofAuckland

Education–Primary Paul engles,StMary’sSchool

Education–Secondary sonia Joyce,OrewaCollege

Education–Tertiary Helen sword,TheUniversityofAuckland Jens Hansen,IndependentEducationResearcher

HospitalityandTourism David comery,WaipunaHotelandConferenceCentre

InternationalLanguages caroline Lassiter,AucklandCityCouncil (nowAucklandCouncil)

LanguageEducation Dr sue Gray,TheUniversityofAuckland

SocialSciences Dr oksana opara,AUTUniversity

FAcULty oF BUsiness AnD LAw

Dean’sAdvisoryBoard Mark Porath,PorathExecutiveSearch

MBAAdvisoryCommittee Frank olsson,ChairmanofAucklandChamberOrchestra

ProgrammesAdvisoryCommittee terry Patterson,IASNewZealand

inDUstRy ADVisoRy coMMittees


FAcULty oF DesiGn AnD cReAtiVe tecHnoLoGies

CommunicationStudies Dallas Gurney,NewstalkZB

ComputerandInformationScience Jan Hilder,IPAAXNewZealand

ConstructionManagement Dan Ashby,HawkinsConstruction(NZ)Ltd

ElectricalandElectronicEngineering tim otley,TruTestLtd

FashionTechnology Peter Meadowcraft,GlobalTextilesLtd

GraphicDesign Kerenza smith,DesignsmithLtd

MathematicalScience Row Robinson,MercuryEnergy

MechanicalandProductionEngineering RotatingChairs

SpatialDesign Mark Kirby,AUTUniversity

VisualArts Ron Brownson,NewZealandandPacificArt, AucklandCityArtGallery

FAcULty oF HeALtH AnD enViRonMentAL sciences

AdultandChildPsychotherapy Pauline Andrews,Psychotherapist,PrivatePractice

AppliedMentalHealth John cavanagh,SocialDevelopmentManager, MinistryofSocialDevelopment

AppliedSciences Karen De Lacy,BusinessManager,AucklandLaboratory

Dance Dagmar simon,DanceTeacher

MedicalLaboratoryScience colleen Behr,NewZealandBloodService

Midwifery Anne yates,DirectorofMidwifery,AucklandDistrict HealthBoard

Nursing Anne Fitisemanu,AucklandDistrictHealthBoard

OccupationalTherapy Kim Henneker,Hawke’sBayDistrictHealthBoard

OralHealth Pip Zammit, NorthlandDentalServices

ParamedicandEmergencySpecialities Major Brendon wood, MinistryofCivilDefenceand EmergencyManagement

Physiotherapy Darren Knight, ACCAucklandBranch

Podiatry Michele Garrett,PodiatristsBoardofNewZealand

PostgraduatePsychology Associate Professor Douglas Boer,UniversityofWaikato

SportandRecreation Mike Lacey, YMCANorthShore


FinAnciAL stAteMents


For the year ended 31 December 2010

University consolidated 2010 2010 2009 2010 2009 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s

Note

ReVenUe

Governmentoperationalfunding 2 138,709 137,137 131,909 138,709 131,909

Studenttuitionfees 3 112,849 110,213 96,169 112,849 96,169

Researchgrants 4 9,215 10,624 8,366 9,270 8,371

Otherincome 5 26,618 24,664 23,678 26,961 24,343

totAL ReVenUe 287,391 282,638 260,122 287,789 260,792

eXPenses

Personnelcosts 6 168,268 167,928 161,372 168,268 161,372

Suppliesandothercosts 7 64,906 66,571 58,782 65,150 59,450

Depreciation,amortisation 8 32,322 29,886 28,064 32,322 28,064andimpairment

total expenses before finance costs 265,496 264,385 248,218 265,740 248,886

Operatingsurplusbeforefinancecosts 21,895 18,253 11,904 22,049 11,906

Financecosts 9 3,548 4,812 3,856 3,548 3,856

operating surplus 18,347 13,441 8,048 18,501 8,050

Shareofassociate’ssurplus 14 – – – 45 21

Shareofjointly-controlled 15 – – – 2,266 (145)entity’ssurplus/(deficit)

net sURPLUs 18,347 13,441 8,048 20,812 7,926

TheaccompanyingnotesformpartoftheseFinancialStatements.

incoMe stAteMent




Note

net sURPLUs 18,347 13,441 8,048 20,812 7,926

otHeR coMPReHensiVe incoMe

Netgain/(loss)onavailable-for-sale 26 (4) (24) (24) (4) (24)financialassets

Netgain/(loss)oncashflow 26 (371) 244 244 (371) 244hedges

Netgain/(loss)onlandand 26 242 1,922 – 242 –buildingsrevaluation

total other comprehensive income (133) 2,142 220 (133) 220

totAL coMPReHensiVe incoMe 18,214 15,583 8,268 20,679 8,146


stAteMent oF coMPReHensiVeincoMe


As at 31 December 2010


Note

cURRent Assets Cashandcashequivalents 10 3,706 80 817 4,662 1,870Short-terminvestments 129 – – 129 –Tradeandotherreceivables 11 23,474 5,688 7,553 23,550 7,584Inventories 204 171 160 204 160Prepayments 1,771 1,059 1,794 1,771 1,796Derivativefinancialinstruments 23 14 – – 14 –

total current assets 29,298 6,998 10,324 30,330 11,410

non-cURRent Assets Available-for-salefinancialassets 12 157 185 161 157 161Investmentinsubsidiaries 13 100 100 100 – –Investmentinassociate 14 417 417 417 535 508Investmentinjointly-controlled 15 18,300 18,845 10,800 20,421 10,655entityProperty,plantandequipment 16 464,525 462,617 461,822 464,525 461,822Intangibleassets 17 3,442 4,650 4,649 3,442 4,649Derivativefinancialinstruments 23 – – 228 – 228

total non-current assets 486,941 486,814 478,177 489,080 478,023

totAL Assets 516,239 493,812 488,501 519,410 489,433

cURRent LiABiLities Tradeandotherpayables 18 26,185 14,115 21,064 26,156 21,261Incomeinadvance 19 42,778 17,552 24,532 42,778 24,532Employeeentitlements 20 13,565 7,348 11,496 13,565 11,496Provisions 21 82 158 288 82 288Financeleaseborrowings 22 5,079 5,908 5,273 5,079 5,273Derivativefinancialinstruments 23 176 – 15 176 15

total current liabilities 87,865 45,081 62,668 87,836 62,865

non-cURRent LiABiLities Borrowings 24 33,550 55,300 48,700 33,550 48,700Employeeentitlements 20 2,214 1,736 2,046 2,214 2,046Provisions 21 706 528 381 706 381Financeleaseborrowings 22 36,851 38,042 37,835 36,851 37,835Derivativefinancialinstruments 23 203 251 235 203 235

total non-current Liabilities 73,524 95,857 89,197 73,524 89,197

totAL LiABiLities 161,389 140,938 151,865 161,360 152,062

eQUity Generalequity 25 237,841 234,262 219,494 241,041 220,229Revaluationreserves 26 117,009 118,612 117,142 117,009 117,142

total equity 354,850 352,874 336,636 358,050 337,371

totAL LiABiLities AnD eQUity 516,239 493,812 488,501 519,410 489,433


BALAnce sHeet




totAL eQUity At tHe 336,636 337,291 328,841 337,371 329,698BeGinninG oF tHe yeAR

Adjustmenttoprioryear’sopening – – (473) – (473)equity(Note39)

coMPReHensiVe incoMe

NetSurplus 18,347 13,441 8,048 20,812 7,926

OtherComprehensiveIncome (133) 2,142 220 (133) 220

total comprehensive income 18,214 15,583 8,268 20,679 8,146

totAL eQUity At tHe 354,850 352,874 336,636 358,050 337,371enD oF tHe yeAR


stAteMent oF cHAnGes in eQUity




Note

cAsH FLows FRoMoPeRAtinG ActiVities

ReceiptsfromGovernmentgrants 140,072 130,922 130,787 140,072 130,787

Receiptsfromstudenttuitionfees 112,162 109,522 98,453 112,162 98,453

Receiptsfromservice-provided 24,270 27,979 25,604 24,270 25,604activities

Interestreceived 373 – 6 389 30

Dividendreceived 22 – 88 22 88

Receiptsfromotherrevenue 13,292 14,216 9,868 13,619 10,528

Paymentstoemployees (166,031) (167,198) (156,915) (166,031) (156,915)

Paymentstosuppliers (63,201) (67,302) (56,014) (63,618) (56,679)

Interestpaid (3,548) (5,008) (3,856) (3,548) (3,856)

NetGSTreceived/(paid)53 1,533 – 3,885 1,512 3,905

net cAsH FLows FRoM 29 58,944 43,131 51,906 58,849 51,945oPeRAtinG ActiVities

cAsH FLows FRoMinVestinG ActiVities

Proceedsfromsaleofproperty, 50 – 64 50 64plantandequipment

Purchasesofproperty, (25,614) (26,747) (39,716) (25,614) (39,716)plantandequipment

Purchasesofintangibleassets (1,430) (2,203) (752) (1,430) (752)

Placementofshort-terminvestments (129) – – (129) –

Acquisitionofinvestments (7,500) (7,500) (7,500) (7,500) (7,500)

net cAsH FLows FRoM (34,623) (36,450) (47,904) (34,623) (47,904) inVestinG ActiVities

cAsH FLows FRoMFinAncinG ActiVities

Proceedsfrom/(repaymentof) (15,150) (5,745) 2,500 (15,150) 2,500borrowings

Repaymentoffinancelease (6,282) (1,150) (6,398) (6,282) (6,398)borrowings

net cAsH FLows FRoM (21,432) (6,895) (3,898) (21,432) (3,898)FinAncinG ActiVities

Netincrease/(decrease) 2,889 (214) 104 2,794 143incashandcashequivalents

Cashandcashequivalents 817 294 713 1,868 1,727atbeginningoftheyear

cAsH AnD cAsH eQUiVALents 3,706 80 817 4,662 1,870 At enD oF tHe yeAR


stAteMent oF cAsH FLows

53 TheGST(net)componentofoperatingactivitiesreflectsthenetGSTpaidandreceivedwiththeInlandRevenueDepartment.TheGST(net) componenthasbeenpresentedonanetbasis,asthegrossamountsdonotprovidemeaningfulinformationforfinancialstatementpurposes


notes to tHe consoLiDAteDFinAnciAL stAteMents


note 1: sUMMARy oF siGniFicAnt AccoUntinG PoLicies

TheprincipalaccountingpoliciesappliedinthepreparationoftheseFinancialStatementsaresetoutbelow.TheFinancialStatementsincludeseparateFinancialStatementsforAucklandUniversityofTechnology(theUniversity)asanindividualentityandtheconsolidatedentityconsistingoftheUniversity,itssubsidiaries,andinterestinanassociateandajointly-controlledentity(theGroup).

(a) Basis of preparation

Reporting entity

AucklandUniversityofTechnologyisauniversityundertheAucklandUniversityofTechnology(Establishment)Order1999andisdomiciledinNewZealand.TheprimaryobjectiveoftheUniversityistoprovidetertiaryeducationservicesforthebenefitofthecommunityratherthanmakingafinancialreturn.Forthepurposesoffinancialreporting,theUniversityanditssubsidiariesareconsideredtobepublicbenefitentities.

TheFinancialStatementsoftheUniversityandtheGrouparefortheyearended31December2010.TheFinancialStatementsareauthorisedforissuebyAucklandUniversityofTechnologyCouncilon28March2011.

Statement of compliance

TheFinancialStatementsoftheUniversityandtheGrouphavebeenpreparedinaccordancewiththerequirementsoftheCrownEntitiesAct2004,asreferredtoinsection203oftheEducationAct1989.

TheFinancialStatementshavebeenpreparedinaccordancewithgenerallyacceptedaccountingpracticeinNewZealand.TheycomplywithNew Zealand Equivalents to International Financial Reporting Standards (NZ IFRS)andotherapplicableFinancialReportingStandards,asappropriateforpublicbenefitentities.

NeworrevisedStandardsandInterpretationsthathavebeenapprovedbutarenotyeteffectivehavenotbeenadoptedbytheUniversityandtheGroupforthereportingperiodended31December2010.TheadoptionoftheseStandardsandInterpretationsisnotexpectedtohaveamaterialrecognitionormeasurementimpactontheseFinancialStatements.

Measurement base

TheFinancialStatementshavebeenpreparedonanaccrualsbasisandarebasedonthehistoricalcostconventionasmodifiedbytherevaluationofcertainassetsandliabilitiesasidentifiedinthesummaryofsignificantaccountingpolicies.Theseincludetherevaluationofavailable-for-salefinancialassets,financialassetsandliabilities(includingderivativeinstruments)atfairvaluethroughprofitorlossandcertainclassesofproperty,plantandequipment.

Functional and presentation currency

TheFinancialStatementsarepresentedinNewZealanddollarsandallvaluesareroundedtothenearestthousanddollars,unlessotherwisestated.ThefunctionalcurrencyoftheUniversityanditssubsidiariesisNewZealanddollars.

Changes in accounting policies

Theaccountingpoliciesareconsistentwiththoseadoptedinthepreviousyear,exceptforthefollowing:

Borrowing costsDuringthefinancialyear,theUniversityandtheGroupchangeditsaccountingpolicyforthetreatmentofborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingasset.Inpreviousperiods,theUniversityandtheGrouphadcapitalisedsuchcostsaspartofthecostoftheassetuntilallsubstantialactivitiesnecessarytopreparethequalifyingassetforitsintendedusewerecomplete.

TheUniversityandtheGrouphavenowdecidedtoexpensetheborrowingcosts,ratherthancapitalisethem,inaccordancewiththeamendmenttoNZIAS23BorrowingCosts(revised2007)whichpermitspublicbenefitentitiestodefertheapplicationofNZIAS23(revised2007).

Managementbelievesthatthenewpolicyispreferablebecauseitresultsinamoretransparenttreatmentofborrowingcostsandisconsistentwiththeindustrypracticeofpublicbenefitentities,makingtheUniversityandtheGroup’sFinancialStatementsmorecomparable.

TheimpactofthechangeofaccountingpolicyhasbeenretrospectivelyappliedinaccordancewithNZIAS8AccountingPolicies,ChangesinAccountingEstimatesandErrors.TheeffectofthischangeisdisclosedinNote39.


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

Standards,amendments,andinterpretationsissuedbutnotyeteffectivethathavenotbeenearlyadopted,andarerelevanttotheUniversityandtheGroup,are:

• NZIAS24RelatedPartyDisclosures(Revised2009)replacesNZIAS24RelatedPartyDisclosures(Issued2004)andwillbeappliedforthefirsttimeintheUniversityandtheGroup’s31December2011financialstatements.Therevisedstandard:

i) RemovesthepreviousdisclosureconcessionsappliedbytheUniversityforarms-lengthtransactionsbetweentheUniversityandentitiescontrolledorsignificantlyinfluencedbytheCrown.TheeffectoftherevisedstandardisthatmoreinformationisrequiredtobedisclosedabouttransactionsbetweentheUniversityandentitiescontrolledorsignificantlyinfluencedbytheCrown.

ii) Clarifiesthatrelatedpartytransactionsincludecommitmentswithrelatedparties.

• NZIFRS9FinancialInstrumentswilleventuallyreplaceNZIAS39FinancialInstruments:RecognitionandMeasurement.NZIAS39isbeingreplacedthroughthefollowingthreemainphases:Phase1ClassificationandMeasurement,Phase2ImpairmentMethodology,andPhase3HedgeAccounting.Phase1ontheclassificationandmeasurementoffinancialassetshasbeencompletedandhasbeenpublishedinthenewfinancialinstrumentstandardNZIFRS9.NZIFRS9usesasingleapproachtodeterminewhetherafinancialassetismeasuredatamortisedcostorfairvalue,replacingthemanydifferentrulesinNZIAS39.TheapproachinNZIFRS9isbasedonhowanentitymanagesitsfinancialinstruments(itsbusinessmodel)andthecontractualcashflowcharacteristicsofthefinancialassets.Thenewstandardalsorequiresasingleimpairmentmethodtobeused,replacingthemanydifferentimpairmentmethodsinNZIAS39.Thenewstandardisrequiredtobeadoptedfortheyearended31December2013.TheUniversityandtheGrouphavenotyetassessedtheimpactofthenewstandardandexpectsitwillnotbeearlyadopted.

(b) Basis of consolidation

TheconsolidatedFinancialStatementsincludetheUniversityanditssubsidiaries,associateandjointventureinterests.

Subsidiaries

SubsidiariesareallthoseentitiesoverwhichtheUniversityhasthepowertogovernthefinancialandoperatingpolicies,generallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheUniversity.Theyaredeconsolidatedfromthedatethatcontrolceases.

Inter-companytransactions,balancesandunrealisedgainsontransactionsbetweenconsolidatedentitiesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceoftheimpairmentoftheassettransferred.Investmentsinsubsidiariesarecarriedatcostintheparententityfinancialstatements.

Associates

AssociatesareentitiesoverwhichtheUniversityhassignificantinfluencebutnotcontrol,generallyaccompanyingashareholdingbetween20%and50%ofthevotingrights.Investmentsinmaterialassociatesareaccountedforintheparententityfinancialstatementsusingthecostmethodandintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting,afterinitiallybeingrecognisedatcost.

Joint Ventures

TheUniversityhasaninterestinajointventurewhichisajointly-controlledentity,wherebytheventurershaveacontractualarrangementthatestablishesjointcontrolovertheeconomicactivitiesoftheentity.TheUniversityrecognisesitsinterestinthejointventureusingtheequitymethodofconsolidation.

Undertheequitymethod,theinvestmentinthejointly-controlledentityiscarriedatcostintheparententityfinancialstatements.Intheconsolidatedfinancialstatements,theinvestmentisinitiallyrecognisedatcostandsubsequentlyadjustedforchangesintheUniversity’sshareofnetassetsofthejointventure,lessanyimpairmentinthevalueofinvestment.TheUniversity’sshareoftheresultsofthejointventureisrecognisedintheIncomeStatement.

ThefinancialstatementsofthejointventurearepreparedforthesamereportingperiodastheUniversity.AdjustmentsaremadewherenecessarytobringtheaccountingpoliciesinlinewiththoseoftheUniversity.

(c) Revenue recognition

Revenuecomprisesthefairvalueofthesaleofgoodsandservices,netofGoodsandServicesTax,rebatesanddiscountsandaftereliminatingsaleswithintheGroup.Revenueisrecognisedasfollows:

Governmentgrantsarerecognisedasrevenueonentitlement.


Studenttuitionfeesarerecognisedasrevenueonacoursepercentageofcompletionbasis.Thepercentageofcompletionismeasuredbyreferencetothedaysofthecoursecompletedasaproportionofthetotalcoursedays.

Researchgrantswhichwillprovidereciprocalbenefitstotheresearchfundingproviderarerecognisedbasedonthepercentageofcompletionmethod.Thestageofcompletionismeasuredbyreferencetototalexpenditureincurredtodatecomparedwiththefundingprovided.LiabilitiesarerecognisedintheBalanceSheetasafutureobligationtocompletetheresearchinrespectofthegrantswhichareunearnedatthebalancedate.Researchgrantswhichprovidenoreciprocalbenefitstotheresearchfundingproviderarerecognisedasincomewhenthegrantsarereceived.

Subsidies,donationsandbequestsarerecognisedasincomewhentherighttoreceivethefundorassethasbeenestablished.

Revenuefromthesaleofgoodsisrecognisedwhenthegoodshavebeendeliveredandthesignificantrisksandrewardsofownershiphavebeentransferredtothecustomerandcanbemeasuredreliably.

Revenuefromrenderingaserviceisrecogniseduponthedeliveryoftheservice.

Interestincomeisrecognisedonatime-proportionbasisusingtheeffectiveinterestmethod.

Dividendincomeisrecognisedwhentherighttoreceivepaymenthasbeenestablished.

(d) Property, plant and equipment

Eachclassofproperty,plantandequipmentisvaluedathistoricalcostorfairvalueless,whereapplicable,anyaccumulateddepreciationandimpairmentlosses.

Land and buildings

Crown-ownedlandandbuildingsthatareusedbytheUniversityareincludedaspartoftheUniversity’sproperty,plantandequipment.TheUniversityhassoleandunrestricteduseoftheselandandbuildingsandhasassumedownershipoftheseassetsbymeansofaleasefromtheMinistryofEducationforaperiodof99yearsfrom1November1994.

Followinginitialrecognitionatcost,alllandandbuildings,whetherownedbytheCrownorpurchasedandbuiltoutoftheUniversity’sreservesareshownatfairvalue.Revaluationoflandandbuildingsiscarriedoutatleasteverythreeyearsbyindependentvaluerstoensurethatthecarryingamountoftheseassetsdoesnotdiffermateriallyfromitsfairvalueatthebalancedate.

AnyrevaluationsurplusarisingonrevaluationiscreditedtotheassetrevaluationreserveincludedintheequitysectionoftheBalanceSheet.Decreasesthatoffsetpreviousincreasesofthesameassetclassarechargedagainsttheassetrevaluationreservedirectlyinequity;allotherdecreasesarechargedtotheIncomeStatement.

Library collection

Thelibrarycollectionisvaluedathistoricalcostlessaccumulateddepreciationand,whereapplicable,anyimpairmentlosses.

Work in progress

Workinprogressisvaluedonthebasisofexpenditureincurreduptobalancedateandisnotdepreciated.Financingcostshavenotbeencapitalisedduringtheconstructionofassets.Thetotalcostofaprojectistransferredtotherelevantassetclassoncompletionandthendepreciated.

Depreciation

Allproperty,plantandequipmentotherthanland,worksofartandworkinprogressaredepreciatedusingthestraight-linemethod(exceptformotorvehicles,whichusesthediminishingvaluemethod)toallocatetheircostorrevaluedamountstotheirresidualvaluesovertheirestimatedusefullives,asfollows:

Buildings 20-60years

Librarycollection 5-10years

Plantandequipment 10-20years

Specialtyelectronics 6years

Furnitureandfittings 5years

Leaseholdimprovements 5years

Motorvehicles 5years

Officeequipment 5years

Computersandelectronicequipment 3years


Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,ateachBalanceSheetdate.Anychangesareaccountedforprospectivelyasachangeinaccountingestimate.Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountisgreaterthanitsestimatedrecoverableamount(seeNote(f)).Gainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamount.TheseareincludedintheIncomeStatement.

(e) intangible assets

Computer software

Acquiredcomputersoftwarelicencesarecapitalisedonthebasisofthecostsincurredtoacquireandbringtousethespecificsoftware.Thesecostsareamortisedonastraight-linebasisovertheirestimatedusefullives,beingthreeyears.

Costsassociatedwithmaintainingcomputersoftwarearerecognisedasanexpensewhenincurred.CoststhataredirectlyassociatedwiththedevelopmentofidentifiableanduniquesoftwarecontrolledbytheUniversity,andthatwillprobablygenerateeconomicbenefitsexceedingcostsbeyondoneyear,arerecognisedasintangibleassets.Directcostsincludesoftwaredevelopment,employeecostsandanappropriateportionofrelevantoverheads.Computersoftwaredevelopmentcostsrecognisedasassetsareamortisedonastraight-linebasisovertheirestimatedusefullives,beingthreeyears.

Programme development

Costsincurredondevelopmentofnewacademicprogrammesarecapitalisedtotheextentthatsuchcostsareexpectedtoberecovered.Capitalcostsareamortisedfromthecommencementofaparticularprogrammeonastraight-linebasisovertheperiodoftheirexpectedbenefit,beingthreeyears.

Intellectual property

Intellectualpropertyisvaluedatcostofacquisitionandisamortisedonastraight-linebasisovertheperiodofitsexpectedbenefits,beingfiveyears.

(f) impairment

Financial assets

AteachBalanceSheetdatetheUniversityassesseswhetherthereisanyobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.AnyimpairmentlossesarerecognisedintheIncomeStatement.

Non-financial assets

Non-financialassetsthathaveanindefiniteusefullifeorarenotyetavailableforuse,arenotsubjecttoamortisationandaretestedannuallyforimpairment.Non-financialassetsthathaveafiniteusefullifearesubjecttoamortisationordepreciationandarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).AnyimpairmentlossesarerecognisedintheIncomeStatement.

(g) cash and cash equivalents

Cashandcashequivalentsincludescashonhand,depositsheldatcallwithbanks,othershort-term,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalues,andbankoverdrafts.BankoverdraftsareshownwithinborrowingsincurrentliabilitiesontheBalanceSheet.

(h) short-term investments

Short-termdepositswithfinancialinstitutionsthathavematuritiesofgreaterthanthreemonths,butlessthanoneyearareclassifiedasshort-terminvestmentsandareincludedwithininvestingactivitiesintheStatementofCashFlows.Interestonshort-terminvestmentsisrecognisedonanaccrualsbasisoverthelifeoftheinvestment.

(i) trade and other receivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcost,lessanyprovisionforimpairment.

Collectabilityofreceivablesisreviewedonanongoingbasis.Receivableswhichareknowntobeuncollectablearewrittenoff.AprovisionforimpairmentofreceivablesisestablishedwhenthereisobjectiveevidencethattheUniversitywillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofreceivables.


(j) inventories

Inventoriesavailableforresalearevaluedatthelowerofcostandnetrealisablevalue,withadjustmentforslowmovingandobsoleteinventories.Costisdeterminedonafirst-infirst-outbasis.Allconsumablesarechargeddirectlytoexpenditure.Noinventoriesarepledgedassecurityforliabilitiesatthebalancedate.

(k) investments and other financial assets

TheUniversityclassifiesitsinvestmentsinthefollowingcategories:financialassetsatfairvaluethroughprofitorloss,loansandreceivables,held-to-maturityinvestments,andavailable-for-salefinancialassets.Theclassificationdependsonthepurposeforwhichtheinvestmentswereacquired.TheUniversitydeterminestheclassificationofitsinvestmentsatinitialrecognitionandre-evaluatesthisdesignationateachreportingdate.

Financial assets at fair value through profit or loss

Thiscategoryhastwosubcategories:financialassetsheldfortrading,andthosedesignatedatfairvaluethroughprofitorlossoninitialrecognition.AfinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshorttermorifsodesignatedbytheUniversity.

ThepolicyoftheUniversityistodesignateafinancialassetatfairvaluethroughprofitandlossifthereexiststhepossibilityitwillbesoldintheshorttermandtheassetissubjecttofrequentchangesinfairvalue.Assetsinthiscategoryareclassifiedascurrentassetsiftheyareeitherheldfortradingorareexpectedtoberealisedwithin12monthsoftheBalanceSheetdate.Derivativesthatarenotdesignatedashedgesarecategorisedasfinancialassetsheldfortrading.

Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.TheyarisewhentheUniversityprovidesmoney,goodsorservicesdirectlytoadebtorwithnointentionofsellingthereceivable.Theyareincludedincurrentassets,exceptforthosewithmaturitiesgreaterthan12monthsaftertheBalanceSheetdatewhichareclassifiedasnon-currentassets.LoansandreceivablesareincludedinreceivablesintheBalanceSheet.

Held-to-maturity investments

Held-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitiesthattheUniversityhasthepositiveintentionandabilitytoholdtomaturity.

Available-for-sale financial assets

Available-for-salefinancialassets,comprisingprincipallymarketableequitysecurities,arenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyoftheothercategories.Theyareincludedinnon-currentassetsunlesstheUniversityintendstodisposeoftheinvestmentwithin12monthsoftheBalanceSheetdate.

Purchasesandsalesofinvestmentsarerecognisedontrade-date,thedateonwhichtheUniversitycommitstopurchaseorselltheasset.Allinvestmentsareinitiallyrecognisedatfairvalueplustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitorloss.FinancialassetscarriedatfairvaluethroughprofitorlossareinitiallyrecognisedatfairvalueandtransactioncostsareexpensedintheIncomeStatement.InvestmentsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandtheUniversityhastransferredsubstantiallyallrisksandrewardsofownership.

Available-for-salefinancialassetsandfinancialassetsatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalueoratcostincaseswherethefairvaluecannotbereliablymeasured.Loansandreceivablesandheld-tomaturityinvestmentsarecarriedatamortisedcostusingtheeffectiveinterestmethod.

RealisedandunrealisedgainsandlossesarisingfromchangesinthefairvalueofthefinancialassetsatfairvaluethroughprofitorlosscategoryareincludedintheIncomeStatementintheperiodinwhichtheyarise.Unrealisedgainsandlossesarisingfromchangesinthefairvalueofnon-monetarysecuritiesclassifiedasavailable-for-salearerecognisedinequityintheavailable-for-salerevaluationreserve.

Whensecuritiesclassifiedasavailableforsalearesoldorimpaired,theaccumulatedfairvalueadjustmentsareincludedintheIncomeStatementasgainsandlossesfrominvestmentsecurities.

Thefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(andforunlistedsecurities),theUniversityestablishesfairvaluebyusingappropriatevaluationtechniques.Theseincludereferencetothefairvalueofrecentarm’slengthtransactions,involvingthesameinstrumentsorotherinstrumentsthataresubstantiallythesame,discountedcashflowanalysis,andoptionpricingmodelsrefinedtoreflecttheissuer’sspecificcircumstance.Wherethefairvaluecannotbereliablydeterminedtheinvestmentsaremeasuredatcost.


TheUniversityassessesateachBalanceSheetdatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Inthecaseofequitysecuritiesclassifiedasavailableforsale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredanindicatorthatthesecuritiesareimpaired.Ifanysuchevidenceexistsforavailable-for-salefinancialassets,thecumulativeloss–measuredasthedifferencebetweentheacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss–isremovedfromequityandrecognisedintheIncomeStatement.ImpairmentlossesrecognisedintheIncomeStatementonequityinstrumentsarenotreversedthroughtheIncomeStatement.

(l) Leases

Finance leases

LeaseswheretheUniversityassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases,whetherornottitleiseventuallytransferred.

Financeleasesarecapitalisedatthelowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Thecorrespondingliabilitytothelessor,netoffinancecharges,isincludedintheBalanceSheetasafinanceleaseobligation.

Leasepaymentsareapportionedbetweenfinancechargesandreductionofthefinanceleaseobligationsoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.FinancechargesareincludedintheIncomeStatementasfinancecosts.

Capitalisedleasedassetsaredepreciatedovertheestimatedusefullifeoftheassetortheleaseterm,whicheverisshorter.

Foraleaseoflandandbuildingsinwhichtheminimumleasepaymentscannotbeallocatedreliablybetweenthelandandthebuildingelementsinproportiontotherelativefairvaluesoftheleaseholdinterestsinthelandelementandbuildingselementoftheleaseattheinceptionofthelease,theentireleaseisclassifiedasafinancelease,unlessitisclearthatbothelementsareoperatingleases,inwhichcasetheentireleaseisclassifiedasanoperatinglease.

Operating leases

Leaseswherethelessorretainssubstantiallyalltherisksandrewardsofownershipareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtotheIncomeStatementonastraight-linebasisovertheperiodofthelease.

(m) Foreign currency translation

TransactionsinforeigncurrenciesaretranslatedtoNewZealanddollarsattheforeignexchangeraterulingatthedateofthetransaction.MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesattheBalanceSheetdatearetranslatedtoNewZealanddollarsattheforeignexchangeraterulingatthatdate.AllforeignexchangedifferencesarisingontranslationarerecognisedintheIncomeStatement.

(n) Derivative financial instruments and hedge accounting

TheUniversityusesderivativefinancialinstruments,suchasinterestrateswapsandforwardforeignexchangecontractstohedgeitsinterestraterisksandforeigncurrencyrisksrespectively.Inaccordancewithitstreasurypolicy,theUniversitydoesnotholdorissuederivativefinancialinstrumentsfortradingpurposes.However,derivativesthatdonotqualifyforhedgeaccountingareaccountedforastradinginstruments.Derivativefinancialinstrumentsareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandaresubsequentlyremeasuredattheirfairvalue.Thefairvalueofinterestrateswapsandforwardforeignexchangecontractsaredeterminedbyreferencetomarketvaluesforsimilarinstruments.

Forthepurposesofhedgeaccounting,alltheUniversity’shedginginstrumentsaredesignatedascashflowhedges.Acashflowhedgeisdefinedasthatwhichmitigatestheexposuretovariabilityincashflowsattributabletoaparticularriskassociatedwitharecognisedassetorliability,firmcommitment,orhighlyprobableforecasttransaction,whichcouldaffectprofitorloss.Acashflowhedgeprotectsagainsttheriskcausedbyvariableprices,costs,ratesorterms,whichcauseuncertaintyinthefuture.

TheUniversitydocuments,attheinceptionofthetransaction,therelationshipbetweenhedginginstrumentsandhedgeditems,aswellasitsriskmanagementobjectiveandstrategyforundertakingvarioushedgetransactions.TheUniversityalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherthederivativesthatareusedinhedgingtransactionsarehighlyeffectiveinoffsettingchangesinfairvalueorcashflowsofhedgeditems.


TheportionofthegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivehedgeisrecogniseddirectlyinOtherComprehensiveIncomewithintheStatementofComprehensiveIncomeandtheineffectiveportionisrecognisedimmediatelyintheIncomeStatement.

ThegainorlossaccumulatedinequityisrecognisedintheIncomeStatementwhenthehedgedcashflowsaresettled.

ChangesinthefairvalueofanyderivativeinstrumentthatdonotqualifyforhedgeaccountingarerecognisedimmediatelyintheIncomeStatement.

(o) Goods and services tax (Gst)

AucklandUniversityofTechnologyisaregistered‘person’asdefinedbytheGoodsandServicesAct1985.TheFinancialStatementshavebeenpreparedonaGSTexclusivebasiswiththeexceptionofaccountsreceivableandaccountspayable,whicharestatedGSTinclusive.WhenGSTisnotrecoverableoninputtaxthenitisrecognisedaspartoftherelatedassetorexpense.

ThenetamountofGSTrecoverablefrom,orpayableto,theInlandRevenueDepartmentatbalancedateisincludedaspartoftheaccountsreceivableoraccountspayableintheBalanceSheet.

ThenetGSTpaidto,orreceivedfrom,theInlandRevenueDepartment,includingtheGSTrelatingtoinvestingandfinancingactivities,isclassifiedasanoperatingcashflowintheStatementofCashFlows.

CommitmentsandcontingenciesaredisclosedexclusiveofGST.

(p) taxation

TheUniversityanditssubsidiariesareexemptfromthepaymentofincometaxastheyaretreatedbytheInlandRevenueDepartmentascharitableorganisationsforthepurposesoftheIncomeTaxAct.Accordingly,noprovisionforincometaxhasbeenmade.

(q) Budget figures

ThebudgetfiguresarethoseapprovedbytheAucklandUniversityofTechnologyCouncilbeforethebeginningofeachfinancialyear.TheyhavebeenpreparedinaccordancewithgenerallyacceptedaccountingpracticeandareconsistentwiththeaccountingpoliciesadoptedbytheAucklandUniversityofTechnologyCouncilforthepreparationoftheFinancialStatements.

(r) creditors and other payables

Creditorsandotherpayablesareinitiallymeasuredatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

(s) employee entitlements

Employeeentitlementstosalariesandwages,annualleave,sickleave,longserviceleave,retirementleaveandothersimilarbenefitsarerecognisedintheIncomeStatementwhentheyaccruetoemployees.Employeeentitlementstobesettledwithintwelvemonthsarereportedattheamountexpectedtobepaid.Theliabilityforlong-termemployeeentitlementsisreportedasthepresentvalueoftheestimatedfuturecashoutflows.

Annual leave

Liabilitiesforannualleavearemeasuredattheamountofunusedentitlementaccumulatedatbalancedateatrelevantcurrentratesofpay.

Sick leave

LiabilitiesforsickleavearemeasuredattheamountsofunusedentitlementaccumulatedatbalancedatethattheUniversityanticipatesemployeeswilluseinfutureperiods.

Long service leave and retirement leave

Liabilityforlongserviceleaveandretirementleavearecalculatedonanactuarialbasisandarebasedon:likelyfutureentitlementsaccruingtostaff,basedonyearsofservice,yearstoentitlement,thelikelihoodthatstaffwillreachthepointofentitlementandcontractualentitlementsinformation;andthepresentvalueoftheestimatedfuturecashflows.Adiscountrateof5.82%andaninflationfactorof3.00%wereused.ThediscountrateisbasedontheweightedaverageofGovernmentinterestratesforbondwithtermstomaturitysimilartothoseoftherelevantliabilities.Theinflationfactorisbasedontheexpectedlong-termincreaseinremunerationforemployees.


Superannuation Schemes

Defined contribution schemesObligationsforcontributionstoKiwiSaverandtwooftheNationalProvidentFund(NPF)Superannuationschemes,namelytheLumpSumNationalschemeandPensionNationalscheme,areaccountedforasdefinedcontributionschemesandarerecognisedasanexpenseintheIncomeStatementasincurred.

Defined benefit schemesTheUniversitybelongstotheGovernmentSuperannuationFund(GSF)scheme,whichisadefinedbenefitschememanagedbytheGovernmentSuperannuationFundAuthority.TheUniversityhasnounderwritingresponsibilities,asanyshortfallismetbytheGovernment.Assuch,theGSFschemeisaccountedforasadefinedcontributionscheme.

(t) interest-bearing borrowings

Interest-bearingborrowingsareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationreceivednetoftransactioncostsassociatedwiththeborrowing.

Subsequenttoinitialrecognition,interest-bearingborrowingsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.Amortisedcostiscalculatedbytakingintoaccountanytransactioncosts,andanydiscountorpremiumonsettlement.

GainsorlossesarerecognisedintheIncomeStatementwhentheliabilitiesarederecognisedaswellasthroughtheamortisationprocess.

(u) Borrowing costs

TheUniversityandtheGrouphaveelectedtodefertheadoptionoftherevisedNZIAS23BorrowingCosts(Revised2007)inaccordancewiththetransitionalprovisionsofNZIAS23thatareapplicabletopublicbenefitentities.

Consequently,allborrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

(v) Provisions

ProvisionsarerecognisedwhentheUniversityhasapresentlegalorconstructiveobligationasaresultofpastevents,whenitismorelikelythannotthatanoutflowofresourceswillberequiredtosettletheobligation,andwhentheamounthasbeenreliablyestimated.Provisionsarenotrecognisedforfutureoperatinglosses.

Wherethereareanumberofsimilarobligations,thelikelihoodthatanoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsmaybesmall.

Provisionsaremeasuredatthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligationusingadiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.TheincreaseintheprovisionduetopassageoftimeisrecognisedintheIncomeStatement.

(w) equity

Equityismeasuredasthedifferencebetweentotalassetsandtotalliabilities.Equityisdisaggregatedandclassifiedintoanumberofcomponents.Thecomponentsofequityare:

General funds

Generalfundscomprise“GeneralEquity”and“SuspensoryLoansfromtheCrown”withequityconversionfeatures.

Revaluation reserves

Revaluationreservescomprise“AssetRevaluationReserve”-whichrelatestotherevaluationoflandandbuildingstofairvalue;“Available-for-saleRevaluationReserve”–whichrelatestotherevaluationofmarketableequitysecuritiestofairvalue;and“CashFlowHedgeReserve”–whichrelatestothegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivecashflowhedgeandthechangeinthefairvalueofthehedginginstrumentthroughOtherComprehensiveIncome.


(x) critical accounting estimates and assumptions

InpreparingtheseFinancialStatements,theUniversityandtheGrouphavemadeestimatesandassumptionsconcerningthefuture.Theseestimatesandassumptionsmaydifferfromthesubsequentactualresults.Estimatesandassumptionsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsorfutureeventsthatarebelievedtobereasonableunderthecircumstances.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

Revaluation of land and buildings

Note16providesinformationabouttheestimatesandassumptionsexercisedinthemeasurementofrevaluedlandandbuildings.TheUniversityreliesontheservicesofindependentvaluerstoassessthecarryingvaluesoflandandbuildings.

Long service leave and retirement leave

Note20providesananalysisoftheexposureinrelationtoestimatesanduncertaintiessurroundinglongserviceleaveandretirementleaveliabilities.Assumptionsmadeincludediscountrates,salaryinflationandthenumberofstaffthatwillreachthepointofentitlement.

Reinstatement provision

Note21representstheUniversity’sestimatedliabilitytoreinstateleasedbuildingstotheiroriginalstateattheexpiryoftheleaseterm.

Depreciation and amortisation

Ateachbalancesheetdate,theUniversityreviewstheusefullivesandresidualvaluesofitsproperty,plantandequipment,andintangibleassets.Assessingtheappropriatenessofusefullifeandresidualvalueestimatesofproperty,plantandequipment,andintangibleassetsrequirestheUniversitytoconsideranumberoffactorssuchasthephysicalconditionoftheasset,expectedperiodofuseoftheassetbytheUniversity,andexpecteddisposalproceedsfromthefuturesaleoftheasset.Anincorrectestimateoftheusefullifeorresidualvaluewillimpactonthedepreciableoramortisableamountofanasset,thereforeimpactingonthedepreciationoramortisationexpenserecognisedintheIncomeStatements,andcarryingamountoftheassetintheBalanceSheet.Thecarryingamountsofproperty,plantandequipmentaredisclosedinNote16andintangibleassetsinNote17.

Changes to accounting estimates on depreciation charges

TheUniversityandtheGrouphaverevisedtheestimatedusefullivesofcertainLibrarycollectionswitheffectfrom1January2010.Basedontheinformationgainedfromoperations,managementbelievesthatcertainLibrarycollections,suchaselectronicresourcesandprintserials,willonlyhaveestimatedusefullivesoffiveyearsfordepreciationpurposes.Theoriginalestimatedusefullivesweretenyears.

Therevisionswereaccountedforprospectivelyasachangeinaccountingestimatesand,asaresult,thedepreciationchargesforthefinancialyearended31December2010havebeenincreasedby$1.94million.

(y) critical judgements in applying accounting policies

TheUniversityhasmadethefollowingcriticaljudgementsinapplyingaccountingpoliciesfortheyearended31December2010:

Crown-owned land and buildings

PropertyinthelegalnameoftheCrownthatisoccupiedbytheUniversityisrecognisedasanassetintheBalanceSheet.TheUniversityconsidersithasassumedallthenormalrisksandrewardsofownershipofthispropertydespitelegalownershipnotbeingtransferred.AccordinglyitwouldbemisleadingtoexcludetheseassetsfromtheFinancialStatements.TheUniversityhassecuredtheuseofthepropertybymeansofaleasefromtheMinistryofEducationforaperiodof99yearsfrom1November1994.

Suspensory loans with equity conversion features

TheUniversityreceivedvarioussuspensoryloansfromtheCrownin2008,wherebytheloansconverttoequitywhentheconversionconditionsoftheloanagreementaresatisfied.AstheUniversityiscommittedtomeetingtheequityconversionconditions,itconsidersthesuspensoryloansareinsubstanceequitycontributionsfromtheCrownandthereforerecognisestheamountsreceiveddirectlyintheStatementofChangesinEquity.FurtherinformationaboutthesuspensoryloansisdisclosedinNote37.

Research Leave

Academicstaffareentitledtoresearchleaveincertaincircumstances.Thesubstanceofthisleaveisthatitisleavefromteachingdutiestoundertakeresearchactivitywithstaffcontinuingtoearntheirsalaryandotheremployeeentitlements.TheUniversityisoftheviewthatresearchleaveisnotthetypeofleavecontemplatedinNZIAS19EmployeeBenefits.Accordingly,aliabilityhasnotbeenrecognisedforsuchleave.


University consolidated 2010 2009 2010 2009 Actual Actual Actual Actual $000s $000s $000s $000s

StudentAchievementComponent(SAC) 103,725 96,994 103,725 96,994TertiaryEducationOrganisationalCapability(TEOC) 12,618 11,466 12,618 11,466Performance-BasedResearchFunding(PBRF)–Note(A) 7,145 6,774 7,145 6,774Tripartitefunding–salaries 6,963 7,331 6,963 7,331PrioritiesforFocus 1,581 1,962 1,581 1,962EncouragingandSupportingInnovation(ESI) 1,335 1,431 1,335 1,431MangereRefugeeCentre 1,530 1,456 1,530 1,456Tertiarystudentswithdisabilities 432 412 432 412MäoriandPacificPeoples 657 618 657 618TOPS/ETSA 761 990 761 990Earlychildhoodeducation–Note(B) 430 428 430 428OtherGovernmentfunding(excl.researchcontracts) 1,532 2,047 1,532 2,047

totAL GoVeRnMent oPeRAtionAL FUnDinG 138,709 131,909 138,709 131,909

Therearenounfulfilledconditionsnorothercontingenciesattachedtogovernmentgrantsrecognisedasincome.

note 2: GoVeRnMent oPeRAtionAL FUnDinG

University consolidated 2010 2009 2010 2009 Actual Actual Actual Actualnote (A): PBRF income $000s $000s $000s $000s

ProvisionalPBRFfundingreceived 7,386 6,662 7,386 6,662PrioryearPBRFfinalwash-up (241) 112 (241) 112

total PBRF income 7,145 6,774 7,145 6,774

incoMeEarlychildhoodeducationbulkfunding 419 409 419 409Supportgrantforprovisionally-registeredteachers 11 19 11 19

total early childhood education funding received 430 428 430 428

Otherincome* 190 217 190 217

total income 620 645 620 645

eXPenDitUReOperatingexpenses (694) (652) (694) (652)Supportgrantexpenses (9) (23) (9) (23)

total expenditure (703) (675) (703) (675)

net DeFicit (83) (30) (83) (30)

Valueofsupportgrantsreceived 11 19 11 19Amountspentonsupportingprovisionally- 9 23 9 23registeredteachers

Supportgrantswereappliedto:Teachingresourcesandequipment 1 7 1 7Training,coachingandsupport 8 16 8 16

totAL 9 23 9 23

Numberofsupportgrantsreceived 37 50 37 50

*Otherincomerepresentsearlychildhoodeducationfeesreceivedfromparents,whichhavebeenreflectedaspartofthetradingincomeinNote5.

note (B): early childhood education



Domesticfees 67,758 57,494 67,758 57,494

Internationalfees 45,091 38,675 45,091 38,675

totAL stUDent tUition Fees 112,849 96,169 112,849 96,169


Researchgrantsreceived 11,139 10,567 11,194 10,572

Researchgrantscarriedforward (1,924) (2,201) (1,924) (2,201)

totAL ReseARcH GRAnts 9,215 8,366 9,270 8,371

Researchgrantscarriedforwardrepresenttheincompleteportionofresearchgrantsreceivedasatyearend.

note 3: stUDent tUition Fees

note 4: ReseARcH GRAnts


Tradingincome 12,835 12,375 12,835 12,375

Accommodationincome 4,376 4,284 4,376 4,284

Interestincome 373 6 388 31

Incomefromavailable-for-salefinancialassets 4 55 4 55

Incomefrominvestmentinassociate 18 33 – –

Donationreceived 29 72 29 72

Gainondisposalofproperty,plant&equipment – 2 – 2

Gainonderivativefinancialinstruments 14 – 14 –

Otheroperatingincome 8,969 6,851 9,315 7,524

totAL otHeR incoMe 26,618 23,678 26,961 24,343

note 5: otHeR incoMe



Consumables/facultycosts 23,264 18,800 23,264 18,800

Occupancy/propertycosts 9,851 8,790 9,851 8,790

Operatingleasecosts–buildings 8,087 8,394 8,087 8,394

Operatingleasecosts–equipment 942 1,154 942 1,154

Administrationexpenses 7,859 7,558 7,859 7,563

Feestoprincipalauditor:

Financialstatementsaudit(NoteA) 149 144 158 149

Performance-BasedResearchFundaudit 8 8 8 8

Provisionforbaddebts:

Changeinprovisionfordoubtfuldebts 560 113 560 113

Baddebtswrittenoff 445 229 445 229

Councilfees(Note28) 110 110 110 110

Lossondisposalofproperty,plantandequipment 17 – 17 –

Lossonforeigncurrencytranslation 54 107 54 107

Lossonderivativefinancialinstruments – 15 – 15

Otheroperatingcosts 13,560 13,360 13,795 14,018

totAL sUPPLies AnD otHeR costs 64,906 58,782 65,150 59,450

Note(A)–Includesauditfeesof$9,040(2009:$7,950)forAucklandUniversityofTechnologyFoundationpaidonbehalfbyAucklandUniversityofTechnology.

note 7: sUPPLies AnD otHeR costs


Academic:

Salariesandwages 95,177 90,110 95,177 90,110

Definedcontributionplanemployercontributions 466 373 466 373

Employeeentitlements 796 1,257 796 1,257

Otherstaff-relatedcosts 4,927 6,511 4,927 6,511

101,366 98,251 101,366 98,251

Administration:

Salariesandwages 62,317 58,100 62,317 58,100

Definedcontributionplanemployercontributions 305 239 305 239

Employeeentitlements 459 1,032 459 1,032

Otherstaff-relatedcosts 3,821 3,750 3,821 3,750

66,902 63,121 66,902 63,121

totAL PeRsonneL costs 168,268 161,372 168,268 161,372

EmployercontributionstodefinedcontributionplansincludecontributionstoKiwiSaver,theNationalProvidentFundSuperannuationschemesandtheGovernmentSuperannuationFundscheme.

note 6: PeRsonneL costs



Depreciation(Note16) 26,913 24,626 26,913 24,626

Amortisation(Note17) 2,568 1,522 2,568 1,522

Impairment(Note16&17) 2,841 1,916 2,841 1,916

totAL DePReciAtion, AMoRtisAtion 32,322 28,064 32,322 28,064AnD iMPAiRMent

note 8: DePReciAtion, AMoRtisAtion AnD iMPAiRMent


Interestonborrowings 1,072 1,068 1,072 1,068

Financechargesonfinanceleases 2,476 2,788 2,476 2,788

totAL FinAnce costs 3,548 3,856 3,548 3,856

note 9: FinAnce costs


Cash-at-bankandinhand 2,995 804 3,951 938

Short-termbankdeposits 711 13 711 932

totAL cAsH AnD cAsH eQUiVALents 3,706 817 4,662 1,870As PeR tHe stAteMent oF cAsH FLows

Short-termbankdepositsaremadeforvaryingperiodsoftime,fromonedaytothreemonthsdependingonimmediatecashrequirements,andearninterestattherespectiveshort-termdepositrates.Thecarryingvalueofshort-termdepositswithmaturitydatesofthreemonthsorlessapproximatestheirfairvalue.

Thetotalvalueofcashandcashequivalentsthatcanonlybeusedforaspecifiedpurposeasoutlinedintherelevanttrustdeedsis$956,000(2009:$827,000).

Theweightedaverageeffectiveinterestrateforcashandcashequivalentswas3.20%(2009:3.08%).

note 10: cAsH AnD cAsH eQUiVALents



trade debtors:

Openingprovisions 525 287 525 287

Additionalprovisionsmadeduringtheyear 311 361 311 361

Releaseofprovisionsduringtheyear – (82) – (82)

Amountofprovisionsutilisedduringtheyear (235) (41) (235) (41)

closing provisions for impairment of trade debtors 601 525 601 525

student debtors:

Openingprovisions 261 386 261 386

Additionalprovisionsmadeduringtheyear 694 187 694 187

Releaseofprovisionsduringtheyear – (124) – (124)

Amountofprovisionsutilisedduringtheyear (210) (188) (210) (188)

closing provisions for impairment of student debtors 745 261 745 261


Tradedebtors 3,275 2,319 3,351 2,319

Lessprovisionforimpairmentoftradedebtors (601) (525) (601) (525)

2,674 1,794 2,750 1,794

Studentdebtors 19,957 3,139 19,957 3,139

Lessprovisionforimpairmentofstudentdebtors (745) (261) (745) (261)

19,212 2,878 19,212 2,878

Relatedparties(Note27) 11 416 6 416

Accruedrevenue 1,141 908 1,141 925

TertiaryEducationCommission – 1,122 – 1,122

Otherdebtors 436 435 441 449

totAL tRADe AnD otHeR ReceiVABLes 23,474 7,553 23,550 7,584

Tradedebtorsandstudentdebtorsarenon-interestbearingandreceiptisnormallyon30-dayterms,thereforethecarryingvalueoftradeandotherreceivablesapproximatestheirfairvalue.

Movementsintheprovisionforimpairmentoftradedebtorsandstudentdebtorsareasfollows:

note 11: tRADe AnD otHeR ReceiVABLes


University consolidated

Gross Impairment Net Gross Impairment Net $000s $000s $000s $000s $000s $000s

trade debtors:

2010 –Under30days 2,052 – 2,052 2,128 – 2,128

31–60days 408 – 408 408 – 408

61–90days 257 (43) 214 257 (43) 214

Over90days 558 (558) – 558 (558) –

total trade debtors 3,275 (601) 2,674 3,351 (601) 2,750

2009 –Under30days 1,223 – 1,223 1,223 – 1,223

31–60days 583 (176) 407 583 (176) 407

61–90days 268 (140) 128 268 (140) 128

Over90days 245 (209) 36 245 (209) 36

total trade debtors 2,319 (525) 1,794 2,319 (525) 1,794

student debtors:

2010 –Under30days 18,419 – 18,419 18,419 – 18,419

31–60days 102 – 102 102 – 102

61–90days 117 – 117 117 – 117

Over90days 1,319 (745) 574 1,319 (745) 574

total student debtors 19,957 (745) 19,212 19,957 (745) 19,212

2009 –Under30days 1,718 – 1,718 1,718 – 1,718

31–60days 225 – 225 225 – 225

61–90days 44 – 44 44 – 44

Over90days 1,152 (261) 891 1,152 (261) 891

total student debtors 3,139 (261) 2,878 3,139 (261) 2,878

note 11: tRADe AnD otHeR ReceiVABLes (continued)

Theageingprofileoftradedebtorsandstudentdebtorsatthereportingdateisasfollows:


name of entity country of nature of ownership interest incorporation business 2010 2009

AucklandUniversityof NewZealand Promoteacademic 100% 100%TechnologyFoundation excellenceatAuckland UniversityofTechnology bycharitablemeans.

AUTEnterprisesLimited NewZealand Commercialisationof 100% 100% researchandprovision ofconsultingservices.

University

2010 2009 Actual Actual $000s $000s

investment in subsidiaries:

AucklandUniversityofTechnologyFoundation – –

AUTEnterprisesLimited 100 100

totAL inVestMent in sUBsiDiARies 100 100

note 13: inVestMent in sUBsiDiARies


Listed securities (at fair value):

IndependentNews&MediaPlc 4 8 4 8

4 8 4 8

Unlisted securities (at cost, less impairment):

NewZealandVice-Chancellors’Committee 100 100 100 100

PolytechnicsInternationalNewZealandLimited 33 33 33 33

NewZealandTertiaryEducationConsortiumLimited 20 20 20 20

153 153 153 153

totAL AVAiLABLe-FoR-sALe FinAnciAL Assets 157 161 157 161

Listed securitiesThefairvaluesoflistedsecuritiesaredeterminedbyreferencetopublishedcurrentbidpricequotationsinanactivemarket.

Unlisted securitiesUnlistedsecuritiesarecarriedatcostlessanyimpairment,asthefairvalueofunlistedsecuritiescannotbereliablydeterminedusingastandardisedvaluationtechniqueaswellastherebeingnoactivemarketforsuchsecurities.

note 12: AVAiLABLe-FoR-sALe FinAnciAL Assets


name of entity country of nature of ownership interest incorporation business 2010 2009

LCoNewZealandLimited NewZealand Provideslibrary 20% 20% solutionstomembers oftheConsortium.

note 14: inVestMent in AssociAte

InvestmentsinassociateisaccountedforintheFinancialStatementsusingtheequitymethodofaccounting.Informationrelatingtotheassociateissetoutbelow:

Lco new ZeALAnD LiMiteDLCoNewZealandLimitedisanunlistedcompanywhichhasthesamereportingdateasAucklandUniversityofTechnology.Thereisnopublishedpricequotationtodeterminethefairvalueofthisinvestment.

TheinvestmentintheassociateiscarriedatcostinAucklandUniversityofTechnology’sBalanceSheet.

University


investment in associate:

LCoNewZealandLimited 417 417

totAL inVestMent in AssociAte 417 417

Therewerenoimpairmentlossesrelatingtotheinvestmentintheassociateandnocapitalcommitmentsnorothercommitmentsrelatingtotheassociate.

AucklandUniversityofTechnology’sshareoftheresultoftheLCoNewZealandLimitedisasfollows:

consolidated 2010 2009 Actual Actual $000s $000s

share of associate’s balance sheet:

Assets 586 741

Liabilities (51) (233)

net assets 535 508

share of associate’s revenue and profit:

Revenue 289 283

Netsurplus 45 21

Movement in carrying amount of investment in associate:

Balanceatthebeginningoftheyear 508 520

Shareofassociate’snetsurplus 45 21

Dividendreceived (18) (33)

carrying amount at the end of the year 535 508


note 15: inVestMent in JointLy-contRoLLeD entity

AucklandUniversityofTechnologyhasa50%interestinAUT/MillenniumOwnershipTrust,ajointly-controlledentityestablishedbyAucklandUniversityofTechnologyandTheNorthShoreBaysCommunityFitnessCentreTrust,topromotecommunityfitnessandwell-beingandtosupportelitesport.

AUT/MillenniumOwnershipTrusthasthesamereportingdateasAucklandUniversityofTechnology.

Theinvestmentinthejointly-controlledentityiscarriedatcostinAucklandUniversityofTechnology’sBalanceSheet. University 2010 2009 Actual Actual $000s $000s

investment in jointly-controlled entity:

AUT/MillenniumOwnershipTrust 18,300 10,800

totAL inVestMent in JointLy-contRoLLeD entity 18,300 10,800

consolidated 2010 2009 Actual Actual $000s $000s

share of jointly-controlled entity’s balance sheet:

Assets 20,169 14,285

Liabilities (91) (244)

net assets 20,078 14,041

share of jointly-controlled entity’s revenue and profit:

Revenue 821 32

Netsurplus/(deficit) 2,266 (145)

Movement in carrying amount of investment in jointly-controlled entity:

Balanceatthebeginningoftheyear 10,655 –

Capitalcontribution–cash 7,500 7,500

Non-cashcapitalcontribution–land – 3,300

Shareofjointly-controlledentity’snetsurplus/(deficit) 2,266 (145)

carrying amount at the end of the year 20,421 10,655


note 16: PRoPeRty, PLAnt AnD eQUiPMent

Revaluation of land and buildingsIn2010,afullrevaluationoflandandbuildingshasbeencompletedasrequiredeverythreeyearsbyAUTAccountingPolicy(Note1(d)).TherevaluationoflandandbuildingswasperformedbySeagarsandPartners,RegisteredValuers,at31December2010toafairvalueof$379,261,000usingthedepreciatedreplacementcostmethod.Detailsoftherevaluationmovementsareasfollows:

non-cash transactionsDuringtheyear,theUniversityacquired$5.1millionofcomputersandelectronicequipmentunderafinancelease(2009:$3.2million).

NetBook Revaluation Accumulated Net NetBook Value(before) Increment/ Depreciation Revaluation Value(after Revaluation (decrement) Eliminated Movements Revaluation) $000s $000s $000s $000s $000s

UniVeRsity/consoLiDAteD

AUT-ownedland 25,736 (6,438) – (6,438) 19,298

AUT-ownedland 29,190 (1,168) – (1,168) 28,022(ManukauCampus)

54,926 (7,606) – (7,606) 47,320

AUT-ownedbuildings 220,348 (15,364) (21,783) 6,419 226,767

AUT-ownedbuildings 17,772 (1,443) (683) (760) 17,012(ManukauCampus)

238,120 (16,807) (22,466) 5,659 243,779

Crown-ownedland 34,925 4,277 – 4,277 39,202

Crown-ownedbuildings 51,048 (6,192) (4,104) (2,088) 48,960

totAL 379,019 (26,328) (26,570) 242 379,261


no

te

16:

PR

oP

eRt

y, P

LAn

t A

nD

eQ

UiP

Men

t (c

onti

nued

)

c

ost/

Rev

alua

tion

A

ccum

ulat

ed D

epre

ciat

ion

and

impa

irm

ent L

osse

s n

et B

ook

Valu

e20

10 –

Uni

vers

ity/

con

solid

ated

Balance

Additions/

Revaluation

Disposals

Balance

Balance

Depreciation

Disposals/

Impairment

Balance

Balance

Balance

at1Jan

(reclass-

increm

ent/

at31Dec

at1Jan

eliminatedon

losses

at31Dec

at1Jan

at31Dec

2010

ification)(decrement)

20

10

2010

revaluation

20

10

2010

20

10

$0

00s

$000

s$0

00s

$00

0s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

AU

t-ow

ned

asse

ts:

Land

25,736

–

(6,438

)–

19,298

–

––

––

25,736

19

,298

Land–ManukauCam

pus

29,190

–

(1,168

)–

28,022

–

––

––

29,190

28

,022

Buildings

237,55

84,61

0(15,36

4)

(37)

226,76

714

,861

6,92

2(21,78

3)

––

222,69

722

6,76

7Buildings–ManukauCam

pus

6,80

511

,650

(1,443

)–

17,012

18

050

3(683

)–

–6,62

517

,012

Librarycollection

44,073

4,79

9–

–48

,872

22

,545

5,66

0–

–28

,205

21

,528

20

,667

Com

putersandelectronicequipm

ent

15,234

2,53

9–

(1,072

)16

,701

12

,389

1,86

5(1,007

)8

13,255

2,84

53,44

6Furnitureandfittings

12,533

1,08

2–

(53)

13,562

10

,393

1,04

4(49)

511

,393

2,14

02,16

9Leaseholdimprovem

ents

11,592

1,62

7–

–13

,219

10

,458

87

9–

–11

,337

1,13

41,88

2Motorvehicles

604

41

––

645

335

61

––

396

269

249

Officeequipment

4,79

610

5–

(7)

4,89

44,27

428

3(8)

12

4,56

152

233

3Plantandequipment

17,032

4,97

8–

(577

)21

,433

10

,204

1,27

1(567

)51

411

,422

6

,828

10

,011

Specialtyelectronics

1,83

5–

–(16)

1,81

91,05

930

7(17)

–1,34

977

647

0Worksofart

309

––

–30

9–

––

––

309

309

WIP–buildings

4,59

35,68

0–

–10

,273

81

6–

(816

)1,50

71,50

73,77

78,76

6WIP–ManukauCam

pusbuildings

9,84

9(9,596

)–

–25

3–

––

––

9,84

925

3WIP–others

2,57

6(1,901

)–

–67

5–

––

––

2,57

667

5

totA

L A

Ut-

ow

neD

Ass

ets

424,31

525

,614

(24,41

3)

(1,762

)42

3,75

487

,514

18

,795

(24,93

0)

2,04

683

,425

33

6,80

134

0,32

9

cro

wn-

owne

d la

nd a

nd b

uild

ings

:Land

34,925

–

4,27

7–

39,202

–

––

––

34,925

39

,202

Buildings

55,152

–

(6,192

)–

48,960

2,73

61,36

8(4,104

)–

–52

,416

48

,960

totA

L cR

ow

n-o

wn

eD L

An

D &

BU

iLD

inG

s90

,077

–

(1,915

)–

88,162

2,73

61,36

8(4,104

)–

–87

,341

88

,162

Ass

ets

unde

r fi

nanc

e le

ases

:Com


ent

18,456

5,10

4–

(3,160

)20

,400

12

,238

4,74

5(3,160

)–

13,823

6,21

86,57

7Buildings

43,242

–

––

43,242

11

,780

2,00

5–

–13

,785

31

,462

29

,457

totA

L A

sset

s U

nD

eR F

inA

nc

e Le

Ase

s

61,698

5,10

4–

(3,160

)63

,642

24

,018

6,75

0(3,160

)–

27,608

37

,680

36

,034

totA

L P

Ro

PeR

ty, P

LAn

t &

eQ

UiP

Men

t57

6,09

030

,718

(26,32

8)

(4,922

)57

5,55

811

4,26

826

,913

(32,19

4)

2,04

611

1,03

346

1,82

246

4,52

5


no

te

16:

PR

oP

eRt

y, P

LAn

t A

nD

eQ

UiP

Men

t (c

onti

nued

)

c

ost/

Rev

alua

tion

A

ccum

ulat

ed D

epre

ciat

ion

and

impa

irm

ent L

osse

s n

et B

ook

Valu

e20

09 –

Uni

vers

ity/

con

solid

ated

Balance

Additions/

Revaluation

Disposals

Balance

Balance

Depreciation

Disposals/

Impairment

Balance

Balance

Balance

at1Jan

(reclass-

increm

ent/

at31Dec

at1Jan

eliminatedon

losses

at31Dec

at1Jan

at31Dec

2009

ification)(decrement)

20

09

2009

revaluation

20

09

2009

20

09

$0

00s

$000

s$0

00s

$00

0s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

AU

t-ow

ned

asse

ts:

Land

26,050

2,97

0–

(3,284

)25

,736

–

–

–

–

–

26,050

25

,736

Land–ManukauCam

pus

29,190

–

–

–

29,190

–

–

–

–

–

29,190

29

,190

Buildings

212,67

324

,885

–

–

237,55

86,80

28,04

8–

11

14,861

20

5,87

122

2,69

7Buildings–ManukauCam

pus

–6,80

5–

–

6,80

5–

180

–

–

180

–6,62

5Librarycollection

39,244

4,82

9–

–

44,073

19

,168

3,37

7–

–

22,545

20

,076

21

,528

Com


ent

12,416

2,92

5–

(107

)15

,234

11

,246

1,21

8(81)

612

,389

1,17

02,84

5Furnitureandfittings

11,517

1,08

5–

(69)

12,533

9,19

61,21

7(31)

11

10,393

2,32

12,14

0Leaseholdimprovem

ents

11,327

26

5–

–

11,592

10

,011

44

7–

–

10,458

1,31

61,13

4Motorvehicles

587

17

–

–

604

270

65

–

–

335

317

269

Officeequipment

4,69

212

2–

(18)

4,79

63,91

936

8(16)

34,27

477

352

2Plantandequipment

14,634

2,58

8–

(190

)17

,032

9,35

41,02

6(178

)2

10,204

5,28

06,82

8Specialtyelectronics

1,41

442

1–

–

1,83

576

929

0–

–

1,05

964

577

6Worksofart

309

––

–

309

––

–

–

–

309

309

WIP–buildings

8,46

8(3,875

)–

–

4,59

3–

–

–

816

816

8,46

83,77

7WIP–ManukauCam

pusbuildings

13,326

(3,477

)–

–

9,84

9–

–

–

–

–

13,326

9,84

9WIP–others

2,42

015

6–

–

2,57

6–

–

–

–

–

2,42

02,57

6

totA

L A

Ut-

ow

neD

Ass

ets

388,26

739

,716

–

(3,668

)42

4,31

570

,735

16

,236

(306

)84

987

,514

31

7,53

233

6,80

1

cro

wn-

owne

d la

nd a

nd b

uild

ings

:Land

34,925

–

––

34,925

–

––

––

34,925

34

,925

Buildings

55,152

–

––

55,152

1,36

81,36

8–

–2,73

653

,784

52

,416

totA

L cR

ow

n-o

wn

eD L

An

D &

BU

iLD

inG

s90

,077

–

––

90,077

1,36

81,36

8–

–2,73

688

,709

87

,341

Ass

ets

unde

r fi

nanc

e le

ases

:Com


ent

20,491

3,25

3–

(5,288

)18

,456

12

,508

5,01

8(5,288

)–

12,238

7,98

36,21

8Buildings

43,242

–

––

43,242

9,77

62,00

4–

–11

,780

33

,466

31

,462

totA

L A

sset

s U

nD

eR F

inA

nc

e Le

Ase

s

63,733

3,25

3–

(5,288

)61

,698

22

,284

7,02

2(5,288

)–

24,018

41

,449

37

,680

totA

L P

Ro

PeR

ty, P

LAn

t &

eQ

UiP

Men

t54

2,07

742

,969

–

(8,956

)57

6,09

094

,387

24

,626

(5,594

)84

911

4,26

844

7,69

046

1,82

2


no

te

17:

intA

nG

iBLe

As

set

s

cos

t/R

eval

uati

on

Acc

umul

ated

Am

orti

sati

on a

nd im

pair

men

t Los

ses

net

Boo

k Va

lue

2010

– U

nive

rsit

y/c

onso

lidat

ed

Balance

Additions/

Revaluation

Disposals/

Balance

Balance

Amortisation

Disposals/

Impairment

Balance

Balance

Balance

at1Jan

(reclass-

increm

ent/

revaluation

at31Dec

at1Jan

revaluation

losses

at31Dec

at1Jan

at31Dec

2010

ification)(decrement)adjustments

2010

20

10

adjustments

20

10

2010

20

10

$0

00s

$000

s$0

00s

$00

0s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

inta

ngib

le a

sset

s:

Intellectualproperty

50

––

–50

50

–

––

50

––

Software

11,370

1,81

8–

(40)

13,148

9,01

92,04

0(41)

133

11,151

2,35

11,99

7

Programmedevelopm

ent

2,94

891

–

–3,03

92,02

452

8–

487

3,03

992

4–

WIP–software

1,28

333

7–

–1,62

0–

––

175

175

1,28

31,44

5

WIP–program

medevelopm

ent

816

(816

)–

––

725

–(725

)–

–91

–

totA

L in

tAn

GiB

Le A

sset

s

16,467

1,43

0–

(40)

17,857

11

,818

2,56

8(766

)79

514

,415

4,64

93,44

2

cos

t/R

eval

uati

on

Acc

umul

ated

Am

orti

sati

on a

nd im

pair

men

t Los

ses

net

Boo

k Va

lue

2009

– U

nive

rsit

y/c

onso

lidat

ed

Balance

Additions/

Revaluation

Disposals/

Balance

Balance

Amortisation

Disposals/

Impairment

Balance

Balance

Balance

at1Jan

(reclass-

increm

ent/

revaluation

at31Dec

at1Jan

revaluation

losses

at31Dec

at1Jan

at31Dec

2009

ification)(decrement)adjustments

2009

20

09

adjustments

20

09

2009

20

09

$0

00s

$000

s$0

00s

$00

0s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

$000

s$0

00s

inta

ngib

le a

sset

s:

Intellectualproperty

50

––

–50

50

–

––

50

––

Software

9,43

31,93

7–

–11

,370

7,52

01,36

9–

130

9,01

91,91

32,35

1

Programmedevelopm

ent

2,00

794

1–

–2,94

81,65

915

3–

212

2,02

434

892

4

WIP–software

2,18

9(906

)–

–1,28

3–

––

––

2,18

91,28

3

WIP–program

medevelopm

ent

2,03

6(1,220

)–

–81

6–

––

725

725

2,03

691

totA

L in

tAn

GiB

Le A

sset

s

15,715

75

2–

–16

,467

9,22

91,52

2–

1,06

711

,818

6,48

64,64

9



Tradecreditors 3,168 2,139 3,168 2,139

Creditorsaccruals 12,448 9,568 12,567 9,773

Sundrycreditors 3,392 2,425 3,349 2,522

GSTpayable 4,937 3,404 4,940 3,419

Withholdingtaxpayable 1,668 3,408 1,668 3,408

Relatedparty(Note27) 331 120 223 –

TertiaryEducationCommission 241 – 241 –

totAL tRADe AnD otHeR PAyABLes 26,185 21,064 26,156 21,261

Tradeandotherpayablesarenon-interestbearingandarenormallysettledon30-dayterms,thereforethecarryingvalueoftradeandotherpayablesapproximatestheirfairvalue.

note 18: tRADe AnD otHeR PAyABLes


Studentsfeesinadvance 31,314 15,667 31,314 15,667

Trustfunds 2 18 2 18

Researchfundingreceivedinadvance 8,657 5,466 8,657 5,466

Otherincomeinadvance 2,805 3,381 2,805 3,381

totAL incoMe in ADVAnce 42,778 24,532 42,778 24,532

note 19: incoMe in ADVAnce



Annualleave 9,184 8,076 9,184 8,076

Accruedsalarypayments 1,806 1,141 1,806 1,141

Sickleave 440 462 440 462

Otheremployeeentitlements 2,135 1,817 2,135 1,817

total employee entitlements – current 13,565 11,496 13,565 11,496

Longserviceleave 757 672 757 672

Retirementleave 1,457 1,374 1,457 1,374

total employee entitlements – non-current 2,214 2,046 2,214 2,046

totAL eMPLoyee entitLeMents 15,779 13,542 15,779 13,542

Thepresentvalueofthelongserviceleaveandretirementleaveobligationsdependonanumberoffactorsthataredeterminedonanactuarialbasisusinganumberofassumptions.Twokeyassumptionsusedincalculatingthisliabilityincludethediscountrateof5.82%andthesalaryinflationfactorof3.0%.Anychangesintheseassumptionswillimpactonthecarryingamountoftheliability.

Indeterminingtheappropriatediscountrate,theUniversityconsideredtheinterestratesonNewZealandgovernmentbondswithtermstomaturitysimilartothoseoftheestimatedfuturecashoutflows.Theinflationfactorhasbeenbasedontheexpectedlong-termincreaseinremunerationforemployees.

note 20: eMPLoyee entitLeMents


Reinstatement provision for leased buildings:

Openingbalance 669 686 669 686

Provisionmadeduringtheyear 119 58 119 58

Provisionusedduringtheyear – (75) – (75)

cLosinG BALAnce 788 669 788 669

Comprising:

Current 82 288 82 288

Non-current 706 381 706 381

totAL PRoVisions 788 669 788 669

ThereinstatementprovisionrepresentstheUniversity’sestimatedliabilitytoreinstateleasedbuildingstotheiroriginalstateattheexpiryoftheleaseterm.Theprovisioniscalculatedonthenetpresentvalueoftheestimatedliabilityatleaseexpiry.

note 21: PRoVisions



Notlaterthanoneyear 7,324 7,764 7,324 7,764

Laterthanoneyearandnotlaterthanfiveyears 17,977 17,513 17,977 17,513

Laterthanfiveyears 36,641 40,388 36,641 40,388

total minimum finance leases payments 61,942 65,665 61,942 65,665

Futurefinancecharges (20,012) (22,557) (20,012) (22,557)

total present value of minimum finance 41,930 43,108 41,930 43,108leases payments

Present value of minimum finance leases:




total minimum finance leases borrowings 41,930 43,108 41,930 43,108

Comprising:

Current 5,079 5,273 5,079 5,273

Non-current 36,851 37,835 36,851 37,835

totAL PResent VALUe oF MiniMUM 41,930 43,108 41,930 43,108FinAnce LeAses BoRRowinGs

AucklandUniversityofTechnologyhasenteredintofinanceleasesforvariousproperties,computersandelectronicequipment.Thenetcarryingamountoftheleaseditemswithineachclassofproperty,plantandequipmentisshowninNote16.

ThefinanceleasescanberenewedatAucklandUniversityofTechnology’soption,withrentssetbyreferencetocurrentmarketratesforitemsofequivalentageandcondition.AucklandUniversityofTechnologydoeshavetheoptiontopurchasetheassetattheendoftheleaseterm.TherearenorestrictionsplacedonAucklandUniversityofTechnologybyanyofthefinanceleasingarrangements.

AucklandUniversityofTechnologyleasesapproximately18,332squaremetres(2009:18,332squaremetres)ofaccommodationpropertiesinAucklandtoprovideresidentialaccommodationforstudents.

AucklandUniversityofTechnologyleases6,411computersandelectronicequipmentforteaching,researchandadministrativepurposes(2009:6,378computersandelectronicequipment).

note 22: FinAnce LeAses BoRRowinGs



current asset portion

ForwardForeignExchangeContract–Non-hedges 14 – 14 –

non-current asset portion

Interestrateswap–Cashflowhedges – 228 – 228

totAL DeRiVAtiVe FinAnciAL instRUMent 14 228 14 228Assets

current liability portion

Interestrateswap–Cashflowhedges (176) – (176) –

ForwardForeignExchangeContract–Non-hedges – (15) – (15)

non-current liability portion

Interestrateswap–Cashflowhedges (203) (235) (203) (235)

totAL DeRiVAtiVe FinAnciAL instRUMent (379) (250) (379) (250)LiABiLities

Fair value

Interest rate swapsThefairvaluesofinterestrateswapshavebeendeterminedbycalculatingtheexpectedcashflowsunderthetermsoftheswapsanddiscountingthesevaluestopresentvalue.Theinputsintothevaluationmodelarefromindependentlysourcedmarketparameterssuchasinterestrateyieldcurves.Mostmarketparametersareimpliedfrominstrumentprices.

Forward foreign exchange contractsThefairvaluesofforwardforeignexchangecontractshavebeendeterminedusingadiscountedcashflowsvaluationtechniquebasedonquotedmarketprices.Theinputsintothevaluationmodelarefromindependentlysourcedmarketparameterssuchascurrencyrates.Mostmarketparametersareimpliedfrominstrumentprices.

Thefairvaluesofinterestrateswapshavebeendeterminedusingadiscountedcashflowsvaluationtechniquebasedonquotedmarketprices.

notional principal amount

Interest rate swapsThenotionalprincipalamountsofinterestrateswapcontractsasat31December2010totalled$19.0million(2009:$19.0million).At31December2010,thefixedinterestratesofinterestrateswapsvaryfrom4.46%to6.98%(2009:4.46%to6.98%).

Forward foreign exchange contractsThenotionalprincipalamountsofforwardforeignexchangecontractsinNewZealanddollarstotalled$0.41million(2009:$1.27million).TheforeigncurrencyprincipalamountswereAustraliandollars$0.33million(2009:UnitedStatesdollars$0.9million).

note 23: DeRiVAtiVe FinAnciAL instRUMents



opening balance 48,700 46,200 48,700 46,200

Netborrowings/(repayments) (15,150) 2,500 (15,150) 2,500

cLosinG BALAnce 33,550 48,700 33,550 48,700

Fair valueThecarryingamountsofborrowingsrepayablewithinoneyearapproximatetheirfairvalue,astheimpactofdiscountingisnotsignificant.

note 24: BoRRowinGs

AucklandUniversityofTechnologyhasamulti-facilityagreement(andtheaccompanyingnegativepledgedeed)withtheANZNationalBankLimited.Thefacilityisfor$70million(2009:$70million)expiring3January2012.At31December2010,$33.55million(2009:$48.7million)hadbeendrawndownonthisfacility.

AucklandUniversityofTechnologyusesthefacilityasaflexiblefinancefacility,seekingtominimisedebtascashflowspermit.Theweightedaverageinterestrateontheoutstandingloanfortheyearwas4.28%(2009:3.12%).


equity:

Balanceatthebeginningoftheyear 149,161 123,925 149,896 124,782

Adjustmenttoprioryear’sopeningequity(Note39) – (473) – (473)

Netsurplusfortheyear 18,347 8,048 20,812 7,926

Transfersfromsuspensoryloans 20,333 16,667 20,333 16,667

Transfersfromassetsrevaluationreserve – 994 – 994

Balance at the end of the year 187,841 149,161 191,041 149,896

suspensory Loans:


Converttoequity(Note37) (20,333) (16,667) (20,333) (16,667)


totAL GeneRAL eQUity 237,841 219,494 241,041 220,229

In2010,AucklandUniversityofTechnologyreceivedtwoequityconversionconfirmationnoticesasdetailedinNote37reflectingthecommitmentanddeliveryofthekeyperformancemeasuresrequiredbytheCrowntotheongoingtreatmentofsuspensoryloansasequity.

note 25: GeneRAL eQUity



Assets revaluation reserve:


Transfertogeneralequityondisposalofland – (994) – (994)

Changesduetorevaluationof:

Crown-ownedland 4,277 – 4,277 –

Crown-ownedbuildings (2,088) – (2,088) –

AUT-ownedland (7,606) – (7,606) –

AUT-ownedbuildings 5,659 – 5,659 –


Available-for-sale revaluation reserve:

Balanceatthebeginningoftheyear (33) (9) (33) (9)

Netfairvaluegains/(losses)intheyear (4) (24) (4) (24)

Balance at the end of the year (37) (33) (37) (33)

cash flow hedge reserve:

Balanceatthebeginningoftheyear (7) (251) (7) (251)

Netfairvaluegains/(losses)intheyear (371) 244 (371) 244

Balance at the end of the year (378) (7) (378) (7)

totAL ReVALUAtion ReseRVes 117,009 117,142 117,009 117,142

note 26: ReVALUAtion ReseRVes


note 27: ReLAteD PARty tRAnsActions

crown/GovernmentThegovernmentinfluencestheroleofAucklandUniversityofTechnologyaswellasbeingamajorsourceofrevenue.AucklandUniversityofTechnologyentersintotransactionswithgovernmentdepartmentsandCrownagencies.TheseareseparatelydisclosedelsewhereintheFinancialStatements.

subsidiaries, Associate and Jointly-controlled entityAucklandUniversityofTechnologyistheultimateparentofthegroup.Thegroupcontainsthesubsidiaries,associateandjointly-controlledentityasdisclosedintheFinancialStatements.Duringtheyear,thefollowingtransactionswerecarriedoutwithrelatedparties:


sUBsiDiARy coMPAnies

Auckland University of technology Foundation

Donationreceivedonbehalf 1 1

Grantsandscholarshipsreceivedonbehalf 20 39

Grantsandscholarshipsreceivedfromsubsidiary 5 35

Creditorpaymentonbehalf 1 13

Accountsreceivable 5 –

Accountspayable – 5

AUt enterprises Limited

Operatingrevenuereceivedonbehalf 70 225

DevelopmentFundpaidtoSubsidiary 188 –

Operatingexpensespaidonbehalf 185 105

ManagementservicesprovidedtoSubsidiary 80 –

Accountspayable 108 115

AssociAte coMPAny

Lco new Zealand Limited

Purchaseofservices 311 524

Accountspayable 223 –

JointLy-contRoLLeD entity

AUt/Millennium ownership trust

Capitalcontribution–cash 7,500 7,500

Non-cashcapitalcontribution–land – 3,300

Operatingexpensespaidonbehalf 10 –

Accountsreceivable 6 416

Allrelatedpartytransactionsareonmarkettermsandconditions.


note 27: ReLAteD PARty tRAnsActions (continued)

Key management personnel University consolidated 2010 2009 2010 2009 Actual Actual Actual Actual $000s $000s $000s $000s

Salariesandothershort-termemployeeentitlements 3,762 3,384 3,762 3,384

Post-employmententitlements – 31 – 31

Terminationbenefits – 64 – 64

totAL Key MAnAGeMent 3,762 3,479 3,762 3,479PeRsonneL coMPensAtion

KeymanagementpersonnelincludetheChancellor,Vice-Chancellor,MembersofCouncil,andotherseniormanagementpersonnelreportingdirectlytotheVice-Chancellor.

ThereareclosefamilymembersofkeymanagementpersonnelemployedbytheUniversity.ThetermsandconditionsofthosearrangementsarenomorefavourablethantheUniversitywouldhaveadoptediftherewerenosuchrelationship.

TheVice-ChancellorisaTrusteeofAUT/MillenniumOwnershipTrust(ajointly-controlledentityoftheUniversity).HisfeesinrelationtothispositionarepaiddirectlytotheUniversity.

councillorsDuringtheyear,thefollowingCouncillorsweremembersoforganisationsthathaveenteredintotransactionswithAucklandUniversityofTechnologyaspartofitsnormaloperations. Accounts Accounts Purchases Sales payable receivable actual actual actual actual2010 $000s $000s $000s $000s

P Dunphy NewZealandPost(Director) 277 16 22 –AccidentCompensationCorporation(Director) 802 75 – 9

L Henry CranleighMerchantBank(Chairman) 10 – – –TransTasmanBusinessCircle(DeputyChairman) 43 – – –MedtechLimited(Director) 14 – – –

n Glavish Health&DisabilityCommission(Chairman) 1 – – –AucklandDistrictHealthBoard(GeneralManager) 1,073 60 – –

J Maasland APNNews&Media(Director) 9 – 2 –

J Martin MinterEllisonRuddWatts(Consultant) 122 – – –

2009

P Dunphy NewZealandPost(Director) 409 14 3 –AccidentCompensationCorporation(BoardMember) 717 578 – 47

L Henry MedtechLimited(Director) 6 – – –

J Maasland APNNews&Media(Director) 13 – – –

J Martin MinterEllisonRuddWatts(Partner) 24 – – –

Alltransactionsweremadeonnormalcommercialtermsandconditions.Outstandingbalancesatyear-endareunsecuredandinterestfree.Noprovisionhasbeenrequired,noranyexpenserecognisedforimpairmentofaccountsreceivablefromrelatedparties(2009:$nil).


note 28: coUnciLLoRs’ Fees

ThefollowingfeeswereearnedbymembersofAucklandUniversityofTechnologyCouncilduringtheyear.


council Member

UAiono 7 5

PAlley 1 –

ACocker 5 6

DCraig – 4

FDavies 7 6

AD’Cruz – 7

HDuncan 6 6

PDunphy 2 4

NGlavish 1 2

LHenry* 8 5

JHill 7 6

PKingi 5 3

JLaw – 3

JMaasland 3 3

JMartin 7 5

VNgLam 7 6

JO’Hara 3 5

PPhillips 6 4

PReeves 25 25

DSchofield 6 –

JSchofield 4 5

totAL coUnciLLoRs’ Fees 110 110

*LHenryisaTrusteeofAUT/MillenniumOwnershipTrust(ajointly-controlledentityoftheUniversity)andreceivedfeesof$10,000(2009:$8,661)inrelationtothatposition.



Netsurplusfromoperations 18,347 8,048 20,812 7,926

Adjustments for items not involving cash

Depreciation,amortisationandimpairment 32,322 28,064 32,322 28,064

Increase/(decrease)inemployeeentitlements 168 310 168 310–termportion

Increase/(decrease)inreinstatementprovision 119 (17) 119 (17)

(Gain)/lossonforeigncurrencytranslation 54 107 54 107

(Gain)/lossonderivativefinancialinstruments (14) 15 (14) 15–non-hedged

Shareofassociate’snetsurplus – – (45) (21)

Shareofjointly-controlledentity’snet(surplus)/deficit – – (2,266) 145

total items not involving cash 32,649 28,479 30,338 28,603

Movements in working capital

(Increase)/decreaseintradeandotherreceivables (15,921) (1,865) (15,946) (2,114)

(Increase)/decreaseinprepayments 23 (735) 23 (737)

(Increase)/decreaseininventories (44) 11 (44) 11

Increase/(decrease)intradeandotherpayables 5,121 6,949 4,879 7,204

Increase/(decrease)inincomeinadvance 18,246 6,980 18,246 6,980

Increase/(decrease)incurrentemployeeentitlements 2,069 4,148 2,069 4,148

total movements in working capital 9,494 15,488 9,227 15,492

Increase/(decrease)incapitalaccruals (1,563) (107) (1,545) (74)

(Gain)/lossondisposalofproperty,plant 17 (2) 17 (2)andequipment

Add/(less) items classified as investing activities (1,546) (109) (1,528) (76)

net cAsH FLow FRoM oPeRAtinG ActiVities 58,944 51,906 58,849 51,945

note 29: ReconciLiAtion oF net sURPLUs to net cAsH FLow FRoM oPeRAtinG ActiVities


Capitalexpenditurecontractedforatbalancedate 75,541 2,168 75,541 2,168butnotyetincurredforproperty,plantandequipment(NoteA)

Balanceofcommittedcapitalcontributionto – 7,500 – 7,500AUT/MillenniumOwnershipTrust

totAL cAPitAL coMMitMents 75,541 9,668 75,541 9,668

Note(A)–InNovember2010,theUniversityenteredintoaConstructionContractfor$74.5millionwithFletcherConstructionCompanyLimitedaspartoftheconstructionofa20,000squaremetrePrecinctontheCityCampus.

note 30: cAPitAL coMMitMents






totAL non-cAnceLLABLe oPeRAtinG LeAses 22,681 27,978 22,681 27,978

AucklandUniversityofTechnologyleasesproperty,plantandequipmentinthenormalcourseofitsbusiness.Themajorityoftheseleaseshaveanon-cancellabletermof36months.AucklandUniversityofTechnologydoeshavetheoptiontopurchasetheassetattheendoftheleaseterm.

AucklandUniversityofTechnologyleases26,431squaremetres(2009:27,064squaremetres)ofofficespaceinAucklandforteaching,research,andadministrativepurposes.ThemajorityoftheseleasescanberenewedatAucklandUniversityofTechnology’soption,withrentssetbyreferencetocurrentmarketratesforitemsofequivalentageandcondition.

note 32: FinAnciAL instRUMent

Financial instrument categoriesTheaccountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelow:


FinAnciAL Assets

Loans and receivablesCashandcashequivalents 3,706 817 4,662 1,870Short-terminvestments 129 – 129 –Tradeandotherreceivables 23,474 7,553 23,550 7,584Investmentscarriedatcost 153 153 153 153

totAL LoAns AnD ReceiVABLes 27,462 8,523 28,494 9,607

Fair value through other comprehensive incomeListedsecurities 4 8 4 8

Derivatives designated as cash flow hedgesInterestrateswap – 228 – 228

Derivatives not designated as hedgesForwardforeignexchangecontracts 14 – 14 –

FinAnciAL LiABiLities

Derivatives designated as cash flow hedgesInterestrateswap 379 235 379 235

Derivatives not designated as hedgesForwardforeignexchangecontracts – 15 – 15

Financial liabilities measured at amortised costsTradeandotherpayables 26,185 21,064 26,156 21,261Borrowings 33,550 48,700 33,550 48,700

totAL FinAnciAL LiABiLities 59,735 69,764 59,706 69,961MeAsUReD At AMoRtiseD costs

note 31: oPeRAtinG LeAses coMMitMents – As Lessee

Commitmentsforfutureaggregateminimumleasepayments,inrelationtonon-cancellableoperatingleasescontractedatthereportingdatebutnotrecognisedasliabilitiesareasfollows:


Valuation technique Quoted Significant market Observable non-observable Total price inputs inputUniversity 2010 $000s $000s $000s $000s

Financial assets Interestrateswap–cashflowhedges – – – –

Forwardforeignexchangecontracts–non-hedged 14 – 14 –

Listedsecurities 4 4 – –

Financial liabilities Interestrateswap–cashflowhedges 379 – 379 –

Forwardforeignexchangecontracts–non-hedged – – – –

consolidated 2010

Financial assets Interestrateswap–cashflowhedges – – – –





University 2009

Financial assets Interestrateswap–cashflowhedges 228 – 228 –





consolidated 2009

Financial assets Interestrateswap–cashflowhedges 228 – 228 –





note 32: FinAnciAL instRUMent (continued)

Fair value hierarchy disclosuresForthoseinstrumentsrecognisedatfairvalueontheBalanceSheet,fairvaluesaredeterminedaccordingtothefollowinghierarchy:

1. Quotedmarketprice–Financialinstrumentswithquotedpricesforidenticalinstrumentsinactivemarkets.

2. Valuationtechniqueusingobservableinputs–Financialinstrumentswithquotedpricesforsimilarinstrumentsinactivemarketsorquotedpricesforidenticalorsimilarinstrumentsininactivemarketsandfinancialinstrumentsvaluedusingmodelswhereallsignificantinputsareobservable.

3. Valuationtechniqueswithsignificantnon-observableinputs–Financialinstrumentsvaluedusingmodelswhereoneormoresignificantinputsarenotobservable.

ThefollowingtableanalysesthebasisofthevaluationofclassesoffinancialinstrumentsmeasuredatfairvalueontheBalanceSheet:


note 33: FinAnciAL instRUMent RisKs

AucklandUniversityofTechnology’sactivitiesexposeittoavarietyoffinancialrisksincludingmarketrisk(interestraterisk,currencyriskandpricerisk),creditriskandliquidityrisk.TheUniversity’sTreasuryManagementPolicyandoverallriskmanagementprogrammefocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheUniversity.TheUniversityusesderivativefinancialinstrumentssuchasinterestrateswapsandforwardforeignexchangecontractstohedgecertainriskexposures.

FinancialriskmanagementiscarriedoutundertheTreasuryManagementPolicyapprovedbytheCounciloftheUniversity.TheCouncilprovideswrittenprinciplesforoverallriskmanagement,aswellaspoliciescoveringspecificareas,suchasinterestraterisk,creditrisk,useofderivativefinancialinstrumentsandnon-derivativefinancialinstruments,andinvestmentofexcessliquidity.

TheCouncil-approvedTreasuryManagementPolicydoesnotallowanytransactionsthatarespeculativeinnaturetobeenteredinto.

Market risk

Interest rate riskInterestrateriskistheriskthatthefairvalueorfuturecashflowsoftheUniversity’sfinancialinstrumentswillfluctuateduetochangesinmarketinterestrates.AucklandUniversityofTechnologyisexposedtointerestrateriskfromitsinterest-earningfinancialassetsandinterest-bearingliabilities.

AucklandUniversityofTechnologyisriskaverseandseekstominimiseexposurearisingfromitstreasuryactivities.Itdoesnotundertakeunnecessaryinvestmentorborrowingactivity,norisitspeculativeintheactivityitundertakes.

AucklandUniversityofTechnologymanagesitsinterestrateriskonborrowingsbyusingfloating-to-fixedinterestrateswaps.SuchinterestrateswapshavetheeconomiceffectofconvertingborrowingsatfloatingratesandswappingthemintofixedratesthataregenerallylowerthanthoseavailableifAucklandUniversityofTechnologyborrowedatfixedratesdirectly.Undertheinterestrateswaps,AucklandUniversityofTechnologyagreeswithotherpartiestoexchange,atspecifiedintervals,thedifferencebetweenfixedcontractratesandfloating-rateinterestamountscalculatedbyreferencetotheagreednotionalprincipalamounts.

Currency riskCurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuateduetochangesinforeignexchangerates.AucklandUniversityofTechnologyhastransactionalcurrencyexposures.Suchexposurearisesfromthepurchaseofgoodsandservicesincurrenciesotherthanthelocalcurrency.

ItistheUniversity’sTreasuryManagementPolicytomanageforeigncurrencyrisksarisingfromcontractualcommitmentsandliabilitiesthatareabovespecifiedamountsbyenteringintoforwardforeignexchangecontractsorsupplierguaranteedNewZealandDollarpurchasepricecontractstohedgetheforeigncurrencyriskexposure.

Price riskAucklandUniversityofTechnologyisexposedtoequitysecuritiespricerisk.ThisarisesfrominvestmentsheldbytheUniversityandclassifiedintheBalanceSheeteitherasavailable-for-salefinancialassetsoratfairvaluethroughprofitorloss.

TheUniversitydoesnotmanagethepriceriskarisingfrominvestmentsinequitysecurities.Thepriceriskfortheequitysecuritiesisimmaterialintermsofthepossibleimpactonprofitorlossortotalequity.Ithasthereforenotbeenincludedinthesensitivityanalysis.


note 33: FinAnciAL instRUMent RisKs (continued)

credit risk

CreditriskistheriskthatathirdpartywilldefaultonitsobligationstotheUniversity,therebycausingtheUniversitytoincuraloss.TheUniversity’sTreasuryManagementPolicylimitstheamountofcreditexposuretoanyonefinancialinstitutionororganisation.TheUniversityonlyinvestsfundswithentitiesthathaveaStandardandPoor’screditratingofatleast‘A-2’forshort-termand‘A’forlong-terminvestments.

TheUniversityhasnocollateralorothercreditenhancementsforfinancialinstrumentsthatgiverisetocreditrisk.

Themaximumcreditexposureforeachclassoffinancialinstrumentisasfollows:


Cashandcashequivalents 3,706 817 4,662 1,870

Short-terminvestments 129 – 129 –

Tradeandotherreceivables 23,474 7,553 23,550 7,584

totAL cReDit RisK 27,309 8,370 28,341 9,454

ThecreditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetoStandardandPoor’screditratings(ifavailable)ortohistoricalinformationaboutcounterpartydefaultrates:


coUnteRPARties witH cReDit RAtinGs

cash and cash equivalents:

AA 3,706 817 4,662 1,870

total cash and cash equivalents 3,706 817 4,662 1,870

short-term investments:

AA 129 – 129 –

total short-term investments 129 – 129 –

Derivative financial instrument assets:

AA 14 228 14 228

total derivative financial instrument assets 14 228 14 228

TradeandotherreceivablesmainlyarisefromtheUniversity’soperatingfunctions,thereforetherearenoproceduresinplacetomonitororreportthecreditqualityoftradeandotherreceivableswithreferencetointernalorexternalcreditratings.TheUniversityisnotexposedtoanymaterialconcentrationsofcreditrisk.Tradeandotherreceivablebalancesaremonitoredonanongoingbasistoensurethattheexposuretobaddebtsisnotsignificant.



Liquidity risk

Management of liquidity riskLiquidityriskistheriskthattheUniversitywillencounterdifficultyraisingliquidfundstomeetcommitmentsastheyfalldue.Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandtheavailabilityoffundingthroughanadequateamountofunutilisedcommittedcreditfacilities.

TheUniversitymanagesliquidityriskbycontinuouslymonitoringforecastandactualcashflowsandmatchingthematurityprofilesoffinancialassetsandliabilities.ToprovideflexibilityinthemanagementoftheUniversity’sliquidity,theUniversityhasestablishedamulti-facilityagreement(andtheaccompanyingnegativepledgedeed)withtheANZNationalBankLimited(fordetailsrefertoNote24).

Contractual maturity analysis of financial liabilitiesThetablebelowanalysestheUniversity’sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheremainingperiodatbalancedatetothecontractualmaturitydate.Futureinterestpaymentsonfloatingratedebtisbasedonthefloatingrateontheinstrumentatbalancedate.Theamountsdisclosedarethecontractualundiscountedcashflows.

Carrying Contractual Lessthan 1-5 Morethan Amount Cashflows 1year years 5years $000s $000s $000s $000s $000s

UniVeRsity 2010

Tradeandotherpayables 26,185 26,185 26,185 – –

Netsettledderivativeliabilities 379 379 176 203 –

Financeleases 41,930 61,942 7,324 17,977 36,641

Borrowings 33,550 34,982 1,422 33,560 –

totAL 102,044 123,488 35,107 51,740 36,641

consoLiDAteD 2010



Financeleases 41,930 61,942 7,324 17,977 36,641

Borrowings 33,550 34,982 1,422 33,560 –

totAL 102,015 123,459 35,078 51,740 36,641

UniVeRsity 2009



Financeleases 43,108 65,665 7,764 17,513 40,388

Borrowings 48,700 51,731 1,524 50,207 –

totAL 113,122 138,710 30,367 67,955 40,388

consoLiDAteD 2009


Netsettledderivativelliabilities 250 250 15 235 –

Financeleases 43,108 65,665 7,764 17,513 40,388

Borrowings 48,700 51,731 1,524 50,207 –

totAL 113,319 138,907 30,564 67,955 40,388



Contractual maturity analysis of financial assetsThetablebelowanalysestheUniversity’sfinancialassetsintorelevantmaturitygroupingsbasedontheremainingperiodatthebalancedatetothecontractualmaturitydate.

Carrying Contractual Lessthan 1-5 Morethan Amount Cashflows 1year years 5years $000s $000s $000s $000s $000s

UniVeRsity 2010

Cashandcashequivalents 3,706 3,706 3,706 – –

Short-terminvestments 129 129 129 – –

Tradeandotherreceivables 23,474 23,474 23,474 – –

Netsettledderivativeassets 14 14 14 – –

totAL 27,323 27,323 27,323 – –

consoLiDAteD 2010


Short-terminvestments 129 129 129 – –


Netsettledderivativeassets 14 14 14 – –

totAL 28,355 28,355 28,355 – –

UniVeRsity 2009

Cashandcashequivalents 817 817 817 – –

Short-terminvestments – – – – –


Netsettledderivativeassets 228 228 – 228 –

totAL 8,598 8,598 8,370 228 –

consoLiDAteD 2009


Short-terminvestments – – – – –


Netsettledderivativeassets 228 228 – 228 –

totAL 9,682 9,682 9,454 228 –



sensitivity analysis

Thetablesbelowillustratethepotentialprofitandlossandequity(excludingretainedsurplus)impactforreasonablypossiblemarketmovementsininterestrates,withallothervariablesheldconstant,basedontheUniversity’sfinancialinstrumentexposuresatbalancedate.


+100 bps –100 bps +100 bps –100 bps

Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000s $000s $000s $000s $000s $000s $000s $000s

2010

inteRest RAte RisK

Financial assets

Cashandcashequivalents 37 – (37) – 47 – (47) –

Short-terminvestments 1 – (1) – 1 – (1) –

Interestrateswaps – – – – – – – –

Financial liabilities

Interestrateswaps – 47 – (47) – 47 – (47)

Borrowings (146) – 146 – (146) – 146 –

total sensitivity to (108) 47 108 (47) (98) 47 98 (47)interest rate risk


+10% –10% +10% –10%


2010

cURRency RisK

Financial assets

Cashandcashequivalents (169) – 611 – (169) – 611 –

Forwardforeignexchange (39) – 46 – (39) – 46 –contracts


Tradeandotherpayables – – – – – – – –

Forwardforeignexchange – – – – – – – –contracts

total sensitivity to (208) – 657 – (208) – 657 –currency risk

eQUity PRice RisK

other financial assets

Listedsecurities – 1 – (1) – 1 – (1)

total sensitivity to – 1 – (1) – 1 – (1)equity price risk




+100 bps –100 bps +100 bps –100 bps


2009

inteRest RAte RisK

Financial assets

Cashandcashequivalents 8 – (8) – 19 – (19) –

Short-terminvestments – – – – – – – –

Interestrateswaps – – – – – – – –


Interestrateswaps – 12 – (12) – 12 – (12)

Borrowings (437) – 437 – (437) – 437 –

total sensitivity to (429) 12 429 (12) (418) 12 418 (12)interest rate risk


+10% –10% +10% –10%


2009

cURRency RisK

Financial assets

Cashandcashequivalents (16) – 66 – (16) – 66 –

Forwardforeignexchange – – – – – – – –contracts


Tradeandotherpayables 24 – (30) – 24 – (30) –

Forwardforeignexchange (114) – 142 – (114) – 142 –contracts

total sensitivity to (106) – 178 – (106) – 178 –currency risk

eQUity PRice RisK

other financial assets

Listedsecurities – 1 – (1) – 1 – (1)

total sensitivity to – 1 – (1) – 1 – (1)equity price risk


note 37: continGencies

contingent assets

TheUniversityandtheGrouphavenocontingentassets.

note 34: cAPitAL MAnAGeMent

TheUniversity’scapitalisitsequity,whichcomprisesretainedsurplusesandreserves.Equityisrepresentedbynetassets.TheUniversitymanagesitsrevenue,expenses,assets,liabilities,andgeneralfinancialdealingsprudently.TheUniversity’sequityislargelymanagedasaby-productofmanagingincome,expenses,assetsandliabilities.

TheobjectiveofmanagingtheUniversity’sequityistoensuretheUniversityeffectivelyachievesthegoalsandobjectivesforwhichithasbeenestablished,whileremainingagoingconcern.

note 35: seGMentAL inFoRMAtion

AucklandUniversityofTechnologyoperatespredominantlyinoneindustry,tertiaryeducation,andinonegeographicalarea,Auckland,NewZealand.

note 36: eXcePtionAL RisKs oF oPeRAtinG

ThereareanumberoffactorsthatcouldadverselyaffectAucklandUniversityofTechnology’soperatingsurplus.Mostnotably,InternationalstudentrevenuecouldbeaffectedbyasignificantchangetoNewZealand’soraforeigngovernment’simmigrationorvisitors’permitspolicy.16%(2009:15%)oftotalrevenueisderivedfromInternationalstudentfees.



$50 million suspensory Loan


Converttoequity – – – –




Converttoequity(seenotebelow) (8,333) (16,667) (8,333) (16,667)

Balance at the end of the year – 8,333 – 8,333



Converttoequity(seenotebelow) (12,000) – (12,000) –

Balance at the end of the year – 12,000 – 12,000

totAL sUsPensoRy LoAns 50,000 70,333 50,000 70,333

$25 million Suspensory Loan Duringthefinancialyear,theUniversityreceivedtheEquityConversionConfirmationNoticedated8April2010fromtheCrown.ThisconfirmedthattheUniversityhadmettheconversioncondition6.1.2underthesuspensoryloanagreementandthesuspensoryloanamountof$8.33millionhadbeenconvertedintoequityfromthatdate.

In2009,theUniversityreceivedtheearlierEquityConversionConfirmationNoticesfromtheCrownasfollows:

a) EquityConversionConfirmationNoticedated30June2009,confirmedthattheUniversityhadmettheconversionconditions6.1.1underthesuspensoryloanagreementandthesuspensoryloanamountof$8.33millionhadbeenconvertedintoequityfromthatdate.

b) EquityConversionConfirmationNoticedated21July2009,confirmedthattheUniversityhadmettheconversionconditions6.1.3underthesuspensoryloanagreementandthesuspensoryloanamountof$8.33millionhadbeenconvertedintoequityfromthatdate.

$12 million Suspensory Loan Duringthefinancialyear,theUniversityreceivedtheEquityConversionConfirmationNoticedated16July2010fromtheCrown.ThisconfirmedthattheUniversityhadmettheconversionconditions9.4.1and9.4.2underthesuspensoryloanagreementandthesuspensoryloanamountof$12millionhadbeenconvertedintoequityfromthatdate.

$50 million Suspensory Loan TheUniversityiscommittedtomeetingtheremainingperformancetargetsorobjectivesofthesuspensoryloanandconsidersitunlikelyanypartoftheloanwillberequiredtoberepaid.

note 37: continGencies (continued)

contingent liabilities

Suspensory Loans from CrownIn2008,theUniversityreceivedthreesuspensoryloansfromtheCrowntothevalueof$50million,$25millionand$12million.Theseloanswererecognisedascontingentliabilities.ThesesuspensoryloanshavebeenrecognisedastheCrown’sequityinjectionwithingeneralequityuntiltheoptiontoconvertexpiresat30November2013,30June2010and30June2014respectively.IntheeventoftheUniversitynotachievingtherequiredperformancetargetsorobjectivessetunderthetermsandconditionsofthesuspensoryloanagreements,theloansarerepayabletotheCrown.

Duringthefinancialyear,$20.33million(2009:$16.67million)hasbeenconvertedtoequityfollowingtheUniversitymeetingtheconversionconditionsnotedbelow.Thebalancesofsuspensoryloansthatarestillsubjecttoachievingtherequiredperformancetargetsorobjectivesareasfollows:


note 38: eXPLAnAtion oF VARiAnces AGAinst BUDGet

Explanationsformajorvariancesagainstbudgetinformationareasfollows:

income statement

Government operational fundingGovernmentoperationalfundingwas$1.6millionaheadofbudget.Thiscomprised$0.6millionadditionaltri-partitefunding,$0.6millionadditionalPrioritiesforFocusfundingand$0.4millionadditionaltrainingcontractsthanbudgeted.

Student tuition feesStudenttuitionfeeswere$2.6millionaheadofbudget,duemainlytotheenrolmentof193additionalInternationalstudents.

Research grantsNetresearchgrantsfortheyearwere$9.2millionwhichwas$1.4millionbelowthebudgeted$10.6million.Actualresearchgrantsreceivedduringtheyearwere$11.1millionwhichwas$0.6millionabovebudget.Ofthegrantsreceived,$1.9millionwasdeferred,beingtheresearchuncompletedatyear-end.

Personnel costsActualpersonnelcostsat$168.3millionwerewithin0.2%ofbudget$167.9million.

Depreciation, amortisation and impairmentDepreciationwas$2.3millionaheadofbudgetprimarilyduetoincreasedLibrarydepreciation($1.9million).Thedepreciationrateonelectronicdatabaseswasincreasedto20%from10%.

Finance costsSavingsininterestcostsof$1.3millionweredrivenbyreducedcostoffundsandimprovedcash-flows.

Balance sheet

Trade debtors and other receivablesTradedebtorsandotherreceivableswere$17.8millionabovebudget.Thiswasmainlyduetoa$17millionincreaseinstudentdebtors,withstudentsbeinginvoicedearlyforthe2011enrolmentyear.

Property, plant and equipmentProperty,plantandequipment(PPE)was$1.9millionabovebudget.Thiswasmainlyduetoanincreaseinaudiovisualandothernon-computerelectronicequipmentbeingpurchasedinsteadofleased.

Intangible assetsIntangibleassetswere$1.2millionbelowbudget.$0.7millionofprogrammedevelopmentcapitalisedcostswereimpairedin2010.

Trade and other payablesTradeandotherpayableswere$12millionabovebudgetbutonly$5millionhigherthan2009.Thesignificantincreaseon2009wasincreditorsandaccruals.

Income in advanceIncomeinadvancewas$25millionabovebudgetbutonly$18millionhigherthan2009.Thissignificantincreasewas$17millioninstudentfeespaidinadvancefortuitionin2011(refer“Tradedebtorsandotherreceivables”above).

Employee entitlementsEmployeeentitlementswere$6.7millionabovebudgetbutonly$2millionabovethe2009actualtotal.Theincreaseon2009mainlycomprised$1.1millionadditionalannualleaveand$0.7millionsalaryaccrual.

Bank borrowingsBankborrowingswere$22millionbelowthebudgetof$55.3millionatyearend.Thisreflectshighercashreceiptsfromstudentnumbers,improvedcollectionof2010studentdebt,higherthanbudgetsurpluses,andlowerthanexpectedcapitalexpenditure.

Finance lease borrowingsFinanceleaseborrowingswere$2.1millionlessthanthebudgetof$44million.DuetotherequirementsetbytheSecretaryofEducationthatthecapitalisedvalueofleasedcomputerandelectronicequipmentshouldnotexceed$8.4millionatanytime,ahigherproportionofnewequipmentwaspurchasedthaninpreviousyears(refer“Property,plantandequipment”above).

statement of cash Flows

Theexplanationfor“Bankborrowings”aboveexplainstheCashFlowvariances.


note 39: cHAnGes in AccoUntinG PoLicies

Theadjustedcomparativefinancialstatements,reflectingtheretrospectiveapplicationofthenewaccountingpolicyasrelatestoborrowingcostsareasfollows:

incoMe stAteMent (eXtRActs) FoR tHe yeAR enDeD 31 DeceMBeR 2009

University

Balanceas Effectof Adjusted reportedunder accounting balanceunder previouspolicy policychange newpolicy $000s $000s $000s

TotalRevenue 260,122 – 260,122

Totalexpensesbeforefinancecosts (248,218) – (248,218)

operating surplus before finance costs 11,904 – 11,904

Financecosts (3,674) (182) (3,856)

operating surplus 8,230 (182) 8,048

net sURPLUs 8,230 (182) 8,048

consoLiDAteD incoMe stAteMent (eXtRActs) FoR tHe yeAR enDeD 31 DeceMBeR 2009

consolidated


TotalRevenue 260,792 – 260,792

Totalexpensesbeforefinancecosts (248,886) – (248,886)

operating surplus before finance costs 11,906 – 11,906

Financecosts (3,674) (182) (3,856)

operating surplus 8,232 (182) 8,050

Shareofassociate’ssurplus 21 – 21

Shareofjointly-controlledentity’sdeficit (145) – (145)

net sURPLUs 8,108 (182) 7,926


note 39: cHAnGes in AccoUntinG PoLicies (continued)

BALAnce sHeet (eXtRActs) As At 31 DeceMBeR 2009

University


Totalcurrentassets 10,324 – 10,324

non-cURRent Assets

Property,plantandequipment(NoteA) 462,004 (182) 461,822

total non-current assets 478,359 (182) 478,177

totAL Assets 488,683 (182) 488,501

Totalcurrentliabilities 62,668 – 62,668

Totalnon-currentliabilities 89,197 – 89,197

totAL LiABiLities 151,865 – 151,865

eQUity

Retainedsurplus(NoteA) 219,676 (182) 219,494

total equity 336,818 (182) 336,636

totAL LiABiLities AnD eQUity 488,683 (182) 488,501

consoLiDAteD BALAnce sHeet (eXtRActs) As At 31 DeceMBeR 2009

consolidated


Totalcurrentassets 11,410 – 11,410

non-cURRent Assets

Property,plantandequipment(NoteA) 462,004 (182) 461,822

total non-current assets 478,205 (182) 478,023

totAL Assets 489,615 (182) 489,433

Totalcurrentliabilities 62,865 – 62,865

Totalnon-currentliabilities 89,197 – 89,197

totAL LiABiLities 152,062 – 152,062

eQUity

Retainedsurplus(NoteA) 220,441 (182) 220,229

total equity 337,553 (182) 337,371

totAL LiABiLities AnD eQUity 489,615 (182) 489,433

Note(A)–ThebalanceoftheProperty,PlantandEquipment,andRetainedSurplusasreportedunderpreviouspolicyhavebeenrevisedtoreflecttheadjustmentstotheopeningequityinrespectof$473,000borrowingcostscapitalisedinprioryears.


note 40: eVents AFteR tHe RePoRtinG PeRioD

On21February2011,AUTCouncilapprovedtheUniversitytoenterintoasaleandpurchaseagreementtoacquireaparceloflandlocatedat15-19ApolloDrive,Rosedale,NorthShore,ofapproximately13,005m2,beingasubdivisionofLot1DP163177ascontainedinCertificateofTitleNA98B/732for$4.55million.SettlementwilllikelyoccurinApril2011,withfundsbeingprovidedfromtheANZlineofcredit.

note 41: coMPARAtiVe FiGURes

Certaincomparativefiguresintheprioryearhavebeenreclassifiedtoconformwiththisyear’spresentation.AsreflectedinNote39,theeffectofaccountingpolicychangeshasalsoresultedinchangesto2009comparativefigures.

AR-03/2011-400

aut university march 2011 Director of PlanningPrivate Bag 92006, Auckland 1142City Campus, 55 Wellesley Street EastAuckland, New Zealand

TEL: 09-921-9999FAX: 09-921-9983 www.aut.ac.nz

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