UNSW Australia · 2018. 5. 29. · UNSW ANNUAL REPORT 2013 05 Council Report 31 December 2013 MEETINGS OF COMMITTEES AUDIT FINANCE NOMINATIONS & REMUNERATION RISK HONORARY DEGREES

Never Stand Still

Financial Report 2013UNSW Australia

2013Annual Report

UNSW ANNUAL REPORT 2013 01

UNSW’s Financial Results

“It is the operating result that most accurately reflects the financial situation of the University.”

The Annual Report details the financial results for UNSW for 2013. In addition to publishing financial results compliant with Australian accounting standards, the University also publishes its operating result for the same period.

The accounting result for UNSW (the consolidated entity) for 2013 is $104.8 million. The operating result is $17.2 million, adjusted for long service leave. This is an improvement on the 2012 result of $11.3 million, due largely to an increase in teaching revenue.

The accounting result includes donations, grants, and other funds provided to UNSW for specific capital and research projects. These funds are not available to support the university’s day-to-day operations. It is the operating result that therefore most accurately reflects the financial situation of the University in terms of being able to sustain its offerings and their quality.

The efficiency dividend on universities announced by the Federal Government will, if implemented, have a significant impact on the University budget, with an estimated cost to UNSW growing to $14 million per annum from 2015.

02 UNSW ANNUAL REPORT 2013

UNSW Annual Report – Volume 2

03 Council Report09 Statement by Members of Council10 Independent Auditor’s Report12 2013 Financial Report 12 Income statement 13 Statement of comprehensive income 14 Statement of financial position 15 Statement of changes in equity 16 Statement of cash flows 17 Notes to the financial statements102 Supplementary Information105 2013 Statutory Report 106 Disclosure Requirements 108 Access to Information and Privacy 109 GIPAA Access Applications 112 Statistical Information on EEO Target Groups

Contents


Council Report31 December 2013

The members of The University of New South Wales Council present their report on the consolidated entity consisting of The University of New South Wales, referred to as “UNSW” and the entities it controlled at the end of or during the year ended 31 December 2013.

UNSW is governed by a Council led by the Chancellor under the University of New South Wales Act 1989 (“The Act”). The Act was amended during 2012 to adopt new governance provisions under The Universities Governing Bodies Act 2011.

MembersThe following persons were the Council members of UNSW at 31 December 2013:

Ex-Officio Council Members

• Mr David M. Gonski AC

• Professor Frederick G. Hilmer AO

• Professor Prem Ramburuth

Ministerial Appointments

• Mr Brian Long

• Ms Jillian S. Segal AM

Elected Council Members

• Ms Samantha Bobba

• Mr Stefan Heap

• Professor Rakesh Kumar

• Mr Karl Natschev

• Scientia Professor John Piggott

Members Appointed by Council

• Mr Nicholas Carney

• Dr Christine Clifton

• Mr Terry Davis

• Mr Matthew Grounds

• Mr Warwick Negus

Former Members

Mr Paul Keighley was a Council member from the beginning of the year and completed his term of office on 2 July 2013.



MEMBER COUNCIL MEETINGS

A B


Mr David M. Gonski AC 6 6

Professor Frederick G. Hilmer AO 6 6

Professor Prem Ramburuth 6 6


Mr Brian Long 5 6

Ms Jillian S. Segal AM 6 6


Ms Samantha Bobba 5 6

Mr Stefan Heap 3 3

Professor Rakesh Kumar 6 6

Mr Karl Natschev 6 6

Scientia Professor John Piggott 4 6


Mr Nicholas Carney 5 6

Dr Christine Clifton 4 6

Mr Terry Davis 5 6

Mr Matthew Grounds 5 6

Mr Warwick Negus 6 6

Former Members

Mr Paul Keighley 2 3

A = Number of meetings attended as a member.B = Number of meetings held during the time the member held office during the year.

Meetings of Council and Committees

The number of meetings of the members of UNSW Council and each committee held during the year ended 31 December 2013, and the numbers of meetings attended by each member were:


Council Report 31 December 2013

MEETINGS OF COMMITTEES

AUDIT FINANCE NOMINATIONS & REMUNERATION

RISK HONORARY DEGREES

A B A B A B A B A B


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

Professor Frederick G. Hilmer AO2 2 3 3 3 1 2

Professor Prem Ramburuth 3 3 3 3 2 2


Mr Brian Long 5 5

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


Ms Samantha Bobba 3 3

Mr Stefan Heap 1 1

Professor Rakesh Kumar 2 2

Mr Karl Natschev

Scientia Professor John Piggott 3 5 2 3


Mr Nicholas Carney 3 3

Dr Christine Clifton 2 3

Mr Terry Davis 3 3 2 2

Mr Matthew Grounds 1 3

Mr Warwick Negus 3 3 3 3

Former Members

Mr Paul Keighley

External Committee Members

Mr Daniel Gauchat* 3 3

Mr Bruce Moore* 5 5

Mr George Sutton* 3 3

Mr Michael Wright* 4 5

Academic Board Nominees

Professor John Gascoigne* 2 2

Professor Richard Henry AM* 2 2

Professor Maria Skyllas-Kazacos*

A = Number of meetings attended as a member.B = Number of meetings held during the time the member held office during the year.

* Not a member of Council1 As Chancellor, is ex officio a member of all Council committees and has the right but not the obligation to attend all meetings.

2 As Vice-Chancellor, is ex officio a member of all Council committees except the Audit Committee and has the right but not the obligation to attend all meetings.3 As Deputy Chancellor, is ex officio a member of all Council committees and has the right but not the obligation to attend all meetings.


Principal Activities

During the year, the principal continuing activities of the consolidated entity consisted of:

• The provision of education and research facilities of University standard;

• The encouragement of the dissemination, advancement, development and application of knowledge informed by free inquiry;

• The provision of courses of study or instruction across a range of fields, and the carrying out of research, to meet the needs of the community;

• The participation in public discourse;

• The conferring of degrees, including those of Bachelor, Master and Doctorate;

• The provision of teaching and learning that engage with advanced knowledge and inquiry;

• The development of governance, procedural rules, admission policies, financial arrangements and quality assurance processes that are underpinned by the values and goals of UNSW’s core activities, and that are sufficient to ensure the integrity of all UNSW programs.

These activities were carried out within the framework of “B2B Blueprint to Beyond – UNSW Strategic Intent”, which reflects the fundamental University mission of education, research and community engagement. The UNSW Strategic Intent provides a framework of guiding principles, objectives and strategies to achieve UNSW’s aspiration to continuously improve its position as a leading research intensive university in the Asia-Pacific region, focusing on contemporary and social issues through defined strengths in professional, scientific and technological fields.

Review of Operations

The consolidated group reports an accounting result of $105m. These results incorporate an accounting result of $102m for UNSW.

CONSOLIDATED UNIVERSITY

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Total revenue and income 1,132,948 1,095,045 1,058,830 1,031,218

Employee costs (650,033) (634,620) (607,884) (594,537)

Other expenses (453,734) (449,144) (422,838) (415,056)

Operating result 29,181 11,281 28,108 21,625

Restricted surplus 24,775 30,996 24,007 30,548

Investment earnings 26,085 27,293 24,058 27,293

Income for capital projects 25,722 24,783 25,722 24,783

Impairment of assets1 (939) (11,079) (90) (9,993)

Forgiveness of loan2 - - - (5,815)

Gain on sale of assets3 - 2,984 - 2,984

Revaluation of ATPi4 - 4,167 - -

Accounting result 104,824 90,425 101,805 91,425

1 Includes impairment on all assets except for student receivables and sundry debtors.2 Forgiveness of intercompany loan to NewSouth Innovations Pty Ltd. 3 Includes gain on sale of 78-82 Bay St, Botany, NSW properties.4 Revaluation of investment in Australian Technology Park Innovation Pty Ltd (ATPi).



UNSW’s underlying financial performance for 2013 has increased by $6m compared to 2012. The operating result was primarily affected by an increase in teaching revenues.

Total assets of the consolidated group in 2013 increased by $81m to $3.6b while net assets increased by $223m to $2.1b in 2013. This is mainly attributed to an increase in fixed assets and intangibles.

The consolidated group’s cash balances including cash and cash equivalents and current portion of held-to-maturity investments decreased by $77m from $217m in 2012 to $140m in 2013. The cash balances held by the consolidated group forms part of UNSW’s working capital and is used to settle current liabilities, capital commitments for major capital works, research grants held as income in advance, and various other commitments due within one year.

Significant Changes in the State of Affairs

There were no significant changes in the State of Affairs of UNSW or any of its subsidiaries during the year and up to the date of this report.

Matters Subsequent to the End of the Financial Year

Subsequent to 31 December 2013, UNSW has appointed financiers to provide committed bi-lateral revolving bank loan facilities totalling $250 million to be drawn down as required. The loan facilities are currently being documented and will be settled shortly.

Likely Developments and Expected Results of Operations

The likely developments in the operations and the expected results of those operations of the consolidated entity constituted by UNSW and the entities it controls from time to time are included in this report.

Environmental regulations

The significant environmental regulations to which UNSW is subject are as follows:

- Environment Protection and Biodiversity Conservation Act 1999 (Cth)

- Environmental Planning and Assessment Act 1979 (NSW)

- Environmentally Hazardous Chemicals Act 1985 (NSW)

- Heritage Act 1977 (NSW)

- National Greenhouse and Energy Reporting Act 2007 (Cth)

- Native Vegetation Act 2003 (NSW)

- Noxious Weeds Act 1993 (NSW)

- Ozone Protection Act 1989 (NSW)

- Protection of the Environment Operations (POEO) Act 1997 (NSW)

- Threatened Species Conservation Act 1995 (NSW)

- Waste Avoidance and Resource Recovery Act 2001 (NSW)

- Water Management Act 2000 (NSW)

- Water Management Amendment Act 2010 (NSW).

While UNSW has not been issued with any environmental licenses many of the activities undertaken under our operational control do involve environmental risks. In particular research activities, especially those involving hazardous materials, as well as grounds maintenance and construction activities, involve risks that could result in material environmental harm. Appropriate and proportionate emphasis is given to identifying and minimising these risks within UNSW’s environmental management system. UNSW’s environmental management system is audited on a regular basis.




Insurance of officers

UNSW obtains commercial insurance to indemnify persons who serve on UNSW Boards and Committees and on Boards and Committees of all entities in the Group. Coverage also extends to UNSW appointees who serve on the Boards of other entities, as designated representatives of UNSW and who are not otherwise indemnified. This insurance provides funds to defend each officer and Board appointee of UNSW against claims from third parties which result from actual or alleged wrong acts, as permitted by law.

The premium for this commercial insurance is paid for by UNSW, and UNSW self-insures all claims expenses which fall below the policy deductible or for liabilities which are excluded or not covered by the commercial insurance contract.

Proceedings on behalf of The University of New South Wales

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

This report is made in accordance with a resolution of the members of UNSW.

Mr David M. Gonski AC Chancellor, 7 April 2014


Statement by Members of Council

Pursuant to Section 41C (1B), (1C) and (1D) of the Public Finance and Audit Act 1983 (as amended) and clause 7 of the Public Finance and Audit Regulation 2010, we state that:

1. The financial report exhibits a true and fair view of the financial position as at 31 December 2013 and the financial performance for the year then ended for the University and Controlled Entities; and

2. The financial report for the year ended 31 December 2013 has been prepared in accordance with:

(a) the provisions of the Public Finance and Audit Act 1983, Public Finance and Audit Act Regulation 2010 and the Commonwealth Department of Education (previously Department of Industry, Innovation, Science, Research and Tertiary Education) Financial Statement Guidelines for Australian Higher Education Providers for the 2013 Reporting Period; and

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

3. As at the date of the statement, we are not aware of any circumstances that would render any particulars included in the financial report to be misleading or inaccurate.

As required by the Financial Statement Guidelines for Australian Higher Education Providers for the 2013 Reporting Period issued by the Commonwealth Department of Education, we also certify to the best of our knowledge and belief that all the Australian Government Financial Assistance expended by the University during the year ended 31 December 2013 was expended for the purposes for which it was intended and that The University of New South Wales has complied with applicable legislation, contracts, agreements and program guidelines in making that expenditure.

Signed in accordance with a resolution of Council.

Professor Frederick G. Hilmer AO Mr David M. Gonski AC President and Vice-Chancellor Chancellor

7 April 2014


Independent Auditor’s Report


Independent Auditor’s Report


The University of New South Wales

Income statement

For the Year Ended 31 December 2013

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Revenue from continuing operations

Australian Government financial assistance

Australian Government grants 2 697,866 698,225 697,857 698,225

HELP - Australian Government payments 2 184,809 154,313 184,809 154,313

State and Local Government financialassistance 3 33,694 28,672 33,416 28,672

HECS-HELP - Student payments 31,519 32,077 31,519 32,077

Fees and charges 4 509,694 488,442 435,379 422,480

Investment revenue 5 45,286 39,937 41,984 38,950

Royalties, trademarks and licences 5,962 7,074 4,025 5,694

Consultancy and contracts 6 62,193 57,628 56,217 50,981

Other revenue 7 33,522 20,464 45,696 31,509

Total revenue from continuing operations 1,604,545 1,526,832 1,530,902 1,462,901

Gains on disposal of assets 41 3,256 9 3,253

Investments accounted for using the equitymethod 17 (157) 190 - -

Other income 7 15,611 17,400 12,215 13,081

Total other income from continuingoperations 15,495 20,846 12,224 16,334

Total revenue and income fromcontinuing operations 1,620,040 1,547,678 1,543,126 1,479,235

Expenses from continuing operations

Employee related expenses 8 872,143 833,622 829,994 793,539

Depreciation and amortisation 9 122,543 114,960 121,271 113,556

Repairs and maintenance 10 31,350 25,964 30,186 25,085

Borrowing costs 11 3,314 3,901 3,314 3,901

Impairment of assets 12 1,821 11,553 739 10,552

Loss on disposal of assets 739 1,362 461 1,159

Deferred employment benefits forsuperannuation 8 2,800 2,746 2,800 2,746

Other expenses 13 480,461 463,087 452,556 437,272

Total expenses from continuingoperations 1,515,171 1,457,195 1,441,321 1,387,810

Operating result before income tax 104,869 90,483 101,805 91,425

Income tax expense 14 (45) (58) - -

Operating result from continuingoperations after income tax for the periodattributable to members of The Universityof New South Wales 104,824 90,425 101,805 91,425

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

2

UNSW Council 7 April 2014

Agenda Item 8.1 2013 Financial ReportIncome statementFor the year ended 31 December 2013


Statement of comprehensive incomeFor the year ended 31 December 2013


Statement of comprehensive income


Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Operating result after income tax forthe period 104,824 90,425 101,805 91,425

Items that may be reclassified to profitor loss

Net change in revaluation surplus ofavailable-for-sale financial assets 27(a) 47,287 36,556 48,382 36,028

Exchange differences on translation offoreign operations 27(a) 124 2 - -

Total 47,411 36,558 48,382 36,028

Items that will not be reclassified toprofit or loss

Net gains on revaluation of property,plant and equipment 27(a) 49,811 48,116 49,811 48,116

Net actuarial gains/(losses) on definedbenefit superannuation plans 27(b) 20,548 (3,043) 20,072 (2,883)

Total 70,359 45,073 69,883 45,233

Total other comprehensive income forthe year, net of tax 117,770 81,631 118,265 81,261

Total comprehensive income for theyear 222,594 172,056 220,070 172,686

Total comprehensive incomeattributable to members of TheUniversity of New South Wales 222,594 172,056 220,070 172,686

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

3


Agenda Item 8.1


Statement of financial positionAs at 31 December 2013


Statement of financial position

31 December 2013

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Assets

Current assets

Cash and cash equivalents 15 97,080 73,306 54,967 41,177

Receivables 16 77,963 76,080 83,894 82,159

Inventories 1,083 1,829 - -

Other financial assets 18 43,292 143,760 43,292 143,760

Total current assets 219,418 294,975 182,153 267,096

Non-current assets

Receivables 16 945,032 1,049,898 944,973 1,049,868

Investments accounted for using theequity method 17 4,587 4,744 - -

Other financial assets 18 522,377 436,442 510,096 426,774

Property, plant and equipment 19 1,902,228 1,750,089 1,898,687 1,746,387

Intangible assets 21 50,383 27,065 47,388 24,736

Total non-current assets 3,424,607 3,268,238 3,401,144 3,247,765

Total assets 3,644,025 3,563,213 3,583,297 3,514,861

Liabilities

Current liabilities

Trade and other payables 22 92,110 96,116 83,256 88,514

Borrowings 23 3,980 3,902 3,980 3,902

Provisions 24 193,710 188,397 187,746 182,857

Other financial liabilities 25 376 359 376 359

Other liabilities 26 75,990 83,909 50,611 68,226

Total current liabilities 366,166 372,683 325,969 343,858

Non-current liabilities

Borrowings 23 53,216 57,096 53,216 57,096

Provisions 24 1,065,643 1,194,326 1,063,675 1,190,838

Other financial liabilities 25 96 - 96 -

Other liabilities 26 28,924 31,722 28,924 31,722

Total non-current liabilities 1,147,879 1,283,144 1,145,911 1,279,656

Total liabilities 1,514,045 1,655,827 1,471,880 1,623,514

Net assets 2,129,980 1,907,386 2,111,417 1,891,347

Equity

Reserves 27 653,969 556,747 645,097 546,904

Retained earnings 27 1,476,011 1,350,639 1,466,320 1,344,443

Total equity 2,129,980 1,907,386 2,111,417 1,891,347

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

4


Agenda Item 8.1


Statement of changes in equityFor the year ended 31 December 2013


Statement of changes in equity


Parent

RetainedEarnings

$'000

Reserves

$'000

Total

$'000

Balance at 1 January 2012 1,254,076 464,585 1,718,661

Operating result for the period 91,425 - 91,425

Net gains on revaluation of property, plant and equipment - 48,116 48,116

Net change in revaluation surplus of available-for-sale financial assets - 36,028 36,028

Net actuarial losses on defined benefit superannuation plans (2,883) - (2,883)

Transfers from reserves 1,825 (1,825) -

Total comprehensive income 90,367 82,319 172,686

Balance at 31 December 2012 1,344,443 546,904 1,891,347





Net actuarial gains on defined benefit superannuation plans 20,072 - 20,072



Consolidated

RetainedEarnings

$'000

Reserves

$'000

Total

$'000





Exchange differences on translation of foreign operations - 2 2

Net actuarial losses on defined benefit superannuation plans (3,043) - (3,043)

Transfers from reserves 1,825 (1,825) -







Exchange differences on translation of foreign operations - 124 124

Net actuarial gains on defined benefit superannuation plans 20,548 - 20,548



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

5


Agenda Item 8.1


Statement of cash flowsFor the year ended 31 December 2013


Statement of cash flows


Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Cash flows from operating activities:

Australian Government grants 2(h) 883,700 885,278 883,691 885,278

OS-HELP (net) 2(h) (304) (60) (304) (60)

State Government grants 36,629 42,374 36,323 42,374

HECS-HELP - Student payments 30,943 30,940 30,943 30,940

Receipts from student fees and othercustomers 639,403 587,341 553,011 510,049

Payments to suppliers and employees (1,454,115) (1,378,486) (1,375,761) (1,303,064)

Contributions to related parties - - (5,600) (5,350)

Investment income received 27,405 24,417 27,049 24,232

Interest received 11,847 19,531 10,847 18,207

Interest and other costs of finance paid (3,351) (3,727) (3,351) (3,727)

GST recovered 35,307 28,767 35,722 29,204

Income taxes paid (45) (54) - -

Net cash provided by operating activities 34 207,419 236,321 192,570 228,083

Cash flows from investing activities:

Proceeds from sale of property, plant andequipment 153 7,791 101 7,774

Proceeds from sale of available-for-saleand other financial assets 307,991 371,394 308,671 371,477

Payments for property, plant andequipment (223,407) (241,744) (222,624) (241,071)

Payments for available-for-sale and otherfinancial assets (238,056) (373,243) (236,982) (372,864)

Payment for intangible assets (26,561) (18,162) (24,181) (16,451)

Net cash used by investing activities (179,880) (253,964) (175,015) (251,135)

Cash flows from financing activities:

Repayment of borrowings (3,765) (3,659) (3,765) (3,659)

Net cash used by financing activities (3,765) (3,659) (3,765) (3,659)

Net increase/(decrease) in cash and cashequivalents held 23,774 (21,302) 13,790 (26,711)

Cash and cash equivalents at thebeginning of the financial year 73,306 94,608 41,177 67,888

Cash and cash equivalents at the endof the financial year 15 97,080 73,306 54,967 41,177

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

6


Agenda Item 8.1


Notes to the financial statements 31 December 2013

Note Contents of the notes to the financial statements Page

1 Summary of significant accounting policies 18 Income2 Australian Government financial assistance including Australian Government loan programs (HELP) 313 State and Local Government financial assistance 334 Fees and charges 345 Investment revenue 346 Consultancy and contracts 357 Other revenue and income 35 Expenses8 Employee related expenses 369 Depreciation and amortisation 3710 Repairs and maintenance 3711 Borrowing costs 3712 Impairment of assets 3813 Other expenses 3814 Income tax 39 Assets15 Cash and cash equivalents 3916 Receivables 4017 Investments accounted for using the equity method 4318 Other financial assets 4419 Property, plant and equipment 4720 Public Private Partnerships (PPP) 5221 Intangible assets 53 Liabilities22 Trade and other payables 5423 Borrowings 5524 Provisions 5725 Other financial liabilities 5826 Other liabilities 58 Equity 27 Reserves and retained earnings 59 Disclosure Notes28 Key management personnel disclosures 6129 Remuneration of auditors 6430 Contingencies 64 31 Commitments 6532 Subsidiaries 6633 Joint venture operations 6734 Reconciliation of operating result after income tax to net cash flows from operating activities 6935 Financial risk management 7036 Fair value measurements 7637 Defined benefit plans 8238 Events occurring after the balance sheet date 9139 Acquittal of Australian Government financial assistance 92


Notes to the financial statements31 December 2013The University of New South Wales

Notes to the financial statements


1 Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the financial reports are set out below. These policieshave been consistently applied to all the years presented, unless otherwise stated. The financial report includesseparate financial statements for UNSW Australia (The University of New South Wales), referred to as "UNSW", anindividual entity (the "parent entity") and the consolidated entity (the "Group") consisting of the parent entity and itscontrolled entities.

(a) Basis of preparation

This general purpose financial report has been prepared on an accrual basis in accordance with therequirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Act Regulations 2010,Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting StandardsBoard, Australian Accounting Interpretations and the Higher Education Support Act 2003 (Financial StatementGuidelines) and other State/Australian Government legislative requirements.

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

Date of authorisation for issueThe financial statements were authorised for issue on 7 April 2014 by the Council.

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

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

(i) Superannuation liability - Deferred Government ReceivablesCertain superannuation liabilities are expected to be fully funded by the Federal Government as evidenced bythe Higher Education Funding Act 1988 and subsequent amended legislation. Accordingly the unfundedliabilities have been recognised in the statement of financial position under provisions with a correspondingasset recognised under receivables. The recognition of both the asset and liability consequently does not affectthe year end net asset position and operating result of UNSW and its controlled entities for those schemes,except as otherwise disclosed.

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

The Australian Government and the State Government are reviewing the current arrangements relating tosuperannuation payments in respect of current and past members of unfunded (or partly funded) Statesuperannuation schemes.

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

The Group assesses the appropriateness of these provisions at each reporting date by evaluating conditionsspecific to the Group. The calculation of these provisions requires the use of various assumptions, such asexpected rate of return on the funds and superannuation entitlements, and is based on a range of possibleoutcomes.

(iii) Lease term in the lease agreement with the Children's Cancer Institute Australia for Medical Research(CCIA) for part of the Lowy Cancer Research CentreThe contracted lease term in the operating lease agreement with the lessee is for 35 years. However, the actuallease term is dependent on specific terms and conditions, which draw reference to the lessee’s intention toexercise certain options available in the agreement. Consequently, the $35 million received during 2009 wasrecognised as prepaid lease income. The prepaid lease income is amortised in-line with the estimated leaseterm. Management has re-assessed the probability of the lessee exercising the options and has estimated therevised total lease term as being approximately 24 years (2012: approximately nine years).

8


Agenda Item 8.1


Notes to the financial statements 31 December 2013The University of New South Wales



1 Summary of significant accounting policies (continued)

(a) Basis of preparation (continued)

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

(b) Basis of consolidation

The consolidated financial statements incorporate the assets and liabilities of all entities controlled by theparent entity as at 31 December 2013 and the results of all controlled entities for the year then ended.

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

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

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

All inter-entity transactions, balances and unrealised gains on transactions between Group companies areeliminated in full, on consolidation. Unrealised losses are also eliminated unless the transaction providesevidence of the impairment of the asset transferred. Accounting policies of controlled entities have beenchanged where necessary to ensure consistency with the policies adopted by the Group.

(c) Associates

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

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

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

(d) Joint ventures and Cooperative Research Centres

The Group has interests in Cooperative Research Centres (CRC) which requires the Group to contribute incash and in-kind based on the proportion of the interest in the CRC.

Contributions in cash and in-kind are expensed and included in the income statement. The Group's share ofcontributions are not included in the statement of financial position. In the event that a CRC's research results ina move to commercialisation, a separate legal entity is established and the Group's share of the new entity istreated as an available-for-sale financial asset, joint venture, associate or controlled entity as appropriate.

9


Agenda Item 8.1






(e) Public Private Partnerships (PPP)

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

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

(f) Foreign currency translation

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

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

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

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

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

at the date of that statement of financial position;

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

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

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

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

income.

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

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

(g) Revenue recognition

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

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

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

10


Agenda Item 8.1 Notes to the financial statements31 December 2013






(g) Revenue recognition (continued)

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

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

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

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

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

(h) Income tax

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

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

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

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

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

(i) Operating leases

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

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

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

11


Agenda Item 8.1 Notes to the financial statements 31 December 2013






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

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

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

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

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

(k) Impairment of assets

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

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

(l) Cash and cash equivalents

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

(m) Receivables

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

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

12








(m) Receivables (continued)

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

(n) Inventories

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

(o) Investments and other financial assets

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

(i) Financial assets at fair value through income statementThis comprises financial assets at fair value through the income statement on initial recognition. A financialasset is classified in this category if acquired principally for the purpose of selling in the short term or if sodesignated by management. The policy of the Group is to designate a financial asset if the possibility it will besold in the short-term exists and if the asset is subject to frequent changes in fair value. Assets in this categoryare classified as current assets.

(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are notquoted in an active market. They arise when the Group provides money, goods or services directly to a debtorwith no intention of selling the receivable. They are included in current assets, except for those with maturitiesgreater than 12 months after the balance sheet date which are classified as non-current assets. Loans andreceivables are included in receivables in the statement of financial position (note 16).

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturities that the Group's management has the positive intention and ability to hold to maturity. If the Groupwere to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would bereclassified as available-for-sale. Held-to-maturity investments are included in non-current assets, except forthose with maturities less than 12 months from the reporting date, which are classified as current assets. Held-to-maturity investments are carried at amortised cost using the effective interest method.

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

Purchases and sales of investments are recognised on the trade date, being the date on which the Groupcommits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costsfor all financial assets not carried at fair value through income statement. Financial assets are derecognisedwhen the rights to receive cash flows from the financial assets have expired or have been transferred, and theGroup has transferred substantially all the risks and rewards of ownership.

13








(o) Investments and other financial assets (continued)

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

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

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

(p) Derivatives

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

(q) Fair value measurement

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

(r) Property, plant and equipment

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

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

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

14








(r) Property, plant and equipment (continued)

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

ControlledEntities Parent

Campus buildings and off-campus properties 2.50% to 6.67% 2.5% to 6.67%

Computer equipment 20% to 33% 33%

Other equipment 10% 10% to 20%

Motor vehicles 12% to 30% 12%

Library collections 10% 10%

Leasehold improvements 2.5% to 20% 2.5% to 20%

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

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

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

(s) Intangible assets

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

Expenditure on development activities, being the application of research findings or other knowledge to a planor design for the production of new or substantially improved products or services before the start ofcommercial production or use, is capitalised if the product or service is technically and commercially feasible;adequate resources are available to complete development and if it is sufficiently certain that the futureeconomic benefits to the Group will cover not only the usual operational and administrative costs but also thedevelopment costs themselves. There are also several other criteria relating to the development projects andthe processes or products being developed, all of which have to be met to justify asset recognition. Theexpenditure capitalised comprises all directly attributable costs, including costs of materials, services, directlabour, and an appropriate proportion of overheads. Other development expenditure is recognised in theincome statement as an expense as incurred. Capitalised development expenditure is stated at cost lessaccumulated amortisation. Amortisation is calculated using the straight line method to allocate the cost over theperiod of the expected benefit, which will vary depending on useful life, usually 20 years.

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

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

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

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

15








(t) Trade and other payables

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

(u) Borrowings

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

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

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

(v) Borrowing costs

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

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

(w) Provisions

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

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

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

(x) Employee benefits

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

(ii) Other long-term obligationsThe liability for other long-term employee benefits such as annual leave and long service leave is recognised incurrent provisions for employee benefits if it is not expected to be settled wholly before twelve months after theend of the reporting period. It is measured at the present value of expected future payments to be made inrespect of services provided by employees up to the reporting date using the projected unit credit method.Consideration is given to the expected future wage and salary levels, experience of employee departures andperiods of service. Expected future payments are discounted using market yields at the reporting date onnational government bonds with terms to maturity and currency that match, as closely as possible, theestimated future cash outflows.

16








(x) Employee benefits (continued)

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

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

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

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

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

Past service costs are recognised immediately in the income statement.

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

(iv) Unfunded superannuationThe unfunded liabilities recorded in the statement of financial position under provisions have been determinedby independent actuaries relating to the defined benefit superannuation plans: State Superannuation Scheme(SSS), State Authorities Superannuation Scheme (SASS), State Authorities Non-Contributory SuperannuationScheme (SANCS) and the UNSW Professorial Superannuation Fund. Information relating to these schemes isset out in note 37 and note 1(a)(i).

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

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

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

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

17








(x) Employee benefits (continued)

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

(vii) Changes in accounting policyThe adoption of the revised AASB 119 resulted in two changes to the Group's accounting policy whichsignificantly affected items recognised in the financial statements.

The amount of the defined benefit expense that would have been recognised in profit and loss under therevised standard is higher than the amount that would have been recognised previously, with an equal andopposite change to the amount recognised as remeasurement in comprehensive income. This is the result ofthe replacement of the expected return on plan assets and separate interest amounts with a net interestamount. The net impact on total comprehensive income is nil and accordingly there is no impact on thestatement of financial position for this change.

As the revised standard must be adopted retrospectively, adjustments to the defined benefit obligations havebeen recognised in the income statement, statement of comprehensive income and statement of financialposition, with comparative period information being restated accordingly. The adjustments have been applied tothe period ended 31 December 2012 only, as it was impracticable to determine the adjustments to earlierperiods as the information was not available. The impact on the individual line items in the financial statementsis shown below.

The revised standard has also changed the accounting for annual leave. As the Group does not expect theannual leave obligation to be settled wholly within 12 months from the end of the reporting period, it is classifiedas long-term benefits in its entirety. This has changed the measurement of the obligation. It is now measuredon a discounted basis. This has not had a material impact on the value of the obligation as the majority of theleave is still expected to be taken within a short timeframe after the end of the reporting period.

Prior year restatement

2012(Previously

stated)

$'000

Adjustment

$'000

2012(Restated)

$'000

Income statement (extract)

Employee related expenses 832,151 1,471 833,622

Deferred employment benefits for superannuation 1,856 890 2,746

Profit for the period 92,786 (2,361) 90,425

Statement of comprehensive income (extract)

Net actuarial losses on defined benefit superannuation plans 4,869 (1,826) 3,043

Other comprehensive income 79,805 1,826 81,631

Total comprehensive income 172,591 (535) 172,056

Statement of financial position (extract)

Current liabilities

Provisions 187,862 535 188,397

Net assets 1,907,921 (535) 1,907,386

Retained earnings 1,351,174 (535) 1,350,639

Total equity 1,907,921 (535) 1,907,386

18








(y) Goods and Services Tax (GST)

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

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

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

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

(z) Key management personnel

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

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

(i) StandardsName Application Date

AASB 9 Financial Instruments Annual reporting periods beginningon or after 1 January 2015

AASB 10 Consolidated Financial Statements Annual reporting periods beginningon or after 1 January 20131

AASB 11 Joint Arrangements Annual reporting periods beginningon or after 1 January 20131

AASB12 Disclosure of Interests in Other Entities Annual reporting periods beginningon or after 1 January 20131

AASB 127 Separate Financial Statements Annual reporting periods beginningon or after 1 January 20131

AASB 128 Investments in Associates and Joint Ventures Annual reporting periods beginningon or after 1 January 20131

1 The effective date of these standards has been deferred to 01 January 2014 for not-for profit entities.

Following an assessment of applicable new accounting standards with an effective date beginning on or after 1January 2013, and an initial review of the accounting standards with an effective date beginning on or after 1January 2014 and 1 January 2015, UNSW management is of the opinion that there will be no materialimplications for the operations, financial or otherwise for UNSW, apart from AASB 9 Financial Instruments.

With the adoption of AASB 9, this may increase volatility in the income statement, primarily as a result ofchanges in the available-for-sale financial assets recognition criteria.

(ii) InterpretationsName Application date

AASB 2012-3 Amendments to Australian AccountingStandards - Offsetting Financial Assets andFinancial Liabilities (Amendments to AASB132)

Annual reporting periods beginningon or after 1 January 2014

19








(ab) Rounding of amounts

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

(ac) Comparative amounts

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

20







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

(a) Commonwealth Grant Scheme and Other Grants

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Commonwealth Grant Scheme 256,281 242,889 256,281 242,889

Indigenous Support Program 902 878 902 878

Partnership and ParticipationProgram 6,189 4,498 6,189 4,498

Disability Support Program 293 189 293 189

Transitional Cost Program - 252 - 252

Promotion of Excellence inLearning and Teaching 387 289 387 289

Reward Funding 1,205 1,200 1,205 1,200

Total Commonwealth GrantScheme and Other Grants 39(a) 265,257 250,195 265,257 250,195

(b) Higher Education Loan Programs

HECS-HELP 146,427 119,934 146,427 119,934

FEE-HELP 36,168 32,658 36,168 32,658

SA-HELP 2,214 1,721 2,214 1,721

Total Higher Education LoanPrograms 39(b) 184,809 154,313 184,809 154,313

(c) Scholarships

Australian Postgraduate Awards 22,890 20,847 22,890 20,847

International PostgraduateResearch Scholarships 1,933 1,858 1,933 1,858

Commonwealth Education CostScholarships - 3 - 3

Commonwealth AccommodationScholarships - 78 - 78

Indigenous Access Scholarships - 18 - 18

Total Scholarships 39(c) 24,823 22,804 24,823 22,804

(d) Education Research

Joint Research EngagementProgram 30,197 31,481 30,197 31,481

Research Training Scheme 62,198 59,155 62,198 59,155

Research Infrastructure BlockGrants 19,907 22,880 19,907 22,880

Sustainable Research Excellencein Universities 15,148 16,512 15,148 16,512

Total Education ResearchGrants 39(d) 127,450 130,028 127,450 130,028

21







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

(e) Other Capital FundingConsolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Education Investment Fund 7,450 17,827 7,450 17,827

Total Other Capital Funding 39(e) 7,450 17,827 7,450 17,827

(f) Australian Research Council (ARC)

(i) Discovery

Projects 35,461 33,641 35,461 33,641

Fellowships 15,599 17,805 15,599 17,805

Indigenous ResearchersDevelopment 744 447 744 447

Total Discovery 39(f)(i) 51,804 51,893 51,804 51,893

(ii) Linkages

Infrastructure 3,725 3,218 3,725 3,218

Projects 13,540 14,493 13,540 14,493

Total Linkages 39(f)(ii) 17,265 17,711 17,265 17,711

(iii) Networks and Centres

Centres 4,027 2,964 4,027 2,964

Total Networks and Centres 39(f)(iii) 4,027 2,964 4,027 2,964

Total ARC 73,096 72,568 73,096 72,568

(g) Other Australian Government financial assistance

Non-capital

Health and Ageing 82,893 80,124 82,893 80,124

Department of Defence 58,046 55,641 58,046 55,641

AUSAID 12,018 10,972 12,018 10,972

Various Other AustralianGovernment 46,084 50,566 46,075 50,566

Total 199,041 197,303 199,032 197,303

Capital

Health and Ageing - 5,000 - 5,000

Various Other AustralianGovernment 749 2,500 749 2,500

Total 749 7,500 749 7,500

Total Other AustralianGovernment financialassistance 199,790 204,803 199,781 204,803

Total Australian Governmentfinancial assistance 882,675 852,538 882,666 852,538

22







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

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Reconciliation

Australian Government Grants 697,866 698,225 697,857 698,225

HECS-HELP 146,427 119,934 146,427 119,934

FEE-HELP 36,168 32,658 36,168 32,658

SA-HELP 2,214 1,721 2,214 1,721

Total Australian GovernmentFinancial Assistance 882,675 852,538 882,666 852,538

(h) Australian Government Grants received - cash basis

CGS and Other Education Grants 260,402 255,380 260,402 255,380

Higher Education Loan Programs 180,213 154,746 180,213 154,746

Scholarships 23,681 23,592 23,681 23,592

Education research 127,450 130,028 127,450 130,028

Other Capital Funding 7,950 18,200 7,950 18,200

ARC grants - Discovery 52,942 53,421 52,942 53,421

ARC grants - Linkages 17,584 18,704 17,584 18,704

ARC grants - Networks andCentres 9,201 8,966 9,201 8,966

Other Australian GovernmentGrants 204,277 222,241 204,268 222,241

Total Australian GovernmentGrants received - cash basis 883,700 885,278 883,691 885,278

OS-HELP (Net) 39(g) (304) (60) (304) (60)

Total Australian Governmentfunding received - cash basis 883,396 885,218 883,387 885,218

3 State and Local Government financial assistance

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Non-capital

Research financial assistance - State 30,798 27,365 30,520 27,365

Research financial assistance - Local 392 146 392 146

Other financial assistance 937 1,161 937 1,161

Total non-capital 32,127 28,672 31,849 28,672

Capital

Other financial assistance - State 1,567 - 1,567 -

Total capital 1,567 - 1,567 -

Total State and Local GovernmentFinancial Assistance 33,694 28,672 33,416 28,672

23







4 Fees and chargesConsolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Course fees and charges

Fee-paying overseas students 344,790 327,523 303,351 294,189

Continuing education 15,488 15,766 15,491 15,781

Fee-paying domestic postgraduatestudents 25,096 24,673 24,011 23,720

Fee-paying domestic undergraduatestudents 4,453 6,495 4,453 6,495

Total course fees and charges 389,827 374,457 347,306 340,185

Other non-course fees andcharges

Educational measurement andtesting 21,011 20,092 5,074 4,396

Rental charges 13,441 13,348 16,342 15,750

Student accommodation 18,400 13,270 13,949 8,910

Publication sales 656 666 1,028 1,018

Miscellaneous sales 21,415 20,940 8,393 7,065

Service fees 16,396 19,034 14,040 17,667

Cost recoveries1 23,821 22,029 24,520 22,883

Student services and amenities fee 39(h) 4,727 4,606 4,727 4,606

Total other fees and charges 119,867 113,985 88,073 82,295

Total fees and charges 509,694 488,442 435,379 422,480

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

5 Investment revenueConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Interest 10,036 17,624 9,044 16,769

Dividends 27,406 22,169 27,049 21,885

Net gain on investments 7,844 144 5,891 296

Total investment revenue 45,286 39,937 41,984 38,950

24







6 Consultancy and contracts

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Consultancy 10,229 10,753 4,576 5,044

Contract research 51,964 46,875 51,641 45,937

Total consultancy and contracts 62,193 57,628 56,217 50,981

7 Other revenue and income

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Other revenue

Donations, bequests andcontributions1 22,187 11,636 34,362 22,681

Scholarships and prizes 6,487 6,706 6,487 6,706

Other external grants 4,848 2,122 4,847 2,122

Total other revenue 33,522 20,464 45,696 31,509

Other income

Subscription 132 138 132 138

Sponsorship 6,405 6,541 6,405 6,543

Miscellaneous income2 6,408 8,472 3,012 4,151

Refund from ATO franking credits 2,666 2,249 2,666 2,249

Total other income 15,611 17,400 12,215 13,081

Total other revenue and income 49,133 37,864 57,911 44,590

1Donations, bequests and contributions for the year ended 31 December 2013 to the Parent include contributions of $11,695,000 fromUNSW Global Pty Ltd (2012: $11,030,000).2$4,167,000 for the year ended 31 December 2012 relates to the revaluation of Australian Technology Park Innovation Pty Ltd. Referto note 17.

25







8 Employee related expensesConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Academic1

Salaries 346,789 323,398 339,090 316,113

Contributions to superannuation andpension schemes:

Emerging cost 6,437 6,963 6,437 6,963

Funded 47,835 43,655 46,758 42,692

Provision for future emerging costs (2,304) (2,534) (2,304) (2,534)

Payroll tax 21,923 20,469 21,254 19,866

Worker's compensation 397 532 291 435

Long service leave expense 8,562 15,609 8,145 15,179

Annual leave 31,802 30,253 30,998 29,400

Other 2,303 2,301 2,303 2,301

Total academic 463,744 440,646 452,972 430,415

Non-academic2

Salaries 306,999 298,259 281,988 275,486

Contributions to superannuation andpension schemes:

Emerging cost 1,842 1,993 1,842 1,993

Funded 40,080 37,828 37,865 35,732

Provisions for future emerging costs 309 (9,007) 309 (9,007)

Payroll tax 19,001 19,232 17,538 16,917

Worker's compensation 472 578 253 375

Long service leave expense 7,102 13,191 6,628 12,516

Annual leave 26,505 25,331 25,008 23,938

Other 6,089 5,571 5,591 5,174

Total non-academic 408,399 392,976 377,022 363,124

Total employee related expenses 872,143 833,622 829,994 793,539

Deferred superannuation expense 2,800 2,746 2,800 2,746

Total employee related expenses,including deferred employment benefitsfor superannuation 874,943 836,368 832,794 796,285

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

26







9 Depreciation and amortisationConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Depreciation

Campus buildings and off-campusproperties 87,699 82,016 87,281 81,544

Computer equipment 9,981 11,247 9,608 10,725

Motor vehicles 122 90 73 47

Leasehold improvements 1,407 1,623 1,342 1,580

Other equipment 20,874 18,873 20,848 18,847

Library collections 590 696 590 696

Total depreciation 120,673 114,545 119,742 113,439

Amortisation

Computer software 1,492 193 1,325 66

Patents 174 171 - -

Digitalised library research collections 204 51 204 51

Total amortisation 1,870 415 1,529 117

Total depreciation and amortisation 122,543 114,960 121,271 113,556

10 Repairs and maintenanceConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Service contracts 12,496 11,135 11,937 10,949

Buildings 14,246 11,574 13,653 10,900

Other equipment 4,608 3,255 4,596 3,236

Total repairs and maintenance 31,350 25,964 30,186 25,085

11 Borrowing costs

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Interest expense 3,314 3,901 3,314 3,901

Total borrowing costs 3,314 3,901 3,314 3,901

27







12 Impairment of assetsConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Student debtors 685 852 685 852

Sundry debtors 197 (282) (36) (293)

Loans and other receivables - 9,500 250 9,500

Available-for-sale and other financial assets - 599 - 695

Property, plant and equipment (160) (202) (160) (202)

Intangible assets 1,099 1,086 - -

Total impairment of assets 1,821 11,553 739 10,552

13 Other expensesConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Scholarships, grants and prizes 106,048 100,205 112,176 100,715

Non-capitalised equipment 45,092 41,298 44,949 41,195

Advertising, marketing and promotionalexpenses 14,864 14,124 12,590 12,326

Audit fees 989 1,090 490 461

Consumables 34,833 33,850 33,310 32,409

Travel and entertainment 43,424 41,106 42,329 40,115

Commission to agents 18,328 15,616 13,156 11,859

Contract services (including consultants) 133,522 124,199 128,535 119,464

Cost of books sold 6,457 7,255 - -

Energy, utilities, postage and telephone 24,209 23,232 23,394 22,567

Fees, charges and insurance 25,331 23,424 24,583 22,655

Operating lease expenses 14,366 14,378 9,143 9,146

Other operating expenses1 12,998 23,310 7,901 24,360

Total other expenses 480,461 463,087 452,556 437,272

1 Other operating expenses for the year ended 31 December 2012 includes $10,043,000 relating to a retail buyout agreement withArc@ UNSW Limited, and $5,815,000 relating to the forgiveness of loan between UNSW and NewSouth Innovations Pty Limited.

28







14 Income tax

(a) Income tax expenseConsolidated

2013

$'000

2012

$'000

Current tax 45 58

Income tax expense is attributable:

- Operating result from continuing operations 45 58

Aggregate income tax expense 45 58

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

Operating results before income tax 104,869 90,483

Tax at the Australian tax rate of 30% (2012: 30%) 31,461 27,145

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

Net income of tax exempt entities (31,392) (27,123)

Difference in overseas tax rates (13) (24)

Adjustment for current tax of prior periods (3) 25

Current year temporary difference not recognised (8) 35

Total income tax expense 45 58

15 Cash and cash equivalentsConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Cash at bank and on hand 70,725 59,374 54,612 40,845

Deposits at call and investments originallymaturing within three months 26,355 13,932 355 332

Total cash and cash equivalents 97,080 73,306 54,967 41,177

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

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

(b) Cash at bank

The average interest rate was 2.83% (2012: 3.39%) per annum.

(c) Deposits at call

The average interest rate was 4.16% (2012: 5.04%) per annum.

29







16 ReceivablesConsolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current

Sundry debtors 34,534 37,364 29,342 32,519

Less: Provision for impaired receivables (1,003) (1,129) (566) (659)

33,531 36,235 28,776 31,860

Student debtors 4,176 3,993 4,176 3,993

Less: Provision for impaired receivables (1,792) (1,371) (1,792) (1,371)

2,384 2,622 2,384 2,622

Loans and other receivables1 - - 11,987 11,280

Less: Provision for impaired loans - - (250) -

- - 11,737 11,280

Payments in advance 27,095 25,197 25,682 23,774

Sundry advances 825 794 806 751

Accrued income 13,705 8,998 14,088 9,640

Investment income receivable 423 2,234 421 2,232

Total current receivables 77,963 76,080 83,894 82,159

Non-current

Payments in advance 1,567 - 1,567 -

Deferred government contributions forsuperannuation 37(d) 950,549 1,058,719 950,549 1,058,719

Less: Provision for impaired receivables (9,500) (9,500) (9,500) (9,500)

941,049 1,049,219 941,049 1,049,219

Other receivables 2,416 679 2,357 649

Total non-current receivables 945,032 1,049,898 944,973 1,049,868

Total receivables 1,022,995 1,125,978 1,028,867 1,132,027

1As at 31 December 2013, loans and other receivables include contributions of $11,695,000 (2012: $11,030,000) from UNSW GlobalPty Ltd, refer to note 7.

30







16 Receivables (continued)

(a) Impaired receivables

Terms of trade are generally 30 days. As at 31 December 2013 current receivables of the Group and theparent entity with a nominal value of $6,136,000 and $5,699,000, respectively (2012: $6,515,000 and$6,038,000, respectively) were partially impaired. The amounts of the provision for the Group and the parententity were $2,795,000 and $2,358,000, respectively (2012: $2,500,000 and $2,030,000, respectively), andrelate to non-government customers, which are in unexpectedly difficult economic situations.

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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

91 to 180 days 521 551 311 371

181 to 270 days 262 249 131 204

271 to 365 days 841 852 810 800

over 365 days 1,171 848 1,106 655

2,795 2,500 2,358 2,030

(b) Past due but not impaired receivables

As at 31 December 2013 current receivables of the Group and the parent entity with a nominal value of$12,333,000 and $10,421,000 respectively (2012: $11,406,000 and $10,261,000 respectively) were past duebut not impaired.

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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

31 to 60 days 7,282 7,756 6,165 6,964

61 to 90 days 2,845 1,862 2,489 1,666

91 to 180 days 1,662 1,698 1,238 1,595

181 to 270 days 437 90 423 36

271 to 365 days 107 - 106 -

12,333 11,406 10,421 10,261

31







16 Receivables (continued)

(c) Movements

Movements in the provision for impaired receivables are as follows:

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Sundry debtors

Opening balance at 1 January 1,129 2,580 659 1,470

Provision for impairment addedduring/(released) during the year 197 (282) (36) (293)

Receivables written off during the year (323) (1,169) (57) (518)

Closing balance at 31 December 1,003 1,129 566 659

Student debtors

Opening balance at 1 January 1,371 1,161 1,371 1,161

Provision for impairment added duringthe year 685 852 685 852

Receivables written off during the year (264) (642) (264) (642)

Closing balance at 31 December 1,792 1,371 1,792 1,371

Loans and other receivables1

Opening balance at 1 January - - - 10,682

Provision for impairment added duringthe year - - 250 5,815

Loans written off during the year - - - (16,497)

Closing balance at 31 December - - 250 -

Deferred government contributionfor superannuation

Opening balance at 1 January 9,500 - 9,500 -

Provision for impairment added duringthe year - 9,500 - 9,500


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

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

1As at 31 December 2012, UNSW agreed to release NewSouth Innovations Pty Ltd from its obligation to repay the loanamounts outstanding, totalling principal and interest of $16,497,000. The impairment loss of $5,815,000 has been classified inOther operating expenses, refer to note 13.

32







17 Investments accounted for using the equity methodConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Investments in associatesaccounted for using the equitymethod 4,587 4,744 - -

Reconciliation

Balance at 1 January 4,744 387 - -

Share of (loss)/profit for the year (157) 190 - -

Impairment reversal - 4,167 - -

Balance at 31 December 4,587 4,744 - -

(a) Detail of investments accounted for using the equity method

Associates Description Ownership Interest %

2013 2012

- Dosimetry & Imaging Pty Ltd Biotec 40.00 40.00

- Acyte Biotech Pty Ltd Biotec 43.01 43.01

- Australian Technology Park Innovation Pty Ltd Facilitation of commercialisationof start-up companies 25.00 25.00

- DigitalCore Pty Ltd1 IT - 9.70

- BioParticle Technologies Pty Ltd Medical 35.06 35.06

- Bionic Vision Technologies Pty Ltd Medical 40.00 40.00

- Randwick Health and Medical Research Institute Medical 30.00 30.00

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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Financial Position

Total assets 20,528 24,610 - -

Total liabilities 1,026 4,025 - -

Net assets 19,502 20,585 - -

Share of associates' net assets 5,026 5,270 - -

Financial Performance

Total revenue 2,377 5,365 - -

Total expenses 3,167 5,623 - -

Loss (790) (258) - -

Share of associates'(loss)/profit (157) 190 - -

1 DigitalCore Pty Ltd merged with another company in early 2013. As a result of the merger, the Group ceased to have significantinfluence.

33







18 Other financial assets

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current

Held-to-maturity (b) 42,663 143,433 42,663 143,433

Derivative financial instruments (c) 629 327 629 327

Total current other financialassets 43,292 143,760 43,292 143,760

Non-current

Available-for-sale financial assets (a) 517,335 426,683 504,961 416,923

Held-to-maturity (b) - 5,254 - 5,254

Derivative financial instruments (c) 6 38 6 38

Other financial assets (d) 5,036 4,467 5,129 4,559

Total non-current other financialassets 522,377 436,442 510,096 426,774

Total other financial assets 565,669 580,202 553,388 570,534

(a) Available-for-sale financial assets

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Non-current

Unlisted unit trusts

- Listed domestic equities (i) 204,961 175,155 201,445 172,013

- Unlisted domestic/internationalfixed interest (ii) 201,014 161,632 197,457 158,759

- Listed international equities (i) 103,771 84,743 102,050 83,295

Listed equities (iii) 4 9 - -

Unlisted equities (iv) 7,585 5,144 4,009 2,856

Total non-current available-for-sale financial assets 517,335 426,683 504,961 416,923

Total available-for-sale financialassets 517,335 426,683 504,961 416,923

(i) Unlisted unit trusts - listed equities

Unlisted unit trusts are measured at year end by reference to the exit prices declared by fund managers. Thefund managers measure the listed equities at year end by reference to published price quotations in an activemarket.

(ii) Unlisted unit trusts - unlisted domestic/international fixed interest

Unlisted fixed interest unit trusts are measured at year end by reference to the exit prices declared by fundmanagers.

34







18 Other financial assets (continued)

(a) Available-for-sale financial assets (continued)

(iii) Listed equities

The fair value of listed available-for-sale investments is determined by reference to published price quotationsin an active market.

(iv) Unlisted equities

Unlisted equities are measured at year end at fair value.

(b) Held-to-maturity investmentsConsolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current

Term deposit (i) 42,663 138,438 42,663 138,438

Bonds (ii) - 4,995 - 4,995

Total current held-to-maturityinvestments 42,663 143,433 42,663 143,433

Non-current

Bonds (ii) - 5,254 - 5,254

Total non-current held-to-maturityinvestments - 5,254 - 5,254

Total held-to-maturityinvestments 42,663 148,687 42,663 148,687

(i) Term deposit

The average interest rate for 2013 was 3.59% (2012: 4.90%).

(ii) Bonds

Bonds include a 5 year bond of $5,000,000 (nominal value) at coupon rate of 8.50% per annum and a 10 yearbond of $5,250,000 (nominal value) at coupon rate of 10.00% per annum. Both bonds matured during 2013.

35







18 Other financial assets (continued)

(c) Derivative financial instruments

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current assets

Forward exchange contracts 629 327 629 327

Total current derivative financialinstruments 629 327 629 327

Non-current assets

Forward exchange contracts 6 38 6 38

Total non-current derivativefinancial instruments 6 38 6 38

Total derivative financialinstruments 635 365 635 365

The Group is party to derivative financial instruments in the normal course of business in order to hedgeexposure to fluctuations in foreign exchange rates in accordance with the Group’s financial risk managementpolicies, refer to note 35.

The parent entity entered into forward foreign exchange contracts which are economic hedges but do notsatisfy the requirements for hedge accounting. Changes in the fair value of these instruments are recognised inthe income statement as part of net foreign exchange gains/losses.

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

(d) Other financial assets

Consolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Non-current

Unlisted companies (i) 4 5 97 97

Unincorporated venture capitalinvestment (ii) 5,032 4,462 5,032 4,462

Total non-current otherfinancial assets 5,036 4,467 5,129 4,559

(i) Unlisted companies

The Group's and the parent entity's investments are shown at cost less impairment losses.

(ii) Unincorporated venture capital investment

The unincorporated venture capital investment represents the parent entity's investment in University Innovationand Investment Trust No. 3 which is shown at cost less impairment losses.

36




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$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

At

1 J

an

uary

2012

Cost

184,7

23

--

--

55,5

47

963

-213,7

40

88,6

97

-543,6

70

Valu

atio

n-

246,8

28

166,5

75

1,8

89,0

89

7,4

11

--

22,3

25

--

15,3

53

2,3

47,5

81

Acc

um

ula

ted d

epre

ciatio

n-

-(3

0,1

31)

(1,0

50,4

45)

-(3

5,1

01)

(644)

(9,2

15)

(104,0

25)

(84,6

15)

-(1

,314,1

76)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(910)

--

(910)

Net book

am

ount

184,7

23

246,8

28

136,4

44

838,6

44

7,4

11

20,4

46

319

13,1

10

108,8

05

4,0

82

15,3

53

1,5

76,1

65

Year

en

ded

31 D

ecem

ber

2012

Openin

g n

et book

am

ount

184,7

23

246,8

28

136,4

44

838,6

44

7,4

11

20,4

46

319

13,1

10

108,8

05

4,0

82

15,3

53

1,5

76,1

65

Additi

ons

200,6

08

-3,6

62

-34

5,6

93

497

24

30,4

16

1,0

13

-241,9

47

Ass

ets

dis

posa

l-

--

--

(3,7

57)

(284)

-(7

,957)

--

(11,9

98)

Tra

nsf

ers

(143,6

66)

-3,0

64

140,1

82

--

-420

--

--

Exc

hange d

iffere

nce

s-

--

--

3-

--

--

3

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

81

10,2

44

33,5

24

(2,2

53)

--

(735)

--

(3,5

54)

37,3

07

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(4

,703)

13,9

45

--

-1,5

67

--

-10,8

09

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(2

,295)

(79,7

21)

-(1

1,2

47)

(90)

(1,6

23)

(18,8

73)

(696)

-(1

14,5

45)

Write

-back

for

ass

ets

dis

pose

d-

--

--

3,4

41

190

-6,5

74

--

10,2

05

Exc

hange d

iffere

nce

s-

--

(3)

-(3

)-

--

--

(6)

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

202

--

202

Clo

sing n

et book

am

ount

241,6

65

246,9

09

146,4

16

946,5

71

5,1

92

14,5

76

632

12,7

63

119,1

67

4,3

99

11,7

99

1,7

50,0

89

At

31 D

ecem

ber

2012

Cost

241,6

65

--

--

57,4

86

1,1

76

-236,1

99

89,7

10

-626,2

36

Valu

atio

n-

246,9

09

183,5

45

2,0

62,7

95

5,1

92

--

22,0

34

--

11,7

99

2,5

32,2

74

Acc

um

ula

ted d

epre

ciatio

n-

-(3

7,1

29)

(1,1

16,2

24)

-(4

2,9

10)

(544)

(9,2

71)

(116,3

24)

(85,3

11)

-(1

,407,7

13)

Acc

um

ula

ted im

pairm

ent

--

--

--

--

(708)

--

(708)

Net

bo

ok a

mo

un

t241,6

65

246,9

09

146,4

16

946,5

71

5,1

92

14,5

76

632

12,7

63

119,1

67

4,3

99

11,7

99

1,7

50,0

89

37

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

.1

No

tes

to t

he

fin

anci

al s

tate

men

ts31

Dec

embe

r 201

3


Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e Y

ea

r E

nd

ed

31 D

ecem

ber

2013

19

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t (c

on

tin

ue

d)

Co

nso

lid

ate

d

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fart

s

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

Year

en

ded

31 D

ecem

ber

2013

Openin

g n

et book

am

ount

241,6

65

246,9

09

146,4

16

946,5

71

5,1

92

14,5

76

632

12,7

63

119,1

67

4,3

99

11,7

99

1,7

50,0

89

Additi

ons

176,0

74

-7,2

35

-42

8,2

80

234

214

30,5

69

768

-223,4

16

Ass

ets

dis

posa

l-

--

--

(2,5

41)

(435)

(78)

(4,9

18)

--

(7,9

72)

Tra

nsf

ers

(241,1

21)

-4,6

78

236,4

37

--

-6

--

--

Exc

hange d

iffere

nce

s-

--

--

16

-28

11

--

55

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

11,8

94

13,1

34

(23,1

14)

3-

-495

--

188

2,6

00

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(1

,137)

48,5

91

--

-(2

43)

--

-47,2

11

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(2

,604)

(85,0

95)

-(9

,981)

(122)

(1,4

07)

(20,8

74)

(590)

-(1

20,6

73)

Write

-back

for

ass

ets

dis

pose

d-

--

--

2,5

28

395

78

4,3

91

--

7,3

92

Exc

hange d

iffere

nce

s-

--

--

(16)

-(2

4)

(10)

--

(50)

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

160

--

160

Clo

sing n

et book

am

ount

176,6

18

258,8

03

167,7

22

1,1

23,3

90

5,2

37

12,8

62

704

11,8

32

128,4

96

4,5

77

11,9

87

1,9

02,2

28

At

31 D

ecem

ber

2013

Cost

176,6

18

--

--

63,2

41

975

-261,8

61

90,4

78

-593,1

73

Valu

atio

n-

258,8

03

208,5

92

2,2

76,1

18

5,2

37

--

22,6

99

--

11,9

87

2,7

83,4

36

Acc

um

ula

ted d

epre

ciatio

n-

-(4

0,8

70)

(1,1

52,7

28)

-(5

0,3

79)

(271)

(10,8

67)

(132,8

17)

(85,9

01)

-(1

,473,8

33)

Accu

mula

ted im

pairm

ent

--

--

--

--

(548)

--

(548)

Net book

am

ount

176,6

18

258,8

03

167,7

22

1,1

23,3

90

5,2

37

12,8

62

704

11,8

32

128,4

96

4,5

77

11,9

87

1,9

02,2

28

38

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

.1

No

tes

to t

he

fin

anci

al s

tate

men

ts31

Dec

embe

r 201

3


No

tes

to t

he

fin

anci

al s

tate

men

ts31

Dec

embe

r 201

3T

he

Un

ive

rsit

y o

f N

ew

So

uth

Wa

les

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e Y

ea

r E

nd

ed

31 D

ecem

ber

2013

19

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t (c

on

tin

ue

d)

Pare

nt

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fa

rt

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

At

1 J

an

uary

2012

Cost

184,7

23

--

--

51,5

65

638

-213,1

98

88,6

97

-538,8

21

Valu

atio

n-

246,8

28

166,5

75

1,8

81,5

14

7,4

06

--

22,0

45

--

15,3

53

2,3

39,7

21

Acc

um

ula

ted d

epre

ciatio

n-

-(3

0,1

31)

(1,0

46,0

13)

-(3

1,8

44)

(425)

(9,0

23)

(103,5

83)

(84,6

15)

-(1

,305,6

34)

Accu

mula

ted im

pairm

ent

--

--

--

--

(910)

--

(910)

Net book

am

ount

184,7

23

246,8

28

136,4

44

835,5

01

7,4

06

19,7

21

213

13,0

22

108,7

05

4,0

82

15,3

53

1,5

71,9

98

Year

en

ded

31 D

ecem

ber

2012

Openin

g n

et book

am

ount

184,7

23

246,8

28

136,4

44

835,5

01

7,4

06

19,7

21

213

13,0

22

108,7

05

4,0

82

15,3

53

1,5

71,9

98

Additi

ons

200,5

59

-3,6

62

-34

5,1

03

497

24

30,3

82

1,0

13

-241,2

74

Ass

ets

dis

posa

ls-

--

--

(3,4

54)

(255)

-(7

,924)

--

(11,6

33)

Tra

nsf

ers

(143,6

17)

-3,0

64

140,1

33

--

-420

--

--

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

81

10,2

44

33,5

24

(2,2

53)

--

(735)

--

(3,5

54)

37,3

07

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(4

,703)

13,9

45

--

-1,5

67

--

-10,8

09

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(2

,295)

(79,2

49)

-(1

0,7

25)

(47)

(1,5

80)

(18,8

47)

(696)

-(1

13,4

39)

Write

-back

of ass

ets

dis

pose

d-

--

--

3,1

50

161

-6,5

58

--

9,8

69

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

202

--

202

Clo

sing n

et book

am

ount

241,6

65

246,9

09

146,4

16

943,8

54

5,1

87

13,7

95

569

12,7

18

119,0

76

4,3

99

11,7

99

1,7

46,3

87

At

31 D

ecem

ber

2012

Cost

241,6

65

--

--

53,2

14

880

-235,6

56

89,7

10

-621,1

25

Valu

atio

n-

246,9

09

183,5

45

2,0

55,1

71

5,1

87

--

21,7

54

--

11,7

99

2,5

24,3

65

Acc

um

ula

ted d

epre

ciatio

n-

-(3

7,1

29)

(1,1

11,3

17)

-(3

9,4

19)

(311)

(9,0

36)

(115,8

72)

(85,3

11)

-(1

,398,3

95)

Accu

mula

ted im

pairm

ent

--

--

--

--

(708)

--

(708)

Net book

am

ount

241,6

65

246,9

09

146,4

16

943,8

54

5,1

87

13,7

95

569

12,7

18

119,0

76

4,3

99

11,7

99

1,7

46,3

87

39

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

.1


Th

e U

niv

ers

ity

of

Ne

w S

ou

th W

ale

s

No

tes

to

th

e f

ina

nc

ial

sta

tem

en

ts

Fo

r th

e Y

ea

r E

nd

ed

31 D

ecem

ber

2013

19

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t (c

on

tin

ue

d)

Pare

nt

Wo

rks in

pro

gre

ss

$'0

00

Cam

pu

sla

nd

$'0

00

Off

-cam

pu

sp

rop

ert

ies

$'0

00

Cam

pu

sb

uild

ing

s

$'0

00

Wo

rks o

fa

rt

$'0

00

Co

mp

ute

req

uip

men

t

$'0

00

Mo

tor

veh

icle

s

$'0

00

Leaseh

old

imp

rovem

en

ts

$'0

00

Oth

er

eq

uip

men

t

$'0

00

Lib

rary

co

llecti

on

s

$'0

00

Rare

bo

oks

$'0

00

To

tal

$'0

00

Year

en

ded

31 D

ecem

ber

2013

Openin

g n

et book

am

ount

241,6

65

246,9

09

146,4

16

943,8

54

5,1

87

13,7

95

569

12,7

18

119,0

76

4,3

99

11,7

99

1,7

46,3

87

Additi

ons

175,9

44

-7,2

35

-42

8,0

62

69

-30,5

13

768

-222,6

33

Ass

ets

dis

posa

ls-

--

--

(2,1

09)

(267)

-(4

,808)

--

(7,1

84)

Tra

nsf

ers

(240,9

91)

-4,6

78

236,3

07

--

-6

--

--

Revalu

ati

on

:

Adju

stm

ent to

cost

and v

alu

atio

n-

11,8

94

13,1

34

(23,1

14)

3-

-495

--

188

2,6

00

Adju

stm

ent to

acc

um

ula

ted d

epre

ciatio

n-

-(1

,137)

48,5

91

--

-(2

43)

--

-47,2

11

Dep

recia

tio

n/im

pair

men

t:

Depre

ciatio

n-

-(2

,604)

(84,6

77)

-(9

,608)

(73)

(1,3

42)

(20,8

48)

(590)

-(1

19,7

42)

Write

-back

for

ass

et dis

pose

d-

--

--

2,0

96

244

-4,2

82

--

6,6

22

(Im

pairm

ent ch

arg

es)

/reve

rsal o

f im

pairm

ent

--

--

--

--

160

--

160

Clo

sing n

et book

am

ount

176,6

18

258,8

03

167,7

22

1,1

20,9

61

5,2

32

12,2

36

542

11,6

34

128,3

75

4,5

77

11,9

87

1,8

98,6

87

At

31 D

ecem

ber

2013

Cost

176,6

18

--

--

59,1

67

682

-261,3

61

90,4

78

-588,3

06

Valu

atio

n-

258,8

03

208,5

92

2,2

68,3

64

5,2

32

--

22,2

55

--

11,9

87

2,7

75,2

33

Acc

um

ula

ted d

epre

ciatio

n-

-(4

0,8

70)

(1,1

47,4

03)

-(4

6,9

31)

(140)

(10,6

21)

(132,4

38)

(85,9

01)

-(1

,464,3

04)

Accu

mula

ted im

pairm

ent

--

--

--

--

(548)

--

(548)

Net book

am

ount

176,6

18

258,8

03

167,7

22

1,1

20,9

61

5,2

32

12,2

36

542

11,6

34

128,3

75

4,5

77

11,9

87

1,8

98,6

87

40

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

.1

No

tes

to t

he

fin

anci

al s

tate

men

ts31

Dec

embe

r 201

3





19 Property, plant and equipment (continued)

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

Campus land and off-campus properties (comprises land and buildings) are fair valued based on the highestand best use of the assets. The value reflects the amounts for which the assets could be exchanged betweenwilling parties in an arm's length transaction, based on current prices in an active market for similar propertiesin the same location and condition. The revaluations for 2013 were based on independent assessments byCBRE Valuations Pty Ltd as at 31 December 2013.

(b) Valuations of campus buildings and leasehold improvements

Campus buildings and leasehold improvements are fair valued using the depreciated replacement cost basis.The 2013 revaluations were based on independent assessments by CBRE Valuations Pty Ltd as at 31December 2013.

(c) Valuations of rare books

Rare books are stated at fair value to reflect the amounts for which the assets could be exchanged betweenwilling parties in an arm's length transaction, based on current prices in an active market. The 2013revaluations were based on independent assessments by McWilliam & Associates Pty Ltd as at 31 December2013.

(d) Valuations of works of art

Works of art are stated at fair value to reflect the amounts for which the assets could be exchanged betweenwilling parties in an arm's length transaction, based on current prices in an active market. The 2013revaluations were based on independent assessments by McWilliam & Associates Pty Ltd as at 31 December2013.

(e) Leasing arrangements

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

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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Within one year 6,921 5,128 9,418 7,613

Later than one year but no later than fiveyears 13,366 13,086 14,381 16,491

Later than five years 5,761 6,175 5,761 6,175

Net book amount 26,048 24,389 29,560 30,279

Total GST payable (at 10%) 2,533 2,417 2,884 3,006

41







20 Public Private Partnerships (PPP)

(a) High Street Housing Project

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

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

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

(b) New College Postgraduate Village Project

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

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

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

42







21 Intangible assets

Consolidated

Work inprogress

$'000

Patents

$'000

Computersoftware

$'000

Digitalisedlibrary

researchcollections

$'000

Total

$'000

At 1 January 2012

Cost 8,585 7,775 38,789 - 55,149

Accumulated amortisation and impairment - (6,297) (38,262) - (44,559)

Net book amount 8,585 1,478 527 - 10,590

Year ended 31 December 2012

Opening net book amount 8,585 1,478 527 - 10,590

Additions 14,476 1,218 942 1,526 18,162

Disposals - (505) - - (505)

Transfers (12) - 12 - -

Amortisation/impairment

Amortisation - (171) (193) (51) (415)

Impairment charge - (1,086) - - (1,086)

Write-back of amortisation and impairmenton disposal - 319 - - 319

Closing net book amount 23,049 1,253 1,288 1,475 27,065

At 31 December 2012

Cost 23,049 8,488 39,743 1,526 72,806

Accumulated amortisation and impairment - (7,235) (38,455) (51) (45,741)

Net book amount 23,049 1,253 1,288 1,475 27,065


Opening net book amount 23,049 1,253 1,288 1,475 27,065

Additions 23,274 1,510 8 1,770 26,562

Disposals - (1,441) (26) - (1,467)

Transfers (39,801) - 39,801 - -

Exchange differences - - 7 - 7

Amortisation/impairment

Amortisation - (174) (1,492) (204) (1,870)

Write-back of amortisation and impairmenton disposal - 1,163 26 - 1,189

Impairment charges - (1,099) - - (1,099)

Exchange differences - - (4) - (4)

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

At 31 December 2013

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

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

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

43







21 Intangible assets (continued)

Parent

Work inprogress

$'000

Computersoftware

$'000

Digitalisedlibrary

researchcollections

$'000

Total

$'000

At 1 January 2012

Cost 8,402 37,239 - 45,641

Accumulated amortisation and impairment - (37,239) - (37,239)

Net book amount 8,402 - - 8,402


Opening net book amount 8,402 - - 8,402

Additions 14,167 758 1,526 16,451

Amortisation - (66) (51) (117)

Closing net book amount 22,569 692 1,475 24,736

At 31 December 2012

Cost 22,569 37,997 1,526 62,092

Accumulated amortisation and impairment - (37,305) (51) (37,356)

Net book amount 22,569 692 1,475 24,736


Opening net book amount 22,569 692 1,475 24,736

Additions 22,411 - 1,770 24,181

Transfers (38,724) 38,724 - -

Amortisation - (1,325) (204) (1,529)

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

At 31 December 2013

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

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

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

22 Trade and other payablesConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current

Sundry creditors 31,497 33,121 27,454 29,200

Accrued expenses 41,878 31,388 38,636 28,410

Employee related liabilities 17,707 30,756 16,152 30,053

Other payables 1,028 851 1,014 851

Total current trade and other payables 92,110 96,116 83,256 88,514

44







23 BorrowingsConsolidated Parent

Note

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current

Unsecured

Financing arrangement (a) 499 384 499 384

Loan from ANZ bank (b) 3,481 3,518 3,481 3,518

Total current unsecured borrowings 3,980 3,902 3,980 3,902

Non-current

Unsecured

Financing arrangement (a) 39,727 40,227 39,727 40,227

Loans from ANZ bank (b) 13,489 16,869 13,489 16,869

Total non-current unsecured borrowings 53,216 57,096 53,216 57,096

Total borrowings 57,196 60,998 57,196 60,998

(a) Financing arrangements

On 15 December 2006 an agreement was signed with Westpac, in which the parent entity granted a 99 yearground lease over 222-227 Anzac Parade to Westpac Office Trust for an amount of $41,000,000 (excludingGST), and agreed to take a lease-back on the property for an initial period of 25 years. The parent entity alsoholds two ten year options. The lease-back transaction is a “triple net lease” with the parent entity beingresponsible for all outgoings, management and capital expenditure/maintenance expenditure for the full periodof the lease-back periods. The transaction was completed on 12 January 2007.

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

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

As at 31 December 2013, the maturity analysis of the borrowing costs and principal repayments was as follows:

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Within one year 3,018 2,930 3,018 2,930

Later than one year but not later thanfive years 13,004 12,626 13,004 12,626


Borrowing costs (30,583) (33,128) (30,583) (33,128)

Total 40,226 40,611 40,226 40,611

Within one year 499 384 499 384

Later than one year but not later thanfive years 3,366 2,795 3,366 2,795


Present value of loan principal 40,226 40,611 40,226 40,611

45







23 Borrowings (continued)

(b) Loans from ANZ bank

Following the closure of UNSW Asia in 2007, its loan has been assigned to the parent entity and it wassubsequently renegotiated to be repaid on quarterly instalments over a notional term of 10 years until July2018. The loan facility is due to mature in February 2015.

On 1 December 2008, an additional loan was secured from the ANZ bank to be repaid quarterly over a notionalterm of 10 years until December 2018. The proceeds of these loans were used to repay the EconomicDevelopment Board, Singapore (EDB) loan and grant. The loan facility is due to mature in February 2015.

These loans bear an average interest rate of 4.13% (2012: 4.93%).

(c) Assets pledged as security

The Group and parent entity had no assets pledged as security in 2013 and 2012.

(d) Credit standby arrangements

The Group and the parent entity did not have any undrawn borrowing facilities at the balance sheet date.

(e) Fair value

The carrying amounts of borrowings at balance sheet date are approximate to their fair value.

(i) On-balance sheetThe fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant.The fair values of the financing arrangement are based on cash flows discounted at 6% interest rate (2012:6%).

(ii) Contingent liabilitiesThe parent entity and certain controlled entities have potential financial liabilities which may arise from certaincontingencies disclosed in note 30. As explained in this note, no material losses are anticipated in respect ofany of those contingencies.

(f) Risk exposures

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

46







24 ProvisionsConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current provisions expected to bewholly settled within 12 months

Employee benefits

Annual leave 35,277 34,911 32,761 32,582

Long service leave 21,945 20,099 21,415 19,537

Employment on-costs 841 505 842 501

Workers compensation 1,472 1,159 1,163 991

Subtotal 59,535 56,674 56,181 53,611

Current provisions expected to bewholly settled after more than 12months

Employee benefits

Annual leave 15,957 15,900 15,905 15,900


Subtotal 134,175 131,723 131,565 129,246

Total current provisions 193,710 188,397 187,746 182,857

Non-current provisions

Employee benefits


Deferred non-governmentbenefits for superannuation1 6,513 17,299 6,513 17,299

Deferred government benefitsfor superannuation2 1,029,690 1,148,296 1,029,696 1,146,347

Workers compensation 4,266 3,392 4,266 3,392

Total non-current provisions 1,065,643 1,194,326 1,063,675 1,190,838

Total provisions 1,259,353 1,382,723 1,251,421 1,373,695

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

2This includes $949,007,000 (2012: $1,058,719,000) net liabilities of the State Authorities Superannuation Scheme and the StateSuperannuation Scheme (refer to note 16), $1,542,000 net liabilities of the superannuation funds of UNSW Global Pty Ltd (refer tonote 16), $7,262,000 (2012: $6,645,000) net liabilities of the parent entity’s State Authorities Non-Contributory SuperannuationScheme (refer to note 37(e)) and $71,885,000 (2012: $80,983,000) net liabilities of the superannuation funds of UNSW Canberra atthe Australian Defence Force Academy ("UNSW Canberra at ADFA"). Refer to note 37(d), 1(a)(i) and 1(x)(iv) for further information.

47







25 Other financial liabilitiesConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current liabilities

Forward foreign exchange contracts 376 359 376 359

Total current derivative financialinstruments 376 359 376 359

Non-current liabilities

Forward foreign exchange contracts 96 - 96 -

Total non-current derivative financialinstruments 96 - 96 -

Total derivative financialinstruments - liabilities 472 359 472 359

Further information about derivative financial instruments is provided in note 18(c).

26 Other liabilities

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Current

Income in advance1 68,008 76,531 47,210 64,825

Monies held from associatedparties 785 715 706 706

Other 7,197 6,663 2,695 2,695

Total current other liabilities 75,990 83,909 50,611 68,226

Non-current

Income in advance 1 23,743 24,953 23,743 24,953

Other 5,181 6,769 5,181 6,769

Total non-current other liabilities 28,924 31,722 28,924 31,722

Total other liabilities 104,914 115,631 79,535 99,948

1 Income in advance (current) includes research income of $34,987,000 (2012: $40,263,000), prepaid tuition fees of $21,878,000(2012: $17,079,000), the current portion of the rental income received in advance from the Children's Cancer Institute Australia forMedical Research (CCIA) of $2,073,000 (2012: $3,883,000), and the current portion of grant received in advance from the HealthAdministration Corporation (HAC) to fund the construction of the Australian Advanced Treatment Centre of $3,281,000 (2012:$4,847,000). Income in advance (non-current) mainly represents the non-current portion of the rental income received in advancefrom the CCIA of $18,590,000 (2012: $19,502,000) and the non-current portion of grant received in advance from the HAC of$5,153,000 (2012: $5,153,000).

48







27 Reserves and retained earnings

(a) Reserves

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Reserves

Property, plant and equipmentrevaluation surplus 558,053 508,242 555,752 505,941

Available-for-sale financial assetsrevaluation surplus 96,590 49,303 89,345 40,963

Foreign currency translation reserve (674) (798) - -

Total reserves 653,969 556,747 645,097 546,904

Movements

Property, plant and equipmentrevaluation surplus


Revaluation of campus land 11,894 81 11,894 81

Revaluation of campus buildings 25,477 47,469 25,477 47,469

Revaluation of off-campus properties 11,997 5,541 11,997 5,541

Revaluation of rare books 188 (3,554) 188 (3,554)

Revaluation of works of art 3 (2,253) 3 (2,253)

Revaluation of leaseholdimprovements 252 832 252 832

Transfer to retained earnings - (1,825) - (1,825)


Available-for-sale investmentsrevaluation surplus


Gains on revaluation 51,573 36,556 50,805 36,028

Transfer to income statement (4,286) - (2,423) -


Foreign currency translation reserve

Opening balance at 1 January (798) (800) - -

Exchange differences on translation offoreign operations 124 2 - -

Closing balance at 31 December (674) (798) - -

Total reserves 653,969 556,747 645,097 546,904

49







27 Reserves and retained earnings (continued)

(b) Retained earningsConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Opening balance at 1 January 1,350,639 1,261,432 1,344,443 1,254,076

Operating result for the period 104,824 90,425 101,805 91,425

Actuarial gains/(losses) on definedbenefit superannuation plans 20,548 (3,043) 20,072 (2,883)

Transfer from reserves - 1,825 - 1,825

Closing balance at 31 December 1,476,011 1,350,639 1,466,320 1,344,443

(c) Nature and purpose of reserves

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

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

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

50







28 Key management personnel disclosures

(a) Names of responsible persons and executive officers

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

(i) Official Council Members

Mr David M. Gonski, AC, Chancellor

Professor Frederick G. Hilmer, AO, President and Vice-Chancellor

Professor Prem Ramburuth, President of the Academic Board

(ii) Ministerial Appointments

Ms Jillian S. Segal, AM, Deputy Chancellor

Mr Brian Long, Pro-Chancellor

(iii) Elected Council Members

Ms Samantha Bobba

Mr Stephan Heap (commenced 3 July 2013)

Professor Rakesh Kumar

Mr Karl Natschev

Scientia Professor John Piggott

(iv) Council Appointed Members

Mr Nicholas Carney

Dr Christine L. Clifton, Pro-Chancellor

Mr Terry J. Davis

Mr Matthew T. Grounds

Mr Warwick Negus

(v) Council Members term of office completed in 2013

Mr Paul Keighley (membership ended 2 July 2013)

(b) Other key management personnel

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

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

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

Mr Jonathan Blakeman Vice-President, Finance and Operations

Mr Neil D. Morris Vice-President, University Services

Ms Jennie Lang Vice-President, Advancement

Professor Merlin Crossley Dean, Faculty of Science (commenced 1 January 2013)

Professor David Dixon Dean, Faculty of Law (commenced 1 January 2013)

51







28 Key management personnel disclosures (continued)

(c) Remuneration of board members and executivesConsolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Remuneration of Board Members

Nil 36 37 11 16

$1 to $9,999 2 2 - -

$10,000 to $19,999 2 1 - -

$20,000 to $29,999 1 1 - -

$40,000 to $49,999 - 1 - -

$80,000 to $89,999 - 1 - 1

$90,000 to $99,999 1 - 1 -

$110,000 to $119,999 - 1 - 1

$130,000 to $139,999 - 1 - 1

$140,000 to $149,999 - 1 - 1

$180,000 to $189,999 - 1 - 1

$240,000 to $249,999 1 1 - -

$270,000 to $279,999 - 1 - 1

$280,000 to $289,999 2 - 2 -

$290,000 to $299,999 - 1 - 1

$320,000 to $329,999 1 - 1 -

$330,000 to $339,999 - 1 - 1

$340,000 to $349,999 - 1 - -

$360,000 to $369,999 1 - - -

$910,000 to $919,999 - 1 - 1

$940,000 to $949,999 1 - 1 -

Total 48 53 16 25

Council members include the Group's employees who may be ex-officio members or elected staff members. NoCouncil member (including Chancellor and Deputy Chancellor) has received any remuneration in his/hercapacity as a Council member.

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

There were five Council members (2012: nine) who received remuneration as employees of the parent entity.

There were eleven Council members (2012: sixteen) who did not receive remuneration as employees of theparent entity.

The consolidated board member numbers include those of controlled entities as well as the parent entity.

52







28 Key management personnel disclosures (continued)

(c) Remuneration of board members and executives (continued)Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Remuneration of executive officers

Nil 2 3 - -

$90,000 to $99,999 - 1 - 1

$120,000 to $129,999 - 1 - -

$130,000 to $139,999 1 - - -

$220,000 to $229,999 1 2 - -

$230,000 to $239,999 3 2 - -

$260,000 to $269,999 1 2 - -

$270,000 to $279,999 1 1 - -

$280,000 to $289,999 1 1 - -

$300,000 to $309,999 - 1 - 1

$310,000 to $319,999 - 1 - -

$330,000 to $339,999 1 - - -

$360,000 to $369,999 - 1 - 1

$380,000 to $389,999 1 1 1 1

$390,000 to $399,999 1 - - -

$400,000 to $409,999 1 1 1 1

$430,000 to $439,999 1 - 1 -

$440,000 to $449,999 2 - 2 -

$500,000 to $509,999 - 1 - 1

$520,000 to $529,999 - 1 - 1

$540,000 to $549,999 - 1 - 1

$560,000 to $569,999 1 - 1 -

$730,000 to $739,999 1 - 1 -

$790,000 to $799,999 - 1 - 1

Total 19 22 7 9

The consolidated executive officer numbers include those of controlled entities as well as the parent entity.

(d) Key management personnel compensation

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Short-term employee benefits 7,382 8,224 4,607 5,362

Post-employment benefits 704 875 487 670

Termination benefits 507 402 256 371

Total 8,593 9,501 5,350 6,403

53







29 Remuneration of auditors

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

(a) Audit of the financial statements

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Audit Office of NSW

Audit of financial statements 768 868 415 380

Audit of subsidiaries' financialstatements paid by parent entity 75 81 75 81

Other audit firms 146 141 - -

Total 989 1,090 490 461

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

KPMG - Advisory services 14 116 14 110

Total 40 142 40 136

Total 1,029 1,232 530 597

30 Contingencies

(a) Contingent liabilities

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

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

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

(i) $4,064,000 with the ANZ Banking Group in favour of WorkCover New South Wales,

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

(iii) $10,000 with the ANZ Banking Group in favour of Randwick City Council.

54







30 Contingencies (continued)

(a) Contingent liabilities (continued)

Letters of CommitmentThe parent entity has issued letters of commitment to controlled entities to ensure that those entities are able tomeet their debts when they become due. The total of letters of commitment for parent in 2013 is $11,550,000(2012: $11,550,000).

LitigationThere are a number of legal claims and exposures, which arise from the ordinary course of business, none ofwhich are individually significant. Where the liability is not probable the Group has not provided for suchamounts in these financial statements. Additionally, there are a number of legal claims or potential claimsagainst the Group, the outcome of which cannot be foreseen at present, and for which no amounts have beenincluded.

(b) Contingent assets

In August 2010, UNSW's G2 building was damaged by fire. The building and personal claims have beensettled. At balance sheet date $1,520,000 is management's estimated recovery for the outstanding claimsagainst contents and business interruptions. This is pending final settlement with the insurer.

31 Commitments

(a) Capital commitments

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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Property, plant and equipment

Within one year 201,076 144,160 201,076 144,160

Later than one year but not later than fiveyears 24,021 19,260 24,021 19,260

Total 225,097 163,420 225,097 163,420

(b) Lease commitments

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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Within one year 11,546 13,482 6,688 8,867

Later than one year but not later than fiveyears 39,999 40,583 20,836 22,435

Later than five years 8,215 13,207 - -

Total future minimum lease payments 59,760 67,272 27,524 31,302

Total commitments 284,857 230,692 252,621 194,722

Applicable GST recoverable fromthe Taxation Authority 28,053 22,857 24,939 19,308

55







32 Subsidiaries

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

Equity Holding

Name of Entity Country ofIncorporation

Class of Shares 2013

%

2012

%

AGSM Ltd1 Australia Limited by guarantee - -

University of New South Wales InternationalHouse Ltd Australia Limited by guarantee - -

University of New South Wales Press Ltd Australia Limited by guarantee - -

NewSouth Innovations Pty Limited Australia Ordinary 100 100

- Cystemix Pty Ltd Australia Ordinary 100 100

Qucor Pty Limited2 Australia Ordinary 60 60

UNSW Global Pty Ltd Australia Ordinary 100 100

- UNSW Global (Singapore) Pte Limited Singapore Ordinary 100 100

- UNSW Global India Pvt Limited3 India Ordinary 100 100

- NewSouth Global (Thailand) Ltd4 Thailand Ordinary 49 49

- UNSW (Thailand) Ltd5 Thailand Ordinary 74 74

- Australian Education Consultancy Ltd Hong Kong Ordinary 100 100

UNSW (Hong Kong) Ltd6 Hong Kong Ordinary 100 100

The University of New South WalesFoundation Ltd Australia Limited by guarantee - -

- as Trustee for the University of New SouthWales Foundation Australia

- as Trustee for the New South Wales MineralsIndustry / University of New South WalesEducation Trust Australia

- as Trustee to the John Lewis and PamelaLightfoot Trust7 Australia

UNSW Hong Kong Foundation Limited Hong Kong Limited by guarantee - -

UNSW & Study Abroad - Friends and U.S.Alumni, Inc USA Not applicable 100 100

UK Friends of UNSW Australia8 UK Limited by guarantee - -

1 The Board resolved on 26 November 2013 to liquidate the company.2 Ownership split: 30% UNSW, 30% NewSouth Innovations Pty Ltd, 40% held for the benefit of the Researchers.3 Ownership split: 99.6% UNSW Global Pty Ltd, 0.4% Australian Education Consultancy Ltd. The Board resolved to place thecompany in a dormant stage from 31 October 2013.4 Ownership split: 48.75% UNSW Global Pty Ltd, remaining shareholding is held by alumni. Despite UNSW's equity interest beinglower than 50%, UNSW has control over the management decision making capacity of the company at balance sheet date. Thecompany applied for dissolution in December 2013.5 Ownership split: 49% UNSW Global Pty Ltd, 51% NewSouth Global (Thailand) Ltd. The company applied for dissolution inDecember 2013.6 On 30 June 2012 UNSW purchased the issued shares of this company from UNSW Global Pty Ltd.7 On 10 September 2012 the trust was discontinued.8 Incorporated on 19 December 2013.

56







33 Joint venture operations

The Group has interests in the following co-operative research centres (CRCs).

Contributions in cash and in-kind are expensed and included in the income statement. The Group's interestpercentage represents the Group's share of contributions and is not included in the statement of financial position.Contributions are for the year to 30 June 2013. In the event that a CRC's research results in a move tocommercialisation, a separate legal entity is established and the Group's share of the new entity is treated as anavailable-for-sale financial asset, joint venture, associated or controlled entity as appropriate.

Interestheld

Interestheld

Contribution Contribution

Name and principal activity

2013

%

2012

%

2013

$'000

2012

$'000

Advanced Manufacturing CRC:

The Advanced Manufacturing CRC aims to set the standard ininnovation creation, practice and education. It plays a vital role in thedevelopment and delivery of cutting edge technologies and a highlyskilled workforce to keep Australian manufacturing industriesglobally competitive and sustainable. 0.50 0.70 - 32

Capital Markets CRC:

The Capital Markets CRC has a mission to develop newtechnologies and knowledge that drive the future of capital markets. - - 223 159

Cotton Catchment Communities CRC:

The CRC completed the term of operation on 30 June 2012. - 3.49 - 469

CRC for Advanced Composite Structures:

The primary aim of the CRC for Advanced Composite StructuresLimited is to provide a focus for the development of advancedtechnologies which foster the growth of an efficient, globallycompetitive Australian composite industry. - - 836 690

CRC for Aboriginal and Torres Strait Islander Health-LowitjaInstitute:

Hosted by the Lowitja Institute, the CRCATSIH is a virtualorganisation that brings together the Aboriginal and Torres StraitIslander health sector, government health agencies and researchinstitutions to ensure that research conducted into Aboriginal healthis controlled and benefits Aboriginal people.UNSW joined as an essential participant in 2012. 2.80 - 2,155 -

CRC for Environmental Biotechnology:

The CRC completed the term of operation on 30 June 2012. - 25.00 - 700

CRC for Greenhouse Gas Technology (CO2CRC):

CRC for Greenhouse Gas Technology is focusing its efforts on thedevelopment and application of technologies to more effectivelycapture and geologically store carbon dioxide, and is nowacknowledged as one of the world's leading centres in the study ofcarbon dioxide capture and storage. 5.52 6.70 1,704 1,749

CRC for Low Carbon Living:

The Low Carbon Living CRC brings together key property, planning,engineering and policy organisations with leading Australianresearchers to develop new social technological and policy tools forreducing greenhouse gas emissions in the built environment.This CRC commenced operations in 2012. 11.40 - 1,198 -

57







33 Joint venture operations (continued)Interest

heldInterest

heldContribution Contribution

Name and principal activity

2013

%

2012

%

2013

$'000

2012

$'000

CRC for Polymers:

The CRC for Polymers conducts leading edge polymer research todeliver the technically advanced polymeric materials and polymerengineering required to transform Australian industries and toestablish and expand companies in emerging high growth areas ofthe economy. 5.00 5.35 317 656

CRC for Spatial Information:

The CRC for Spatial Information (CRCSI) conducts user-drivenresearch in emerging areas of spatial information that addressissues of national importance. - - 114 420

Poultry CRC:

The Poultry CRC's major challenge is to help Australia achievesustainable, ethical poultry production in the face of populationgrowth and climate change. UNSW is a non-essential (other)participant of this CRC and has no voting rights. - - 117 33

Smart Services CRC:

The Smart Services CRC creates new and improved services forindustry to enable customers to receive affordably and easilypersonalised, continuous service from businesses, irrespective oftheir world-wide location, and which instantly adjusts for any mobileor fixed device they use. 15.19 14.34 2,704 2,047

Total cash and in-kind contributions 9,368 6,955

58







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

Consolidated Parent

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Operating result for the period 104,824 90,425 101,805 91,425

Depreciation and amortisation 122,543 114,960 121,271 113,556

Write-down/(reversal) on investments torecoverable amount - (3,568) - 695

Write-down/(reversal) on property, plant andequipment and intangible assets 939 884 (160) (202)

Net (gains)/losses on disposal of property,plant and equipment 698 (1,894) 452 (2,094)

Net gains on sale of investments (7,844) (144) (5,891) (296)

Share of (profit)/loss of associates 157 (190) - -

221,317 200,473 217,477 203,084

Change in operating assets and liabilities

(Increase)/decrease in sundry and studentdebtors 2,942 (337) 2,865 (10,358)

Decrease in investment income receivables 1,811 1,906 1,811 1,905

(Increase)/decrease in accrued income (4,707) 4 (4,448) 286

Decrease in inventories 746 313 - -

(Increase)/decrease in sundry advances (31) 215 (55) 207

(Increase)/decrease in payments in advance (3,465) 1,709 (3,475) 2,184

Increase in other assets (2,007) (893) (1,978) (914)

Increase/(decrease) in deferredsuperannuation (674) 716 805 706

Increase/(decrease) in trade and otherpayables (4,006) 3,209 (5,258) 3,321

Increase/(decrease) in income in advance (9,733) 12,123 (18,825) 11,785

Increase/(decrease) in other liabilities (796) 45 (1,512) 346

Increase in provisions 6,022 16,838 5,163 15,531

(13,898) 35,848 (24,907) 24,999

Net cash provided by operating activities 207,419 236,321 192,570 228,083

59







35 Financial risk management

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

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

The Policy specifically covers:

Foreign exchange risk

Interest rate risk

Credit risk

Liquidity risk

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

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

(a) Market risk

(i) Foreign exchange risk

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

The Group and the parent entity operate internationally and are exposed to foreign exchange risk arising fromcommitted transactions such as research grants, expenditure to which the Group is bound or will imminentlyincur, and financial assets and financial liabilities which have been recognised in the accounts. The economicexposure to foreign exchange risk is minimised by entering hedge transactions in the spot and forward foreignexchange markets. The major currency to which the Group is exposed is US Dollar (USD) (2012: US Dollar(USD) and Singapore Dollar (SGD)).

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

The sensitivity analysis below shows the effect on the post tax operating result and equity as at balance sheetdate had the Australian dollar weakened/strengthened by 10.1% against the US dollar (2012: 3% and by 2%against the Singapore dollar) at that date with all other variables held constant.

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

60







35 Financial risk management (continued)

(a) Market risk (continued)

As at 31 December 2013, the Australian dollar exchange rate against the US dollar was 0.8844 (2012: 0.9964).Had the Australian dollar weakened by 10.1% against the US dollar to 0.7949 (2012: 0.9711 weakened by 3%),the post tax operating result for the year of the Group and the parent entity would have been $1,667,000 and$1,653,000 higher, respectively (2012: $117,129 and $106,710 higher respectively, based on a 3% change).Had the Australian dollar strengthened by 10.1% against the US dollar to 0.9738 (2012: 1.0217 strengthened by3%), the post tax operating result of the Group and the parent entity would have been $1,358,000 and$1,347,000 lower respectively, (2012: $111,184 and $101,282 lower respectively, based on a 3% change). Thiswas mainly as a result of foreign exchange gains/losses on translation of US dollar denominated cash andforward foreign exchange contracts.

The Group and the parent entity no longer have significant exposure to SGD as at 31 December 2013, as thegrant denominated in SGD provided by the Economic Development Board (EDB) was fully repaid during 2012.

As at 31 December 2012, the Australian dollar exchange rate against the Singapore dollar was 1.2100. Had theAustralian dollar weakened by 2% against the Singapore dollar to 1.1885, the post tax operating result for theyear of the Group and the parent entity would have been $11,035 higher. Had the Australian dollarstrengthened by 2% against the Singapore dollar to 1.2315, the post tax operating result for the year of theGroup and the parent entity would have been $10,649 lower. This was mainly as a result of foreign exchangegains/losses on translation of Singapore dollar denominated cash.

The carrying amounts of the Group’s and the parent entity's financial instruments that are exposed to foreigncurrency risk are primarily denominated in US dollars (2012: US dollars and Singapore dollars), as set outbelow:

2013

A$'000

2012

A$'000

USD USD SGD

Consolidated

Cash at bank and on hand 2,678 1,436 1,055

Sundry debtors 1,091 987 42

Sundry creditors (180) (17) -

Accruals - (75) (487)

Forward foreign exchange contracts

- sell foreign currency 3,045 8,913 -

- buy foreign currency 13,969 10,943 -

Parent

Cash at bank and on hand 2,558 1,076 1,055

Sundry debtors 1,091 948 42

Sundry creditors (180) (17) -

Accruals - (75) (487)


- sell foreign currency 3,045 8,913 -

- buy foreign currency 13,969 10,943 -

(ii) Price risk

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

The Group and the parent entity are exposed to securities price risk arising from investments held by andclassified on the statement of financial position as available-for-sale. Neither the Group nor the parent entity isexposed to commodity price risk.

61









The Group maintains investment portfolios characterised as short term, long term, and UNSW projects(investments intended to produce an income stream for UNSW (for example student housing) entered into as abusiness venture on the advice of the Finance Committee). The investment portfolios are governed by theUNSW Investment Policy and managed by the UNSW Treasury and Investment Services (UNSWTreasury).The investment objective of the short term and long term investment portfolios is to maximiseinvestment returns while maintaining the liquidity requirements of the UNSW, within an acceptable level of risk.

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

The Investment Sub Committee of the Finance Committee meets periodically to review the long term portfolioperformance, fund manager selection, asset allocation, and other high level investment policy issues (forexample the choice of benchmarks and objectives of the investment portfolios), and to make recommendationson any proposed changes to the UNSW Investment Policy.

The majority of the available for sale financial assets held by the Group and the parent entity are units inunlisted managed funds invested in debt and publicly traded equity securities. If financial asset prices as at 31December 2013 had increased/decreased by 8.5% with all other variables held constant, this would haveincreased/decreased the Group's and parent’s equity by $43,974,000 (2012: $8,534,000, based on a 2%change) and $42,922,000 (2012: $8,338,000, based on a 2% change) respectively.

The method used to arrive at the possible risk of 8.5% is based on both statistical and non-statistical analyses.The statistical analysis is based on an observed range of actual historical price data for comparable indices forthe last twelve months. This information is then reviewed and if necessary adjusted for reasonableness undercurrent economic circumstances.

(iii) Cash flow and fair value interest rate risk

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

The Group and the parent entity are exposed to interest rate risk predominantly from holding cash and cashequivalents, and interest bearing borrowings. Financial instruments issued at variable rates give exposure tocash flow interest rate risk. Financial instruments issued at fixed rates and carried at fair value expose theGroup to fair value interest rate risk. The Group is currently not exposed to fair value interest rate risk. In theevent that a net debt balance exists, UNSW Treasury will develop an interest rate hedging strategy inaccordance with the UNSW Treasury Policy. During 2013 and 2012, the Group’s borrowings at variable rateswere denominated in Australian Dollars.

A 50 basis point change (2012: 125 basis point change) is deemed to be reasonably possible and is used forreporting interest rate risk. The method used to arrive at the possible risk of 50 basis points is based on bothstatistical and non-statistical analysis. The statistical analysis is based on the cash rate for the last twelvemonths issued by the Reserve Bank of Australia (RBA) as the underlying dataset. This information is thenreviewed and if necessary adjusted for reasonableness under current economic conditions.

At 31 December 2013, if interest rates had changed by -/+ 50 basis points with all other variables held constant,post tax operating profit for the year for the Group and the parent entity would have been $401,000 lower/higher(2012: $661,000 lower/higher based on a change of 125 basis points) and $190,000 lower/higher (2012:$259,000 higher/lower based on a change of 125 basis points) respectively. This was mainly as a result oflower/higher interest income from cash and cash equivalents and lower/higher interest expense fromborrowings.

62









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

Consolidated

31 December 2013 Foreign exchange risk Price risk Interest rate risk

-10.1% USD +10.1% USD -8.5% +8.5% -0.5% +0.5%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets

Cash at bank and on hand 70,725 301 - (246) - - - - - (354) - 354 -

Deposit at call andinvestments originallymaturing within three months 26,355 - - - - - - - - (132) - 132 -

Sundry debtors 25,785 123 - (100) - - - - - - - - -

Listed domestic equities 204,961 - - - - - (17,422) - 17,422 - - - -

Unlisteddomestic/international fixedinterest 201,014 - - - - - (17,086) - 17,086 - - - -

Listed international equities 103,771 - - - - - (8,821) - 8,821 - - - -

Listed equities 4 - - - - - - - - - - - -

Unlisted equities 7,585 - - - - - (645) - 645 - - - -

Forward foreign exchangecontracts 635 1,524 - (1,240) - - - - - - - - -

Financial liabilities

Sundry creditors 31,497 (20) - 16 - - - - - - - - -

Accrued expenses 41,878 - - - - - - - - - - - -

ANZ bank loan 16,970 - - - - - - - - 85 - (85) -

Forward foreign exchangecontracts 472 (261) - 212 - - - - - - - - -

Total increase/(decrease) 1,667 - (1,358) - - (43,974) - 43,974 (401) - 401 -

Consolidated


-3% USD/-2%SGD

+3% USD/+2%SGD -2% +2% -1.25% +1.25%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets


Deposit at call andinvestments originallymaturing within three months 13,932 - - - - - - - - (174) - 174 -

Sundry debtors 30,249 27 - (25) - - - - - - - - -







Sundry creditors 33,121 - - - - - - - - - - - -

Accrued expenses 31,388 (11) - 10 - - - - - - - - -

ANZ bank loan 20,387 - - - - - - - - 255 - (255) -

Forward foreign exchangecontracts 359 266 - (253) - - - - - - - - -

Total increase/(decrease) 128 - (122) - - (8,534) - 8,534 (661) - 661 -

63








(a) Market risk (continued)Parent


-10.1% USD +10.1% USD -8.5% +8.5% -0.5% +0.5%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets


Deposit at call andinvestments originallymaturing within three months 355 - - - - - - - - (2) - 2 -

Sundry debtors 20,942 123 - (100) - - - - - - - - -





Forward foreign exchangecontracts 635 1,524 - (1,240) - - - - - - - - -


Sundry creditors 27,454 (20) - 16 - - - - - - - - -

Accrued expenses 38,636 - - - - - - - - - - - -

ANZ bank loan 16,970 - - - - - - - - 85 - (85) -

Forward foreign exchangecontacts 472 (261) - 212 - - - - - - - - -

Total increase/(decrease) 1,653 - (1,347) - - (42,922) - 42,922 (190) - 190 -

Parent


-3% USD/-2%SGD

+3%USD/+2%SGD -2% +2% -1.25% +1.25%

Carryingamount

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Result

$'000

Equity

$'000

Financial assets


Deposit at call andinvestments originallymaturing within three months 332 - - - - - - - - (4) - 4 -

Sundry debtors 25,608 25 - (24) - - - - - - - - -







Sundry creditors 29,200 - - - - - - - - - - - -

Accrued expenses 28,410 (10) - 10 - - - - - - - - -

ANZ bank loan 20,387 - - - - - - - - 255 - (255) -

Forward foreign exchangecontracts 359 266 - (253) - - - - - - - - -

Total increase/(decrease) 118 - (112) - - (8,338) - 8,338 (259) - 259 -

64








(b) Credit risk

Credit risk is the risk that a counterparty will cause a financial loss for the Group by not fulfilling its contractualobligations.

The Group and the parent entity are exposed to credit risk arising from its dealings with financial institutions forholdings of cash and cash equivalents, derivative financial instruments, fixed interest investments and deposits,interest bearing investments classified as held to maturity and classified as available for sale. Non-financialinstitution credit risk arises from credit exposures to customers, including outstanding receivables andcommitted transactions.

Credit risk arising from cash and cash equivalents, derivative financial instruments and deposits with financialinstitutions is managed by UNSW Treasury on a Group basis. The maximum permitted credit exposure to anyfinancial institution is determined on that financial institution’s current external credit rating with Standard andPoor’s (S&P).

The Group's practise is to spread the net credit exposure among major financial institutions which are rated theequivalent of A2 or above from S&P. The net exposure and the credit ratings of financial institutioncounterparties are continuously monitored and the aggregate value of transactions are spread among approvedcounterparties. The counterparties to the financial instruments are major international financial institutions.

The carrying amounts of financial assets recognised in the statement of financial position are disclosed in moredetail in notes 15, 16 and 18. This amount best represents the consolidated entity’s maximum exposure tocredit risk at the reporting date. In respect to those financial assets and the credit risk embodied within them,the consolidated entity holds no significant collateral as security and there are no other significant creditenhancements in respect of these assets. The credit quality of all financial assets that are neither past due norimpaired is in accordance with the Treasury Policy and is consistently monitored in order to identify anypotential adverse changes in the credit quality. There are no significant financial assets that have hadrenegotiated terms that would otherwise, without that renegotiation, have been past due or impaired.

(c) Liquidity risk

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

Prudent liquidity risk management includes the continuing availability of Commonwealth government funding,maintaining sufficient cash and marketable securities to meet short term needs, and the ability to close outmarket positions. Daily monitoring of cash flow is carried out by UNSW Treasury to ensure there is adequateliquidity to meet the Group’s expected obligations over the near term.

The Group and the parent entity held cash and cash equivalents of $97,080,000 and $54,967,000, respectivelyas at 31 December 2013 (2012: $73,306,000 and $41,177,000 respectively), which include deposits at call of$26,355,000 and $355,000, respectively (2012: $13,932,000 and $332,000 respectively), that are expected toreadily generate cash inflows for managing liquidity risk.

The tables below analyse the Group’s and the parent entity's financial liabilities into relevant maturity groupingsbased on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed inthe table are the contractual undiscounted cash flows, which may not reconcile to the statement of financialposition. For forward foreign exchange contracts the cash flows have been estimated using spot ratesapplicable at the reporting date.

65








(c) Liquidity risk (continued)Within 1 year 1 - 5 years 5+ years Total

2013

$'000

2012

$'000

2013

$'000

2012

$'000

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Consolidated

Sundry creditors 31,497 33,121 - - - - 31,497 33,121

Accrued expenses 41,878 31,388 - - - - 41,878 31,388

Other payables 1,028 851 - - - - 1,028 851

Monies held from associated parties 785 715 - - - - 785 715

ANZ bank loan 3,481 3,518 13,489 16,869 - - 16,970 20,387

Financing arrangement 3,018 2,930 13,004 12,626 54,787 58,183 70,809 73,739


- (inflow) (22,654) (25,350) (1,049) (1,022) - - (23,703) (26,372)

- outflow 22,515 25,169 1,137 995 - - 23,652 26,164

Total financial liabilities 81,548 72,342 26,581 29,468 54,787 58,183 162,916 159,993

Within 1 year 1 - 5 years 5+ years Total

2013

$'000

2012

$'000

2013

$'000

2012

$'000

2013

$'000

2012

$'000

2013

$'000

2012

$'000

Parent

Sundry creditors 27,454 29,200 - - - - 27,454 29,200

Accrued expenses 38,636 28,410 - - - - 38,636 28,410

Other payables 1,014 851 - - - - 1,014 851

Monies held from associated parties 706 706 - - - - 706 706

ANZ bank loan 3,481 3,518 13,489 16,869 - - 16,970 20,387

Financing arrangement 3,018 2,930 13,004 12,626 54,787 58,183 70,809 73,739


- (inflow) (22,654) (25,350) (1,049) (1,022) - - (23,703) (26,372)

- outflow 22,515 25,169 1,137 995 - - 23,652 26,164

Total financial liabilities 74,170 65,434 26,581 29,468 54,787 58,183 155,538 153,085

36 Fair value measurements

(a) Fair value measurements

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement orfor disclosure purposes.

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

Derivative financial instruments

Available-for-sale financial assets

Land and buildings (campus land, campus buildings, off-campus properties and leasehold

improvements)

Works of art

Rare books

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

66







36 Fair value measurements (continued)

(b) Fair value hierarchy

The Group categorises assets and liabilities measured at fair value into a hierarchy based on the level of inputsused in measurements.

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

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

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

(i) Recognised fair value measurements

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

Fair value measurements at 31 December 2013

Consolidated Note

2013

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000

Recurring fair value measurementsFinancial assets

Available-for-sale financial assets 18(a)

Unlisted unit trusts- Listed domestic equities 204,961 - 204,961 -

- Unlisted domestic/international fixedinterest 201,014 - 201,014 -

- Listed international equities 103,771 - 103,771 -

Listed equities 4 4 - -

Unlisted equities 7,585 - 3,576 4,009

Derivatives 18(c)


Total financial assets 517,970 4 513,957 4,009

Non-financial assets

Land and buildings 19

Campus land 258,803 - 258,803 -

Off-campus properties 167,722 - 167,722 -

Campus buildings 1,123,390 - 1,123,390 -

Leasehold improvements 11,832 - 11,832 -

Works of art 19 5,237 - 5,237 -

Rare books 19 11,987 - 11,987 -

Total non-financial assets 1,578,971 - 1,578,971 -


Derivatives 25


Total liabilities 472 - 472 -

67








(b) Fair value hierarchy (continued)


Consolidated Note

2012

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000

Recurring fair value measurements

Financial assets





Listed equities 9 9 - -

Unlisted equities 5,144 - 2,288 2,856

Derivatives 18(c)


Total financial assets 427,048 9 424,183 2,856


Derivatives 25




Parent






Unlisted equities 4,009 - - 4,009

Derivatives 18(c)


Total financial assets 505,596 - 501,587 4,009

Non-financial assets

Land and buildings 19

Campus land 258,803 - 258,803 -

Off-campus properties 167,722 - 167,722 -

Campus buildings 1,120,961 - 1,120,961 -

Leasehold improvements 11,634 - 11,634 -

Works of art 19 5,232 - 5,232 -

Rare books 19 11,987 - 11,987 -

Total non-financial assets 1,576,339 - 1,576,339 -


Derivatives 25



68








(b) Fair value hierarchy (continued)


Parent Note

2012

$'000

Level 1

$'000

Level 2

$'000

Level 3

$'000






Unlisted equities 2,856 - - 2,856

Derivatives 18(c)


Total financial assets 417,288 - 414,432 2,856


Derivatives 25



There were no transfers between levels 1, 2 and 3 for recurring and non-recurring fair value measurementsduring the year.

(ii) Disclosed fair values

The Group has a number of assets and liabilities which are not measured at fair value, but for which fair valuesare disclosed in the notes.

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, andavailable-for-sale listed securities) are based on quoted market prices on the Australian Securities Exchangefor identical assets or liabilities, at the balance sheet date, unless otherwise stated. The quoted market priceused for financial assets held by the Group is the current bid price, which is the most representative of fair valuein the circumstances. These instruments are included in level 1.

The carrying value less any impairment provision of short term financial assets, current receivables andpayables are assumed to approximate their fair values due to their short term nature.

The fair value of current borrowings approximates the carrying amount, as the impact of discounting is notsignificant (level 2). The carrying amounts of non-current borrowings at balance sheet date are approximate totheir fair value. The fair values of the financing arrangement are based on cash flows discounted at theborrowing rate of 6% (level 2).

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

(i) Recurring fair value measurements

The fair value of financial instruments that are not traded in an active market (for example, over-the-counterderivatives) are determined using valuation techniques. These valuation techniques maximise the use ofobservable market data where it is available and rely as little as possible on entity specific estimates. If allsignificant inputs required to fair value an instrument are observable, the instrument is included in level 2. Thisis the case for unlisted unit trusts.

69








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

If one or more of the significant inputs is not based on observable market data, the instrument is included inlevel 3. This is the case for some unlisted equities.

The Group uses a variety of methods and makes assumptions that are based on market conditions existing ateach balance date. Specific valuation techniques used to value financial instruments include:

the use of quoted market prices or dealer quotes for similar instruments;

quoted market bid prices declared by fund managers are used to estimate fair value for unlisted unit

trusts;

the fair value of forward foreign exchange contracts is determined using forward exchange rates at the

balance sheet date; and

other techniques, such as discounted cash flow analysis, are used to determined fair value for the

remaining financial instruments.

All of the resulting fair value estimates are included in level 2 except for some unlisted equities, explained in (d)below.

The level in the fair value hierarchy is determined on the basis of the lowest level input that is significant to themeasurement in its entirety.

Campus land, off-campus properties, work of art, rare books, campus buildings and leasehold improvementsare valued independently each year. At the end of each reporting period, the Group updates their assessmentof the fair value of each item, taking into account the most recent independent valuations.

The best evidence of fair value is current prices in an active market for similar properties. Where suchinformation is not available, the valuer considers information from a variety of sources including:

current prices in an active market for properties of a different nature or recent prices of similar properties

in less active markets, adjusted to reflect those differences; and

multiples derived from prices in observed transactions involving comparable buildings in similar locations

(e.g. price per square metre).

All resulting fair value estimates are included in level 2.

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

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

Consolidated

Level 3 Fair Value Measurements 2013

Unlistedequities

$'000

Total

$'000

Opening balance at 1 January 2,856 2,856

Net gains in other comprehensive income 1,153 1,153

Closing balance at 31 December 4,009 4,009


Opening balance at 1 January - -


Transfers into level 3 1 1


70








(d) Fair value measurements using significant unobservable inputs (level 3) (continued)

Parent


Unlistedequities

$'000

Total

$'000

Opening balance at 1 January 2,856 2,856



Level 3 Fair Value Measurement 2012

Opening balance at 1 January - -


Transfers into level 3 1 1


(i) Valuation inputs and relationships to fair value

The following table summarises the quantitative information about the significant unobservable inputs used inlevel 3 fair value measurements. See (c) above for the valuation techniques adopted.

Description Fair value at 31December 2013

$'000

Unobservable inputs1 Rangeof inputs

Relationship ofunobservable inputs to

fair value

Unlisted equities 4,009Discount attributed torestrictions on sale. 30%

The higher the discountrate, the lower the fairvalue.

1There were no significant inter-relationships between unobservable inputs that materially affect fair value

(ii) Valuation processes

UNSW engages external and qualified valuers to provide a valuation of the Group's unlisted equities at the endof every financial year.

71







37 Defined benefit plans

All employees of the Group are entitled to benefits from the Group's superannuation plan on retirement, disability ordeath. The Group's superannuation plan has defined benefits sections and defined contribution sections. The definedbenefit sections provide lump sum benefits based on years of service and final average salary. The definedcontribution section receives fixed contributions and the Group's legal or constructive obligation is limited to thesecontributions.

The following sets out details in respect of the parent entity defined benefit section only.

(a) Fund specific disclosure

(i) Nature of the benefits provided by the fund

State schemes (SSS, SANCS, SASS)The Schemes are closed to new members and provide active members with defined benefits. The Pooled Fundholds in trust the investments of the closed NSW public sector superannuation schemes.

- State Superannuation Scheme (SSS)- State Authorities Non-Contributory Superannuation Scheme (SANCS)- State Authorities Superannuation Scheme (SASS)

The above schemes are all defined benefit schemes or at least a component of the final benefit is derived froma multiple of member salary and years of membership. All schemes are closed to new members.

The Professorial Superannuation FundThe Fund is closed to new members and provides active members with a combination of accumulation benefitsand defined benefits based on professional salary levels. Pensioner members receive pension payments fromthe Fund based on professional salary levels.

(ii) Description of the regulatory framework

State schemes (SSS, SANCS, SASS)The schemes in the Pooled Fund are established and governed by the following NSW legislation:

- Superannuation Act 1916- State Authorities Superannuation Act 1987- Police Regulation (Superannuation) Act 1906- State Authorities Non-Contributory Superannuation Scheme Act 1987and their associated regulations.

The schemes in the Pooled Fund are exempt public sector superannuation schemes under the CommonwealthSuperannuation Industry (Supervision) Act 1993 (SIS). The SIS legislation treats exempt public sectorsuperannuation funds as complying funds for concessional taxation and superannuation guarantee purposes.

Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that thePooled Fund will conform to the principles of Commonwealth's retirement incomes policy relating topreservation, vesting and reporting to members and that those members' benefits are adequately protected.

The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Boardactivities in a manner consistent with the prudential controls of SIS legislation. These provisions are in additionto the other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board'sadherence to the principles of the Commonwealth's retirement incomes policy.

An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigationwas performed as at 30 June 2012.

Professorial Superannuation FundThe Fund is subject to the provisions of the Superannuation Industry (Supervision) Act 1993, the Income TaxAssessment Act 1997, and various other legislation and regulation applicable to Australian superannuationfunds. Any surplus Fund assets are subject to a limit of the asset ceiling. Under Superannuation Guaranteelaws, employers are required to make a minimum contribution of 9.25% of gross Ordinary Times Earnings into afund for active members or to provide a minimum level of defined benefit.

72







37 Defined benefit plans (continued)

(a) Fund specific disclosure (continued)

(iii) Description of other entities' responsibilities for the governance of the funds

State Schemes (SSS, SANCS, SASS)The Fund's Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to actsolely in the best interests of fund beneficiaries. The Trustee has the following roles:

- Administration of the Fund and payment to the beneficiaries from Fund assets when required in accordancewith the Fund rules;- Management and investment of the Fund assets; and - Compliance with other applicable regulations.

Professorial Superannuation FundThe Fund's Trustee is responsible for the prudential operation of the Fund and is required to act in the bestinterest of all members.

(iv) Description of risks

State Schemes (SSS, SANCS, SASS)There are a number of risks to which the Fund exposes the entity. The more significant risks relating to definedbenefits are:

- Investment risk - The risk that investment returns will be lower than assumed and the Group will need toincrease contributions to offset this shortfall.- Longevity risk - The risk that pensioners live longer than assumed.- Pension indexation risk - The risk that pensions will increase at a rate greater than assumed, increasing futurepensions.- Salary growth risk - The risk that wages or salaries (on which future benefit amounts for active members willbe based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiringadditional employer contributions.- Legislation risk - The risk that legislative changes could be made which increases the cost of providing thedefined benefits.

The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix.Each Fund has no significant concentration of investment risk or liquidity risk. The Trustees of the Fund are notaware of any asset and liability matching strategies currently adopted by the plans to manage risk.

Professorial Superannuation FundWhilst the Fund remains an ongoing arrangement the main risk to the Group is the need to make additionalcontributions to the Fund resulting from adverse investment experience, members and their spouses livinglonger than expected, salary increases being greater than expected and Fund expenses being greater thanexpected and allowed for in the recommended contribution rate.

(v) Description of any plan amendments, curtailments and settlements

State Schemes (SSS, SANCS, SASS)There were no amendments, curtailments or settlements during the year.

Professorial Superannuation FundThere were no amendments, curtailments or settlements during the year.

(vi) Funding arrangements

State Schemes (SSS, SANCS, SASS)Funding arrangements are reviewed at least every three years following the release of the triennial actuarialreview and were last reviewed following completion of the triennial review as at 30 June 2012. Contributionrates are set after discussions between the Group, SAS Trustee Corporation (STC) and NSW Treasury.Funding positions are reviewed annually and funding arrangements may be adjusted as required after eachannual review.

Professorial Superannuation FundFunding arrangements are reviewed every three years, with the latest review being December 2010. The parententity contributes to the Fund at the rate of 22.4 times Professorial Salary (including an allowance forexpenses), based on the Actuarial Funding Valuation as at 31 December 2010. The valuation for December2013 commences in early 2014.

73








(a) Fund specific disclosure (continued)

(vii) Expected contributions

The Parent expects to make a contribution of $8,871,000 (2012: $8,832,000) to the defined benefit plans duringthe next financial year.

(viii) Maturity profile

The weighted average duration of the State Schemes defined benefit obligation range between 10.7 years to12.3 years.

The weighted average duration of the Professorial Superannuation Fund defined benefit obligation is 7 years.

(b) Categories of plan assets

State Schemes (SSS, SANCS, SASS)

All Pooled Fund assets are invested by STC at arm's length through independent fund managers and assetsare not separately invested for each entity. As such, the disclosures below relate to total assets of the PooledFund.

The analysis of the plan assets as at 31 December 2013 is as follows:

$'000

Total

Quoted pricesin active markets

for identical assetsLevel 1

Significantobservable

inputsLevel 2

Unobservableinputs

Level 3

Assets category

Short term securities 3,099,598 1,984,408 1,115,190 -

Australian fixed interest 1,686,348 6,734 1,679,614 -

International fixed interest 835,280 - 835,280 -

Australian equities 13,092,913 12,876,543 216,206 164

International equities 10,944,453 8,307,700 2,636,045 708

Property 3,148,735 800,135 680,854 1,667,746

Alternatives 5,862,620 525,243 2,448,886 2,888,491

Total 38,669,947 24,500,763 9,612,075 4,557,109

Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in this level are listed shares and listedunit trusts.Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in thislevel are cash, notes, government, semi-government and corporate bonds, unlisted trusts where quoted prices are availablein active markets for identical assets or liabilities.Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlistedproperty, unlisted shares, unlisted infrastructure, distressed debt and hedge funds.

The fair value of the Pooled Fund assets includes $184,800,000 in NSW Government bonds.

74








(b) Categories of plan assets (continued)

Professorial Superannuation Fund

The analysis of the plan assets as at 31 December 2013 is as follows:

$'000

Total

Quoted pricesin active markets

for identical assetsLevel 1

Significantobservable

inputsLevel 2

Unobservableinputs

Level 3

Asset category

Cash and Cash Equivalents 629 629 - -

Equity instruments 24,239 24,239 - -

Debt securities 17,014 17,014 - -

Total 41,882 41,882 - -

Level 1 - quoted prices in active markets for identical assets or liabilities. The Fund's assets are invested in various portfolioswhere unit price changes occur on a daily basis and cash is held in an account with Bendigo Bank. On this basis, it is notunreasonable to assume the Fund's assets are traded in an active market.

The fair value of the plan assets does not include amounts relating to any of the controlling entity's ownfinancial instruments and any property occupied by, or other assets used by, the controlling entity.

(c) Actuarial assumptions and sensitivity

(i) Significant actuarial assumptions

The principal assumptions used for the purposes of the actuarial valuations were as follows (expressed asweighted averages):

2013

%

2012

%

State schemes (SSS, SANCS, SASS)

Discount rate 4.27 3.30

Expected rate(s) of salary inflation 2.00 to 3.50 2.50

Expected rate of CPI inflation 2.50 2.50

Professorial Superannuation Fund

Discount rate 4.00 3.20

Expected rate(s) of salary inflation 4.00 4.00

Expected rate of CPI inflation 2.75 2.75

75








(c) Actuarial assumptions and sensitivity (continued)

(ii) Sensitivity analysis

The sensitivity of the defined benefit obligation to change in the significant assumptions is as follows:

State schemes (SSS, SANCS, SASS)Change in

assumptionIncrease inassumption

Decrease inassumption

Discount rate 1.00% -9.64% 11.55%

Expected rate of salary inflation 0.50% 0.33% -0.32%

Expected rate of CPI inflation 0.50% 5.14% -4.73%

Professorial Superannuation FundChange in

assumptionIncrease inassumption

Decrease inassumption

Discount rate 0.50% -4.45% 4.79%

Expected rate of salary inflation 0.50% 4.79% -4.45%

Expected rate of CPI inflation Nil Nil Nil

The above sensitivity analyses are based on a change in an assumption while holding all the other assumptionsconstant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated.When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the samemethod has been applied as when calculating the defined benefit liability recognised in the statement offinancial position.

Comparative information has not been provided for the sensitivity analyses as permitted by the transitionalprovisions of the revised standard.

76








(d) Financial impact on funds guaranteed by the Commonwealth Government1

Present value of obligations - 2013

$'000

SASS

$'000

SSS

$'000

Total

Opening defined benefit obligation 85,376 1,271,849 1,357,225

Current service cost 2,877 1,962 4,839

Interest expense 2,668 40,876 43,544

Remeasurements

Actuarial losses arising from changes inexperience assumptions 8,459 807 9,266

Actuarial gains arising from changes infinancial assumptions (3,111) (127,957) (131,068)

Contributions

From plan participants 1,273 1,806 3,079

Benefits paid (6,022) (59,766) (65,788)

Closing defined benefit obligation 91,520 1,129,577 1,221,097

Fair value of plan assets - 2013

Opening fair value of plan assets 66,473 151,050 217,523

Remeasurements

Return on plan assets less interest income 11,938 23,380 35,318

Interest income 2,045 3,889 5,934

Contributions

From the employer 2,740 1,399 4,139


Benefits paid (6,022) (59,766) (65,788)

Closing fair value of plans assets 78,447 121,758 200,205

Reimbursement rights - 2013

Opening value of reimbursement rights 17,770 1,040,949 1,058,719

Expected return on reimbursement rights 3,245 36,069 39,314

Remeasurements (5,895) (139,328) (145,223)

Contributions from the employer (2,532) (1,271) (3,803)

Closing value of reimbursement rights2 12,588 936,419 949,007

Net liability - 2013

Present value of defined benefit obligations 91,520 1,129,577 1,221,097

Fair value of plan assets (78,447) (121,758) (200,205)

Net liability arising from defined benefitobligations 13,073 1,007,819 1,020,892

Reimbursement rights (12,588) (936,419) (949,007)

Total net liability representing UNSWCanberra at ADFA 485 71,400 71,885

77








(d) Financial impact on funds guaranteed by the Commonwealth Government(continued)1


$'000

SASS

$'000

SSS

$'000

Total

Opening defined benefit obligation 79,714 1,209,037 1,288,751

Current service cost 2,795 2,170 4,965

Interest expense 2,780 43,514 46,294

Remeasurements

Actuarial losses arising from changes indemographic assumptions 115 27,650 27,765

Actuarial losses/(gains) arising from changesin experience assumptions 5,266 (10,799) (5,533)

Actuarial losses arising from changes infinancial assumptions 1,318 57,752 59,070

Contributions


Benefits paid (7,879) (59,461) (67,340)

Closing defined benefit obligation 85,376 1,271,849 1,357,225



Remeasurements

Return on plan assets less interest income 6,690 16,737 23,427

Interest income 2,108 5,942 8,050

Contributions

From the employer 2,735 (7,735) (5,000)


Benefits paid (7,879) (59,461) (67,340)


Reimbursement rights - 2012

Opening value of reimbursement rights 17,044 943,268 960,312

Expected return on reimbursement rights 3,197 36,813 40,010

Remeasurements 46 52,972 53,018

Contribution from the employer (2,517) 7,896 5,379

Closing value of reimbursement rights2 17,770 1,040,949 1,058,719


Present value of defined benefit obligations 85,376 1,271,849 1,357,225


Net liability arising from defined benefitobligations 18,903 1,120,799 1,139,702

Reimbursement rights (17,770) (1,040,949) (1,058,719)

Total net liability representing UNSWCanberra at ADFA 1,133 79,850 80,983

1 The financial impact on funds guaranteed by the Commonwealth Government is in respect of the parent entity definedbenefits only. This results in a difference between the closing value of the net liability arising from defined benefit obligationsand re-imbursement right per note 37 and the closing value per note 24 and note 16 respectively. The difference is$1,542,000 and is attributable to the funds guaranteed by the Commonwealth Government in respect of UNSW Global'sdefined benefits.

78








(d) Financial impact on funds guaranteed by the Commonwealth Government(continued)1

2 $939,507,000 (2012: $1,049,219,000) of the net liabilities for superannuation funds is payable by the CommonwealthGovernment. This is based on the net liabilities of the State Authorities Superannuation Scheme of $13,073,000 (2012:$18,903,000) and the net liabilities of the State Superannuation Scheme of $1,007,819,000 (2012:$1,120,799,000) less thenet liabilities of the superannuation funds of UNSW Canberra at ADFA totalling $71,885,000 (2012: $80,983,000) and net of aprovision of $9,500,000 representing a transfer of reserves from SSS to SANCS during the year ended 31 December 2012.Refer to note 16, 1(a)(i) and 1(x)(iv) for further details.

The amount of $25,535,000 contributed by the Commonwealth Government in 2004 for UNSW Canberra at ADFA ismanaged as part of the pool of general investments of the Group. These funds are included as part of available-for-salefinancial assets disclosed in the statement of financial position, refer to note 18.

If a net surplus exists in a Fund, the Group may be able to take advantage of it in the form of a reduction in therequired contribution rate, depending on the advice of the Fund's actuary.

Where a net deficiency exists, the Group is responsible for any difference between the employer's share of fundassets and the defined benefit obligation, except for SASS and SSS (as described above) where the differencewill be ultimately borne by the Commonwealth Government.

(e) Financial impact on other funds


$'000

SANCS

$'000

PSF

$'000

Total

Opening defined benefit obligation 17,995 54,104 72,099

Current service cost 715 1,224 1,939

Interest expense 564 1,222 1,786

Remeasurements

Actuarial losses/(gains) arising from changesin experience assumptions (4) 1,108 1,104

Actuarial gains arising from changes infinancial assumptions (791) (3,790) (4,581)

Contributions

From plan participants - 5 5

Benefits paid (1,970) (5,478) (7,448)

Closing defined benefit obligation 16,509 48,395 64,904



Remeasurements

Return on plan assets less interest income (1,025) 5,723 4,698

Interest income 426 1,149 1,575

Contributions

From the employer 466 3,678 4,144


Benefits paid (1,970) (5,478) (7,448)



Present value of defined benefit obligations 16,509 48,395 64,904


Total net liability 7,262 6,513 13,775

79








(e) Financial impact on other funds (continued)


$'000

SANCS

$'000

PSF

$'000

Total

Opening defined benefit obligation 18,030 56,180 74,210

Current service cost 734 928 1,662

Interest expense 612 1,476 2,088

Remeasurements

Actuarial gains arising from changes indemographic assumptions (73) - (73)

Actuarial losses arising from changes inexperience assumptions 911 1,747 2,658

Actuarial losses/(gains) arising from changesin financial assumptions 423 (1,109) (686)

Contributions


Benefits paid (2,642) (5,124) (7,766)

Closing defined benefit obligation 17,995 54,104 72,099



Remeasurements

Return on plan assets less interest income 882 3,066 3,948

Interest income 134 1,200 1,334

Contributions

From employer 10,419 3,536 13,955


Benefits paid (2,642) (5,124) (7,766)



Present value of defined benefit obligations 17,995 54,104 72,099


Total net liability 6,645 17,299 23,944

80








(e) Financial impact on other funds (continued)

UniSuper

The parent entity also contributes to the UniSuper Defined Benefit Division (UniSuper), formerly known as theSuperannuation Scheme for Australian Universities (SSAU), for academic staff appointed since 1 March 1988and for all other staff from 1 July 1991.

As at 30 June 2013, the assets of the Defined Benefit Division (DBD) in aggregate were estimated to be$691,000,000 (2012: $2,010,800,000) in deficiency of vested benefits. The vested benefits are benefits whichare not conditional upon continued membership (or any factor other than leaving the service of the participatinginstitution) and include the value of indexed pensions being provided by the DBD.

As at 30 June 2013 the assets of the DBD in aggregate were estimated to be $861,000,000 above accruedbenefits (2012: $906,800,000 deficit). The accrued benefits have been calculated as the present value ofexpected future benefit payments to members and indexed pensioners which arise from membership ofUniSuper up to the reporting date.

Clause 34 was initiated following the 31 December 2008, 30 June 2011 and 30 June 2012 actuarialinvestigations and it has again been initiated following the 30 June 2013 actuarial investigation. Following theend of the monitoring period commenced in relation to the 31 December 2008 actuarial investigation, theUniSuper Limited Board made a decision not to reduce accrued benefits but to reduce the rate at whichbenefits accrue in respect of the DBD membership after 1 January 2015.

The vested benefit and accrued benefit liabilities were determined by the Fund's actuary, Russell EmployeeBenefits, using the actuarial demographic assumptions outlined in their report dated 14 November 2013 on theactuarial investigation of the DBD as at 30 June 2013.

Other superannuation schemes

The Group also contributes to the Commonwealth Superannuation Scheme. This superannuation scheme isfully funded. The Commonwealth Government has ultimate funding risk when members retire.

38 Events occurring after the balance sheet date

Subsequent to 31 December 2013, UNSW has appointed financiers to provide committed bi-lateral revolving bankloan facilities totalling $250 million to be drawn down as required. The loan facilities are currently being documentedand will be settled shortly.

81




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tal

Pare

nt

No

te

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

Fin

anci

al a

ssis

tance

rece

ived in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ived fro

m the A

ust

ralia

n G

ove

rnm

ent fo

rth

e p

rogra

m)

--

-252

387

289

1,2

05

1,2

00

260,4

02

255,3

80

Net acc

rual a

dju

stm

ents

--

--

--

--

4,8

55

(5,1

85)

Reve

nue for

the p

eriod

2(a

)-

--

252

387

289

1,2

05

1,2

00

265,2

57

250,1

95

Surp

lus/

(defic

it) fro

m the p

revi

ous

year

-130

--

170

--

-7,4

04

10,2

58

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

-130

-252

557

289

1,2

05

1,2

00

272,6

61

260,4

53

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s-

(130)

-(2

52)

(557)

(119)

(1,2

05)

(1,2

00)

(270,3

10)

(253,0

49)

Surp

lus/

(defic

it) for

the r

eport

ing p

eriod

--

--

-170

--

2,3

51

7,4

04

1 I

nclu

de

s E

qu

ity S

up

po

rt P

rog

ram

.

83

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7 A

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2014

A

gend

a Ite

m 8

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No

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to t

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fin

anci

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men

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Dec

embe

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2013

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na

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sis

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2012

$'0

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2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

Cash

Paya

ble

/(R

ece

ivable

) at th

e b

egin

nin

g o

f th

eye

ar

3,9

55

1,4

64

383

2,3

38

(103)

-4,2

35

3,8

02

Fin

anci

al a

ssis

tance

rece

ived in

cash

during the

report

ing p

eriod

142,5

96

122,4

25

35,5

87

30,7

03

2,0

30

1,6

18

180,2

13

154,7

46

Cash

ava

ilable

for

the p

eriod

146,5

51

123,8

89

35,9

70

33,0

41

1,9

27

1,6

18

184,4

48

158,5

48

Reve

nue e

arn

ed

2(b

)146,4

27

119,9

34

36,1

68

32,6

58

2,2

14

1,7

21

184,8

09

154,3

13

Cash

Paya

ble

/(R

ece

ivable

) at th

e e

nd o

f th

e y

ear

124

3,9

55

(198)

383

(287)

(103)

(361)

4,2

35

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7 A

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2014

A

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men

ts31

Dec

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Fo

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2013

39

Acq

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Au

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tan

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(c

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Researc

hS

ch

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on

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hE

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2

Co

mm

on

wealt

hA

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mm

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ati

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Sch

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Ind

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ola

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To

tal

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nt

No

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2013

$'0

00

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$'0

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$'0

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2012

$'0

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2013

$'0

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2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

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2013

$'0

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2012

$'0

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Fin

anci

al a

ssis

tance

rece

ived in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ived fro

m the A

ust

ralia

n G

ove

rnm

ent fo

rth

e p

rogra

m)

22,8

90

20,8

47

1,9

33

1,8

58

(1,0

81)

747

(48)

109

(13)

31

23,6

81

23,5

92

Net acc

rual a

dju

stm

ents

--

--

1,0

81

(744)

48

(31)

13

(13)

1,1

42

(788)

Reve

nue for

the p

eriod

2(c

)22,8

90

20,8

47

1,9

33

1,8

58

-3

-78

-18

24,8

23

22,8

04

Surp

lus/

(defic

it) fro

m the p

revi

ous

year

1,8

39

908

(362)

(40)

-242

--

--

1,4

77

1,1

10

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

24,7

29

21,7

55

1,5

71

1,8

18

-245

-78

-18

26,3

00

23,9

14

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s(2

2,0

18)

(19,9

16)

(2,0

65)

(2,1

80)

-(2

45)

-(7

8)

-(1

8)

(24,0

83)

(22,4

37)

Surp

lus/

(defic

it) for

the r

eport

ing p

eriod

2,7

11

1,8

39

(494)

(362)

--

--

--

2,2

17

1,4

77

2 I

ncl

ud

es

Gra

nd

fath

ere

d S

cho

lars

hip

s a

nd

Na

tion

al P

rio

rity

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7 A

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2014

A

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men

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Dec

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Fo

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2013

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2013

$'0

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2012

$'0

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2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

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2012

$'0

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Fin

anci

al a

ssis

tance

rece

ived in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ived fro

m A

ust

ralia

n G

ove

rnm

ent fo

r th

epro

gra

m)

30,1

97

31,4

81

62,1

98

59,1

55

19,9

07

22,8

80

--

15,1

48

16,5

12

--

127,4

50

130,0

28

Net acc

rual a

dju

stm

ents

--

--

--

--

--

--

--

Reve

nue for

the p

eriod

2(d

)30,1

97

31,4

81

62,1

98

59,1

55

19,9

07

22,8

80

--

15,1

48

16,5

12

--

127,4

50

130,0

28

Surp

lus/

(defic

it) fro

m the p

revi

ous

year

--

--

--

-291

-500

-107

-898

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

30,1

97

31,4

81

62,1

98

59,1

55

19,9

07

22,8

80

-291

15,1

48

17,0

12

-107

127,4

50

130,9

26

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s(3

0,1

97)

(31,4

81)

(62,1

98)

(59,1

55)

(19,9

07)

(22,8

80)

-(2

91)

(15,1

48)

(17,0

12)

-(1

07)

(127,4

50)

(130,9

26)

Surp

lus/

(defic

it) for

the r

eport

ing p

eriod

--

--

--

--

--

--

--

3 I

nclu

de

s I

nstitu

tio

na

l G

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ts S

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86

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7 A

pril

2014

A

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No

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to t

he

fin

anci

al s

tate

men

ts31

Dec

embe

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3T

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2013

39

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sis

tan

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Ca

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Fu

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Teach

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2013

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2012

$'0

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Fin

anci

al a

ssis

tance

rece

ived in

CA

SH

during the r

eport

ing p

eriod (

tota

l cash

rece

ived fro

m the A

ust

ralia

n G

ove

rnm

ent fo

rth

e p

rogra

m)

--

7,9

50

18,2

00

7,9

50

18,2

00

Net acc

rual a

dju

stm

ents

--

(500)

(373)

(500)

(373)

Reve

nue for

the p

eriod

2(e

)-

-7,4

50

17,8

27

7,4

50

17,8

27

Surp

lus/

(defic

it) fro

m the p

revi

ous

year

-3,4

64

7,1

21

14,6

09

7,1

21

18,0

73

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

-3,4

64

14,5

71

32,4

36

14,5

71

35,9

00

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s-

(3,4

64)

(8,7

06)

(25,3

15)

(8,7

06)

(28,7

79)

Surp

lus/

(defic

it) for

the r

eport

ing p

eriod

--

5,8

65

7,1

21

5,8

65

7,1

21

87

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

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No

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to t

he

fin

anci

al s

tate

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ts31

Dec

embe

r 201

3T

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sta

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Fo

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2013

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tan

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2013

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2012

$'0

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2013

$'0

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2012

$'0

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Fin

anci

al a

ssis

tance

rece

ived in

CA

SH

during the

report

ing p

eriod (

tota

l cash

rece

ived fro

m the

Aust

ralia

n G

ove

rnm

ent fo

r th

e p

rogra

m)

36,6

50

34,9

53

15,5

41

18,0

14

751

454

52,9

42

53,4

21

Net acc

rual a

dju

stm

ents

(1,1

89)

(1,3

12)

58

(209)

(7)

(7)

(1,1

38)

(1,5

28)

Reve

nue for

the p

eriod

2(f

)(i)

35,4

61

33,6

41

15,5

99

17,8

05

744

447

51,8

04

51,8

93

Surp

lus/

(defic

it) fro

m the p

revi

ous

year

19,4

71

13,0

46

10,9

65

7,2

81

272

(1)

30,7

08

20,3

26

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

54,9

32

46,6

87

26,5

64

25,0

86

1,0

16

446

82,5

12

72,2

19

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s(3

5,7

13)

(27,2

16)

(16,0

05)

(14,1

21)

(300)

(174)

(52,0

18)

(41,5

11)

Surp

lus/

(defic

it) for

the r

eport

ing p

eriod

19,2

19

19,4

71

10,5

59

10,9

65

716

272

30,4

94

30,7

08

88

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

.1


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tes

to t

he

fin

anci

al s

tate

men

ts31

Dec

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3T

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to

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sta

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Fo

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31 D

ecem

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2013

39

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of

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str

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co

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)In

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al

Pro

jects

To

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Pare

nt

No

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2013

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$'0

00

2013

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2012

$'0

00

2013

$'0

00

2012

$'0

00

2013

$'0

00

2012

$'0

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Fin

anci

al a

ssis

tance

rece

ived in

CA

SH

during the

report

ing p

eriod (

tota

l cash

rece

ived fro

m the

Aust

ralia

n G

ove

rnm

ent fo

r th

e p

rogra

m)

3,7

25

3,3

15

--

13,8

59

15,3

89

17,5

84

18,7

04

Net acc

rual a

dju

stm

ents

-(9

7)

--

(319)

(896)

(319)

(993)

Reve

nue for

the p

eriod

2(f

)(ii)

3,7

25

3,2

18

--

13,5

40

14,4

93

17,2

65

17,7

11

Surp

lus/

(defic

it) fro

m the p

revi

ous

year

3,2

21

4,1

05

58

75

10,3

94

11,2

87

13,6

73

15,4

67

Tota

l reve

nue in

cludin

g a

ccru

ed r

eve

nue

6,9

46

7,3

23

58

75

23,9

34

25,7

80

30,9

38

33,1

78

Less

exp

ense

s in

cludin

g a

ccru

ed e

xpense

s(3

08)

(4,1

02)

(58)

(17)

(14,5

03)

(15,3

86)

(14,8

69)

(19,5

05)

Surp

lus/

(defic

it) for

the r

eport

ing p

eriod

6,6

38

3,2

21

-58

9,4

31

10,3

94

16,0

69

13,6

73

89

UN

SW

Cou

ncil

7 A

pril

2014

A

gend

a Ite

m 8

.1


No

tes

to t

he

fin

anci

al s

tate

men

ts31

Dec

embe

r 201

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39 Acquittal of Australian Government financial assistance (continued)

(g) OS-HELP

Parent Note

2013

$'000

2012

$'000

Cash received during the reporting period 2,451 1,935

Cash spent during the reporting period (2,755) (1,995)

Net cash received 2(h) (304) (60)

Cash surplus/(deficit) from the previous period (27) 33

Cash surplus/(deficit) for the reporting period (331) (27)

(h) Student Services and Amenities Fee

Parent Note

2013

$'000

2012

$'000

Unspent/(overspent) revenue from previous period - -

SA-HELP Revenue Earned 2(b) 2,214 1,721

Student Services and Amenities Fee 4 4,727 4,606

Total revenue expendable in period 6,941 6,327

Student services expenses during period (6,941) (6,327)

Unspent/(overspent) student services revenue - -

END OF THE AUDITED FINANCIAL REPORT

91




Budget Actual Budget

2013 2013 2014

$'000 $'000 $'000

Revenue from continuing operations

Australian Government financial assistance

Australian Government grants 672,415 697,857 769,092

HELP - Australian Government payments 198,740 184,809 169,896

State and Local Government financial assistance 37,379 33,416 41,117

HECS-HELP - Student payments 41,512 31,519 45,663

Fees and charges 468,812 435,379 510,818

Investment revenue 25,603 41,984 17,735

Royalties, trademarks and licences 5,628 4,025 4,284

Consultancy and contracts 1,037 56,217 -

Other revenue 26,690 45,696 26,675

Total revenue from continuing operations 1,477,816 1,530,902 1,585,280

Gains on disposal of assets - 9 -

Other income 18,007 12,215 8,535

Total other income from continuing operations 18,007 12,224 8,535

Total revenue and income from continuing operations 1,495,823 1,543,126 1,593,815

Expenses from continuing operations

Employee related expenses 852,321 829,994 913,723

Depreciation and amortisation 116,562 121,271 129,706

Repairs and maintenance 34,356 30,186 33,396

Borrowing costs 4,246 3,314 5,454

Impairment of assets - 739 824

Losses on disposal of assets 79 461 1

Deferred employment benefits for superannuation (2) 2,800 -

Other expenses 478,548 452,556 485,143

Total expenses from continuing operations 1,486,110 1,441,321 1,568,247

Operating result before income tax from continuing operations 9,713 101,805 25,568

Supplementary InformationFor the year ended 31 December 2013 (Parent entity only)


Investment and investment performance (Parent entity only)

UNSW’s investments are allocated to the following investment Pools:

• Pool L and Pool E: long-term investment funds with an investment horizon of more than two years. Both Pools have the same asset allocation, the components of which were managed during the year by the same six external fund managers;

• Pool S: UNSW’s liquidity and working capital reserve with an investment horizon of less than two years. Pool S is managed internally by UNSW Treasury and Investment Services; and

• Pool P: principally student accommodation and residential properties (95%) and significant venture initiatives (5%). Student accommodation investments are held for strategic purposes and are managed by the UNSW’s Strategic Property Group. These properties are not classified as investment properties under current accounting standards.

In accordance with the Annual Report (Statutory Bodies) Act 1984 and its regulation 2005, the performance of Pool L, E and S are measured in the table below against NSW Treasury Corporation Facilities. It is not appropriate for Pool P’s performance to be benchmarked in this way as it is a project fund and its investment criteria and horizon differ markedly from any of the NSW Treasury Corporation’s facilities.

Fund Manager

(i)Return for 12 months to 31/12/2013

(ii)Treasury Corporation Facility

Performance for 12 months to

31/12/2013

(i)Return for 12 months to 31/12/2012

(ii)Treasury Corporation Facility

Performance for 12 months to

31/12/2012

% % % %

Pool L & E External 19.16 19.54 15.30 13.52

Pool S Internal 4.35 3.12 5.49 4.42

(i) The investment returns for Pool L and E are calculated as the change in market value of investments from the beginning of the year to the end of the year. The return for Pool S is the weighted average yield achieved.

(ii) The weighted average of the performance of the NSW Treasury Corporation medium term (25%) and long term facilities (75%) is employed for the Pool L and Pool E comparison. This weighting reflects the strategic asset allocation of the Pools. The long term investment performance shown above does not include refunds from the ATO in respect of franking credits. Franking credits contribute approximately 0.5% in additional return.

Account payment performance (Parent entity only)

Total accounts paid on time Total amount paid

Target(i) % Actual(i) % $’000 $’000

2012

January - March 70 67 117,604 175,717

April - June 70 76 164,205 205,198

July - September 70 79 171,671 213,833

October - December 70 82 214,995 256,022

2013

January - March 70 73 122,191 181,353

April - June 70 79 153,468 216,326

July - September 70 80 151,496 202,691

October - December 70 85 219,471 266,069

(i) The % is based on the number of transactions processed and not on monetary terms.




Land Appendix (Parent entity only)

In accordance with Section 41B 1(d) of the Public Finance and Audit Act, below is the unaudited Land Appendix to the Financial Statements of the University of New South Wales, referred to as ‘UNSW’, for the year ended 31 December 2013.

Land Use

Land Value 2013

$’000

Land Value 2012

$’000

T Teaching, Research and other University purposes 287,994 273,196

A Student Accommodation 28,790 26,840

LR Leased to residential tenants 37,083 27,474

LC Leased to commercial tenants 32,287 30,689

386,154 358,199

The total value of land owned or occupied is higher than the land value recognised within the categories “Land” and “Student Accommodation” in the Statement of Financial Position. The value of the Land disclosed in the Statement of Financial Position has been adjusted for impairment.


Statutory Report 2013



Disclosure RequirementsPerformance Payments of Executive Officers

Performance payments for the senior executive officers of the University are approved by the Nominations and Remuneration Committee of the University Council.

NAME Professor Fred Hilmer

POSITION President and Vice-Chancellor

BASE REMUNERATION $933,118

EMPLOYER SUPERANNUATION $14,014

PERFORMANCE PAY* Not applicable

PERIOD IN POSITION Full year (1/1/2013 – 31/12/2013)

PERFORMANCE ACHIEVEMENTS Met and/or exceeded performance expectations as determined by University Council and consistent with the UNSW statement of Strategic Intent, Blueprint to Beyond. In assessing performance, Council makes determinations of achievements in the context of the University’s strategic objectives; leadership behaviour that evidences UNSW values; and important additional achievements and services to the University consistent with the contract of employment.

NAME Professor Iain Martin

POSITION Vice-President and Deputy Vice-Chancellor (Academic)



PERFORMANCE PAY** Not applicable


PERFORMANCE ACHIEVEMENTS Met and/or exceeded performance expectations as determined by the Vice-Chancellor and reported to the Nominations and Remuneration Committee of Council, with particular emphasis on success in recruiting high-quality students and ensuring a high-quality learning experience. In assessing performance, the Vice-Chancellor makes determinations of achievements in the context of the University’s strategic objectives; leadership behaviour that evidences UNSW values; and important additional achievements and services to the University consistent with the contract of employment.

NAME Professor Les Field

POSITION Vice-President and Deputy Vice-Chancellor



ACCUMULATED LEAVE ENTITLEMENTS

PAID OUT AT END OF CONTRACT

$255,602

PERFORMANCE PAY*** $87,721


PERFORMANCE ACHIEVEMENTS Met and/or exceeded performance expectations as determined by the Vice-Chancellor and reported to the Nominations and Remuneration Committee of Council, with particular reference to improving the University’s overall research performance. In approving performance payments, the Vice-Chancellor makes determinations of achievements in the context of the University’s strategic objectives; leadership behaviour that evidences UNSW values; and important additional achievements and services to the University consistent with the contract of employment.



* The terms of the employment contract for Fred Hilmer provided for fixed remuneration only in 2013** Iain Martin not eligible for a performance payment in 2013*** Performance payments made in 2013 relate to performance in 2012.

NAME Jonathan Blakeman

POSITION Vice-President, Finance and Operations





PERFORMANCE ACHIEVEMENTS Met and/or exceeded performance expectations as determined by the Vice-Chancellor and reported to the Nominations and Remuneration Committee of Council, with particular reference to ensuring effective financial performance management across the University and delivery of major building and IT projects on time and on budget. In approving performance payments, the Vice-Chancellor makes determinations of achievements in the context of the University’s strategic objectives; leadership behaviour that evidences UNSW values; and important additional achievements and services to the University consistent with the contract of employment.

NAME Jennifer Lang

POSITION Vice-President, Advancement and CEO, UNSW Foundation





PERFORMANCE ACHIEVEMENTS Met and/or exceeded performance expectations as determined by the Vice-Chancellor and reported to the Nominations and Remuneration Committee of Council, with particular reference to meeting target for donations and strong community engagement activities. In approving performance payments, the Vice-Chancellor makes determinations of achievements in the context of the University’s strategic objectives; leadership behaviour that evidences UNSW values; and important additional achievements and services to the University consistent with the contract of employment.

NAME Neil Morris

POSITION Vice-President, University Services



VALUE OF LEAVE CASHED OUT DURING 2013

$12,355



PERFORMANCE ACHIEVEMENTS Met and/or exceeded performance expectations as determined by the Vice-Chancellor and reported to the Nominations and Remuneration Committee of Council, with particular reference to building leadership capability across the University, new accommodation services and driving outcomes around improving the student experience. In approving performance payments, the Vice-Chancellor makes determinations of achievements in the context of the University’s strategic objectives; leadership behaviour that evidences UNSW values; and important additional achievements and services to the University consistent with the contract of employment.



Access to Information and PrivacyGovernment Information (Public Access) Act 2009 (NSW)

Under section 125 of the Government Information (Public Access) Act 2009 (NSW) (“the Act”) and clause 7 of the Government Information (Public Access) Regulation 2009 (NSW), the University is required to report annually on its obligations under the Act. The required statistical information on 2013 access applications to the University follows.

Review of proactive release program

Under section 7 of the GIPA Act, the University must review its program for the release of government information to identify the kinds of information that can be made publicly available. This review must be undertaken at least once every 12 months.

The University’s program for the proactive release of information involves making much of the information that it holds freely available via the University’s website. Information available from the website includes:

- the statement of UNSW strategic intent – B2B Blueprint to Beyond, which sets out the enduring and overarching strategy for the University

- details of the governance and management structure of the University

- the latest UNSW Annual Report (plus access to previous Annual Reports)

- a range of publications that document the activities of the University, including Research@UNSW (showcasing the breadth and depth of the University’s many research achievements), UNSWorld (biannual alumni and community magazine) and Uniken (quarterly magazine for staff, students and visitors that reports on the latest developments in UNSW’s research and teaching)

- the UNSW Handbook, that contains the rules and procedures relating to the University’s undergraduate and postgraduate programs

- listing and full text access to UNSW policies, procedures and guidelines.

During the reporting period, we reviewed this program by:

- assessing the information requested under formal access applications to determine if such information could be made available to the public by proactive or informal release

- assessing the information requested informally to determine if such information could be made available to the public by proactive release.

As a result of this review, it was determined that the University’s current program for the proactive release of information is sufficient given the existing requests for information by the public.

Number of access applications received

During the reporting period, our agency received a total of nineteen formal access applications (including one withdrawn application).

Number of refused access applications for Schedule 1 matters

During the reporting period, the University refused a total of two formal access applications because the information requested was information referred to in Schedule 1 to the GIPA Act. Of those applications, none were refused in full, and two were refused in part.

Privacy

The University’s Privacy Management Plan outlines how the University complies with the Privacy and Personal Information Protection Act 1998 (NSW) (“the PPIP Act”) and the Health Records and Information Privacy Act 2002 (NSW). Two internal reviews were completed under Part 5 of the PPIP Act during the reporting period.



2013 GIPAA access applications

Table A: Number of applications by type of applicant and outcome*

Access granted in full

Access granted in part

Access refused in full

Information not held

Information already available

Refuse to deal with application

Refuse to confirm/deny whether information is held

Application withdrawn

Media 0 0 0 0 0 0 0 0

Members of Parliament

1 0 2 2 1 0 0 0

Private sector business

0 0 0 0 0 0 0 0

Not for profit organisations or community groups

1 0 0 0 0 0 0 0

Members of the public (application by legal representative)

1 2 1 0 0 0 0 1

Members of the public (other)

7 2 5 5 1 0 1 0

* More than one decision can be made in respect of a particular access application.

Table B: Number of applications by type of application and outcome

Access granted in full

Access granted in part

Access refused in full

Information not held

Information already available

Refuse to deal with application

Refuse to confirm/deny whether information is held

Application withdrawn

Personal information applications*

2 1 2 2 0 0 0 0

Access applications (other than personal information applications)

7 0 5 4 2 0 0 1

Access applications that are partly personal information applications and partly other

1 3 1 1 0 0 0 0

* A personal information application is an access application for personal information (as defined in clause 4 of Schedule 4 to the Act) about the applicant (the applicant being an individual).



Table C: Invalid applications

Reason for invalidity Number of applications

Application does not comply with formal requirements (section 41 of the Act) 3

Application is for excluded information of the agency (section 43 of the Act) 0

Application contravenes restraint order (section 110 of the Act) 0

Total number of invalid applications received 3

Invalid applications that subsequently became valid applications 0

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the Act

Number of times consideration used*

Overriding secrecy laws 0

Cabinet information 0

Executive Council information 0

Contempt 0

Legal professional privilege 2

Excluded information 0

Documents affecting law enforcement and public safety 0

Transport safety 0

Adoption 0

Care and protection of children 0

Ministerial code of conduct 0

Aboriginal and environmental heritage 0

Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of the Act

Number of occasions when application not successful

Responsible and effective government 7

Law enforcement and security 0

Individual rights, judicial processes and natural justice 6

Business interests of agencies and other persons 3

Environment, culture, economy and general matters 0

Secrecy provisions 0

Exempt documents under interstate Freedom of Information legislation 0



Table F: Timeliness

Number of applications

Decided within the statutory timeframe (20 days plus any extensions) 7

Decided after 35 days (by agreement with applicant) 2

Not decided within time (deemed refusal) 10

Total 19

Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome)

Decision varied Decision upheld Total

Internal review 0 1 1

Review by Information Commissioner*

1 0 1

Internal review following recommendation under section 93 of Act

0 0 0

Review by ADT 1 1 2

Total 2 2 4

* The Information Commissioner does not have the authority to vary decisions, but can make recommendation to the original decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been made.

Table H: Applications for review under Part 5 of the Act (by type of applicant)

Number of applications for review

Applications by access applicants 4

Applications by persons to whom information the subject of access application relates (see section 54 of the Act)

0



Statistical Information on EEO target groups

A. Trends in the Representation of EEO Groups

% of Total Staff

General Staff Benchmark or Target

2010 2011 2012 2013

Women 50% 61.46% 62.01% 62.60% 62.42%

Aboriginal people and Torres Strait Islanders 2% 1.21% 1.27% 1.15% 1.26%

People whose first language was not English 19% 28.43% 28.52% 27.84% 27.78%

People with a disability 12% 3.81% 3.57% 3.54% 3.41%

People with a disability requiring work-related adjustment 7% 0.55% 0.54% 0.49% 0.54%

% of Total Staff

Academic Staff Benchmark or Target

2010 2011 2012 2013

Women 50% 34.90% 35.48% 35.31% 37.68%

Aboriginal people and Torres Strait Islanders 2% 0.38% 0.48% 0.60% 0.51%

People whose first language was not English 19% 25.01% 25.38% 24.69% 22.82%

People with a disability 12% 3.25% 3.06% 2.86% 2.47%

People with a disability requiring work-related adjustment 7% 0.73% 0.65% 0.56% 0.59%

B. Trends in the Distribution of EEO Groups

Distribution Index

General Staff Benchmark or Target

2010 2011 2012 2013

Women 100 90 90 91 89

Aboriginal people and Torres Strait Islanders 100 71 76 90 85

People whose first language was not English 100 97 98 99 99

People with a disability 100 96 96 96 98

People with a disability requiring work-related adjustment 100 n/a n/a n/a n/a

Distribution Index

Academic Staff Benchmark or Target

2010 2011 2012 2013

Women 100 84 84 84 85

Aboriginal people and Torres Strait Islanders 100 n/a 107 98 98

People whose first language was not English 100 98 98 99 107

People with a disability 100 119 118 112 118

People with a disability requiring work-related adjustment 100 121 128 118 123

1. Staff numbers are as at 31 March. 2. Figures exclude casual staff. 3. A Distribution Index of 100 indicates that the centre of the distribution of the EEO group across salary levels is equivalent to that of other staff. Values

less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is the case for other staff. The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at lower salary levels. The Distribution Index is automatically calculated by the software provided by the Office of Employment Equity and Diversity.

4. The Distribution Index is not calculated where EEO group or non-EEO group numbers are less than 20.

UNSW Australia UNSW Sydney NSW 2052 Tel +61 2 9385 1000 unsw.edu.au

Hours of business Switchboard: Monday – Friday, 9am – 5pm Many departments of the University operate beyond standard business hours.

This report is available online at annualreport.unsw.edu.au

© UNSW 2014

ISSN 0726-8459 Volume 2 CRICOS Provider Code 00098G

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