1. Financial Performance
This section analyses the financial performance of The Australian National University for the year ended 31 December 2019
1.1 Income
Notes |
University |
||
2019 |
2018 |
||
$'000 |
$'000 |
||
Note 1.1A: Australian Government Financial Assistance The information provided in this note is only relevant to the University - consolidated figures are not provided. |
|||
(a) Commonwealth Grants Scheme and Other Grants |
|||
Commonwealth Grants Scheme |
83,676 |
82,789 |
|
Access and Participation Programme |
351 |
288 |
|
Disability Support Programme |
44 |
54 |
|
National Institutes Funding |
203,620 |
199,824 |
|
Total Commonwealth Grants Scheme and Other Grants |
287,691 |
282,955 |
|
(b) Higher Education Loan Programmes |
|||
HECS - HELP |
64,499 |
61,118 |
|
FEE - HELP |
23,523 |
28,405 |
|
SA - HELP |
2,005 |
1910 |
|
Total Higher Education Loan Programmes |
90,027 |
91,433 |
|
(c) Department of Education Research |
|||
Research Training Programme |
57,772 |
57,189 |
|
Research Support Programme |
65,422 |
63,214 |
|
Total Department of Education Research |
123,194 |
120,403 |
|
(d) Australian Research Council |
|||
(d)(i) Discovery |
|||
Projects |
19,995 |
19,339 |
|
Fellowships |
10,659 |
12,412 |
|
Indigenous Researchers Initiatives |
(4) |
- |
|
Early Career Research Award |
7,030 |
5,452 |
|
Total Discovery |
37,680 |
37,203 |
|
(d)(ii) Linkages |
|||
Infrastructure |
6,035 |
5,162 |
|
Projects |
2,160 |
2,225 |
|
Total Linkages |
8,195 |
7,387 |
|
(d)(iii) Networks and Centres |
|||
Centres |
13,110 |
12,227 |
|
Total Networks and Centres |
13,110 |
12,227 |
|
(d)(iv) Industrial Transformation |
|||
Training Centres |
889 |
873 |
|
Total Industrial Transformation |
889 |
873 |
|
(e) Other Australian Government Financial Assistance |
|||
(e)(i) Other assistance (non-capital) |
|||
Agriculture and Water Resources |
2,227 |
3,223 |
|
Communication and the Arts |
1,096 |
1,884 |
|
Defence |
3,268 |
4,790 |
|
Education and Training |
8,663 |
17,769 |
|
Environment and Energy |
4,390 |
4,386 |
|
Social Services |
7,779 |
9,680 |
|
Foreign Affairs and Trade |
27,210 |
23,216 |
|
Health |
35,261 |
24,361 |
|
Infrastructure and Regional Development and Cities |
- |
20 |
|
Industry, Innovation and Science |
124 |
23,250 |
|
Prime Minister and Cabinet |
3,931 |
1,383 |
|
OS - HELP (Net) * |
(106) |
(202) |
|
Other |
23,107 |
2,598 |
|
Total Other Australian Government Financial Assistance |
116,950 |
116,358 |
|
(e)(ii) Ad-Hoc assistance (capital) |
|||
Education and Training - Super computer capital grant (construction in 2019)1 |
49,911 |
69,200 |
|
Total Australian Government Financial Assistance [a+b+c+d+e] |
727,647 |
738,039 |
|
Reconciliation |
|||
Australian Government grants [a+c+d+e(i)] |
587,709 |
577,406 |
|
Education and Training - Super computer capital grant (construction in 2019)1 |
(e)(ii) |
49,911 |
69,200 |
HELP - HECS, FEE and SA |
(b) |
90,027 |
91,433 |
Total Australian Government Financial Assistance |
727,647 |
738,039 |
* OS-HELP receipts from the Australian Government are not included in the Income Statement.
1 In 2018 under AASB 1004 Contributions, the University recognised $69,200,000 as a capital grant for the construction of the super computer. On transition to AASB 1058, the capital grant did not meet the recognition criteria and has been reversed against equity and treated as Deferred income within Other payables. During 2019, only the portion that meets the new recognition criteria has been rerecognised as revenue, with the balance remaining in Other payables (refer overview section showing the impact of initial application of AAS).
Accounting Policy
The University's operating revenue consists of Australian Government Financial Assistance including Higher Education Funding Act (HEFA), Higher Education Support Act (HESA), Higher Education Contribution Scheme (HECS), Higher Education Loan Programmes (HELP), Australian Research Council grants, ACT Government Financial Assistance, fees and charges, consultancy and contract research, investment income, and sales of goods and services.
Under AASB 15 and AASB 1058, the University first determines whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. If an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the University applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the University considers whether AASB 1058 applies.
Consolidated |
University |
||||
$'000 |
$'000 |
$'000 |
$'000 |
||
2019 |
2018 |
2019 |
2018 |
||
Note 1.1B: Territory Government Financial Assistance ACT Government grants were received by the University during the reporting period: |
|||||
Non-Capital Contributions |
6,291 |
3,863 |
6,291 |
3,863 |
|
Total Territory Government Financial Assistance |
6,291 |
3,863 |
6,291 |
3,863 |
|
Note 1.1C: Fees and Charges |
|||||
Course Fees and Charges |
|||||
Continuing education and conferences |
5,312 |
7,903 |
5,312 |
7,903 |
|
Fee-paying onshore overseas students |
325,489 |
317,838 |
325,489 |
317,838 |
|
Fee-paying offshore overseas students |
3,453 |
3,033 |
3,453 |
3,033 |
|
Fee-paying domestic postgraduate students |
7,061 |
4,208 |
7,061 |
4,208 |
|
Fee-paying domestic undergraduate students |
15 |
- |
15 |
- |
|
Total Course Fees and Charges |
341,330 |
332,982 |
341,330 |
332,982 |
|
Other Non-Course Fees and Charges |
|||||
Parking fees |
7,320 |
7,116 |
7,320 |
7,116 |
|
Rentals and hire facilities |
7,856 |
5,471 |
7,856 |
5,471 |
|
Student accommodation |
12,117 |
13,000 |
12,117 |
13,000 |
|
Student services fees from students |
3,966 |
4,711 |
3,966 |
4,711 |
|
Other non-course fees and charges |
3,716 |
2,592 |
3,716 |
2,592 |
|
Total Other Non-Course Fees and Charges |
34,975 |
32,890 |
34,975 |
32,890 |
|
Total Fees and Charges |
376,305 |
365,872 |
376,305 |
365,872 |
|
Rental income commitments |
|||||
The University in its capacity as lessor has a number of leasing arrangements in relation to property leases. |
|||||
Commitments for sublease rental income receivables are as follows: |
|||||
Within 1 year |
6,878 |
3,937 |
6,878 |
3,937 |
|
Between 1 to 5 years |
23,175 |
13,417 |
23,175 |
13,417 |
|
More than five years |
9,134 |
8,307 |
9,134 |
8,307 |
|
Total sublease rental income commitments receivable |
39,187 |
25,661 |
39,187 |
25,661 |
|
Accounting Policy Fees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate to courses to be held in future periods. Such income is treated as income in advance. Fees and charges relating to debtors are recognised as revenue in the year to which the prescribed course relates. |
|||||
Note 1.1D: Consultancy and Contracts Fees |
|||||
Consultancy research |
797 |
845 |
797 |
845 |
|
Contract research |
49,279 |
66,715 |
49,279 |
66,715 |
|
Consultancy non-research |
29,261 |
27,735 |
1,528 |
1,971 |
|
Contract non-research |
29,198 |
10,409 |
29,198 |
10,409 |
|
Total Consultancy and Contracts Fees |
108,535 |
105,704 |
80,802 |
79,940 |
|
Note 1.1E: Other Revenue |
|||||
Sundry income |
33,590 |
26,753 |
31,676 |
17,741 |
|
Sales of goods and services |
15,591 |
13,819 |
15,591 |
13,819 |
|
Workers compensation reimbursements1 |
- |
279 |
- |
279 |
|
Scholarships and prizes |
324 |
237 |
324 |
237 |
|
Donations and bequests |
13,000 |
25,273 |
13,000 |
25,273 |
|
Student accommodation management fee |
13,936 |
10,008 |
13,936 |
10,008 |
|
Total Other Revenue |
76,441 |
76,369 |
74,527 |
67,357 |
1 From 1 July 2018, the University took on the responsibility to self-manage workers compensation (refer Note 2.2E).
Accounting Policy
Revenue from sales of goods and services is recognised when the services or goods are delivered.
Note 1.1F: Revenue and Income from Continuing Operations Recognised Under AASB 15 and AASB 1058
Basis for disaggregation
Sources of funding: the University receives funds from the Australian Government as well as State and Local Governments to assist with performing research activities, and education programs across a wide range of disciplines and at different education qualification levels. Apart from the sources received from Government, the University also receives funds and fees from private organisations or individuals that are used for the different programs led by the University or correspond to the research activities and education services provided by the University.
Revenue and income streams: the streams distinguish the different activities performed by the University as well as acknowledge the different type of users of the programs and services provided:
- Education: The University has domestic and overseas students enrolled in a variety of programs for different qualification levels (from certificates to doctoral degrees). Whilst the number of domestic students is affected by national economic factors such as interest rates or unemployment, the number of overseas students is predominantly impacted by changes in immigration policies.
- Research: The University performs research activities in different fields such as health, engineering, education and science. The University enters into many different types of research agreements with different counterparties, such as with private sector customers and Government agencies that award research grants. Each research agreement is assessed as to whether it is an enforceable arrangement and contains sufficiently specific promises to transfer outputs from the research to the customer (or at the direction of the customer). Judgement is required in making this assessment. The University has concluded that some research agreements represent a contract with a customer whereas other research agreements are recognised as income when the University obtains control of the research funds.
- Non-course fees and charges: These correspond to the complementary services provided by the University such as parking, student accommodation, and commercial tenancies.
a) Disaggregation |
||||||||||
The University derives revenue and income from: |
||||||||||
Consolidated Sources of Funding |
2019 |
|||||||||
Australian Government Financial Assistance |
Higher Education Loan Program ("HELP") |
Territory Government Financial Assistance |
Student Fees and Charges |
Non- Student Fees and Charges |
Consultancy and Contracts Fees |
Donations and Bequests |
Other Revenue |
Total Revenue from Contracts with Customers [AASB 15] |
Total Income of Not-for- Profit Entities [AASB 1058] |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Revenue Streams |
||||||||||
Course Fees and Charges |
||||||||||
Domestic students undergraduate |
- |
75,077 |
- |
15 |
- |
- |
- |
- |
75,092 |
- |
Domestic students postgraduate |
- |
23,523 |
- |
7,061 |
- |
- |
- |
- |
30,584 |
- |
Onshore overseas students undergraduate |
- |
- |
- |
131,397 |
- |
- |
- |
- |
131,397 |
- |
Onshore overseas students postgraduate |
- |
- |
- |
194,092 |
- |
- |
- |
- |
194,092 |
- |
Offshore overseas students postgraduate |
- |
- |
- |
3,453 |
- |
- |
- |
- |
3,453 |
- |
Continuing education and executive programs |
- |
- |
- |
5,312 |
- |
- |
- |
- |
5,312 |
- |
Total Course Fees and Charges |
- |
98,600 |
- |
341,330 |
- |
- |
- |
- |
439,930 |
- |
Research |
||||||||||
Contract research [AASB 15] |
6,388 |
- |
2,706 |
- |
- |
- |
- |
- |
9,094 |
- |
Research grant [AASB 1058] |
170,480 |
- |
3,585 |
- |
- |
48,976 |
- |
- |
- |
223,041 |
Total Research |
176,868 |
- |
6,291 |
- |
- |
48,976 |
- |
- |
9,094 |
223,041 |
Recurrent Government Grants |
||||||||||
Recurrent government grants [AASB 15] |
84,027 |
- |
- |
- |
- |
- |
- |
- |
84,027 |
- |
Recurrent government grants [AASB 1058] |
326,814 |
- |
- |
- |
- |
- |
- |
- |
- |
326,814 |
Total Recurrent Government Grants |
410,841 |
- |
- |
- |
- |
- |
- |
- |
84,027 |
326,814 |
Non-Course Fees and Charges |
||||||||||
Parking fees |
- |
- |
- |
- |
7,320 |
- |
- |
- |
7,320 |
- |
Rentals and hire facilities |
- |
- |
- |
- |
7,856 |
- |
- |
- |
7,856 |
- |
Student accommodation |
- |
- |
- |
- |
12,117 |
- |
- |
- |
12,117 |
- |
Student services fees from students |
- |
- |
- |
- |
3,966 |
- |
- |
- |
3,966 |
- |
Other student charges and fines |
- |
- |
- |
- |
3,716 |
- |
- |
- |
3,716 |
- |
Total Non-Course Fees and Charges |
- |
- |
- |
- |
34,975 |
- |
- |
- |
34,975 |
- |
Total Capital Grants |
49,911 |
- |
- |
- |
- |
1,100 |
- |
- |
- |
51,011 |
Other |
||||||||||
Other [AASB 15] |
- |
- |
- |
- |
- |
42,389 |
- |
63,441 |
105,830 |
- |
Other [AASB 1058] |
- |
- |
- |
- |
- |
16,070 |
13,000 |
- |
- |
29,070 |
Total Other |
- |
- |
- |
- |
- |
58,459 |
13,000 |
63,441 |
105,830 |
29,070 |
Total Revenue from Contracts with Customers [AASB 15] |
90,415 |
98,600 |
2,706 |
341,330 |
34,975 |
42,389 |
- |
63,441 |
673,856 |
- |
Total Income of Not-for-Profit [AASB 1058] |
547,205 |
- |
3,585 |
- |
- |
66,146 |
13,000 |
- |
- |
629,936 |
University Sources of Funding |
2019 |
|||||||||
Australian Government Financial Assistance |
Higher Education Loan Program ("HELP") |
Territory Government Financial Assistance |
Student Fees and Charges |
Non- Student Fees and Charges |
Consultancy and Contracts Fees |
Donations and Bequests |
Other Revenue |
Total Revenue from Contracts with Customers [AASB 15] |
Total Income of Not-for- Profit Entities [AASB 1058] |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Revenue Streams |
||||||||||
Course Fees and Charges |
||||||||||
Domestic students undergraduate |
- |
75,077 |
- |
15 |
- |
- |
- |
- |
75,092 |
- |
Domestic students postgraduate |
- |
23,523 |
- |
7,061 |
- |
- |
- |
- |
30,584 |
- |
Onshore overseas students undergraduate |
- |
- |
- |
131,397 |
- |
- |
- |
- |
131,397 |
- |
Onshore overseas students postgraduate |
- |
- |
- |
194,092 |
- |
- |
- |
- |
194,092 |
- |
Offshore overseas students postgraduate |
- |
- |
- |
3,453 |
- |
- |
- |
- |
3,453 |
- |
Continuing education and executive programs |
- |
- |
- |
5,312 |
- |
- |
- |
- |
5,312 |
- |
Total Course Fees and Charges |
- |
98,600 |
- |
341,330 |
- |
- |
- |
- |
439,930 |
- |
Research |
||||||||||
Contract research [AASB 15] |
6,388 |
- |
2,706 |
- |
- |
- |
- |
- |
9,094 |
- |
Research grant [AASB 1058] |
170,480 |
- |
3,585 |
- |
- |
48,976 |
- |
- |
- |
223,041 |
Total Research |
176,868 |
- |
6,291 |
- |
- |
48,976 |
- |
- |
9,094 |
223,041 |
Recurrent Government Grants |
||||||||||
Recurrent government grants [AASB 15] |
84,027 |
- |
- |
- |
- |
- |
- |
- |
84,027 |
- |
Recurrent government grants [AASB 1058] |
326,814 |
- |
- |
- |
- |
- |
- |
- |
- |
326,814 |
Total Recurrent Government Grants |
410,841 |
- |
- |
- |
- |
- |
- |
- |
84,027 |
326,814 |
Non-Course Fees and Charges |
||||||||||
Parking fees |
- |
- |
- |
- |
7,320 |
- |
- |
- |
7,320 |
- |
Rentals and hire facilities |
- |
- |
- |
- |
7,856 |
- |
- |
- |
7,856 |
- |
Student accommodation |
- |
- |
- |
- |
12,117 |
- |
- |
- |
12,117 |
- |
Student services fees from students |
- |
- |
- |
- |
3,966 |
- |
- |
- |
3,966 |
- |
Other student charges and fines |
- |
- |
- |
- |
3,716 |
- |
- |
- |
3,716 |
- |
Total Non-Course Fees and Charges |
- |
- |
- |
- |
34,975 |
- |
- |
- |
34,975 |
- |
Total Capital Grants |
49,911 |
- |
- |
- |
- |
1,100 |
- |
- |
- |
51,011 |
Other |
||||||||||
Other [AASB 15] |
- |
- |
- |
- |
- |
14,656 |
- |
61,527 |
76,183 |
- |
Other [AASB 1058] |
- |
- |
- |
- |
- |
16,070 |
13,000 |
- |
- |
29,070 |
Total Other |
- |
- |
- |
- |
- |
30,726 |
13,000 |
61,527 |
76,183 |
29,070 |
Total Revenue from Contracts with Customers [AASB 15] |
90,415 |
98,600 |
2,706 |
341,330 |
34,975 |
14,656 |
- |
61,527 |
644,209 |
- |
Total Income of Not-for-Profit [AASB 1058] |
547,205 |
- |
3,585 |
- |
- |
66,146 |
13,000 |
- |
- |
629,936 |
b) Revenue from contracts with customers
Accounting Policy
A contract is in scope of AASB 15 when an enforceable agreement is entered into that promises to transfer goods or services that are considered sufficiently specific to enable the determination of when the performance obligation has been satisfied.
The transaction price is the total amount of consideration to which the University expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.
The University’s income generating contracts typically do not have variable components. Where variability does exist, it is where the University is required to return to the funding provider any amounts received under a grant that were not spent on eligible expenditure. As such, this variability is required to be estimated by the University in order to determine, at contract inception, what is considered the transaction price of the contract. The University applies this at a portfolio level.
For some transactions, the receipt of the consideration does not match the timing of the transfer of goods or services to the customer. The University does not consider there to be significant financing components in any of its contracts. Where there is a timing difference between the receipt of funds and the satisfaction of a performance obligation, this is typically less than 12 months and therefore the University is able to apply the practical expedient within AASB 15 that removes the requirement for the University to adjust the promised amount of consideration for the effects of a significant financing component. Where contracts do result in the receipt of cash more than 12 months before or after performance by the University, the University has determined the effect of the significant financing component to be immaterial.
The revenue is recognised:
- Over time when the good or service provided meets one of the following criteria:
- The customer simultaneously receives and consumes the benefits provided by the University's performance as the University performs;
- The University's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
- The University's performance does not create an asset with an alternative use to the University and the University has an enforceable right to payment for performance completed to date.
- At a point in time when the good or service is delivered.
Where revenue is recognised over time, the University can apply either an input or output method for measuring progress. The University selects the method that most faithfully depicts the University’s performance in transferring control of the good or service. The University determines the most appropriate method on a contract-by-contract basis.
- Course fees and charges
Revenue from course fees and charges relates to undergraduate, graduate and professional degree programs and continuing education.
The revenue is recognised over time as and when the course is delivered to students over the semester, as the student receives and consumes the benefit simultaneously. An output method is used based on the months of education delivered, as this best reflects the transfer of services to students.
When the course or training program has been paid in advanced by students or the University has received the government funding in advance (e.g. before starting the relevant academic period), the University will recognise a contract liability until the services are delivered.
The University has refund obligations where a student has paid tuition fees and then withdraws from a course or program prior to the relevant census date.
- Research
Revenue recognition for research funding is dependent upon the source of the funding and the nature of the transaction.
The University assesses each contract to determine whether both the ‘enforceable agreement’ and ‘sufficiently specific’ criteria are met. Where they are met, the University identifies the performance obligation(s) where research findings are required to be transferred to a customer.
Research revenue can have a requirement to be returned to the funding provider any amounts received that were not spent on eligible expenditure. The University will estimate at a portfolio level an amount to be deferred based on historical data.
The research agreements that are considered within the scope of AASB 15 are sufficiently specific, as the University has the obligation to provide the goods or services. The performance obligations may include:
- Comprehensive academic paper/s with the results of the research after completion;
- Publishing research data and results on an ongoing basis in an openly accessible repository as requested by the grantor; or
- Transfer of or access to intellectual property
Depending of the nature of the promise, the University either recognises revenue at the point in time when the promise is delivered (e.g. when the comprehensive academic paper is published) or recognises revenue over time as the service is performed (e.g. when the customer obtains control of the intellectual property as it is created).
- Non-course fees and other charges
Non-course fees and other charges revenue relates to student services and amenities fees, parking fees, student accommodation, and commercial tenancies.
Revenue is recognised as and when the goods or services are delivered.
- Unsatisfied performance obligations
Remaining performance obligations represent services the University has promised to provide to customers under contracts that are satisfied as the services are provided over the contract term. Where there is only one performance obligation, the entire transaction price is allocated to the performance obligation. Where multiple performance obligations are identified, the University will allocate the transaction price between them based on the stand-alone selling price of each of the performance obligations.
Remaining performance obligations are associated with research and other contract obligations, including submission of required activity report, publication of research data and results, and transfer of intellectual property.
These unsatisfied performance obligations are expected to be satisfied within the following periods:
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Within 1 year |
54,193 |
4,380 |
51,782 |
- |
Between 1 to 5 years |
3,566 |
- |
3,566 |
- |
More than 5 years |
- |
- |
- |
- |
Total Unsatisfied performance obligations |
57,759 |
4,380 |
55,348 |
- |
As permitted under the transitional provisions in AASB 15, the transaction price allocated to partially unsatisfied performance obligations as of 31 December 2018 is not disclosed. |
||||
· Assets and liabilities related to contracts with customers |
||||
The University has recognised the following assets and liabilities related to contracts with customers: |
||||
Contract assets - current |
6,227 |
1,972 |
3,950 |
- |
Contract assets - non-current |
174 |
- |
174 |
- |
Total Contract assets |
6,401 |
1,972 |
4,124 |
- |
Other non-financial assets - current |
4,788 |
- |
4,788 |
- |
Other non-financial assets - non-current |
398 |
- |
398 |
- |
Total Other non-financial assets |
5,186 |
- |
5,186 |
- |
Contract liabilities - current |
54,193 |
4,380 |
51,782 |
- |
Contract liabilities - non-current |
3,566 |
- |
3,566 |
- |
Total Contract liabilities |
57,759 |
4,380 |
55,348 |
- |
Contract assets
The contract assets are amounts receivable from customers for goods or services that have been transferred but not yet invoiced.
The classification of contract assets as non-current was based on the expected receipt of funds beyond a twelve-month period.
The impairment associated with the contract assets is disclosed in Note 2.1B: Loans, Receivables and Contract Assets.
Accounting Policy
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the University delivers goods or services to a customer before receiving consideration, a contract asset is recognised for the earned consideration that is conditional..
Other non-financial assets
Other non-financial assets relate to deferred expenditure for performance obligations that are yet to be completed, that have been assessed under the point in time method.
Contract liabilities
The contract liabilities are amounts received from customers where the performance obligations are yet to be completed.
The classification of contract liabilities as non-current was based on the expected completion date of the performance obligations beyond a twelve-month period.
Accounting Policy
A contract liability is the obligation to transfer goods or services to a customer for which the University has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the University transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the University performs under the contract.
Contract liabilities differ from the amounts disclosed in Note 2.2B Other Payables. The contract liabilities include deferred income.
- Refund liabilities
The University has recognised the following refund liabilities related to contracts with customers:
Consolidated |
University |
|||
2019 |
2019 |
|||
Closing balance |
Opening balance |
Closing balance |
Opening balance |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Refund liabilities - current |
121 |
- |
121 |
- |
Refund liabilities - non-current |
8 |
- |
8 |
- |
Total Refund liabilities |
129 |
- |
129 |
- |
The refund liabilities are associated with the estimated return of unspent funds arising from contracts with customers.
The classification of refund liabilities as non-current was based on the expected completion date of the performance obligations beyond a twelve-month period.
Accounting Policy
A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the amount the University ultimately expects it will have to return to the customer. The University updates its estimates of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period. The University applies this at a portfolio level.
c) Not-for-Profit Income
Accounting Policy
Transactions are in the scope of AASB 1058 where the consideration to acquire an asset is significantly less than fair value, principally to enable the entity to further its objectives. The University has determined that where it is entitled to consideration under an enforceable contract to perform research or other services, but there is no transfer of a good or service to a customer that arrangement is in the scope of AASB 1058.
Income will be determined as the difference between the consideration for an asset and the asset’s fair value, after recognising any other related amounts. The University will apply judgment in determining the extent to which the acquisition of an asset gives rise to income as specified by AASB 1058 or to other amounts recognised in accordance with any other applicable accounting standard.
- Research and other funding
Revenue recognition for research and other funding is dependent upon the source of the funding and the nature of the transaction.
The following specific revenue recognition criteria have been applied:
- Funding received from Australian Research Council (ARC): The University has determined there are no sufficiently specific performance obligations associated with ARC funding. The University will recognise revenue when it obtains an enforceable right to the cash.
- Funding received from National Health and Medical Research Council (NHMRC): The University has determined there are no sufficiently specific performance obligations associated with NHMRC funding. The University will recognise revenue when it obtains an enforceable right to the cash.
- Funding received from the Department of Education – Research Block Grant (RBG): The University received funding in relation to the Research Training Program (RTP) and Research Support Program (RSP). These funds have been recognised in accordance with AASB 1058 as it has been determined there are no sufficiently specific associated performance obligations. The University will recognise revenue when it obtains an enforceable right to the cash
- Other funding: These are assessed on a contract-by-contract basis. Where performance obligations are found to not be sufficiently specific, revenue will be recognised in accordance with AASB 1058. The University will recognise revenue when it obtains an enforceable right to the cash.
- Donations and bequests
Donations are categorised as receipts of cash where funds are provided in return for a Deductible Gift Receipt (DGR). Once the fund provider has received a DGR, there is no recourse to the funds donated as they have accepted them as a tax deduction. As such, there is no enforceable contract arising from the provision of these donated funds.
Bequests do not have the same DGR requirements as donations, however the University typically has the ability to redirect funds to priorities as they see fit. Where contracts may specify the intended use of the funds, the University does not consider them to be enforceable.
The University will recognise revenue when they obtain an enforceable right to the cash.
- Transfers of financial assets to acquire or construct a non-financial asset
Consolidated |
University |
|||
2019 |
2019 |
|||
Closing balance |
Opening balance |
Closing balance |
Opening balance |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Australian Government unspent financial assistance |
20,134 |
- |
20,134 |
- |
Other liabilities |
300 |
- |
300 |
- |
During the reporting period, movements in the liability arose from cash received of $2,245,000, Australian Government funds being reclassified upon adoption of AASB15 of $69,200,000, and income recognised of $49,911,000.
- Unsatisfied obligations
The University expects to recognise as income any liability for unsatisfied obligations within the following periods:
Consolidated |
University |
|||
2019 |
2018 |
2019 |
||
$'000 |
$'000 |
$'000 |
$'000 |
|
Within 1 year |
20,434 |
- |
20,434 |
- |
Between 1 to 5 years |
- |
- |
- |
- |
More than 5 years |
- |
- |
- |
- |
Total unsatisfied obligations |
20,434 |
- |
20,434 |
- |
Accounting Policy
In cases where the transaction includes a transfer to enable the University to acquire or construct a recognisable non-financial asset to be controlled by the University, the University recognises a liability for the excess of the fair value of the transfer over any related amounts recognised, and recognises income in the income statement as it satisfies its obligations under the transfer.
A transfer of a financial asset to enable the University to acquire or construct a recognisable non-financial asset for its own use is one that:
- Requires the University to use that financial asset to acquire or construct a non-financial asset to identified specifications;
- Does not require the University to transfer the non-financial asset to the transferor or other parties; or
- Occurs under an enforceable agreement.
The University applies the requirements of AASB 9 Financial Instruments when accounting for the financial asset (e.g. cash) received. The acquisition or construction of the non-financial asset is accounted for separately to the transfer of the financial asset, in accordance with other Standards.
The above only applies for transfers that meet the criteria to be considered as ‘transfers to enable the University to acquire or construct a recognisable non-financial asset to be controlled by the University’.
A key criterion is that the non-financial asset to be constructed or acquired by the University needs to be permitted to be recognised by another standard (e.g. the construction of a building under AASB 116 or intangible asset under AASB 138).
If the non-financial asset is not permitted to be recognised by another standard (e.g. research activities which cannot be recognised as an asset in accordance with AASB 138), the University is not permitted to apply the capital grant accounting. Instead, the University would revert back to the general income recognition requirements (under AASB 1058.9) which is to recognise the difference between the initial carrying amount of the asset and any ‘related amounts’ immediately as income in the income statement.
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Note 1.1G: Net Investment Revenue |
||||
Interest |
25,867 |
27,532 |
25,814 |
27,428 |
Dividends |
45,782 |
55,495 |
45,782 |
55,495 |
71,649 |
83,027 |
71,596 |
82,923 |
|
Financial assets gain/(loss) |
||||
Cumulative gain on disposal of financial assets at fair value through statement of other comprehensive income |
1,026 |
868 |
1,026 |
868 |
Net gain on financial assets at amortised cost |
2,307 |
4,861 |
2,307 |
4,861 |
Net gain/(loss) on financial assets at fair value through profit or loss |
159,461 |
(13,523) |
159,461 |
(13,523) |
162,794 |
(7,794) |
162,794 |
(7,794) |
|
Net Investment Revenue |
234,443 |
75,233 |
234,390 |
75,129 |
Accounting Policy
Interest income is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset. Dividend income is recognised when a dividend is declared. Other investment revenue is recognised as it is received, with the exception of unrealised gains and losses which arise from the year end valuation process.
1.2 Expenses
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Note 1.2A: Employee Related Expenses |
||||
Academic |
||||
Salaries |
243,971 |
231,193 |
243,971 |
231,193 |
Contributions to funded superannuation and pension schemes |
40,462 |
37,620 |
40,462 |
37,620 |
Payroll tax |
20,624 |
19,515 |
20,624 |
19,515 |
Workers compensation |
42 |
2,152 |
42 |
2,152 |
Long service leave |
4,365 |
2,712 |
4,365 |
2,712 |
Annual leave |
16,810 |
14,121 |
16,810 |
14,121 |
Total Academic |
326,274 |
307,313 |
326,274 |
307,313 |
Non-Academic |
||||
Salaries |
260,370 |
242,180 |
244,041 |
226,484 |
Contributions to funded superannuation and pension schemes |
41,780 |
37,745 |
40,180 |
36,198 |
Payroll tax |
20,476 |
18,934 |
20,476 |
18,934 |
Workers compensation |
2,434 |
4,399 |
1,226 |
3,145 |
Long service leave |
4,599 |
2,014 |
4,371 |
1,843 |
Annual leave |
18,575 |
15,767 |
17,788 |
15,031 |
Total Non-Academic |
348,234 |
321,039 |
328,082 |
301,635 |
Total Employee Related Expenses |
674,508 |
628,352 |
654,356 |
608,948 |
Deferred Superannuation Expense |
||||
Current service and interest costs on account |
16,246 |
18,578 |
16,246 |
18,578 |
Total Deferred Superannuation Expense |
16,246 |
18,578 |
16,246 |
18,578 |
Total Employee Related Expenses (including Deferred Superannuation Expense) |
690,754 |
646,930 |
670,602 |
627,526 |
Accounting Policy |
||||
Accounting policies for employee related expenses are contained in the People and Relationships section. |
||||
Note 1.2B: Depreciation and Amortisation |
||||
Depreciation |
||||
Property at cost |
8,315 |
5,901 |
7,751 |
5,901 |
Property at valuation |
38,450 |
41,624 |
38,588 |
41,200 |
Plant, equipment and motor vehicles at cost |
25,963 |
28,232 |
25,341 |
27,703 |
Plant, equipment and motor vehicles at deemed cost |
299 |
320 |
299 |
320 |
Leasehold improvements |
281 |
429 |
281 |
429 |
Right-of-use assets - Buildings |
3,183 |
- |
2,619 |
- |
Right-of-use assets - Plant & equipment |
1,751 |
- |
1,751 |
- |
Amortisation |
||||
Licence agreement |
- |
- |
- |
- |
Software licence |
2,331 |
1,358 |
2,331 |
1,358 |
Other intangible assets |
476 |
476 |
- |
- |
Total Depreciation and Amortisation |
81,049 |
78,340 |
78,961 |
76,911 |
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Note 1.2C: Repairs and Maintenance |
||||
Building repairs and maintenance |
14,187 |
16,336 |
14,071 |
16,250 |
Grounds maintenance |
1,634 |
1,883 |
1,634 |
1,883 |
Other site maintenance and servicing expenses |
7,427 |
5,187 |
7,374 |
5,129 |
Total Repairs and Maintenance |
23,248 |
23,406 |
23,079 |
23,262 |
Note 1.2D: Borrowing Costs |
||||
Borrowing cost expense - interest on loans |
3,834 |
4,487 |
3,834 |
4,487 |
Borrowing cost expense - interest on medium term notes |
7,960 |
7,960 |
7,960 |
7,960 |
Total Borrowing Costs |
11,794 |
12,447 |
11,794 |
12,447 |
Accounting Policy |
||||
All borrowing costs are expensed as incurred. |
||||
Note 1.2E: Write-down and Impairment of Assets |
||||
Impairment of investments |
2,209 |
(11) |
2,209 |
(11) |
Impairment of receivables |
3,922 |
(104) |
3,922 |
(104) |
Bad debts expense |
222 |
507 |
222 |
507 |
Impairment losses - inventory |
(11) |
(256) |
- |
- |
Revaluation decrements |
- |
7,082 |
- |
7,082 |
Total Write-down and Impairment of Assets |
6,342 |
7,218 |
6,353 |
7,474 |
Note 1.2F: Other Expenses |
||||
Consumables, research and training materials |
152,255 |
137,320 |
154,228 |
140,300 |
Site servicing1 |
40,247 |
47,144 |
39,717 |
46,013 |
Travel, conferences and fieldwork |
42,694 |
36,887 |
42,525 |
36,437 |
Project contributions |
31,983 |
27,182 |
32,391 |
27,388 |
Scholarships |
61,118 |
57,851 |
61,119 |
57,851 |
Non-capitalised equipment |
23,963 |
33,046 |
13,970 |
17,374 |
Fees, charges and insurance |
9,847 |
5,825 |
9,847 |
5,825 |
Miscellaneous operating expenses2 |
51,166 |
35,361 |
49,989 |
33,655 |
Total Other Expenses |
413,273 |
380,616 |
403,786 |
364,843 |
On 31 December 2018, Australian Scientific Instruments Pty Limited, a wholly owned subsidiary of the University, sold its RESOlution line to Applied Spectrum (incorporated in the USA) for a consideration of US$100,000. The loss on sale includes the losses in relation to inventory and work in progress sold, along with the transfer of the liability for various unfulfilled service contracts and providing for closure costs of the business. The net loss from discontinued operations was $984,000.
Accounting Policy
Other expenses are recognised on an accrual basis.
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Note 1.2F: Other Expenses (continued) |
||||
1. Site servicing expenses include |
||||
Electricity and gas |
22,448 |
19,661 |
22,171 |
19,394 |
Cleaning expenses |
10,253 |
11,472 |
9,996 |
11,222 |
Rental expenses |
1,869 |
10,648 |
1,944 |
10,106 |
Municipality charges |
5,677 |
5,363 |
5,606 |
5,291 |
Total Site servicing expenses |
40,247 |
47,144 |
39,717 |
46,013 |
2. Miscellaneous operating expenses include: |
||||
Advertising |
6,766 |
4,855 |
6,766 |
4,849 |
Management fees |
16,393 |
10,047 |
16,192 |
9,803 |
Membership - professional bodies |
4,857 |
5,982 |
4,773 |
5,918 |
Staff development |
2,791 |
2,514 |
2,742 |
2,317 |
Audit expenses, internal and external |
1,206 |
556 |
1,106 |
484 |
Patent, copyright and royalties |
1,627 |
1,154 |
1,627 |
1,154 |
Legal expenses, settlements |
7,268 |
1,626 |
7,174 |
1,488 |
Other miscellaneous operating expenses |
10,258 |
8,627 |
9,609 |
7,642 |
Total Miscellaneous operating expenses |
51,166 |
35,361 |
49,989 |
33,655 |
Leasing commitments
In accordance with AASB 16, commitments are now reported as Right-of-use liabilities (refer Note 2.2D for details). The table below outlines the 2018 lease commitments prior to adoption of AASB 16.
Commitments for minimum lease payments in relation to non-cancellable operating leases in 2018 were payable as follows:
Consolidated |
University |
|
2018 |
2018 |
|
$'000 |
$'000 |
|
Within 1 year |
5,663 |
5,108 |
Between 1 to 5 years |
8,141 |
7,586 |
More than 5 years |
- |
- |
Total operating lease commitments |
13,804 |
12,694 |
In 2018, the University in its capacity as lessee had property leasing arrangements for office accommodation.
Note 1.2G: Losses/(Gains) on Disposal of Assets
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Loss on disposal of property, plant, equipment and motor vehicles |
11,769 |
263 |
11,769 |
261 |
Gain on disposal of property, plant, equipment and motor vehicles |
(185) |
(86) |
(148) |
(86) |
Net Losses/(Gains) on Disposal of Assets |
11,584 |
177 |
11,621 |
175 |
Accounting Policy
Losses or gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.
Consolidated |
University |
|||
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Note 1.2H: Income Tax (Expense)/Benefit |
||||
Recognised in the Income Statement |
||||
Current tax income/(expense) |
||||
Current year |
335 |
(421) |
- |
- |
Adjustment from prior year |
- |
(1) |
- |
- |
Origination and reversal of temporary differences |
(193) |
(42) |
- |
- |
Total Income Tax (Expense)/Benefit |
142 |
(464) |
- |
- |
Accounting Policy
The University is exempt from income tax under Commonwealth legislation whilst the controlled entity, ANU Enterprise Pty Ltd, addresses taxation in the following way:
ANU Enterprise Pty Ltd is endorsed by the Australian Charities and Not-for profits Commission as complying with the requirements to be regarded as a Charitable Institution for taxation purposes and as such has made no provision for income tax.
Australian Scientific Instruments Pty Ltd and the Social Research Centre Pty Ltd (subsidiaries of ANU Enterprise Pty Ltd), are not exempt from income tax.
The income tax expense for the period is the tax payable on the current period's taxable income based on the notional income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of the assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability.
Visit
https://www.transparency.gov.au/annual-reports/australian-national-university/reporting-year/2018-19-83