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6. Other Information

6.1 Remuneration of Auditors

Consolidated

University

2019

2018

2019

2018

$'000

$'000

$'000

$'000

Note 6.1A: Remuneration of Auditors

Remuneration to the Auditor-General for auditing the financial statements for the reporting period

1

299

316

248

234

Total Remuneration of Auditors

299

316

248

234

1Amounts shown exclude GST paid on these services. No other services were provided by the Auditor-General during the reporting period.

6.2 Superannuation Commitments

Commonwealth Superannuation Account

Since 1949, the University has maintained an account, on conditions approved by the Treasurer of the Commonwealth, to meet the emerging costs of the employer's liability under the Commonwealth Superannuation Scheme - a Defined Benefit Scheme. The Commonwealth Government has now closed this Scheme.

The Commonwealth Superannuation Account maintained by the University is not a superannuation fund as defined in AASB 119, the assets supporting the liability are maintained as a component of the overall University investment portfolio. As far as practical, the University has adopted the accounting treatment and disclosure requirements of AASB 119. The University is recognising actuarial gains and losses in the period in which they occur outside the profit and loss as permitted under the Standard and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015, Section 25(4) (FRR), and as such are disclosed in the Statement of Other Comprehensive Income 2019 loss of $70,522,000 (2018 loss $36,559,000) resulting in a cumulative amount of actuarial losses recognised in equity of $386,974,000 since inception. During 2019 a prior period adjustment was made to recognise an additional obligation in the opening balance for 2018. Refer to Note 4.1B for further details of the financial statement impacts.

Transfers are made to the account each fortnight in accordance with advice from ComSuper. The University's contribution rate in 2019 was 16.20% of eligible employee superannuable salaries (equivalent to the contribution rate the University is required to make for all employees who are members of UniSuper). Pensions are met on an emerging cost basis and paid to the Commonwealth Superannuation Administration.

The following have been recognised in the Income Statement in Employee expenses under Deferred Superannuation expense - Current Service Cost $368,000 (2018 $237,000) and Interest Cost $15,878,000 (2018 $18,341,000).

Section 25(2) of the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 requires the market yield on Government bonds be used to discount post-employment benefit obligations, in compliance with AASB 119. One consequence of this requirement is that the value of the CSS liability could be expected to fluctuate significantly from year to year as government bond rates change.

The present value of the obligations of the Commonwealth Superannuation Account has increased by $97,112,000. The increase is due largely to the decrease in Commonwealth bond yields at the relevant duration (being the interest rate required to be used to value liabilities). The future pension indexation of 2.00% and future wage growth of 2.00% remain unchanged from 2018. The reduction in the 13 year Commonwealth Government bond rate from 2.60% to 1.60% resulted in increasing the liability by $74,000,000.

The Australian Government Actuary (AGA) completed a formal review of the Account at 30 June 2017 and applied the traditional 6.00% interest rate when assessing obligations of the fund. The surplus at that date was $64,000,000. The next formal review is currently in progress.

The following principal actuarial assumptions have been adopted as at reporting date (values are expressed as weighted averages):

2019

2018

Discount rate as at 31 December

1.60%

2.60%

Expected return on plan assets at 31 December

2.60%

3.10%

Future salary increases

2.00%

2.00%

Future pension increases

2.00%

2.00%

The following principal actuarial assumptions have been adopted as at reporting date (values are expressed as weighted averages):

Consolidated

University

2019

20181

2019

20181

$'000

$'000

$'000

$'000

Reconciliation of the Present Value of the Obligation

Previous year closing balance

675,828

656,356

675,828

656,356

Current service cost

368

237

368

237

Interest cost

15,878

18,341

15,878

18,341

Actuarial (gains)/losses

70,522

36,559

70,522

36,559

Benefit payments

(36,656)

(35,665)

(36,656)

(35,665)

Current Year Closing Balance

725,940

675,828

725,940

675,828

Reconciliation of the Fair Value of Plan Assets

Opening fair value of plan assets

547,490

577,347

547,490

577,347

Expected return on plan assets

13,760

17,348

13,760

17,348

Contributions

122

209

122

209

Benefits paid

(36,656)

(35,665)

(36,656)

(35,665)

Actuarial gain/(loss)

83,610

(11,749)

83,610

(11,749)

Current Year Closing Balance

608,326

547,490

608,326

547,490

Reconciliation of the present value of the obligation and the fair value of the plan assets to the assets and liabilities recognised in the Balance Sheet

Present value of funded obligation

725,940

675,828

725,940

675,828

Fair value of plan assets

608,326

547,490

608,326

547,490

Net Liability in Balance Sheet

117,614

128,338

117,614

128,338

Amounts in Balance Sheet

Liabilities

725,940

675,828

725,940

675,828

Assets

608,326

547,490

608,326

547,490

Net Liability in Balance Sheet

117,614

128,338

117,614

128,338

1 Adjusted 2018 figures. Refer to Note 4.1B.

Superannuation Scheme for Australian Universities

New continuing staff members employed by the University since 1 April 1983 have been required to join the Superannuation Scheme for Australian Universities (SSAU) until 30 September 2000. From 1 October 2000, SSAU and the Tertiary Education Superannuation Scheme merged to become a single scheme, UniSuper. This merged scheme continues to have a defined benefits component which is managed independently of the University. The University contributes to the scheme at the rate equivalent to 14.00% of members' salaries. The University's contributions in 2019 were $66,133,000 (2018 $60,533,000).

Subsequent to changes enacted to the UniSuper Trust Deed by the Trustees during 2007 the previously described UniSuper Defined Benefit Plan (DBP) is now compliant with the requirements of AASB 119 applicable to a Defined Contribution Fund (DCF). Although the DCF is a defined contribution fund under AASB 119, it does remain a defined benefit fund for other purposes and continues to require actuarial oversight.

Public Sector Superannuation Scheme

The University has a small number of employees who are members of the Public Sector Superannuation Scheme to which the University contributes at the rate of 16.80% of members' salaries. During 2019, the University's contributions amounted to $87,000 (2018 $105,000). This scheme is closed to new members of the University's staff.

Employee Non Contributory Productivity Superannuation Schemes

The University’s contributions for employees who are contributors to the Commonwealth Superannuation and Public Sector Superannuation Schemes are paid to the Commonwealth Superannuation Administration. The University contributes to the Schemes between 2.00% to 3.00% of members' salaries. During 2019, the University's contributions were $20,000 (2018 $29,000) and $12,000 (2018 $14,000) respectively. The University paid contributions for eligible employees, other than employees who are contributors to the Commonwealth Superannuation and Public Sector Superannuation Schemes, to the Tertiary Education Superannuation Scheme until 30 September 2000, and since then to the newly established UniSuper. The new scheme continues to offer a cash accumulation component. The University contributes to the Scheme at a rate of 3.00% of members' salaries for full-time University employees. The University's contributions in 2019 were $13,565,000 (2018 $12,450,000).

6.3 Cooperative Research Centres

The University received Commonwealth Funding under the Cooperative Research Centres Program for the establishment of the following Cooperative Research Centres:

Bushfire and Natural Hazards CRC - a cooperative research centre with the core participants including multiple State Fire and Emergency Services organisations, Bureau of Meteorology, State Government departments, seventeen Universities and research institutes including The Australian National University and the Red Cross. Total investment for the Centre is $70,800,000. The University's contribution is in-kind on a project basis, with the total contribution being identified at the Centre end date. The research agenda will focus on the following broad areas of work: (i) Economics, Policy and Decision Making; (ii) Resilient People, Infrastructure, Institutions and Landscapes; and (iii) Bushfire and Natural Hazard risks. On 1 July 2013, the Bushfire and Natural Hazards CRC was established for a period of 8 years.

Space Environment Management CRC - a cooperative research centre with the core participants including the Australian National University, EOS Space Systems Pty Ltd, RMIT University and three international collaborations with a total investment of approximately $57,000,000 over five years. The University's total contribution will be $5,795,000 over five years. The research agenda will focus on the following broad areas of work: (i) tracking, characterising and identifying objects in orbit; (ii) orbit determination and predicting behaviours of space objects; (iii) space asset management; and (iv) preservation of the space environment. The Centre was established on 1 July 2014 for a period of five years.

Costs for all Cooperative Research Centres are expensed as incurred except where future benefits are expected beyond reasonable doubt to exceed those costs. In 2019 all costs were expensed.

6.4 Subsidiaries

Name of Entity

Principal Activity

Place of Incorporation

and Operation

Ownership Interest Held by the University

2019 2018

ANU Enterprise Pty Limited (ANUE) was incorporated in 1979 as a company limited by shares1

Activities include the undertaking of research and experimental work and the promotion and exploitation of techniques and processes derived or developed from research and experimental work.

Australia

100%

100%

ANU (UK) Foundation was incorporated in 2007 as a private limited company limited by guarantee

Principal activity is to facilitate the advancement of education through the establishment of a registered charity.

England & Wales

100%

100%

1 ANU Enterprise Pty Limited is the 100% owner of Australian Scientific Instruments Pty Limited and The Social Research Centre which was acquired in 2014 and ANU Limited (PNG) established in 2018.

Composition of the subsidiaries

Principal Activity

Place of Incorporation

and Operation

Number of Wholly- owned Subsidiaries

2019 2018

Research & experimental works

Australia

1

1

Charity

England & Wales

1

1

2

2

Financial Support

ANU Enterprise Pty Limited

The University has provided ANU Enterprise Pty Limited a loan to assist in the acquisition of The Social Research Centre. Details of the loan are: principal $6,000,000; interest rate 6.00% per annum or at such other rate as may be agreed by the parties from time to time; term 7 years; and principal repayments of $250,000 per quarter commencing 30 September 2015. Repayment of the loan is not subject to the financial performance of The Social Research Centre.

On 28 November 2019, the original loan agreement has been varied to provide ANUE a loan holiday period of 1.5 years from 1 January 2019 to 30 June 2020 and extend the term of the loan until 31 December 2022.

6.5 Acquittal of Australian Government Financial Assistance

The information provided in this note is only relevant to the University.

Note 6.5A: Education - CGS and Other Education Grants

Commonwealth Grants Scheme1

Access & Participation Programme2

Disability Support Programme

National Institutes Funding

Total

Notes

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

83,676

82,789

351

288

44

54

203,620

199,824

287,691

282,955

Revenue for the Period

1.1A (a)

83,676

82,789

351

288

44

54

203,620

199,824

287,691

282,955

Surplus/(deficit) from the previous year

-

-

-

-

-

-

-

-

-

-

Total Revenue Including Accrued Revenue

83,676

82,789

351

288

44

54

203,620

199,824

287,691

282,955

Less expenses including accrued expenses

83,676

82,789

351

288

44

54

203,620

199,824

287,691

282,955

Surplus/(Deficit) for Reporting Period

-

-

-

-

-

-

-

-

-

-

1 Includes the basic CGS grant amount, CGS-Regional Loading and CGS-Enabling Loading.

2 Includes Higher Education Equity Support Programme.

Note 6.5B: Higher Education Loan Programs (excl OS-HELP)

HECS - HELP

FEE - HELP3

SA - HELP

Total

Notes

2019

2018

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

64,499

61,118

23,523

28,405

2,005

1,910

90,027

91,433

Revenue for the Period

1.1A(b)

64,499

61,118

23,523

28,405

2,005

1,910

90,027

91,433

Surplus/(deficit) from the previous year

-

-

-

-

-

-

-

-

Total Revenue Including Accrued Revenue

64,499

61,118

23,523

28,405

2,005

1,910

90,027

91,433

Less expenses including accrued expenses

64,499

61,118

23,523

28,405

2,005

1,910

90,027

91,433

Surplus/(Deficit) for Reporting Period

-

-

-

-

-

-

-

-

Note 6.5C: Scholarships

Commonwealth Education Costs Scholarships4

Commonwealth Accommodation Scholarships

Total

Notes

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

-

-

-

-

-

-

Revenue for the Period

-

-

-

-

-

-

Surplus/(deficit) from the previous year

192

192

58

58

250

250

Total Revenue Including Accrued Revenue

192

192

58

58

250

250

Less expenses including accrued expenses

-

-

-

-

-

-

Surplus/(Deficit) for Reporting Period

192

192

58

58

250

250

4Includes Grandfathered Scholarships, National Priority and National Accommodation Priority Scholarships respectively.

Note 6.5D: Department of Education

Research Training Programme

Research Support Programme

Total

Notes

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

57,772

57,189

65,422

63,214

123,194

120,403

Net accrual adjustments

-

-

-

-

-

-

Revenue for the Period

1.1A(c)

57,772

57,189

65,422

63,214

123,194

120,403

Surplus/(deficit) from the previous year

(3)

2,895

-

-

(3)

2,895

Total Revenue Including Accrued Revenue

57,769

60,084

65,422

63,214

123,191

123,298

Less expenses including accrued expenses

57,153

60,087

65,422

63,214

122,575

123,301

Surplus/(Deficit) for Reporting Period

616

(3)

-

-

616

(3)

Research Training Program has replaced Australian Postgraduate Awards, International Postgraduate Research Scholarships and Research Training Scheme in 2018. 2017 data for the programs that have been replaced should be reported in the Research Training Program comparatives.

Research Support Program has replaced Joint Research Engagement, JRE Engineering Cadetships, Research Block Grants and Sustainable Research Excellence in Universities in 2018.

Note 6.5E: Total Higher Education Provider Research Training Program expenditure

Domestic Students

Overseas Students

Total

Notes

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

Research training program fees offsets

37,601

38,224

2,895

3,990

40,496

42,214

Research training program stipends

13,534

14,470

2,465

2,665

15,999

17,135

Research training program allowances

92

114

566

624

658

738

Total for all types of support

51,227

52,808

5,926

7,279

57,153

60,087

Please refer to the Commonwealth Scholarship Guidelines for expenditure definitions for the Research Training Program

The total for all types of support for domestic and overseas students is expected to match the Research Training Program expenses, including accrued expenses, at Note 6.5D above in respect to the 2018 year.

Note 6.5F: Australian Research Council Grants

(a) Discovery

Projects

Fellowships

Indigenous Research Development

Early Career Research Award

Total

Notes

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

19,953

19,339

10,659

12,412

(4)

-

6,999

5,452

37,607

37,203

Net accrual adjustments

42

-

-

-

-

-

31

-

73

-

Revenue for the Period

1.1A(e)(i)

19,995

19,339

10,659

12,412

(4)

-

7,030

5,452

37,680

37,203

Surplus/(deficit) from the previous year

16,689

16,874

10,291

13,030

129

390

3,441

4,743

30,550

35,037

Total Revenue Including Accrued Revenue

36,684

36,213

20,950

25,442

125

390

10,471

10,195

68,230

72,240

Less expenses including accrued expenses

19,158

19,524

11,784

15,151

123

261

6,048

6,754

37,113

41,690

Surplus/(Deficit) for Reporting Period

17,526

16,689

9,166

10,291

2

129

4,423

3,441

31,117

30,550

Note 6.5F: Australian Research Council Grants (continued)

(b) Linkages

Infrastructure

Projects

Total

Notes

2019

2018

2019

2018

2019

2018

$'000

$'000

$'000

$'000

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

6,524

5,162

2,160

2,225

8,684

7,387

Net accrual adjustments (AASB 15)

(489)

-

-

-

(489)

-

Revenue for the Period

1.1A(d)(ii)

6,035

5,162

2,160

2,225

8,195

7,387

Surplus/(deficit) from the previous year

1,413

1,567

2,406

3,937

3,819

5,504

Total Revenue Including Accrued Revenue

7,448

6,729

4,566

6,162

12,014

12,891

Less expenses including accrued expenses

1,905

5,316

1,834

3,756

3,739

9,072

Surplus/(Deficit) for Reporting Period

5,543

1,413

2,732

2,406

8,275

3,819

Note 6.5F: Australian Research Council Grants (continued)

(c) Networks and Centres

Centres

Notes

2019

2018

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

12,459

12,227

Net accrual adjustments

651

Revenue for the Period

1.1A(d)(iii)

13,110

12,227

Surplus/(deficit) from the previous year

3,226

3,896

Total Revenue Including Accrued Revenue

16,336

16,123

Less expenses including accrued expenses

12,674

12,897

Surplus/(Deficit) for Reporting Period

3,662

3,226

(d) Industrial Transformation

Centres

Notes

$'000

$'000

2019

2018

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

889

873

Revenue for the Period

1.1A(d)(iv)

889

873

Surplus/(deficit) from the previous year

873

-

Total Revenue Including Accrued Revenue

1,762

873

Less expenses including accrued expenses

101

-

Surplus/(Deficit) for Reporting Period

1,661

873

Note 6.5G: OS-HELP

Notes

2019

2018

$'000

$'000

Financial assistance received in cash during the reporting period (total cash received from the Commonwealth for the Programmes)

3,987

3,361

Less expenses including accrued expenses

3,891

3,358

Net accrual adjustments

-

-

Revenue for the Period

96

3

Surplus/(deficit) from the previous year

(202)

(205)

Surplus/(Deficit) for Reporting Period

1.1A(e)(i)

(106)

(202)

Note 6.5H: Student Services and Amenities Fee

Notes

2019

2018

$'000

$'000

Unspent/(overspent) revenue from previous period

4,574

3,801

SA-HELP revenue earned

1.1A(b)

2,005

1,910

Student services fees direct from Students

1.1C

3,966

4,711

Total Revenue Expendable in the Period

10,545

10,422

Student services expenses during period

4,256

5,848

Surplus/(Deficit) for Reporting Period

6,289

4,574