6.1 Remuneration of Auditors

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):

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

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

Composition of the subsidiaries

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

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

Note 6.5C: Scholarships

Note 6.5D: Department of Education

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

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

Note 6.5F: Australian Research Council Grants (continued)

(b) Linkages

Note 6.5F: Australian Research Council Grants (continued)

(c) Networks and Centres

(d) Industrial Transformation

Note 6.5G: OS-HELP

Note 6.5H: Student Services and Amenities Fee