THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011 Appendic es MAR12 CRICOS Provider Number 00025B ANNUAL REPORT 2011 APPENDICES

Transcription

1 MAR12 CRICOS Provider Number 00025B THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011 Appendic es ANNUAL REPORT 2011 APPENDICES

2 Contents Appendix A Annual Financial Statements 1 Appendix B Staff Activity Overseas 72 Public availability note This volume is available from the Office of Marketing and Communications (see inside back cover) or online at ISSN (print) ISSN (online) Interpreter Service Statement The University of Queensland is committed to providing accessible services to people from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, please contact UQ s Institute of Modern Languages on (07) to arrange an interpreter to effectively communicate this report to you. Copyright notice The University of Queensland 2012 COVER: Part of the UQ Solar array situated on the rooftop of the UQ Centre at St Lucia campus. On completion in June 2011, UQ s 1.22 megawatt solar array became Australia s largest rooftop photovoltaic power system. It generates about five percent of peak power demand at the St Lucia campus and plays a key role in UQ s renewable energy research.

3 ANNUAL FINANCIAL STATEMENTS APPENDIX A ANNUAL FINANCIAL STATEMENTS Foreword The financial statements are general purpose financial reports prepared in accordance with prescribed requirements. The financial statements comprise the following components: Income Statements; Statements of Comprehensive Income; Statements of Financial Position; Statements of Changes in Equity; Statements of Cash Flows; Notes to the Financial Statements. Within the above components, the financial statements have been aggregated into the following disclosures: University (as an entity in its own right and to which the remainder of this Annual Report refers) column headed Parent; and Group (University and controlled entities: refer to note 41 for a listing of these entities) column headed Consolidated. Financial Statements Income Statements 2 Statements of Comprehensive Income 3 Statements of Financial Position 4 Statements of Changes in Equity 5 Statements of Cash Flows 6 Notes to the Financial Statements 7 Notes Note 1 Summary of significant accounting policies 7 Revenue Note 2 Australian Government financial assistance including HECS HELP and FEE HELP 12 Note 3 State and local government financial assistance 16 Note 4 Fees and charges 16 Note 5 Investment revenue and income 16 Note 6 Royalties, trademarks and licences 17 Note 7 Consultancy and contracts 17 Note 8 Other revenue and income 17 Expenses Note 9 Employee related expenses 18 Note 10 Depreciation and amortisation 18 Note 11 Repairs and maintenance 19 Note 12 Borrowing costs 19 Note 13 Impairment of assets 19 Note 14 Other expenses 20 Note 15 Income tax 21 Note 16 Losses and special payments 21 Note 17 Remuneration of auditors 22 Assets Note 18 Cash and cash equivalents 22 Note 19 Receivables 24 Note 20 Inventories 24 Note 21 Held to maturity investments 25 Note 22 Other non financial assets 25 Note 23 Available for sale financial assets 25 Note 24 Other financial assets at fair value through profit or loss 25 Note 25 Investments accounted for using the equity method 26 Note 26 Property, plant and equipment 27 Note 27 Intangible assets 29 Note 28 Deferred tax assets and liabilities 31 Liabilities Note 29 Trade and other payables 33 Note 30 Borrowings 33 Note 31 Provisions 34 Note 32 Current tax liabilities 37 Note 33 Other liabilities 37 Equity Note 34 Reserves and retained earnings 38 Note 35 Non controlling interest 39 Disclosure Notes Note 36 Reconciliation of operating result after income tax to net cash flows from operating activities 39 Note 37 Non cash investing and financing activities 40 Note 38 Commitments 40 Note 39 Related parties 42 Note 40 Contingencies 43 Note 41 Subsidiaries 44 Note 42 Key executive management personnel and remuneration 46 Note 43 Financial risk management 51 Note 44 Acquittal of Australian Government financial assistance 58 Certificates Management Certificate 69 Independent Audit Report 70 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

4 INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 Consolidated Parent Notes $'000 $'000 $'000 $'000 Income from continuing operations Australian Government financial assistance Australian Government grants 2 750, , , ,421 HECS - HELP 2 130, , , ,886 FEE - HELP 2 21,775 19,879 21,775 19,879 State and local government financial assistance 3 66,081 59,026 65,088 58,126 HECS HELP student payments 29,306 27,835 29,306 27,835 Fees and charges 4 298, , , ,116 Investment revenue 5 31,068 17,192 40,384 15,723 Royalties, trademarks and licences 6 31,783 19,216 11,210 8,660 Consultancy and contracts 7 91,978 79,289 73,171 64,092 Other revenue 8 222, , , ,624 Total revenue from continuing operations 1,673,679 1,466,445 1,609,850 1,402,362 Share of profit / (loss) from associates using the equity method 25 37,236 22, Other investment income 5 (5,550) 14,728 30,673 24,569 31,686 37,314 30,673 24,569 Total income from continuing operations 1,705,365 1,503,759 1,640,523 1,426,931 Expenses from continuing operations Employee related expenses 9 817, , , ,535 Depreciation and amortisation ,075 84, ,112 84,064 Repairs and maintenance 11 65,827 41,168 65,655 40,966 Finance costs 12 12,736 11,545 12,585 11,523 Impairment of assets 13 3,393 10,196 6,481 10,614 Other expenses , , , ,336 Total expenses from continuing operations 1,513,896 1,363,707 1,436,837 1,288,038 Operating result before income tax 191, , , ,893 Income tax (expense) / revenue 15 1,307 (847) - - Operating result from continuing operations 192, , , ,893 Operating result attributable to non-controlling interest 1, Operating result attributable to members of The University of Queensland 34(b) 193, , , ,893 The above Income Statements should be read in conjunction with the accompanying notes. 2 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

5 ANNUAL FINANCIAL STATEMENTS APPENDIX A STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2011 Consolidated Parent $'000 $'000 $'000 $'000 Operating result after income tax for the period 193, , , ,893 Other comprehensive income Gain(loss) on revaluation of land and buildings, net of tax (169,171) 103,768 (169,170) 103,768 Gain(loss) on value of available for sale financial assets, net of tax Business combination reserve Exchange differences on translation of foreign operations - (180) - - Total comprehensive income (168,971) 103,589 (169,170) 103,769 Total comprehensive income attributable to non-controlling interest (1,164) (949) - - Total comprehensive income attributable to members of The University of Queensland 23, ,746 34, ,662 The above Statements of Comprehensive Income should be read in conjunction with the accompanying notes. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

6 STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2011 Consolidated Parent Restated Restated Restated Restated /12/2010 1/1/ /12/2010 1/1/2010 Notes $'000 $'000 $'000 $'000 $'000 $'000 ASSETS Current assets Cash and cash equivalents , , , , , ,958 Receivables , , , ,274 96,289 78,223 Inventories 20 5,236 4,718 7,555 4,399 4,175 4,369 Held-to-maturity investments 21 11,500 93, ,000 80,000 - Other non-financial assets 22 8,014 4,418 8,784 7,558 4,094 8,484 Total current assets 515, , , , , ,034 Non-current assets Receivables ,516 6,671 5,126 Inventories Investments accounted for using the equity method 25 64,450 27,704 5, Property, plant and equipment 26 2,534,399 2,631,278 2,440,883 2,530,580 2,627,043 2,437,997 Deferred tax assets 28 5,228 4,451 2, Intangible assets 27 10,526 11,366 13,022 9,901 11,224 13,022 Available-for-sale financial assets 23 7,590 6,753 12,205 25,592 25,984 31,274 Other financial assets at fair value through profit or loss , ,247 96, , ,471 80,860 Total non-current assets 2,725,586 2,782,979 2,570,368 2,715,735 2,776,393 2,568,279 Total assets 3,240,616 3,225,517 2,985,876 3,198,577 3,177,794 2,932,313 LIABILITIES Current liabilities Trade and other payables 29 98,372 85,566 83,698 71,996 62,309 47,671 Borrowings 30 6,167 5,158-5,987 5,054 - Provisions , , , , , ,663 Current tax liabilities 32 (198) 3,398 (329) Other current liabilities 33 82, , ,339 83, , ,443 Total current liabilities 321, , , , , ,777 Non-current liabilities Borrowings , , , , , ,368 Provisions 31 23,652 18,544 17,193 22,848 17,547 16,041 Deferred tax liabilities Other non-current liabilities 33 40,147 35,661 33,005 30,949 28,689 27,268 Total non-current liabilities 177, , , , , ,677 Total liabilities 499, , , , , ,454 Net assets 2,740,862 2,714,458 2,469,364 2,738,035 2,703,519 2,460,859 EQUITY Parent entity interest Reserves 34(a) 1,639,350 1,808,321 1,704,685 1,639,151 1,808,321 1,704,552 Retained earnings 34(b) 1,096, , ,634 1,098, , ,307 Parent entity interest 2,736,026 2,711,057 2,467,319 2,738,035 2,703,519 2,460,859 Non-controlling interest 35 4,836 3,401 2, Total equity 2,740,862 2,714,458 2,469,364 2,738,035 2,703,519 2,460,859 The comparative figures for 2010 opening and closing balances have been restated to reflect the impact of prior year adjustments in compliance with Australian Accounting Standards. The above Statements of Financial Position should be read in conjunction with the accompanying notes. 4 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

7 ANNUAL FINANCIAL STATEMENTS APPENDIX A STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2011 Consolidated Parent Notes $'000 $'000 $'000 $'000 Total equity at the beginning of the year 2,714,458 2,469,359 2,703,519 2,460,857 Increment/(decrement) on revaluation of property, plant & equipment 34(a) (169,171) 103,768 (169,170) 103,768 Business combination reserve 34(a) Increment/(decrement) on revaluation of available for sale financial assets 34(a) Exchange differences on translation of foreign operations - (180) - - Gains (losses) taken to equity (168,971) 103,589 (169,170) 103,769 Operating result for the period 192, , , ,893 Total comprehensive income for the year 23, ,794 34, ,662 Contributions of equity, net of transaction costs 2,599 2, Total equity at the end of the year 2,740,862 2,714,458 2,738,035 2,703,519 The above Statements of Changes in Equity should be read in conjunction with the accompanying notes. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

8 STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2011 Consolidated Parent Notes $'000 $'000 $'000 $'000 Cash flows from operating activities Australian Government Grants , , , ,859 State and Local Government Grants 2(h) 66,081 58,970 65,088 58,070 Receipts from student fees and other customers 600, , , ,454 Interest received 18,154 11,852 16,827 10,743 Dividends and distributions received 5,544 3,288 14,348 3,343 Payments to suppliers and employees (inclusive of goods and services tax) (1,291,348) (1,280,497) (1,340,361) (1,194,611) Income taxes (paid) / refunded (4,736) Finance costs Net cash provided by / (used in) operating activities , , , ,588 Cash flows from investing activities Proceeds from sale of property, plant and equipment and intangibles Payments for property, plant and equipment (186,956) (163,994) (185,706) (162,087) Net (increase) / decrease in term deposits 81,900 (93,280) 70,000 (80,000) Proceeds from sale of other financial assets , Payments for other financial assets (1,536) (4,607) (1,079) (1,048) Loans from/(to) controlled entities - - (5,645) (2,247) Loans from/(to) external entities (230) (105) - - Reduction in cash on deconsolidation Cash held in subsidiary acquired Net cash provided by / (used in) investing activities (105,412) (248,966) (121,895) (244,411) Cash flows from financing activities Proceeds from issue of convertible note Proceeds from borrowings from external entity 2,721-2,721 - Repayment of borrowings to external party Proceeds from issue of shares 2,599 2, Finance lease payments (13,849) (9,154) (13,615) (9,053) Unrealised Foreign Exchange movement Receipt of monies held on behalf of third parties (40,417) (37,221) (40,417) (37,221) Net cash provided by / (used in) financing activities (48,946) (44,069) (51,311) (46,274) Net increase / (decrease) in cash and cash equivalents 142,346 (56,281) 144,013 (55,097) Cash and cash equivalents at the beginning of the financial year 238, , , ,958 Effects of exchange rate changes on cash and cash equivalents (299) (1,370) (245) (1,018) Cash and cash equivalents at the end of the financial year , , , ,843 The above Statements of Cash Flows should be read in conjunction with the accompanying notes. 6 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

9 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Summary of significant accounting policies The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report includes separate financial statements for The University of Queensland as an individual entity and the consolidated entity consisting of The University of Queensland and its controlled entities. (a) Basis of preparation These financial statements are a general purpose financial report and have been prepared in accordance with the Financial and Performance Management Standard, issued under Section 57 of the Financial Accountability Act 2009, applicable Australian equivalents to International Financial Reporting Standards, Urgent Issues Group Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Financial Statement Guidelines for Australian Higher Education Providers for the 2011 reporting period issued by the Department of Education, Employment and Workplace Relations (DEEWR). Statement of compliance The financial statements of The University of Queensland, and notes thereto, comply with Australian Accounting Standards some of which contain requirements specific to not for profit entities that are inconsistent with International Financial Reporting Standards requirements (IFRS). Date of authorisation for issue The financial statements were authorised for issue by The University of Queensland on 23 February Reporting format In accordance with the Financial and Performance Management Standard, the University prepares Income Statements, Statements of Comprehensive Income, Statements of Financial Position, Statements of Changes in Equity and Statements of Cash Flows. The format of these statements is consistent with the Financial Statement Guidelines for Australian Higher Education Providers (HEPs) for the 2011 Reporting Period issued by DEEWR. Historical cost convention The financial report has been prepared under the historical cost convention, except for available for sale financial investments, derivative financial instruments, certain classes of property, plant and equipment and investment property, which have been measured at fair value. Rounding s in the financial report have been rounded off to the nearest thousand dollars, or in certain cases, the nearest dollar. Accrual basis of accounting The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical estimates. It also requires management to exercise its judgement in the process of applying the University s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are as follows: Fair value of financial assets and liabilities The fair value of financial assets and financial liabilities must be estimated for recognition, measurement disclosure purposes. Further information is contained in note 1(k). Fair value of property, plant and equipment Land, buildings, infrastructure, land improvements and heritage and cultural assets, including the museum collections, are measured at fair values less any accumulated depreciation and accumulated impairment losses. All such assets are valued by an external valuer on a cyclical basis, or earlier if there is material movement. Further information is contained in note 1(l). Impairment of assets All non-current physical and intangible assets are assessed for impairment on an annual basis. Further information is contained in note 1(g). All financial assets are assessed for impairment on an annual basis. Further information is contained in note1 (k). Depreciation Buildings, computing equipment, other plant and equipment, infrastructure assets, land improvements and library collections are depreciated over their estimated economic useful lives. Further information is contained in note 1(l). (b) Basis of consolidation The consolidated financial statements comprise the financial statements of The University of Queensland and its subsidiaries as at 31 December each year ( the Group ). Subsidiaries are all those entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. (c) Foreign currency translation Items included in the financial statements of each of the Group s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Australian dollars, which is The University of Queensland s functional and presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income. (d) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: (i) Student fees Student fees are recognised as debtors following the census date for each session with the net value, full value of student fees less any fee waivers or discounts, recognised as revenue. (ii) Sale of goods Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered to have passed to the buyer at the time of delivery of the goods to the customer. (iii) Rendering of services Revenue from rendering a service is recognised only when the entity has a right to be compensated, it is probable that compensation will be received, and the amount of revenue and the stage of completion of a transaction can be reliably measured. (iv) Interest Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. (v) Contributions Grants, contributions, donations and gifts that are non reciprocal in nature are recognised as revenue in the year in which the group obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

10 Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would be purchased if they had not been donated. (e) Income tax The University is exempt from paying income tax in Australia. With the exception of the UQ Investment Trust, the UQ Foundation Trust, UQ Sport Ltd, UQ College Ltd, UQ Health Care Ltd, SARV Pty Ltd, IMBcom Asset Trust, and UQ Holdings Pty Ltd, all of the controlled entities of the University are taxable entities with the charge for income tax expense based on profit for the year adjusted for any non assessable or disallowed items. Where income tax is incurred, it is expensed and provided for in the financial period in which the tax is incurred. Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences except: when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss or; when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax losses can be utilised except: when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss; or when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised. Unrecognised deferred income tax assets are reassessed each reporting period and are recognised to the extent that it has become probable that the future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period. Income tax relating to items recognised directly in equity is recognised in equity and not in profit or loss. Deferred tax assets and liabilities are offset only if a legally enforceable right exists to offset the current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. (f) Other taxes Revenue, expenses and assets are recognised net of the amount of Goods and Services Tax (GST) except where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. (g) Impairment of assets All non current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the asset s recoverable amount is determined. Any amount by which the asset s carrying amount exceeds the recoverable amount is recorded as an impairment loss. The asset s recoverable amount is determined as the higher of the asset s fair value less costs to sell and depreciated replacement cost. An impairment loss is recognised immediately in the Income Statement, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevant class to the extent available. (h) Cash and cash equivalents Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and on hand and short term deposits with an original maturity of 90 days or less. For the purposes of the Statement of Cash Flows, cash includes cash on hand, at call deposits with banks or financial institutions and investments in money market instruments maturing within less than 90 days and net of bank overdrafts. (i) Trade receivables Trade receivables are recognised at fair value, less provision for impairment. Trade receivables are due for settlement no more than 30 days from the date of recognition. Collectability of trade receivables is reviewed on an ongoing basis. All bad debts are written off in the year in which they are recognised and are charged against the operating result. A provision for impairment is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The balances of these provisions are set out in Note 19. (j) Inventories Inventories are stated at the lower of cost and current replacement cost using the first in first out or weighted average cost formula. Direct costs and an appropriate proportion of variable and fixed overhead expenses are included, where applicable. Those stores held by the University are essentially for internal use. Livestock is held for teaching and research purposes and is carried at market value. (k) Financial instruments Investments and other financial assets Financial assets are initially recognised at their fair value. Transaction costs directly attributable to the acquisition or issue are included unless the financial asset is held at fair value through profit or loss. Subsequent to initial recognition, the University classifies its financial assets into the following categories: (1) financial assets at fair value through profit or loss, (2) loans and receivables, (3) held to maturity investments and (4) available for sale financial assets. Financial assets at fair value through profit or loss Financial assets are classified in this category if they are (1) held for trading or (2) 8 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

11 ANNUAL FINANCIAL STATEMENTS APPENDIX A designated as such by the University. They are measured at their fair value with any gain or loss arising from a change in fair value recognised in profit or loss. Those financial assets held for trading include short term investments and derivatives. Those financial assets designated by the Group include investments in commercialisation entities. Loans and receivables Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They have been classed as noncurrent where they are not expected to be recovered or settled within twelve months following year end. They are measured at amortised cost using the effective interest method. Loans to related entities are interest free and as there is no set period for repayment, they are measured at their original value. Held to maturity investments Held to maturity investments are non derivative financial assets with fixed or determinable payments and fixed maturity which the Group has a positive intention to hold to maturity. They are measured at amortised cost using the effective interest method. Available for sale financial assets Available for sale financial assets are those non derivative financial assets not included in the above categories. They are measured at their fair value with any gain or loss arising from a change in fair value recognised directly in equity. Where the fair value cannot be measured reliably, the asset is measured at cost. Fair value The fair value of investments traded in an active market is based on the quoted market prices at balance date. The fair value of investments that are not traded in an active market is estimated using valuation techniques consistent with accepted market practice. These include reference to the fair values of recent arm s length transactions, involving the same instruments or other instruments that are substantially the same and discounted cash flow analysis. Investment in subsidiaries Subsidiaries are those entities controlled by the University. Control exists when the University has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Investments in subsidiaries are recorded at cost in the University s parent financial statements. Investment in associates and jointly controlled entities Associates are those entities which the University has significant influence, but not control, over the financial and operating policies. Jointly controlled entities are those where the University has joint control, established by contractual agreement. Investments in associated entities and jointly controlled entities are accounted for using the equity method of accounting in the University s consolidated financial statements and are recorded at cost in the University s parent financial statements. Investments in associated entities and jointly controlled entities which are commercialisation entities are recorded at fair value through profit or loss in both the University s parent and consolidated financial statements on the basis that this provides more relevant information than if valued using the equity method of accounting. Impairment The carrying value of all financial assets is assessed at balance date to determine if there is any objective evidence that a financial asset or group of financial assets is impaired. If any such evidence exists, an impairment loss is recognised in the Income Statement. De recognition of financial instruments Financial assets are de recognised when the contractual rights to the cash flows from the financial asset expire or when the financial assets are transferred to a third party. Financial liabilities Financial liabilities are initially recognised at their fair value. Transaction costs directly attributable to the acquisition or issue are included unless the financial liability is held at fair value through profit or loss. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method. (l) Property, plant and equipment Land, buildings, infrastructure, land improvements and heritage and cultural assets, including the museum collections are measured at fair value less any applicable accumulated depreciation and subsequent accumulated impairment losses. Land Land was independently valued in 2011, as at 31 December 2011 by Colliers International at current market value. Land improvements Land Improvements assets were independently valued in 2011, as at 31 December 2011, by Colliers International at current market value where a depth in market can be identified or as replacement cost where no depth in market can be established. In respect of land improvements the asset recognition threshold is $10,000. The valuation was prepared on the following key assumptions: Not all land improvement assets were sighted by the valuers. Examples of assets which could be sighted include underground cables and pipes. The valuers have therefore relied on areas and quantities provided by the University in determining the fair value. Buildings Buildings were independently valued in 2011, as at 31 December 2011 by Colliers International at current market value where a depth in market can be identified or at replacement cost where no depth in market can be established. The asset recognition threshold is $10,000. The valuation was prepared on the following key assumptions: In determining building areas, the valuers have relied on site plans provided by the University. Basic on-site measurements were only undertaken by the valuers where site plans were not available. These site plans are the same as those used in previous valuations. All sites are free from site contamination or environmental issues. Capital works under construction Capital works under construction are shown at cost. Contracts signed for the purpose of building projects that have not been completed at 31 December 2011 have been disclosed as capital expenditure commitments (refer Note 38). Leasehold Improvements Leasehold improvements are valued at cost. Leased Assets Leased assets are recognised and valued on the basis applying to assets that have the same functionality Plant & equipment Motor vehicles, computing equipment and other plant and equipment are valued at cost. The asset recognition threshold is $5,000. Library collections Heritage Collection The University s collection of rare materials and manuscripts is considered to be a heritage collection. Management considers that the collection does not lose any value over time. The University s heritage collection was independently valued in 2009 using fair value principles. The asset recognition threshold for rare materials and manuscripts is $1. Reference Collection The University s collection of publications, are recorded at average replacement cost, based on the average cost of purchases over a five year rolling period. Theses in this collection are recorded at the cost of reproducing the document from an electronic source. The asset recognition threshold is $1. Common-use Collection This collection has been valued at average replacement cost, based on the average cost of purchases over a five year rolling period. The insured value of the expensed common-use collection is $ million. Museums & other collections (including Works of Art) The University Anthropology, Antiquities and Art Museum collections are independently valued at fair value by an external party on a cyclical basis at 31 December between 2009 and The asset recognition threshold is $1. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

12 Infrastructure assets Infrastructure assets were independently valued in 2011, as at 31 December 2011, by Colliers International at current market value where a depth in market can be identified or as replacement cost where no depth in market can be established. In respect of infrastructure the asset recognition threshold is $10,000. The valuation was prepared on the following key assumptions: Not all infrastructure assets were sighted by the valuers. Examples of assets which could not be sighted include underground cables and pipes. The valuers have therefore relied on areas and quantities provided by the University in determining the fair value. Heritage assets Heritage assets that provide operational service to the University are reported as part of the generic asset class to which they belong and are valued on the basis applying to assets that have the same functionality. Revaluations of property, plant and equipment Non current physical assets measured at fair value are comprehensively revalued at least once every five years with interim valuations, using appropriate indices, being performed on an annual basis where the change would be material to that class of asset. On revaluation, accumulated depreciation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount. Any revaluation surplus is credited to a revaluation reserve included in the equity section of the Statements of Financial Position unless it reverses a revaluation decrease of the same class of asset previously recognised in the Income Statements. Any revaluation deficit is recognised in the Income Statements unless it directly offsets a previous surplus from the same class of asset in the revaluation reserve. Recognition and de-recognition of property, plant and equipment The cost of property, plant and equipment includes the purchase or construction cost plus any costs or fees incidental to the purchase or construction of the asset An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Income Statements. Depreciation Buildings, computing equipment, other plant and equipment, infrastructure assets, land improvements and library collections are depreciated over their estimated economic useful lives using either the straight line or diminishing value method. All other items of property, plant and equipment including land, capital works under construction, rare materials and manuscripts, museums and other collections are not depreciated. Leasehold improvements and leased assets are depreciated over the unexpired period of the lease. Buildings, land improvements and infrastructure assets are treated as complex assets. A complex asset is a physical asset capable of disaggregation into identifiable components that are subject to regular replacement. These components are assigned useful lives for the asset to which they relate and are depreciated accordingly. The depreciation rates used are: Buildings 1% 7% straight line Plant and 10% 20% straight line equipment Infrastructure assets Land improvements 1% 5% straight line 1% 10% straight line Library collections 15% diminishing value The assets useful lives are reviewed and adjusted if appropriate at each financial year end. (m) Intangible assets Expenditure during the research phase is recognised in the Income Statements as an expense when it is incurred. Development expenditure is capitalised only when technical feasibility studies identify that the project will deliver future economic benefits and these benefits can be measured reliably. The cost of intangible assets includes the purchase price or generation costs or fees incidental to the purchase or generation of the asset. Capitalised development expenditure is stated at cost less accumulated amortisation. Amortisation is calculated using the straight line method to allocate the cost over the period of the expected benefit which in the case of system development costs is 8 years. For intangibles the asset recognition threshold is $100,000. (n) Trade Payables Trade creditors are recognised on receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. s owing are unsecured and are generally settled on 30 day terms. (o) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Income Statements over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Finance costs Finance costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale are added to the cost of those assets until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised as an expense when incurred. (p) Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. (q) Employee benefits (i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date, in which case it would be classified as a non current liability. (ii) Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. (iii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an 10 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

13 ANNUAL FINANCIAL STATEMENTS APPENDIX A employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance date are discounted to present value. (r) Superannuation The UniSuper Defined Benefit Division (DBD) is a multi employer defined benefit plan under superannuation law but, as a result of amendments to Clause 34 of UniSuper, a defined contribution plan under AASB 119 Employee Benefits. Clause 34 of the UniSuper Trust Deed outlines the process UniSuper must undertake (including employer notifications and notice periods) in order to request additional contributions from employers if the UniSuper assets are considered by the Trustees to be insufficient to provide benefits payable under the Deed. Previously at least four years notice that such a request may be made was required. If such a request was agreed to by employers then members were also required to contribute additional contributions equal to one half of the rate at which their employer was prepared to contribute. If employers did not agree to increase contributions the Trustees were to reduce benefits on a fair and equitable basis. On the 3rd November 2006 an amendment to Clause 34 of the UniSuper Trust Deed was put to the UniSuper Consultative Committee and passed to become effective on 31 December In essence it provided a clear understanding (subject to Superannuation Law) that if actuarial investigations determined there are insufficient funds to provide benefits payable under the Deed, the Trustees must reduce the benefits payable under Division A and Division B on a fair and equitable basis. Subsequently changes to Clause 34 have been made, taking effect from 1st January 2007, that remove the requirement for employers and members to be asked to top up their contributions in the event of a prolonged shortfall in the Defined Benefit Division. (s) Third Party Investments Where a controlled entity receives shares and other securities in a company in return from the licensing and transfer of technology to that company, the value of those shares is recognised as licence revenue. Consistent with University policy, two thirds of the gross revenue is set aside for the benefit of the University. One third of the gross revenue represents a non current liability for the group to the inventors of the intellectual property. (t) Interests in Cooperative Research Centres The University has an interest in a number of Cooperative Research Centres (CRC). These Centres have varying corporate structures including unincorporated joint ventures, public companies and private companies. Contributions to CRCs are expensed when incurred and are included in the Income Statements. In the event that the research activities of a CRC move into a commercialisation phase, a separate legal entity will most likely be established and the University s share of the newly formed entity will be treated as an asset. The total contributions made to CRCs during the year were $3,052,425 (2010: $1,339,630). (u) New accounting standards and Interpretations Certain new Accounting Standards and Interpretations have been published that are not mandatory for 31 December 2011 reporting periods. The University of Queensland has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective, instead they will be applied in accordance with their respective commencement dates. Management have yet to assess the impact of AASB 9 Financial Instruments and Amendments to Australian Accounting Standards arising from AASB 9 is likely to have on the financial statements as it is anticipated that further amendments will occur. The University does not expect to implement the amendments prior to the adoption date of 1 January Initial adoption of other standards/interpretations issued but not yet effective are not expected to have a material impact on the financial statements. (v) Comparative amounts Change in accounting policy Print subscriptions were previously being capitalised as part of the library collection. Given these subscriptions are used primarily in their first year of acquisition, the University has resolved to expense them as incurred. The effect of the above changes to the library collection on the 2010 financial statements was a decrease in expenses of $32,434,475, a decrease in non current assets of $269,740,882, an increase in the library revaluation reserve of $9,480,209 and a decrease in the opening retained surplus of $311,655,566. Change in accounting estimates Depreciation of the library collection had previously been based on a useful life of 75 years. During the year, management undertook a review of the use of and useful lives of the collection and determined that the standard life be reduced from 75 years to 10 years. As a result, the University has increased the library collection depreciation rate from 2% diminishing value to 15% diminishing value. The effect of this has been an increase in depreciation for 2011 from $1.043 million to $7.821 million. Due to the high volume movement of items in the collection, it is impractical to determine what this change in depreciation rate will have in forthcoming years. Reclassifications Comparatives have been adjusted for changes in disclosures to improve comparability of information. These reclassifications have no impact on net income or net assets for the comparative period. (w) Correction of prior period errors Available for sale investment revaluation reserve The available for sale investment revaluation reserve in the Statement of Financial Position was incorrectly stated in the consolidated financial statements in both 2009 and The reserve was disclosed as having a negative value of $1,697,593 at both 31 December 2009 and 31 December The correct value in both years was nil. The error has been corrected by adjusting the 2010 comparative figures in the consolidated financial statements. The reserve is now shown at a nil value at 31 December A corresponding decrease has occurred in retained earnings. There was no effect on the Statements of Comprehensive Income. Accrued expenses Accrued expenditure in the Statements of Financial Position was incorrectly stated in the parent and consolidated financial statements in both 2009 and Trade and other payables was understated by $26,338,951 at 31 December 2009 and understated by $27,663,111 at 31 December As some of the accrued expenditure related to capitalised buildings and equipment, property, plant & equipment was also incorrectly stated in the parent and consolidated financial statements in both 2009 and Property, plant & equipment was understated by $6,963,425 at 31 December 2009 and understated by $8,661,244 at 31 December The error has been corrected by adjusting the 2010 comparative figures in the parent and consolidated financial statements. The effect on the Statement of Comprehensive Income was an increase in the operating result of the parent and consolidated entity by $373,658 for the year ended 31 December THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Australian Government financial assistance including HECS-HELP and FEE-HELP Consolidated Parent Notes $'000 $'000 $'000 $'000 (a) Commonwealth Grant Scheme and Other Grants 44.1 Commonwealth Grant Scheme #1 248, , , ,623 Indigenous Support Program Partnership & Participation Program #2 3,059 1,714 3,059 1,714 Disability Support Program Workplace Productivity Program - 1,350-1,350 Capital Development Pool - 3,127-3,127 Diversity and Structural Adjustment Fund # Transitional Cost Program 1,359 1,057 1,359 1,057 Total Commonwealth Grant Scheme and Other Grants 254, , , ,812 (b) Higher Education Loan Programs 44.2 HECS - HELP 130, , , ,886 FEE - HELP #4 21,775 19,879 21,775 19,879 Total Higher Education Loan Programs 151, , , ,765 (c) Scholarships 44.3 Australian Postgraduate Awards 17,574 14,135 17,574 14,135 International Postgraduate Research Scholarship 1,763 1,908 1,763 1,908 Commonwealth Education Cost Scholarships #5 1,265 1,482 1,265 1,482 Commonwealth Accommodation Scholarships #5 2,364 2,588 2,364 2,588 Indigenous Access Scholarships Total Scholarships 23,089 20,199 23,089 20,199 (d) DIISR Research 44.4 Joint Research Engagement Program #6 29,165 28,116 29,165 28,116 Research Training Scheme 55,288 54,167 55,288 54,167 Research Infrastructure Block Grants 23,673 24,063 23,673 24,063 Implementation Assistance Program Commercialisation Training Scheme Sustainable Research Excellence in Universities 10,817 7,698 10,817 7,698 Total DIISR Research Grants 119, , , ,689 (e) Education Investment Fund 44.5 Education Investment Fund 71,600 49,200 71,600 49,200 Total Education Investment Fund 71,600 49,200 71,600 49, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

15 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Australian Government financial assistance including HECS-HELP and FEE-HELP (continued) Consolidated Parent Notes $'000 $'000 $'000 $'000 (f) Australian Research Council 44.6 (i) Discovery 44.6(a) Project 34,839 31,184 34,839 31,184 Future ships 11,241 2,714 11,241 2,714 Australian Laureate ships 2,682 1,546 2,682 1,546 Super Science ships Federation ships 2,105 3,443 2,105 3,443 Indigenous Researchers Development Total Discovery 51,197 38,996 51,197 38,996 (ii) Linkages 44.6(b) Infrastructure 3,600 1,664 3,600 1,664 International (27) (58) (27) (58) Projects 12,502 15,134 12,502 15,134 Total Linkages 16,075 16,740 16,075 16,740 (iii) Networks and Centres 44.6(c) Centres 6,496 5,419 6,496 5,419 Total Networks and Centres 6,496 5,419 6,496 5,419 (iv) Thinking Systems 44.6(d) Thinking Systems Total Australian Research Council 74,156 61,902 74,156 61,902 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

16 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Australian Government financial assistance including HECS-HELP and FEE-HELP (continued) Consolidated Parent Notes $'000 $'000 $'000 $'000 (g) Other Australian Government Financial Assistance (i) National Health & Medical Research Council 44.7 Research Support 44.7(a) Programs 7,345 8,709 7,345 8,709 Project Grants 29,395 28,019 29,395 28,019 Development Grants Partnerships International Collaborations Targeted Calls 6,254 8,476 6,254 8,476 Centres for Research Excellence 2,618-2,618 - Total Research Support 46,965 45,824 46,965 45,824 People Support 44.7(b) Early Career ships 3,197 1,872 3,197 1,872 Established Career ships 7,418 7,730 7,418 7,730 Career Development ships 2,347 2,730 2,347 2,730 Postgraduate Scholarships Total People Support 13,831 12,920 13,831 12,920 Infrastructure Support 44.7(c) Enabling Grants Infrastructure Grants Total Infrastructure Support 1,799 1,562 1,799 1,562 Total NHMRC Grants 62,595 60,306 62,595 60,306 (ii) Other 145,287 86, ,753 86,313 Total Other Australian Government Financial Assistance 207, , , ,619 Total Australian Government financial assistance 902, , , ,186 #1 Includes the basic CGS grant amount, CGS - Regional Loading, CGS - Enabling Loading, Maths and Science Transition Loading and Full Fee Places Transition Loading. #2 Includes Equity Support Program #3 Includes Collaboration & Structural Adjustment Program #4 Program is in respect of FEE-HELP for Higher Education only and excludes funds received for VET FEE-HELP. #5 Includes National Priority and National Accommodation Priority Scholarships. #6 Includes Institutional Grants Scheme. Reconciliation Australian Government grants [(a) + (c) + (d) + (e) + (f) + (g)] 750, , , ,421 HECS-HELP payments 130, , , ,886 FEE-HELP payments 21,775 19,879 21,775 19,879 Total Australian Government financial assistance 902, , , , THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

17 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Australian Government financial assistance including HECS-HELP and FEE-HELP (continued) Consolidated Parent Notes $'000 $'000 $'000 $'000 (h) Australian Government Grants received - cash basis CGS and Other DEEWR Grants 254, , , ,812 Higher Education Loan Programs 152, , , ,964 Scholarships 23,090 20,199 23,090 20,199 DIISR Research Grants 119, , , ,689 Education Investment Fund 71,600 49,200 71,600 49,200 ARC grants - Discovery 51,197 38,996 51,197 38,996 ARC grants - Linkages 16,075 16,740 16,075 16,740 ARC grants - Networks and Centres 6,496 5,419 6,496 5,419 ARC grants - Thinking Systems NHMRC Grants 62,595 60,306 62,595 60,306 Other Australian Government Grants 145,287 86, ,753 86,313 Total Australian Government Grants received - cash basis 902, , , ,385 OS-Help (Net) Total Australian Government funding received - cash basis 902, , , ,504 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER State and local government financial assistance Consolidated Parent $'000 $'000 $'000 $'000 State government financial assistance 65,930 58,856 64,937 57,956 Local government financial assistance Total State and local government financial assistance 66,081 59,026 65,088 58,126 4 Fees and charges Consolidated Parent $'000 $'000 $'000 $'000 Course fees and charges Fee-paying overseas students 259, , , ,449 Continuing education 3,564 4,771 3,583 4,770 Fee-paying domestic postgraduate students 5,593 6,129 5,593 6,129 Fee-paying domestic undergraduate students 4,687 7,037 4,687 7,037 Fee-paying domestic non-award students Total course fees and charges 273, , , ,961 Other non-course fees and charges Examination fees Library and other fines Parking fees 4,548 5,024 4,558 5,032 Registration fees 1,716 2,282 1,717 2,288 Rental charges 6,231 5,923 5,262 3,545 Student residential fees 2,030 1,899 2,030 1,899 State clinical loading Other 9,062 10,035 9,143 9,820 Total other non-course fees and charges 24,894 26,734 24,017 24,155 Total fees and charges 298, , , ,116 5 Investment revenue and income Consolidated Parent $'000 $'000 $'000 $'000 Interest from other persons 19,846 13,816 18,994 12,380 Dividends from other corporations 11,222 3,376 21,390 3,343 Total investment revenue and income 31,068 17,192 40,384 15,723 Net fair value gains/(losses) on managed portfolio (6,319) 2,057 (6,319) 2,057 Net fair value gains/(losses) on other investments ,878 22,354 Net gain/(loss) on sale of investments , Total other investment income (5,550) 14,728 30,673 24,569 Net investment income 25,518 31,920 71,057 40, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

19 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Royalties, trademarks and licences Consolidated Parent $'000 $'000 $'000 $'000 Royalties 21,369 17,271 7,361 6,674 Licences 10,414 1,945 3,849 1,986 Total royalties, trademarks and licences 31,783 19,216 11,210 8,660 7 Consultancy and contracts Consolidated Parent $'000 $'000 $'000 $'000 Research centres 32,335 15,722 34,674 19,069 Other contract revenue 21,236 25,746 14,403 21,007 Consultancy fees 38,407 37,821 24,094 24,016 Total consultancy and contracts 91,978 79,289 73,171 64,092 8 Other revenue and income Consolidated Parent $'000 $'000 $'000 $'000 Donations and bequests 33,360 11,346 33,407 11,391 Scholarships and prizes 3,814 4,410 4,015 4,442 Non-government grants 99,092 96,470 98,358 98,314 Sale of goods 15,301 28,280 7,045 8,981 Sale of services 38,028 32,453 20,145 18,765 Sponsorships 2,620 3,579 2,762 4,197 Insurance proceeds 14, , Other revenue 13,789 10,199 8,892 8,016 Net gain on deconsolidation of controlled entity Fair value gain on financial liability 1,960-1,960 - Total other revenue and income 222, , , ,624 The fair value gain relates to the difference between the fair value of Smart State Loans received during the period (classified as loan from Queensland Government (non-interest bearing) in Note 33) and the fair value of the cash received by the University. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

20 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Employee related expenses Consolidated Parent $'000 $'000 $'000 $'000 Academic Salaries 310, , , ,569 Payroll tax 17,924 16,902 17,924 16,902 Worker's compensation Long service leave expense 13,449 6,331 13,449 6,331 Annual leave 20,893 20,872 20,893 20,872 Other 13,294 7,837 13,321 7,837 Contributions to funded superannuation and pension schemes 49,011 45,499 49,011 45,499 Total academic 424, , , ,136 Non-academic Salaries 294, , , ,030 Payroll tax 17,448 16,357 16,163 15,028 Worker's compensation Long service leave expense 7,470 5,410 7,348 5,453 Annual leave 22,619 22,272 21,935 21,951 Other 6,032 8,791 6,587 8,572 Contributions to funded superannuation and pension schemes 44,568 40,919 41,944 38,319 Total non-academic 392, , , ,399 Total employee related expenses 817, , , , Depreciation and amortisation Consolidated Parent $'000 $'000 $'000 $'000 Depreciation Buildings 48,981 42,433 48,981 42,433 Plant and equipment 32,901 31,015 32,089 30,388 Leasehold improvements Library 7,821 1,066 7,821 1,066 Assets under finance lease 7,274 2,658 7,274 2,658 Infrastructure assets 1,422 1,289 1,422 1,289 Land improvements 4,501 4,345 4,501 4,345 Total depreciation 102,910 82, ,088 82,215 Amortisation Amortisation of intangibles 2,165 1,851 2,024 1,849 Total depreciation and amortisation 105,075 84, ,112 84, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

21 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Repairs and maintenance Consolidated Parent $'000 $'000 $'000 $'000 Repairs and maintenance 65,827 41,168 65,655 40,966 Total repairs and maintenance 65,827 41,168 65,655 40, Finance costs Consolidated Parent $'000 $'000 $'000 $'000 Finance costs 12,736 11,545 12,585 11,523 Total finance costs expensed 12,736 11,545 12,585 11,523 Finance costs in the parent entity include the amortisation of the Smart State Loans for $1,497,911 (2010: $1,421,472). AASB 139 (Financial Instruments: Recognition and Measurement) requires the University to recognise the amortisation of the loans (being the difference each year between fair value at initial recognition and the fair value of the cash received) as finance costs. 13 Impairment of assets Consolidated Parent $'000 $'000 $'000 $'000 Impairment of receivables 1,910 2,917 5,233 4,488 Impairment of available-for-sale financial assets 1,104 7,191 1,200 6,038 Impairment of property, plant & equipment Total impairment of assets 3,393 10,196 6,481 10,614 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

22 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Other expenses Consolidated Parent $'000 $'000 $'000 $'000 Scholarships, grants and prizes 64,314 59,930 64,020 59,784 Non-capitalised equipment 25,367 24,169 25,336 24,060 Advertising, marketing and promotional expenses 11,543 10,342 10,766 9,394 Travel, staff development and entertainment 53,743 53,277 52,011 52,023 Teaching materials and services 26,915 26,028 26,917 26,070 Laboratory supplies and services 31,380 30,227 31,419 30,227 Collaborative projects 57,516 47,113 58,065 47,147 Utilities and insurance 28,448 22,291 26,814 20,128 Net loss on disposal of property, plant & equipment 10,636 12,170 10,516 12,150 Computing supplies and services 16,756 16,354 16,522 16,052 Facilities and campus services 24,196 22,499 21,847 20,547 Office supplies and furniture 9,844 11,367 9,236 10,691 Staffing expenses 2,932 3,426 2,855 3,272 Staff appointment expenses 3,599 3,100 3,348 2,937 Professional & consultancy fees 58,538 42,064 61,062 44,721 Memberships and subscriptions 6,418 5,140 6,231 5,047 Postage & freight 5,020 4,551 4,969 4,507 Telecommunications 9,562 9,906 9,194 9,555 Development fees 7,127 17, Commercialisation supplies and services 25,408 16, Patent costs 3,599 3, Net foreign exchange losses 281 1, ,123 Other 25,526 21,438 21,358 19,901 Inventory sold 510 3, Total other expenses 509, , , , THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

23 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Income tax Consolidated Parent $'000 $'000 $'000 $'000 Income tax expense/(credit) Current tax (1,023) 3, Deferred tax 1,566 (2,291) - - Prior year under provision (1,850) (15) - - Adjustments for current tax of prior periods - (6) - - (1,307) (a) Numerical reconciliation of income tax expense to prima facie tax payable Operating result from continuing operations before income tax expense 191, , Tax at the Australian tax rate of 30% ( %) 57,441 42, Tax effect of amounts which are not deductible / (taxable) in calculating taxable income: Net deficit/(surplus) relating to tax exempt entities (58,127) (40,145) - - Non-deductible expenses & other assessable income 4, Non-assessable income & other deductible expenses (4,507) (497) - - Franking credits - (1,107) - - Deferred tax losses not brought to account Adjustment for current tax of prior periods (1,099) Total income tax expense/(credit) (1,307) Losses and special payments Consolidated Parent $'000 $'000 $'000 $'000 (a) Losses valued at more than $500 were as follows: Property 2, , Bad & doubtful debts 1, Total losses 4, , (b) Special payments valued at more than $5,000 were as follows: Ex-gratia payments Legal settlements Total special payments Total losses and special payments 4,313 1,471 3,267 1,448 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

24 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Remuneration of auditors During the year, the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-related audit firms: Consolidated Parent $'000 $'000 $'000 $'000 Assurance services (a) Audit services Fees paid to the Auditor-General of Queensland for the audit and review of statutory financial reports and special purpose financial reports (b) Non-audit services Fees paid to other audit firms for the audit of special purpose financial reports Cash and cash equivalents Consolidated Parent $'000 $'000 $'000 $'000 Cash at bank and on hand 136,670 86, ,373 69,354 Cash held on behalf of third party 43,351 83,602 43,351 83,602 Term deposits (maturity of less than 90 days) 200,373 68, ,887 63,887 Total cash and cash equivalents 380, , , ,843 (a) Reconciliation to cash at the end of the year The above figures are reconciled to cash at the end of the year as shown in the Statement of Cash Flows as follows: Consolidated Parent $'000 $'000 $'000 $'000 Balances as above 380, , , ,843 Balances per statements of cash flow 380, , , ,843 (b) Cash at bank and on hand Cash at bank and on hand earns interest at floating rates based on daily bank deposit rates. (c) Cash held on behalf of third party These Commonwealth funds are a contribution by the Commonwealth Government for the construction of facilities for the Translation Research Institute (TRI). The monies currently being held on behalf of the Commonwealth cannot be expended by the University. These funds have been quarantined from the University s normal operating funds in separate bank accounts. The University has no entitlement to interest on the funds invested. (d) Term deposits The deposits are bearing floating interest rates between 5.81% and 6.30% (2010: 4.65% and 6.30%). These deposits have an average maturity of 180 days (2010: 45 days). 22 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

25 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Receivables Consolidated Parent $'000 $'000 $'000 $'000 Current Debtors - external 101, ,599 78,132 81,262 Less: Provision for impaired receivables (6,299) (5,424) (6,154) (4,994) 95,249 98,175 71,978 76,268 Sundry loans and advances - external Student loans Total current receivables - external 95,339 98,239 72,068 76,332 Debtors - controlled entities ,906 14,299 Sundry loans and advances - controlled entities - - 2,977 2,977 Less: Provision for impaired receivables - - (1,078) - Total current receivables - controlled entities ,805 17,276 Accrued revenue 14,371 2,976 11,225 2,671 Dividend receivable Other debtors - TRI Total current receivables 109, , ,274 96,289 Non-current Debtors - external Less: Provision for impaired receivables (7) (12) - - Total non-current receivables - external Debtors - controlled entities - - 8,694 5,574 Sundry loans and advances - controlled entities - - 8,903 3,047 Less: Provision for impaired receivables - - (4,081) (1,950) Total non-current receivables - controlled entities ,516 6,671 Total non-current receivables ,516 6,671 Total receivables 110, , , ,960 (a) Impaired receivables As at 31 December 2011 receivables of the group with a nominal value of $6.306 million (2010: $5.436 million) were impaired and has been fully provided for as provision for impaired receivables. Trade and research receivables have been assessed as being impaired on an individual basis, while tuition fee debtors has been assessed as being impaired by using the percentage of recovery method. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

26 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Receivables (continued) The ageing analysis of these receivables is as follows: Consolidated Parent $'000 $'000 $'000 $'000 3 to 6 months Over 6 months 6,304 5,290 11,275 6,798 6,306 5,436 11,313 6,944 As at 31 December 2011, the group's trade receivables of $ million (2010 $ million) were past due but not impaired. The ageing analysis of these receivables is as follows: 3 to 6 months 12,523 7,050 11,680 5,979 Over 6 months 13,189 27,170 12,633 16,629 25,712 34,220 24,313 22,608 Movements in the provision for impaired receivables are as follows: At 1 January (5,436) (3,834) (6,943) (2,535) Provision for impairment recognised during the year (2,780) (1,704) (5,234) (4,488) Receivables written off during the year as uncollectible 1, At 31 December (6,306) (5,436) (11,313) (6,944) The creation and release of the provision for impaired receivables has been included in "Impairment of assets" in the Income Statement. s charged to the provision account are generally written off when there is no expectation of recovery. The other amounts within receivables do not contain impaired assets. It is expected that these amounts will be received in full. 20 Inventories Consolidated Parent $'000 $'000 $'000 $'000 Current Stores 1,804 1,751 1,515 1,440 Livestock 1,382 1,239 1,382 1,239 Work in progress & raw materials Press stock 1,502 1,496 1,502 1,496 Total current inventories 5,236 4,718 4,399 4, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

27 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Held-to-maturity investments Consolidated Parent $'000 $'000 $'000 $'000 Current Term deposits (maturity of greater than 90 days) 11,500 93,400 10,000 80,000 Total Held-to-maturity investments 11,500 93,400 10,000 80, Other non-financial assets Consolidated Parent $'000 $'000 $'000 $'000 Current Prepayments 8,014 4,418 7,558 4,094 Total current other non-financial assets 8,014 4,418 7,558 4, Available-for-sale financial assets Consolidated Parent $'000 $'000 $'000 $'000 Non-current Shares - unlisted entities 17,597 16,791 15,890 15,082 Shares - subsidiaries ,940 19,940 Assets - held for sale Provision for impairment (10,038) (10,038) (10,238) (9,038) Total available-for-sale financial assets 7,590 6,753 25,592 25, Other financial assets at fair value through profit or loss Consolidated Parent $'000 $'000 $'000 $'000 Non-current Shares - listed entities 8,343 8, Shares - unlisted start-up entities 12,904 12, Shares - jointly controlled entities ,460 25,582 Managed investment portfolio 73,686 79,889 73,686 79,889 Convertible notes 8, Total other financial assets at fair value through profit or loss 102, , , ,471 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

28 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Investments accounted for using the equity method Consolidated Parent $'000 $'000 $'000 $'000 Investments in associates 62,460 25, Investments in jointly controlled entities 1,990 2, Total investments accounted for using the equity method 64,450 27, Consolidated Parent $'000 $'000 $'000 $'000 Reconciliation Balance at 1 January 27,704 5, Share of profit for the year 37,236 22, Dividends and distributions (490) (340) - - Balance at 31 December 64,450 27, Ownership interest Name of entity 2011 % 2010 % Associates Translational Research Institute Jointly controlled entities ALS Mineralogy Pty Ltd Summarised financial information in respect of associates and jointly controlled entities is set out below. Consolidated Parent $'000 $'000 $'000 $'000 Financial Position Current assets 95,025 69, Non-current assets 179,617 52, Total assets 274, , Current liabilities (1,369) Non-current liabilities 12,565 5, Total liabilities 11,196 5, Net assets 263, , Share of jointly controlled entities' net assets 69,127 32, Financial Performance Revenue 152,309 93, Expenditure (4,065) (3,438) - - Income tax expense - (207) - - Profit/(loss) 148,244 89, Share of jointly controlled entities' profit/(loss) 37,236 22, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

29 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Property, plant and equipment Consolidated Capital works under construction Land and improvements Buildings Plant and equipment Leasehold improvements Infrastructure assets Museums Library collections Assets under finance lease Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2010 Cost 157, ,394 2,008 4, , ,595 Valuation - 379,786 2,311, ,440 31,805 93,654-2,875,940 Accumulated depreciation - (75,804) (733,015) (151,932) (1,915) (28,491) - (32,494) - (1,023,651) Net book amount 157, ,032 1,578, , ,688 31,805 61, ,317 2,440,884 Year ended 31 December 2010 Opening net book amount 157, ,032 1,578, , ,688 31,805 61, ,317 2,440,884 Revaluation surplus - 3,661 92, ,538 5, ,767 Additions 107,874 2,455 1,826 45,864-3,595 2,241 2,549 16, ,455 Disposals - - (4,826) (5,248) (2,814) - (12,888) Impairment loss (88) (88) Transfers (229,244) , ,942 - Depreciation charge - (4,345) (42,433) (31,015) (46) (1,289) - (1,066) (2,658) (82,852) Closing net book amount 35, ,387 1,845, , ,532 39,887 60, ,712 2,631,278 At 31 December 2010 Cost 35, ,513 2,008 8, , ,668 Valuation - 389,110 2,651, ,280 39,887 91, ,265 3,348,511 Accumulated depreciation - (82,773) (805,384) (157,538) (1,961) (31,083) - (31,564) (2,598) (1,112,901) Net book amount 35, ,387 1,845, , ,532 39,887 60, ,712 2,631,278 Consolidated Capital Works under Construction Land and improvements Buildings Plant and equipment Leasehold improvements Infrastructure assets Museums Library collections Assets under finance lease Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Year ended 31 December 2011 Opening net book amount 35, ,387 1,845, , ,532 39,887 60, ,712 2,631,278 Revaluation surplus - 75,006 (249,503) - - 1,806 7, (4,501) (169,171) Additions 126, ,279-4, , ,126 Disposals - - (3,680) (4,083) - - (144) (3,290) - (11,197) Transfers (49,524) 1,670 47,281 (348) (348) Depreciation charge - (4,501) (48,981) (32,901) (10) (1,422) - (7,821) (7,274) (102,910) Impairment loss (377) (377) Closing net book amount 112, ,587 1,591, , ,701 47,791 51, ,510 2,534,401 At 31 December 2011 Cost 112, ,141 2, , ,602 Valuation - 420,888 2,344, ,112 47,791 89, ,300 3,070,781 Accumulated depreciation - (42,301) (753,541) (177,596) (1,971) (17,411) - (37,329) (5,835) (1,035,984) Net book amount 112, ,587 1,591, , ,701 47,791 51, ,510 2,534,399 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

30 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Property, plant and equipment (continued) Parent Capital works under construction Land and improvements Buildings Plant and equipment Leasehold improvements Infrastructure assets Museums Library collections Assets under finance lease Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2010 Cost 157, ,844 1,877 4, , ,904 Valuation - 379,786 2,311, ,440 31,805 93,654-2,875,940 Accumulated depreciation - (75,804) (733,015) (147,201) (1,841) (28,491) - (32,494) - (1,018,846) Net book amount 157, ,032 1,578, , ,688 31,805 61, ,317 2,437,998 Year ended 31 December 2010 Opening net book amount 157, ,032 1,578, , ,688 31,805 61, ,317 2,437,998 Revaluation surplus - 3,661 92, ,538 5, ,767 Additions 107,874 2,455 1,826 43,852-3,595 2,241 2,549 16, ,443 Disposals - - (4,826) (5,222) (2,814) - (12,862) Impairment loss (88) (88) Transfers (229,244) , ,942 - Depreciation charge - (4,345) (42,433) (30,388) (36) (1,289) - (1,066) (2,658) (82,215) Closing net book amount 35, ,387 1,845, ,797-39,532 39,887 60, ,712 2,627,043 At 31 December 2010 Cost 35, ,102 1,877 8, , ,116 Valuation - 389,110 2,651, ,280 39,887 91, ,265 3,348,511 Accumulated depreciation - (82,773) (805,384) (153,305) (1,877) (31,083) - (31,564) (2,598) (1,108,584) Net book amount 35, ,387 1,845, ,797-39,532 39,887 60, ,712 2,627,043 Parent Capital Works under Construction Land and improvements Buildings Plant and equipment Leasehold improvements Infrastructure assets Museums Library collections Assets under finance lease Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Year ended 31 December 2011 Opening net book amount 35, ,387 1,845, ,797-39,532 39,887 60, ,712 2,627,043 Revaluation surplus - 75,006 (249,503) - - 1,806 7, (4,501) (169,171) Additions 126, ,918-4, , ,739 Disposals - - (3,679) (3,781) - - (144) (3,290) - (10,894) Transfers (49,524) 1,670 47, Depreciation charge - (4,501) (48,981) (32,089) - (1,422) - (7,821) (7,274) (102,088) Impairment loss (49) (49) Closing net book amount 112, ,587 1,591, ,796-44,701 47,791 51, ,510 2,530,580 At 31 December 2011 Cost 112, ,428 1, , ,722 Valuation - 420,888 2,344, ,112 47,791 89, ,300 3,070,781 Accumulated depreciation - (42,301) (753,538) (172,632) (1,877) (17,411) - (37,329) (5,835) (1,030,923) Net book amount 112, ,587 1,591, ,796-44,701 47,791 51, ,510 2,530, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

31 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Intangible assets Consolidated Patents, trademarks and other rights Systems Development Intellectual Property Total $'000 $'000 $'000 $'000 At 1 January 2010 Cost - 24,303-24,303 Valuation - - 1,168 1,168 Accumulated amortisation - (12,118) (331) (12,449) Net book amount - 12, ,022 Year ended 31 December 2010 Opening net book amount - 12, ,022 Additions Amortisation charge (2) (1,832) (15) (1,849) Closing net book amount , ,366 At 31 December 2010 Cost ,303-24,447 Valuation - - 1,219 1,219 Accumulated amortisation (2) (13,950) (348) (14,300) Net book amount , ,366 Year ended 31 December 2011 Opening net book amount , ,366 Additions ,009 Transfers Amortisation charge (92) (1,943) (131) (2,166) Closing net book amount 112 9, ,526 At 31 December 2011 Cost ,526-25,733 Valuation - - 1,259 1,259 Accumulated amortisation (95) (15,893) (478) (16,466) Net book amount 112 9, ,526 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

32 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Intangible assets (continued) Parent Patents, trademarks and other rights Systems Development Intellectual Property Total $'000 $'000 $'000 $'000 At 1 January 2010 Cost - 24,303-24,303 Valuation - - 1,168 1,168 Accumulated amortisation - (12,118) (331) (12,449) Net book amount - 12, ,022 Year ended 31 December 2010 Opening net book amount - 12, ,022 Additions - Internal development Impairment losses Amortisation charge - (1,832) (17) (1,849) Cost - 10, ,224 At 31 December 2010 Cost - 24,303-24,303 Valuation - - 1,219 1,219 Accumulated amortisation - (13,950) (348) (14,298) Net book amount - 10, ,224 Year ended 31 December 2011 Opening net book amount - 10, ,224 Additions Amortisation charge - (1,894) (131) (2,025) Cost - 9, ,901 At 31 December 2011 Cost - 24,964-24,964 Valuation - - 1,259 1,259 Accumulated amortisation - (15,844) (478) (16,322) Net book amount - 9, ,901 The University has intangible assets with a gross carrying amount of $9.649 million and a written down value of nil that are still in the asset register. 30 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

33 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Deferred tax assets and liabilities Consolidated Parent $'000 $'000 $'000 $'000 Deferred tax asset 5,228 4, Total deferred tax assets 5,228 4, The balance comprises temporary differences attributable to: s recognised operating result Employee benefits Provision account movements Prepayments Non-deductible accruals 1, Carried forward tax losses 2,838 2, Other Net deferred tax assets 5,228 4, Movements - Consolidated At 1 January ,142 Charged/(credited) to the Income Statement 2,309 At 31 December ,451 Movements: At 1 January ,451 Charged/(credited) to the Income Statement 777 At 31 December ,228 $'000 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

34 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Deferred tax assets and liabilities (continued) Consolidated Parent $'000 $'000 $'000 $'000 Deferred tax liability Total deferred tax liabilities The balance comprises temporary differences attributable to: s recognised in operating result Dividend income derived but not received Accrued income Other Movements - Consolidated $'000 At 1 January Charged/(credited) to the Income Statement (215) At 31 December At 1 January Charged/(credited) to the Income Statement (362) At 31 December THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

35 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Trade and other payables Consolidated Parent $'000 $'000 $'000 $'000 Current Trade payables - external 31,411 24,331 30,331 21,253 Trade and other payables - controlled entities - - 1,092 1,388 Other creditors 15,669 17,194 4,669 4,515 Accrued expenses 51,292 44,041 35,904 35,153 Total current trade and other payables 98,372 85,566 71,996 62,309 Total trade and other payables 98,372 85,566 71,996 62, Borrowings Consolidated Parent Notes $'000 $'000 $'000 $'000 Current Unsecured Finance lease liability 38(i) 6,167 5,158 5,987 5,054 Total current unsecured borrowings 6,167 5,158 5,987 5,054 Non-current Unsecured Other interest bearing liability Finance lease liability 38(i) 114, , , ,408 Total non-current unsecured borrowings 114, , , ,408 Total non-current borrowings 114, , , ,408 Total borrowings 120, , , ,462 The University has the following loan facilities through the Queensland Treasury Corporation: 1. A long term debt facility of $150 million over a 30 year period to partly fund strategically important capital projects; and 2. A standby operating cash flow loan facility of $60 million valid to August Both of these facilities remain unused at reporting date. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

36 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Provisions Consolidated Parent $'000 $'000 $'000 $'000 Current provisions expected to be settled within 12 months Workers compensation Long service leave 18,592 15,910 17,729 15,402 Annual leave 41,393 41,205 40,852 40,769 Other provisions Subtotal 60,746 57,615 59,072 56,630 Current provisions expected to be settled after more than 12 months Long service leave 49,504 43,134 49,504 43,134 Annual leave 24,555 19,053 23,150 17,772 Subtotal 74,059 62,187 72,654 60,906 Total current provisions 134, , , ,536 Non-current provisions Long service leave 23,206 18,168 22,402 17,171 Workers compensation Total non-current provisions 23,652 18,544 22,848 17,547 Total provisions 158, , , ,083 (a) Movements in provisions Movements in each class of provision during the financial year, are set out below: Consolidated Workers compensation provision Long service leave provision Annual leave Other provision provisions Total $'000 $'000 $'000 $'000 $'000 Current Carrying amount at start of year ,044 60, ,802 Additional provisions recognised ,829 43, ,177 s used (570) (6,851) (37,822) (5) (45,248) Transfer (to) / from non-current and other measurement adjustment Carrying amount at end of year ,096 65, ,805 Consolidated Workers Compensation provision Long service leave provision Total $'000 $'000 $'000 Non-current Carrying amount at start of year ,168 18,544 Additional provisions recognised 70 5,488 5,558 s used - (397) (397) Transfer (to) / from current and other measurement adjustment - (53) (53) Carrying amount at end of year ,206 23, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

37 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Provisions (continued) Consolidated Workers compensation provision Long service leave provision Annual leave Other provision provisions Total $'000 $'000 $'000 $'000 $'000 Current Carrying amount at start of year ,979 53, ,653 Additional provisions recognised ,428 43, ,980 s used - (6,363) (36,468) - (42,831) Carrying amount at end of year ,044 60, ,802 Consolidated Workers Compensation provision Long service leave provision Other provisions Total $'000 $'000 $'000 $'000 Non-current Carrying amount at start of year , ,193 Additional provisions recognised 71 1,761-1,832 Payments/other sacrifices of economic benefits - (424) (57) (481) Carrying amount at end of year ,168-18,544 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

38 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Provisions (continued) Parent Workers compensation provision Long service leave provision Annual leave provision Total $'000 $'000 $'000 $'000 Current Carrying amount at start of year ,536 58, ,536 Additional provisions recognised ,462 42,827 58,891 s used (570) (6,765) (37,366) (44,701) Carrying amount at end of year ,233 64, ,726 Parent Workers Compensation provision Long service leave provision Total $'000 $'000 $'000 Non-current Carrying amount at start of year ,171 17,547 Additional provisions recognised 70 5,231 5,301 Carrying amount at end of year ,402 22,848 Parent Workers compensation provision Long service leave provision Annual leave Other provision provisions Total $'000 $'000 $'000 $'000 $'000 Current Carrying amount at start of year ,632 51, ,663 Additional provisions recognised ,380 42,840-53,717 s used (349) (6,476) (36,019) - (42,844) Carrying amount at end of year ,536 58, ,536 Parent Workers Compensation provision Long service leave provision Other provisions Total $'000 $'000 $'000 $'000 Non-current Carrying amount at start of year , ,041 Additional provisions recognised 71 1,492 (57) 1,506 Carrying amount at end of year ,171-17, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

39 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Current tax liabilities Consolidated Parent $'000 $'000 $'000 $'000 Income tax (198) 3, Total current tax liabilities (198) 3, Other liabilities Consolidated Parent $'000 $'000 $'000 $'000 Current Loan from controlled entity - - 1,717 1,918 Revenue received in advance 36,145 37,609 34,887 36,765 Cash held on behalf of third parties 43,351 83,602 43,351 83,602 Other 3,135 3,789 3,134 3,447 Total current other liabilities 82, ,000 83, ,732 Non-current Loan from Queensland Government 30,949 28,689 30,949 28,689 Investments held on behalf of third parties 8,743 6, Other Total non-current other liabilities 40,147 35,661 30,949 28,689 Total other liabilities 122, , , ,421 Smart State Loans In 2001 the Queensland Government announced the establishment of the Smart State Research Facilities Fund (SSRFF) to promote the development of research and infrastructure for science and technology in Queensland. To date a total of $101,954,772 has been received from the SSRFF for 13 projects, in the form of interest free loans repayable over periods that vary between 30 and 35 years. Repayments on these loans do not commence until Provided the University meets all of its obligations under the various loan agreements, one third of each loan will be forgiven. The University has a potential financial liability to repay the full amount of the loans which will only result if certain conditions under the various loan agreements are not met. Management does not expect these potential financial liabilities to crystallise into obligations and therefore financial liabilities disclosed in the above table are management s estimate of amounts that will be payable by the Group. No material losses are expected and as such, the fair values disclosed are management s estimate of amounts that will be payable by the Group. In accordance with AASB 139 Financial Instruments: Recognition and Measurement, the loans have initially been recognised at their fair value. Fair value has been estimated as the net present value of the expected future cash payments to be made, discounted by using the yield on a long-term Treasury Fixed Coupon Bond. In determining the future cash payments, the assumption has been made that all obligations under the loan agreements will be met. Subsequent to initial recognition, the loans are measured at amortised cost using the effective interest method. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

40 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Reserves and retained earnings Consolidated Parent $'000 $'000 $'000 $'000 (a) Reserves Property, plant and equipment revaluation surplus 1,639,150 1,808,321 1,639,151 1,808,321 Business combination reserve Total reserves 1,639,350 1,808,321 1,639,151 1,808,321 Movements: Property, plant and equipment revaluation surplus Balance 1 January 1,808,321 1,704,553 1,808,321 1,704,553 Revaluation - gross (169,171) 103,768 (169,170) 103,768 Balance 31 December 1,639,150 1,808,321 1,639,151 1,808,321 Available for sale investment revaluation reserve Balance 1 January - (1) - (1) Revaluation increment on available for sale financial assets Balance 31 December Foreign currency translation surplus Balance 1 January Currency translation differences arising during the year - (132) - - Balance 31 December Business combination reserve Balance 1 January Reserve arising during the year Balance 31 December (b) Retained earnings Retained earnings at 1 January 902, , , ,305 Surplus for the year 193, , , ,893 Retained earnings at 31 December 1,096, ,736 1,098, ,198 Total retained earnings 1,096, ,736 1,098, ,198 (c) Nature and purpose of reserves (i) Property, plant and equipment revaluation surplus This reserve records movements in the fair value of land, buildings, rare library materials and manuscripts, museum collections, infrastructure and land improvements. (ii) Available for sale investment revaluation surplus This reserve is used to record fair value adjustments relating to the business combination. (iii) Business combination reserve The business combination reserve is used to record fair value adjustments relating to the business combination. 38 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

41 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Non-controlling interest Consolidated Parent $'000 $'000 $'000 $'000 Interest in: Share capital 10,702 8, Retained surplus Opening balance (4,702) (3,801) - - Operating result (1,164) (901) - - Closing balance (5,866) (4,702) - - Total non-controlling interest 4,836 3, Reconciliation of operating result after income tax to net cash flows from operating activities Consolidated Parent $'000 $'000 $'000 $'000 Operating result for the period 192, , , ,893 Depreciation 105,075 84, ,111 84,063 Impairment losses - - 1,248 6,126 Donations of property, plant and equipment (735) (2,364) (735) (2,364) Non-cash licence fees (8,400) Dividends from jointly controlled entities Net (gain)/loss on sale of non-current assets 10,635 12,172 10,516 12,150 Net (gain)/loss on disposal of other financial assets (539) (12,083) - (158) Interest expense on Smart State Loan liability & finance leases 12,624 11,546 12,585 11,523 Unrealised FX loss/(gain) 299 1, ,018 Interest revenue on related entity loans - - (212) - Change in FV of other financial assets 6,088 (2,644) (30,560) (24,411) Change in FV of Smart State loan liabilities (1,960) - (1,960) - Loss/(gain) on deconsolidation - (121) - - Equity accounted investment (37,236) (22,586) - - Impairment of assets 1,482 7, Change in operating assets and liabilities: (Increase)/decrease in receivables (8,065) (10,594) (4,582) (28,656) (Increase)/decrease in inventories (518) 3,416 (224) 196 (Increase)/decrease in deferred tax asset (778) (2,308) - - (Increase)/decrease in other assets (3,596) 4,365 (3,464) 4,390 Increase/(decrease) in payables 12,799 2,664 9,681 14,636 Increase/(decrease) in other liabilities 108 6,412 (2,607) 5,803 Increase/(decrease) in tax liabilities (3,958) 3, Increase/(decrease) in provisions 20,113 12,470 19,491 12,379 Net cash provided by / (used in) operating activities 296, , , ,588 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Non-cash investing and financing activities Consolidated Parent $'000 $'000 $'000 $'000 Acquisition of plant and equipment and buildings by means of finance leases - 16,045-16,045 Total non-cash investing and financing activities - 16,045-16, Commitments (a) Capital commitments Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Consolidated Parent $'000 $'000 $'000 $'000 Property, plant and equipment Payable: Within one year 232,816 35, ,816 35,743 Later than one year but not later than five years 41,125-41, ,941 35, ,941 35,743 (b) Lease commitments (i) Operating leases The University leases various types of equipment, predominately IT related equipment, and premises under non-cancellable operating leases generally over a three year period. Consolidated Parent $'000 $'000 $'000 $'000 Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 2,511 4,880 1,899 4,294 Later than one year but not later than five years 5,244 6,725 3,997 4,892 Later than five years 973 1, ,911 8,728 13,516 6,869 11, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

43 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Commitments (continued) (ii) Finance leases In November 2009, the University has entered into a lease for the construction of the Pharmacy Australia Centre of Excellence (PACE) building expiring in November As at December 2009 the carrying amount of the building was $ million. Under the terms of the lease, the building transfers to the University on termination of the lease. In December 2010, the University entered into a lease for IT network equipment. The lease expires in September The current carrying value of the equipment at December 2010 was $ million. Under the terms of the lease, the equipment transfers to the University on termination of the lease. Consolidated Parent $'000 $'000 $'000 $'000 Commitments in relation to finance leases are payable as follows: Within one year 14,595 13,745 14,384 13,615 Later than one year but not later than five years 38,277 43,513 37,916 43,337 Later than five years 502, , , ,326 Minimum lease payments 555, , , ,278 Future finance charges (434,890) (445,858) (434,729) (445,816) Recognised as a liability 120, , , ,462 Total lease liabilities 120, , , ,462 The PACE lease is structured so that for the first 22 years interest expense exceeds payments made. For this reason, the lease liability will continue to grow until 2032 and no portion of the liability is disclosed as current. The weighted average interest rate implicit in the finance leases is 2011: 9.19% (2010: 9.19%) (c) Other commitments Investment property Payable: Within one year 1,615 1,600 1,615 1,600 Later than one year but not later than five years 3,323 4,150 3,323 4,150 4,938 5,750 4,938 5,750 Other Payable: Within one year 60,562 49,098 60,562 49,098 60,562 49,098 60,562 49,098 University Innovation & Investment Trust No.1 (UIIT) The University has entered into a funding deed with the University Innovation and Investment Trust No.1 (UIIT). Under the deed the University may be required to meet calls on partly paid units held in the UIIT. The UIIT is a venture fund founded by The University of Queensland, The University of Melbourne and the University of New South Wales for the purpose of providing seed funding to further develop promising research outcomes and to assist with the commercialisation of such research outcomes. As at 31 December 2011, the University held 18,000,001 Partly Paid $1 Units paid up to $13,057,541, and may be required to meet calls totalling $4,938,000. The rate of drawdowns depends on: 1. Rate of investment in new ventures; 2. Rate of liquidation of investments; and 3. If unit holders request that the funds from any liquidated investments be retained in the trust to be offset against future calls, or paid out to them immediately. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

44 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Related parties (a) Parent entities The ultimate parent entity within the Group is The University of Queensland. (b) Subsidiaries Interests in subsidiaries are set out in note 41. (c) Key management personnel compensation Key management personnel compensation for the year ended 31 December 2011 and the year ended 31 December 2010 is disclosed in Note 42. (d) Transactions with related parties The following transactions occurred with related parties: Consolidated Parent $ 000 $ 000 $ 000 $ 000 Revenue Sale of goods and services to subsidiaries ,728 16,867 Royalty revenue from subsidiaries - - 6,348 6,495 Share of commercialisation returns from subsidiaries - - 3,120 1,463 Dividend revenue from subsidiaries ,168 2,135 Interest revenue from subsidiaries Total ,576 26,980 Expenditure Purchase of goods and services from subsidiaries - - 5,560 5,277 Grants and funding provided to subsidiaries - - 4,327 1,971 Total - - 9,887 7,248 Consolidated Parent $'000 $'000 $'000 $'000 Current receivables Subsidiaries - sales of goods and services ,906 14,299 Subsidiaries - loans and advances - - 2,977 2,977 Total ,883 17,276 Non-current receivables Subsidiaries - share of commercialisation returns - - 8,694 5,574 Subsidiaries - loans - - 8,903 3,047 Total ,597 8,621 Current payables Subsidiaries - purchase of goods and services - - 1,092 1,388 Subsidiaries - loans and advances - - 1,717 1,918 Total - - 2,809 3,306 A provision for impaired debts has been raised in respect of receivables outstanding from a subsidiary, PrimEd Pty Ltd, of $5,159,059 (2010: 1,950,000). No provision has been raised in relation to any other outstanding debts from related parties. 42 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

45 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Contingencies Contingent liabilities Parent Entity The University has a number of ongoing minor legal cases awaiting outcome. Estimates cannot be reliably measured for a number of these cases, but the University believes that the final amounts payable would be unlikely to exceed $400,000 in aggregate. Supplementary Benefit Payments The University has a contingent liability which may arise in respect of supplementary pension payments to be made to some retired staff members or their dependants. These retired staff were members of a Staff Superannuation Scheme which was terminated in June Former members who had been granted supplementary benefits at this date continue to receive these benefits. Unimutual For the period 1 January 1990 to date, The University of Queensland has been a member of Unimutual, a mutual organisation that provides discretionary risk protection to universities and other educational & research institutions. Under its rules, Unimutual may make a call for a supplementary contribution from members in the event of there being a deficit in any year. A supplementary contribution would only be levied after the application of reinsurance recoveries and investment income for the appropriate year. Supplementary contributions may be levied pro rata according to the original contribution paid No other contingencies of a significant nature exist or are recognised in the accounts. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

46 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1(b): Name of entity Country of incorporation Class of shares 2011 % Equity holding 2010 % PrimEd Group - - PrimEd Pty Ltd Australia Ordinary Health Insitu Pty Ltd Australia Ordinary IMBcom Group - - IMBcom Pty Ltd Australia Ordinary Cyclagen Pty Ltd Australia Ordinary Kalthera Pty Ltd Australia Ordinary IMBcom Asset Management Pty Ltd Australia Ordinary UQ Holdings Group - - UQ Holdings Pty Ltd Australia Ordinary CiTR Group - - CiTR Pty Ltd (deregistered on 7 March 2011) Australia Ordinary JK Tech Group - - JK Tech Pty Ltd Australia Ordinary Applied Resource Economics Pty Ltd Australia Ordinary SUSOP Pty Ltd (from March 2011) Australia Ordinary i-lab Incubator Pty Ltd Australia Ordinary SARV Pty Ltd Australia Ordinary Limited by UQ Health Care Ltd** Australia guarantee - - UniQuest Group - - UniQuest Pty Ltd Australia Ordinary Activetorque Pty Ltd Australia Ordinary Ausonex Pty Ltd Australia Ordinary Bireme Pty Ltd Australia Ordinary CILR Pty Ltd Australia Ordinary Coridon Pty Ltd Australia Ordinary Dendright Pty Ltd Australia Ordinary Diabax Pty Ltd Australia Ordinary First Investor Pty Ltd Australia Ordinary Herdvac Pty Ltd Australia Ordinary Leximancer Pty Ltd Australia Ordinary Lucia Publishing Systems Pty Ltd Australia Ordinary Neurotide Pty Ltd Australia Ordinary Pepfactants Pty Ltd Australia Ordinary Rapisure Pty Ltd Australia Ordinary Symbiosis Pty Ltd Australia Ordinary UATC Pty Ltd Australia Ordinary UTSAT Pty Ltd Australia Ordinary UWAT Pty Ltd Australia Ordinary UTASAT Pty Ltd Australia Ordinary Vacquel Pty Ltd Australia Ordinary UQ Foundation Trust Australia UQ Investment Trust Australia JKTech Pty Ltd * Australia Ordinary 6 6 UniQuest Asset Trust Australia Aussie Colours Pty Ltd Australia Ordinary Bilexys Pty Ltd Australia Ordinary Bioherbicides Australia Pty Ltd Australia Ordinary Ceramipore Pty Ltd Australia Ordinary Cloevis Pty Ltd Australia Ordinary Corpison Pty Ltd Australia Ordinary Dendrimed Pty Ltd Australia Ordinary DuraCyc Power Pty Ltd Australia Ordinary THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

47 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Subsidiaries (continued) Name of entity Country of incorporation Class of shares 2011 % Equity holding 2010 % LanguageMap Pty Ltd Australia Ordinary Lightanate Pty Ltd Australia Ordinary Metallotek Pty Ltd Australia Ordinary ACN (formerly Millipede Forming Pty Ltd) Australia Ordinary Neo Rehab Pty Ltd Australia Ordinary NuNerve Pty Ltd (lost control 24/2/2010) Australia Ordinary Progel Pty Ltd Australia Ordinary Tenasitech Pty Ltd Australia Ordinary Snoresound Pty Ltd Australia Ordinary IMBcom Asset Trust Australia CCA Therapeutics Pty Ltd Australia Ordinary Limited by UQ Health Care Ltd** Australia guarantee - - UQ College Ltd Australia Limited by guarantee - - UQ Sport Ltd Australia Limited by guarantee - - Global Change Institute Pty Ltd Australia Ordinary * JKTech Pty Ltd is controlled by UQ Holdings Pty Ltd, not the UQ Investment Trust. The UQ Investment Trust was settled on 21 August 2007 and holds a minority interest in JKTech Pty Ltd. ** UQ Health Care Ltd was transferred to be part of UQ Holdings Pty Ltd Group in December THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

48 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Key executive management personnel and remuneration (a) Key executive management personnel The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the agency during Further information on these positions can be found in the body of the Annual Report under the section relating to corporate governance. Current Incumbents Position Responsibilities Contract Classification and appointment authority Date appointed to position Vice-Chancellor Chief Executive Officer Executive - Senate Senior Deputy Vice-Chancellor Deputy Vice-Chancellor (Academic) Deputy Vice-Chancellor ( Relations) Deputy Vice-Chancellor (International) Deputy Vice-Chancellor (Research) Pro-Vice-Chancellor (Indigenous Education) Pro-Vice-Chancellor Pro-Vice-Chancellor (Advancement) Pro-Vice-Chancellor (Research and International) Executive Director (Operations) and University Secretary President Academic Board Deputy Chief Executive Officer Academic Policy and related matters Community Relations; Fund Raising and related matters International Student matters Research Policy and related matters Policy promoting Indigenous Education and related matters Gatton and Ipswich campuses; Industrial matters (academic) Alumni relationships and Philanthropic Donations Assist the DVC (Research) in Research Policy and related matters Executive Director Operational Matters and Infrastructure Chair of Academic Board and Management of Board matters Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Executive - Vice-Chancellor Previous appointee to 16/12/2011. Current incumbent from 17/12/2011. Previous appointee to 16/12/2011. Current incumbent from 17/12/2011. Previous appointee to 16/12/2011. Current incumbent from 17/12/ /04/ /04/2010 Previous appointee to 16/12/2011. Current incumbent from 17/12/ /05/ /01/ /09/ /05/ /03/2009 A1E01 - Academic Election 01/01/ THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

49 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Key executive management personnel and remuneration (continued) (b) Remuneration of key executive management personnel The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. The contracts provide for the provision of performance-related cash bonuses and other benefits including motor vehicles. For the 2011 year, remuneration of key executive management personnel increased by 4%. Remuneration packages for key executive management personnel comprise the following components:- Short term employee benefits which include: o Base - consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part of the year during which the employee occupied the specified position. s disclosed equal the amount expensed in the Statement of Comprehensive Income. o Non-monetary benefits consisting of provision of vehicle together with fringe benefits tax applicable to the benefit. Long term employee benefits include long service leave accrued. Post-employment benefits include superannuation contributions. Redundancy payments are not applicable to senior staff however termination payments may be applicable in particular circumstances. Performance bonuses may be paid or payable annually depending upon the achievement of pre-determined individual performance targets as agreed by the supervisor and approved by the relevant approving authority. Total fixed remuneration is calculated on a total cost basis and includes the base and non-monetary benefits, long term employee benefits and post-employment benefits For more comprehensive description of responsibilities for Key Executive Personnel, please refer to the University s web site or annual yearbook. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

50 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Key executive management personnel and remuneration (continued) (b) Remuneration of key executive management personnel (continued) 1 January December 2011 Position Base Short Term Employee Benefits Long Term Employee Non-Monetary Benefits Performance Payments Benefits Post Employment Benefits Termination Benefits Total Remuneration $'000 $'000 $'000 $'000 $'000 $'000 $'000 Vice-Chancellor (resigned from position 16/12/2011) Acting Vice-Chancellor (appointed 17/12/2011) Senior Deputy Vice-Chancellor (resigned from position 16/12/2011) Acting Senior Deputy Vice-Chancellor (appointed 17/12/2011) Deputy Vice-Chancellor (Academic) (until 16/12/2011) Acting Deputy Vice-Chancellor (Academic) (appointed 17/12/2011) Deputy Vice-Chancellor ( Relations) Deputy Vice-Chancellor (International) Deputy Vice-Chancellor (Research)( until 16/12/2011) Acting Deputy Vice-Chancellor (Research) (appointed 17/12/2011) Pro-Vice-Chancellor (Indigenous Education) (appointed 9/5/2011) Pro-Vice-Chancellor Pro-Vice-Chancellor (Advancement) Pro-Vice-Chancellor (Research and International) (until 16/12/2011) Executive Director (Operations) and University Secretary President Academic Board Total Remuneration 4, , THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

51 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Key executive management personnel and remuneration (continued) (b) Remuneration of key executive management personnel (continued) 1 January December 2010 Position Base Short Term Employee Benefits Long Term Employee Non-Monetary Benefits Performance Payments Benefits Post Employment Benefits Termination Benefits Total Remuneration $'000 $'000 $'000 $'000 $'000 $'000 $'000 Vice-Chancellor Senior Deputy Vice-Chancellor Deputy Vice-Chancellor (Academic) Deputy Vice-Chancellor ( Relations) Deputy Vice-Chancellor (International) Acting Deputy Vice-Chancellor (International) (till 5/4/2010) Deputy Vice-Chancellor (Research) Pro-Vice-Chancellor Pro-Vice-Chancellor (Advancement) Pro-Vice-Chancellor (Research and International) Executive Director (Operations) and University Secretary President Academic Board Total Remuneration 4, ,101 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

52 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Key executive management personnel and remuneration (continued) (c) Performance Payments The basis for performance bonuses paid or payable in the 2011 financial year is set out below: Position Date Paid Basis for payment Deputy Vice-Chancellor (Academic) 28/12/2011 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor ( Relations) 28/12/2011 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor (International) 28/12/2011 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor (Research) 28/12/2011 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor (Indigenous Education) 28/12/2011 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor 28/12/2011 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor (Advancement) 28/12/2011 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor (Research and International) 28/12/2011 Performance Appraisal - achievement of KRA's Executive Director (Operations) and University Secretary 28/12/2011 Performance Appraisal - achievement of KRA's The basis for performance bonuses paid or payable in the 2010 financial year is set out below: Position Date Paid Basis for payment Vice- Chancellor 29/12/2010 Performance Appraisal - achievement of KRA's Senior Deputy Vice-Chancellor 29/12/2010 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor (Academic) 29/12/2010 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor ( Relations) 29/12/2010 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor (International) (1/1/2010-5/4/10) 29/12/2010 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor (International) (6/4/ /12/10) 29/12/2010 Performance Appraisal - achievement of KRA's Deputy Vice-Chancellor (Research) 29/12/2010 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor 29/12/2010 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor (Advancement) 29/12/2010 Performance Appraisal - achievement of KRA's Pro-Vice-Chancellor (Research and International) 29/12/2010 Performance Appraisal - achievement of KRA's Executive Director (Operations) and University Secretary 29/12/2010 Performance Appraisal - achievement of KRA's The aggregate performance bonuses paid to all key executive management personnel are as follows: $'000 $'000 Performance payments to key executive management personnel THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

53 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management Financial risk management The Group s activities expose it to a variety of financial risks, market risks, credit risk and liquidity risk. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit risk and liquidity risk. Senate provides written principles for overall risk management and written policies covering specific areas, such as: cash management, investment of funds, borrowing of funds and the use of foreign exchange contracts. The Group s financial instruments consist mainly of: deposits with banks and cash funds, equity instruments, account receivables and payables and loans with the State of Queensland. (a) Market risk (i) Interest rate risk The Group s exposure to market risk for changes in interest rates relates primarily to the Group s short-term investments. The Group manages its short-term cash flow interest-rate risk by investing in fixed-term funds. Significant assumptions Reasonably possible movements in interest rates were determined based on relationships with financial institutions, a review of the last two year's historical movements and economic forecaster's expectations. (ii) Equity market risk The Group is exposed to equity securities price risk because of long-term investments held by the Group. The Group manages its exposure to market risk by diversifying its long-term investments across different investment asset classes. Significant assumptions Reasonably possible movements in equity prices were determined based on a review of the last three year's historical movements and economic forecaster's expectations. (iii) Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily the US dollar. To manage its foreign exchange risk arising from future commercial transactions, the Group has, at times, entered into foreign exchange contracts. It is Senate s policy to not enter into forward exchange contracts until a commitment is in place. The forward currency contracts must be in the same currency as the hedged item. Significant assumptions Reasonably possible movements in foreign exchange rates were determined based on a review of the last five year's historical movements and economic forecaster's expectations. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

54 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management (continued) Consolidated Interest rate risk Foreign exchange risk Equity market risk 31 December % +0.5% -10% +10% -10% +10% Carrying amount Result Equity Result Equity Result Equity Result Equity Result Equity Result Equity $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 380,394 (5,056) (5,056) 1,685 1,685 (624) (624) Receivables 110, (158) (158) Held to maturity investments 11, Available for sale financial assets 7, Managed investment portfolio FVTPL 73, (7,369) (7,369) 7,369 7,369 Other financial assets FVTPL 29, Financial liabilities Trade and other payables 98, Financial liabilities at amortised cost (Smart State Loans) 30, Interest bearing liabilities 120,345 (1,805) (1,805) Other liabilities 55, Total increase/ (decrease) (6,861) (6,861) 2,287 2,287 (782) (782) (7,369) (7,369) 7,369 7,369 Consolidated Interest rate risk Foreign exchange risk Other price risk 31 December % +0.5% -10% +10% -10% +10% Carrying amount Result Equity Result Equity Result Equity Result Equity Result Equity Result Equity $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 238,347 (2,321) (2,321) (625) (625) Receivables 101, (204) (204) Held to maturity investments 93, Available for sale financial assets 6, Managed investment portfolio FVTPL 79, (7,989) (7,989) 7,989 7,989 Other financial assets FVTPL 21, Financial liabilities Trade and other payables 85, Financial liabilities at amortised cost (Smart State Loans) 28, Interest bearing liabilities 122,726 (1,841) (1,841) Derivatives - FVTPL (FX Contracts) (20) (20) Other liabilities 94, Total increase/ (decrease) (4,162) (4,162) 1,388 1,388 (849) (849) (7,989) (7,989) 7,989 7, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

55 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management (continued) 1. Cash is currently at call which is at a floating interest rate. UQ is liable to interest rate risk on the total cash balance (excluding monies held on behalf of third parties) and foreign exchange risk on USD account balances. Included in the cash balance are term deposits which are at fixed interest rates and therefore not subject to interest rate risk. 2. UQ is exposed to foreign exchange risk on debtors denominated in foreign currencies. 3. Term deposits are held by subsidiaries which will not mature within 90 days. 4. Shares consist of unlisted shares and investments held at cost. Price movements in these investments cannot be measured reliably and have been omitted. 5. Price risk in relation to managed investment funds has been estimated as detailed in the equity market risk description above. 6. UQ is exposed to foreign exchange risk on open forward contracts. 7. Other financial assets consist largely of unlisted shares and investments held at cost. Price movement in those investments cannot be measured reliably and have been omitted. 8. Smart State Loans received from the Queensland Government are non-interest bearing and are recorded at amortised cost. 9. The University has two finance leases. One finance lease is in relation to the PACE Precinct. This is a 40 year finance lease with set repayments. The other finance lease is in relation to CISCO equipment. This is a 3 year finance lease with set repayments. As both leases have set repayments they are not subject to any market risk. The methods for determining fair value are outlined in the relevant accounting policy notes to the financial statements (refer Note 1). (b) Credit risk The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount of those assets, net of any provisions for impairment of those assets, as disclosed in the Statement of Financial Position and Notes to the financial statements. The economic entity does not have any material credit risk exposure to any single receivable or group of receivables, under financial instruments entered into by the economic entity. There is no significant concentration of credit risk within the Group. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

56 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management (continued) (c) Liquidity risk The Group s objective is to maintain a balance between continuity of funding and flexibility through the use of deposits with banks and cash funds; and accessibility to a drawdown stand-by facility. The following tables summarise the maturity of the Group's financial assets and financial liabilities: Consolidated - 31 December 2011 Average interest rate Variable interest rate Less than 1 Year 1 to 5 Years 5+ Years Noninterest Total % $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents , , ,394 Receivables , ,296 Held to maturity investments , ,500 Available for sale financial assets ,590 7,590 Other financial assets FVTPL , ,983 Total financial assets 246, , , ,763 Financial liabilities Trade and other payables ,372 98,372 Other liabilities at amortised cost (Smart State Loans) ,949 30,949 Finance leases at amortised cost ,530 8, , ,345 Other liabilities ,684 55,684 Total financial liabilities - 3,530 8, , , ,350 Consolidated - 31 December 2010 Average Interest Rate Variable Interest Rate Less than 1 Year 1 to 5 Years 5+ Years Non- Interest Total % $'000 $'000 $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents ,005 68, ,347 Receivables , ,835 Held to maturity investments , ,400 Available for sale financial assets ,753 6,753 Other financial assets FVTPL , ,247 Total financial assets 170, , , ,582 Financial liabilities Trade and other payables ,566 85,566 Other liabilities at amortised cost (Smart State Loans) ,689 28,689 Finance leases at amortised cost ,158 9, , ,726 Derivatives - FVTPL (FX contracts) Other liabilities ,167 94,167 Total financial liabilities - 5,158 9, , , , THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

57 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management (continued) (d) Fair value estimation The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. Unlisted shares and investments are carried at cost and are comprised mainly of wholly owned subsidiaries. Derivative contracts are fair valued by comparing the contracted rate to the current market rate. Due to the short-term nature of the current receivables and payables, their carrying value is assumed to approximate their fair value and based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due. Smart State Loans received from the Queensland Government are non-interest bearing and are recorded at amortised cost. The carrying amounts and aggregate net fair values of financial assets and liabilities at reporting date are: Carrying Fair Value $'000 $'000 $'000 $'000 Financial assets Cash and cash equivalents 380, , , ,347 Receivables 110, , , ,835 Held to maturity investments 11,500 93,400 11,500 93,400 Available for sale financial assets 7,590 6,753 7,590 6,753 Other financial assets at FVTPL 102, , , ,247 Total financial assets 612, , , ,582 Financial liabilities Derivatives - FX Contracts - (196) - (196) Trade and other payables (98,372) (85,566) (98,372) (85,566) Other liabilities at amortised cost (Smart State Loans) (30,949) (28,689) (30,949) (28,689) Finance leases at amortised cost (120,345) (122,726) (120,345) (122,726) Other liabilities (55,684) (94,167) (55,684) (94,167) Total financial liabilities (305,350) (331,344) (305,350) (331,344) Total 307, , , ,238 The University uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets and liabilities; Level 2: other techniques for which all inputs which have significant effect on the recorded value are observable; Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable data. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

58 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management (continued) Fair value measurements recognised in the statement of financial position are categorised into the following levels: 31 December 2011 Level 1 Level 2 Level 3 $'000 $'000 $'000 $'000 Financial assets Available for sale financial assets 7, ,590 Other financial assets at FVTPL 102, , Total financial assets 110, ,983-7, December 2011 Level 1 Level 2 Level 3 $'000 $'000 $'000 $'000 Financial liabilities Other liabilities at amortised cost (Smart State Loans) (30,949) - - (30,949) Finance leases at amortised cost (120,345) - - (120,345) Total financial liabilities (151,294) - - (151,294) Total (40,721) 102,983 - (143,704) 31 December 2010 Level 1 Level 2 Level 3 $'000 $'000 $'000 $'000 Financial assets Available for sale financial assets 6, ,753 Other financial assets at FVTPL 101, , Total financial assets 108, ,247-6,753 Consolidated 31 December 2010 Level 1 Level 2 Level 3 $'000 $'000 $'000 $'000 Financial liabilities Derivatives - FX contracts (196) - (196) - Other liabilities at amortised cost (Smart State Loans) (28,689) - - (28,689) Finance leases at amortised cost (122,726) - - (122,726) Total financial liabilities (151,611) - (196) (151,415) Total (43,611) 101,247 (196) (144,662) 56 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

59 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Financial risk management (continued) Level 3 Financial Assets 2011 Available for sale financial assets $'000 Total $'000 Opening balance 6,753 6,753 Purchases - - Sales Issues (2) (2) Closing balance 7,590 7,590 Level 3 Financial Liabilities 2011 Other liabilities at amortised cost (Smart State Loans) Finance leases at amortised cost Total $'000 $'000 $'000 Opening balance 28, , ,415 Total gains or losses In profit or loss 2,260 11,128 13,388 Lease instalments - (13,509) (13,509) Closing balance 30, , ,294 Level 3 Financial Assets 2010 Available for sale financial assets $'000 Total $'000 Opening balance 12,205 12,205 Total gains or losses - In profit or loss (6,201) (6,201) Purchases Sales (1) (1) Closing balance 6,753 6,753 Level 3 Financial Liabilities 2010 Financial liabilities at amortised cost (Smart State Loans) Finance leases at amortised cost Total $'000 $'000 $'000 Opening balance 27, , ,644 Total gains or losses In profit or loss 1,421 10,140 11,561 New lease - 16,045 16,045 Lease instalments - (8,835) (8,835) Closing balance 28, , ,415 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

60 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance 44.1 DEEWR - CGS and Other DEEWR Grants Parent entity (University) ONLY Commonwealth Grant Scheme 1 Indigenous Support Program HE Partnership & Participation Program Disability Support Program Workplace Productivity Program Learning & Teaching Performance Fund Capital Development Pool Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Program) 248, , ,059 1, , ,127 Net accrual adjustments Revenue for the period 2(a) 248, , ,059 1, , ,127 Surplus / (deficit) from the previous year Total revenue including accrued revenue 248, , ,009 2, , ,127 Less expenses including accrued expenses (248,294) (244,623) (884) (833) (2,069) (1,337) (100) (94) - (1,350) - (580) - (3,127) Surplus / (deficit) for reporting period , Parent entity (University) ONLY Diversity and Structural Adjustment Fund Transitional Cost Program Total Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Program) 408-1,359 1, , ,812 Net accrual adjustments Revenue for the period 2(a) 408-1,359 1, , ,812 Surplus / (deficit) from the previous year ,099 1,868 Total revenue including accrued revenue ,359 1, , ,680 Less expenses including accrued expenses (412) (580) (1,359) (1,057) (253,118) (253,581) Surplus / (deficit) for reporting period ,065 1,099 1 Includes the basic CGS grant amount, CGS-Regional Loading, CGS-Enabled Loading, Maths and Science Transition Loading and Full Fee Places Transition Loading. 58 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

61 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.2 Higher Education Loan Programs Parent entity (University) ONLY HECS - HELP (Australian Government payments only) FEE - HELP 2 Total Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 130, ,886 22,080 20, , ,964 Net accrual adjustments - - (305) (199) (305) (199) Revenue for the period 2(b) 130, ,886 21,775 19, , ,765 Surplus / (deficit) from the previous year - - (2,163) (3,165) (2,163) (3,165) Total revenue including accrued revenue 130, ,886 19,612 16, , ,600 Less expenses including accrued expenses (130,173) (127,886) (19,578) (18,877) (149,751) (146,763) Surplus / (deficit) for reporting period (2,163) 34 (2,163) 2 Program is in respect of FEE-HELP for Higher Education only and excludes funds received in respect of VET FEE-HELP. THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

62 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.3 Scholarships Parent entity (University) ONLY Australian Postgraduate Awards International Postgraduate Research Scholarship Commonwealth Education Cost Scholarships 3 Commonwealth Accommodation Scholarships 3 Indigenous Access Scholarships Total Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 17,574 14,135 1,763 1,908 1,265 1,482 2,365 2, ,090 20,199 Net accrual adjustments Surplus / (deficit) from the previous year 995 (575) - (328) (356) Total revenue including accrued revenue 18,569 13,560 1,763 1,580 1,265 1,684 2,365 2, ,085 19,843 Less expenses including accrued expenses (14,999) (12,565) (1,763) (1,580) (780) (1,684) (1,452) (2,900) (123) (119) (19,117) (18,848) Surplus / (deficit) for reporting period 3, , Includes National Priority and National Accommodation Priority Scholarships respectively 60 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

63 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.4 DIISR Research Parent entity (University) ONLY Joint Research Engagement Program 4 Research Training Scheme Systemic Infrastructure Initiative Research Infrastructure Block Grants Implementation Assistance Program Commercialisation Training Scheme Sustainable Research Excellence in Universities 4 Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 29,165 28,116 55,288 54, ,673 24, ,817 7,698 Net accrual adjustments Revenue for the period 2(d) 29,165 28,116 55,288 54, ,673 24, ,817 7,698 Surplus / (deficit) from the previous year ,393 9, ,259 4,443 - Total revenue including accrued revenue 29,165 28,116 55,288 54, ,066 33, ,288 1,752 15,260 7,698 Less expenses including accrued expenses (29,165) (28,116) (55,288) (54,167) (559) (218) (26,346) (21,874) - (493) (860) (1,102) (15,260) (3,255) Surplus / (deficit) for reporting period ,720 11, ,443 Parent entity (University) ONLY Total Notes $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 119, ,689 Net accrual adjustments - - Revenue for the period 2(d) 119, ,689 Surplus / (deficit) from the previous year 17,045 11,581 Total revenue including accrued revenue 136, ,270 Less expenses including accrued expenses (127,478) (109,225) Surplus / (deficit) for reporting period 9,148 17,045 4 Includes Institutional Grants Scheme THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

64 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.5 Education Investment Fund Parent entity (University) ONLY VSU Transition Fund Education Investment fund (EIF) Total Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) ,600 49,200 71,600 49,200 Net accrual adjustments Revenue for the period 2(e) ,600 49,200 71,600 49,200 Surplus / (deficit) from the previous year 942 2,813 13,049-13,991 2,813 Total revenue including accrued revenue 942 2,813 84,649 49,200 85,591 52,013 Less expenses including accrued expenses Surplus / (deficit) for reporting period (942) (1,871) (65,780) (36,151) (66,722) (38,022) ,869 13,049 18,869 13, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

65 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.6 Australian Research Council Grants (a) Discovery Parent entity (University) ONLY Project Future ships Super Science ships Australian Laureate ships Federation ships Indigenous Researchers Development Total Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 34,839 31,184 11,241 2, ,682 1,546 2,105 3, ,197 38,996 Net accrual adjustments Revenue for the period 2(f)(i) 34,839 31,184 11,241 2, ,682 1,546 2,105 3, ,197 38,996 Surplus / (deficit) from the previous year 14,877 14,031 1,841 1, , , (10) 18,842 17,454 Total revenue including accrued revenue 49,716 45,215 13,082 4, ,763 2,163 3,036 4, ,039 56,450 Less expenses including accrued expenses (33,749) (30,338) (6,601) (2,513) (271) - (1,393) (1,082) (2,520) (3,688) (15) 13 (44,549) (37,608) Surplus / (deficit) for reporting period 15,967 14,877 6,481 1, ,370 1, ,490 18,842 (b) Linkages Parent entity (University) ONLY Infrastructure International Projects Total Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 3,600 1,664 (26) (58) 12,501 15,134 16,075 16,740 Net accrual adjustments Revenue for the period 2(f)(ii) 3,600 1,664 (26) (58) 12,501 15,134 16,075 16,740 Surplus / (deficit) from the previous year 1,033 1, ,668 10,547 11,864 11,924 Total revenue including accrued revenue 4,633 2, ,169 25,681 27,939 28,664 Less expenses including accrued expenses (3,303) (1,698) (130) (89) (13,273) (15,013) (16,706) (16,800) Surplus / (deficit) for reporting period 1,330 1, ,896 10,668 11,233 11,864 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

66 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.6 Australian Research Council Grants (continued) (c) Networks and Centres Parent entity (University) ONLY Research Networks Centres Total Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) - - 6,495 5,419 6,495 5,419 Net accrual adjustments Revenue for the period 2(f)(iii) - - 6,495 5,419 6,495 5,419 Surplus / (deficit) from the previous year , ,812 Total revenue including accrued revenue ,117 6,767 7,294 7,231 Less expenses including accrued expenses Surplus / (deficit) for reporting period (177) (287) (4,034) (6,145) (4,211) (6,432) , , (d) Thinking Systems Parent entity (University) ONLY Thinking Systems Total Notes $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) Net accrual adjustments Revenue for the period 2(f)(iv) Surplus / (deficit) from the previous year Total revenue including accrued revenue 852 1, ,171 Less expenses including accrued expenses Surplus / (deficit) for reporting period (852) (707) (852) (707) THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

67 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.7 National Health & Medical Research Council Grants (a) Research Support Parent entity (University) ONLY Programs Projects Development Partnerships Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 7,345 8,709 29,395 28, Net accrual adjustments Revenue for the period 2(g)(i) 7,345 8,709 29,395 28, Surplus / (deficit) from the previous year ,942 6, (75) 63 - Total revenue including accrued revenue 7,823 9,384 35,337 34,775 1, Less expenses including accrued expenses (6,176) (8,906) (28,873) (28,833) (750) (333) (77) (22) Surplus / (deficit) for reporting period 1, ,464 5, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

68 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.7 National Health & Medical Research Council Grants (continued) (a) Research Support (continued) Parent entity (University) ONLY International Targeted Calls Centres for Research Total Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 204-6,254 8,476 2,618-46,965 45,824 Net accrual adjustments Revenue for the period 2(g)(i) 204-6,254 8,476 2,618-46,965 45,824 Surplus / (deficit) from the previous year - - 1,637 2, ,466 9,392 Total revenue including accrued revenue 204-7,891 10,512 2,837-55,431 55,216 Less expenses including accrued expenses (204) - (6,138) (8,875) (1,440) 219 (43,658) (46,750) Surplus / (deficit) for reporting period - - 1,753 1,637 1, ,773 8, THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

69 ANNUAL FINANCIAL STATEMENTS APPENDIX A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.7 National Health & Medical Research Council Grants (continued) (b) People Support Parent entity (University) ONLY Early Career ships Established Career ships Career Development ships Postgraduate Scholarships Total Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) 3,197 1,872 7,418 7,730 2,347 2, ,831 12,920 Net accrual adjustments Revenue for the period 2(g)(i) 3,197 1,872 7,418 7,,730 2,347 2, ,831 12,920 Surplus / (deficit) from the previous year (303) (199) (211) Total revenue including accrued revenue 3,313 2,144 7,115 7,531 2,890 3, ,976 13,347 Less expenses including accrued expenses (2,992) (2,028) (7,575) (7,834) (2,792) (2,460) (753) (880) (14,112) (13,202) Surplus / (deficit) for reporting period (460) (303) (95) (211) (136) 145 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

70 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER Acquittal of Australian Government financial assistance (continued) 44.7 National Health & Medical Research Council Grants (continued) (c) Infrastructure Support Parent entity (University) ONLY Enabling Grants Infrastructure Grants Total Notes $'000 $'000 $'000 $'000 $'000 $'000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programs) ,799 1,562 Net accrual adjustments Revenue for the period 2(f)(iii) ,799 1,562 Surplus / (deficit) from the previous year (306) (357) Total revenue including accrued revenue ,686 1,473 2,378 1,885 Less expenses including accrued expenses (762) (718) (866) (588) (1,628) (1,306) Surplus / (deficit) for reporting period (70) (306) THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

71 ANNUAL FINANCIAL STATEMENTS APPENDIX A Management Certificate THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT

72 Independent Audit Report 70 THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT 2011

73 ANNUAL FINANCIAL STATEMENTS APPENDIX A THE UNIVERSITY OF QUEENSLAND ANNUAL REPORT