Council establishment and general functions and powers

dIVIsIon 1 – unIVErsItY EstABLIshmEnt And GEnErAL functIons And PowErs Establishment of university

4. (1) The Queensland University of Technology is established.

(2) The University –

(a) is a body corporate (b) has a seal; and

(c) may sue and be sued in its corporate name

functions of the university

5. The University’s functions are –

(a) to provide education at university standard;

and

(b) to provide facilities for, and encourage, study and research; and

(c) to encourage the advancement and

development of knowledge, and its application to government, industry, commerce and the community; and

(d) to provide courses of study or instruction (at the level of achievement the Council considers appropriate) to meet the needs of the

community; and

(e) to confer higher education awards; and (f) to disseminate knowledge and promote

scholarship; and

(g) to provide facilities and resources for the wellbeing of the University’s staff, students and other persons undertaking courses at the University; and

(h) to exploit commercially, for the University’s benefit, a facility or resource of the University, including, for example, study, research or knowledge, or the practical application of study, research or knowledge, belonging to the University, whether alone or with someone else; and

(i) to perform the functions given to the University under this or another Act.

General powers of the university

6. (1) The University has all the powers of an individual, and may, for example – (a) enter into contract; and

(b) acquire, hold dispose of and deal with property; and

(c) appoint agents and attorneys; and (d) engage consultants; and

(e) fix charges, and other terms, for services and other facilities it supplies; and

(f) do anything else necessary or convenient to be done for, or in connection with, its functions.

(2) Without limiting sub-section (1), the University has the powers given to it under this or another Act.

(3) The University may exercise its powers inside or outside Queensland.

(4) Without limiting sub-section (3), the University may exercise its powers outside Australia.

* The University was established on 1 January 1989.

functIons And PowErs

of thE unIVErsItY ^*

dIVIsIon 2 – councIL EstABLIshmEnt And GEnErAL functIons And PowErs Establishment of council

7. There is a Council of the University

functions of council

8. (1) The Council is the University’s governing body.

(2) The Council has the functions conferred on it under this or another Act.

Powers of council

9. (1) The Council may do anything necessary or convenient to be done for, or in connection with, its functions.

(2) Without limiting sub-section (1), the Council has the powers given to it under this or another Act and, in particular –

(a) to appoint the University’s staff; and (b) to manage and control the University’s

affairs and property; and

(c) to manage and control the University’s finances.

council to promote the university’s interests

10. The Council must act in a way that appears to it most likely to promote the University’s interests.

delegation

11. (1) The Council may delegate its powers under this Act to –

(a) an appropriately qualified member of Council; or

(b) an appropriately qualified committee that includes one or more members of the Council; or

(c) an appropriately qualified member of the University’s staff

(2) However, the Council may not delegate its power to – (a) make the University’s statutes or rules; or (b) adopt the University’s annual budget; or (c) to approve spending of funds available to the

University by way of bequest, donation or special grant.

(3) Despite subsection (2) (c), the Council may delegate

its power to approve spending of funds mentioned in

the paragraph if the expenditure is for a scholarship

or a prize funded by bequest, donation or special

grant.

IntroductIon summArY of fInAncIAL PErformAncE

summArY

The University continued to manage its resources diligently to generate a sound surplus and maintain a strong balance sheet which supports a significant capital development plan within an increasingly competitive and resource-intensive higher education sector.

The 2010 annual operating surplus was down when compared to 2009 due to several factors including higher cost of operations through investment in staffing and research capacity building initiatives, upfront recognition of multi-year income in 2009, and a significant drop in unrealised gains in comparison to the large bounce back in equity investment markets in 2009 following the global financial crisis.

The University’s financial position remains strong,

underpinned by considerable holdings of property, plant and equipment and liquid assets (cash and investments) with very low debt positions.

IncomE stAtEmEnt

Income

($730 million, decreased $22 million or 3 per cent)

Total income in 2010 reached $729.6 million (2009: $752 million).

Total student load increased 3.2 per cent comprising Commonwealth Supported Places (increased 2.7 per cent);

Overseas Fee Paying (increased 7.2 per cent); and Domestic Postgraduate (increased 3.2 per cent).

Fee Paying Student income increased $15.2 million (12.2 per cent) with the majority of growth sourced from overseas students ($14.6 million) bringing gross income from overseas students up 14.5 per cent to $115.4 million.

Australian Government grants increased $4.3 million (1 per cent) with increases in Commonwealth Grant Scheme ($11.5 million, 6 per cent) and Higher Education Loan Program ($6.0 million, 4.4 per cent), offset by a reduction in capital funding $15.7 million.

State and Local Government funding decreased $1.5million (13.5 per cent).

Investment income dropped by $23.8 million primarily due to the decrease in unrealised gains in 2010 when compared to the extraordinary result achieved in 2009.

Consultancy and contract income decreased by $17.6 million (32.5 per cent) driven by the Stronger Smarter Learning Communities grant being brought to account in 2009 worth

$16.4 million which will be spent over a four-year period.

Expenses

($682 million, increased $41 million or 6.4 per cent)

Total expenses for 2010 reached $682.4 million (2009:

$641.5 million).

Employee-related expenses were the largest contributor to the increase ($37.6 million; 10.2 per cent) driven by a combination of additional staff, enterprise bargaining salary rate increases and research capacity-building initiatives.

Academic staff expenses increased by 11 per cent and non-academic staff expenses increased 9.4 per cent.

Depreciation expense decreased by $1.9 million due to the demolitions of several buildings in late 2009 to make way for the new Science and Technology Precinct due for completion in 2012.

Other expenses increased by $5 million (2.5 per cent) with the largest contributors being scholarship, grants and prizes at $4.9 million.

Operating Margin ($47 million, decreased $63 million or 57.3 per cent)

The University achieved a solid operating surplus of

$47.2 million or 6.5 per cent slightly above the benchmark

rate of 5 per cent (2009: $110.5 million or 14.7 per cent). The

operating result represents a considerable decrease from the

2009 result ($63 million decrease) though the 2009 result

included the upfront recognition of multi-year income for

programs including the Stronger Smarter Learning grant, and

large capital grants for Teaching and Learning, the Education

Infrastructure Fund, and The Atlantic Philanthropies donation

for the construction of the Science and Technology Precinct.

fInAncIAL PosItIon

The Statement of Financial Position outlines the financial strength of the University and its capacity to support long-term priorities.

Net Assets

($1129 million decreased $2 million or 0.2 per cent)

QUT’s net asset position as at 31 December 2010 was

$1128.8 million, representing a decrease of $1.9 million.

This decrease was driven by several key factors including the impairment of the Carseldine campus ($37 million). Trade and other payables increased by $5.1 million which was offset by an increase in cash and cash equivalents of

$24.1 million and non-current assets held for sale increased by $15.7 million.

The increase in cash and cash equivalents was due to a combination of factors including a conversion of an investment previously held in a longer term investment product; tied funding received which is required to be held in secure and liquid investment products; and the new investments and borrowings policies implemented by the University with regard to appropriate investment products to match short-term, medium- and long-term cash flow requirements.

Liabilities

($160 million increased $38 million or 31.2 per cent)

Total liabilities are higher at $160.1 million, an increase of

$38.1 million. This was primarily driven by increases in long service leave provision ($3.2 million) and the annual leave provision ($1.7 million) due to salary rates and staffing increases. Unearned revenue increased $25.8 million which is directly attributable to student fees for 2011 and is mainly from continuing students. This increase is reflected in a corresponding movement in student debtor balances.

Liquidity Ratio (down to 2.7:1)

The University’s liquidity ratio of current assets to current liabilities is currently placed at 2.7:1. This is within the generally accepted better practice range for universities of 1.5 to 3.0. This outcome is at the higher end of the range though is deemed appropriate given the active management funds held in cash and cash equivalents for the purpose of supporting the significant asset management plan, and the reclassification of the Carseldine campus (buildings and land improvements) and another parcel of land to ‘held for sale’.

In summary, the University produced a solid operating result

for 2010 and the underlying financial position remains strong

to support its budgeted plans and objectives and longer term

aspirations.

Income statement