ANNUAL REPORT 1988 (PART 2, - FINANCIAL STATEMENTS)
17. STAFF SUPERANNUATION (19861 FUND
17. STAFF SUPERANNUATION (1986) FUND Balance Sheet as at 31 December 1988 1987
Notes $ $
43,968,604 ACCUMULATED FUNDS represented by:
46,626,763 ASSETS
Current Assets 70,191
624,191 Cash at Bank
Accrued Interest 33,201
660,179 693,380 Investments
11,127,510 Government Securities Ill 12,143,380
Company Ordinary Shares A Convert-
28,205,094 ible Notes Ill 30,148,014
Fined Deposits - Bank Term
2,700,000 Deposits 1,950,000 44,841,394
Freehold Property 1,580,000
(323,2101 Freehold Property fat cost) Accumulated Depreciation less LIABILITIES
131 1,580,000
(362,710) 1,217,290 46,752,064 Current Liabilities
15,112 Sundry Creditors 125,301
43,968,604
46,626,763 Notes:
1. Market value at 31/12/88: $13,198,500 2. Market value at 31/12/88: $43,537,497 3. Market Value at 31/12/88: $1,644,000
4. These statements should be read in conjunction with Note 13 of the 'Notes on the University's Financial Statements'.
45
11. Stiff 1SJ.411G ACCOORT
Statesee of Isom aid Ixpesditure for the Year Laded 31 Deceiber 1911
1907
MOM
1,116 littered Received cm Limos 1,316
2,357 Subsidy - free Tryst hod' 1,574 2,111
les' ISPEIDITOlt
4,173 Overdraft Isterest A Ralik Charge' 2,111
I Surplus for Year 1
SSSSS XXI":
46
18. STAFF HOUSING ACCOUNT Balance Sheet as at 31 Decesber 1988 1981
ASSETS Current Assets
1,357 Subsidy Due frog Free Trust Funds 1,514
133 Sundry Debtors 466
Loans
25,983 Staff Loans Outstanding less LIABILITIES Current Liabilities 28,900 Bank Overdraft
113 Sundry Creditors 0
2,040 12,192
14,141 85
14,232
14,232 0 Notes
1. This statement should be read in conjunction with Note 13 of the 'Notes on the University's Financial Statements'.
47
19. MELBOURNE UNIVERSITY PRESS
Statement of Income and Expenditure for the Year Ended 30 September 1988 1987
$ INCOME Sales
106,887 Publications 1,162,057
3,703,482 Bookroom 4,091,012
5,259,129
(81,2941 Trade & Retail Transfers (68,013) 5,191,116
62,389 Contributions - Publications 10,110
7,917 Sale of Rights, etc.- Publications 10,460
- Recovery of Bad Debts 1,338
294,772 Interest on Investments 263,411 5,536,436
4,894,153
less RIPERDITURE Cost of Goods Sold
439,319 Publications 499,737
2,626,605 Bookroom 2,921,051
3,420,788
(77,2131 Trade & Retail Transfers (63,2631 3,357,525 Salaries & Associated Costs
361,374 Publications 402,140
826,787 Bookroom 851,772 1,253,912
Selling, Administration k Other
520,597 Publications 502,174
236,988 Bookroom 241,079
743,253
(4,0811 Trade & Retail Transfers (4,7501 738,503 5,349,940 4,930,376
(36,2231 Operating Surplus/(Deficit) for Year 186,496
Extraordinary Item:
1,924 Profit/(Loss) on sale of Fixed Assets (1,1191
(34,2991 Surplus/(Deficit( for Year and Extraordinary Items 185,371
2,125,490 Accumulated Funds at 1 October 2,273,595
Transfers from Reserves
Export Development Reserve 4,115
2,391,191 Total Available for Appropriation 2,463,687
Transfers to Reserves
(114,7101 Cash Planning Investment Reserve (119,9881
(2,8861 Miegunyab Trust Reserve (3,0371 4123,0251
2,273,595 Accumulated Funds at 30 September 2,340,662
48
19. MELBOURNE URIVERSITT PRESS
Balance Sheet as at 30 September 1988
1981
Notes $ ACCUMULATED FUNDS AID RESERVES
2,273,595 Accumulated Funds 2,340,662
Reserves
11,137 Export Development Reserve 13,422
924,281 Cash Planning Invest Reserve Fond 1,144,269
23,010 Miegunyah Trust Reserve Fund 16,047 1,083,738
3,239,013
represented by:
3,424,400 ASSETS
Current Assets 13,116 Cash at Bank
1,255 Cash it Band 2,155
6,000 Stamps (incl Franking Machines) 6,000
383,958 Sundry Debtors 196,846
(5,0001 Estimated Doubtful Debts (5,0001 191,846
4,244 Prepayments 2,582
126,023 Accrued Income 172,346
1,298,647 Stock (at valuation) 1,644,684 2,019,613
Investments
1,100,000 Current Account 1,000,000
924,281 Cash Planning 111 1,044,269
23,010 Miegunyab Trust 111 26,047 2,070,316
Ron-Current Assets
10,792 Advances for Future Manuscripts 9,762
Pined Assets (at cost)
198,855 Furniture, Equipment 4 Iaprovs 313,223
(84,5281 Accumulated Depreciation (114,623) 198,550
254,238 Leasehold loproveaents 254,238
(31,826) Accumulated Amortization less LIABILITIES
(44,9081 209,330 407,880 4,501.511 Current Liabilities
Bank Overdraft 182,990
628,716 Sundry Creditors 562,178
55,431 Income in Advance 31,867 777,035
Provisions
131,239 Provision for Annual Leave 140,923
142,716 Provision for Long Service Leave 135,213
30,000 Provision for Stock Markdowns 30,000 306,136 1,083,111
3,239,023 3,424,400
Rotes:
1. Investments held in University of Melbourne Trust Funds on behalf of Melbourne University Press.
2. These statements should be read in conjunction with Note 13 of the 'Notes on the University's Financial Statements'.
49
19.A MELBOURNE UNIVERSITY PRESS Statement of Sources and Applications of Funds
for the Year Ended 30 September, 1988 lotes SOURCES OF FUNDS
Funds from Operations
Inflows of Funds from Operations Outflows of Funds from Operations
1.6
5,536,436
5,311,651 224,185 leductions in Assets
Current Assets
Sundry Debtors i Accruals Prepaylents
Cash on Band and at Bank Ion-Current Asse'ts
Loans/Advances for Future Manuscripts Increase in Liabilities
Current liabilities Bank Overdraft
187,112 1,662 22,176
1,030
182,990
TOTAL SOURCES OF FONDS 619,855
APPLICATION OF FUNDS Increase in Assets Current assets
Investments 23,025
Stocks 346,037
Accrued Income 46,323
Non-Current Assets Buildings and equipment Decrease in Liabilities Current Liabilities
Sundry Creditors 4, Accruals Inoue In Advance
114,368
66,538 23,564
TOTAL APPLICATIONS OF FONDS 619,855
50
KI;5481 Peat Marwick Hungerfords
Charts, NI Ag■
10)(14 10,!10,1;
MCIINkMM . Va i0110 M•Altolom
1 ,1.14..4 HI ii1.111 ...!e•
114• i 1,../10..“
``.. Pt , /
1•14 4.1A OS110,11;1.1
MELBOURNE BUSINESS SCHOOL LIMITED FINANCIAL STATEMENTS
for the year ended 31 December 1988
MELBOURNE BUSINESS SCHOOL LIMITED is incorporated in Victoria.
Itai
,
51
Page 1 of 14
LBOUR ki US SS SCHOO FINANCIAL STATEnal AND REPOR
31 DECEMBER 1988
DIRECTORS:
SECRETARY:
REGISTERED OFFICE:
Mr J C Dahisen Prof D G Penington Prof P J B Rose Prof D E Caro Mr R J Poulton
Mr J Cullen
200 Leicester Street CARLTON VIC
BANKERS: National Australia Bank
ACCOUNTANTS/ Peat Marwick Hungerfords AUDITORS: 80 Collins Street
MELBOURNE VIC 3000
TABLE OF CONTENTS PAGE
Notice of Meeting 2
Directors' Report 3
Statement by Directors 6
Profit and Loss Statement 7
Balance Sheet 8
Notes to and forming part of the Accounts 9 Statement of Sources and Applications of Funds
Auditor's Report
52
J CULLEN SECRETARY
Yage 2
MELBOURNE BUSINESS SCHOOL LIMITED NOTICE OF MEETING
Notice is hereby given that the annual general meeting of the company will be held as hereunder:
PLACE: 200 Leicester Street, Carlton
DATE: 30 March 1989
TIME: 8.30 a.m.
BUSINESS
1. To receive the balance sheet as at 31 December 1988, and the profit and loss statement and statement of sources and applications of funds for the period then ended, together with the directors' statement and directors' and auditor's reports thereon.
2. To eject directors for the forthcoming year.
3. To appoint an auditor for the year ended 31 December 1989.
Dated: 16 March 1989.
53
Page 3 of 14
HELEOME_1151RESS S.C11001- LIMEITO 31 DECEMBER 1988
DIREC ORS' REPORT
The Directors present their report together with the accounts of Melbourne Business School Limited for the year ended 31 December 1988 and the auditors' report thereon.
DIRECTORS
The Directors of the company in office at the date of this report are:—
Mr. J.C. Dahlsen Solicitor
Chairman Director Australian and
Age 54 New Zealand Banking Group Limited,
Tricorn Corporation Limited,
Institute of Public Affairs Limited, OVS Investment Corporation Limited Prof. D.G. Penington Vice—Chancellor
Director ' University of Melbourne
Age 59
Mr. R.J. Poulton Director
Age 36
Prof P J B Rose Director
Age 53
Prof D E Caro Director Age 66
PRINCIPAL ACTIVITIES
Managing Partner
Corrs Pavey Whiting E. Byrne Solicitors
Director
Graduate School of Management University of Melbourne
Hewlett—Packard Aust Limited and A.M.P. Society Limited
Professor
University of Melbourne
The principal activity of the company doling the .curse of the financial year was that of an educational institution.
During the year there were no significant changes in the nature of activities of the company.
RESULTS OF OPERATIONS
During the year the company earned an operating profit of 16,430 (no tar.
applicable) (1987 loss $35).
REVIEW OF OPERATIONS
The company has organised a number of educational seminars during the year and has also taken part in a number of consulting and research projects. This has had n significant. impact_ on Lhe company's profile within the educational environment and in representative of the f . ommitmenl shown by Lhe company's
!;taff.
54
rage 4 01 14
MELBOURNE BUSINESS SCHOOL LIMITED 31 DECEMBER 1988
DIRECTORS' REPORT (continued)
DIVIDENDS
The Melbourne Business School Limited is a company limited by guarantee and is prohibited by its Memorandum of Association (Section 4), from paying a
dividend to its members.
STATE OF AFFAIRS
In the opinion of the Directors there were no significant changes in the state of affairs of the company that occurred during the financial year under review not otherwise disclosed in this report or the accounts.
EVENTS SUBSEQUENT TO BALANCE DATE
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect
significantly the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.
FUTURE DEVELOPMENTS
The main activities which the company will develop and market during 1989 are:
- Assistance in development and delivery of courses and management education programs as requested by the Graduate School of Management.
- Development and provision of seminars and short executive courses and subjects where demand is apparent.
- Negotiation and entering into contracts for the management and carrying out of consultancy projects.
In order to successfully carry out its current commitments the company will need to locate and engage appropriately qualified and experienced personnel to participate in the above activities.
55
Page 5 of 14
MELBOURNE BUSINESS SCHOOL LIMITED 31 DECEMBER 1988
pIRECTORs. REPORT (continued)
DIRECTORS' BENEFITS
Since the end of the previous financial year no Director of the company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors shown in the accounts) by reason of a contract made by the
company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a
substantial financial interest, other than in respect of Mr R.J. Poulton, a partner in the firm of Corrs Pavey Whiting & Byrne, solicitors, which firm renders professional services to the company in the ordinary course of business.
Dated at Melbourne this 16th day of March 1989.
Signed in accordance with a resolution of the Directors:
56
Page 6 of 14
MELBOURNE BUSINESS SCHOOL LIMITED 31 DECEMBER 1988
STATEMENT BY DIRECTORS
In the opinion of the Directors of Melbourne Business School Limited:
(a) the accompanying accounts as set out on pages 7 to 13 are drawn up so as to give a true and fair view of the result of the company for the year ended 31 December 1988 and the state of affairs of the company as at 31 December 1988;
(b) at the date of this statement, there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due.
The accompanying accounts of the company are made out in accordance with Australian Accounting Standards and applicable Approved Accounting Standards.
Dated at Melbourne this 16th day of March 1989.
Signed in accordance with a resolution of the Directors.
57
Page 7 of 14
MELBOURNE BUSINESS SCHOOL LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 1988
NOTE 1988 1987
Operating profit/(loss)
Retained losses at the
beginning of the financial year
Retained profits/(loss) at the end of the financial year
3,4 6,430 (35)
(35) Nil
6.195 (35)
The profit and loss account is to be read in conjunction with the notes to and forming part of the accounts set out on pages 9 to 13.
58
Page 8 of 14
MELBOURNE BUSINESS SCHOOL LIMITED .DALANCE SHEET
AS AT 31 DECEMBER 1988
cite 1988 2987
CURRENT ASSETS Cash
17,660
Receivables 5 4,151
Investments 6 425,000
Inventories 7 3.529
TOTAL CURRENT ASSETS
450.340
TOTAL ASSETS A,5_0 34Q
CURRENT LIABILITIES Creditors and borrowings
Other 8 9
125,681 318.264
35
TOTAL CURRENT LIABILITIES 443.94 35
TOTAL LIABILITIES
--_—_22
NET ASSETS
6.351 SHAREHOLDERS' EQUITY
Retained profits
TOTAL SHAREHOLDERS' EQUITY Commitments and Contingent
liabilities
6 395 (35)
The balance sheet is to be read in conjunction with the
notes to and forming part of the accounts set out on pages 9 to 13.
59
Page 9 of 14
MELROBEE_DUSINESS_SCUODL_LIMITED
to 'it I II I
FOR THE YEAR ENDED 31 DECEMBER 1988
1. STATEMENT OF ACCOUNTING POLICIES
The accounts of the company have been drawn up in accordance with the accounting standards and disclosure requirements of the Australian accounting bodies, applicable Approved Accounting Standards the
provisions of Schedule 7 to the Companies (Victoria) Regulations as in force on 30 September 1987 and the requirements of law. They have been prepared on the basis of historical costs and do not take into account changing money values nor, except where stated, current valuations of non-current assets. Except where stated, the accounting policies have been consistently applied.
Set out below is a summary of the significant accounting policies adopted by the company in the preparation of the accounts.
(a) Income Tax
• The company is exempt from income tax under Section 23(e) of the Income Tax Assessment Act (1936).
(b) Inventories
Inventories are valued at the lower of cost and net realisable value.
2. MEMBERS' FUNDS
The Melbourne Business School Limited is a company limited by the guarantee of its members. There are five members and the liability of members is limited to a maximum of 150 each.
19_1 2 1987 3. OPERATING REVENUE
Included in operating revenue are the following items entering into the determination of operating profit:- Fee revenue
Other revenue-
347,957
- interest received from
other persons/corporations 16,252
36/4,209
60
Page 10 of 14
HELIWURNE BUSINESS SCHOOL LIMIIED NOT iLl II, 'it I I, ; oh
FOR THE YEAR ENDED 31 DECEMBER 1915 (Continued)
15a 1987
4• OPERATING PROFIT
Included in operating profit are the following items of expense:-
Remuneration of auditors
Amounts received or due and receivable by the auditors for:-
- Auditing the accounts 4
,700
5• RECEIVABLES Current
Trade debtors 4,151
6. INVESTMENTS
Short term deposits
7. INVENTORIES
425,000
Calculators - at cost 1,517
Research project - work in progress 2,012
3,529
61
Page 11 or 14
MELBOURNEARISINESS SCHOOL 1.1MITED
NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 1988
(Continued)
1988 1912
t
8. CREDITORS AND BORROWINGS Current
Loan - GSM Foundation - unsecured Trade creditors
Sundry Creditors
100,000 4,700 20.981
;.2 .681 9. OTHER CURRENT LIABILITIES
Fees paid in advance - 1989 10. DIRECTORS' REMUNERATION
Remuneration of Directors
318.264
The number of directors of the company, including executive directors, who received or in respect of whom income is due and receivable, from the company within the following bands is:
1988 1987
$10,000 - $19,999 1
Total income received, or due and receivable, by the directors, including executive directors, from the company is $18,900.
62
Page 12 of 14
MELKURNE BUSINESS SCUOOL LIMITED aVUMARY OF SOURCES AND APPLICATIONS OF FUNDS
Note 1988 1181
4 SOURCES OF FUNDS
Funds from Operations
Inflows of funds from or-rations Fee revenue
347,957 Interest
16.252 364,209 Less outflows of funds from operations
357.779 6,430 APPLICATIONS OF FUNDS
Increase in working capital (i) 6,430 (35)
The summary of sources and applications of funds is to be read in conjunction with the notes to and forming part of the summary
set out on page 13.
35 (35)
63
(1)
Page 13 of 14
MELBOURNE BUSINESS SCHOOL LIMITED NOTES TO AND FORMING PART OF THE SUMMARY OF SOURCES AND APPLICATIONS OF FUNDS
The increase in working capital is as follows:
Increase/(decrease) in current assets:
Cash
Receivables
1988 1987
17,660 4,151
Short term deposits 425,000
Inventories 1,517
Other - Research Project HIP 2.012 450,340 Less: Increase/(decrease) in
current liabilities:
Creditors and borrowings 125,646 35
Fees in advance - 1989 318 264
Net increase in working capital 6,4 .39 (3”
64
Page 14 of 14
1'p;,, 1,,,,,.„„ck I iti111,011rtl:•
AUDITORS' REPORT TO THE MEMBERS OF MELBOURNE BUSINESS SCHOOL LIMITED
We have audited the accounts set out on pages 7 to 13 in accordance with Australian Auditing Standards.
In our opinion the accounts are properly drawn up in accordance with the provisions of the Companies (Victoria) Code and so as to give a true and fair view of:
(i) the state of affairs of the company as at 31 December 1988 and the result of the company for the year ended on that date; and
(II) the other matters required by Section 269 of that Code to be dealt with in the accounts;
and are in accordance with Australian Accounting Standards and applicable Approved Accounting Standards.
PEAT MARWICK HUDGERFORDS CHARTERED ACCOUHTANTS
(L LCC
PARTNER ME!MOURN-7,
,1989.
65
THE UNIVERSITY OF MELBOURNE ANNUAL REPORT FOR 1988
PART 2
FINANCIAL STATEMENTS
Statement by the Vice-Chancellor and the Registrar
In our opinion the Statements of Accounts numbered 1 to 18, in conjunction with the Introductory Notes to the Statements, present fairly the operations of the University for the year ended 31 December, 1988, the changes in the financial position during the year and the state of the affairs of the University at year end.
In our opinion the Statement of Account numbered 19 presents fairly the operations of The University of Melbourne (Melbourne University Press) for the year ended 30 September, 1988, the changes in the financial position during the year and the state of affairs of the Melbourne University Press at year end.
We are not aware at the date of signing these statements of any circumstances which would render any substantial particulars included in the Statements to be misleading or inaccurate.
D.G. PENINGT•., J.B. POTTER,
VICE-CHANCELLOR REGISTRAR
I4/3/°10
Statement by the Principal Accounting Officer
In my opinion the Statement of Accounts numbered 1 to 18, in conjunction with the Introductory Notes to the Statements, present fairly the operations of the University for the year ended 31 December, 1988, the changes in the financial position during the year and the state of affairs of the University at year end.
In my opinion the Statement of Account numbered 19 presents fairly the operations of The University of Melbourne (Melbourne University Press) for the year ended 30 September, 1988, the changes in the financial position during the year and the state of affairs of the Melbourne University Press at year end.
E.L. ASTON.
PRINCIPAL ACCOUNTING OFFICER
I
+/
3 /9066
Contact Telephone Our Rel.
Your Ref:
1 MACARTHUR STREET MELBOURNE. VIC . 3002 TELEPHONE 651 6012 FAX NO 650 5391 VICTORIA