CQUniversity Annual Report - Central Queensland University

More documents

Recommendations

Info

60 Our Financial Performance ‘THE UNIVERSITY OPERATES TO ACHIEVE VALUE FOR MONEY AND HAS APPROPRIATE POLICIES AND PROCEDURES TO SUPPORT THIS OUTCOME’
CQUniversity ANNUAL REPORT 2012 OUR FINANCIAL PERFORMANCE RESULT FOR 2012 The University recorded a signifi cant loss for the year of $24.668m, which is deterioration on the loss of the previous year of $3.763m. A downturn in international student revenue contributed to this loss, resulting in revenue of $17.671m less than in 2011. The University responded to this by undertaking restructuring to offset the decline in student numbers and incurred redundancies in excess of $4m. In addition, the University continued to invest in the development of new programs and facilities. This contributed around $8m to the loss position as the University renovated space for new laboratories and purchased significant equipment to support these programs. CQUniversity’s research area also contributed to this loss due to spending funds that had been received in a prior period, resulting in expenditure exceeding grants and other revenue for the year. REVENUE PERFORMANCE DOMESTIC LOAD There was a 19.8% increase in Australian Government funding received in 2012 compared to 2011. The Commonwealth Grant Scheme income increased by 15.65% to $77.616m reflecting an increase in domestic student load of 13.4%, with indexation of Commonwealth funding and continued growth in our health programs. The University set aggressive domestic student enrolment targets in the 2012 budget and the actual result was better than expected. The revenue targets for domestic funded load was exceeded by $9.552m giving a total of $106.176m (refer to Table 19). TABLE 19: BUDGET 2012 COMPARED TO ACTUAL AUSTRALIAN FUNDED LOAD EFTSL AND DOLLARS (EXCLUDING RESEARCH STUDENTS) 2012 Budget 2012 Actual Variance to Budget Percentage Variance Australian 6574 6880 306 4.65% funded load EFTSL Australian $96.624m $106.176m $9.552m 9.88% funded load REVENUE Source: CQU Budget document 2012 / Actual EFTSL per the University dashboard, Actual Revenue for CGS and HECS per CQUniversity Financials REVENUE PERFORMANCE FEE-PAYING STUDENTS AUSTRALIAN AND INTERNATIONAL Revenue from fees and charges continued in decline, due to a continued drop in international students studying at the metropolitan campuses. This was further compounded by the related drop in Management Fee of $7.75m received from C Management Services. The University budgeted for a decline in international students however the size of the decline exceeded expectations. The University delivered 32 413 courses compared to a budget of 38 581 courses and actual delivery of 40 731 courses the previous year. This resulted in a loss of revenue from 2011 to 2012 of $17.671m (refer to Table 20). TABLE 20: BUDGET 2011 COMPARED TO ACTUAL FEE- PAYING LOAN COURSES AND DOLLARS (EXCLUDING RESEARCH STUDENTS) Fee-paying student COURSES Fee-paying student REVENUE 2012 Budget 2012 Actual Variance to Budget Percentage Variance 38 581 32 413 6168 16.0% $84.873m $73.789m $11.084m 13.0% Source: CQU Budget document 2012 / Actual courses and revenue per the University dashboard Other signifi cant revenue movements include a decline in Fee Revenue due to non-payment of $7.75m in Management Fee from C Management Services Pty Ltd and a decline in investment income due to much lower than expected interest rates, non-payment of distributions from the investment in the Queensland Investment Corporation Growth Fund and no dividend payment from C Management Services Pty Ltd. EXPENDITURE PERFORMANCE Total expenditure increased from $262.823m in 2011 to $275.534m in 2012, an increase of $12.7m or 4.8%. General operations was overspent by $6.428m which relates to $4m for accounting adjustments for leases and additional leases commenced during the year that were not budgeted, and salaries of $2.79m. Restructuring carried out during 2012 to reduce staffi ng numbers cost the University in excess of $4m. Research and restricted funds contributed $12.434m to the loss. The bulk of this expenditure is attributed to the University-funded investment into new buildings, new programs, building renovation and purchase of equipment for new program delivery. As these are internally funded projects there is no revenue to offset against the expenditure. Without this investment into new programs the University would not be refl ecting the growth in domestic student numbers that was occurring by the end of 2012. The University has in the past few years invested a signifi cant amount from its reserves into programs and buildings to re-invigorate the domestic business. In 2012 the University saw an increase in load of 13.4% and applications by the end of 2012 suggest in excess of 10% growth in 2013. 61 OUR FINANCIAL PERFORMANCE
Page 1 and 2:
CQUniversity A N N U A L R E P O R
Page 3 and 4:
CQUniversity ANNUAL REPORT 2012 AT
Page 5 and 6:
CQUniversity ANNUAL REPORT 2012 FRO
Page 7 and 8:
CQUniversity ANNUAL REPORT 2012 VIC
Page 9 and 10:
CQUniversity ANNUAL REPORT 2012 A S
Page 11 and 12: CQUniversity ANNUAL REPORT 2012 STR
Page 13 and 14: CQUniversity ANNUAL REPORT 2012 OUR
Page 17 and 18: CQUniversity ANNUAL REPORT 2012 15
Page 19 and 20: CQUniversity ANNUAL REPORT 2012 and
Page 23 and 24: CQUniversity ANNUAL REPORT 2012 CQU
Page 27 and 28: CQUniversity ANNUAL REPORT 2012 ENG
Page 31 and 32: CQUniversity ANNUAL REPORT 2012 The
Page 35 and 36: CQUniversity ANNUAL REPORT 2012 A n
Page 37 and 38: CQUniversity ANNUAL REPORT 2012 ENG
Page 39 and 40: CQUniversity ANNUAL REPORT 2012 STU
Page 45 and 46: CQUniversity ANNUAL REPORT 2012 IND
Page 49 and 50: CQUniversity ANNUAL REPORT 2012 EXC
Page 51 and 52: CQUniversity ANNUAL REPORT 2012 CEN
Page 61: CQUniversity ANNUAL REPORT 2012 59
Page 66 and 67: 64 Our Contact Details
Page 68 and 69: 66 Glossary
Page 71 and 72: CQUniversity A N N U A L R E P O R
Page 73 and 74: CQUniversity ANNUAL REPORT 2012 CQU
Page 75 and 76: CQUniversity ANNUAL REPORT 2012 COU
Page 77 and 78: CQUniversity ANNUAL REPORT 2012 num
Page 79 and 80: CQUniversity ANNUAL REPORT 2012 Cen
Page 81 and 82: CQUniversity ANNUAL REPORT 2012 9 C
Page 83 and 84: CQUniversity ANNUAL REPORT 2012 Obj
Page 85 and 86: CQUniversity ANNUAL REPORT 2012 (c)
Page 89 and 90: CQUniversity ANNUAL REPORT 2012 (n)
Page 91 and 92: CQUniversity ANNUAL REPORT 2012 (r)
Page 93 and 94: CQUniversity ANNUAL REPORT 2012
Page 97 and 98: CQUniversity ANNUAL REPORT 2012 Not
Page 111 and 112: CQUniversity ANNUAL REPORT 2012 (a)
Page 113 and 114:
CQUniversity ANNUAL REPORT 2012 Not
Page 115 and 116:
Page 117 and 118:
CQUniversity ANNUAL REPORT 2012 Cen
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
CQUniversity ANNUAL REPORT 2012 71
Page 145 and 146:
Page 147 and 148:
CQUniversity ANNUAL REPORT 2012 Par
Page 149 and 150:
Page 151 and 152:
Page 153:
show all

CQUniversity Annual Report - Central Queensland University

Create successful ePaper yourself

Delete template?

Save as template?