CQUniversity Annual Report - Central Queensland University

62
OUR FINANCIAL PERFORMANCE
Other areas of expenditure that have seen a signifi cant increase are
leases, where the University made strategic investments in expansion
of leased space at Noosa, Adelaide and Cairns. Leases increased by
$3.788m from 2011 to 2012.
Depreciation increased by $1.3m or 10% refl ecting the capitalisation
of completed projects. Other expenses to show signifi cant increases
included marketing where additional funds were invested to support
growth in domestic student numbers ($720k), scholarships and prizes
($774k), legal costs incurred in pursuit of the merger ($407k), student
waivers ($781k) and increased utilities costs ($893k).
Management fees paid to partners have decreased by 13.1% refl ecting
the decline in international student numbers.
OTHER MATTERS
The University maintains a comprehensive insurance program that
annually assesses its risks and provides appropriate levels of cover
for each of these risks. It also has a range of programs for staff
and students to ensure their safety and wellbeing, and provides
appropriate channels to enable decisions of the University to be
reviewed. Through these mechanisms the University minimises the
cost and risk in relation to liabilities and contingent liabilities.
The University operates to achieve value for money and has appropriate
procurement policies and procedures to support this outcome.
The University has exercised appropriate control over budgets and has
operated within the budgets it allocated to Divisions for the year. As a
result of revenue losses in the international student business not being
fully offset by increases in domestic student revenue, the University
recorded a defi cit of revenue.
It was too late in the year to make adjustments to expenditure budgets
by the time this information was to hand. Further the University
made decisions to incur additional costs in restructuring to make the
University more sustainable into the future. Spending of research funds
were not in excess of the budget but were against funds earned in a
prior year, and the spending of University funds against development
projects was approved by Council within the budgets established for
those projects.