2007 Annual report (PDF 8.1 Mb) - University of Melbourne

NOTES TO AND FORMING PART OF THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007
NOTE 33: RESPONSIBLE PERSONS AND EXECUTIVE OFFICERS (CONTINUED)
(c) Minister
The responsible Minister for the reporting period was the Hon. Jacinta Allan MP (1 January 2007 to 31 December 2007). Remuneration
of the Minister is disclosed in the financial report of the Department of Premier and Cabinet. Other relevant interests are declared in the
Register of Member’s Interests which each member of Parliament completes.
(d)
Related party transactions
Mr I A Renard and Ms E A Alexander are Directors of CSL Limited, which has entered into a lease for space in the BIO 21 building and
other contracts with the University on normal commercial terms and conditions.
Other related party transactions requiring disclosure under the directions of the Minister for Finance have been considered and there are
no matters to report.
NOTE 34: CONTINGENT ASSETS AND CONTINGENT LIABILITIES
The University and its subsidiaries have the following contingent assets and contingent liabilities as at 31 December 2007.
34.1 Contingent Assets
34.1.1 As at 31 December 2007, the Group did not have any contingent assets (2006, Nil).
34.2 Contingent Liabilities
34.2.1 Indemnity
(a) The University has issued a Letter of Indemnity to the National Australia Bank to cover the Bank’s guarantee to the Victorian
WorkCover Authority under the University’s WorkCover Self Insurance Scheme. The amount of the guarantee in place is $7,059,500
(2006, $7,062,000) and the actuarial assessment of claims liability as at 31 December 2007 is $5,652,000 (2006, $5,062,000).
(b) In addition, the University has provided an indemnity to cover National Australia Bank guarantee to the City of Melbourne in
respect of a 50-year lease (signed in 2000) over a site on which the University has constructed and is operating as a car park. The
amount of the guarantee in place is $50,000 (2006, $50,000).
34.2.2 Student Accommodation on Swanston Street – College Square
The University has agreed to provide a rental guarantee to the purchasers of student apartments in the College Square development
on Swanston Street, Carlton. The University’s rental guarantee is for the first year after settlement with a guarantee for a second
year being provided by Becton (the developers). The University’s obligation applies over 2006-2008 as the project has been
delivered in two stages. Stage 1 was delivered in 2006 with settlements occurring from the end of May while Stage 2 was
completed in January 2007 with settlements extending from that date. Although the majority of apartments were settled within
months of completion, the final settlement occurred on 1st November 2007. The maximum exposure for 2008 is estimated at
$160,154 which will reduce as vacant apartments are let. The actual cost of the rental guarantee for 2007 was $854,641.
34.2.3 Tax Exempt Status – UMEE Ltd (formerly Melbourne University Private Ltd)
This matter reported in prior years in relation to Melbourne Enterprises International Ltd (a subsidiary of UMEE Ltd) was settled
with the Australian Taxation Office during the current financial year such that the company’s status was revised from tax exempt
to taxable.