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

Financials
Auditor-General’s Qualification
The Auditor-General has qualified the University’s financial report on the grounds that the payments from the National Health and
Medical Research Council and the Australian Research Council received in advance as at 31 December 2007 have been treated as
Income in Advance and recognised as a liability in the Balance Sheet.
The University’s treatment of these payments is in accordance with Australian Accounting Standard AASB 118 Revenue. Both the
National Health and Medical Research Council and the Australian Research Council are Commonwealth Government agencies.
The University regards the receipt of these payments from the National Health and Medical Research Council and from the Australian
Research Council as a reciprocal transfer, as the University is required to undertake specific research in return for the research grants.
Where the University fails to undertake the specific research, or to fully expend the research grant, the research grant or part thereof
is required to be returned to the Commonwealth.
Under these conditions the payment received in advance may not be recognised until the University meets its obligations in the
relevant year.
The Auditor-General has taken the view that these payments should be treated as income in the actual year of receipt and for that
reason has qualified the University’s financial report. The University does not agree with the interpretation of the nature of the
income.
The University has sought external advice which confirms the University’s interpretation of the standards.
Consolidated Results
The University of Melbourne and its subsidiaries recorded an operating surplus after tax of $96.246 million for the year ended 31
December 2007. The consolidated results include the operations of a group which, apart from the University itself, comprises nine
subsidiaries. The major entities in the University of Melbourne Group are the Melbourne Business School Limited and UMEE Ltd.
SoURCes of Income
Combined operating income at $1.433 billion increased by $150.380 million or 11.7 per cent on 2006 with the most significant
improvements being recorded in income from Australian Government Financial Assistance ($73.180 million), Fees and Charges
($35.537 million) and Investment Income ($53.625 million).
Australian Government Recurrent Financial Assistance* 22.2%
Other Australian Government Financial Assistance 16.6%
HECS-HELP 7.5%
FEE-HELP 2.1%
State Government Financial Assistance 2.2%
Investments, Fees and Charges and Other Income 45.0%
Grants, Donations and Bequests 4.4%
* Australian Government Recurrent Financial Assistance includes funding for the Commonwealth Grants Scheme, Institutional Grants
Scheme, Research Training Scheme and Research Infrastructure Block Grants.
Expenditures
Operating expenditure of the combined University for 2007 totalled $1.336 million, full details of which appear in the supporting notes
to the Income Statement and in Note 46. Of these expenditures 53.3 per cent was spent on salaries and other staff costs (53.2 per
cent in 2006).
Employee Benefits and On Costs 53.3%
Depreciation and Amortisation 6.1%
Repairs and Maintenance 4.6%
Scholarships 4.0%
Other Expenses 32.0%