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

FINANCIAL
stATEMENTS
Financial Position
The following events are recorded in the Financial Statements for the year ended 31 December 2007.
Victorian College of the Arts
On 29 August 2006 the Victorian Governor in Council assented to the Melbourne University (Victorian College of the Arts) Act 2006 which
enacted the integration of the Victorian College of the Arts (VCA) as a faculty of the University of Melbourne with effect from 1 January
2007. The legislation was gazetted and proclaimed on 31 August 2006. As a result all assets and liabilities of the VCA were assumed
by the University from 1 January 2007, and the VCA ceased to exist as a separate reporting entity from that date. The University has
recorded $103.919 million as a gain (representing the net asset position of the VCA at the date of transfer) in the Income Statement. At the
consolidated level, the gain recognised on transition has been eliminated.
Melbourne Ventures Pty Ltd
On 30 June 2007, the shares held by the University in Melbourne Ventures Pty Ltd were sold to UMEE Ltd, a subsidiary of the University.
From this date Melbourne Ventures became a subsidiary of UMEE Ltd.
There were no other significant changes in the financial position of the University and its subsidiaries.
Event occurring after Reporting Date
Subsequent to balance date, there has been a downturn in global equity markets which has resulted in a reduction in the investment values
shown in the Balance Sheet. Based on information available as at 29 February 2008, the decline in the value of the investment portfolio
was $110.4 million or 8.3 per cent.
The University of Melbourne
This represents the University’s teaching, research and administrative activities, but excludes the activities conducted by its subsidiaries.
The University of Melbourne recorded an operating surplus of $79.459 million excluding the gain recognised from the VCA integration.
The University of Melbourne General
The University General, comprising the teaching and research activities only, recorded a surplus of $70.262 million, which was used to
partly fund items of capital expenditure with the balance of capital funding being provided from University reserves. During the year the
University General spent $90.917 million on Land and Buildings, $29.276 million on Equipment and Motor Vehicles and $12.288 million on
Library Purchases.
Trust Funds
The University’s activities are supported by funds from endowments, bequests and the income earned on these funds. A substantial
portion of these Trust Funds is held to provide scholarships and to fund specific purposes. These funds generally are not available to meet
the normal operating cost of the University. Income received during the year included $28.565 million earned from investments. Total
assets of the Trust Funds amounted to $515.754 million as at 31 December 2007.
AuxilIARy Operations
The following operations encompass activities related to the University which are managed as business operations. The operating deficit
for the year of $0.029 million is represented by:
Auxiliary Operations
Surplus/(Deficit)
$’000
Child Care Services (81)
Halls of Residence
- International House (242)
- Kendall Hall 52
- Medley Hall -
Melbourne Theatre Company 175
Melbourne University Bookshop 604
Sport and Physical Recreation Centre (260)
The Ian Potter Museum of Art 234
Veterinary Clinic and Hospital (511)
(29)
The University of Melbourne Annual Report 2007 91