annual report/2006 - University of Melbourne

growing in the esteem of 

future generations 

annual report/2006

Growing Esteem/ 

In December 2005 Council approved a new strategic direction for the University 

– Growing Esteem. While affirming the aspiration to be one of the finest 

universities in the world, the new strategic direction sets three priorities for 

the University – research and research training, learning and teaching and 

knowledge transfer. The University adopted the metaphor of a triple helix, an 

image intended to capture the three strands of the Growing Esteem strategy 

intertwined, each reinforcing the others. 

Introducing the Melbourne Model 

Central to the Growing Esteem strategy is the introduction 

of the `Melbourne Model’, a pioneering model in Australia 

and the most significant change to the University’s 

curriculum in its 154-year history. Over time, professional 

education will move to the postgraduate level, adopting 

a familiar international approach. Graduate professional 

study or research Masters and PhD degrees will follow 

three-year undergraduate degrees which stress both depth 

and breadth – equipping students for lives and careers 

in which knowledge boundaries are more permeable, 

professional practice requires multidisciplinary 

understanding and knowledge is rapidly renewed. 

As the decade-long transfer to this Melbourne Model 

begins in 2008, there will be changes to the student 

profile. Undergraduate numbers will decline modestly, 

allowing a shift to more graduate education, better 

student and staff ratios over time, and an eventual easing 

of overcrowding on campus. 

As a research institution, Melbourne will open new paths 

to scientific understanding, support critical and creative 

endeavour and provide an outstanding research training 

experience for future leaders in academia, government 

and industry. 

Melbourne will continue to support a comprehensive 

array of disciplines, while also directing additional funding 

towards disciplines of strategic importance in which the 

University is currently or potentially a world-leader. 

The third strand of the helix, knowledge transfer, 

articulates the goal of dynamic exchange and partnerships 

with the broader community. As a public institution, 

the University must ensure that core research and 

teaching activities contribute to, and absorb lessons 

from communities beyond campus boundaries. 

Provision of higher education is now an international 

enterprise. The University of Melbourne has been 

fortunate in finding an early audience for Australian 

higher education, but must assume the global race 

will get tougher. New competitors are opening in its 

traditional markets.

Melbourne has set itself the difficult task 

of providing the best undergraduate and 

graduate education in Australia. 

“ 

” 

In this setting, Melbourne has set itself the difficult task 

of providing the best undergraduate and graduate 

education in Australia, underpinned by brilliant research 

and a sustained exchange of knowledge. 

2006 – The Year of Detail 

Key processes to implement Growing Esteem began 

early in 2006, with fundamental reviews of learning 

and teaching, research and research training and 

knowledge transfer. 

Asked to think from first principles about the curricula to 

be offered by the University, the Curriculum Commission 

delivered a 10-year Transition Plan adopted unanimously 

by Academic Board in September. The Plan details the 

actions required to produce undergraduate education 

equivalent to the best anywhere in the world. It 

recommends that the Melbourne Model comprise six 

new generation undergraduate degrees, and proposes 

prerequisites, core principles and pathways to professional 

graduate programs and research. 

Meanwhile, a Research and Research Training Quality 

Taskforce was busy testing research performance against 

aspiration. Growing Esteem calls for the University to 

invest more in areas of strong performance and potential, 

where there is scope for significant contribution and 

the greatest impact. Data from the 2005 AUQA audit, 

competitive grant outcomes, world rankings and an 

independent review commissioned from the Melbourne 

Institute, revealed an overwhelmingly positive picture 

of research at Melbourne. Over 90 percent of the 

University’s departments were found to be in the top 

three in Australia and, of those, more than half were 

first in the nation. Important recommendations from 

the Taskforce will help to strengthen further Melbourne’s 

research profile as the University prepares to face 

the Commonwealth’s Research Quality Framework 

assessment in 2007. 

Throughout 2006 the Knowledge Transfer Taskforce 

worked to develop a uniquely University of Melbourne 

definition and framework for knowledge transfer. Taskforce 

recommendations, endorsed by Council in December, 

emphasise the need to develop intellectual capital through 

a ‘two-way mutually beneficial interaction between the 

University and the community sectors, with direct links 

to teaching and research, informed by social and global 

issues’. Knowledge transfer is not just a future aspiration 

but a current practice: the Taskforce collected some 366 

examples of existing projects across the campus, detailing 

interaction with more than 1,200 community, industry 

and government partners. 

To support the Growing Esteem changes, a Policy and 

Advocacy Taskforce identified key public policy changes 

required to ensure the widest possible access and 

support for students under the new Melbourne Model. 

The University has won government support for the 

transfer of some of its Commonwealth Supported 

Places to graduate study and continues to advocate 

the extension of Austudy and Youth Allowance to 

postgraduate degree students. 

In each of the three stands of the Growing Esteem triple 

helix, international engagement continues to be a driving 

force. In 2006 the University took a more systematic 

approach to governance of its international agenda, with 

overall responsibility for strategic and policy direction 

for international activities now residing with the newly 

created position of Deputy Vice-Chancellor (DVC) 

(International). An International Plan was adopted by 

Council in December. 

Towards 2007 – The Year of Transition 

If 2006 was the year of detail, the months ahead offer the 

crucial process of transition – of finalising new generation 

curricula, developing graduate programs and schools, 

expanding the range of scholarships and entry pathways 

to enable wider access to these programs, building 

new support services and facilities, and showcasing the 

Melbourne Model for the wider community. 

The goal is unprecedented in Australia – significant 

restructuring to anticipate the future while already one 

of Australia’s leading universities. It will take quite some 

time to see the results, as a ‘new’ University of Melbourne 

emerges, familiar in goals but fresh in approach. This 

is an important moment in the long journey of the 

University, a period of change to pursue an enduring 

goal – to build a University which grows in the esteem 

of future generations. 

Professor Glyn Davis AC 

Vice-Chancellor

Quick Index 

p12 

Quality People 

p34 

Knowledge Transfer 

p16 

Research and Research Training 

p42 

International Engagement 

p26 

Learning and Teaching 

p48 

Binding the Strands Together 

Contents 

Chancellor’s Letter 01 

Council 02 

Senior Officers 03 

Highlights 04 

Introduction and Overview 06 

Quality People 12 

Research and Research Training 16 

Learning and Teaching 26 

Knowledge Transfer 34 

International Engagement 42 

Binding the Strands Together 48 

University Governance and Statutory Reporting 62 

Our Objectives 63 

The University and its Controlled Entities 65 

2006 Council Members’ Attendance at Council 66 

Audit and Risk Committee 66 

Principal Council Committees and 

Academic and University Committees 67 

Faculties, Departments and Schools 68 

Statutory Reporting 69 

Environmental Sustainability: 

The University’s Position 69 

Freedom of Information 70 

Whistleblower’s Protection Act 2001 71 

Complaints made to and investigated 

by the Ombudsman 72 

lift 

Statement on the University’s Risk Management Strategy 72 

– University Controlled Entities 74 

– University Business Operations 75 

– External Investments 76 

Statement on Occupational Health 

and Safety Matters 77 

Occupational Health and Safety Performance 79 

Summary of Regulations 80 

National Competition Policy and Competitive 

Neutrality Requirements 80 

Compliance with the Educational Services for 

Overseas Students Act (ESOS Act) 2000 80 

Conformity with the Building Act 1993 81 

Statement Concerning Compulsory Non-Academic 

Fees, Subscriptions and Charges 82 

Further Information 85 

Financials 86-153 

Five Year Financial Summary 89 

Financial Statements Contents 91 

Statement by University Officers 154 

Auditor General’s Report 155 

Compliance Index to Disclosure 

Requirements 2006 157 

Useful Websites 160 

‡ 

Our Cover 

Christina Giavris is studying 

for a Bachelor of Commerce 

degree within the Faculty 

of Economics and Commerce

Letter to the Minister 

The Hon Jacinta Allan MP 

Minister for Skills, Education Services and Employment 

Level 1, 2 Treasury Place 

East Melbourne VIC 3002 

26 March 2007 

Dear Minister, 

In accordance with the requirements of regulations under the 

Financial Management Act 1994, it gives me great pleasure 

to submit for your information and presentation to Parliament 

the Annual Report of the University of Melbourne for the 

year ending 31 December 2006. The report was approved 

by the University of Melbourne Council at its meeting on 

26 March 2007. 

Planning for the implementation of the many elements of 

our strategy Growing Esteem proceeded with the active 

involvement of large numbers of staff, students and alumni. 

The Melbourne Model, which embodies our new approach to 

teaching, research and knowledge transfer, is of fundamental 

long-term importance and has been well received by present 

and past students, staff and community leaders. 

Implementation of the amalgamation with the VCA has gone 

smoothly and the VCA became a faculty of the University on 

1 January 2007. A restructure of the Faculty of Arts into a 

more focussed group of schools rather than departments also 

took effect at the same time. 

The financial results for the year were satisfactory, and the 

high international standing of the University was affirmed by 

a number of independent assessments. 

In my view the Council worked hard and effectively and I wish 

to express my gratitude to the members of Council for the 

very effective contribution they have made to the University. 

Yours sincerely, 

Mr Ian Renard 

Chancellor 

The University of Melbourne Annual Report 2006

council/ 

Council membership 2006 

Ex-Officio Members: 

Chancellor 

MR IAN ANDREW RENARD 

BA Melb LLM Melb 

Appointed to Council 1 January 1994. 

Re-appointed 1 January 2004. 

Elected Chancellor 1 January 2005. 

Vice-Chancellor 

PROFESSOR GLYN CONRAD DAVIS 

AC BA NSW PhD ANU FASSA FIPAA 

Appointed 10 January 2005. 

President of the Academic Board 

PROFESSOR LOANE SKENE 

LLB Melb LLM Monash 

Appointed 1 August 2004. 

One person appointed by the 

Minister for Education: 

Term expiring 31 December 2006 – 

MR GRANT HEHIR 

Appointed 9 February 2004. 

Six persons appointed by the 

Governor-in-Council: 

Term expiring 31 December 2008 – 

MS MELANIE SLOSS 

SC B Juris LLB WA LLM Syd 

Appointed 29 March 2006. 


DR MEREDITH DOIG 

BA MEd Stud Monash PhD RMIT 

Dip Ed Melb Grad Dip Mgt RMIT 

Appointed 23 October 2001. 

Re-appointed 3 February 2004. 

MR EVAN WILLIAM THORNLEY 

BCom LLB Melb (previously a student 

member from 1987 to 1991) 

Appointed 3 February 2004. 


MS ELIZABETH ALEXANDER 

AM BCom Melb FAICD FCA FCPA 



JUDGE IRENE ELIZABETH LAWSON 

LLB Melb 


Re-appointed 16 February 2005. 

MR PAUL ANTHONY BRIGGS OAM 

Appointed 10 May 2005. 

Six persons appointed by the Council: 


PROFESSOR ARTHUR K C LI 

GBS; BA(Cantab); MA(Cantab); MB BChir(Cantab) 

MD(Cantab); HonDSc(Hull); HonDLitt(HKUST); 

HonDoc(Soka); HonLLD(CUHK); FRCS; FRCSEd; 

FRACS; FCSHK; FHKAM(Surgery); HonFPCS; 

HonFRCSGlas; HonFRSM; HonFRCSI; HonFACS; 

HonFRCP(Lon); JP; Emeritus Professor of Surgery. 

Appointed 6 June 2005. 

DR BERNARD HENDRIK LOCHTENBERG 

BEng (Hons) WA DPhil Oxf FTSE 




THE HON JUSTICE ALEX CHERNOV 

BCom LLB (Hons) Melb 



MS ROSA STORELLI 

BEd Adel CAE Grad Dip Student Welfare Hawthorn 

MEduc Studies Monash MACE FACEA AFAIM 




THE HON MR DAVID RONALD WHITE 

BCom BA MBA Melb FCPA 

Appointed 1 March 2000. 


MS EDA NATALIE SANDFORD RITCHIE 

GradDipBus Monash AMusA 

Appointed 13 September 2004. 

Three persons elected by, and from, 

the staff of the University: 

Professors: 


PROFESSOR MARK ADRIAN ELGAR 

BSc Griff PhD Camb 

Elected 1 January 2006. 

Academic Staff, other than Professors: 


ASSOCIATE PROFESSOR 

LESLIE JOHN ALLEN 

MSc P.Elizabeth PhD S.Af. 

Elected 21 September 2005. 

General Staff Members: 


MR TIMOTHY LYLE ANNING 

BSc Melb 

Elected 1 March 1995. 

Re-elected 1 January 2005. 

Two persons elected by, and from, the 

students enrolled at the University: 


MS LYDIA OOI 

BSc Well PostgradDipEd Mon 

PostgradCertSpEd Deakin MEd Melb 

Elected 11 August 2005. 

MR PAUL ERICKSON 

Elected 1 January 2006. 

 


senior officers/ 

President, Academic Board & 

Pro Vice-Chancellor 

Professor Loane Skene 

LLB Melb LLM Monash 

Pro Vice-Chancellor (Academic) 

Professor Philippa Pattison 

BSc PhD Melb FASSA 

COUNCIL 

Vice - Chancellor & Principal 

Professor Glyn Davis 

AC BA NSW PhD ANU 

University Secretary 

Mr Lennard Currie 

BA (Hons) Melb DipEd Melb 

Deans 

Architecture, Building and Planning 

Economics and Commerce 

Education 

Engineering 

Graduate Studies 

Land and Food Resources 

Law 

Medicine, Dentistry and Health 

Sciences 

Music 

Science 

Veterinary Science 

Faculty General Managers 

Deputy Vice- 

Chancellor 

(Academic) 

Professor 

Peter McPhee 

BA (Hons) DipEd MA 

PhD Melb FAHA 

Pro Vice- 

Chancellor, 

Teaching, Learning 

& Equity 

Associate Professor 

Susan Elliott 

MB BS Melb MD 

Melb FRACP 

Deputy Vice- 

Chancellor 

(Research) 


John McKenzie 

BSC PhD La Trobe FAA 

Pro Vice- 

Chancellor, 

Research & 

Research 

Training 


Barbara Evans 

BSc PhD Dip 

PhEd TSTC 

Pro Vice- 

Chancellor, 

Research 

Professor Joy 

Damousi 

BA La Trobe 

PhD ANU 

FAHA FASSA 

Deputy Vice- 

Chancellor 

(Innovation & 

Development) 

Professor Vijoleta 

Braach-Maksvytis 

BSc NSW PhD Syd 

Pro Vice-Chancellor, 

University Relations 

Professor Warren 

Bebbington 

MA Queens MMUS 

MPhil PhD CUNY 

Vice-Chancellor and Principal 

The Vice-Chancellor and Principal, as Chief Executive Officer of the University, exercises general 

superintendence over the education and administrative affairs of the University. 

Deputy Vice-Chancellors, Pro Vice-Chancellors 

Deputy Vice-Chancellors and Pro Vice-Chancellors exercise a general superintendence with the 

particular areas of the University's affairs indicated by their titles. 

The elected President and Vice-President of Academic Board are also as Pro Vice-Chancellors to 

perform duties in relation to the academic affairs of the University. 

Vice-Principals and University Secretary 

The Vice-Principals and the University Secretary have responsibilities for particular areas of the 

administrative services of the University indicated by their titles. Their duties are performed in 

coordination, under the general direction of the Senior Vice-Principal. 

Deans 

The Deans are responsible for particular academic divisions of the University. 

Deputy Vice- 

Chancellor 

(International) 


Francis Larkins 

AM BEd DSC Melb 

DPhil DipAdvMath Oxf 

FAA FRCI FAIE FAIP 

Senior Vice-Principal 

Mr Ian Marshman 

BA (Hons) Melb LLB ANU 

Vice-Principal & 

Academic Registrar 

Ms Gillian Luck 

Bus USQ M PuPol Griff DipComp 

Dir AICDA 

Vice-Principal & Chief 

Financial Officer 

Mr David Percival 

BEc Adel MBA Adel FCPA FCIS FAICD 

Vice-Principal & General Counsel 

Mr Christopher Penman 

LLB Syd LLM Lond GDipNatRes Melb 

Vice-Principal, Human Resources 

Ms Elisabeth Baré 

BA Melb DipLib NSW GDipBus 

Admin Swinburne 

Vice-Principal, Information 

Ms Linda O'Brien 

BEd Syd MPA Canberra 

Vice-Principal, Property & Buildings 

Mr Russell Elliot 

BSc Melb Med Melb 

Vice-Principal (Commercialisation) 

Allan Tait 

Vice-Principal 

(International Development) 

Bruce Bayley 

BE Melb MBA Melb 

Vice-Principal (Marketing and 

Communications) 

Patrick Freeland-Small 

BA Monash GDipAppPsych Monash 

Vice-Principal (Research) 

Dr Glenn Swafford 

BA Ell MPolLaw La Trobe PhD Flin. MACE 


highlights/ 

 

quality people/ 

• The quality of student intake remained very high with a median ENTER 

score of 94.30. 13 

• The quality of University staff is recognised through prestigious awards and 

the election of 11 staff as fellows of learned societies. 14 

• Staff receive recognition for excellence in teaching through Carrick Citations 

and Awards. 13 

 

research and 

research training/ 

• Since 1996 Melbourne has ranked first or second on national research 

indicators of total research income, research publications, RHD student load 

and completions. 19,21 

• Melbourne recorded the largest number of research higher degree 

enrolments and completions nationally with continued improvement in the 

completion rate. 23 

• Assessments of all faculties and departments placed more than 90 percent 

of academic units in the top three in Australia, with around half ranked as 

number 1. 19 

• Seven internationally outstanding researchers were awarded Federation 

Fellowships at the University. 13 

• Australia’s largest biopharmaceutical company, CSL, entered into an 

innovation partnership providing for 50 of its scientists to relocate to 

the University’s Bio21 Institute. 41 

• The University joined an elite international group of universities teaching 

Veterinary Science after winning accreditation by the American Veterinary 

Medicine Association. 46 

learning 

and teaching/ 

• The Melbourne Model was adopted, providing for three year undergraduate 

degrees, followed by a professional or research masters degree, and the 

option of a PhD. Core principles for the Melbourne Model degrees were 

established. 28 

• Six new Melbourne Model undergraduate degrees in Arts, Biomedicine, 

Commerce, Environments, Music and Science will be offered from 2008. 

Graduate degrees will be phased in from 2008. 28 

• Melbourne achieved a top ranking and the highest grant of $8.9m in the 

Commonwealth Learning and Teaching Performance Fund. 28 

• Staff received an exceptional nine Carrick citations for Outstanding 

Contribution to Student Learning and two Carrick Awards for Australian 

University Teaching. 30,13 

• Design and development of collaborative learning spaces and multi-purpose 

student learning hubs is underway to enhance student experience. 33,55 

 


highlights/ 

knowledge 

transfer/ 

• A framework for the University’s knowledge transfer activities was developed, 

with initiatives underway to ensure that knowledge transfer activities are 

embedded in all aspects of University life. 36,37 

• A more focussed alumni program was introduced with targeted events, new 

publications and an upgraded database tripling increase in alumni contacts. 38,57 

• An extensive program of well-attended events included lectures, open days, 

collection exhibitions and concerts. 39,40 

• A new Commercialisation Strategy established objectives, policies 

and initiatives. 40 

• The University revised its approach to intellectual property. 41 

international 

engagement/ 

• The international standing of the University as judged by the Shanghai 

Jiao Tong University institutional rankings continued to improve with 

a ranking of 78. The University was ranked No 22 in the world by the Times 

Higher Education Supplement Study 2006. 43 

• The University was admitted as a member of the Association of Pacific Rim 

Universities. Membership is based on academic excellence, research 

intensity, global outlook and innovation. 46 

• International student load increased, with international student numbers 

exceeding 10, 000 and representing 25.9 percent of student load. 44 

• The Confucius Institute was established with support from both the Victorian 

and Chinese governments. It is part of a global network facilitating the 

teaching of the Chinese language and culture. 46 

binding the 

strands together/ 

• Standard and Poor’s Rating Services affirmed the University’s AA+ 

credit rating. 8 

• Consolidated income of $1.28 billion was up by 5.8 percent on 2005. 59 

• The University developed an Advancement Plan detailing strategies for a 

major, campus-wide fundraising campaign. Total donations to the University’s 

Annual Appeal increased significantly, with the number of donors doubling 

and amount raised trebling. 57 

• The new $125 million Economics and Commerce Building project has been 

tendered, with completion due December 2008. 55 

• Major information technology advances were achieved with development of 

an e-research strategy, a web research portal, expanded digital repositories 

for scholarly output, and a ‘one-stop shop’ student portal. 56,30 

• A replacement student system has been approved for implementation by 2008. 61 


More than 50,000 prospective students 

and their families visited the University’s 

Parkville campus on Open Day, with 

many attending special presentations 

explaining the Melbourne Model. 

introduction 

and overview/ 

2006 has been the year of detail in the 

implementation of Growing Esteem. 

 


“ 

Melbourne has a great educational vision, 

closely integrated with bold aspirations 

in research and knowledge transfer. 

” 


Glyn Davis AC 


2006 – the Year of Detail 

One year ago the University of 

Melbourne affirmed its aspiration to 

be one of the finest universities in the 

world through a strategy called Growing 

Esteem. Along with great scholarship 

and research, Melbourne embraced 

‘knowledge transfer’, the idea of a 

continuous exchange of knowledge 

between the University and the many 

communities of which it is part. 

2006 has been the ‘Year of Detail’ in the 


Dedicated review bodies focussed 

on curriculum, research and research 

training and knowledge transfer, working 

from first principles to establish the way 

forward for each of the three strands of 

the strategy. 


In Learning and Teaching the focus has 

been on curriculum reform to create 

the Melbourne Model. Under the new 

model, the University will offer six 

three-year undergraduate degrees in 

the humanities, social sciences and 

sciences characterised by both depth 

and breadth, followed by a professional 

or research Masters degree, and the 

option of a PhD program. The new 

generation undergraduate degrees 

will be introduced in 2008, with the 

last courses shifting to the Melbourne 

Model in 2011 – though it will be 2016 

before only new generation degrees 

are taught. 

Achieving integration and consistency 

of degrees across faculties requires 

a fresh approach to administration 

of undergraduate degrees. Course 

Standing Committees have been 

established for each of the six new 

Melbourne Model undergraduate 

degrees, coordinated by a Board of 

Undergraduate Studies with crossfaculty 

reach. 

Research and 

Research Training 

In Research and Research Training a 

comprehensive audit of research activity 

and staff capabilities has given the 

University accurate information on its 

research profile. Under the Growing 

Esteem strategy Melbourne will invest 

more in areas of strong performance 

and potential, where there is scope for 

significant contribution and the greatest 

impact. With a detailed picture of 

research by discipline and department, 

the University is well-placed to 

strengthen its research profile ahead 

of the Federal Government’s Research 

Quality Framework (RQF) exercise 

in 2007. 


While many examples of knowledge 

transfer already exist at Melbourne 

many of them are not recognised 

as such. During 2006 the University 

worked to develop a definition and 

framework for knowledge transfer, 

ensuring that the concept was widely 

understood inside and outside the 

University. Measures have been 

introduced to embed knowledge 

transfer as an integral part of staff 

activity and the student learning 

experience at both undergraduate and 

postgraduate level. 

Melbourne Model 

Implementation 

Meanwhile, University Administration 

has progressed development of a 

system of shared services which will be 

essential once degrees span faculties. 

Moving from 96 specialist degrees 

to six new generalist degrees has 

far-reaching consequences for every 

faculty, division, department, service 

and work unit. With the assistance of 

a Workplace Productivity Grant from 

the Department of Education Science 

and Training, the Boston Consulting 

Group has been employed to assist in 

developing a critical path for Melbourne 

Model implementation and in creating 

a student-centred administration which 

will support the Melbourne Experience 

for all students. 

Expanded Advancement Office 

Generous philanthropic support for 

a strong endowment will help the 

University achieve its aims. During 

the year, an expanded University 

Advancement Office has worked to 

ensure that the goals of Growing 

Esteem will be supported by fundraising 

activities, improved alumni relations, 

and other philanthropic activities to 

finance undergraduate and postgraduate 

scholarships. Results from the 

restructured Annual Appeal exceeded all 

expectations with the number of donors 

more than doubling in 2006 and the 

amount raised trebling. 

It is testament to the commitment and 

professionalism of the University’s staff 

that implementation of Growing Esteem 

has not detracted from the University’s 

performance as a leading Australian 

University in 2006. 

Rankings 

Internationally, the University’s standing 

was affirmed during the year when it 

was ranked at No 22 in the world by the 

Times Higher Education Supplement. 

Melbourne’s international research 

pre-eminence was also acknowledged 

with a top 100 ranking in the Shanghai 

Jiao Tong rankings. Ranked No 78 

in 2006, the University has climbed 

steadily in the rankings since first 

appearing at No 92 in 2003. 

Within Australia, Melbourne’s position 

is secure as the leading teaching and 

research University. 

The strength of Melbourne’s 

learning and teaching programs 

was acknowledged and rewarded 

with a top ranking and the 

largest grant of $8.9 million in 

the Commonwealth Learning and 

Teaching Performance Fund. 

Since 1996 the University has been 

placed first or second in the national 

rankings in all key research parameters 

used to allocate Commonwealth 

Government funding. Melbourne remains 

one of Australia’s largest universities 

in terms of both research income and 

expenditure. 


Bio21 Institute 

Our support of world-class 

multidisciplinary research continues to 

increase. Now almost fully operational, 

the visionary Bio21 Molecular Science 

and Biotechnology Institute brings 

together over 400 scientists from 

the University, biomedical research 

institutes and industry. In 2006 

Australia’s largest biopharmaceutical 

company, CSL Limited, agreed to 

relocate up to 50 scientists to the 

Institute under a research innovation 

partnership with the University. 

During the year a high-level working 

group set priorities for future crossdisciplinary 

research at the University, 

to be boosted by funding from a newly 

established Future Generation Fund. 

Outstanding 

Undergraduate Intake 

In 2006 Melbourne again experienced 

high demand for its undergraduate 

places from outstanding students, 

resulting in a median ENTER score 

for Victorian school leavers of 94.30, 

5.45 points higher than the closest 

Victorian university. 

Under the guidance of the Melbourne 

Experience Committee, plans for 

development of new types of learning 

spaces throughout the University 

are well under way. A prototype of a 

new collaborative learning classroom 

located in the Chemistry building was 

completed in 2006 featuring advanced 

information technology, audiovisual 

equipment and virtual laboratories. 

Sites for multi-purpose ‘learning hubs’ 

have been identified, a schedule for 

future development prepared and 

concept design for the first ‘Eastern 

Learning Hub’ approved. By combining 

resource centres, learning spaces and 

recreational areas in the one precinct, 

these hubs will promote an inclusive 

academic environment with increased 

opportunity for peer interaction. 

In a significant development expected to 

make day to day life easier for students, 

an online ‘one-stop shop’ student portal 

system was developed during 2006. 

Students will be able to access email, 

timetables, online teaching and learning 

tools, academic advice and programs, 

library accounts and other essential 

University services through the portal. 

Public Funding 

The University’s consolidated income 

of $1.28 billion in 2006 was up by 

5.8 percent on 2005, due largely to 

continuing growth of fee-revenue 

and research and investment income. 

Commonwealth funding now represents 

only 40 percent of the University’s 

total income. 

Overall, Melbourne has been successful 

in achieving a 13.3 percent increase in 

unit-of-resource funding since 2003. 

The University’s financial strength has 

been confirmed by the continuation 

of its Standard and Poor’s credit-rating 

at AA+, the highest rating available to 

an Australian university. 

Global Opportunities 

Melbourne strengthened its engagement 

with the international community during 

2006 under the leadership of the newly 

created position of Deputy Vice-Chancellor 

(International). The University participates 

in global opportunities and the sharing 

of knowledge in many ways – through 

Universitas 21, international partnerships 

and some 80 bilateral agreements with 

universities around the world. 

The Melbourne Community Gamelan, a set of bronze gongs and xylophones at the University, originating 

from central Java, are used for teaching music students and by Indonesian music enthusiasts from the 

community for public performances. Bachelor of Music student Lam Lut Hei is pictured on gongs with 

gamelan master Ki Poedijono and Dean of Music, Associate Professor Cathy Falk. 

 


introduction 

and overview/ 

Five-Year Key Statistics 

Category 2002 2003 2004 2005 2006 

Median Enters (Victorian School Leaver) 95.0 94.8 94.8 94.5 94.3 

Student Enrolments (EFTSL) (August) 

Total Load (EFTSL) 31,912 32,870 33,612 34,008 33,856 

Research Higher Degree 2,785 2,925 3,160 3,159 3,062 

Postgraduate Coursework 4,555 4,882.3 5,324 5,263 5,534 

Undergraduate 24,572 25,063 25,129 25,585 25,259 

% Female Enrolment 56.1% 56.7% 56.6% 56.5% 56.0% 

International Load (EFTSL) 6,701.1 7,619 8,021 8,335.4 8,752 

% International 21.0% 23.2% 23.9% 24.5% 25.9% 

Award Completions 

Research Higher Degree 663 694 734 750 747 (prelim) 

PG Coursework 3,417 3,736 4,045 3,968 4,068 

Undergraduate 7,174 7,902 7,809 8,133 8,052 

Total 11,254 12,332 12,588 12,851 12,852 

Staff (FTE) (March, including casuals 

& excluding TAFE) 

Academic (All) 2,672 2,829 2,971 3,168 3,283 

General (All) 3,016 3,164 3,330 3,517 3,667 

Total 5,688 5,993 6,301 6,685 6,950 

Student: Staff Ratio (August) 

T&R Faculty Staff 18 17.9 17.7 16.2 16.3 

All Academic Staff 12.1 11.7 11.4 10.8 10.4 

Research Expenditure ($ million) 363 408 (est) 429 469 (est) 499 (est) 

Research Performance Indicators 

Research Income ($ million) 158.8(1) 198.7(1) 208.3(1) 254.4(1) 279.7 (est) 

Research Publications 2,855(1) 2,857(1) 3,299(2) 3,878(1) 3,936 (est) 

Research Load (EFTSL) 2,785(1) 2,925(1) 3,160(1) 3,158(1) 3,231 (est) 

Research Completions (eligible) * 663(1) 694(1) 724(1) 750(1) 747 (prelim) 

Numbers in brackets are Melbourne’s national rank, based on the proportion of the national total for each category 

* Eligible completions means part of RTS formula, excludes Higher Doctorates by publication. 

Financial Data ($million) 

Consolidated Income 954.5 1,006.6 1,166.3 1,211.9 1,282.6 

Consolidated Expenditure 885.9 944.3 1,072.8 1,134.9 1,192.6 

Operating Result before Income Tax 68.6 62.3 93.5 77.0 90.0 

Operating Result after Income Tax 66.5 64.4 93.4 77.0 90.0 

Sources of Income (%) 

Australian Government Recurrent 

Financial Assistance 24.6 24.1 22.7 22.6 23.5 

Other Australian Government Financial 

Assistance ** 12.3 15.2 15.1 16.7 16.8 

HECS-HELP 9.2 8.8 7.7 7.9 7.9 

State Government Financial Assistance 5.4 3.3 3.2 3.2 3.7 

Investments, Fees and Charges 42.5 41.7 45.4 43.7 42.3 

Grants, Donations and Bequests 6.0 6.9 5.9 5.9 5.8 

Total 100.0 100.0 100.0 100.0 100.0 

** Includes FEE-HELP (formerly Post Graduate Loans Scheme). # See Note p 89. 


10 

Professor David Boger demonstrating a Boger fluid – a class of fluids named after him in 

recognition of his work in defining their novel properties. Professor Boger’s research has had 

a significant impact on the petroleum, food, polymer and minerals industries. 

The University’s international network 

was further extended in 2006 with 

its admission to membership of the 

Association of Pacific Rim Universities, 

a group that includes UC Berkeley, 

Stanford and other famous institutions. 

Pushing against the national trend 

of declining international student 

enrolments, the University was once 

again successful in attracting a large 

number of students from overseas. 

Of the 44,000 students enrolled at the 

University, over 10,000 (25.9 percent 

of the student cohort) are international 

students from more than 100 countries. 

The University of Melbourne Annual Report 2006 

These are exciting times for the 

University. Melbourne has a great 

educational vision, closely integrated 

with bold aspirations in research and 

knowledge transfer. The change to 

the Melbourne Model is not however 

without risk. It represents a major 

shift in curriculum and educational 

philosophy. The transformation of the 

University may see a fall in demand 

as the market adjusts to the ending 

of undergraduate double degrees and 

a changed student profile. It may take 

some years for the University to regain 

its current market position and standing. 

But once the change is complete, 

Melbourne will be the leading university 

in Australia with a strong graduate 

school profile, and be well positioned 

for the coming decades to compete 

for students from Asia, Europe and 

the Americas. 

The Finest Undergraduate 

Education in Australia by 2011 

By 2011 Melbourne will be offering 

the finest undergraduate education in 

Australia. Coherent and well-crafted 

courses with depth and breadth will 

offer majors allowing immersion 

in a discipline and University-wide 

subjects creating a number of common 

conversations across undergraduate 

degrees. Student load will be a stable 

population of around 40,000 students, 

moving towards a balance of half-andhalf 

undergraduate and postgraduate 

coursework and research students. 

By 2011 information technology systems 

will be integrated to produce seamless 

interaction across the University. 

Administrative resources will serve, 

effectively and efficiently, the needs of 

students and staff. The University will 

be part-way through implementing a 

10-15 year plan for upgrading physical 

infrastructure with new building stock 

and renewal of existing facilities. 

Undergraduate students will have 

access to more innovative new learning 

spaces and student-centric services 

built around their needs, both on the 

web and in person, through new ‘onestop-shop’ 

centres for administrative 

support. Responding to student demand, 

academic programs will make more 

flexible use of the 12-month calendar. 

By 2011 many students will stay on for 

a graduate education, taught with the 

rigour and to an intensive timetable 

appropriate for training the best and 

the brightest. Professional graduate 

schools will be well-established across 

the University, building their own 

international reputations, drawing 

students from Melbourne’s own 

graduates, from other Australian 

universities, and from the region. 

Renowned for the quality and 

distinctiveness of its programs, 

Melbourne will have consolidated

introduction 

and overview/ 

its position as Australia’s pre-eminent 

learning and teaching institution, 

a clear acknowledgement of the 

enormous depth and breadth in the 

performance of its teaching staff and 

the great pleasure they take in engaging 

with high-quality undergraduate and 

postgraduate students. 

In 2011 Melbourne will still be the 

strongest research university in 

Australia, capacity and outreach 

enhanced by two or three new institutes 

in emerging areas of cross-disciplinary 

Melbourne strengths – areas such 

as material sciences, sustainability, 

immunology, Middle Eastern and 

Asian interaction. 

We will know we are on track in 2011 

if we have maintained our national 

leadership on research higher degree 

completion, load and research training 

scheme funding, and if we are the 

University of choice for the brightest 

local and international research higher 

degree candidates. 

By 2011 knowledge transfer will be 

a familiar part of all the University’s 

work. Students will expect to be 

involved in volunteer work and 

for-credit placements, including 

international exchanges. 

This broader involvement will be 

reflected on their transcripts, to produce 

a more complete record of such 

opportunities within and beyond the 

classroom while at Melbourne. 

Melbourne will have built a profile for 

knowledge transfer – and wider public 

engagement – by becoming prominent 

in tackling one or two major national 

or regional issues, with business and 

community support, in a way that only 

the University, with its disciplinary 

strengths, can do. Melbourne will be 

widely seen as a valued leader and 

contributor to high-level thought and 

debate in the community. 

And Melbourne will be more involved in 

the world of industry and business, as 

investment in commercialisation brings 

expanded opportunities for knowledge 

and technical transfer. 

In 2011 philanthropic income will play 

a larger role in University finances, 

reducing reliance on public funding, 

and providing more scholarships for 

students regardless of their financial 

circumstances, more opportunity to 

fund the long-term capital works the 

University needs. 

The foundations for realising this vision 

of the University in 2011 are in place, 

or being set down through decisions to 

be taken in 2007. Each of the elements 

is achievable. 

In 2011, Melbourne will offer a standard 

of education, excellence in research and 

broader engagement consistent with 

this University being one of the finest 

in the world. 

Professor Glyn Davis AC 


In 2011, Melbourne will offer a standard of education, 

excellence in research and broader engagement 

consistent with this University being one of the 

finest in the world. 


11

Director of the University’s Asia Pacific Centre 

for Military Law Professor Tim McCormack and 

research student Ms Sarah Finin have been 

providing key assistance to US Guantanamo Bay 

defence lawyer Major Michael Mori. 

quality 

people/ 

Melbourne continues to attract outstanding 

students and academics from around Australia 

and internationally. 

12 


Table 1. Median undergraduate 

ENTERs, University of Melbourne 

Year 

Median ENTER 

2002 95.0 

2003 94.8 

2004 94.8 

2005 94.5 

2006 94.3 

Table 2. Percentage of Victorian 

school leaver commencing students 

with an ENTER of 99.0 or greater 

Year % with ENTER >99.0 

2002 72.4 

2003 67.4 

2004 69.9 

2005 69.8 

2006 66.9 

Academic and 

Professional Leaders 

Senior staff appointments 

The University welcomed three new 

Deans during the year: 

Professor Belinda Probert from the 

University of Western Australia as 

Dean of Arts; 

Professor Peter Rathjen from the 

University of Adelaide as Dean of 

Science; and 

Professor Richard Roush from the 

University of California as Dean of the 

Faculty of Land and Food Resources. 

In 2005 the University began the 

transition to a new senior executive 

management structure designed to 

provide enhanced academic leadership 

and support in areas of strategic priority. 

Four Vice-Principals were appointed 

to augment administrative leadership 

in 2006. 

Mr Pat Freeland-Small was appointed 

as Vice-Principal (VP) (Marketing and 

Communications), Mr Allan Tait as VP 

(Commercialisation), Mr Bruce Bayley 

as VP (International Development) and 

Dr Glenn Swafford as VP (Research). 

Renowned Scholars 

In 2006 seven internationally 

outstanding researchers, including three 

already at Melbourne, were awarded 

prestigious Federation Fellowships to 

conduct ground-breaking research at 

the University. 

The new Federation Fellows 

for Melbourne are: 

Mathematician Professor Peter Hall 

(ANU), Meteorologist Professor David 

Karoly (University of Oklahoma): 

Indonesian law expert Professor Timothy 

Lindsey (University of Melbourne): 

Mechanical engineer, Dr Ivan Marusic 

(University of Minnesota): Plant 

biologist Professor Geoffrey McFadden 

(University of Melbourne): Physicist 

Professor Keith Nugent (University of 

Melbourne) (Reappointed): Law and 

public health expert Associate Professor 

David Studdert (Harvard University). 

Vice-Chancellor's Fellows: 

Three distinguished public intellectuals 

were named as Vice-Chancellor’s 

Fellows: 

Dr David Kemp (public policy expert); 

Professor Brenton Broadstock 

(composer and musicologist); and 

Max Gillies (satirist and actor). 

The Fellowships allow the holders 

to engage in the public life of the 

University, providing a scholarly 

environment for research, writing, 

teaching and related activities. 

Dr Alice Garner completed her term 

as a Vice-Chancellor’s Fellow, having 

written the manuscript for ‘The Student 

Chronicles’, which was published later 

in the year. 

Quality Students 

The University continued to attract 

outstanding students in 2006. 

Melbourne reinforced its position as 

the university of first choice for highperforming 

Victorian Year 12 students, 

attracting 80 percent of the Victorian 

Premier’s ‘top all round VCE highachievers’ 

for 2006 (2005: 69.7 percent), 

The University attracted 68.8 percent 

of Victorian recipients of the Australian 

Students Prize (76.9 percent in 2005) 

and 8.6 percent of interstate recipients 

(6.8 percent in 2005). The increase in 

interstate numbers indicates Australian 

students are increasingly prepared 

to travel interstate to study in their 

preferred course and university. 

Melbourne saw an increase of 38.2 

percent in enrolment of undergraduate 

Australian fee students. The quality of 

the student intake remained very high 

with a median ENTER of 94.30, 5.45 

points higher than the closest Victorian 

university, though slightly short 

of the targeted 95. The University 

again had the highest proportion 

of enrolments of any institution for 

applicants with an ENTER of 99.00 

or above. 66.9 percent of applicants with 

an ENTER of 99.00 or above enrolled 

at Melbourne, close to the targeted 70 

percent. The nearest Victorian institution 

achieved 28.1 percent. 

The following staff were 

recognised in 2006 for 

excellence in teaching: 

Annual University Awards 

for Teaching Excellence: 

Dr Charles Schencking, Department of 

History/Asia Institute, Faculty of Arts 

Dr Raoul Mulder, Department of 

Zoology, Faculty of Science 

Professor Jeff Borland, Department 

of Economics, Faculty of Economics 

and Commerce 

Carrick Citations for 

Teaching Excellence: 

Associate Professor Philip Batterham 

(Genetics) 

Associate Professor Jamie Evans 

(Electrical and Electronic Engineering) 

Ms Tammie Goates (IT User Services) 

Associate Professor Robert Kemm 

(Physiology) 

Professor Tim Lindsey (Law) 

Dr Kay Margetts (Education) 

Dr Patricia McLean (Equity, Language 

and Learning Programs) 

Professor Alistair Moffat (Computer 

Science and Software Engineering) 

Ms Sandra Uren (Microbiology 

and Immunology) 

Carrick Awards for Australian 

University Teaching: 

Dr Charles Schencking ( History 

and the Asia Institute) – Award in 

the ‘Early Career’ category 

Professor Nilss Olekalns, Associate 

Professor Carol Johnston, Paul Andonov 

and Nahid Khan from the Teaching 

and Learning Unit in the Faculty of 

Economics and Commerce – Award 

for Programs that Enhance Learning 

in the category of ‘Assessment 

and Feedback’ 


13

High-Achieving Staff 

14 

Professor David Solomon, 

Inventor of Plastic Bank Note 

Wins 2006 Victoria Prize 

Eminent scientist and inventor of 

the plastic bank note, Professor David 

Solomon, Honorary Professorial Fellow 

in the Department of Chemical and 

Biomolecular Engineering, was awarded 

the prestigious 2006 Victoria Prize. 

The University was also recognised for 

supporting Professor Solomon’s work, 

receiving the $100,000 Anne and Eric 

Smorgon Memorial Award from the 

Jack and Robert Smorgon Families 

Foundation, which complements the 

Victoria Prize. 

University academics were 

awarded three of the six 

2006 State Government 

Victoria Fellowships: 

• Dr Bryan Fry, Australian Venom 

Research Unit, for finding medical 

cures from Australia’s snakes and 

poisonous creatures; 

• Mr Mohammad Tabbara, Electrical and 

Electronic Engineering, for using next 

generational technology to produce 

safer and cleaner cars; 

• Hadi Lioe, Chemistry, for using mass 

spectrometry to help improve the 

detection of new diseases, biological 

warfare agents and toxic agents. Hadi 

Lioe is also the recipient of the 2006 

AFAS FEAST-France Fellowship. 

Melbourne eye researcher wins 

national award for excellence 

Predicting the risk of heart disease 

through an eye scan won Professor Tien 

Wong the Federal Health Minister’s 

Award for Excellence in Health and 

Medical Research for 2006. 

Urban planning paper wins 

AESOP Prize 

Dr Kate Shaw won the 2006 AESOP 

(Association of European Schools of 

Planning) Prize for the best paper in 

the planning field published in 2005. 


In 2006 many staff won national and international recognition for achievements. 

Nine staff or honoraries were made fellows of learned societies. 

Academy 

2005 Fellows 

Fellow of the 

Australian Academy 

of the Social Sciences 



of Science 



of Humanities 



of Technological 

Sciences and 

Engineering 

Australian history of 

psychoanalysis wins 

Ernest Scott Prize 

Professor Joy Damousi’s book on 

the introduction and progress of 

psychoanalysis in Australia has been 

awarded the 2006 Ernest Scott Prize 

for publications that contribute to the 

history of Australia or New Zealand. 

Professor Arief Budiman receives 

Indonesian award 

Foundation Professor of Indonesian, 

Arief Budiman, won a major Indonesian 

award, the Achmad Bakrie Award, in 

recognition of his contribution to the 

national debate on economics and 

politics. 

Lifetime achievement in 

Alzheimer’s research 

Medical scientist, Professor Colin 

Masters, was presented with a Lifetime 

• Professor Elizabeth Malcolm, Gerry Higgins 

Professor of Irish Studies, Department of History 

• Professor Patrick McGorry, Executive Director, 

ORYGEN Research Centre, and Professor, 

Department of Psychiatry 

• Professor Mark Burgman, Director Australian Centre 

of Excellence for Risk Analysis (ACERA), Professor 

Environmental Science, School of Botany 

• Professor Andrew Holmes, AM, Federation Fellow and 

VESKI Inaugural Fellow, Professor, School of Chemistry 

and Bio21 Institute 

• Professor Roger Powell, Department of Earth Sciences 

• Professor Barbara Creed, 

Professor of Film Studies, Department of Cinema 

• Professor John Griffiths, 

Professor of Music, Faculty of Music 

• Associate Professor David Marshall, Associate Professor 

in Art History, School of Art History, Cinema and Classical 

Archaeology 

• Professor Stephanie Trigg, Professor of English Literature, 

Department of English 

• Dr Calum Drummond, Federation Fellow and Professorial 

Fellow, School of Chemistry and Bio21 Institute 

• Professor Andrew Holmes,AM, Federation Fellow and 

VESKI Inaugural Fellow, Professor, School of Chemistry 

and Bio21 Institute 

Achievement Award in Alzheimer’s 

Disease at the 10th International 

Conference on Alzheimer’s Disease 

in Madrid. 

Melbourne claims four new 

‘young tall poppies’ 

Dr Rachel Caruso (School of Chemistry), 

Dr Rony Duncan (Murdoch Children’s 

Research Institute), Dr Andrew 

Hill (Bio21 Institute) and Dr Shane 

Huntington (School of Physics) were 

named Victorian Young Tall Poppies. 

Woodward Medals awarded to an 

economist and a cosmologist 

The University of Melbourne’s 2006 

Woodward Medals, which honour 

outstanding research in the three years 

prior to presentation, were awarded 

to Professor Joshua Gans, of the 

Melbourne Business School, and 

Dr Stuart Wyithe, School of Physics.


High-Achieving Students 

Rhodes Scholar 

Leng Lee, a University of Melbourne 

Commerce (Hons)/Law graduate has 

been awarded the 2006 Victorian 

Rhodes Scholarship and will commence 

a Doctorate in Economic Geography at 

Oxford University next year. 

Sir John Monash Award 

Science/Law graduate Mr Davis 

Clarke has won a General Sir John 

Monash Award. He will use the highly 

prestigious postgraduate scholarship 

to study for a Masters in Public 

Administration at Harvard University. 

Global leaders 

Jessica Rae(Commerce/Law), 

Georgina Dimopoulos (Media and 

Communications/Law), Ali al Amein 

(Engineering/Science) and Joe Clifford 

(Commerce/Law) are among six 

Australian students named as 2006 

Goldman Sachs Global Leaders. Ms Rae 

and Ms Dimopoulos were also invited to 

attend the Goldman Sachs international 

leadership forum in New York. 

Washington internships 

Clare Ashby (Law) Michael Ng 

(Law) Megan Bainbridge (Arts) 

and Sylvia Gaston (Law/Arts) have 

been awarded prestigious internships 

in Washington DC under the Uni-Capitol 

Washington Program. 

Prize PhDs on Star Trek, 

business, herpes, X-rays 

Work to analyse the mythology behind 

Star Trek, understand business cycles, 

enable more accurate synchrotron 

X-ray studies, and identify a cell that 

fights the herpes simplex virus, won the 

University of Melbourne’s Chancellor’s 

Prize for Excellence in PhD research. 

Recipients of the 2006 awards were 

Dr Djoymi Baker (Humanities and 

Creative Arts), Dr Penny Smith (Social 

Sciences), Dr Martin de Jonge (Science 

and Engineering), and Dr Christopher 

Smith (Medicine, Dentistry and 

Health Sciences). 

Dookie student wins 

2006 National Red Angus 

Youth Award 

Associate Degree in Agriculture 

student, Melissa Spain, won a 2006 

National Red Angus Youth Award, to 

encourage the development of skills, 

knowledge, and networks in the 

Australian Beef Industry. 

Inaugural Dowd Foundation 

Research Scholarship 

PhD student Ryan Mills won one of two 

inaugural Dowd Foundation Research 

Scholarships in Neuroscience. The award 

recognises and supports outstanding 

students who have completed a 

medical, dental, veterinary or science 

degree and have been accepted into 

a PhD (or equivalent) program. 

Creative Writing 

postgraduate’s work wins 

Australia’s top poetry prize 

Creative writing PhD student Dan 

Disney was awarded Australia’s top 

poetry prize – the Broadway Poetry 

Prize 2006 – at the National Poetry 

Festival in Sydney. His winning work, 

which is part of his PhD, has been 

published in The Broadway Poetry 

Prize, 2006 (Picaro Press). 

VCA visual artist receives 

$10,000 tutorship award 

The Victorian College of the Arts (VCA) 

$10,000 KPMG Tutorship Award has 

been presented to Masters student 

Peter Daverington for Algorithmic – a 

painting that conjures up structures and 

aesthetics both of the computer screen 

and of scientific speculations of space 

and time. 

Melbourne music graduates 

give top note performances 

University of Melbourne graduates 

have won two top music performance 

honours. Classical violinist Cameron 

Hill (BMus 2005) received the 2006 

Symphony Australia Young Performer 

of the Year Award. Prominent solo 

pianist, associate artist and chamber 

musician Amir Farid (BMus Hons 2004) 

won first prize in the ANPA 2006 Grand 

Final Concert with second prize going 

to Melbourne graduate, Ke Lin (BCom 

(Hons) and DipMus 2004). 

Scholarship takes student 

to the British Museum 

Kathleen Kiernan was awarded the 

prestigious Harold Wright Scholarship 

to study the Collection of Prints and 

Drawings at the British Museum. Ms 

Kiernan is currently undertaking the 

Masters of Art Curatorship in the School 

of Culture and Communications. 

Dr Djoymi Baker’s thesis ‘Broadcast Space: 

TV Culture,Myth and Star Trek’, won her one 

of the four Chancellor’s Prizes for 

Excellence in the PhD. Dr Baker is pictured 

with Star Trek fans (left to right) Angelo Kene, 

Ben Kimberley and Scott Liston. 


15

Research scientists Dr Una Greferath and Dr Mark 

Murphy with neurobiology PhD student Ms Alison 

Canty shown snap-freezing brain tissues in liquid 

nitrogen in preparation for section analysis. 

research and 


The University’s Growing Esteem Strategy 

has directed a sharper focus in 2006 on 

research priorities, quality and impact. 

16 


The strength of the University’s research 

performance confirms Melbourne’s position as 

“a leading national research university. 

” 


John McKenzie 

Deputy Vice-Chancellor (Research) 

Performance Against 2006 Targets 

Move towards world-significant research 

Target 

Outcome 

Target 

Outcome 

Target 

Outcome 

Target 

Outcome 

Develop reliable information from the first round of research assessments, including strengths and weaknesses. 

Put plans in place to improve where required. 

Assessments have been made for all Faculties/Departments. More than 90 percent of academic units are in 

the top three in Australia, and of those more than half are first. Areas of strengths and weakness for all units 

have been identified. Every Faculty has developed a five-year research/research training improvement plan. 

Begin to see increased research impact, including increased citation rates. 

Mechanisms for increasing research impact and citation rates include a whole of university activity where staff 

identified their top publications for quality and impact, activities relating to the implementation of the RQF, 

workshops and budget incentive. 

Increase research funding, particularly from overseas, and diversify sources of funding. 

Research funding has increased from $208 million to $254 million. A Taskforce has been established to 

investigate measures to improve business investment in University research. An International Grants Officer 

has been appointed to assist in the generation of funds from international sources. 

Each Faculty is to have in place a five-year target and interim targets for increasing research funding. 

Each Faculty has identified annual targets for an overall five-year plan to ensure performance is on track. 

Strengthen cross-disciplinary and collaborative research 

Target 

Outcome 

Identify priority areas for cross-disciplinary investment and launch the Future Generation research campaign. 

The Research and Research Training Quality Taskforce has recommended five areas for priority internal research 

expenditure from the Strategic Research Initiatives Fund amounting to $12.5 million over three years. Three 

further areas that may require further significant research investment have also been identified. Guidelines for 

the Future Generation research campaign have been established and the selection process has begun. 

Build future research capacity 

Target Achieve satisfaction levels of research students in the QRF are at least 4.0. 

Outcome An overall satisfaction score of 4.0 was obtained in the QRF. 

Target Increase Research Higher Degree completion rates by 10 percent. 

Outcome An increase of 10 percent in research higher degree completion rates has been achieved. 

Target Put in place measures to address barriers to progression for women and staff in other equity groups. 

Outcome Research opportunities have been included in the Staff Equity and Diversity Framework. 


17

Research and 


The University’s Growing Esteem 

strategy has directed a sharper focus 

in 2006 on research priorities, quality 

and impact. Meanwhile, the strength of 

the University’s research performance 

confirms Melbourne’s position as a 

leading national research university. 

Internationally, the University’s research 

standing as judged by the Shanghai 

Jiao Tong University institutional 

rankings has continued to improve with 

a ranking of 78 for 2006, compared 

with 82 in 2005. The University also 

improved its international rankings in all 

the disciplines surveyed by The Times 

Higher Education Supplement, namely, 

Biomedicine (7th), Arts and Humanities 

(7th), Social Sciences (10th), Technology 

(16th) and Science (27th). 

Research Centres 

In 2006, the University was involved in over 125 centres providing a focus for research 

and research training including: 

• Nineteen Cooperative Research 

Centres (CRCs) (including the 

outcomes of the 2006 Selection 

Round), 15 as a core participant, 

from a total of approximately 60 

CRCs serving six Federal Governmenttargeted 

industry sectors. 

• The Australasian Centre for the 

Governance and Management of 

Urban Transport (the GAMUT Centre), 

funded with a grant of $4.3 million 

(over five years) from the Volvo 

Education and Research Foundation. 

GAMUT is a collaborative research 

centre dedicated to promoting and 

supporting sustainable urban transport 

in Australia and the Asia-Pacific region. 

Based at the University of Melbourne 

in the Faculty of Architecture, Building 

and Planning, GAMUT draws together 

a series of international institutions 

– Hitotsubashi University, Tokyo, Tongji 

University, Shanghai, and the National 

University of Singapore – with national 

research hubs at Griffith University 

and Curtin University. 

• Fourteen ARC Centres (including eight 

ARC Centres of Excellence and four 

ARC Special Research Centres), three 

NHMRC Centres of Clinical Research 

Excellence, two Grains Research and 

Development Corporation Centres 

(one jointly with the ARC) and the 

Intellectual Property Research 

Institute of Australia. 

• A number of national and State 

institutes and centres in the 

mathematical, chemical, oral and 

vision health, and plant sciences, and 

tissue engineering established with 

support from Victorian Government 

STI Infrastructure Grants including: 

– The Advanced Centre for Automotive 

Research and Testing – the biggest 

facility of its type in the Southern 

Hemisphere. This collaboration 

between the University and Ford 

Australia (with funding support 

of $6.7 million from a Victorian 

Government Science, Technology and 

Innovation (STI) Infrastructure Grant) 

is aimed at developing streamlined 

processes between researchers 

and Victorian car manufacturers to 

create fuel efficient cars. Based in 

the Department of Mechanical and 

Manufacturing Engineering, the 

multidisciplinary research will also 

involve the Departments of Electrical 

and Electronic Engineering, Chemistry 

and Physics. 

• The Australia-China Centre on Water 

Resources Research, an initiative of 

the Melbourne Water Research Centre 

of the University of Melbourne and 

the Institute of Geographic Sciences 

and Natural Resources Research of 

the Chinese Academy of Sciences. 

• The UNESCO Observatory Multidisciplinary 

Research in the Arts, 

involving nationally and internationally 

recognised researchers in the areas 

of architecture; the physical, natural, 

social and health sciences; wellbeing, 

culture, heritage, arts practice, 

education in the arts, community 

arts practice, research methodology, 

philosophy, ethics and program 

evaluation across pure, strategic, 

applied and action research, across 

the Asian and Pacific region. 

18 


esearch and 


Research Performance 

Since 1996, the University has 

consistently ranked first or second on 

all major national research indicators, 

namely, total income, publications, 

research higher degree (RHD) load and 

RHD completions. These indicators are 

used by the Department of Education, 

Science and Training (DEST) to allocate 

government funding for research and 

research training infrastructure. As 

indicated in Table 3, for 2005 (the latest 

data available), the University was 

ranked first in all of these key research 

performance parameters. 

Based on this research performance, 

the University was successful in gaining 

the highest allocation nationally of 

the research block grant ($120 million 

representing an increase of 4.6 percent 

from 2005) comprised of: 

• Institutional Grants Scheme (IGS) 

funding ($34 million), 

• Research Training Scheme (RTS) 

funding ($59.9 million) and 

• Research Infrastructure Block 

Grants Scheme (RIBGS) funding 

($26.1 million). 

Based on 2005 (the latest available 

comparative data), the University’s 

research income totalled $254.4 million 

(an increase of 22 percent), with 

$106.7 million of Australian Competitive 

Grants, $53.5 million from other public 

sector funding and $94.2 million 

in industry (including CRCs) and 

international support. 

In 2006, for commencement in 2007, 

the University was awarded the highest 

amount of combined National Health 

and Medical Research Council (NHMRC) 

and ARC five-year funding. 

NHMRC performance was strong, 

with the University maintaining its top 

ranking for both NHMRC Project and 

Program Grants combined margin of 

$35.5 million. Success in the Project 

Scheme (27 percent) was the highest 

in the Go8 (average 22 percent) and 

nationally (average 21 percent). New 

multi-year NHMRC project grants (85) 

and funding ($34.5 million) increased by 

20 percent and 12 percent respectively. 

Three NHMRC Program Grants were 

awarded to the University for 2007 with 

a total value of $32.4 million, compared 

with two grants and $23 million 

respectively for 2006. 

Results in the ARC schemes were 

mixed. New multi-year ARC project grant 

funding of $28.6 million represented 

an increase of 13 percent (the second 

highest GO8 percentage increase) 

and $3.4 million on the previous year 

and resulted in an improved fourthplace 

ranking. Although the number 

of successful project grants increased 

slightly to 92, the success rate of 20.9 

percent was below the GO8 average 

of 23.7 percent. With regard to ARC 

infrastructure funding, the University 

obtained the highest GO8 Linkage 

Infrastructure funding as administering 

institution of $4.6 million (more than 

double the 2005 total) but performed 

poorly in relation to ARC Linkage 

Project Grants (Round One) receiving 

$3.2 million resulting in a decrease of 29 

percent and a sixth place ranking. Across 

the schemes, there were considerable 

differences between faculties. 

To address this varied success in 

relation to ARC funding, an Action Plan 

providing for mentoring and target 

setting strategies was developed and 

implemented in late 2006. 

The Veterinary Clinic and Hospital student teaching laboratory at the University’s Werribee campus is used for the demonstration of minor procedures. The high 

quality of the Werribee facilities was an important factor in the Faculty of Veterinary Science being granted accreditation by the American Veterinary Medical 

Association in 2006. 


19

Research Highlights 

• The prediction of the risk of heart 

disease through a simple eye test. 

• The discovery determining that a 

piece of sacred vocal music found in 

the Saxon State Library in Dresden 

(Germany) was the work of the 

composer Vivaldi. 

• The first isolation of crystals that 

form when silicon is used to cause 

chemical reactions in the manufacture 

of pharmaceuticals, the better 

understanding of which could lead 

ultimately to the development of 

new drugs. 

• The first confirmation of the theory 

that the formation of dwarf galaxies 

was sabotaged a billion years after 

the Big Bang. 

• The use of space technology to 

enable Australian farmers to predict 

crop yield and soil moisture. 

• The first successful use of brain 

scanning to predict whether a 

patient’s initial psychotic episode 

is an isolated experience or the 

start of a lifelong mental illness. 

• Results indicating that organisations 

without in-house auditing systems 

were failing to detect significant 

levels of corporate fraud. 

• The discovery of the oldest preserved 

human foot prints in Australia, the 

largest known collection of fossil 

tracks made by humans in the world. 

• The development of a new 

statistical formula to predict 

the likelihood of women with 

osteoporosis fracturing bones. 

20 

Research Funding 

Strategic Priority 

• Increase overall research funding 

levels and diversify funding sources 

As part of its strategy to diversify 

funding sources, a taskforce was 

established to investigate measures 

to improve business investment 

in University research. The 

recommendations of the taskforce will 

be considered and implemented in 2007. 

In addition, the University is actively 

pursuing funding from international 

sources. To this end, an International 

Grants Officer has been appointed 

to liaise with the International Office 

in the promotion of Australian and 

overseas competitive schemes that 

support international collaboration. 

Some of the larger international funding 

grants received this year include: 

• $950,000 from the National Institute 

of Health in the United States for 

a joint project with the US-based 

Institute for Genomic Research to 

sequence and analyse the genome 

of the usually fatal fungal pathogen 

Penicellium marneffei; 

• $820,000 over three years from 

the US-based Michael J Fox 

Foundation for Parkinson’s Research 

for research to help prevent falls 

and improve walking in people with 

Parkinson’s disease; 


• $579,300 from the Susan G Komen 

Breast Cancer Foundation (USA); 

• $516,800 from the Volkswagen 

Stiftung Foundation (Germany). 

National funding obtained for 

international purposes in 2006 

includes $2.1 million DEST International 

Science Linkages funding and two 

ARC International Fellowships awarded 

for 2007. 

In 2006, the University maintained its 

position as one of the largest research 

and development providers in Australia. 

Expenditure on research and research 

training from all sources was an 

estimated $499 million representing 

42 percent of total University 

expenditure. The University’s research 

expenditure has more than doubled 

over a 10-year period. 

Move Towards World- 

Significant Research 

Under Melbourne’s Growing Esteem 

strategy the University will invest more 

in areas of strong performance and 

potential, where there is scope for 

significant contribution and the greatest 

impact. This new focus has coincided 

with the Federal Government’s Research 

Quality Framework (RQF) exercise – an 

initiative designed to assess the quality 

and impact of research in Australia as a 

basis for allocating a proportion of future 

infrastructure funding. 

Research and Research 

Training Quality Taskforce 

Strategic Priorities 

• Set criteria for assessing research 

quality and conduct first round of 

assessments 

• Where required, develop plans to 

improve research quality and impact 

Achievements 

As a means of implementing Growing 

Esteem and preparing for the RQF, a 

Research and Research Training Quality 

(RRTQ) Taskforce was established 

early in 2006 to investigate and make 

recommendations to improve the quality 

and impact of University research and 

research training. The RRTQ Taskforce 

was also charged with responding to 

the 2005 Australian Universities Quality 

Agency recommendation that the 

University refine its research priorities. 

The Taskforce Report, delivered late in 

2006, offers a comprehensive review of 

research performance at Melbourne by 

department and discipline. In carrying 

out its assessment, the RRTQ Taskforce 

audited departments utilising two sets of 

benchmarking studies which collectively 

employed both quality and impact 

research indicators, mediated for size. 

Overall the results were most 

encouraging with more than 90 percent 

of the University’s departments or 

disciplines ranked in the top three in

esearch and 


the nation, and within that group around 

half being the disciplinary leader. 

Nonetheless, the RRTQ Taskforce 

report identified some important 

weaknesses in research performance. 

Various areas for improvement identified 

by the Taskforce will be addressed by 

Faculty Improvement Plans for ongoing 

implementation from 2007. 

The findings of the Taskforce have 

provided the University with a clearer 

understanding of future research 

priorities. Measurement of research 

activity at the University will be enhanced 

through new faculty and staff-level 

specific research-active definitions. 

Potential new research areas for additional 

investment have been identified. 

University Research Expenditure 

$ Million 

500 

400 

300 

200 

100 

0 

2000 2001 2002 2003 2004 2005 2006 

Citations 


• Increase citations by raising the 

profile and accessibility of 

Melbourne research 

Achievements 

As part of its focus on the citation 

profile of the University, the RRTQ 

Taskforce benchmarked various research 

publications for both quality and impact. 

In June high-achieving research staff led 

a workshop emphasising the increasing 

importance of citations as a research 

indicator and the need to enhance 

the publication and citation profile of 


University Research Income 

$ Million 

300 

250 

200 

150 

100 

50 

0 

2000 2001 2002 2003 2004 2005 2006 

A subsequent workshop focussed 

on publication strategies for early 

career researchers. 

In addition, in a move to make 

Melbourne research more readily 

accessible, the RRTQ Taskforce 

recommended that the University of 

Melbourne Eprint Repository (UMER), 

an open access publishing tool, be 

upgraded and expanded. UMER is 

already well established but is being 

converted to DigiTool for management 

of the digital resources. UMER will 

provide ready global access to the 

University’s research output. A 118 

percent growth in the number of items 

added to the Repository was achieved 

in 2006 with the repository now housing 

1,533 publications. Over the year there 

was an 82 percent increase in usage of 

UMER, with the highest usage from the 

United States. 

Research Infrastructure 

World-significant research is facilitated 

by internationally competitive research 

infrastructure. 

Particular emphasis was placed in 2006 

on development of comprehensive 

electronic research information databases 

through Themis Research, the research 

component of Themis – the University 

integrated information management 

system – and through more 

sophisticated e-research capabilities. 

Note: As formal analysis is undertaken biennially for the Australian Bureau of Statistics data 

collection, results for odd years are estimates. 

Table 3. Melbourne’s performance against key national research indicators 

Research Income 

$m National 

Rank 

% of 

Total 

Research Publications 

(DEST Weighted Score) 

DEST 

Weighted 

Score 

National 

Rank 

% of 

Total 

Research HD Load 

EFTSL 

National 

Rank 

Research HD 

Completions 

Number 

National 

Rank 

2002 158.1 1 12.4 2,855 1 9.0 2,785 1 663 1 

2003 198.7 1 13.4 2,857 1 8.1 2,925 1 694 1 

2004 208.8 1 13.0 3,299 2 8.2 3,160 1 724 1 

2005 254.4 1 13.9 3,878 1 8.8 3,159 1 750 n/a 

2006 279.7 n/a n/a 3,936 (est) n/a n/a 3,231 n/a 747 (prelim) n/a 


21

22 

Of particular significance, the Themis 

Researcher Profile module was 

developed, enabling the University 

research community to profile their 

research with all relevant information 

stored in a central location, providing 

easy access and management from a 

single repository. The Themis Research 

Profile (http://www.findanexpert. 

unimelb.edu.au) provides an invaluable 

resource in the identification of staff 

with specific expertise and linkages, 

creating enhanced opportunities for 

academic staff to form multidisciplinary, 

collaborative research relationships 

and improving exposure to media, 

sponsors, potential Research Higher 

Degree students and other external 

stakeholders. Further details of the 

portal are discussed in the Infrastucture 

and Knowledge Management section 

on p 55. 

2006 also saw the development and 

implementation of all other core 

Themis Research Modules, namely, 

Grants, Contracts and Consultancies 

(Submissions, Proposals and 

Agreements), Human Ethics, Animal 

Ethics and Publications, with the latter 

three modules also available for use 

by RHD students. 

E-research developments include: 

• at the national level: 

– as part of the DEST funded 

project Australian Partnerships 

for Sustainable Repositories, the 

audit by the Information Services 

division of 11 data-intensive research 

communities from diverse disciplines 

at the University. The audit outcomes 

highlighted important information 

about general sustainability issues of 

research data management policies 

and practices at the University and 

will be used to establish plans for 

2007 and beyond, and 


– the bringing together of national 

experts for a facilitated series of 

workshops on the issue of research 

data management (ownership, 

re-use, curation and custodianship) 

for the Platforms for Collaboration 

Working Group of the National 

Collaborative Research Infrastructure 

Strategy (NCRIS). The deliberations 

of these workshops will inform 

the distribution of more than $70 

million of NCRIS funding for further 

development of national collaborative 

research infrastructure over the 

coming years. 

• At the state level, involvement in 

a successful bid for Stage 1 ($4.75 

million) of the Victorian e-Research 

Strategic Initiative – a new 

($10 million) State Government 

initiative to accelerate Victoria’s 

e-research capability in order to 

facilitate collaboration and crossdisciplinary 

research efforts 

using advanced information and 

communication technology. 

Research infrastructure at the 

University was boosted with the 

opening of the National Information 

Communications Technology Australia 

(NICTA) Victoria Research Laboratory 

(VRL). NICTA is a collaborative 

government-funded research initiative 

in ICT to which the University is 

a significant contributor with a 

commitment of $37 million in a total 

investment of $137 million. The primary 

research areas being explored by the 

University in the VRL include network 

information processing, network 

technologies and sensor networks. 

Other major investments in 

research infrastructure were made 

through the NCRIS, Bio21 Institute, 

Australian Synchrotron Project, 

Victorian and Australian Partnerships 

in Advanced Computing, University 

Square and a number of specialised 

research centres. 

Regulatory Environment 

The University continues to 

strive to provide the best possible 

research environment through 

adherence to the highest ethical 

and compliance standards. 

Developments in 2006 included: 

• A new Biosafety Management 

Strategy for implementation 

in 2007; 

• The undertaking of a Biological Risk 

Survey of all University research and 

work areas using biological agents. 

The results of the survey will be 

used to align new biosafety policies 

with the type of work conducted, 

placing the University in an excellent 

position to respond to forthcoming 

changes in the regulation of research 

involving biological agents; 

• The recognition of University 

expertise in the ‘Three Rs’ 

(Replacement, Refinement and 

Reduction) of animal welfare research 

through invited speaker roles at the 

2006 Conference of the Australian 

and New Zealand Council for the 

Care of Animals in Research and 

Teaching and through the award of 

the Victorian Government Minister’s 

(Student) Prize to a RHD student for 

application of the ‘Three Rs’; 

• The successful relocation 

of the colony of the National 

Macaque Facility. 

Strengthen Cross- 

Disciplinary and 

Collaborative Research 


• Identify emerging strategic, 

cross-disciplinary priority areas 

for investment 

Achievements 

Central support for areas of strategic 

research importance was provided 

for the first time in 2006 through 

the Strategic Research Initiatives 

Fund (SRIF). The SRIF represents 

a major commitment of $12.5 

million over three years to enable 

the University to become more 

competitive in bidding for regional, 

national and international funding 

with a particular focus on cross 

disciplinary opportunities.

esearch and 


The initiative has proven immediately 

successful, with SRIF funding helping to 

secure the Australasian Research Centre 

for the Governance and Management of 

Urban Transport (GAMUT) (highlighted 

in the Research Centres Section) 

and the renewal for four years of the 

Intellectual Property Research Institute 

of Australia. In addition, the SRIF has 

provided support to seven faculties for 

involvement in new cross-disciplinary 

initiatives. The SRIF supplements the 

Major Research Equipment Fund, 

another means by which the faculties 

are supported in their quest to remain 

research competitive through the 

provision of matching funds for major 

items of research equipment. 

Independently of the SRIF, the 

University is also providing central 

support for the Nossal Institute for 

Global Health during the initial phases 

of its establishment. 

In 2006 a Future Generation Research 

Fund was launched to complement the 

SRIF. This Fund is targeted specifically 

at recruiting world-class researchers 

(at professorial and post-doctoral levels) 

to lead the University in emerging and 

cross-disciplinary research areas and 

to act as a conduit for more intense 

collaboration across networks of 

academic departments, industry and 

other research institutions. The Fund 

will enhance significantly more modest 

existing University schemes supporting 

collaborative research with overseas 

and Australian partners. A crossdisciplinary 

Research Working Group 

(chaired by the Vice-Chancellor) was 

established to develop the criteria 

and processes for the use and 

administration of the Fund, leading 

to the appointment in the humanities 

of the first Future Generation Professor. 

A number of Future Generation Fellows 

will be appointed during 2007. 

The Future Generation Fund also 

complements the ongoing University’s 

Eminent Scholars Incentive Fund, which 

supports the appointment of Nobel 

Laureates and Laureate Professors 

(distinguished professors from within 

the University) as a concerted means 

of providing leadership and building 

teams in world-class strategic research. 

The recruitment of Federation Fellows 

was exceptional in 2006 with the seven 

new appointments bringing the number 

of Federation Fellowships awarded for 

research at the University to 16. 

Build Future 

Research Capacity 



• Increase focus on research training 

Achievements 

With a Research Higher Degree student 

load of over 3,000, the University has 

the largest cohort of research students 

in Australia. 

Melbourne research completions 

comprise 11 percent of Australian 

research completions. The University 

seeks to nurture this next generation of 

researchers by providing students with 

the highest possible quality supervision, 

support and resources to create an 

environment where they can best 

realise their abilities. In recognition of 

the significance of research training, 

the University Council appointed the 

Dean of Graduate Studies to the 

new position of Pro Vice-Chancellor 

(Research Training) in 2006 to 

lead the enhancement of the 

quality of postgraduate research 

education with a particular focus on 

innovative and internationally relevant 

RHD programs. 

The School of Graduate Studies 

(SGS) coordinates the postgraduate 

experience at Melbourne. Focussing 

particularly on RHD students and their 

supervisors, it offers a comprehensive 

range of programs that aim to assist 

and extend postgraduate teaching 

and learning. The programs focus on 

developing leadership and professional 

skills of postgraduates and fostering 

a broad range of graduate attributes, 

particularly among doctoral students. 

Building on these current programs in 

2006, SGS: 

profile 

Professor Patrick McGorry 

Psychiatrist Professor Patrick 

McGorry has been a driving force 

in research on early psychosis 

since the 1980s. He is the founding 

member and Executive Director of 

the University affiliated ORYGEN 

Youth Health and Research Centre, 

the lead agency in a new National 

Youth Mental Health Foundation, 

awarded $54 million in Federal 

funding over four years to deliver 

major improvements in the mental 

health, social wellbeing and 

economic participation of young 

Australians affected by mental 

health illness. 

Professor McGorry has played a 

pivotal role in the development of 

service structures and treatments 

specifically targeting the needs of 

young people with emerging or firstepisode 

psychosis. His extraordinary 

contributions to education, research 

and clinical psychiatry have been 

recognised through many national 

and international grants. He has 

published over 200 journal articles, 

chapters and books and was elected 

as a Fellow of the Academy of Social 

Sciences in Australia in 2006. 


23

• Took primary responsibility for the 

development of the framework 

and policies for RHD pathways in 

the Melbourne Model and Growing 

Esteem, under the leadership of 

the Dean; 

• Established and implemented a 

program of activities for the Writing 

Centre for Scholars and Researchers, 

including public events, workshops, 

master classes and individual creative 

supervision and encouragement; 

• Conducted a comprehensive 

review of the PhD Program at 

which interalia recommended that 

Advisory Committees replace the 

Confirmation Committee and be 

required to meet at least annually to 

assess the progress of candidates; 

• Developed a cohort-based 

postgraduate research supervision 

professional development program; 

• Commenced the development and 

trialling of Postgraduate Essentials 

II, the second of a series of online 

interactive learning modules, aimed 

specifically to support students in the 

latter stages of their candidature with 

the academic skills and management 

tools essential for their candidature 

and beyond. 

Student feedback from these programs 

(and during the supervisory process) is 

highly positive. In the 2006 Quality of 

Research Supervision and Academic 

Support Survey student satisfaction with 

supervision remained high at 4.0 on a 

scale of 1–5. Results of the survey are 

used to inform the quality assurance and 

further development of research training 

at the University. Completion rates at 

the University continued to improve 

with the proportion of PhD students 

completing their research within a 

timely period increasing by 10 percent. 

The average research completion rate 

for the 1996-1999 cohort is 66.7 percent 

with five faculties above the 70 percent 

University target. 

In 2006, the University obtained 

the largest number of Australian 

Postgraduate Awards (178) and 

Endeavour International Postgraduate 

Research Scholarships (38) of any 

university nationally. These allocations 

are based on competitive research 

outcomes and research training 

performance. In 2006, the University 

also strengthened its position nationally 

and internationally as a leader in 

doctoral education as evidenced by: 

• The Dean of Graduate Studies 

being the invited speaker at several 

international conferences on doctoral 

education and SGS hosting many 

international visitors; 

• A University of Melbourne guide for 

supervisors (11 Practices of Effective 

Postgraduate Supervision) having 

been published and distributed 

within Australia and Canada and 

New Zealand; 

• The SGS Leadership and Professional 

Development Program being cited as 

best practice by the Canada-California 

Strategic Innovation Partnership Group 

in relation to ‘developing highly 

qualified personnel’; 

• SGS being invited to host Forms 

& Forces of Change in Doctoral 

Education II in 2007 – with 45 

invited participants from 16 countries, 

supported by the Ford Foundation and 

the US National Science Foundation; 

• SGS leading a Universitas 21 

consortium of nine institutions from 

six countries, which is developing 

an online learning module on global 

research integrity and ethics. 

Despite the University’s leadership in 

research training, growth in RHD load 

appears to have plateaued and the 

2006 figures were below target. To 

help maintain its lead in this area, the 

University will develop and implement 

an RHD Marketing, Recruitment, 

Retention and Completion Strategy 

in 2007. 

24 


Major platform technologies such as nuclear magnetic resonance (NMR) spectroscopy 

underpin contemporary biotechnology. The Bio21 Institute’s NMR Facility houses nine NMR 

spectrometers including the 800MHz spectrometer pictured, one of the largest in Australia.

esearch and 


Recruiting and Retaining 

Researchers 


• Develop the next generation of 

leaders from among early and 

mid-career researchers 

• Continue to recruit and retain 

high calibre researchers 

Achievements 

The nurturing of early and mid-career 

researchers is a major responsibility 

for the University. Attracting, developing 

and retaining the best young researchers 

is crucial for future research growth 

and performance. 

In 2006, the University increased 

substantially its efforts to assist early 

and mid-career researchers. Under a 

new Grant Mentoring Program for major 

funding schemes, faculty coordinators 

were appointed to work with researchers 

in their bid applications. Faculty-specific 

discussion fora also provided guidance. 

University-wide information sessions, 

a new two-day workshop for mid-career 

researchers, the second pilot of an 

early-career researcher program and 

an ongoing internal funding scheme 

available only to early-career researchers, 

have also significantly expanded the 

available support. Feedback on the 

programs has been extremely positive. 

The Staff Equity and Diversity Framework 

2007-2012 developed during 2006 

addresses barriers to progression in 

research for all equity groups, especially 

women. Overcoming one such barrier 

(the inability to complete a doctoral 

degree due to circumstances relating 

to equity grounds) has been aided by 

the introduction in 2006 of the Staff 

Equity Research Fellowship Program. 

This new Program supplements the 

Melbourne Research Fellowships (Career 

Interruptions) Program, which is designed 

to enable researchers whose careers 

have been severely interrupted, delayed 

or otherwise constrained due to family 

responsibilities to enhance or re-establish 

their careers. The University’s Human 

Resources framework is discussed 

further at Binding the Strands Together– 

People on p 48. 

Outlook 

A number of major research and 

research training issues will need to 

be addressed by the University in 2007. 

• Preparation for the RQF will continue 

to be a significant focus. The 

University will establish committees 

and teams to respond to the details 

of the RQF as they emerge from 

DEST, to communicate these details 

to the University community, to 

participate in further consultations 

with DEST and to collaborate with 

the GO8 and other bodies to develop 

the best possible RQF. 

• Examining the means by which 

the University can gain access to 

additional funding to enable the 

University to take advantage of 

significant research opportunities 

as they arise is an urgent priority. 

• To help maintain its lead in the RHD 

student market, the University will 

develop and implement an RHD 

Marketing, Recruitment, Retention 

and Completion Strategy focussed 

on setting appropriate levels of RHD 

Load and a targeted promotion of 

University research programs. 

• The Research Infrastructure 

Committee will plan an overview 

exercise of research facilities 

and significant items of research 

equipment at the University to 

inform future University investment 

in research and facilitate successful 

applications to NCRIS. 

• To complete the set of Themis 

research modules, the Invention 

Disclosure Module will be finalised 

and implemented in 2007. Current 

research modules will be developed 

and refined. 


Professor Rachel Webster 

Internationally renowned 

astrophysicist Professor 

Rachel Webster is the winner of 

the inaugural mid-career award 

from Nature. 

Since her appointment 10 years ago, 

Professor Webster has fostered a 

thriving astrophysics community 

at the University. She has served 

as an inspirational role model for 

women in phsyics and played a key 

role in introducing the Women in 

Physics program at the University 

of Melbourne. Both the program 

and her active mentoring have 

successfully bolstered the numbers 

of female physics graduates at the 

University. 

Professor Webster has active 

research interests in gravitational 

lensing, quasars, clusters of galaxies 

and large-scale structure. 


25

(Physiology) recieved a citation from the 

Carrick Institute for outstanding contribution 

to student learning. His award recognised 

excellence in teaching through over 

one decade of sustained innovation and 

evaluation of computer-assisted learning for 

small group collaborative student activities. 

Associate Professor Robert Kemm 

learning 

and teaching/ 

As part of the development of the new 

Melbourne Model in 2006, the University 

embarked on the most comprehensive 

review of its programs since its foundation. 

26 The University of Melbourne Annual Report 2006

Our goal is to provide high-quality programs within 

a supportive environment so that students gain 

“maximum benefit from their learning experience. 

” 


Peter McPhee 

Deputy Vice-Chancellor (Academic) 


The Melbourne Model: planning the transition 

Target 

Outcome 

Each Faculty to put in place a detailed plan for transition to the Melbourne Model. 

Core principles for six Melbourne Model undergraduate degrees have been approved, including cross-faculty content. 

To assist faculties to restructure courses in collaboration with each other, Course Standing Committees (CSCs) have 

been established for each of the six new degrees, coordinated by a new Board of Undergraduate Studies (BUGS). 

Each faculty has prepared a business plan which articulates its strategies in implementing Growing Esteem, including 

transition to the Melbourne Model. 

Target Be ready to launch graduate schools, and to start recruiting pioneer cohorts to enrol in 2008. 

Outcome 

Key graduate programs that will be available from 2008 include Juris Doctor, Master of Architecture, Master of Property, 

Master of Construction Management, Master of Landscape Architecture, Master of Nursing Science, Master of Social 

Work, Master of Teaching and Master of Forest Ecosystem Science. 

Enhancing the Student’s Melbourne Experience 

Target 

Outcome 

Maintain or improve our ranking in the Learning and Teaching Performance Fund applications. 

Melbourne received a top ranking and the highest grant of $8.9 million in the Commonwealth Learning and Teaching 

Performance Fund for 2007. 

Target 

Outcome 

Target 

Outcome 

Progressively renew physical infrastructure to support learning. 

Focus has been on improving classroom and library infrastructure and designing multi-purpose learning hubs. 

Enhancements to the Student Portal and Learning Management System are underway. 

Implement improvements to the student experience. 

Focus has been on strengthening the first-year student experience, addressing the consequence of Voluntary Student 

Unionism and activities to achieve better integration of domestic and international students. 

Ensuring access for the best and brightest 

Target 

Outcome 

Rework undergraduate and graduate admissions policies. Make progress on government policy change. 

Government approval has been received for the transfer of a significant number of undergraduate CSP to graduate level. 

A minimum of 50 percent of places for Australian students in each Melbourne Model professional graduate program 

will be CSPs. A review of selection procedures and prerequisites for entry into programs under the Melbourne Model 

has commenced. Guaranteed pathways from undergraduate to graduate programs have been developed for very highachieving 

school leavers. 


The University of Melbourne seeks 

to create outstanding learning 

environments for students, fostering 

academic excellence and encouraging 

students to engage in meaningful ways 

with their learning communities. 

The University emphasises the quality of 

the overall ‘Melbourne Experience’. Our 

goal is to provide high-quality programs 

within a supportive environment so that 

students gain maximum benefit from 

their learning experience. The Learning 

and Teaching Plan – prepared annually by 

the Deputy Vice-Chancellor (Academic) 

– sets out detailed actions to ensure 

progress towards these goals. 

In 2002, the University’s Centre 

for the Study of Higher Education 

(CSHE) produced a statement on the 

scholarship of learning and teaching 

in a research-led University entitled 

The Nine Principles Guiding Teaching 

and Learning. The Nine Principles 

continue to provide the framework 

for a first-class learning and teaching 

environment at the University. In 

addition to encouraging, assessing and 

recognising good teaching practice, the 

2006 learning and teaching priorities 

placed greater emphasis on planning the 

transition to the Melbourne Model, and 

on expanding the range of scholarships 

and entry pathways to enable access to 

programs under the new Model. Further 

information on the Melbourne Model 

can be found on p7 of this Report. 

Initiatives to make best use of online 

facilities, improvements to the 

University’s physical infrastructure to 

support learning, recognising greater 

diversity in curricula and teaching, and 

the internationalisation of academic 

programs were also key strategic aims 

for 2006. 


27

Load by course level 

35000 

30000 

25000 

20000 

15000 

10000 

5000 

The Melbourne Model: 

Planning the Transition 

28 

0 


• Reviewing all courses, and planning 

the transition to the Melbourne 

Model over 10 years 

• Ensuring that the best and brightest 

are attracted to the new Model 

• 

35000 

Preparing to manage the transition, 

with particular regard to workloads 

30000 

Achievements 

25000 

2000 2001 2002 2003 2004 2005 2006 

Research Higher Degree 

Postgraduate Coursework 

Undergraduate 

Total 

As part of the development of the 

20000 

new Melbourne Model in 2006 the 

University 15000 embarked on the most 

comprehensive review of its programs 

since 10000 its foundation. Charged with the 

responsibility of developing a 10-year 

5000 

plan for the transition to the Melbourne 

Model, 0 the University’s Curriculum 

Commission worked closely with 

faculties to review current programs 

and plan the future profile of their 

undergraduate and graduate offerings. 

This process was a case-by-case one: 

while moving toward a common degree 

structure the Commission needed to 

take account of disciplinary differences 

and the requirements of Australian 

professional standards. 

Over the period from February- 

September the Commission examined 

the 96 undergraduate degrees now 

offered at Melbourne, and devised a 


set of core principles for introduction 

of six stand-alone ‘new generation’ 

undergraduate degrees, professional 

graduate programs, and for Research 

Higher Degree (RHD) pathways. 

The Commission’s 10-year Transition 

Plan provides for new generation 

Bachelors degrees to be offered 

in Arts, Biomedicine, Commerce, 

Environments, Music, and Science. 

The new degrees will offer discipline 

content with both depth, achieved 

through discipline majors, and breadth, 

achieved by requiring students to take 

a minimum of 25 percent of subjects in 

disciplines which are outside students’ 

core programs and by ensuring that all 

degrees include a capstone experience, 

industry/community experience 

(knowledge transfer experience), 

research experience, online learning 

experience and international experience. 

The degrees will lead to employment, 

specialist professional graduate 

courses or research training. The aim 

is to produce exceptional graduates, 

with both specialised knowledge and 

understanding across a broad range 

of disciplines. 

Under the Transition Plan the first 

cohorts of students will be enrolled 

in the new undergraduate programs 

in 2008. New Professional Graduate 

Programs, including Law, Architecture, 

Property, Construction Management, 

Landscape Architecture, Music, Nursing, 

Social Work, Education and Forest 

Sciences will be offered in 2008, with 

other programs implemented year by 

year, over a 10-year transition period. 

The recommendations and Transition 

Plan of the Curriculum Commission 

have been endorsed by Academic 

Board and Council. 

Based on the recommendations of the 

Curriculum Commission, in December 

2006, the Planning and Budget 

Committee approved a set of principles 

for the establishment of graduate 

schools under the Melbourne Model. 

The principles require all faculties to 

review their postgraduate coursework 

offerings during 2007 focussing on 

entry criteria, coherence, viability and 

pathways from and into other programs. 

A new approach to administration of 

academic programs will be needed 

to complement the new generation 

undergraduate degrees. To assist faculties 

with the complex task of restructuring 

courses in collaboration with each other, 

Course Standing Committees (CSCs) 

have been established for each of the 

six new degrees, coordinated by a new 

Board of Undergraduate Studies (BUGS). 

BUGS will monitor the development, 

academic management, resourcing and 

continuous improvement of the new 

generation undergraduate degrees, 

providing University-wide leadership 

for undergraduate education. 

In the context of the strategic direction 

established by Growing Esteem, in 

2006 the University defined a new 

set of graduate attributes which will 

distinguish University of Melbourne 

graduates under the Melbourne Model. 

The new attributes emphasise discipline 

competence, the grasp of core 

knowledge within a broader context, 

environmental awareness and the 

need for broad, global understanding. 

The University aims to implement and 

monitor the revised graduate attributes 

statement in 2007. 

The Melbourne 

Experience 

Teaching Excellence 


• Encouraging, assessing and 

recognising good teaching practice 

Achievements 

The University’s excellence in learning 

and teaching performance was 

acknowledged during 2006 when the 

University was ranked first overall in the 

Commonwealth Learning and Teaching 

Performance Fund (LTPF). The University 

received LTPF recognition across 

all four discipline groups – science, 

computing, engineering, architecture 

and agriculture; business, law and 

economics; humanities, arts and 

education; and health. The $8.9 million 

awarded to the University from the 

Commonwealth’s 2007 allocation will 

be distributed directly to faculties.

learning 

and teaching/ 

The University’s 2007 LTPF performance 

follows its success in the inaugural 

round of LTPF funding in 2006, when it 

was awarded $9.85 million. The 2006 

funding has been applied to assisting 

with the University’s curriculum review 

as well as toward projects to enhance 

learning and teaching. 

Funds were also designated for the 

improvement of facilities for students 

through development and refurbishment 

of teaching spaces, especially in the 

Faculty of Engineering. 

Student perception of teaching is 

measured by responses to the Quality 

of Teaching (QoT) surveys each 

semester and the graduate Course 

Experience Questionnaires (CEQs). QoT 

surveys for Semester 1, 2006, revealed 

that students are largely satisfied with 

most aspects of their course 

experience. Results from the QoT 

surveys have shown gradual 

improvement from 2002 to 2005 on 

the questions of whether subjects 

are well-taught. In Semester 1, 2006, 

outcomes in areas including overall 

satisfaction and the quality of teaching 

remained steady or were marginally 

lower compared to the previous 

semester. The undergraduate mean 

score for Question 2 (subject ‘welltaught’), 

decreased to 3.9 (compared 

to 4 in Semester 2, 2005) while the 

mean rating for postgraduate subjects 

remained unchanged at 4.1 (using a 

scale of 1-5). 

Quality of Teaching Survey 

Course Experience Questionnaires are 

provided annually to recent graduates 

to obtain feedback on whether they 

were satisfied with their courses and 

course experiences. The 2005 CEQ 

results showed that overall satisfaction 

and good teaching figures in relation to 

Bachelor and Postgraduate Coursework 

programs completed in 2004 have 

remained steady. With greater emphasis 

on the student experience under the 

Melbourne Model and continued 

monitoring of these outcomes, the 

University aims to continually increase 

student satisfaction. 

Each year the University sets targets 

aimed at recognising, developing and 

promoting excellence in teaching. 

These include: 

• Intensive programs offered by the 

Centre for the Study of Higher 

Education (CSHE) to assist academic 

staff in developing the fundamentals 

of effective University teaching. The 

Graduate Certificate of University 

Teaching is a two-year, part-time 

course for academics wishing to 

develop advanced skills in university 

teaching. Thirty-five staff members 

enrolled in the Graduate Certificate 

in 2006. The CSHE also administers 

a series of learning and teaching 

workshops aimed at enhancing 

teaching expertise. Enrolments 

remained strong in 2006 with a total 

of 148 staff attending workshops, 

and 299 registrations recorded for 

individual sessions. 

• The Vice-Chancellor’s Colloquium 

on Teaching and Learning 

Approximately 360 academic and 

general staff from all faculties 

attended the Vice-Chancellor’s sixth 

annual Colloquium on Teaching and 

Learning. The Colloquium showcases 

best practice in learning and teaching 

and featured presentations by winners 

of the University’s Teaching Awards 

and national Carrick Teaching Awards 

recipients. A keynote address by 

international scholar, Professor 

Dai Hounsell (University of Edinburgh), 

examined research-led approaches to 

assessment in different disciplines. 

Graduates in full-time 

employment 

100 

80 

60 

40 

20 

0 

2000 2001 2002 2003 2004 2005 

University of Melbourne 

Other Victorian institutions (average) 

Other Australian institutions (average) 

Graduates in full-time study 

40 

Percent of undergraduate subjects with a mean rating 3.0 or higher on Question 2 

('This subject was well taught'), Semester 2, 2000-2006 

100% 

99% 

98% 

97% 

96% 

95% 

94% 

93% 

92% 

91% 

90% 

2000 2001 2002 2003 2004 2005 2006 

35 

30 

25 

20 

15 

10 

5 

0 

2000 2001 2002 2003 2004 2005 


Other Victorian institutions (average) 

Other Australian institutions (average) 


40 

35 

29

30 

• University and Commonwealth prizes 

for excellence in teaching 

The University of Melbourne Awards 

for Teaching Excellence, administered 

by the CSHE, are issued annually in 

three discipline groups. A University 

prize for excellence in supervision was 

awarded for the first time in 2006. 

Prize winners are listed in ‘High- 

Achieving Staff’ on p 14. 

The Excellence Awards also include 

an award for Innovation and Excellence 

in Support and Service to Teaching and 

Learning. In 2006 the award was made 

to the Arts Transition Program, led by 

Ms Sanchia Draper and Associate 

Professor Steven James in the Faculty 

of Arts, for a program including 

accessible and enjoyable transition 

activities for first-year students. 

Carrick Citations were awarded for 

the first time in 2006 as part of the 

Australian Government’s expanded 

program of national awards designed 

to recognise and reward teaching 

excellence in higher education. The 

University exceeded its targeted 

number of grants under the scheme, 

receiving an exceptional nine Carrick 

Citations for Outstanding Contribution 

to Student Learning and two prestigious 

Carrick Awards for Australian University 

Teaching recognising the nation’s most 

outstanding teachers in their fields. 

The recipients, including both 

professional and academic staff from 

diverse disciplines, are listed among 

the ‘High-Achieving Staff’ on p 14. 

E-Strategy 


• Designing courses and methods to 

make best use of online facilities 

Achievements 

The new position of Pro Vice-Chancellor 

(Teaching, Learning and Equity) was 

created in 2005 to provide leadership 

and to promote the development 

of teaching strategies in line with 

new technologies. The Pro Vice- 

Chancellor worked with the Information 

Division and with the Teaching and 

Learning (Multimedia and Educational 


Technologies) [T&L (M&ET)] Committee 

throughout 2006 to build on existing 

e-learning policies and to define the 

role of new technologies and learning 

environments under the Growing 

Esteem strategy. 

An e-learning policy working group, 

including academics engaged in e- 

research, was established to ensure 

that learning and teaching, and research 

‘e-goals’ are aligned and make optimal 

uses of available resources. The 

University aims to achieve optimal use 

of online facilities to support flexible 

and/or fast-track learning. 

A revised e-learning strategy launched 

in 2006 outlines a series of core 

e-learning principles which will form 

the basis for the further development 

of the University’s e-learning strategy. 

Meanwhile T&L (M&ET), faculties 

and departments monitored the 

impact of e-learning technologies on 

learning and teaching and undertook 

40 new curriculum and courseware 

development projects using online and 

other technologies to students across 

all faculties. Of particular note was 

the Cultural Diversity project with the 

Education Faculty, which won the 

Victorian Multicultural Commission’s 

Victoria Awards for Excellence in 

Multicultural Affairs. More than 25 

individual academics were supported 

in the innovative use of educational 

technologies through collaborative 

project-based development. 

In other developments: 

• Wireless internet connection was 

expanded in 17 new buildings 

including a range of lecture theatres, 

seminar rooms and the ICT building; 

• Five additional shared learning 

spaces were enabled for Lectopia, 

the University’s automated system 

for capturing and online publishing 

of class audio recordings; 

• Over 250 general purpose desktop 

student computers in all the libraries 

at all campuses were upgraded 

and replaced with highly functional, 

current model PCs; 

• SuperSearch was launched, providing 

keyword, title, author or subject 

searches across all or selected 

resources, including the library 

catalogue. Links in search results 

give direct access to University of 

Melbourne electronic subscriptions. 

SuperSearch also facilitates 

permanent article-level links to 

electronic journals and books from 

within the Learning Management 

System or other locations; 

• A successful trial was conducted 

allowing library users the option of 

sending reference queries to library 

staff via SMS and/or Chat; 

• The application of using RSS feeds 

for accessing new library materials 

was made available in late 2006. The 

use of such web-enabled technology 

is particularly useful for ‘news’-based 

web sites, or any site with constantly 

changing information. 

Various forums throughout the year 

provided staff with access to the 

latest international developments in 

pedagogy and learning environments. 

Two hundred and forty people attended 

the annual Multimedia and Educational 

Technologies for Teaching and Learning 

Enhancement (METTLE) Forum 

showcasing best practice in teaching, 

research, knowledge transfer and 

support activities. This year the Forum 

focussed on the development of an 

e-learning strategy for the University, 

and the e-learning needs of the students 

of the future. 

In particular the Forum explored the 

‘learning hub’ concept. 

In a development expected to have a 

significant positive impact on student 

life, a student portal system was 

developed during 2006 to provide 

students with information in an efficient 

and accessible manner. An online ‘onestop-shop’, 

students are able to access 

email, timetables, online teaching and 

learning tools, academic advice and 

programs, library accounts and other 

essential University services through 

the portal. A soft launch of the Student 

Portal has taken place, with the formal 

launch on schedule for Semester 1, 2007.

learning 

and teaching/ 

A working group of the Melbourne 

Experience Committee has been 

established to ensure that an effective 

student-centred communication strategy 

is implemented to support the portal. 

Staged implementation of the 

Blackboard Learning Management 

System (LMS) continued throughout 

2006, with the University achieving 

its planned enrolment of 25,000 

students in 600 Blackboard-delivered 

subjects in Semester 2, 2006. The 

observations of staff and students who 

participated in the 2005 pilot program 

were reflected in strategies to improve 

the LMS throughout 2006. In further 

LMS developments, Readings Online 

established a library-run service for 

managing online teaching and learning 

objects through the LMS. Materials 

will be managed so that they are 

copyright compliant, professionally 

‘catalogued’ for efficient retrieval, and 

stored systematically to allow multiple 

reuses as required. A Disaster Recovery 

System was also implemented for 

the LMS. 

Internationalisation 


• Ensuring that the Melbourne 

Experience is an international one 

Achievements 

Over the last four years, the University 

has responded to the increasing 

diversification of its student population 

by implementing measures to 

internationalise the curriculum and 

by ensuring that the different needs 

of students are met across a range 

of activities. 

Teaching innovations are guided by 

the 2004 Report, Students from Asia: 

Issues in Learning and Teaching. 

The report makes recommendations 

promoting culturally sensitive and 

student-centred teaching practices for 

Australian and international students. 

Since 2004 all faculties have, with the 

assistance of resources and programs 

developed by the CSHE, implemented 

initiatives to encourage cultural diversity 

in curricula, learning, teaching, and 

assessment. 

In 2006 a summit held by the DVC 

(Academic) focussed further attention 

on these issues and, in particular, 

considered culturally inclusive practices 

in learning, teaching and assessment, 

the implications of learning in a different 

culture and learning while developing 

English language proficiency. 

Curriculum initiatives in 2006 include: 

• The U21 Certificate in Global Issues, 

a multidisciplinary award which 

focuses on contemporary global 

issues, offered in conjunction with 

four other member institutions of 

the Universitas 21 Consortium. 

Feedback from students undertaking 

online modules has been very 

positive. Following the launch of 

the pilot program in 2005, various 

administrative issues have been 

addressed. A new business model, 

to be developed in 2007, will ensure 

that the program remains viable on 

a larger scale. 

• The Faculty of Veterinary Science 

established the Postgraduate 

Certificate in Avian Health and the 

Master of Avian Health and Medicine 

as jointly-badged courses to be 

offered in collaboration with the 

University of Georgia, USA. 

• Continued budget incentives providing 

faculties with a bonus based on the 

number of students enrolled in Asiaoriented 

subjects. 

The University has significantly 

improved English language testing 

and language support services for 

international students in recent years. 

During 2006 a Task Force on English 

Language Bridging and Support 

Programs was set up to review and 

provide further advice to the Academic 

Board on English language entry 

pathways and support mechanisms 

in the context of the new generation 

undergraduate degrees. Further 

English language support programs 

will be developed in accordance with 

the Taskforce’s recommendations, in 

consultation with BUGS. 

The effectiveness of services 

provided to international students is 

monitored each year by the Melbourne 


Professor Belinda Probert 

Dean of Faculty of Arts 

Leading sociologist Professor 

Belinda Probert commenced as 

Dean of the Faculty of Arts 

during 2006. Formerly Pro 

Vice-Chancellor (Academic) at 

the University of Western 

Australia, Professor Probert has an 

impressive background in university 

administration as well as in her area 

of academic expertise. 

Under her guidance the Faculty 

of Arts has been restructured to 

promote greater interdisciplinary 

collaboration in teaching and 

research and more streamlined 

administrative and decision-making 

processes. From 1 January 2007 

the Faculty will comprise seven new 

Schools – the Asia Institute, Culture 

and Communication, Historical 

Studies, Languages and Linguistics, 

Philosophy, Political Science, 

Criminology and Sociology and 

Social and Environmental Inquiry. 

Professor Probert’s teaching and 

research expertise has been 

built in the area of politics and 

sociology where she has researched 

and published extensively on 

employment policy, gender, equity, 

and work and welfare reform. She 

is a Fellow of the Academy of Social 

Sciences in Australia. 


31

Experience Committee (MEC), which 

was established in 2005 to advise 

on processes to improve the overall 

student experience at Melbourne. 

A particular interest of MEC has 

been, and will continue to be, the 

improvement of the social integration 

of international and local students. 

In 2006, there were encouraging 

indications that strategies addressing 

the needs of international students have 

been successful, with a survey of 980 

international students finding that the 

vast majority of students regard the 

Melbourne Experience positively. 

With the assistance of the Universitas 

21 Mobility Project and the OS-HELP 

loans, the number of outgoing exchange 

students increased from 442 in 2005 to 

454 in 2006, incoming exchange students 

rose from 136 in 2005 to 198 in 2006. 

Over the same period outgoing U21 

mobility increased from 128 to 148, with 

incoming U21 mobility increasing from 99 

to 144. Statistics indicate that the number 

of institutions receiving Melbourne 

students also increased in 2006. 

32 

Student Support 


• Building student support 

services, including transition 

support to employment 

Achievements 

The Melbourne Experience Committee 

(MEC) is charged with enhancing the 

University’s student support services. 

The Committee’s focus in 2006 on 

improving classroom and library 

infrastructure, the student portal 

and LMS, the first-year experience 

and the integration of domestic and 

international students are discussed 

earlier in this section. In 2006 the MEC 

also considered measures to address 

the consequences of Voluntary Student 

Unionism, discussed in the Management 

section of this Report on p 59. 

Student satisfaction with the level of 

University support services is measured 

by a biennial Evaluation Cycle Survey. 

Feedback from the survey is used to 

adjust and improve systems. 


The most recent survey of the Quality 

of Administrative and Support Services 

for Students, which was conducted in 

late 2005, was consistent with previous 

years. Students are, in most cases, 

satisfied with the administrative and 

support services provided to them 

by the University though some key 

services, such as course planning 

advice and student administrative 

systems, have been identified as 

areas for further improvement. It is 

expected that the introduction of 

the student portal and new studentcentred 

administrative systems, 

devised to support implementation of 

the Melbourne Model, will result in 

improved student experience. 

It was decided that a questionnaire 

on the Melbourne Experience will be 

developed in 2007 as an additional 

tool for measuring student satisfaction. 

The questionnaire will form part of 

the University Planning Office’s annual 

cycle of student evaluations. 

The University aims for continual 

improvement in the levels of student 

satisfaction with support services, 

particularly for students in the ‘transition’ 

to University and to employment. In 

2006 the MEC completed an audit 

of the range of ‘capstone’ activities 

available to students across the 

University. Capstone experiences serve 

two main functions: 1) the integration, 

examination and application of 

knowledge gained during a degree, and 

2) the further development of skills that 

are necessary for both further study and 

the commencement of professional life. 

The findings of MEC’s report showed 

that whilst most faculties offer capstone 

experiences within their courses, 

Table 4. International 

student enrolments 

International 

Load (EFTSL) 

% 

International 

2000 4,892.0 16.9% 

2001 5,550.4 18.4% 

2002 6,701.1 21.0% 

2003 7,619.0 23.2% 

2004 8,021.0 23.9% 

2005 8,335.4 24.5% 

2006 8,752.1 25.9% 

programs for the ‘transition out’ of 

University need further development. 

To this end a number of internal papers 

were prepared during the year to 

examine the need for the extended 

availability of careers advice, reasons 

for poor Graduate Destination Survey 

outcomes and enhanced liaison with 

domestic and international employers. 

The TALQAC Course advice committee 

also made recommendations on 

policies to improve the nexus between 

student course advice and careers and 

employment advice and services. 

Plans are underway for extending 

student volunteer opportunities. Steps 

are being taken to adjust programs 

and services in the light of the policy 

advice, which will also inform planning 

of service delivery under the Melbourne 

Model. Careful planning will be required 

to ensure the approach to ‘transition 

out’ of University takes into account the 

increased cross-disciplinary experiences 

which students will experience under 

the Melbourne Model new generation 

degrees. An integrated, cross-faculty 

approach will be crucial. 

Infrastructure 


• Progressively renewing physical 

infrastructure to support learning 

Achievements 

The scoping and development of the 

multi-purpose student learning hubs 

in precincts around the University was 

a priority project for the MEC in 2006. 

A Policy Adviser to the Deputy Vice- 

Chancellor (Academic) was appointed to 

work with faculty and other University 

staff in the design and development of 

improved learning and teaching facilities. 

Details of learning hub developments, 

collaborative learning centres and other 

enhancements to the University’s 

physical infrastructure are discussed 

further under the ‘Infrastructure’ section 

of ‘Binding the Strands Together’ on p 55. 

As the new-style spaces become 

operational, the University’s Teaching 

and Learning Support Services (TLSS) 

will conduct professional development

learning 

and teaching/ 

programs, training staff in how to 

optimise their teaching potential. 

Ensuring Access for the 

Best and the Brightest 


• Continuing to attract the best 

and the brightest students 

• Addressing the financial barriers, 

including expanding scholarships for 

undergraduate and graduate students 

through a scholarships fund 

Achievements 

The Policy and Advocacy Taskforce 

(PAT), chaired by the Vice-Chancellor, 

was created in 2006 to develop policy 

options to ensure equity and access 

to University programs for capable 

students under the Melbourne Model. 

In the early part of 2006 the advice 

of PAT helped the University secure 

in-principle agreement from the Federal 

Minister for Education, Science and 

Training for the transfer of a significant 

number of Commonwealth Supported 

Places (CSPs) to the University’s new 

graduate programs. The University 

is continuing to lobby the Federal 

Government to extend Youth Allowance 

and Austudy to graduate study and to 

increase the amount that students can 

borrow through FEE-HELP. 

From 2008 the University is proposing 

to extend the highly-successful Access 

Melbourne program to include graduate 

study. In 2006, following consultation 

with the Scholarships Office, PAT 

developed draft criteria for a graduate 

Access Melbourne scheme. It is 

proposed that selection will be based 

on financial and social disadvantage 

and that a select number of access 

places will be reserved for students 

from Indigenous backgrounds. 

Another issue discussed by PAT in 

2006 was the importance of ensuring 

that students from disadvantaged 

backgrounds who gain access to the 

University are in a position to meet their 

academic potential. PAT is investigating 

a range of financial support options 

for non-tuition expenses, including 

discounted sports memberships, book 

and housing bursaries and casual 

employment opportunities. 

Other access and equity policy options 

examined by PAT in 2006 include a 

new scholarship for high-achieving 

school-leavers based on a combination 

of academic excellence, leadership 

potential and community contribution. 

During the year the University 

Advancement Office, the Curriculum 

Commission and the other taskforces 

worked closely to ensure that the 

educational goals of the Melbourne 

Model will be supported by fundraising 

activities, improved alumni relations, 

and other philanthropic activities 

to finance undergraduate and 

postgraduate scholarships. 


• Rethinking admissions processes at 

undergraduate and graduate levels 

Achievements 

In 2006 the Selections Procedures 

Committee (SPC) commenced a review 

of selection procedures and prerequisites 

for entry into programs under the 

Melbourne Model. The review will also 

aim to establish appropriate pathways 

for guaranteed entry to professional 

graduate programs, for applicants 

returning to study, and for undergraduate 

to postgraduate study. Prerequisites and 

selection criteria for high-achieving school 

leavers for the new Melbourne Model 

undergraduate and postgraduate degrees 

to be offered in 2008 were approved by 

the Academic Board. 

Outlook 

2007 will see the implementation of 

the Melbourne Model in preparation 

for the delivery of new undergraduate 

and postgraduate programs from 2008. 

The University will continue to focus, in 

particular, on the quality of its programs 

as it commences the transition to the 

Model. It will establish the detail of 

the structure and content of the new 

generation undergraduate degrees and 

the professional graduate courses to 

be offered in 2008; continue to define 

the content and criteria for the breadth 

component and for majors in the new 

generation undergraduate degrees; 

and develop a high-quality, studentcentred 

and consistent approach to 

curriculum development and course 

advice under the Melbourne Model 

to ensure a distinctive and excellent 

Melbourne Experience. 

Improving the quality of learning and 

teaching across all faculties will remain 

a major objective for 2007. The 

University will continue to take all the 

actions necessary to improve outcomes 

in order to maintain its position as a 

leader on all indicators for the Learning 

and Teaching Performance Fund, 

especially in relation to the Course 

Experience Questionnaire. 

Another priority for 2007 will be to 

maximise use of the student portal 

communication option by staff and 

students and to ensure implementation 

of the Student Communications Policy, 

which aims to reduce duplication of 

messages, and to improve the quality 

and clarity of messages. Close attention 

will also be paid to the process of 

implementing the LMS and training 

staff to use the system effectively. 

Expansion of wireless internet 

connection will continue. 

Development of the proposed network 

of precinct ‘learning hubs’ will also 

continue. A particular focus will be to 

provide student service centres for the 

new undergraduate degrees, and on 

the necessary classroom and laboratory 

changes resulting from implementation 

of the Melbourne Model. 

Finally, the University will aim to 

further improve its national and 

international standing through improved 

benchmarking of learning and teaching. 

To assist in achieving this, the focus 

will remain on increasing the number of 

students participating in formal student 

exchange programs, particularly to U21 

institutions, and on providing more 

jointly-badged programs. The objective 

will be to provide for all students an 

enriched experience from their studies, 

based on an international awareness 

and openness to cultural diversity. 


33

of Australian-born concert pianist and composer, 

Percy Aldridge Grainger (1882–1961). The exhibition 

Facing Percy Grainger ran at The National Library 

in Canberra during 2006, drawing chiefly 

on the University’s Grainger collection. 

Ms Astrid Krautschneider with memorabilia 

knowledge 

transfer/ 

During 2006 the University focussed on ensuring 

that the concept of Knowledge Transfer is widely 

understood inside and outside the University. 


Melbourne has embraced ‘knowledge transfer’, 

the idea of a continuous exchange of knowledge 

between the University and the many 

communities of which it is part. 

“ 

” 


Professor Vijoleta Braach-Maksvytis 

Deputy Vice-Chancellor 

(Innovation and Development) 

Develop a strategic framework for a new approach to knowledge transfer 

Target 

Outcome 

Knowledge transfer is widely understood both inside and outside the University. 

The Knowledge Transfer Taskforce (KTT) has developed a definition of Knowledge Transfer. Communication of the 

concept will continue. 

Target 

Outcome 

Launch a coherent portfolio of knowledge transfer activities. 

An audit of current knowledge transfer activities surveyed by the KTT identified 366 examples of projects involving 

interaction with 1,200 community, industry and government partners, estimated to represent less than 20 percent of 

University activity. The KTT recommended that the University focus on four knowledge transfer outcomes: generating 

public debate; enriching communities; enhancing productivity for business and industry; and leading policy development 

and providing independent advice. 

Embed knowledge transfer in the core of the University 

Target 

Outcome 

Student involvement in knowledge transfer is evident across the University. 

The KTT identified a wide range of current student involvement in knowledge transfer programs. New Melbourne Model 

degrees are to include a knowledge transfer component. 

Target 

Outcome 

Build recognition of staff involvement in knowledge transfer into recruitment, performance, and promotion criteria. 

Academic Promotions Guidelines have been drafted to incorporate knowledge transfer benchmarks as criteria 

for promotion. Knowledge transfer activity will also be recognised and rewarded and will be taken into account in 

recruitment in accordance with Human Resources guidelines developed during 2006. 

Transform Melbourne’s social and economic engagement 

Target 

Outcome 

Significantly improve contact rates with alumni and organise more focussed events for alumni in Melbourne, 

across Australia and overseas. 

Alumni staff was doubled, the ADVANCE database for Alumni was upgraded and corrected, and more regular contact 

began. 163,000 alumni received the new Alumni Resource Guide, a Growing Esteem brochure and The University 

Fund brochure as well as the annual Melbourne University Magazine. Five new overseas events began a more 

focussed alumni program. Contact via the email newsletter GradNet lifted from 8,500 to 26,793. 

Target 

Outcome 

Target 

Outcome 

Target 

Outcome 

Target 

Outcome 

Develop a more focussed portfolio of community engagement activities, and ensure that they are of benefit 

to the communities concerned, as well as to the University. 

The new position of Pro Vice-Chancellor (University Relations) has been appointed to oversee community engagement 

activities. The University’s Cultural and Community Relations Fund made grants totalling $260,109 towards 22 projects 

involving the community. A commissioned market survey has highlighted aspects of interaction with 

external partners that can be strengthened. 

Articulate how our arts and cultural activities fit with the University’s aims. 

A Cultural Policy Statement was agreed, and published, defining principles for how arts and cultural activities fit into 

the University’s aims. 

Increase the number of staff appearing with significant impact in the media and other public forums. 

The University’s academics are in constant demand as authoritative and independent commentators on significant 

public issues. 

Recast commercialisation aims and targets, and implement successfully the new Intellectual Property policy. 

The Commercialisation Strategy Paper adopted by Council sets out objectives and policies and outlines operational 

improvements and new initiatives. A revised approach to Intellectual Property (IP) was agreed in principle by Council, 

with complementary IP principles and an Invention Disclosure policy adopted. As a general principle, the University 

asserts ownership of intellectual property, other than scholarly works, created by its academic staff. 


35


The introduction in 2006 of knowledge 

transfer as the third strand of the 

University’s ‘triple helix’ required 

the development of a definition 

and framework for the University’s 

knowledge transfer. This was particularly 

challenging given the ‘green field’ stage 

of development of the concept both 

nationally and internationally. During 

2006 the University focussed on 

ensuring that the concept of knowledge 

transfer was widely understood inside 

and outside the University. While many 

examples of knowledge transfer already 

exist at Melbourne, many of them were 

not recognised as such. 

Develop a Strategic 

Framework for 



• Audit the University’s resources 

for knowledge transfer 

Achievements 

A Knowledge Transfer Taskforce (KTT) 

was established in March 2006. 

One of its first tasks was to audit 

the University’s current portfolio 

of activities, assessing their social/ 

economic contribution and relevance 

to teaching and research priorities. 

A scoping study was carried out to 

gauge the range and strength of 

knowledge transfer activity across 

the University. Three hundred and 

sixty-six examples of knowledge 

transfer activities were identified by 

64 areas of the University. 

The study found that the University 

has worked with more than 1200 

partners beyond the campus, with 

activities spanning local to international 

projects. The strongest knowledge 

transfer activities were characterised 

by engagement that was sustained and 

two-way, delivering ongoing benefits, 

and often catalysing the involvement 

of a number of external partners. Of the 

examples provided for the scoping study: 

• 70 percent showed shared benefits 

for both the University and partner(s); 

• 69 percent delivered ongoing 

benefits, rather than being a 

‘one-off’ interaction; 

• 55 percent of activities involved 

sustained engagement with 

University partners; and 

• 79 percent involved two or more 

partners. 

The range of benefits to partners 

involved in the University’s knowledge 

transfer portfolio included: 

• Improved business performance; 

• Contribution to policy development 

and improved programs for 

government; 

• Generation of debate on 

significant issues; 

• Improved mental and physical 

wellbeing; 

• The development of practitioners; 

• Enriched cultural life; and 

• Environmental improvement. 


• Survey external needs and identify 

issues the University can help address 

• Develop a new more focussed 

approach to knowledge transfer 

activities 

Achievements 

Melbourne focusses its knowledge 

transfer on activities where the 

communities involved derive clear 

benefit from their engagement with 

the University. To this end the KTT 

commissioned a market research study 

of community groups and businesses 

to understand how the University is 

perceived by those beyond the campus, 

to understand the needs of the different 

communities, to ascertain the ways 

in which those outside the academy 

perceive the University, and how the 

University may be able to contribute to 

meeting the needs of individuals, nonprofit 

groups, business, and government. 

The data revealed a strong desire for 

the University to use its knowledge 

capabilities to generate tangible 

outcomes for business, industry, 

government and local communities 

through intellectual leadership, debate, 

and as a source of independent 

excellence. On this basis, the KTT 

recommended that the University focus 

on four knowledge transfer outcomes: 

• Generating public debate for broad 

and deep engagement with issues 

of significance; 

• Enriching communities; 

• Enhancing productivity for business 

and industry; and 

• Leading policy development and 

providing independent advice. 

Drawing on the survey findings as well 

as international experience and public 

policy trends in Australia, the KTT 

recommended that knowledge transfer 

at the University be defined in the 

following terms: 

The University of Melbourne’s 

knowledge transfer develops intellectual 

capital through a two-way mutually 

beneficial interaction between the 

University and the non-academic 

sectors, with direct links to teaching 

and research, and informed by social 

and global issues. The University of 

Melbourne’s knowledge transfer is 

anchored in its intellectual capital, 

history and tradition, and a reputation 

for independent world-class expertise. 

The recommendations of the KTT were 

adopted by Council late in 2006. 

36 


knowledge transfer/ 

Embed Knowledge 

Transfer in the Core 

Work of the University 

Student Knowledge 

Transfer Activities 


• Develop curricular and extracurricular 

knowledge transfer 

activities for students 

Achievements 

Knowledge transfer experiences 

benefit students in many ways. They 

underpin the development of high 

levels of skill and flexibility in problemsolving. 

They encourage creative 

contributions in the workplace and 

assist students in understanding, 

assessing and initiating innovative 

contributions to community needs. 

They also promote social, civic, 

ethical and environmental responsibility 

in students. 

In the process of its audit, the KTT 

identified a wide range of current 

student involvement in knowledge 

transfer programs. These include 

for-credit subjects in which students 

are placed in external organisations, 

subjects taught by current practitioners, 

co-supervision of research students 

by industry, co-location of research 

and honours in facilities with external 

organisations, featuring students’ work in 

performances and exhibitions, and extracurricular 

activities such as the Student 

Ambassador Leadership Program and 

contribution to student magazines. 

With the move to the Melbourne 

Model in 2008, student involvement in 

knowledge transfer will be significantly 

enhanced. To support transition to the 

Melbourne Model, the KTT prepared 

for the Curriculum Commission a paper 

detailing how knowledge transfer might 

be incorporated into a student’s learning 

experience. The Curriculum Commission 

has adopted the recommendation 

that all ‘new generation’ degrees 

be characterised by a knowledge 

transfer component. 

The Taskforce report to the Curriculum 

Commission also included a focus 

on knowledge transfer needs at the 

postgraduate level, acknowledging 

that different types of postgraduate 

programs may have quite distinctive 

knowledge transfer objectives. The 

University is investigating whether 

skills developed in knowledge transfer 

activities outside of the curriculum 

might be formally recognised by 

the University through, for instance, 

inclusion on academic transcripts. 

Staff Knowledge 

Transfer Activities 


• For staff, develop reward 

mechanisms for engaging in 

knowledge transfer activities 

• Expand the role of external 

community representatives 

in the work of the University 

Achievements 

In order to ensure that knowledge 

transfer is properly embedded as a 

core activity of the University, 

excellence must be captured and 

recognised. Methodologies developed 

during the scoping study procedures 

will be useful tools to guide the ongoing 

collection of data capturing knowledge 

transfer activity. Evaluation is a more 

difficult issue, with measurement of the 

quality of mutually beneficial outcomes 

for both the University and partners, 

across a diverse range of activities, 

consistently noted in the relevant 

literature as a fundamental challenge. 

In designing a well-developed set of 

indicators for knowledge transfer, the 

KTT has recommended evaluation 

according to the criteria of: significance, 

impact, scholarship and innovation. 

These measures will allow different 

disciplines to set their own priorities 

in knowledge transfer, reflecting their 

specific strengths. 


Professor Stuart 

Macintyre 

Laureate Professor Stuart Macintyre 

from the Department of History 

has been appointed to the Chair 

of Australian Studies at Harvard 

University for 2007-2008. 

Formerly Dean of Arts at the 

University, Professor Macintyre is 

one of Australia’s most prolific and 

influential historians. He has written 

12 books, including the widely 

read The History Wars, and edited 

another 18 concerned mainly with 

Australian and British history. 

From 1999-2000 Professor 

Macintyre chaired an inquiry 

into school history for the 

Commonwealth Department of 

Education, Science and Training. 

Amongst his many appointments, 

he has served as President of the 

Australian Historical Association and 

Chair of the Australian Academy 

of Humanities. He was elected as 

President of the ASAA in 2006. 


37

Further development of the framework, 

rationale and operation of these 

measurement tools will take place in 

2007, informed by valuable feedback 

from faculties concerning the issues 

they face as they seek to extend and 

strengthen knowledge transfer aspects 

of their research and teaching. 

The development in 2006 of new 

Academic Promotions Guidelines 

incorporating knowledge transfer 

benchmarks as criteria for promotion 

will serve to reinforce knowledge 

transfer as a core aspect of the 

University’s work. A further initiative 

will see knowledge transfer activity 

formally recognised and rewarded in 

accordance with Human Resources 

guidelines developed during 2006. 

The guidelines will be developed 

further during 2007 for implementation 

in 2008. These new initiatives are 

discussed further in the Human 

Resources section of this Report on 

p 53. 

Transform Melbourne’s 

Social and Economic 

Engagement 

38 

Alumni 


• Transforming alumni relations 

Achievements 

The University’s interaction with the 

community was strengthened in 

2006 with the creation of several 

senior leadership positions. The Pro 

Vice-Chancellor (University Relations) 

has responsibility for oversight and 

development of the University’s 

marketing, alumni, cultural and 

community relations programs while 

a General Manager (Alumni Relations) 

will focus specifically on enhancing 

the University’s service to alumni. 

With a doubled number of alumni staff, 

significant progress was made during 

the year to expand contact with the 

University’s alumni. 


Improving the ADVANCE data base 

system to enable reconnection with 

more alumni in Australia and abroad 

was a key priority. Through newspaper 

advertising abroad and through back 

page lists in faculty alumni newsletters, 

a regular program to increase the 

percentage of contactable alumni 

and to trace lost graduates began. 

The number of contactable alumni 

has increased greatly, with a 

considerable improvement in the 

quality of information held. An Alumni 

Web Community (AWC) module was 

developed to build the platform for 

a lifelong email service for alumni, 

which will be launched at the March 

2007 graduations. 

Under a new program for more regular 

contact with alumni: 

• The University’s first Alumni Resource 

Guide was produced, outlining the 

wealth of services, publications and 

contacts available to alumni. The guide 

was distributed to 153,000 

alumni worldwide. 

• An ‘Alumni and Friends’ webpage 

was launched, and contact via our 

email newsletter GradNet lifted from 

8,500 to 26,793. 

• Beginning a series of more focussed 

alumni events, senior executives of 

the University hosted functions in 

London, Hong Kong, Bangkok, Los 

Angeles and New York, together 

reaching over 450 alumni abroad. 

• Plans were made and staff 

recruited to establish University 

offices in Singapore, Kuala Lumpur 

and Bangalore. 

Community Engagement 


• Focussing community engagement 

Achievements 

The University’s Cultural and Community 

Relations Fund made grants totalling 

$260,109 towards 22 projects involving 

the community. Support was provided 

to conferences, forums, publications, 

exhibitions, performances and festivals. 

Campus venues were provided without 

charge to more than 30 community 

groups. 

Encouraging high-level participation 

in external events, student groups 

such as the University Debating Team 

were assisted to attend international 

competitions, sponsorship was 

provided for internships under the 

Uni-Capitol Washington Program and 

20 elite student athletes were assisted 

to compete in international sporting 

competitions. More than 100 staff and 

students had volunteer or professional 

roles at the Melbourne Commonwealth 

Games in March. 

One of the University’s most important 

links with future students and the 

community is through the annual Open 

Day. In August, the University opened 

its doors to over 50,000 school students 

and their parents, a 20 percent increase 

on previous years, as curiosity about 

the University’s curriculum changes 

ran high. 

Dr Jane Goodall DBE, United Nations 

Messenger of Peace – an inspirational 

speaker during 2006.


The University continued its 

engagement with regional Victoria 

during the year. Outreach activities 

included an exhibition by the University 

Archives of photographs from the 1920s 

for the Benalla Family History project 

at the Benalla Art Gallery, continuing 

sponsorship of the Shepparton Arts 

Festival and events at the University’s 

Dookie campus. 

The Arts 


• Engaging society through the Arts 

Achievements 


reviewed and developed policies for 

making outstanding collections and 

other cultural resources, such as the 

Melbourne Theatre Company and 

Asialink accessible to wider audiences. 

Council approved a Cultural Policy 

Statement, clarifying how arts and 

cultural activities fit with the University’s 

aims, and setting out principles that, 

in future, will be used to ensure the 

University’s resources for cultural 

activities are more focussed on its 

objectives and used more explicitly 

for extending the University’s work 

to the community. 

Council also adopted the Policy and 

Minimum Requirements for the 

Management of Cultural Collections to 

set a strong framework for improved 

management of its collections. The 

Management Policy sets out guiding 

principles which assist the University 

to configure its many collections and 

cultural programs to best serve the 

whole community. 

In a move to make the collections 

more accessible, two new web sites 

were created. An overview of all the 

Cultural Collections is now presented 

at (http://www.unimelb.edu.au/ 

culturalcollections/), while a discrete 

site at(http://www.unimelb.edu.au/ 

malcolmfraser/highlights the Malcolm 

Fraser collection. 

The University’s collections exhibited for 

the first time an outstanding gift of rare 

early music scores, manuscripts and 

treatises. In honour of the generosity 

to the University of the late Louise 

Hanson-Dyer who had amassed the 

collection, the University’s Music Library 

was renamed the Louise Hanson-Dyer 

Music Library, to mark the occasion and 

a catalogue of the collection published. 

In 2006, the University continued to 

provide access to theatre, music and 

visual arts that enrich and add to the 

diversity of Australian culture. The 

Faculty of Music and the Victorian 

College of the Arts offered an extensive 

program of performances and 

exhibitions to the public, drawing on 

their extensive staff and student talent. 

Particularly notable was the world 

premiere performance by the Faculty 

of Music in April of Vivaldi’s Dixit 

Dominus, a work discovered at Dresden 

by Faculty musicologist Dr Jan Stockigt. 

The University’s engagement with 

partner arts organisations continues 

to be intensive and extensive. 

Among these: 

• With the National Library of Australia, 

the exhibition, Facing Percy Grainger, 

ran at the National Library, Canberra, 

drawing chiefly on the University’s 

Grainger Museum collection; 

• The Australian Literary Review was 

launched to explore the work of the 

country’s leading writers and thinkers 

across a wide range of disciplines. 

Published monthly in The Australian, 

the Review is co-sponsored by the 

University, Melbourne University 

Publishing, the Australia Council 

and News; 

• Melbourne University Publishing 

published 73 titles, continuing to build 

its business and its publishing list. 

Notable successes under the MUP 

imprint included The Wayward Tourist 

by Mark Twain (introduction by Don 

Watson), A Conga line of Suckholes 

by Mark Latham and My Israel 

Question by Antony Lowenstein, 

and, under the Miegunyah Press, 

imprint books included The Student 

Chronicles by Alice Garner, 

Botanical Riches by Richard 

Aitken and The New McCulloch’s 

Encyclopaedia of Australian Art; 

• The Melbourne Theatre Company 

maintained its commitment to new 

Australian work by including in its 

season plays by Joanna Murray- 

Smith (Female of the Species), 

Tony McNamara (The Give and Take), 

Steven Rogers (Ray’s Tempest) and, 

Jane Bodie (A Single Act). The 2006 

Season had subscriber numbers at 

record levels for the sixth season in 

a row; 

• The Ian Potter Museum of Art, which 

houses one of the largest collections 

of art in Victoria, hosted a diverse 

and exciting program of exhibitions, 

often linked closely with City of 

Melbourne events. Game on!: Sport 

and Contemporary Art was part of 

the 2006 Commonwealth Games arts 

festival, while Under the Burning Sun 

of the Colony was an integral part of 

celebrations for the 150th Anniversary 

of the eight-hour day movement. 

Other notable exhibitions included: 

Norman Lindsay: Selected works 

from the University of Melbourne 

Art Collection and Creation Tracks 

and Trade Winds: Groote Eylandt 

bark paintings from the University of 

Melbourne Art Collection, funded by 

the Gordon Darling Foundation; 

• The University became a founding 

member of the new Victorian Opera 

Company, providing $200,000 towards 

its inaugural season in 2006; 

• With the Melbourne Symphony, the 

Sidney Myer Free Orchestral Concerts 

in February again attracted crowds 

of over 40,000 to the Sidney Myer 

Music Bowl; 

• Meanjin, restyled as ‘The University of 

Melbourne’s Quarterly’, was assisted 

to lift its circulation. 


39

40 

Intellectual Leadership 


• Promoting intellectual leadership 

Achievements 

Participation by the University of 

Melbourne’s staff in public debates 

increased during 2006. The University’s 

academics are in constant demand 

as authoritative and independent 

commentators on significant public 

issues. University-sponsored lectures 

and seminars help to raise public 

awareness and promote community 

debate on a range of issues of local and 

global, academic and social significance. 

Innovative and high profile contributions 

to debate during 2006 included: 

• A wide range of staff writing opinion 

pieces and being invited to provide 

comment for news media outlets; 

• 187 public lectures presented on 

campus by prominent local, national 

and international speakers. Highlights 

amongst the lectures were: 

The 2006 Chancellor’s Human 

Rights Lecture ‘Human Rights in 

Tough Terrain’ by Ms Kate Gilmore, 

Executive, Deputy Secretary General, 

Amnesty International; 

‘Does Religion Cause Violence?: The 

Struggle for Peace’ by 

Dr William Cavanaugh, University 

of St Paul-Minneapolis, USA; 

‘Hope for Youth Around the World’ 

by Dr Jane Goodall DBE, Founder of 

the Jane Goodall Institute and United 

Nations Messenger of Peace; 

‘Why David Hicks will not receive a 

Fair Trial Come His Day in Court‘ by 

Major Michael Mori, Defence Lawyer 

for David Hicks (US Marine Corps); 

‘Food: Why Our Choices Matter’ 

by Peter Singer, University of 

Melbourne; and 

‘Thinking about Torture’ by Professor 

Raimond Gaita, King’s College, 

London; 


• The Miegunyah Distinguished 

Fellowship Program of public and 

specialist lectures on topics of 

general interest to the University 

by internationally distinguished 

academics; 

• Melbourne Up Close podcasts: 

these and other public lectures 

from the Dean’s Lecture series are 

available in podcast format from 

faculty web sites; 

• Major public fora such as 

The Economic & Social Outlook 

Conference with The Australian, 

Future Melbourne with Museum 

Victoria, the Critical Issues Business 

and Public Policy Conference and 

SecureCON, one of Australia’s leading 

IT Security conferences. 

Commercialisation 


• Generating income from knowledge 

Achievements 

In 2006 the University recast its 

commercialisation aims and targets. 

In three key changes the University 

separated its commercialisation 

activities from research, a new approach 

to intellectual property (IP) was 

introduced and a new Commercialisation 

Strategy was adopted by Council 

for implementation in 2007. 

Overall responsibility for the 

strategic and policy direction for 

commercialisation now resides with the 

Deputy Vice-Chancellor (Innovation and 

Development). Operational responsibility 

has devolved to the new position of 

Vice-Principal (Commercialisation). This 

role provides a single point of contact 

for commercialisation issues internal 

and external to the University. 

Support services for commercialisation 

activities during the year were 

predominantly provided through 

Melbourne Ventures Pty Ltd (technology 

transfer), Multimedia Licensing & 

Technology Contracts Unit (courseware 

and software technologies distribution) 

and School of Enterprise (education 

programmes and consulting). 

Melbourne Ventures 

In 2006 the University’s 

commercialisation vehicle Melbourne 

Ventures continued to build its 

technology commercialisation 

capabilities and activities, adding to 

its team through the appointment of a 

specialist Intellectual Property manager 

and commercialisation executives. 

Technologies developed at the 

University continued to find use in a 

wide range of markets, from medical 

devices and human health to animal 

biotechnology. Royalty income from 

licensees for the year was $5.4 million, 

an increase of 25 percent over 2005. 

The University’s start-up activity was 

maintained with the creation of three 

new companies. More than $4 million 

of Venture Capital was raised from 

a broad and diverse investor base. 

Highlights included the establishment 

of Igavax, a company formed to develop 

a novel technology for nasal delivery 

of important vaccines, and a major 

investment into Intelliguard, which 

is developing an innovative approach 

to securing internet sites against 

malicious traffic. 

University-based start-up Hatchtech 

achieved recognition with the award 

of the Biotechnology/Life Sciences 

Prize and State of Victoria Prize at the 

Knowledge Commercialisation Australia 

Expo 2006 for its development of a 

breakthrough treatment for human 

headlice. 

Laureate Professor at the University’s Centre 

for Applied Philosophy and Public Ethics, 

Peter Singer’s public lecture on ‘Food: Why 

Our Choices Matter’ was a 2006 highlight.


Multimedia Licensing & 

Technology Contracts Unit 

(MLTCU) 

During the year MLTCU continued to 

be responsible for the management of 

intellectual property issues, contractual 

negotiations and agreements relating to 

educational courseware and specialised 

software technologies including 

multimedia, and for their showcasing 

and commercial distribution. 

The University now has a strong 

reputation and global presence for its 

courseware materials and software 

technologies, with product reach 

extending though Europe to South and 

North America, to South-East Asia, and 

to the Middle East. University software 

products featured prominently at the 

2006 UK BETT Educational Technologies 

Show in London. 

Licensees of educational courseware 

and software products include major 

Australian and international private and 

public sector organisations. 

School of Enterprise 

The School of Enterprise provides 

customised education to the business 

sector. In 2006 the School’s academic 

and business operations were 

consolidated into the University’s 

processes, enabling the School to 

capitalise on the increasing demand 

nationally and internationally for tailored 

corporate programs. 

During the year the School expanded 

its programs and services to involve 

individual staff and departments from all 

faculties of the University. Activity in the 

Malaysian corporate market increased 

and there was flow on to Indonesia. 

Activity in association with specific 

industry associations in the health 

education sector also increased, as did 

success in customised education and 

other service contracts with State and 

Federal government departments. 

More than 500 postgraduate students 

enrolled in courses during the year, 

55 percent domestic and 45 percent 

international. 

Positioning for the Future 

Growing Esteem recognises that the 

University must improve its capacity 

to commercialise. During the year 

a comprehensive review of the 

University’s commercialisation activities 

resulted in the development of a 

comprehensive new Commercialisation 

Strategy containing recommendations 

with respect to: 

• Objectives the University should set 

for commercialisation; 

• Structures, policies and processes to 

improve the efficiency, effectiveness 

and governance of commercialisation 

activities; 

• Operational improvements, including 

potential new initiatives to enhance 

commercialisation activities; and 

• Performance and funding targets. 

The Strategy was approved by Council 

for implementation in 2007. 

Moreover, in late 2006, after 

extensive consultation, Council 

adopted a new approach to the 

management of intellectual property, 

aimed at simplifying the process of 

commercialisation whilst retaining 

strong incentives for academic staff 

to get involved. Through a revised 

Intellectual Property statute, the 

University asserts ownership of 

all intellectual property, other than 

scholarly works, created by academic 

staff. The benefits of exploiting IP are 

shared between the University and the 

creator. This change is congruent with 

Commonwealth law, and reflects the 

expectations of national granting bodies. 

A revised Invention Disclosure policy 

was also adopted. 

External Partnerships 


• Developing partnerships with 

business, government and 

international bodies 

• Investing in development 

and fundraising 

Achievements 

A strategic rethink about partnerships 

with business, government and external 

groups was explored throughout 2006. 

The University seeks to build strong 

partnerships with business and the 

community, based on a shared vision 

where the University can add its 

intellectual base, expertise, and energy 

to the strengths of its partners in order 

to address significant community 

outcomes. The University began 2006 

by redefining relationships, connecting 

with external groups in a more strategic 

and systematic manner. The University’s 

long-standing relationship with 

Australia’s largest biopharmaceutical 

company, CSL Limited, was 

strengthened during the year when 

CSL entered into a research innovation 

partnership agreement providing for 

up to 50 of its scientists to relocate 

to the Bio21 Institute. Two-way, mutually 

beneficial interaction will be a major 

focus for 2007. 

Investments in development and 

fundraising are discussed in Section 7 

of Binding the Strands Together on p 57. 

Outlook 

Coming to terms with what knowledge 

transfer means for the University has 

led to the development of a first broad 

framework which will guide progress 

in 2007. Embedding knowledge transfer 

will be the focus for 2007. This will 

involve not just changes in University 

curriculum to build a knowledge transfer 

component into new generation degrees, 

research, processes and operations, but 

also launching a new set of knowledge 

transfer programs. Commercialisation 

investment and outcomes will be 

boosted through operational 

improvements and new initiatives under 

the Commercialisation Strategy. 


41

students Sennye Mogale and Maxwell Nhlatho with 

the ‘father and mother, of the program, 

Professor Roger Short and Ms Margot Collins. 

Eight Botswanan students study medicine at the 

University each year before before returning 

home to do their internships. 

The Botswana Aids Melbourne (BAM) Medical 

international 

engagement/ 

International engagement is integral to the 

University retaining its position as one of 

the finest universities in the world. 


“ 

Research considerations and student 

exchange opportunities remain the main drivers 

in establishing partnerships. 

” 



Frank Larkins 

Deputy Vice-Chancellor 

(International Relations) 

Enhancing the University’s international perspective 

Target 

Outcome 

Articulate a clear internationalisation strategy and make progress towards its goals. 

A new International Plan has been adopted by Council for implementation in 2007. The University is strengthening its 

profile in strategically important regions overseas. New offshore offices in Singapore and Kuala Lumpur have opened, 

providing an important interface between University representatives, their key markets and alumni. The offices will 

enhance institutional linkages and collaborations. In November 2006 a high level University delegation travelled to 

Malaysia, Hong Kong and Singapore to highlight the benefits of the Melbourne Model to international recruitment 

agencies and alumni. 

Protecting and building international student demand in the context of 

Melbourne Model implementation 

Target 

Outcome 

Target 

Outcome 

Renew international student marketing and recruiting. 

Following a review of marketing and international student recruitment, the University will introduce centralised 

undergraduate selection with a single agency responsible for selection for all the new Melbourne Model undergraduate 

degrees. The management of international postgraduate applications will continue in the short term to follow the 

existing model where central International Admissions manages applications, and faculties administer selection 

procedures. However, further reviews in 2007 may lead to a more centralised selection model. What the University 

aims to achieve with these procedural changes is a more responsive selection process. 

Increase research higher degree applications from international students. 

Increases in both applications and acceptances from international postgraduate students for coursework and research 

higher degree programs were recorded in 2006. Applications from prospective international postgraduate students 

increased by over 16 percent from 2005. International postgraduate acceptances increased by close to 28 percent. 

International engagement is integral 

to the University retaining its position 

as one of the finest universities in 

the world. In each of the three stands 

of the Growing Esteem triple helix, 

international engagement continues to 

be a driving force. In Research, the focus 

has been on continuing to build the 

University’s international research profile 

by producing world-significant research 

and attracting increased international 

research funding. In Learning and 

Teaching, the priority has been to make 

the Melbourne Experience a truly 

international one by internationalising 

the curriculum, introducing strategies 

to meet the different needs of our 

culturally diverse international student 

population and producing globally aware 

graduates with a rich understanding 

of other cultures. Knowledge Transfer 

activities have concentrated on 

revitalising international alumni networks 

and developing our global profile through 

strengthened engagement with major 

international companies. 

Rankings 


• Build the University’s international 

research profile 

Achievements 

The strength of the University’s 

international standing was affirmed 

during the year with the overall ranking 

of Melbourne at No 22 in the world by 

the Times Higher Education Supplement 

(THES) 2006 World University Rankings. 

In terms of peer review, the University 

ranked even higher, as one of the top 

10 universities in the world, putting it 

in company with Harvard, Cambridge 

and Oxford Universities. The University 

was again ranked among the top 100 

universities in the world in the Shanghai 

Jiao Tong University Academic Rankings 

of World Universities 2006. Melbourne 

was one of only two Australian 

universities in the top 100, ranked at 

No 78, up from No 82 in 2005. 

Restructure 


• Strengthen international marketing 

and recruitment 

• Embed an international perspective 

into each of the three Growing 

Esteem Strands 

Achievements 

In 2006 the University took a more 

systematic approach to governance 

of its international agenda. Overall 

responsibility for the strategic and policy 

direction for international activities now 

resides with the newly created position 

of Deputy Vice-Chancellor 

(DVC) (International). 

The DVC (International) is supported 

by the International Committee, 

established during the year as the 

key policy and advisory body to Council 

and management on coordination of 

international activities across 



43

Operational support is provided by 

the new International Development 

Division, vested with responsibility 

for International Markets, National 

Markets and the ongoing linkage with 

Asialink. The new leadership will drive 

the University’s overall international 

recruiting, offshore offices, international 

admissions and international relations 

agenda. The Director is mandated with 

developing an integrated approach 

to these activities and seeking to 

ensure the effective management 

of international students during the 


A number of initiatives are already 

underway to strengthen our profile in 

strategically important regions overseas. 

New offshore offices in Singapore and 

Kuala Lumpur are open for business 

with arrangements for a Bangalore 

office well underway. Local and 

Australian staff are being appointed to 

the offices. Along with existing offices 

in Jakarta and Bangkok, they will play an 

important role in supporting education 

agents to coordinate in-country 

marketing and recruitment, in particular 

by communicating the Growing Esteem 

strategy and the new generation 

undergraduate courses under the 

Melbourne Model to local stakeholders. 

These offices provide an important 

interface between the central and 

faculty University representatives and 

their key markets. They will also work 

to enhance institutional linkages and 

collaborations, increase engagement 

with alumni, find new opportunities 

for fundraising activities, raise the 

University’s profile and provide policy 

advice for focussed engagement. 

Following a review during the year 

of the University’s administration of 

international student applications, 

the University is moving towards 

a more centralised undergraduate 

selection process. A single agency, 

International Admissions, will have 

selection responsibility for all of the new 

generation undergraduate degrees. 

44 


The management of international 

postgraduate applications will continue 

to follow the existing successful model 

where responsibility is shared between 

central International Admissions, 

which manages applications, and 

faculties, which administer international 

postgraduate selection procedures. 

During the year an International Plan 

was developed in consultation with 

faculty, administration and other 

University-affiliated stakeholders. The 

Plan integrates the international agenda 

into the three strands of the triple helix, 

attending to international standards, 

rankings, shifting market conditions 

and emerging players in international 

education. The Plan will be updated 

annually by the DVC (International). 

Meanwhile, an International Strategic 

Engagement Fund has been established 

to support priority projects for regional 

engagement, bilateral and network 

relationships, international humanitarian 

and community-based knowledge 

transfer activities and joint study centres. 

International Students 


• Increase international postgraduate 

student enrolments 

Achievements 

Pushing against the national trend 

of declining international student 

enrolments, the University was again 

successful in attracting a large number 

of well-qualified students from overseas 

to its programs. Of the 44,000 students 

enrolled at the University, over 10,000 

(25.9 percent of the student cohort) are 

international students from more than 

100 countries throughout the world. The 

large majority of international students 

come from Asian countries, with China, 

Malaysia and Singapore the most 

strongly represented. 

2006 recorded increases in both 

applications and acceptances from 

international postgraduate students for 

coursework and research higher degree 

programs. A total of 6,121 applications 

were received from prospective 

international postgraduate students (872 

more than in 2005). Of these, 4,676 were 

applications for postgraduate coursework 

(504 more than in 2005) and 1,445 were 

applications for research higher degrees 

(368 more than in 2005). International 

postgraduate acceptances also increased 

to 1,413 for coursework (up from 1,064 

in 2005) and 243 for research higher 

degree (up from 222 in 2005). 

Bilateral and 

Network Engagement 


• Develop the University’s 

international engagement 

Achievements 

The University continued in 2006 to 

take a strategic approach to its bilateral 

and network engagement, building 

enduring partnerships with highly 

ranked academic institutions in a variety 

of countries. Research considerations 

and student exchange opportunities 

remain the main drivers in establishing 

partnerships. 

The University has established over 

80 formal bilateral relationships for 

academic cooperation and exchange at 

university level. Eight new Universitylevel 

agreements for academic 

cooperation and exchange were signed 

in 2006 with: the Technical University of 

Berlin, University of Vienna, University 

Ca’ Foscari, University of Granada, 

University of Salamanca, University of 

Latvia, University of Helsinki and Sultan 

Qaboos University. 

The University‘s bilateral relationships 

provide the framework for the 

development of a wide range of 

activities including joint degree 

programs with the National University of 

Singapore, China Agricultural University 

and the Nanjing Agricultural University, 

and joint research projects such as 

the Australia-China Centre on Water 

Resources Research. Details of the 

new Centre can be found in the 

Research section of this Report on p 18.

international 

engagement/ 

Universitas 21 continues to expand its network and activites 

Melbourne was a founding member in the establishment of Universitas 21, an international 

network of research-intensive universities from the People’s Republic of China, Canada, the United 

Kingdom, Europe, Singapore, New Zealand, the USA and Australia. University College Dublin and 

Tecnológico de Monterrey were admitted as members during 2006, bringing the total number of 

members to 19. Now in its ninth year, the network provides a framework for member universities 

to pursue collaborative and entrepreneurial activities. 

As a collegial network, U21 continues to 

promote international collaboration in a 

number of areas. The University has taken 

a leading role in increasing and enhancing 

student mobility across the network. 

The U21 Student Mobility Network 

continued in 2006 to work towards 

achieving ambitious targets. The numbers 

of students participating in U21 student 

exchanges are predicted to increase 

from 1166 in 2004 to 2411 by 2008. 

At Melbourne the number of students 

undertaking a period of exchange at U21 

partner universities increased from 85 

in 2004 to 146 in 2006. 

The U21 Summer School program is 

now an established and successful 

part of U21 collaboration. Melbourne 

students participated in the third U21 

Summer School, which was held at 

the University of Hong Kong with the 

theme of ‘Asia as the Global Future’. 

The aim of the school was to enhance 

an awareness of the importance of Asia 

in world affairs, through knowledge 

acquired from lectures and seminars 

combined with an understanding of 

real-world problems through field trips 

in Hong Kong, Macau and Beijing. 

The Universitas 21 Undergraduate 

Research Conference was attended by 

33 delegates, from all over the world, 

with Melbourne represented by three 

undergraduate students. 

The U21 Program in Global Issues 

entered its second pilot year 

in 2006. This multi-disciplinary, 

undergraduate award, is offered jointly 

by five Universitas 21 institutions 

– the Universities of Auckland, British 

Columbia, Hong Kong, Melbourne and 

Nottingham. Students are encouraged 

to develop globally relevant knowledge 

and skills through a formal course of 

study in the form a certificate, diploma, 

or as a minor component of the main 

degree while completing a standard 

undergraduate degree. Students are 

expected to complete half of the 

Program through at least one other 

partner university, by either undertaking 

online modules or by studying overseas 

on exchange. 

Significant progress was made in 

2006 on the U21 Water Network 

Collaborative Research Project led by 

Melbourne’s Professor John Langford 

and involving Melbourne, Hong Kong 

University, Nottingham, Birmingham, 

Glasgow and the University of Virginia. 

Seed funding of $US135,000 over 

two years was allocated by U21 to 

support this group, whose aim is to 

provide an independent international 

forum for government, industry and 

the community to address the complex 

issues of water sustainability. 

The seventh annual meeting of the 

U21 Health Sciences group was 

attended by 90 delegates from 15 

member universities. At this meeting 

U21 entered into a Memorandum 

of Understanding with the Swinfen 

Charitable Trust to foster collaboration 

between U21 Faculties of Medicine and 

Health Sciences and hospitals operated 

by the Trust in a number of developing 

countries. This will assist health science 

students to undertake placements in 

trust-supported hospitals in developing 

countries to provide medical expertise 

to remote and often understaffed 

hospitals around the world. A workshop 

on global e-health updated members on 

U21 activities, such as telehealth for the 

underserved initiative, e-health policy; 

and a proposed e-book. 

Other collaborative initiatives 

progressed in 2006 include: 

• A U21 conference hosted by 

Tecnologico de Monterrey on Online 

Learning: Practice, Challenges and 

Prospects at which the U21 Centre 

for Research on Online Learning and 

Pedagogy was also launched with 

a view to providing international 

leadership in research in online 

learning and pedagogy. 

• The U21 Museums Group, headed 

by Melbourne’s Professor Jaynie 

Anderson, developing a web presence 

for the collections and museums in 

Universitas 21. The first phase of the 

project undertaken in 2006 created 

an online exhibition – Museums 

Gateway – A Hidden Heritage via the 

Universitas 21 web site, with links 

to mini-exhibition pages for each 

participating institution. Each miniexhibition 

includes a discussion of the 

pieces gathered from museums at the 

represented institution, depicted by 

high-quality images and descriptions, 

text and other specialised 

technologies such as a program that 

enlarges details. 


45

Of particular significance, in 2006 

Melbourne entered into a partnership 

with Nanjing University to establish The 

Confucius Institute at the University 

of Melbourne. This is one of a global 

network of 100 such institutes to 

be established world wide by the 

Government of the People’s Republic 

of China to spearhead the teaching 

of the Chinese language and culture 

worldwide, and to act as a vehicle 

through which to strengthen economic 

and business ties. The Chinese 

Government will provide substantial 

funding for three years for language and 

cultural exchange and training programs, 

with the Victorian State Government 

also providing substantial funding for 

three years for advanced programs 

to enhance business and trade 

relations between the State and China. 

Academic programs will be overseen 

by co-directors from the University of 

Melbourne and Nanjing University. A 

Co-Director of Corporate Engagement 

has been appointed to supervise 

business and trade programs. 

The University also seeks to establish 

strategic relationships with international 

business and industry. In 2006 the 

University signed an agreement with 

Satyam Computer Services Ltd, a major 

Indian IT company and leading global 

consulting and information technology 

services company. The agreement 

provides for Melbourne Information 

and Communication Technology 

students to undertake a software 

development internship with Satyam 

each year, offering students global 

opportunities for real-world experience. 

The new agreement also provides 

opportunities for collaborative research 

on cutting-edge IT solutions such as grid 

computing. 

International Visits 

and Visitors 

Increasing international activity was 

reflected in the 596 international 

visitors hosted by the University during 

the course of the year and the many 

international academics researching 

at the University. Over 100 visiting 

academics representing 28 different 

countries attended a reception for 

international visitors hosted by the 

Vice-Chancellor during the year. 

Distinguished international visitors 

during 2006 included the Minister 

of Science and Technology from 

the People’s Republic of China, the 

President of the Chinese Academy of 

Science, Ministers from Malaysia, Sri 

Lanka and Turkey, the Secretary General 

of the Association of Pacific Rim 

Universities, representatives from many 

of Melbourne’s partner universities and 

Ambassadors, High Commissioners and 

Consul-Generals representing diplomatic 

missions from many countries around 

the world. 

The international visits of the Vice- 

Chancellor and the Deputy Vice- 

Chancellor (International) during the 

year reflect the University’s shift to a 

more systematic and regional focus to 

international engagement. 

In March the Vice-Chancellor 

accompanied the Prime Minister on 

a visit to India with the Australian 

Business Delegation. This was followed 

by a visit in June to the People’s 

Republic of China. The Vice-Chancellor 

spoke at the opening of the Free Trade 

Agreement Conference in Shenzhen, a 

collaboration between the University’s 

Asian Economics Centre and the China 

Development Institute. In October, the 

Vice-Chancellor made a special visit 

to the Sultanate of Oman to formally 

thank the Sultanate, on behalf of the 

University, for endowing the Sultan of 

Oman Chair in Arab and Islamic Studies. 

The Deputy Vice-Chancellor 

(International) visited Singapore, 

Malaysia, Thailand, South America and 

the Middle East to gauge developments 

in the international student market 

and to assess new opportunities 

for postgraduate and research 

collaborations with local universities, 

research bodies and government 

departments. 

The visit to South America represented 

the first major visit by a delegation 

from the University of Melbourne to 

that region. The Deputy Vice-Chancellor 

was accompanied by a number of 

Faculty representatives. On the basis 

of this visit, the University will develop 

a strategy for enhanced engagement 

between the University of Melbourne 

and South America. 

Association of 

Pacific Rim Universities 

The University was admitted as the 

37th member of the Association 

of Pacific Rim Universities (APRU) 

during 2006. Membership is based on 

academic excellence, research intensity, 

global outlook and innovation and will 

create considerable opportunities 

through a variety of programs available 

to students, researchers and academic 

fellows, as well as entrepreneurial 

programs focusing on knowledge and 

technology transfer. The Vice-Chancellor 

has been appointed to the APRU World 

Institute Governing Board. 

International Accreditation 

The University of Melbourne has 

joined an elite international group of 

37 universities teaching Veterinary 

Science after being granted prestigious 

accreditation by the American Veterinary 

Medicine Association (AVMA). The 

University is one of only seven AVMA 

accredited veterinary schools outside 

North America. 

46 


international 

engagement/ 

Asialink 

Asialink, a non-academic Department of 

the University, continued to strengthen 

its reputation as Australia’s leading 

centre for the promotion of public 

understanding of Asia and of Australia’s 

role in the Asian region. Through an 

active program of events within Australia 

and Asia, it significantly increases the 

University’s reputation as an Asiafocussed 

and engaged institution. 

Asialink also strengthens coordination of 

University-wide programs and activities 

under the banner ‘Melbourne Asia’, 

helping to raise community awareness 

of the initiative. 

In 2006 Asialink: 

• Held the prestigious ‘Asialink 

Conversations’ in Vietnam to coincide 

with the APEC Leaders’ Meeting. 

Sponsored by the University, BHP 

Biliton and Singapore Airlines, 

the initiative brought 30 leaders 

from ASEAN together to discuss 

contemporary issues facing the region. 

• With the University’s Asia Insitute, 

launched the ‘Melbourne Asia’ web 

site (www.unimelb.edu.au/asia) 

providing links and information 

about the University’s Asia initiatives, 

research expertise and activities. 

The web site will be utilised by 

current students, possible future 

local and international students, 

staff, and by the general community 

interested in Asia issues. 

• Held an extensive program of public 

events at the University including: 

- 85 Asia-focussed public events 

such as public lectures, conferences, 

private roundtables and private 

dinners and lunches, with almost 

8,000 attendees. 

- 37 partner collaborations (including 

ANZ, Australia Council of the 

Arts Friendship Society, Islamic 

Council of Victoria, the Vietnamese 

Community of Australia, ACTU, 

Lowy Institute for Public Policy, 

The Age, Multimedia Victoria and 

PricewaterhouseCoopers.) 

- 20 presentations from Ambassadors, 

Ministers and Members of Parliament 

• Published ‘Access Asialink’ 

e-newsletters and ‘Asialink News’ 

highlighting Asia-focussed events 

and initiatives at the University and 

in the community to 4000 readers. 

In programs aimed at engaging the 

Australian community with Asia: 

• Asialink’s Arts Program sent 36 

artists on residencies (in literature, 

performing arts, visual arts and 

literature) to the Asian region; held 

six visual arts exhibitions across Asia 

with over 28,000 visitors and took 

10 Australian authors to Asia for its 

Literature Touring program. 

• Asialink’s Education Program sent 

over 200 Australian teachers to China, 

India, Korea, Japan, France, Germany, 

Italy and Mexico on its Access Asia 

and Endeavour Language Programs. 

One hundred and forty-five Australian 

teachers travelled to China, India, 

Korea, Vietnam and Cambodia, while 

32 teachers from Korea, India and 

Indonesia visited Australia on Asialink 

programs. 

In 2006 over 100 external (non Asialink, 

but Asia focussed) events were held 

at the University’s Sidney Myer Asia 

Centre, attracting more than12,000 

attendees. The events involved 30 

external event partners ranging from 

the Japan Foundation to the Royal 

Australian Institute of Architects. 

Regional Initiatives 

Through the University’s Department of 

Psychiatry, the Centre for International 

Mental Health, the Australian 

International Health Institute (AIHI) 

and Asialink, the University has for 

many years worked in collaboration 

with St Vincents Mental Health Service 

as partners in the Asia – Australia 

Mental Health Consortium (AAMH) 

to strengthen mental health in the 

Asia-Pacific region. 

In 2006 the AAMH worked with senior 

mental health leaders including hospital 

directors and senior government leaders 

in China, Malaysia. Korea, Japan and 

Thailand on various projects including: 

• The innovative ‘686’ community 

based mental health service program 

involving 60 sites in both urban and 

provincial areas throughout China. 

• A three stage training program 

for Mental Health professionals 

in Malaysia. 

• A delegation of Seoul government 

administrators to the University for 

training in community mental health 

service delivery. 

In another regional initiative, the 

University’s Asia Institute is leading a 

consortium of eight Australian and four 

Indonesian universities in a collaborative 

program to help re-build research 

capacities in the devastated Indonesian 

province of Aceh. This three-year 

research program is supported by grants 

of $3 million from AusAID and the Myer 

Foundation, and involves staff from a 

wide range of disciplines. 

Outlook 

During 2007 the University will 

implement the strategies set out in the 

new International Plan. In particular, 

strategic engagement frameworks will 

be prepared for regional sectors. These 

will include promoting Research Higher 

Degree opportunities in Malaysia, 

finalising establishment of the offshore 

office in Bangalore, India and working to 

improve the benefits of the Go8 Berlin 

office to Melbourne. The University 

will become actively engaged with its 

partners in the APRU and will develop 

strategies to increase study abroad 

and student exchange opportunities. 


47

inding the 


Binding the three strands of Melbourne’s 

academic activities under the Growing Esteem 

strategy requires a cohesive effort from all areas 

of the University’s operations. 

48 


“ 

The Melbourne Model of undergraduate 

programs and specialist graduate training will 

provide two separate entry points at which 

students can qualify for admission. 

” 

Mr Ian Marshman 

Senior Vice-Principal (Administration) 


Develop policy options to ensure affordability and the widest possible access and support for 

talented students, regardless of their circumstances 

Target 

Outcome 

Target 

Outcome 

Renew student equity and access policies. 

The Melbourne Access program of up to 20 percent CSP places for students meeting access and equity criteria 

will be continued at undergraduate level and will be expanded to professional graduate programs. An expanded 

program of access and equity scholarships is under development. 

Make progress on government policy change. 

Government approval has been received for the transfer of undergraduate CSP places to graduate CSP places. 

The University continues to lobby for changes to the Youth Allowance program. 

Target 

Outcome 

Launch a major fundraising campaign with a focus on scholarships. 

The Advancement Strategic Plan adopted in 2006 sets priorities to be addressed in preparation for coordinated, 

campus-wide fundraising, and lays the groundwork for the launch of a major campaign coordinated by the newly 

created position of Director (Advancement). Development of an expanded scholarships program, to be supported 

by the campaign, is in progress. 

Alignment between administrative capacities and Growing Esteem priorities 

Target 

Outcome 

Launch a coherent brand identity for the University. 

Brand architecture was put in place during the year, with refined logo and signage formats and the development 

and articulation of the University Brand Plan. A Brand Guidelines manual, Brand Extranet and Brand Compliance 

system is at an advanced stage for launch in March 2007. 

Target 

Outcome 

Target 

Outcome 

Target 

Outcome 

Ensure that the 2006 Enterprise Bargaining Agreement supports Growing Esteem. 

The 2006 Enterprise Bargaining Agreement supports Growing Esteem by linking salary increases to the 

achievement of targets in relation to teaching and learning, research performance and student load and providing 

for increased flexibility in the nature of engagement of staff and staff classifications. It establishes a Workload 

Management Framework for the planning, allocation and management of staff workload during transition to the 

Melbourne Model. 

Revise recruitment, performance management, reward and promotions criteria to reflect Growing Esteem priorities. 

Development of the Reward, Recognition and Retention for Professional Staff policy is underway to ensure 

that recruitment, performance management and promotion criteria reflect Growing Esteem priorities, with 

links between reward, promotion, remuneration and workloads. Revised academic promotion criteria have 

been drafted, with knowledge transfer contributions included in the re-worked academic reward structure. 

Begin to develop a new Masterplan to support Growing Esteem, agree on a new learning centre model and 

commence work on the first centre. 

A new Masterplan to support Growing Esteem is currently under development and priorities and funding options 

will be considered in 2007. Sites for the first student learning hubs have been identified, and a schedule for future 

development formulated. 


49

Performance Against 2006 Targets continued 

Cost-effective alignment of services with evolving University management structures and 

strategic priorities 

Target 

Outcome 

Target 

Outcome 

Meet financial targets. 

2006 results show an operating surplus after tax for the University and its subsidiaries of $90 million and 

combined operating income of $1.28 billion. Total fee revenue target of $246 million set for 2006 was exceeded 

by $11 million. Income from Fees and Charges increased by $20.68 million from 2005 and Investment Income 

by $15.31 million. 

Improved management systems. 

Improved management systems became operational in 2006. Themis (Research), the Content Management 

System and the Student Portal will enhance the University’s capacity to capture and manage data in an effective 

manner and enable students to interact with the University administration at a central and faculty level online. 

Approval was given to purchase and implement a new student system which will be operational in 2009. 

Implementation of the Shared Services initiative continued, considering the optimal structures for delivery of 

information technology, financial operations, marketing, international and academic support services. 

Target 

Outcome 

Consolidate and simplify University planning processes. 

University planning processes were simplified and accountability cycles reviewed. From 2007 the University 

will have a single annual plan containing goals and targets, supplemented by more detailed plans in areas of key 

strategic significance. Operational planning will be managed centrally through the Budget and Capital Plans, and 

at faculty level, through Business Plans. 

50 

1. Equity and Access 

The University’s strong commitment to 

increasing accessibility is a core concern 

as the Melbourne Model is developed. 

Students from low-income families 

and other equity groups currently face 

two obstacles – academic and financial 

– as they seek to gain admission to the 

University. The Melbourne Model of 

undergraduate programs and specialist 

graduate training will provide two 

separate entry points at which students 

can qualify for admission. Admission to 

professional degrees at the graduate 

level means that performance as an 

undergraduate – whether at Melbourne 

or elsewhere – and not just Year 12 

ENTER, will govern access. 

Access Melbourne 

Meanwhile, the University’s Access 

Melbourne program already commits 

up to 20 percent of the University’s 

total Commonwealth supported 

undergraduate intake to students who 

experienced disadvantage during their 

secondary schooling and provides one in 

five of these students with a scholarship 


under the most generous scholarship 

scheme in Australia. 

2006 saw the second year of the Access 

Melbourne program. Access Melbourne 

enrolments in 2006 totalled 964, 

representing 19.5 percent of CSP intake. 

Of these, 198 were awarded Melbourne 

Access Scholarships. Applicants were 

eligible to apply under Melbourne 

Access in one or more of seven 

categories of disadvantage: English 

as a Second Language; Indigenous; 

Difficult Family Circumstances; 

Socio-economic Disadvantage; 

Rurality; Under-represented School; 

and, Disability or Long-term Medical 

Condition. Guaranteed ENTERs and 

Clearly-in Ranks do not apply to Access 

Melbourne applicants, in recognition 

that structural disadvantage impacts 

on some students’ capacity to attain 

very high scores in Year 12. The 

academic progress of these students is 

monitored, with early signs indicating 

that they are performing at levels 

commensurate with regular cohorts. 

Other programs designed to increase 

the participation rates of students from 

disadvantaged backgrounds continued in 

2006. In particular: 

• the Melbourne Access Schools 

Program for Schools (MAP) for 

Year 10–12 students maintained a 

program to engage students with 

the University and foster ambitions 

for tertiary study. Two hundred and 

ten students participated in the MAP 

activities during the year, including 

students from the Goulburn Valley. 

Fifteen graduating MAP students 

were offered places at the University 


• the Uni Book, a widely-distributed 

booklet for early secondary students 

from under-represented schools. 

• Melbourne provided a university 

‘taster’ experience for students 

from both metropolitan and regional 

secondary schools. 


announced a $500,000 Drought 

Recovery Scholarships Program to 

assist regional and rural students whose 

families have been hit by drought.

inding the 


Student Support 

Aware that providing access is only 

one step in successful participation for 

students from equity backgrounds, the 

University has continued to develop 

its suite of resources and support 

programs for these students once they 

are on campus. Feedback indicates 

that these programs have assisted their 

social and academic transition to 


Most faculties designate specific 

contact officers in each of the equity, 

disability and mental health areas to 

assist students, as well as offering 

targeted programs to facilitate equity 

students’ integration into the academic 

community. Throughout 2006 the 

University continued to monitor faculty 

processes for rigorous and systematic 

identification of first-year students at 

risk academically. All faculties undertook 

such processes in a systematic manner. 

In addition, every faculty implemented, 

and evaluated specific transition 

programs for new students at both 

undergraduate and postgraduate levels. 

In 2006, the programs designed to 

improve the transition to university life 

for students from equity backgrounds 

included: 

• ‘Get an Edge’, a targeted orientation 

program which enables students from 

schools under-represented at the 

University of Melbourne to fit in and 

make contacts; 

• the Student Housing Access Program, 

which continued to successfully 

provide transitional and emergency 

accommodation to students, targeting 

those from the equity groups; 

• the ‘New to Melbourne’ web site; 

• a targeted newsletter program 

welcoming and supporting students 

from rural areas and underrepresented 

schools; and 

• the ‘First_Year@Unimelb’ blog, new 

in 2006, which provided affirmation 

and a sense of community through 

the online diary of seven first-year 

students, four of whom were from 

under-represented backgrounds. 

Special attention is paid to the needs 

of disabled students under the 2004-07 

Disability Action Plan. The Pro Vice- 

Chancellor (Teaching, Learning and 

Equity) monitors and facilitates the 

work of the Disability Liaison Unit in 

implementing the disability standards 

set out in the Action Plan. 

Guidelines for Alternative Examination 

Arrangements (AEAs) for Students with 

Disabilities were approved in 2006, 

providing important advice to staff on 

the procedures for applying, approving 

and implementing AEAs at the Parkville 

campus. 

2. Indigenous Australians 

Melbourne has a priority to advance 

Indigenous higher education student 

participation and completion rates. 

Table 5 shows that while enrolment 

rates are still down from 2004’s five-year 

high, completion rates are increasing. 

A number of programs have been put 

in place to redress enrolment figures 

in 2007. 

CIE 

The Centre for Indigenous Education 

(CIE), the key support organisation for 

Indigenous students on campus, has 

played a vital role in achieving the above 

average completion rates of Melbourne 

Indigenous students. 

The CIE provides holistic services to 

Indigenous students, striving for a 

balance between academic, cultural 

and creative pursuits. The Centre 

has developed strong collaborative 

relationships with Aboriginal 

communities as well as Indigenous 

academic staff and units within 

the University. Thirty-five students 

participated in supplementary tuition 

provided through the Indigenous Tutorial 

Assistance Scheme in 2006. The CIE 

also strengthened links with Trinity 

Residential College during the year, with 

the number of Indigenous students in 

residency increasing from two in 2001 

to six in 2006. 

The Onemda VicHealth Koori Health 

Unit continued its successful mentoring 

program in Faculty of Medicine, 

Joseph Clifford, winner of an Access Melbourne Scholarship and the 2006 NAB 

Indigenous Economics Scholarship is studying Commerce/Law as well as taking a 

Diploma in Modern Languages in Mandarin Chinese. 


51

Table 5. Indigenous enrolments and completions 

Dentistry and Health Sciences (MDHS). 

Enrolment numbers have increased 

from two Indigenous undergraduate 

students in 2001 to six in 2006, with 

19 Indigenous students engaged in 

various levels of study through the 

Faculty in 2006. 

It is anticipated that an Indigenous 

Liaison Officer appointed to MDHS 

in 2006 will increase participation 

rates further. 

In another move to advance participation 

rates, the University has focussed on 

educational programs in the Goulburn 

Valley, home to one of the largest 

Indigenous populations. 

52 

ASHE 

ASHE, a joint initiative between the 

Faculty of Education and the Aboriginal 

community controlled Rumbalara 

Football Netball Club, has continued 

to thrive in its second full year of 

operation. ASHE aims to create an 

attractive and culturally sensitive 

educational environment primarily for 

Indigenous people. The goal of the 

Academy is to use studies in sport as 

the catalyst for broad education and 

training that prepares people for work 

or further study. 

In 2006 ASHE welcomed two new 

full-time student support positions 

and further boosted employment 

opportunities for students through a 

successful work placement program 

with the Department of Sustainability 

and Environment. To celebrate NAIDOC 

Week ASHE students ran the ‘ASHE’ 

LETICS traditional games carnival, 

bringing together over 200 Indigenous 

primary school students to learn 

traditional sporting games. The ASHE 

Program Coordinator and four ASHE 

students joined staff from the CIE at the 

2006 Croc Fest. Held in Swan Hill, the 

Croc festival is designed to encourage 


2002 2003 2004 2005 2006 

Enrolments 231 239 276 245 242 

Completions 65 63 67 55 58 

young Indigenous students to engage in 

further education. 

The number of Indigenous staff in the 

University increased from 28 in 2005 to 

33 in 2006. 

Onemda 

In 2006 Onemda VicHealth Koori Health 

Unit continued to build collaborations 

and partnerships with the Aboriginal 

community through organisations such 

as the Victorian Aboriginal Community 

Controlled Heath Organisation, with 

whom it has a Memorandum of 

Understanding; the Victorian Aboriginal 

Heath Service; the Koorie Heritage Trust; 

the Maya Healing Centre along with a 

number of other Aboriginal controlled 

organisations. 

Onemda has also strengthened 

its international relationships with 

Indigenous colleagues in New Zealand, 

North America and countries in Europe 

and the Pacific. 

Onemda was established in 1999 

to foster an academic environment 

that values Aboriginal knowledge 

and methodologies, and supports 

ethical practice and Aboriginal selfdetermination. 

In 2006 the Unit 

developed curriculum for both trainee 

doctors and public health students, with 

an aim to increase Aboriginal content in 

university courses across Australia. 

3. Communication 

Communicating the full range of the 

University’s academic and cultural 

activities and its new strategic direction 

to internal and external constituencies 

is of critical importance at a time 

of great change. The new position 

of Vice-Principal (Marketing and 

Communications) was created early in 

2006 to reconfigure the University’s 

marketing and media relations capability 

to support the Growing Esteem 

strategy and to align and coordinate 

the University’s marketing strategies. 

A substantial restructure was achieved 

during the year and a marketing and 

communication strategy devised 

to engage the University’s multiple 

stakeholders. 

Brand 

The strategy involves an integrated 

approach to marketing and 

communications designed to build 

awareness of the University and its 

activities and develop the University’s 

brand. The University aims to connect 

with key audiences through consistent 

and clearly branded communication 

which serves to develop a distinctive 

University identity that becomes 

associated with a rich contribution to 

the community and for its hallmarks 

of international renown, quality and 

excellence. 

Brand architecture was put in place 

during the year, with refined logo and 

signage formats and the development 

and articulation of the University Brand 

Plan. A Brand Guidelines manual, Brand 

Extranet and Brand Compliance system 

is at an advanced stage for launch in 

March 2007. 

Throughout 2006 the Marketing and 

Communications Division worked 

closely with the Growing Esteem 

Strategy Office and faculties to ensure 

effective communication of the 

Melbourne Model and the University’s 

2008 course offerings both within 

the University as well as to local and 

international prospective students and 

other stakeholders, including careers 

advisors and alumni groups. The visibility 

of the University in media publications 

around the country has increased since 

distribution of media releases via AAP 

(Australian Associated Press) newswire.

The University continues to take steps to 

increase the number and proportion of women 

“at all academic and professional levels. 

” 

Liz Baré 

Vice-Principal (Human Resources) 

Publications 

A suite of University publications 

also assisted internal and external 

communications throughout the year: 

• Uni News provided a fortnightly 

review of news, scholarship and 

events at the University; 

• Melbourne Update, a monthly 

newsletter, kept external stakeholders 

abreast of developments and issues 

affecting the University as well as 

University achievements; 

• Melbourne University Magazine, a 

news stand quality biannual of ideas 

and opinion, was sent to more than 

150,000 alumni around the world and 

the broader community; 

• Research Review showcased the 

best of the University’s research each 

quarter through a high quality print 

and online magazine; 

• Staff News, a compendium of notices 

and information, was sent weekly 

by email to 6,000 University staff 

members; 

• Melbourne Up Close podcasts, 

fortnightly downloadable discussions 

with academics about their research 

into current issues facing the wider 

community, were made available at 

http://upclose.unimelb.edu.au 

4. Human Resources 

Staff Numbers at 31 March 

Full-Time Equivalent 2005 2006 

Academic 3,168 3,283 

Professional 3,517 3,667 

Total 6,685 6,950 

Melbourne has the highest number of 

staff compared to other universities, 

with academic staff full-time-equivalents 

(FTE) growing by 3.6 percent from 

2004-2005 (national staff data is not yet 

available for 2006). This compares with 

growth of 2 percent for Sydney, UNSW 

of 2.3 percent and Monash of 4 percent. 

Benchmarking staff data shows that 

Melbourne has a total staff turnover of 

16.9 percent, less than the Australian 

average of 18.25 percent and the Go8 

average of 18.97 percent. 

HR Management 

The University has employment 

processes which comply with Section 8 

of the Public Sector Administration Act, 

2005. 

The University’s human resources 

framework Making Melbourne a Great 

Place to Work guides staff planning and 

management, setting out University and 

Faculty/Department policy targets for 

areas such as recruitment, retention, 

professional development, leadership 

and management. 

In accordance with 2006 targets, the 

University successfully reviewed and 

modified recruitment policies and 

processes to ensure they reflect good 

practice and align with Growing Esteem 

priorities. Innovations include the 

introduction of an online recruitment 

system and the creation of a ‘Careers at 

Melbourne’ web site. 

Sustained high levels of participation 

in the Performance Development 

Framework were achieved and policies 

were formalised, linking rewards such 

as bonuses, loadings, reclassification 

and promotion to performance 

appraisal outcomes. Development 

of the Reward, Recognition and 

Retention for Professional Staff policy 

is underway to ensure that that 

recruitment, performance management 

and promotion criteria reflect Growing 

Esteem priorities, with links between 

reward, promotion, remuneration 

and workloads. 

Revised academic promotion criteria 

have been drafted, with knowledge 

transfer contributions included in the 

re-worked academic reward structure. 

2006 Enterprise 

Bargaining Agreement 

The University’s fifth round Enterprise 

Bargaining Agreement (EBA) was 

negotiated by staff representatives, 

unions and the University during 2006. 

The 2006 EBA provides a guaranteed 

13.69 percent salary increase between 

April 2006 and April 2008, with an 

additional 1 percent Earning Esteem 

incentive payable in September 

2007 and 2008, dependent on the 

achievement of University targets 

consistent with the teaching and 

learning, research performance and 

student load goals of Growing Esteem. 

The EBA lays the groundwork for new 

employment arrangements to ensure 

that the University complies with 

the Commonwealth Government’s 

Higher Education Workplace Relations 

Requirements (HEWRRs). Compliance 

is essential to gain an additional 

funding of 5 percent in 2006 and 7.5 

percent in 2007 of the Commonwealth 

Grant Scheme. These arrangements 

include offering Australian Workplace 

Agreements (AWAs). 

The EBA also provides increased 

flexibility in employment arrangements, 

in particular the nature of engagement 

of staff and staff classifications and 

develops the Workload Management 

Framework for planning, managing 

and allocating staff workloads during 


Agreement has also been reached 

to eliminate differentiation in the 

employment conditions between 

Research Only and Teaching and 

Research staff. 

No time was lost through industrial 

action in 2006. 

Professional Development 

Programs 

Each year a suite of development 

programs and short courses are 

provided to meet University-wide needs. 

In 2006, the main areas of focus were: 

building leadership and management 

capability; strengthening the 

Performance Development Framework; 

building the career resilience of 

individuals; providing a suite of short 

courses to support the University’s 

new agenda; and engaging staff in 

Growing Esteem. 

Highly regarded programs for specific 

staff groups continued to support the 

specific needs of Heads of Academic 

Departments, Department Managers 


53

in academic departments, and senior 

academic women. Of particular 

note, the Heads’ Development and 

Support Program continued as an 

important initiative for the development 

of effective academic leaders. A 

comprehensive evaluation of the Head 

Start program (2001-2004) was finalised 

in 2006, with outcomes indicating a high 

level of satisfaction with the program 

and confirming its continued relevance 

and importance to the University. 

Two further initiatives for specific staff 

groups were introduced in 2006. The 

Leadership Challenge Breakfast Series 

of four seminars for Vice-Principals, 

Directors and Faculty General Managers 

and Managers provided opportunities 

to discuss issues around leadership, 

culture and performance with academic 

leaders, consultants and practitioners 

from other sectors. A series of four 

Brown Bag forums provided an 

opportunity for up to 60 University 

managers to discuss topics relevant to 

the University’s strategic agenda with 

senior university leaders. 

In 2006, a new integrated suite of 

leadership programs was developed 

for both academic and professional 

staff. The programs were designed 

to cater for all levels of staff and to 

build capabilities in: shaping strategic 

thinking, achieving results, cultivating 

productive working relationships; 

demonstrating personal effectiveness, 

communicating with influence and 

managing and developing others. 

A particular focus in 2006 was providing 

career support. Measures included online 

careers advice modules, workshops and 

external career counselling. 

In 2006, consultants were engaged to 

facilitate courses in Communication, 

Planning, Professional Effectiveness 

and Personal Wellbeing and EHS Injury 

Management (First Aid). Training was 

provided to support the introduction 

of the new E- Recruitment System. 

Where work units had specific training, 

development or facilitation needs, 

support was provided to engage a 

suitable external consultant. 

54 


The implementation of Themis HR 

(TTA) in 2005 enabled staff to enrol in 

most programs and courses online. 

During 2006, 6,705 staff attended 631 

courses offered by University training 

providers. These providers include 

Environment Health and Safety Unit, 

Equity and Organisational Development, 

Financial Operations, Information 

Services, Legal Services, Marketing and 

Communications, Melbourne Research 

Office, Student Administration and 

Systems and the Vice-Chancellor’s 

Office. Evaluations of these programs 

indicate a consistently high level of 

satisfaction by participants. 

Organisational Change 

Decisions taken by the University during 

the year to bring about organisational 

change impacted on various groups of 

staff. In particular: 

• The decision by the Faculty of Arts 

to restructure its departments 

into a smaller number of Schools 

necessitated the review of 

administrative support structures 

in the Faculty. Human Resources 

supported Faculty management and 

staff to manage these changes during 

the latter half of 2006. 

• Integration of the Victorian College 

of the Arts (VCA) as a new Faculty 

of the University from 1 January 

2007 necessitated planning for 

integration of VCA staff. Human 

Resources staff assisted negotiation 

of a Memorandum of Understanding 

between the University, the VCA and 

VCA staff and their representatives 

on terms acceptable to all parties. 

• Implementing the Melbourne Model 

with its planned transition from 

96 specialist degrees to six new 

generalist degrees has consequences 

for every faculty, division, department, 

service and work unit. Support in 

managing change was provided on 

request. External consultants with 

specialised expertise held workshops 

dealing with the impact of change, 

communication and planning forums 

were organised across the University 

and individual counselling provided 

where necessary. 

Equal Opportunity 

The University seeks to build a diverse 

workforce supported by fair and 

equitable staffing policies. Measures 

introduced in 2006 included: 

• A Staff Equity Research Fellowship 

scheme, discussed in the Research 

section on p 25 of this Report. 

• The guide Employing People with 

Disabilities: A Guide for Managers 

and Supervisors to support the 

development of an inclusive and 

flexible work culture for all staff. 

• The Best HR Practice Guide, produced 

with input from managers and staff 

with disabilities. 

The University continues to take 

steps to increase the number and 

proportion of women at all academic 

and professional levels. A Staff Equity 

and Diversity Framework developed in 

2006 includes strategies for supporting 

the development and progression of 

women and staff in other equity groups. 

The University has once again been 

successful in meeting the stringent 

requirements for the Employer of 

Choice for Women award for 2006/7. 

The University aims to increase the 

representation of women at Associate 

Professor (Level D) and Professor (Level 

E) and at professional staff level HEW 

10 and above. In 2006, the proportion 

of teaching and research positions 

held by women at Level D increased 

slightly from 26.7 percent (2005) to 27.4 

percent. The proportion of positions held 

by women at Level E increased slightly 

from 18.6 percent to 19.5 percent. While 

increasing the proportion of women in 

the professoriate is an ongoing challenge, 

the University of Melbourne continues 

to have a higher proportion of women 

teaching and research staff at professorial 

level than any other university in the 

Group of Eight.

inding the 


Table 6. Representation of female staff (FTE) in total staff population 

2003 % Women 2004 % Women 2005 % Women 2006 % Women 

Academic staff 2829 41.6% 2971 42.4% 3168 42.7% 3283 42.8% 

Teaching & Reseach staff 1,847.28 36.7% 1,916.19 37.4% 2,113.24 39.0% 2,096.42 39.3% 

Staff at Level E 255.65 16.0% 272.95 18.7% 277.25 18.6% 292.9 19.5% 

Staff at level D 329.64 24.0% 348.75 25.6% 341.6 26.7% 361.95 27.4% 

Staff at HEW Level 10 105.3 46.5% 116.8 46.8% 118.5 47.3% 159.8 45.8% 

5. Infrastructure 

Masterplan 

A new Masterplan to support Growing 

Esteem is currently under development 

with the dual aim of providing a better 

learning environment for students 

and a better teaching and research 

environment for staff. The Masterplan 

takes into account both the pace 

and sequence of transition to the 

Melbourne Model, as mapped out by 

the Curriculum Commission, and the 

agendas set by the various Faculty 

Business Plans. Current physical 

and IT infrastructure projects will be 

modified where necessary and new 

projects defined to meet Melbourne 

Model requirements. The Masterplan is 

expected to be finalised in 2007. 

In the meantime detailed planning work 

is proceeding on key initiatives such as 

the location and form of new course 

administration and student support 

offices to facilitate the introduction 

of Melbourne Model undergraduate 

courses in 2008 and to develop new 

research facilities and learning spaces. 

Collaborative Learning Spaces 

Among the most significant 

achievements in 2006 has been 

progress toward the development of 

collaborative learning spaces. The first 

sites for the hubs have been identified, 

architects appointed, and a schedule 

for future development of the hubs 

formulated. 

A new collaborative learning classroom 

for Chemistry was completed late in 

2006 and will be ready for teaching in 

2007. Designed in consultation with 

the University’s Teaching and Learning 

Support Services (TLSS), the leadingedge 

classroom is an exemplar of the 

new style of teaching space articulated in 

the Curriculum Commission report. The 

facility features advanced informational 

technology, audiovisual equipment 

and virtual laboratories. It has already 

attracted attention from academics and 

architects outside the University. 

Plans are well underway for other 

collaborative learning spaces. TLSS is 

currently consulting on establishing 

design work for two 60-seat problembased 

learning rooms in Engineering, 

as well as ancillary informal learning 

areas, intended to enhance 

undergraduate engineering teaching 

from 2008. Concept design was 

approved late in 2006 for the Eastern 

Learning Hub in the Education precinct. 

The area will provide informal and group 

learning environments with a focus on 

access to technology. 

2006 saw continued progress with a 

program of capital works to refurbish 

and provide new amenities that enhance 

and support teaching and academic and 

research activities. 

New Buildings 

The design for the new Economics and 

Commerce Building to be located at 

198 Berkeley Street was finalised during 

2006. The project has been tendered, 

a major works contract approved and 

preliminary site works commenced. The 

new building will provide state-of-theart 

teaching and learning facilities and 

is one of the first educational buildings 

designed to achieve Five Star Green 

Star rating. The project is scheduled 

for completion in December 2008 with 

the building to be fully operational for 

teaching from the start of first semester 

2009. The total approved budget for the 

project is $124.7 million. 

Fit-out of the David Penington Bio21 

Molecular Science and Biotechnology 

Institute Building proceeded, providing 

specialist custom-designed areas 

for researchers. Facilities were 

completed for the CRC for Oral Health 

Science and Neurosciences Victoria. 

Research laboratories and amenities 

for Federation Fellows Professor Ary 

Hoffmann and Professor Paul Mulvaney 

are underway, with completion 

scheduled for early 2007. 

Refurbishment 

Refurbishments during 2006 include: 

• Construction of a five-level extension 

to the Electrical and Electronic 

Engineering Building and the 

associated refurbishment of the 

two lower levels of the building 

was completed to accommodate 

the Victorian Node of the National 

Information Communication 

Technology Australia Ltd (NICTA). The 

new research facilities were officially 

opened in October 2006. 

• Completion of a major works 

program to upgrade facilities at the 

Werribee Veterinary campus to the 

standards required for accreditation 

by the American Veterinary Medicine 

Association. 

• Refurbishment of the ground floor and 

levels one and two of the Architecture 

Building to provide new student 

and staff facilities, including new 

collaborative learning spaces. 


55

56 

• New collaborative learning spaces 

for Education postgraduate and 

professional programs in the Alice 

Hoy Building. 

• Completion of stonework restoration 

works on the north façade of the 

Old Quadrangle Building as part of 

the Masterplan to enhance historical 

sites on campus. The last stage of the 

Old Quadrangle restoration program 

on the Hearn Court façade was 

commenced. 

• Completion of landscaping works 

for the 1888 Building Precinct. The 

Building is listed on the Victorian 

Heritage Register and the precinct 

is a significant landscape area for 


• Upgrade of audio visual and other 

services in various teaching facilities 

and the major upgrade of two 

theatres on the Parkville campus 

under the Teaching Spaces Renewal 

Program. 

• Fit-out of an additional Melbourne 

University Bookshop in the Alan 

Gilbert Building, specialising in 

medical and law display. 

• Construction of a new Data Centre, 

meeting relevant US and Australian 

standards for Type 1 / Tier 3 computer 

accommodation. 

• Commencement of works in the 

Triradiate Medical Building to provide 

new mortuary facilities. 

• Commencement of an extension 

to the Economics and Commerce 

Student Access Computer Facility in 

Bouverie Street. 

Maintenance 

Maintenance backlog at the University 

is significant. Prioritising maintenance 

demands and determining a strategy to 

address the backlog is a key element 

of the University’s space planning 

processes. To this end, early in 2006, 


Property & Campus Services 

commenced a comprehensive audit 

of the condition of the University’s 

property assets and related 

infrastructure. 

On the recommendations of the Planning 

and Budget Committee, University 

Council has approved substantial 

additional funds for asset protection 

and maintenance. $61.0 million will be 

applied from reserves to address these 

needs over the next five years, as seen 

in Table 7. 

To date an in-house Asset Protection 

Team has identified building backlog 

maintenance costs of $53.1 million. 

By February 2007 an assessment 

of every floor of every building is 

scheduled to have been completed and 

comprehensive data on condition and 

risk will be available. The Asset Condition 

Audit Program will be extended to 

include the non-Parkville campuses 

(Dookie, Creswick, etc) in 2008. 

6. Knowledge 

Management 

Table 7. Asset protection and maintenance funding 

Information technology is the 

backbone of the University’s 

knowledge management capability, 

critical to developing closer links 

between teaching, research and 

knowledge transfer. 

Major developments in 2006 have 

increased the accessibility of the 

University’s research and will make 

it substantially easier for students in 

the future to interact with University 

administration at a central and faculty 

level online. 

Progress made in developing an 

e-Research strategy, a web-enabled 

research portal and expanding digital 

repositories for scholarly output are 

discussed on p 21 and p 22 of the 

Research section of this Report). The 

innovative ‘one-stop-shop’ student portal 

is described on p 30 of the Teaching 

2007 2008 2009 2010 2011 

Asset Protection $5m $8m $12m $16m $20m 

and Learning section. The University 

also made the landmark decision during 

the year to replace the existing Merlin 

student system with the Technology One 

Student One system by Semester 2 

2008. Implementation will begin in 2007. 

In other achievements during 2006: 

• IT has been used to promote wider 

use of the University’s cultural 

collections, (detailled on p 39 in the 

discussion of Knowledge Transfer.) 

• The University connected to 

the new generation AARNet3 

(Australian Academic and Research 

Network) enabled higher speed 

communications to the increasing 

number of international networks to 

which AARNet is partnered. 

• The Content Management System 

Pilot was successfully trialled with 

partners including the Faculty of 

Science, Faculty of Medicine, 

Dentistry and Health Sciences, 

Human Resources, and several areas 

of Academic Services. A rollout to 

the broader University will commence 

in 2007. 

• A Council Portal was developed and 

went live in September, providing 

Council members with online access to 

committee-meeting-related documents 

in a secure environment. 

• Major works in IT infrastructure 

included new data centres and 

replacement of local area network 

infrastructure in key buildings. 

• Standardisation of email, calendaring 

and document storage system 

commenced across the University 

through the eXchange Project. 

Fourteen hundred staff users 

have been moved to Outlook (or 

‘Entourage’ for Macintosh) with 

further faculties and divisions to 

move to the new system in controlled 

rollouts during 2007-08. 

• Integration of VCA into the main 

University IT systems and upgrades 

of its facilities. 

There has been continued 

implementation of the three-year IT 

Shared Services project, which aims

inding the 


to improve effectiveness and efficiency 

in IT. In 2006 the model to guide 

implementation, the Service Catalogue 

and Charter, and the first Service 

Prospectus were developed. A key 

milestone was reached when the eight 

Administration IT units were transitioned 

in August. 

7. Fundraising 

The University’s endowment and the 

generosity of its community in giving 

is significant by Australian standards, 

but nevertheless small compared to 

first-class universities internationally. 

Greater investment in fundraising is 

critical to the success of Growing 

Esteem, both for scholarships and for 

research. In 2006 the University took its 

first decisive steps towards coordinated, 

campus-wide fundraising, and laid the 

groundwork for the launch of a major 

campaign. 

The Advancement Strategic Plan 

adopted in 2006 sets priorities to be 

addressed as the University prepares 

for a major fundraising campaign. A 

Director (Advancement) was appointed 

to lead a greatly enlarged Development 

Office (renamed the ‘Advancement 

Office’) in implementing the Plan. 

Staff have been recruited during the 

year, with numbers increasing from 

12 to 26. 

Table 8. University annual appeal results 

UniFund/University 

Fund 

Number 

of Donors 

To embed the strategy across the 

University, staff training in Advancement 

was introduced, with intensive short 

courses for deans and faculty external 

relations staff conducted by the Indiana 

Centre for Philanthropy. 

Donor prospect research has 

commenced, with systematic 

management of donor contacts 

introduced. A parallel stewardship 

program had been introduced for 

existing major donors, with each 

assigned a ‘relationship manager’ to 

cultivate their relationship with the 


A recognition program ‘The Heritage 

Society’, was established for existing 

bequestors to enhance the University’s 

contact with those who have already 

pledged support through their wills. 

The University also took the first steps 

down the path of a structured campuswide 

fundraising program. The annual 

UniFund appeal to alumni was replaced 

with a direct mail appeal. The University 

Fund, which included a Challenge Match 

to stimulate first-time donors with 

matching funds, and a reward program 

(The Chancellor’s Circle) to stimulate 

larger donations were introduced. 

Results exceeded all expectations with 

participation lifted from 921 to 1,906 

donors, giving trebled, and the cost kept 

to 32 cents per dollar raised. 

2005 2006 

$ Number 

of Donors 

921 $180,511 1,810 $505,923 

Law Appeal 118 $22,453 2 $500 

Staff and Council 

Appeal 

$ 

30 $165,230 

Student Appeal 60 $3,625 

USA Foundation 22 $2,600 106 $12,500 

TOTAL 1,061 $205,564 2,008 $687,778 

New Donors 276 $40,531 733 $120,570 

Chancellor’s Circle 309 


Professor Richard James 

Director of the University’s Centre 

for the Study of Higher Education 

(CSHE), Professor Richard James, 

was appointed in 2006 to a Chair in 

Higher Education. Professor James 

has a distinguished research record 

in access and equity,particularly on 

access for rural students and the 

effects of social class on higher 

education aspirations. His work also 

covers the transition of students 

to tertiary study and university life, 

the student experience, learning 

assessment and quality assurance in 

the higher education sector. 

The CSHE provides many of the 

tools and guiding principles used 

nationally and internationally for the 

improvement of higher education. 

In 2002 Professor James 

coordinated the CSHE team that 

completed an extensive national 

review of higher education equity 

policy. In 2005 he led the CSHE 

project team that designed the 

Carrick Awards for Australian 

University Teaching, the national 

scheme for recognising excellence 

in teaching in higher education. 


57

Also notable was the generosity of the 

University’s staff. The Staff Appeal, led 

by a Staff Appeal Committee (the first 

such appeal in an Australian university) 

raised over $100,000. An equally 

significant component was the Student 

Appeal – another first in Australia, 

designed and run by a Student Appeal 

Committee. The object of the Student 

Appeal was educational rather than 

financial, aiming to inculcate in students 

a habit of giving from their earliest days. 

Alumni of the University’s former 

Mildura campus also launched an appeal 

for a Mildura Alumni Scholarship, with 

a target of $150,000; $92,000 had been 

pledged by the year end. 

58 

8. Resourcing 

The long-term strategy of increasing and 

diversifying the University’s revenue 

base remained unchanged with the 

adoption of Growing Esteem. In the 

period to 2011, it will be necessary 

to continue to maintain or grow feebased 

revenue from undergraduate and 

postgraduate programs, to continue 

to increase revenue from research 

bids and to diversify the revenue 

base through increased income from 

commercialisation of research and 

teaching and through philanthropy. 

Continued Pressure for 

Self-Reliance 

Increased financial self-reliance is 

central to the University’s approach 

to building a sustainable future. While 

governments continue to be important 

contributors in the University’s funding 

mix, in 2006 funding from governments, 

excluding research funding, constituted 

only 29.4 percent of the total revenue. 

Commonwealth funding from all 

sources other than Higher Education 

Contribution Scheme has diminished 

from 56 percent in 1996 to 40.3 percent 


In 2006, the University’s financial 

position was bolstered by $8.9 million 

from the Commonwealth Government’s 

Learning and Teaching Performance 

Fund. Further funding of $1.5 million 

was provided from the Workplace 

Productivity Programme (WPP) for 


achievement of workplace relations 

and governance requirements, and 

amounts of $0.5 million from the same 

Program were provided to support 

the implementation of the Melbourne 

Model. 

Nevertheless, the availability of funding 

from such sources varies from year 

to year. For instance, Commonwealth 

funding tied to governance and 

workplace relations reforms is still to 

be confirmed beyond 2007. Managing 

a funding base where elements of 

government funding vary from year to 

year, and with much of the government 

income tied to specific purposes, 

reinforces developing reliable external 

sources of income and having access 

to cost-effective loans as key strategic 

priorities. 

In December 2005, the Federal 

Government passed the Higher 

Education Support Amendment 

(Abolition of Compulsory Up-front 

Student Union fees) Act, which meant 

that from mid 2006 it was unlawful for 

universities to collect the amenities 

and services fee which supported a 

broad range of student support services 

and recreational and cultural activities. 

While the impact of the changed 

legislation will occur in 2007, leading to 

a $12 million reduction in revenue for 

these services, during 2006 extensive 

planning was undertaken in conjunction 

with student organisations to develop 

processes to ensure continuation of 

core student support services. 

Increased Fee Income 

Generation 

Despite a flattening of the market 

nationally, the University continued 

to perform strongly in the area of fee 

paying income from international and 

domestic students. 

A total fee revenue target of $246 million 

set for 2006 was exceeded by $11 million, 

with the University achieving a total of 

$257 million. For the first time, the income 

from fee-paying students exceeded 

the funding from the Commonwealth 

Government for the Commonwealth 

Supported Place students. 

Fee income from international feepaying 

students now represents core 

funding for University activities. 2006 

fee income placed the University 

as the leading international student 

fee revenue earner in the fiercely 

competitive Australian higher education 

sector. Melbourne’s fee income from 

over 10,000 international students at 

the University reached $191.6 million, 

an increase of $23.5 million over 2005. 

Continued building of fee revenue targets 

in 2007 and 2008, with targets of $270 

million and $299 million respectively, is 

a key to future financial stability. 

Australian Government financial 

assistance and fee income 

$ MILLION 

350 

300 

250 

200 

150 

100 

50 

0 

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 

Australian Government Financial Assistance 

(Incl CGS & HECS-HELP) 

Fee Income 

Government subsidised and 

fee-based students at Melbourne 

100% 

80% 

60% 

40% 

20% 

1997 

1998 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 projected 

Government Subsidised (CGS & RTS) 

Fee Paying

inding the 


Sources of income 

Total Operating Revenue 2006 $1,282,566 

50% 

45% 

40% 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0 

Australian 

Government 

Recurrent Financial 

Assistance 

Other Australian 

Government 

Financial Assistance 

HECS-HELP 

Improving Investment Returns 

Strong returns on the University’s 

investment portfolio were a highlight 

of 2006. Investment income of $104.3 

million represented an increase over 

the 2005 result of $82.0 million. Funds 

under investment increased by 20.2 

percent over the same period from 

$1,056.8 million to $1,270.6 million. 

A substantial portion of the University’s 

investments, which are overseen by the 

Investment Management Committee, 

support various trusts which in turn 

support aspects of the University’s 

teaching and research programs. 

Additionally, an amount ($27.5 million in 

2006) is made available to the Planning 

and Budget Committee budget for 

recurrent purposes. 

The strong investment returns 

contributed to the University’s operating 

surplus of $84.4 milion in 2006. 

Looking to the Broader 

Community for Support 

In 2006, the University received $22.6 

million from donations and bequests, 

broadly comparable to the level received 

in 2005 and reflecting a 95 percent 

increase over the amount received in 

2000. 

Income from donations and bequests 

is expected to increase in coming years 

as the University implements its new 

State Government 


Investments, Fees 

and Charges 

Grants, Donations 

and Bequests 

1998 

2000 

2002 

2004 


Advancement Plan. Details of the Plan 

and giving programs are discussed in 

on p 57 of this Report. 

Maximising Returns on 

the University’s Research 

and Teaching 

Although income from consultancies, 

royalties and licenses increased from 

$27.4 million to $29.1 million between 

2005 and 2006, the University receives 

significantly less income from these 

sources than some other major 

Australian universities. Strategies for 

improving performance are described in 

the discussion of the University’s new 

Commercialisation Strategy on p 40 of 

this Report. Revision of the University’s 

approach to Intellectual Property, 

described on p 41 of this Report is 

also expected to play a major role. 

Implementing the recommendations of 

the Commercialisation Strategy will be a 

high priority in 2007. 

Managing Resource Allocation 

In 2006, a revised budget allocation 

model was introduced. It estimates 

income earned by each Faculty and then 

deducts an amount calculated on the 

basis of a limited number of cost-drivers 

which represent the contribution each 

faculty makes as a charge for overhead 

expenses or to support University 

activities. 

Certain direct charges are taken off the 

top before the allocation of funds, but 

each remaining category of income is 

allocated to faculties on the basis on 

which funds are received. The aim is to 

reduce the overlay of budget incentives 

which previously applied. 

In the new model, space usage is 

a significant driver, but a significant 

incentive is provided by retention by 

faculties of funding received above 

budget for enrolment in fee-based places. 

The model is modified to the extent 

that there are cross subsidies and 

transitional provisions to offset financial 

disadvantage which may occur at times 

of significant change. Despite the overall 

positive financial outcome, four faculties 

ended 2006 with an operating deficit, 

which was offset by funds drawn from 

their operating reserves. 

Voluntary Student Unionism 

In 2006, the University allocated $5.96 

million in its 2007 budget to support 

the various bodies that will be impacted 

by Voluntary Student Unionism, 

particularly from the beginning of 2007. 

This allocation and new infrastructure 

within student associations to support 

membership, such as membership 

incentive cards offering loyalty reward 

programs, are intended to ensure the 

ongoing viability of student associations 

and core services previously funded 

through the Amenities and Services 

Fee. Notwithstanding these initiatives 

the legislative prohibition on the 

collection of compulsory student 

amenities fees will have a deleterious 

effect on services and student life. 

Resourcing the Implementation 

of Growing Esteem 

To support faculties and administration 

achieve the major transformational 

activities required to give effect to 

Growing Esteem, Council approved the 

establishment of the Growing Esteem 

Transition Fund, it is anticipated that up 

to $65 million will be provided from the 

University reserves from 2007-2012, 

supplemented by $20 million from 

Faculty reserves. 


59

Business Planning during 2006 was also 

supported by a WPP grant of $1.5 million 

which funded two important projects: 

• the first iteration of a student scenario 

modelling tool, designed to improve 

the University’s capacity to forecast 

the financial and other impacts of 

changes in student demand and 

shifts in the student profile under 

the Melbourne Model, and 

• a critical path plan for the 

Melbourne Model developed by 

Boston Consulting Group (BCG) in 

consultation with the University. 

9. Managing 

Administration, 

Planning Process 

and Compliance 

Implementation of 

Growing Esteem 

During 2006 the University responded 

quickly to design and establish the 

governance structures necessary for 


A Growing Esteem Strategy Office 

(GESO) was set up early in the year 

as part of the Vice-Chancellor’s office 

to manage the Growing Esteem 

process across the University. Its 

role was to support the five Growing 

Esteem taskforces and committees, 

departments and faculties as they 

implemented the strategy. Managing 

internal and external communications 

is one of GESO’s primary and ongoing 

functions. GESO has provided regular 

updates to staff throughout the year and 

has coordinated an extensive program 

of briefings by senior University staff to 

explain the Growing Esteem strategy 

to the University’s many communities. 

Discrete briefings have targeted staff, 

schools, alumni, industry and business 

groups. In particular, an extensive 

web site has communicated details 

of the Melbourne Model as they have 

developed during the year. 

Introduction of the Melbourne Model 

undergraduate degrees requires a fresh 

approach to administration of academic 

programs. To assist faculties with the 

complex task of restructuring courses 

in collaboration with each other, Course 

Standing Committees (CSCs) have 

been created for each of the six new 

degrees. The role of the CSCs is to 

oversee the development and design of 

the new generation degrees, including 

breadth subjects, majors, capstone 

subjects, research and knowledge 

transfer components, pathways to 

further study and employment. The 

CSC are coordinated by a new Board of 

Undergraduate Studies (BUGS). 

An interim BUGS has been established, 

ensuring faculties act in concert to 

oversee the whole new generation 

undergraduate curriculum, and that 

proposals relating to individual courses 

are properly coordinated. 

Finally, a Melbourne Model 08 (MM08) 

taskforce set up in November 2006 

will oversee implementation of the 

Melbourne Model in accordance with 

the BCG critical path. Chaired jointly by 

the Deputy Vice-Chancellor (Academic) 

and the Senior Vice-Principal, the 

taskforce has established working 

groups in particular areas to undertake 

the detailed work necessary ahead 

of the launch in 2008. 

Reshaping 

Several other areas of the University 

have been reshaped during the year. 

The Faculty of Arts has been 

restructured to promote greater 

interdisciplinary collaboration in teaching 

and research and more streamlined and 

effective administrative and decisionmaking 

processes. From 1 January 2007 

the Faculty will be reshaped into seven 

new Schools – the Asia Institute, 

Culture and Communication, Historical 

Studies, Languages and Linguistics, 

Philosophy, Political Science, 

Criminology and Sociology and Social 

and Environmental Inquiry. 

The Academic Services Division has 

worked with the Victorian College of 

the Arts to identify the best partnership 

arrangement to provide student service 

delivery to the College, following its 

integration as a faculty of the University 

from 1 January 2007. 

Following a review of marketing and 

international student recruitment, the 

University has restructured provision 

of those services, adopting a ‘hub 

and spoke’ approach. University 

Administration will have responsibility 

for overall coordination, with service 

delivery and recruitment undertaken 

at Faculty level. 

An extensive review of business 

education during the year has resulted 

in recommendations for closer working 

relationships across the business 

education entities at the University. 

The Melbourne Business School and 

the Faculty of Economics and 

Commerce will meet regularly on a 

new Business@Melbourne Coordinating 

Committee, develop a joint portal 

detailing the University’s business 

education offerings, and work towards 

creation of a world-class business/law 

precinct in University Square. 

Shared Services 

In 2005, the University embarked on 

a series of reforms of administrative 

service delivery known as the Shared 

Services Initiatives, focussing on five 

areas – information technology, financial 

operations, marketing, international and 

academic support services – with the 

aim of identifying the optimal structures 

for service delivery. During 2006, the 

Shared Service Review Implementation 

Group chaired by the Senior Vice- 

Principal commenced the process 

of actioning the recommendations, 

laying the foundations for a ‘whole of 

University’ approach to administration 

which ensures alignment between 

administrative capacities and Growing 

Esteem priorities. 

The first stage of the Information 

Technology Shared Services Project, 

the completion of a common IT support 

infrastructure for the Administration, 

was completed. Valuable lessons learnt 

from the exercise will be used in the 

further roll out of the project in 2007. 

60 


inding the 


Improving Effectiveness 

and Efficiency 

The annual Quality of University 

Management and Administration 

(QUMA) survey assesses perceptions 

of the Administration’s service delivery 

across the University. The 2006 QUMA 

survey shows general improvement in 

satisfaction with central administrative 

services. Areas of best performance 

included communications, public 

affairs, Melbourne Research Office 

services, leadership programs for 

staff and Access Melbourne. Areas 

nominated for further improvement 

were knowledge transfer, shared 

services implementation, development 

of commercialisation strategies, the 

University’s enterprise systems and 

space planning and infrastructure. Only 

three services of the 111 surveyed 

ranked less than four on a five-point 

scale of importance. 

Further administrative efficiencies 

were gained as improved management 

systems came on-stream in 2006. 

Significant progress was made in 

implementing new IT systems, 

discussed in the Information Services 

section on p 56 of this Report. In 

particular Themis (Research), the 

Content Management System and 

the Student Portal, will enhance the 

University’s capacity to capture and 

manage data in an effective manner. 

Approval was given to purchase and 

implement a new student system to 

replace the in-house developed Merlin. 

Simplifying Planning 

In 2006 the University adopted 

a proposal for streamlining and 

simplifying the University’s planning 

and accountability cycles. From 2007 

the University will have a single annual 

plan containing goals and targets, 

supplemented by more detailed plans 

in areas of key strategic significance. 

Underpinning policy statements will 

provide detailed guidance in areas such 

as equity and capital planning. 

Operational planning will be managed 

centrally through the Budget and 

Capital Plans, and at faculty level, 

through Business Plans. Annual quality 

assurance processes will also be 

consolidated and streamlined. 

Managing Risk and Compliance 

In 2006 the Victorian Workcover 

Authority noted a series of occupational 

health and safety risks in the University. 

While all were resolved, the Authority 

expressed concern at the level of 

understanding and support of the 

issues from managers. Responding 

to the concern, the University 

allocated $80,000 to improve training 

and understanding of staff of their 

occupational health and safety 

responsibilities and obligations. 

A new approach has seen responsibility 

for risk assessment and development 

of mitigation strategies increasingly 

devolved from the central University 

administration during the year. Faculties 

and divisions now incorporate risk 

analysis into their business planning. 

A Crisis Management Plan, designed 

to establish a framework for business 

operations continuity during a sustained 

emergency, was developed and will be 

tested in 2007. 

Outlook 

In 2007 the University will continue 

to respond to restructuring needed for 

optimal implementation of Growing 

Esteem with a particular emphasis on 

providing high level administrative and 

program support for students. This 

will be underpinned by a substantial 

initiative to support training for the 

staff involved in delivering those 

services. Implementation of the 

recommendations of the Shared 

Services Review will continue. 


Dr Janice Stockigt 

University musicologist Dr Janice 

Stockigt discovered Antonio Vivaldi’s 

‘lost’ work Dixit Dominus, while 

researching in the Saxon State 

Library on Dresden last year. It is 

regarded as the finest Vivaldi work 

to have emerged since the 1920s 

and had for some centuries been 

misattributed to the composer 

Baldassarre Galuppi. 

The University’s Faculty of 

Music presented the Australian 

premiere of Dixit Dominus at a 

recital in April. 

Dr Stockigt was previously awarded 

the University’s inaugural Woodward 

Medal for a significant contribution 

in the area of humanities at the 

University. She has also received 

the Derek Allen Prize from the 

British Academy for her book Jan 

Dismas Zelenka (1679-1745) and a 

Queen Elizabeth II Fellowship from 

the Australian Research Council. 


61

university 

governance/ 

62 


university 

governance/ 

The University of Melbourne was 

established by an Act of the Victorian 

Parliament in 1853. The responsible 

Minister in the current Victorian 

Government is the Minister for Skills, 

Education Services and Employment. 

Our Objectives 

(a) to provide and maintain a teaching 

and learning environment of 

excellent quality offering higher 

education at an international 

standard; 

(b) to undertake scholarship, research 

and research training of international 

standing and to apply that 

scholarship and research to the 

advancement of knowledge and to 

the benefit of the well-being of 

the Victorian, Australian and 

international communities; 

(c) to equip graduates of the University 

to excel in their chosen careers 

and to contribute to the life of the 

community; 

(d) to serve the Victorian, Australian and 

international communities and the 

public interest by: 

(i) enriching cultural and 

community life; 

(ii) elevating public awareness of 

educational, scientific and 

artistic developments; 

(iii) promoting critical enquiry, 

informed intellectual discourse and 

public debate within the University 

and in the wider society; 

(e) to confer degrees and grant 

diplomas, certificates and 

other awards. 

Undergraduate degrees offered 

ARCHITECTURE, BUILDING 

AND PLANNING 

- Landscape Architecture 

- Planning and Design 

- Urban Planning and Development 

ARTS 

- Arts 

- Arts and Sciences 

- Creative Arts 

- Letters 

- Public Policy and Management 

ECONOMICS AND COMMERCE 

- Commerce 

EDUCATION 

- Early Childhood Education 

- Early Childhood Studies 

- Education (Primary) 

- Education and Training 

- Learning Development and Training 

ENGINEERING 

- Computer Science 

- Engineering 

- Geographic Information Technology 

- Geomatic Engineering 

LAND AND FOOD RESOURCES 

- Agriculture 

- Agricultural Science 

- Animal Science and Management 

- Applied Science 

- Food Science 

- Forestry 

- Forest Science 

- Horticulture 

- Natural Resource Management 

- Rural Business 

LAW 

- Laws 

MEDICINE, DENTISTRY AND 

HEALTH SCIENCES 

- Dental Science 

- Dental Studies 

- Medical Science 

- Medicine and Surgery 

- Nursing Science 

- Oral Health 

- Physiotherapy 

MUSIC 

- Music 

SCIENCE 

- Biomedical Science 

- Information Systems 

- Optometry 

- Science 

VETERINARY SCIENCE 

- Animal Science 

- Veterinary Science 

VICTORIAN COLLEGE OF THE ARTS 

- Contemporary Dance Teaching 

- Dance 

- Dramatic Art 

- Film and Television 

- Fine Art 

- Music Performance 

- Music Theatre 

In most disciplines in which there is a 

degree of Bachelor, degrees of Master 

and the degree of Doctor of Philosophy 

are also available. The University also 

offers Juris Doctor courses. 

In addition, the following bachelor 

degree courses are also available for 

graduate entry: Architecture, Building, 

Property and Construction, Medicine, 

Social Work, Teaching. 

Graduate Certificates and Diplomas 

leading to a wide range of Masters 

degrees are offered in all Faculties. 

Postgraduate Certificates and Diplomas 

are also offered. 


63

At its inception, and for many years 

afterward, the University received 

grants from the Victorian Government 

and income from fees and benefactions. 

Since the Second World War the 

Australian Government has provided 

financial support for teaching and 

research activities. 

In the last decade of the 20th century 

the structure of the University 

underwent profound change. An 

amalgamation between the University 

and the adjacent Melbourne College of 

Advanced Education came into effect 

in 1989. This resulted in a merger 

between the College and the 

University’s Faculty of Education. 

The Hawthorn Institute of Education, 

affiliated with the University in 1991, is 

now fully amalgamated and integrated 

with the Faculty of Education. 

Also in 1991, the Victorian College of 

the Arts affiliated with the University 

and its higher education programs 

were then offered through the School 

of the Victorian College of the Arts. 

The College remained largely an 

autonomous institution with its own 

Act of Parliament, Council and Director 

(Chief Executive), although its students 

enrolled in courses approved by the 

University’s Academic Board and 

received degrees of the University. 

Late in 2005, the University and the 

VCA signed Heads of Agreement under 

which the VCA became a Faculty of the 

University from 1 January 2007. 

The Victorian College of Agriculture and 

Horticulture affiliated with the University 

in 1992, becoming a part of the new 

Faculty of Agriculture, Forestry and 

Horticulture in 1995. The Faculty was 

reconstituted as the Institute of Land 

and Food Resources in July 1997 and 

then as the Faculty of Land and Food 

Resources at the end of 2004. Over the 

course of 2005, the University finalised 

arrangements to relinquish the teaching 

of Vocational Education and Training 

courses previously offered through the 

Institute and Faculty to specialist TAFE 

providers, leaving the University Faculty 

free to concentrate on higher education 

teaching and research. 

64 


Faculties 

The University has 11 faculties and a School of Graduate Studies 

which has faculty status. 

Faculty Teaching Load – 2006 estimates 

LOAD 

(EFTSL) 

% 

Female 

Architecture, Building and Planning 1,519 49.8% 

Arts 6,097 66.4% 

Economics and Commerce 5,076 50.1% 

Education 2,705 77.3% 

Engineering 2,935 22.2% 

Land and Food Resources 951 50.7% 

Law 2,031 52.6% 

Medicine, Dentistry and Health Sciences 5,912 64.3% 

Music 482 65.5% 

Science 3,850 47.8% 

Veterinary Science 456 77.3% 

School of Enterprise 142 24.5% 

Other 271 59.8% 

Affiliated teaching institutions 

Melbourne Business School 494 29.8% 

Victorian College of the Arts 935 56.2% 

Total 33,856 56.0% 

Other includes School of Graduate Studies and unallocated load. 

Total includes load at 31 October 2006 and includes Study Abroad 

student load. 

In 1998 the University established a 

private arm, Melbourne University 

Private Ltd, which offered its first 

courses in 1999. During 2001 Melbourne 

Enterprises International Limited 

became a subsidiary of Melbourne 

University Private Ltd. As from July 

2003 Melbourne University Private Ltd 

became a self-accrediting institution 

but the University’s Academic Board 

continued to review courses accredited 

by Melbourne University Private Ltd 

on a periodic basis to ensure that they 

remained of a quality comparable to 

award courses at the same level at the 

University of Melbourne. On 6 June 

2005 the academic operations of the 

two bodies were merged, with students 

of Melbourne University Private 

becoming students of the University of 

Melbourne from that date. Melbourne 

University Private Limited, while 

continuing as a subsidiary company of 

the University of Melbourne, has been 

renamed UMEE Ltd and has ceased to 

operate as a university. 

Over the past two decades public 

funding per student has fallen steadily 

and the University of Melbourne, like 

most other Australian universities, is 

increasingly reliant on student fees 

and other earned income to finance 

its operations.

university 

governance/ 

The University and its Controlled Entities 

Committee of Convocation 

COUNCIL 

Melbourne 

Business School Ltd 

Academic Board 

Senior Executive 1 


and Principal 

Asialink 

Victorian College 

of the Arts 

Ian Potter Museum 

of Art 

Melbourne Theatre 

Company 

Subsidiary Companies 

Australian International 

Health Institute Ltd 

Australian Music 

Examinations Board 

(Vic) Ltd 

Faculties, School 

of Graduate Studies, 

Bio21 Molecular 

Science and 

Biotechnology Institute 

Deans 2 

Melbourne University 

Bookshop 

Australian National 

Academy of Music Ltd 

Meanjin Company Ltd 

Academic Departments 

Heads of 

Departments 

Administrative 

Departments 

UMEE Ltd 


Publishing Ltd 

Melbourne Ventures 

Pty Ltd 

MU Student Union Ltd 

1 The Senior Executive includes the Vice-Chancellor and Principal, 

the Deputy Vice-Chancellors and the Vice-Principals 

(refer to page 3, Senior Officers). 

2 For full details of Deans, refer to page 68. 


65

2006 Council Members attendance at Council and 

Council Committees during the year 

COUNCIL MEMBERS 

COUNCIL 

BUILDING 

& ESTATES 

COMMITTEE 

FINANCE 

COMMITTEE 

REMUNERATION 

& EMPLOYEE 

CONDITIONS 

COMMITTEE 

HONOURS 

COMMITTEE 

LEGISLATION 

& TRUSTS 

COMMITTEE 

COUNCIL 

NOMINATIONS 

& GOVERNANCE 

COMMITTEE 

AUDIT & 

RISK 

COMMITTEE 

UNIVERSITY 

RELATIONS 

COMMITTEE 

ELIGIBLE ATTENDED ELIGIBLE ATTENDED ELIGIBLE ATTENDED ELIGIBLE ATTENDED ELIBIBLE ATTENDED ELIGIBLE ATTENDED ELIGIBLE ATTENDED ELIGIBLE ATTENDED ELIGIBLE ATTENDED 

Alexander, Ms E 12 10 11 10 5 3 

Allen, Associate Professor L 12 11 5 5 3 3 

Anning, Mr T L 12 12 6 5 9 9 

Briggs, Mr P 12 7 3 1 

Chernov, The Hon Justice A † 12 11 6 6 11 4 4 2 4 1 5 5 

Davis, Professor G 12 10 6 0 11 9 4 4 5 3 3 0 

Doig, Dr M 12 12 4 1 5 3 4 3 3 3 

Elgar, Professor M A 12 12 11 7 4 4 4 4 

Erickson, Mr P 12 12 9 3 

Hehir, Mr G 12 9 4 1 

Lawson, Judge I † 12 10 

Li, Professor A * 12 1 4 0 

Lochtenberg, Dr B 12 9 6 4 4 4 4 2 5 4 

Ooi, Ms Lydia 12 11 5 4 

Renard, Mr I A 12 10 4 4 4 4 5 5 3 3 

Ritchie, Ms E N S 12 12 3 3 

Sloss, Ms M 9 9 6 5 9 9 5 4 

Skene, Professor L 12 11 6 4 11 8 4 4 9 7 5 2 

Storelli, Ms R 12 10 4 3 

Thornley, Mr E 12 10 11 2 4 1 

White, The Hon Mr D R 12 12 6 3 11 10 4 4 

* Professor Li is located overseas and communicates directly with the Chancellor and Vice-Chancellor in relation to Council matters. 

† At its April meeting Council noted that its judicial members might be prevented from attending some meetings 

or parts of meetings during the year through their obligations to complete court sittings, and resolved to grant 

them leave of absence on those occasions. 

Audit and 

Risk Committee 

The Audit and Risk Committee consists 

of six members appointed by Council 

at least three of whom are members 

of Council. At least five of the six 

members must be external members. 

The Chairperson is appointed by Council 

from among the members of Council. 

In making these appointments Council 

must ensure that at least one member 

is a member of the Finance Committee, 

and that any non-Council members are 

selected for their expertise in Audit 

and/or Risk Management. 

66 


Membership at 31 December 2006 

comprised: 

THE HON DAVID WHITE (Chairperson) 

BCom LLB Melb FCA FCPA 

DR MEREDITH DOIG BA MEdStud Monash 

PhD RMIT DipEd Melb GradDipMgt RMIT 

PROFESSOR MARK ELGAR 

BSc Griff PhD Camb 

MR PAUL BARKER 

BBus RMIT DipAccounting Swinburne FCA ACIS 

MS MARGARET CROSSLEY FCA CPA 

MS ALISON KITCHEN 

BA (Hons) Sheff FCA CPA 

Representatives of the Victorian 

Auditor General’s Office are invited 

to attend meetings. 

Indemnity 

Pursuant to Section 16A of the 

Melbourne University Act, 1958, the 

University indemnifies Council members 

and members of Council and University 

committees in respect of acts or 

omissions in good faith in the exercise 

of their powers or duties.

university 

governance/ 

Principal Council Committees 

COUNCIL 

Audit and Risk 

Committee 

Building and 

Estates Committee 

Finance Committee 

Honours Committee 

Hon David While 

(Chairperson) 

Hon Justice A Chernov 

Deputy Chancellor 

(Chairperson) 

Ms E Alexander 

Member of Council 

(Chairperson) 

Mr I Renard 

Chancellor 

(Chairperson) 

Committee on 

Remmuneration 

and Employment 

Conditions 

Legislation and 

Trusts Committee 

Council 

Nominations 

and Governance 

Committee 

University Relations 

Committee 

Mr I Renard Chancellor 

(Chairperson) 

Ms M Sloss SC 

(Chairperson) 

Mr I Renard 

Chancellor 

(Chairperson) 

Mr I Renard 

Chancellor 

(Chairperson) 

Academic and Planning Committees 

COUNCIL 

Office of the 


Academic Board 

Academic Programs Committee 

Teaching & Learning 

Quality Assurance Committee 

Selection Procedures Committee 

Libraries Committee 

Teaching & Learning 

(Multimedia & Educational 

Technologies) Committee 

(TaLMET) 

Other Academic Committees 

Planning and 

Budget Committee 

Advancement Committee 

Human Resources 

Advisory Committee 

International Committee 

Melbourne Experience 

Committee 

Equity and Diversity Committee 

Risk Management Committee 

University Infrastructure 

Committee 

Research and Research Training Committee 

As at 31 December 2006. 


67

Faculties, Departments and Schools 

Architecture, Building 

and Planning 

Professor Ruth Fincher 

BA MA McM PhD Clark FASSA 

Arts 

Professor Belinda Probert 

BSc London PhD Lancs 

Anthropology, Geography 

and Environmental Studies 

Art History, Cinema, Classics and 

Archeology 

Criminology 

English 

History 

History and Philosophy and Science 

Philosophy 

Political Science 

Social Work 

School of Creative Arts 

School of Languages: 

• Horwood Language Centre 

• Language Studies 

Economics and Commerce 

Professor Margaret Abernethy 

BEc PhD La Trobe 

Accounting and Business 

Information Systems 

Economics 

Finance 

Management and Marketing 

Melbourne Institute of Applied 

Economic and Social Research 

Education 

Professor Field Rickards 

BSc Med Manc PhD Melb 

Engineering 

Professor Jan Van Deventer 

B Eng PhD Deng Stell BCom DCom S Afr 

Chemical and 

Biomolecular Engineering 

Civil and Environmental Engineering 

Mechanical and Manufacturing 

Engineering 

Geomatics 

School of Electrical Engineering and 

Computer Science: 

• Computer Science 

• Electrical and Electronic Engineering 

Land and Food Resources 

Dr Rick Roush 

PhD UCal 

School of Agriculture and 

Food Systems 

School of Forest and 

Ecosystem Science 

School of Resource Management 

Law 

Professor Michael Crommelin 

BA LLB Qld LLM PhD BrColl 

Medicine, Dentistry 

and Health Sciences 

Professor James Angus 

BSc PhD Sydney FAA 

Nossal Institute for Global Health 

School of Behavioural Science: 

• Psychology 

School of Dental Science 

School of Medicine: 

Pre-clinical and Para-clinical 

Departments 

• Anatomy and cell biology 

• Biochemistry and molecular biology 

• Medical biology 

• Microbiology and immunology 

• Pathology 

• Pharmacology 

• Physiology 

Clinical Departments: 

• General practice 

• Medicine (Austin Health and 

Northern Health) 

• Medicine (Royal Melbourne Hospital 

and Western Hospital) 

• Medicine (St Vincent’s Hospital) 

• Obstetrics and gynaecology 

• Ophthalmology 

• Otolaryngology 

• Paediatrics 

• Psychiatry 

• Radiology 

• Surgery (Austin Health and 

Northern Health) 

• Surgery (Royal Melbourne Hospital 

and Western Hospital) 

• Surgery (St Vincent’s Hospital) 

School of Nursing 

School of Physiotherapy 

School of Population Health 

School of Rural Health 

Music 

Associate Professor Cathy Falk 

BA PhD Monash 

Science 

Professor Peter Rathjen 

BSc Adelaide PhD Oxon 

Botany 

Genetics 

Information Systems 

Mathematics and Statistics 

Optometry and Vision Sciences 

Zoology 

School of Chemistry 

School of Earth Sciences 

School of Physics 

Veterinary Science 

Professor Ivan Caple 

BVSc Melb PhD NSW MCVSc 

School of Veterinary Science: 

• Veterinary Science 

• Veterinary Clinic and Hospital 

Graduate Studies 

Professor Barbara Evans 

BSc PhD DipPhEd TSTC 

Melbourne Business School 

Professor John Seybolt 

BA Yale MBA Utah PhD Cornell 

Victorian College of the Arts 

Professor Andrea Hull AO 

BA DipEd Sydney FAIM 

Asia Institute 

Professor Michael Leigh 

BA Melb PhD Cornell 

Bio21 Molecular Science and 

Biotechnology Institute 

Professor Dick Wettenhall 

BSc Melb PhD Monash 

School of Enterprise 

Ms Mariann Fee 

BA Grad Dip 

Academic units listed within Faculties are departments unless otherwise indicated. 

Faculty and departmental titles are as at 31 December 2006. 

68 


statutory reporting/ 

Statutory Reporting 

1. Environmental Sustainability 

The University of Melbourne is 

committed to improving environmental 

sustainability, both through its role as an 

educational institution and as one of the 

largest public organisations in Victoria. 

University Environmental Policy 

Throughout 2006 the University 

continued to implement the University 

Environmental Policy. The principal 

environmental challenges recognised 

in the policy include improved efficiency 

of resource use, minimising waste 

generation and reducing discharges 

to the environment from University 

activities. 

Ongoing sustainability activities 

undertaken during 2006 included: 

• Recycling programs for office 

waste, cardboard, aluminium, toner 

cartridges, batteries, overhead 

transparencies and CDs. 

• Hazardous waste collection with 

recycling of the hazardous waste, or 

if necessary, disposal in accordance 

with Environment Protection Authority 

requirements. 

• Purchase of green energy electricity 

sourced from renewable generators. 

• Engagement of all faculties and 

divisions of the University in achieving 

the goals of the Environmental Policy, 

strategic objectives and legislative 

compliance. 

• The University’s Environmental 

Advisory Committee established 

sustainability objectives and targets 

for 2006. Significant achievements in 

meeting the objectives and targets 

are summarised in Table 1. 

Talloires Declaration 

As a signatory to the internationallyrecognised 

Talloires Declaration: 

University Presidents for a Sustainable 

Future, the University again reported 

against its obligations under the 

Declaration’s Ten Point Plan. The 2006 

report provides a detailed overview 

of the range of campus initiatives, 

academic programs, and research 

Table 1. Sustainability Objectives & Achievements 2006 (summary) 

Objective 

1. Manage and reduce trade 

waste disposal 

2. Material Safety Data Sheet 

(MSDS) Management 

Systems 

3. Computer and Polystyrene 

Recycling Trial 

4. Establish environment 

web site publicising the 

University’s recycling 

streams 

Achievement 

A major review of trade waste arrangements 

was undertaken for the Parkville campus. 

New trade waste applications with improved 

monitoring arrangements were implemented. 

A MSDS management system was established. 

Inventories for laboratory chemicals were 

progressively added to the system throughout 

the year. 

A Computer and Polystyrene Recycling Program 

was established and implemented. 

A new dedicated web page for publicising the 

University’s recycling streams was established 

as part of EHS web site. 

5. Reduction of energy use An extensive energy audit was conducted. 

The energy audit identified potential energy 

consumption savings that can be made and 

which will reduce CO 2 

emissions. 

6. Reduction in water use Achieved 34 percent reduction in water 

consumption at Parkville campus during 

2006, compared to 2004 consumption. 

A draft Sustainability Strategic Plan for 2007-2010 was developed in 2006 

and is scheduled for consultation, endorsement and publication during 2007. 

activities which support environmentally 

responsible citizenship across the 

University, the wider community and 

internationally. 

Environmental Management 

System (EMS) 

The University’s EMS, encompassing 

the Environment Health and Safety 

(EHS) Manual, was subject to a major 

review in 2005. Further revision of the 

EHS Manual procedures are discussed 

in the Statement on Occupational 

Health and Safety (OHS) on p 77 of 

this report. 

Regulatory Activity 

• There was no regulatory activity from 

the Environment Protection Authority 

Victoria or any other environmental 

regulator during 2006. 

External Environmental 

Management System (EMS) Audits 

• Lloyds Register Quality Assurance 

conducted a surveillance audit in 

April and May 2006 to verify that the 

University’s EMS conforms to the 

requirements of the ISO14001:2004 

Environmental Management 

Standard. The University’s ISO 

14001:2004 certification demonstrates 

the University’s commitment to 

environmentally sustainable operations. 

The audit noted one major nonconformance 

resulting from inconsistent 

trade waste monitoring throughout 

the University’s Parkville campus and 

sampling of emissions at the Werribee 

campus. Corrective actions to date have 

resulted in its downgrading to a minor 

non-conformance. Further corrective 

action is in progress. The one minor 

non-conformance noted was remedied 

during the year. 


69

Internal Environmental 

Management System 

(EMS) Audits 

70 

• A program of internal audits of 

the University’s EMS continued 

throughout 2006. The local EMS is 

internally audited against the criteria 

of ISO 14001:2004 in all academic 

and administrative divisions of 

the University and a number of its 

controlled entities. During 2006 over 

450 criteria were audited across the 

University. Overall the University 

achieved less than three percent nonconformances. 

Auditees are required 

to develop action plans to address all 

adverse audit findings and the internal 

audit program reviews the auditees’ 

progress in addressing the 

non-conformances. 

Educating the University and 

the Wider Community 

• The University’s environmental 

communication and education 

initiatives include celebrating World 

Environment Day. This breakfast 

event was well attended in 2006 

and the keynote speaker was the 

Honourable Tom Roper, Board 

Member of the Climate Institute and 

Greenfleet Australia, and Project 

Leader for the Global Sustainable 

Energy Islands Initiative. 

• The University offers major courses in 

postgraduate environmental studies 

through the Office for Environmental 

Programs (OEP), which coordinates 

the Graduate Environmental Program 

(GEP). The GEP comprises six 

postgraduate coursework programs 

on environmental sustainability 

across 10 faculties. International 

benchmarking indicates the 

interdisciplinary program is highly 

innovative in its field. In 2006, 

162 students were enrolled in the 

OEP program and enrolments 

are increasing. The OEP also has 

ongoing arrangements to collaborate 

with Parks Victoria on a number of 

environmental research topics. 


• The University hosted a number 

of guest lectures and conferences 

related to the environment in 2006, 

including the Australian Institute of 

Energy (AIE) National Conference. 

2. Freedom of Information 

In the period from 1 July 2005 to 30 

June 2006 eight new requests for 

documents were received. These 

comprised four requests for personal 

documents and four requests for nonpersonal 

documents. Access in full was 

given to two requests, partial access 

to two requests, ‘no documents found’ 

was advised in three cases and one was 

unresolved within the reporting period. 

The Principal Officer of the University 

is the Vice-Chancellor. The Senior-Vice 

Principal is the formally designated 

Freedom of Information Manager of the 


All formal requests for access to 

documents of the University, under 

the provisions of the Freedom of 

Information Act, are to be made in 

writing to: 

The Senior Vice-Principal 

The University of Melbourne 

PARKVILLE VIC 3010 

Where access is granted to inspect, 

obtain or purchase material, 

arrangements will be made during 

normal office hours, Monday – Friday, 

8.45am to 5.00pm. 

Enquiries on any aspect of the Freedom 

of Information legislation, or assistance 

that may be required to identify 

documents of the University available 

under Freedom of Information, should 

be directed to: 

Mr Len Currie 



PARKVILLE VIC 3010 

Telephone: (03) 8344 4000 

A request for access to a document 

of the University should include 

sufficient information about that 

document to enable it to be identified. 

Assistance will be provided by an 

officer of the University in cases 

where details supplied about a 

document are not sufficiently clear to 

identify that document. 

Charges for access to documents of the 

University under the provisions of the 

Freedom of Information Act will be in 

accordance with the standard provisions 

of the Freedom of Information (Access 

Charges) Regulation 1993. 

A: Categories of Documents 

Major Information Series: 

1. University Council Minutes 1853– 

2. Academic Board (formerly Professorial 

Board) Minutes 1853– 

3. Central Administration 

Correspondence 

4. Staff Correspondence Files 

5. Faculty Records 

6. Academic Department Records 

7. Computer Records and Systems 

Computer-based systems have been 

developed to assist the University’s 

administrative processes in the 

following major areas of activity: 

• Student Administration 

• Human Resources 

• Financial Accounting 

• Budgeting 

• Research Administration 

A wide range of smaller systems has 

also been developed. Within this overall 

structure, a vast range of individual 

computer reports is produced to meet 

the needs of University Administration, 

faculties, academic departments and 

students.


B: Documents Containing 

Policies, Procedures and 

Guidelines 

Documents listed within this section 

cover University publications that 

include details of policies, operating 

procedures and/or guidelines that may 

have an effect or impact on members 

of the public in their dealings with 

the University. All documents listed 

may be inspected on application to 

the University Secretary, where not 

otherwise available in the Melbourne 

University Bookshop or other public 

venues. Many documents are available 

on the web at: www.unimelb.edu. 

au/policyprocs/ 

1. University Act, Statutes 

and Regulations 

The University Act, Statutes and 

Regulations are detailed in the Calendar. 

Regulations dealing with courses, 

scholarships and endowments are 

available on the web at: http://www. 

unimelb.edu.au/ExecServ/calendar/ 

2. Standing Resolutions 

of Council 

Standing Resolutions of Council codify 

the terms of reference, membership 

and functions of committees of 

Council and collect together all Council 

resolutions on meeting procedures etc. 

and are available on the web at: www. 

unimelb.edu.au/unisec/Srvol1/ 

3. Manuals/Rules of Procedure 

Rules and practices affecting members 

of the public in their dealings with the 

University will be found, in the first 

instance, in the following online or 

paper publications: 

• Calendar 

weblink: http://www.unimelb.edu. 

au/ExecServ/calendar/ 

• PhD Handbook – Guide to Rules and 

Regulations 

weblink: http://www.gradstudies. 

unimelb.edu.au/phd/enrolcandid/ 

phdhbk/ 

• Undergraduate Studies Handbook 


au/HB/index.html 

• Student Diary 

• Personnel Policy and Procedures 


au/ppp/docs/ 

• Finance Policy and Procedures 


au/FinPPM/FPP0home.htm 

• Environmental Health and 

Safety Manual 


au/ehsm/ 

• IT Policy Strategies and Procedures 

Guide 

weblink: http://www.infodiv.unimelb. 

edu.au/itpp/ 

• Management Policy & 

Procedures Manual 


au/records/manual.html 

• Compliance Manual 


au/compliance/manual/index.html 

C: Publicity Services 

The University issues a large number 

and range of publications. A list of 

official publications is available on the 

web at: www.unimelb.edu.au/unisec/ 

foipart2.html 

D: Report Literature 

• Growing Esteem: The University of 

Melbourne Strategic Plan 2006 

• The University of Melbourne Annual 

Report 2006 

• The University of Melbourne Annual 

Budget 2006 

• Towards Environmental Sustainability 

• Learning and Teaching Management 

Plan 2006 

• Research and Research Training 

Plan 2006 

• The University of Melbourne 

Research Report 

• The University of Melbourne 

Research Performance 

3. Whistleblowers 

Protection Act 2001 

University Procedures 

The University is committed to ensuring 

full compliance with the aims and 

objectives of the Whistleblowers 

Protection Act 2001 (The Act). It 

tolerates neither improper conduct by 

University staff and Council members 

nor the taking of reprisals against those 

who come forward to disclose 

such conduct. 

The University recognises the value 

of transparency and accountability in 

its administrative and management 

practices and supports the making 

of disclosures that reveal corrupt 

conduct, conduct involving a substantial 

mismanagement of public resources, 

or conduct involving a substantial 

risk to public health and safety or the 

environment. 

The University will take all reasonable 

steps to protect people who make such 

disclosures from any detrimental action 

in reprisal for making the disclosure. 

It will also afford natural justice to 

any person who is the subject of the 

disclosure. 

The University’s procedures for 

reporting disclosures of improper 

conduct or detrimental action by the 

University, its staff or members of 

Council were updated in June 2006 and 

can be viewed at http://www.hr.unimelb. 

edu.au/advicesupport/whistleblowers 

The procedures enable disclosures to 

be made to the protected disclosure 

coordinator or to one of the nominated 

protected disclosure officers. 

Disclosures may be made by students, 

staff member or by members of 

the public. 


71

Disclosures 

Two protected disclosures on a 

common issue were made in 2005. 

The Ombudsman determined them 

to be public interest disclosures. The 

University investigated the matters in 

2006 and reported its finding to the 

Ombudsman together with a series of 

recommendations as to actions it would 

take. The University reported to the 

Ombudsman on the outcome of those 

measures and the Ombudsman advised 

that the matter had been finalised. 

In 2006, a staff member made a 

protected disclosure based on the 

alleged misconduct of another staff 

member. The Ombudsman determined 

it to be a public interest disclosure. 

The matter was investigated, and the 

University advised the Ombudsman of a 

series of recommendations as to future 

action. Most of the recommendations 

have been implemented, but the matter 

has yet to be finalised. Advice on the 

outcome of this complaint will be 

reported in the year that the matter is 

concluded. 

In February 2006, a staff member 

made a complaint about a range of 

matters which he subsequently stated 

was a whistleblower complaint. The 

Ombudsman was advised of the 

complaint. The staff member later made 

a complaint of detrimental action by the 

University directly to the Ombudsman. 

The Ombudsman has determined that 

the complaint is a protected disclosure, 

sought University advice as to whether 

the matters complained about constitute 

a public interest disclosure, and 

indicated his intention to investigate 

the allegation of detrimental action. 

The outcome of that investigation and 

any consequent actions, either by the 

Ombudsman or the University, will 

be reported in the year in which the 

investigation is concluded. 

4: Complaints Made 

to and Investigated by 

the Ombudsman 

Two students lodged complaints 

with the Ombudsman in 2006, one 

concerning retrospective alteration 

of a marking guide after it had been 

used to mark students’ papers, and the 

other concerning the processes used 

to determine a student’s assessment 

and the handling of her appeal against 

the result. In the first matter the 

Ombudsman found that the marking 

guide had been amended after results 

had been finalised, and recommended 

that the University review its processes 

in relation to the content and use of 

such guides. He also recommended 

that the University consult with the 

Public Records Office to ensure its 

policy as it relates to the destruction of 

examination script books complies with 

its obligations under the Public Records 

Act 1973. The University accepted both 

recommendations. In the matter related 

to a student’s assessment and her 

subsequent appeal, the Ombudsman 

found that the University’s actions were 

reasonable in the circumstances and 

made no recommendations. 

No staff member lodged a grievance 

with the Ombudsman in 2006. 

Grievance Procedures and 

Complaints to the Ombudsman 

The University developed a set of 

student grievance procedures in 2003, 

taking into account comments from 

the Victorian Government review 

of governance in universities. The 

procedures were reviewed again in early 

2004 in the light of some experience 

at using them and were amended 

to include some clarification about 

further processes of appeal to outside 

bodies. The current student grievance 

procedures are on the University’s web 

site at: www.services.unimelb.edu. 

au/grievances/ 

The grievance procedures in the 

University of Melbourne 2006 

Enterprise Bargaining Agreement apply 

to all staff grievances, except where 

specific procedures exist. Specific 

processes exist for handling grievances 

relating to sexual harassment or 

unlawful discrimination. Staff members 

may also be aggrieved by decisions 

made by the University in relation 

to promotion, reclassification of general 

staff positions and disciplinary penalties 

for misconduct and unsatisfactory 

performance. Specific review 

committees exist to handle each of 

these issues. Current staff grievance 

procedures are on the University’s 

web site at: www.hr.unimelb.edu. 

au/advicesupport/grievance 

The University’s grievance web sites 

have been further developed to provide 

greater assistance to staff and students 

wishing to utilise grievance procedures. 

5. Statement on the 

University’s Risk 

Management Strategy 

The management of risk is a core 

framework component of the 

University’s Accountability Structure 

which integrates annual cycles of 

strategic and operational planning, 

reporting and quality assurance. The 

University seeks to alert staff to the 

ongoing importance of monitoring 

and addressing risk in all areas of 

University activity. 

A number of structures and processes 

are in place for identifying and managing 

risk. Senior Officers are assigned 

accountability for designated areas 

of risk. The Risk Management 

Committee has responsibility for 

monitoring the performance of 

University Officers in managing risk 

and for ensuring risk is managed in a 

coordinated manner. Several Council 

Committees exercise a governance 

role on behalf of Council in ensuring 

that designated risk accountabilities are 

being properly exercised. 

72 



The Audit and Risk Committee which 

reports directly to both the University’s 

Finance Committee and Council, 

continues to encompass the governance 

responsibility for broad monitoring 

of the handling of University risk. 

The membership of this committee 

comprises external members of Council 

and other external appointees with 

expertise in audit and risk management. 

In carrying out its oversight role over 

University subsidiary companies and 

controlled entities, the Subsidiaries Sub- 

Committee, a Committee reporting to 

the Finance Committee, reviews annual 

budgets and business plans, including 

risk management plans, and regularly 

monitors performance against budget 

and plan. 

Two other University Committees 

exercising significant risk management 

accountabilities are: 

• Finance Committee 

- oversight of financial risks of 

the University 

- oversight of University Companies 

and other major incorporated 

entities; and 

• Investment Management Committee 

- oversight of the external placement of 

the University’s investment portfolio 

A number of operational units have 

specific risk mitigation programs – for 

instance Property and Campus Services, 

which oversees the University’s 

Environment Health and Safety 

Program. The University’s Compliance 

Officer reports regularly to the 

University Council on matters relevant 

to compliance with the University’s 

statutory obligations. 

The University has an integrated 

strategic risk assessment model to 

address University risks in addition 

to those identified by the academic and 

administrative departments. This now 

forms part of the Annual Planning Cycle. 

The University’s Risk Management 

Committee monitors the 

implementation of action plans 

developed to address risks with a high 

residual risk rating. 


73

University Controlled Entities – levels of financial and reputational risk 

PRINCIPAL OBJECTIVES 

LEVEL OF 

FINANCIAL RISK 

(HIGH, MEDIUM 

OR LOW) 

LEVEL OF 

REPUTATIONAL RISK 

(HIGH, MEDIUM OR 

LOW) 

Corporate Vehicles 


Health Institute (The 

University of Melbourne) 

Limited 

To undertake research, development, education, training, 

consultancy and other activities in regard to medicine, dentistry, 

health, health science and related areas. 

To provide facilities for study, research and education. 

Medium 

Low 

Australian Music 

Examinations 

Board (Vic) Limited 

To represent in Victoria the Australian Music Examinations Board 

as the State Committee for the purposes of the conduct within 

the State of Victoria and elsewhere of music examinations. 

To aid, promote and assist music, music education and the 

appreciation of music. 

Low 

Low 

Australian National 

Academy of Music Limited 

To operate as a national centre of excellence in practical music 

education and training. 

To provide practical music education and training for 

outstandingly talented music students. 

Low 

Low 

UMEE Limited (formerly 


Private Limited) 

To commercialise educational services. 

To conduct English Language teaching. 

Medium 

Medium 


Limited 

To undertake the education of University graduates, 

undergraduates and others in management studies. 

To conduct post-experience courses for practising managers. 

To conduct postgraduate research programs into 

management and related areas, and to promote, licence, 

develop and apply the results of research activities. 

Low 

Low 


Publishing Limited 

To publish the best scholarly writing from Australia 

and overseas, both within and independent of the 

tertiary sector. 

To develop and disseminate text and image-based intellectual 

property in a variety of formats and media. 

To retain and develop Melbourne University Press and the 

Miegunyah Press as imprints of the company. 

Medium 

Low 

Melbourne Ventures Pty 

Limited 

To create a valuable portfolio of successfully 

commercialised University of Melbourne technologies by 

making available to University staff the requisite skills and 

resources to ensure that technologies developed by the 

University are given the best possible opportunity 

to succeed in the commercial marketplace. 

Low 

Low 

MU Student Union Limited 

To advance the education of students of the University by 

providing amenities, services and facilities for the benefit of 

students, utilising the Amenities and Services Fee funding and 

such other revenue or reserves of the company as may be 

appropriate in the circumstances. 

Low 

Low 

The Meanjin Company 

Limited 

To publish Meanjin, a quarterly literary magazine reflecting the 

breadth of contemporary thinking in literature and other art 

forms or broader issues of the times. 

Low 

Low 

Victorian Institute for 

Chemical Sciences Limited 

To advance chemical sciences in Victoria Low Low 

74 



University Business Operations – levels of financial and reputational risk 


LEVEL OF 

FINANCIAL RISK 

LEVEL OF 

REPUTATIONAL RISK 

(HIGH, MEDIUM 

OR LOW) 

(HIGH, MEDIUM OR 

LOW ) 


Bookshop 

To work closely with departments to supply 

students with teaching and text materials to meet 

course and research requirements at affordable 

prices. 

To maintain a high quality campus bookstore web 

site and provide new services electronically as 

they evolve. 

To operate on a commercial basis and return a 

profit to the University. 

Low 

Low 

Melbourne Theatre 

Company 

To develop new Australian writing by the 

presentation of first-rate productions of new 

work, as well as by a program of commissions, 

workshops and dramaturgy. 

To promote the development of an 

Australian repertoire. 

To present first class and original productions of 

classic works from the past. 

To operate on a commercial basis and as a 

professional theatre company. 

Low 

Low 

Veterinary Clinic and 

Hospital 

To provide teaching material for undergraduate 

and postgraduate students in veterinary science. 

Medium 

Low 

International House 

To be a place of residence, education and 

corporate life for students and for the purpose 

of encouraging international understanding and 

friendship among students. 

Low 

Low 

Medley Hall 

To be a place of residence, education and 

corporate life for students and for the purpose of 

encouraging understanding and friendship among 

students. 

Low 

Low 

W T Kendall Hall 

To be a residence for students in the third and 

fourth years of Veterinary Science. 

Low 

Low 


75

External Investments – levels of financial and reputational risk 


LEVEL OF 

FINANCIAL 

RISK 

LEVEL OF 

REPUTATIONAL 

RISK 

(HIGH, 

MEDIUM 

OR LOW) 

(HIGH, MEDIUM 

OR LOW ) 

Universitas 21 LBG 

To provide a pre-eminent brand for educational services 

supported by a strong quality assurance framework. 

To allow member universities to pursue significant 

global initiatives that would be beyond their individual 

capabilities. 

Low 

Low 

Universitas 21 Global Pte 

Ltd (Joint venture between 

Universitas 21 LBG and 

Thomson Learning) 

To be an e-University that provides leading-edge access 

to educational programs designed to meet the needs of 

individuals and corporations in the information economy 

of the 21st century. 

To build academic programs that incorporate the 

traditions and strengths of its founders and add the value 

of the internet as a powerful educational medium. 

Medium 

Medium 

Universitas 21 Equity Ltd 

To hold part of the issued share capital of Universitas 

21 Global. 

Medium 

Medium 

Bio21 Australia Limited 

To develop and enhance the reputation of Victoria as a 

leading academic centre for the advancement of 

knowledge in fundamental areas of biology, medicine, 

science and technology. In cooperation with other 

universities, other educational and scientific institutions 

and other persons to conduct world class training, 

financially viable biotechnology research and to facilitate 

the development and commercialisation of the results of 

that research. 

Low 

Low 

NeuroSciences Victoria Ltd 

To organise and focus neuroscience research so that 

the social and economic potential offered by Australian 

neuroscience is realised. 

To promote and mediate large-scale collaborative 

research programs that will result in discoveries and 

technologies for the management of neurological and 

psychiatric disorders. 

Low 

Medium 

UIIT Pty Ltd 

To provide seed funding to further develop promising 

research outcomes. 

To assist with the commercialisation of such research 

outcomes. 

Low 

Low 

UniSeed Management 

Pty Ltd 

To provide management services to UIIT Pty Limited. Low Low 

76 



Table 2. Occupational Health and Safety Strategic Plan 2004-2006 

Objective 

1. Establish and maintain an OHS management 

system that facilitates a structured approach to 

the management of OHS risk. 

2. Provide adequate human, financial and time 

resources to ensure the effectiveness and 

sustainability of the system. 

3. Keep up-to-date with relevant health and 

safety legislative obligations. Achieve and 

maintain compliance with these obligations. 

4. Promote a culture that encourages people 

to proactively manage health and safety risk 

through education, instruction, information 

and supervision. 

5. Clearly define and communicate staff, student 

and contractor responsibilities in relation to 

health and safety. 

6. Proactively identify and manage health and 

safety via a documented hazard identification, 

risk assessment, risk control and monitoring 

process. 

7. Improve processes that ensure that incidents 

and hazards are promptly investigated where 

appropriate, and control measures are put in 

place to eliminate or minimise the chance of a 

repeat event. 

8. Maintain building infrastructure, plant and 

equipment in a safe condition with documented 

safe systems of work. 

9. Routinely monitor and review OHS 

performance to achieve continual improvement. 

Achievement 

A major review of the OHS Management System was undertaken in 2005 

and resulted in the revision and publication of some new/revised OHS 

procedures in the EHS Manual in 2006. The revision of the EHS Manual is 

scheduled for completion in 2007. 

Additional human resources, including one EHS Manager, two EHS 

advisers and one administration position, were added to the EHS 

Unit in 2006. In addition, various local faculties, departments and 

schools employed additional human resources to implement the OHS 

Management System. 

Additional financial resources were approved for the recruitment of four 

faculty-based EHS staff for high-risk faculties. 

The EHS unit staff continued to monitor health and safety legalisation, 

regulations, codes and relevant Australian Standards and amended the 

university’s EHS Manual and other guidance materials where necessary. 

The University continued to provide Health and Safety information 

to all staff through the local induction program, the staff orientation 

program and various formal training programs including EHS Roles and 

Responsibilities. University publications were also used to promote and 

publicise health and safety procedures and programs. 

New/revised health and safety procedures in the EHS clearly define the 

responsibilities for staff, students and contractors. 

The EHS Contractor Management system used in Property and Campus 

Services clearly defines and communicates contractors’ responsibilities. 

Additional information included in the 2006 student diary communicates 

key student health and safety responsibilities. 

During 2006 a new EHS Risk Management procedure providing for 

improved health and safety risk assessments was launched and 

published. 

During 2006 an improved EHS Incident Reporting and Investigation 

procedure with an accompanying electronic incident reporting system 

was developed. 

Increased financial resources were allocated to building infrastructure 

maintenance during 2006. 

Safe Operating Procedures (SOP) continued to be reviewed or developed 

and implemented in many areas of the university. 

In particular, SOP were developed and implemented for Dookie campus 

operations during 2006. 

The OHS performance of the University continued to be monitored by 

OHS Committee, Risk Management Committee and Risk and Audit 

Committee throughout 2006. The performance measures include External 

Audit results, Internal Audit results, Regulatory Activity, Claims and 

Incident statistics. 


77

6. Statement On Occupational 

Health and Safety 

(OHS) Matters 

The University has a broad OHS 

risk profile, including specific risks 

associated with laboratory operations, 

workshop operations, chemical storage 

handling and use, radiation sources and 

biological agents. 

The University’s OHS Policy requires 

the university to take all reasonable 

precautions to provide and maintain, so 

far as is practicable, an environment that 

is safe and without risks to health for 

employees, students and visitors. 

The University OHS strategic plan 2004- 

2006 set OHS goals by detailing nine 

strategic objectives. Table two (p 77) 

details significant achievements during 

2006 towards meeting these objectives. 

A draft OHS strategic plan for 2007- 

2010 developed in 2006 is scheduled 

for consultation, endorsement and 

publication during 2007. 

Occupational Health and Safety 

Management System (OHSMS) 

The University’s OHSMS encompassing 

the Environmental Health and Safety 

(EHS) Manual was subject to a major 

review in 2005. Revision of the EHS 

Manual procedures continued 

during 2006. 

New or revised procedures published 

in the EHS Manual in 2006 include EHS 

Risk Management, EHS Procedure 

Writing and EHS Incident Reporting 

& Investigation: 

New or revised health and safety 

procedures developed during 

2006 include: 

Emergency Preparedness Response, 

First Aid, and EHSMS Audit Procedure. 

These procedures are awaiting 

endorsement by the Risk Management 

Committee prior to publication in the 

EHS Manual. 

Environment Health and Safety 

Unit Resources 

During 2006 EHS advisers commenced 

providing services to faculties and 

budget divisions for all EHS matters, 

rather than, as previously, having 

responsibility for particular hazard types 

across the University. The employment 

of two additional EHS Advisers and one 

additional EHS Manager has facilitated 

an improved level of service. 

Table 3. Training Provided During 2006 

Training Course 

No of Attendees 

Roles and Responsibilities for Employees 286 

Roles and Responsibilities for Supervisors 223 

Risk Management & Incident Investigation 41 

Risk Management 177 

Manual Handling 690 

Individual Ergonomic Training & Assessment 

270 (approx) 

Gas Safety 100 

Chemical Management 253 

ChemWatch MSDS Database 38 

Personal Protective Equipment 218 

Radiation Safety 39 

Building Emergency Controller & Warden 146 

Health and Safety Representative Refresher (one Day) 20 

Action 

Number 

Visits to University Workplaces by WorkSafe 35 

Occupational Health and Safety Convictions 

Prohibition Notices issued by WorkSafe 

Training 

Over 2000 attendees underwent OHS 

related training throughout 2006. 

Table three lists the types of training 

and the number of attendees for each 

type of training provided. 

Table 4. WorkSafe Victoria Activity at the University During 2006 

Improvement Notices issued by WorkSafe 5 

Nil 

Nil 

WorkSafe Intervention Programs 2 

78 



Regulatory Activity 

The University continued to work 

cooperatively with OHS regulators. 

WorkSafe Victoria was the most active 

OHS regulator at the University during 

2006. Table four provides a summary 

of WorkSafe Victoria activity at the 

University 

Improvement Notices: 

The improvement notices, which have 

since been complied with, related to: 

• Inadequate maintenance records for 

an air receiver, Dookie 

• Inadequate guarding to a belt drive 

associated with the air receiver, Dookie 

• Inadequate guarding to a belt drive 

These improvement notices have been 

complied with. 

An improvement notice issued to the 

Northern Hospital concerning training 

of students undertaking venous blood 

collection was later set aside through 

the WorkSafe internal review process. 

The University participated in the 

WorkSafe programs: 

• High-risk Plant (Pressure Vessels) 

Intervention Program pursuant to 

which the University has: 

- implemented a plan that identifies all 

registerable pressure vessels 

- developed a hazard identification, risk 

assessment and control strategy 

- put in place an inspection plan for all 

University pressure vessels 

WorkSafe continues to monitor and 

verify that the program is effective in 

controlling risk and conforms to legal 

requirements. 

• High-risk Plant (Lifts) Intervention 

Program pursuant to which the 


- completed an extensive project 

performing detailed risk assessments 

of all of the University’s 145 lifts. 

Property & Campus Services, 

Maintenance section developed and 

commenced implementation of a 

strategy to carry out upgrades to the 

lifts over the next four years. 

Occupational Health and 

Safety Performance 

As part of an overall objective to provide 

a safer work environment Occupational 

Health and Safety performance 

reports are provided to Deans and 

Vice-Principals twice yearly to assist 

managers to identify problem areas, 

resource requirements and training 

needs in their workplace. 

Table five below sets out the indicators 

the University uses to monitor OHS 

performance. All significant incidents 

are reviewed in detail and, where 

appropriate, action plans are put in place 

to minimise the risk of recurrence. 

The table indicates a pleasing 

improvement in all areas during 2006 

with a particularly significant 44 

percent reduction in the time lost injury 

frequency rate (lost time injuries per one 

million hours worked). 

Incidents Requiring Notification 

to WorkSafe 

The University reported two dangerous 

occurrences and eight serious injuries 

to WorkSafe Victoria in accordance with 

the incident notification requirements of 

the Occupational Health and Safety Act 

2004. These incidents involved: 

• Dangerous occurrences 

- Small fire in an instrument room 

(Zoology Building) 

- Small fire in lift motor room (Redmond 

Barry Building) 

• Serious injuries 

- Immediate medical treatment resulting 

from a loss of a bodily function (use of 

arm) due to a fall down stairs (Property 

and Campus Services) 

- Immediate medical treatment 

resulting from a serious laceration 

(Academic Services) 


resulting from a serious laceration 

(Faculty of Engineering) 


resulting from electric shock 

(Melbourne Theatre Company) 


resulting from loss of bodily function 

(use of foot) due to a trip on footpath 

(Faculty of Arts) 

- Medical treatment within 48 

hours resulting from exposure to 

a substance (Faculty of Medicine 

Dentistry and Health Sciences) 

- Medical treatment within 48 hours, 

possibly resulting from exposure to 

a substance (Information Services) 

- Treatment as an inpatient in hospital 

due to a trip on footpath (Faculty of 

Arts) 

These incidents have been investigated 

and corrective and preventative actions 

have been instigated to prevent or 

reduce the risk of reoccurrence. 

Table five indicates a pleasing 

improvement in all areas during 

2006 with a particularly significant 44 

percent reduction in the time lost injury 

frequency rate (lost time injuries per 

one million hours worked). 

Table 5. Occupational Health and Safety Incident Statistics 

Performance indicator 2003 2004 2005 2006 

Reported Incidents (including Injury 

and Illness) 

775 922 1,066 1,063 

Incidence Rate 12.47 14.84 14.65 14.02 

Number of WorkCover Claims 155 130 135 110 

Number of Lost Time Incidents 53 52 44 26 

Lost Time Incident Rate 0.86 0.84 0.61 0.34 

Days lost due to Reported Injuries - 947 829 800 

Fatalities 0 0 0 0 


79

External Occupational Health 

and Safety Management System 

(OHSMS) Audits 

Lloyds Register Quality Assurance 

conducted a surveillance audit in 

April and May 2006 to verify that 

the University’s OHSMS conforms 

to the requirements of Initial Level 

SafetyMAP (4th edition). Certification 

of the University’s SafetyMAP is one 

of the requirements of the University’s 

workers’ compensation self-insurance 

license provided through the Victorian 

WorkCover Authority. 

One University-wide non-conformance 

assessment and two non-conformance 

assessments relating to the Dookie 

campus have since been addressed, 

with the audit criteria brought back into 

conformance in October 2006. 

Internal Occupational Health 

and Safety Management System 

(OHSMS) Audits 

A program of Internal Audits of the 

University’s OHSMS against the criteria 

of Initial Level SafetyMAP (4th edition) 

continued throughout 2006. During 

2007 over 1000 criteria were audited in 

all academic and administrative divisions 

of the University and a number of its 

controlled entities. Overall the University 

achieved less than five percent nonconformances. 

Auditees were required to develop 

action plans to address all adverse audit 

findings, with progress monitored. 

Consultative Framework 

Employees continue to be represented 

by elected and trained employee 

Health and Safety Representatives 

in designated workgroups across the 

University.There were approximately 

50 elected employee Health and 

Safety Representatives holding office 

during 2006. 

Each Faculty and Budget Division 

has an established Environment 

Health and Safety (EHS) Committee. 

Membership of these committees 

includes both employer and employee 

representatives. The employee 

representatives on Faculty and 

Budget Division EHS Committees are 

generally elected Health and Safety 

Representatives. 

The University-wide Occupational 

Health and Safety Committee (OHSC) 

membership consists of equal numbers 

employer and employee representatives 

elected from the University’s Health 

and Safety Representatives. Four new 

(and one re-elected) Health and Safety 

Representatives were elected to the 

OHSC during 2006. The OHSC met 

four times during 2006, with minutes 

of the meetings published on the 

University’s Web site. 

7. Summary of Regulations 

The University administers Statutes 

and Regulations of the University 

and Resolutions of the Council, in 

accordance with the provisions of the 

Melbourne University Act 1958. The 

Statutes, Regulations and Resolutions 

are substantial and varied and too 

numerous to summarise. They are 

recorded in three volumes of University 

publications. A copy of the Statutes, 

Regulations and Resolutions may be 

inspected in the Baillieu Library of the 

University, or may be viewed on the 

world wide web at www.unimelb.edu.au 

8. National Competition Policy 

and Competitive Neutrality 

Requirements 

The University has established policies 

and procedures to ensure adherence to 

its obligations under the Trade Practices 

Act 1974 and to practise competitive 

neutrality in relation to relevant 

significant business activities. 

Detailed information and guidelines 

may be obtained online from web sites 

of the Melbourne Research Office, 

Financial Operations Department 

and the University’s Compliance 

Management Program. Advice on 

the law of trade practices and 

competitive neutrality is provided by 

each of these areas. 

9. Compliance with the 

Educational Services for 

Overseas Students Act 

(ESOS Act) 2000 

The University has established policies, 

procedures and student support 

services to ensure that it is compliant 

with the Educational Services for 

Overseas Students Act 2000 and the 

National Code of Practice for Registration 

Authorities and Providers of Education 

and Training for Overseas Students. 

The University of Melbourne, as a 

requirement of the ESOS Act, has 

met DEST enrolment variation reporting 

responsibilities and time lines in 2006. 

80 



Statutes enacted, repealed and amended during 2006 

Statute 1.1 Preliminary Amended 

Statute 2.1 Elections to Council Amended 

Statute 9.14 

10. Conformity with the 

Building Act 1993 

Major projects (new and existing 

building works) 

The following mechanisms have 

been implemented to ensure that 

new buildings and works on existing 

buildings conform with building 

standards: 

• Property and Campus Services closely 

examine each major project prior to 

the selection of a project team. 

• The selected design consultants for 

each project are University-registered 

or Department of Infrastructureregistered 

consultants. 

The Howard Florey Institute of 

Experimental Physiology and Medicine 

Amended 

Statute 9.17 Murdoch Children’s Research Institute Amended 

Statute 9.27 Hawthorn Institute of Education Limited Repealed 

Statute 9.52 

The Australia and New Zealand School 

of Government Limited 

Enacted 

Statute 9.53 The Brain Research Institute Enacted 

Statute 9.54 The Austin Research Institute Enacted 

Statute 10.4 Foundations Repealed 

Statute 11.2 Enrolment – General Provisions Amended 

Statute 11.5 Unsatisfactory Progress Repealed and 

re-enacted 

Statute 12.1 Examiners Amended 

Statute 13.1 Student Discipline Amended 

Statute 14.1 Intellectual Property Amended 

• All design and management of project 

works is undertaken in accordance 

with the University’s Project 

Management and Design Manual. 

The Manual has been developed 

to advise consultants of the 

management procedures and design 

standards required by the University 

and includes procedures covering 

environmental and ccupational health 

and safety matters. 

• The University has promulgated 

procedures similar to those required 

by the private sector for the issue of 

building permits. 

• Where required by the Building Code 

of Australia, an external building 

surveyor is appointed for each project 

to give advice regarding planning and 

building permits, certification of final 

inspection and occupancy permits. 

• The University ensures that an 

asbestos audit is carried out for each 

project prior to the commencement of 

construction work. 

• All projects are monitored by the 

University project managers and 

appointed consultants, in order to 

ensure that the projects comply 

with current building regulations and 

statutory requirements. 

• The Project Management Procedures 

Manual is used by University project 

managers to ensure that University 

policy and procedures are followed 

in relation to works. 

• Sixty-seven projects, each 

with a value of more than $50,000, 

were completed in 2006. Each project 

was carried out in accordance with 

building regulations and statutory 

requirements. 

• An Occupancy Permit or certificate 

of Final Inspection is obtained for 

every project for which there is a 

building permit. 

In addition, 21 projects were not 

subject to Certification of Plans or 

Building Surveyor involvement during 

construction. 

These included: 

• Infrastructure upgrades (nine) 

• Equipment upgrades (two) 

• Minor works (10) 

None of these projects come within the 

jurisdiction of the conformity with the 

Building Act 1993 or required structural 

change necessitating building surveyor 

inspections. 


81

82 

11. Statement Concerning Compulsory Non-Academic Fees, 

Subscriptions and Charges 

Amendments to the Tertiary Education Act 1993, enacted in 2000, require the University to publish as part of its Annual Report 

details of compulsory non-academic fees collected and the purposes to which these have been applied. The amendment also 

requires details of moneys provided to student organisations and the manner in which those student organisations spent the funds. 

Following the introduction of the Higher Education Support Amendment (Abolition of Compulsory Up-Front Student Union 

Fees) Act 2005, effective 1 July 2006, the University is no longer able to charge a compulsory Amenities and Services Fee to 

students. To maintain essential services, the University of Melbourne will provide transitional funding to University associations 

for a period of three years. 

A. Fees Collected by the University of Melbourne 

The amount of compulsory non-academic fees (referred to as the Amenities and Services Fees) collected by the University 

of Melbourne from students and prospective students during the year ended 31 December 2006 is shown in the following 

statement. This statement also shows the purposes for which the University distributed these fees and the amounts of money 

made available to University operations and student related organisations. Following the abolition of compulsory Amenities and 

Services Fees in 2006, the retained earnings of the fund were distributed to student organisations. 

The University of Melbourne Amenities and Services Fee Fund Statement 

For the year ended 31 December 2006 

Fee Collections 


2006 $ 2005 $ 

Fees Collected from Students (excluding Land Food Resources (LFR) Higher Education Students) 11,700,611 11,872,346 

Fees Collected from Land Food Resources Higher Education Students 148,689 161,846 

Other Income 

Interest Earned 533,269 314,167 

12,382,569 12,348,359 

Less Disbursements 

Student Organisations – 

MU Student Union Ltd (MUSUL) 7,610,642 7,588,011 

University of Melbourne Student Union Inc (UMSU Inc) 135,000 - 

University of Melbourne Postgraduate Association Inc 1,524,990 1,446,779 

Land Food Resources Student Associations 201,312 286,712 

Victorian College of the Arts Student Union 115,000 - 

University Operations and Expenses – 

Sport and Physical Recreation Centre 3,088,428 2,942,115 

Child Care Services 207,194 202,140 

Administration of Fund 84,474 82,414 

Consultant Fee - 10,423 

Student Personal Accident Insurance 100,424 95,721 

13,067,464 12,654,315 

Profit/(Loss) for the Year (684,895) (305,956) 

Retained Surplus at Start of Year 684,895 990,852 

Retained Surplus at End of Year - 684,896 

These funds are represented by: 

Cash 111,393 2,682,645 

Sundry Debtors – Fees 3,607 - 

Prepaid Expenses - 78,649 

115,000 2,761,294 

Less: 

Amount owing to Melbourne University Student Union Incorporated (MUSUI) - 1,846,210 

Amount owing to Victorian College of the Arts Student Union 115,000 230,188 

115,000 2,076,398 

- 684,896


In accordance with audited financial statements received from the University’s student organisations the purposes for which 

these organisations spent the money made available to them and the names of other bodies to which they made money 

available and their respective amounts were as follows: 

1. MU Student Union Limited (MUSUL) 

2006 $ 2005 $ 

Amenities and Services Fees received 7,691,006 7,588,011 

Less Operating Expenditures 

Student Representative Groups, Advocacy, Club and Societies and Media 2,268,662 1,596,018 

Student Computing Centre 188,367 161,363 

Legal Advice 61,858 81,435 

Health Care 140,383 116,385 

Visual and Performing Arts 493,915 573,263 

Libraries and Reading Rooms 389,145 330,175 

Funding to Other Student Bodies 95,473 126,210 

Information Centre 199,723 152,501 

Orientation Information 60,086 82,504 

Support for Overseas Students 194,592 133,891 

Building Services to Support 989,096 943,072 

Administrative Services to Support 3,250,383 2,553,278 

8,331,683 6,850,095 

Less Capital Expenditures 

Furniture and Fittings 206,376 98,793 

Computer Equipment 73,132 81,973 

Motor Vehicles - 11,155 

Building Refurbishment 306,671 626,020 

General Equipment 6,192 11,237 

Theatre Equipment 10,446 4,832 

Library Books 47,402 43,362 

650,219 877,372 

Net Result from Application of Amenities and Services Fee Income (1,290,896) 1,441,510 

Funding made available to other bodies from Amenities and Services Fee Revenue 

Funding to Non Politically Affiliated Clubs and Societies * - 71,905 

Funding to Politically Affiliated Clubs and Societies * - 9,319 

Outstations 95,473 126,210 

UMSU Inc 2006 Funding 1,790,119 - 

UMSU Inc Balance of 2005 Unspent Fees paid in 2006 327,509 - 

* All clubs and societies were funded by UMSU Inc in 2006. 


83

2006 $ 2005 $ 

2. University of Melbourne Postgraduate Association Inc. 

Amenities and Services Fees received 1,524,990 1,446,779 

Less Operating and Capital Expenditures 

Representation and Education Activities 453,331 783,715 

Administrative Services to Support 602,170 902,006 

Capital Expenditure 134,963 17,471 

1,190,464 1,703,192 

Net Result from Application of Amenities and Services Fee Income 334,526 (256,413) 

Funding made available to other bodies from Amenities and Services Fee Revenue 

Council of Australian Postgraduate Associations Inc 12,727 54,409 

3. Land and Food Resources (LFR) Student Associations (Consolidated) 

Amenities and Services Fees received * 82,033 273,316 


Food and Beverages 3,123 10,271 

Sport and Physical Recreation 19,388 41,570 

Health Care 932 2,987 


Libraries and Reading Rooms - 977 

Academic Support 11,416 29,972 

Orientation Information 2,686 6,277 

Publications and Web site - 744 

Personnel Expenses - 63,131 

Building Services - 9,091 

Administrative Services 94,124 127,846 

Inter Campus Social Functions 1,512 - 

Legal Advice 3,782 - 

Liquidation Costs ** - 25,403 

142,500 329,133 

Net Result from Application of Amenities and Services Fee Income (60,467) (55,817) 

Funding made available to other bodies from Amenities and Services Fee Revenue - - 

* As at 31 December 2006, the Gilbert Chandler Postgraduate Student Association had yet to invoice MU Student Union Ltd 

for the final instalment of funding for 2006. An amount of $6,855 is owed and will be claimed in 2007. 

** The Burnley Student Association Inc was placed into a members’ voluntary liquidation on 12 April 2005.


B. Fees Collected by the Victorian College of the Arts 

The amount of compulsory non-academic fees (referred to as the Amenities and Services Fees) collected by the Victorian 

College of the Arts from students and prospective students during the year ended 31 December 2006 is shown in the following 

statement. This statement also shows the purposes for which the College distributed these fees and the amounts of money 

made available to College operations and the student organisation. 

2006 $ 2005 $ 

Victorian College of the Arts Amenities and Services Fee Fund Statement 

For the year ended 31 December 2006 

Fee Collections 

Fees Collected from Students 402,799 429,055 

Less Disbursements 

Student Organisation 

Victorian College of the Arts Student Union Inc (incl. GST) 361,099 285,455 

College Operations 

Health Services 29,000 47,000 

Student Welfare Services (including Employment, Financial Aid and Housing) 12,700 96,600 

402,799 429,055 

In accordance with audited financial statements received from the College’s student organisation the purposes for which it 

spent the money made available and the names of other bodies to which they made money available and their respective 

amounts were as follows: 

2006 $ 2005 $ 

Amenities and Services Fees received 285,454 285,505 


Legal and Dental Services 7,500 7,500 


Personal Accident Insurance for Students 11,246 12,681 

Orientation Information 6,288 - 

Administrative Services 270,930 250,424 

301,150 277,528 

Net Result from Application of Amenities and Services Fee Income 15,696 7,977 

Funding made available to other bodies: 

National Union of Students Inc 935 4,250 

Australian Campus Union Managers Association Inc - 530 

University of Melbourne Postgraduate Association Inc 3,000 3,000 

MU Student Union Limited 7,500 7,500 

12. Further Information 

The University has the following information available 

on request: 

• Declarations of pecuniary interests; 

• Details of shares held beneficially by senior officers as 

nominees of a statutory authority or subsidiary; 

• Details of publications produced; 

• Details of major promotional, public relations and 

marketing activities; 

• Details of changes in prices, fees, charges, rates and 

levies charged; 

• Details of major external reviews; 

• Details of overseas visits; 

• Occupational health and safety assessments and 

measures; and 

• A list of major committees. 

Enquiries regarding the above should be addressed to: 

Mr Len Currie 



VICTORIA 3010 

Telephone: (03) 8344 4000 


85

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 2006 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 the Australian equivalents to International Financial 

Reporting Standard AASB 118 Revenue. Both the National Health and 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 $90.007 million for the year 

ended 31 December 2006. The consolidated results include the operations of a group which, apart from the University itself, 

comprises 11 subsidiaries. The major entities in the University of Melbourne Group are the Victorian College of the Arts, 

Melbourne Business School Limited and UMEE Ltd. 

86 


financials/ 

Sources of Income 

Combined operating income at $1.283 billion increased by $70.659 million or 5.8% on 2005 with the most significant 

improvements being recorded in income from Australian Government Financial Assistance ($44.196 million), Fees and Charges 

($21.250 million) and Investment Income ($15.314 million). 

Australian Government Recurrent Financial Assistance* 23.5% 

Other Australian Government Financial Assistance 14.6% 

HECS-HELP 7.9% 

FEE-HELP 2.2% 

State Government Financial Assistance 3.7% 

Investments, Fees and Charges and Other Income 42.3% 

Grants, Donations and Bequests 5.8% 

* 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 2006 totalled $1.193 million, full details of which appear in the supporting 

notes to the Income Statement and in Note 46. Of these expenditures 53.2% was spent on salaries and other staff costs 

(52.3% in 2005). 

Employee Benefits and On Costs 53.2% 

Depreciation and Amortisation 6.3% 

Repairs and Maintenance 3.7% 

Scholarships 4.3% 

Other Expenses 32.5% 

Financial Position 

There was no significant change in the financial position of the University and its subsidiaries. 

Event occurring after Reporting Date 

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. This legislation was gazetted and proclaimed on 31 August 2006. As a result, all assets and liabilities 

of the Victorian College of the Arts (VCA) were assumed by the University from 1 January 2007, and the VCA ceased to exist as 

a separate reporting entity from that date. 


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 $84.431 million. 


87

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 $26.672 million 

earned from investments. Total assets of the Trust Funds amounted to $479.204 million as at 31 December 2006. 

Auxiliary Operations 

The following operations encompass activities related to the University which are managed as business operations. The 

operating surplus for the year of $0.934 million is represented by: 

Auxiliary Operations 

Surplus/(Deficit) 

$’000 

Child Care Services (11) 

Halls of Residence 

- International House 14 

- Kendall Hall 53 

- Medley Hall (77) 

Melbourne Theatre Company 628 

Melbourne University Bookshop 722 

Sport and Physical Recreation Centre 41 

The Ian Potter Museum of Art 239 

Veterinary Clinic and Hospital (675) 

934 

Subsidiaries 

These are statutory entities which are either formed under a specific Act of Parliament or incorporated under the Corporations 

Act. The activities of these entities are represented in the consolidated University. Additional financial information for each 

subsidiary is contained in Notes 42 and 43. The operating result after tax for the year of $3.645 million is represented by: 

Subsidiary 

Surplus/(Deficit) 

$’000 

Australian International Health Institute (University of Melbourne) Limited 76 

Australian Music Examinations Board (Victoria) Limited 219 

Australian National Academy of Music Limited 73 

Meanjin Company Limited 33 

Melbourne Business School Limited Group 1,310 

Melbourne University Publishing Limited 2,366 

Melbourne Ventures Pty Ltd (1) 

MU Student Union Limited 1,509 

UMEE Ltd Group (888) 

Victorian College of the Arts 588 

The Victorian Institute for Chemical Sciences Limited (1,640) 

3,645 

88 


financials/ 

Five Year Financial Summary 

The University of Melbourne and Its Subsidiaries 

2006 2005 2004 2003# 2002# 

REVENUE AND EXPENSE ($’000) 

Income 1,282,566 1,211,907 1,166,332 1,006,646 954,452 

Expenses 1,192,560 1,134,934 1,072,845 944,305 885,912 

Profit/(Loss) Before Income Tax 90,006 76,973 93,487 62,341 68,540 

Income Tax (Expense)/Benefit 1 17 (51) 2,015 (2,066) 

PROFIT/(LOSS) AFTER TAX 90,007 76,990 93,436 64,356 66,474 

BALANCE SHEET ($’000) 

Reserves 2,553,953 2,422,438 2,321,596 2,237,905 2,029,976 

Retained Surplus/(Deficit) 1,034,332 742,867 683,136 601,060 550,414 

TOTAL EQUITY 3,588,285 3,165,305 3,004,732 2,838,965 2,580,390 

Current Liabilities* 285,530 249,530 159,031 167,039 151,459 

Non-Current Liabilities 273,600 268,861 311,410 284,190 289,958 

EQUITY AND LIABILITIES 4,147,415 3,683,696 3,475,173 3,290,194 3,021,807 

Current Assets 261,993 237,307 254,504 189,859 196,602 

Non-Current Assets 3,885,422 3,446,389 3,220,670 3,100,334 2,825,205 

TOTAL ASSETS 4,147,415 3,683,696 3,475,174 3,290,193 3,021,807 

CASH FLOWS ($’000) 

Cash Flows from Operating 

Activities including 

Government Funding: 

- Inflows 1,259,935 1,217,986 1,148,556 987,848 934,780 

- Outflows 1,087,023 1,020,549 977,254 859,062 796,006 

NET CASH INFLOW FROM 

OPERATING ACTIVITIES 172,912 197,437 171,302 128,786 138,774 

* A change in accounting standards has required certain employee entitlements previously categorised as 

non-current liabilities, to be classified as current liabilities. This change has been applied to 2005 and 2006 only. 

# From 1 January 2005 the University of Melbourne was required to prepare Financial Statements using Australian equivalents 

to International Financial Reporting Standards (AIFRS). Financial Statements of the University of Melbourne 

until 31 December 2004 had been prepared in accordance with previous Generally Accepted Accounting Principles 

(AGAAP). AGAAP differs in certain respects from AIFRS as such certain accounting, valuation and consolidation methods 

applied using AGAAP were amended to comply with AIFRS. The comparative figures in respect of 2004 have been restated 

to reflect these adjustments, however the years 2003-2002 stated here have not been adjusted and therefore represent 

the treatment under AGAAP. 


89

Five Year Financial Summary 

The University of Melbourne and Its Subsidiaries 

2006 2005 2004 2003# 2002# 

SOURCES OF INCOME ($’000) 

Australian Government Recurrent Financial 301,153 274,818 265,102 242,255 234,418 

Assistance 

Other Australian Government Financial 

187,134 178,534 153,150 137,030 107,512 

Assistance 

HECS-HELP: 

- HECS-HELP Australian Government 

75,655 70,445 69,204 69,635 70,939 

Payments 

- HECS-HELP Student Payments 25,272 24,703 20,477 19,011 16,973 

FEE-HELP 28,171 24,120 21,801 16,129 9,946 

State Government Financial Assistance 48,098 39,031 37,598 33,533 51,689 

Investments, Fees and Charges 543,184 529,134 529,780 419,674 405,562 

Grants, Donations and Bequests 73,899 71,122 69,220 69,379 57,413 

TOTAL INCOME 1,282,566 1,211,907 1,166,332 1,006,646 954,452 

EXPENDITURES ($’000) - 

Employee Benefits and On Costs 634,916 593,607 555,340 489,210 457,498 

Depreciation and Amortisation 75,360 75,959 72,786 74,365 64,741 

Repairs and Maintenance 44,233 38,513 37,280 41,841 39,135 

Scholarships 50,768 47,899 43,393 38,352 31,895 

Other Expenses 387,283 378,956 364,046 300,537 292,643 

TOTAL EXPENDITURE 1,192,560 1,134,934 1,072,845 944,305 885,912 

KEY RATIOS - 

Australian Government Recurrent Grants 

including payments from HECS-HELP and 

HECS-HELP Student Payments 402,080 369,966 354,783 330,901 322,330 

Other University Income 880,486 841,941 811,549 675,745 632,122 

TOTAL UNIVERSITY INCOME ($’000) 1,282,566 1,211,907 1,166,332 1,006,646 954,452 

Australian Government Recurrent Grants 

and HECS-HELP as a % of Total 

University Income 31 31 30 33 34 

Number of Students (EFTSL) 33,856 34,008 33,612 32,870 31,913 

Average Australian Government Recurrent 

Grants per Student $ 

11,876 10,879 10,555 10,067 10,100 

DEST Funded Student Load 21,175 21,379 20,942 21,199 21,689 

Average Australian Government Recurrent 

Grants ** – per DEST funded position $ 

14,222 12,855 12,659 11,428 10,808 

** Includes funding for the Commonwealth Grants Scheme, Institutional Grants Scheme, Research Training Scheme 

and Research Infrastructure Block Grants. 

# From 1 January 2005 the University of Melbourne was required to prepare Financial Statements using Australian equivalents 

to International Financial Reporting Standards (AIFRS). Financial Statements of the University of Melbourne until 

31 December 2004 had been prepared in accordance with previous Generally Accepted Accounting Principles (AGAAP). 

AGAAP differs in certain respects from AIFRS as such certain accounting, valuation and consolidation methods applied 

using AGAAP were amended to comply with AIFRS. The comparative figures in respect of 2004 have been restated to reflect 

these adjustments, however the years 2003-2002 stated here have not been adjusted and therefore represent the treatment 

under AGAAP.


financial 

statements/ 

Contents 

Income Statement 92 

Balance Sheet 93 

Statement of Changes in Equity 94 

Cash Flow Statement 95 

Notes to and forming part of the Financial Statements 96 

1. Statement of Significant Accounting Policies 96 

2. Australian Government Financial Assistance 105 

3. State Government Financial Assistance 107 

4. Fees and Charges 107 

5. Investment Income 108 

6. Royalties, Trademarks and Licences 108 

7. Consultancy and Contract Research 108 

8. Other Income 108 

9. Employee Benefits and On Costs 109 

10. Depreciation and Amortisation 110 

11. Repairs and Maintenance 110 

12. Finance Costs 110 

13. Bad and Doubtful Debts 110 

14. Accounting and Auditing Services 111 

15. Other Expenses 111 

16. Sale of Assets 111 

17. Income Tax Expense/(Benefit) 112 

18. Receivables 112 

19. Inventories 113 

20. Other Financial Assets at Fair Value 113 

21. Non-Current Investments 113 

22. Assets Classified as Held for Sale 114 

23. Other Financial Assets at Fair Value 114 

24. Other Non-Financial Assets (Current) 114 

25. Property, Plant and Equipment 115 

26. Intangible Assets 122 

27. Payables 122 

28. Interest Bearing Liabilities 122 

29. Provisions 123 

30. Other Current Liabilities 124 

31. Reserves and Retained Surplus 125 

32. Financial Instruments 127 

33. Responsible Persons and Executive Officers 132 

34. Contingent Assets and Contingent Liabilities 134 

35. Commitments 135 

36. Superannuation Commitments 136 

37. WorkCover – Self Insurance 137 

38. Related Party Transactions 138 

39. Consultants 139 

40. Investments in Subsidiaries 140 

41. Particulars In Relation to Each Consolidated Entity 141 

42. Subsidiaries – Income Statement Analysis 142 

43. Subsidiaries – Balance Sheet Analysis 143 

44. Events Occuring after Reporting Date 144 

45. Notes to the Statement of Cash Flows 144 

46. Detailed Income Statement – University 145 

47. Detailed Balance Sheet – University 147 

48. Detailed Cash Flow Statement – University 148 

49. Aquittal of Australian Government Financial Assistance 

(University only) 149 

Statement by University Officers 154 

Auditor-General’s Report 155 

Compliance Index to Disclosure Requirements 2006 157 


91

Income Statement 

for the year ended 31 December 2006 

CONSOLIDATED 

UNIVERSITY 

2006 2005 2006 2005 

NOTE $’000 $’000 $’000 $’000 

Income from Continuing Operations 

Australian Government Financial Assistance - 

Australian Government Grants 2 488,287 453,352 485,213 448,596 

HECS-HELP Australian Government Payments 2 75,655 70,445 75,655 70,445 

FEE-HELP 2 28,171 24,120 27,076 23,285 

State Government Financial Assistance 3 48,098 39,031 47,725 38,864 

HECS-HELP Student Payments 25,272 24,703 24,372 24,316 

Superannuation - Deferred Government Contributions (5,433) 12,610 (4,667) 9,162 

Fees and Charges 4 363,368 342,118 295,413 269,914 

Investment Income 5 114,025 98,711 104,304 82,046 

Royalties, Trademarks and Licences 6 5,066 3,015 5,054 3,015 

Consultancy and Contract Research 7 24,388 24,700 24,040 24,345 

Other Income 8 115,669 119,102 102,025 103,191 

Total Income from Continuing Operations 1,282,566 1,211,907 1,186,210 1,097,179 

Expenses from Continuing Operations 

Employee Benefits and On Costs 9 634,916 593,607 574,063 529,353 

Depreciation and Amortisation 10 75,362 75,959 68,628 68,598 

Repairs and Maintenance 11 44,233 38,513 41,437 35,322 

Finance Costs 12 10,887 10,727 10,767 10,610 

Bad and Doubtful Debts 13 546 613 517 422 

Accounting and Auditing Services 14 755 1,524 390 398 

Other Expenses 15 431,294 401,381 410,644 367,220 

Superannuation - Deferred Employee Benefits (5,433) 12,610 (4,667) 9,162 

Total Expenditure from Continuing Operations 1,192,560 1,134,934 1,101,779 1,021,084 

Operating Result from Continuing Operations 

before related Income Tax Expense 90,006 76,973 84,431 76,095 

Income Tax (Expense)/Benefit 17 1 17 - - 

Net Operating Result for the Year 90,007 76,990 84,431 76,095 

The above Income Statement should be read in conjunction with the accompanying notes. 

92 


financial statements/ 

Balance Sheet 

as at 31 December 2006 

Current Assets 

Equity 

CONSOLIDATED 

Statutory Funds - - - - 

Reserves 31(a) 2,553,953 2,422,438 2,360,939 2,249,705 

Retained Surplus 31(b) 1,034,332 742,867 936,525 649,550 

Total Equity 3,588,285 3,165,305 3,297,464 2,899,255 

The above Balance Sheet should be read in conjunction with the accompanying notes. 

UNIVERSITY 


NOTE $’000 $’000 $’000 $’000 

Cash and Cash Equivalents 45(a) 68,435 72,576 36,494 50,826 

Receivables 18 75,189 72,173 63,338 58,240 

Inventories 19 7,083 6,458 5,501 5,230 

Other Financial Assets at Fair Value 20 101,900 69,869 84,458 52,631 

Other Non-Financial Assets 24 9,386 12,731 7,620 11,203 

Assets Classified as Held for Sale 22 - 3,500 - - 

Total Current Assets 261,993 237,307 197,411 178,130 

Non-Current Assets 

Receivables 18 148,626 103,815 134,825 90,515 

Available-for-Sale Financial Assets 21 1,266,499 1,062,221 1,186,107 1,004,215 

Held-to-Maturity Investments 21 - 20,220 - - 

Other Financial Assets at Fair Value 23 4,145 4,145 23,674 23,674 

Property, Plant and Equipment 25 2,465,606 2,255,355 2,268,460 2,072,329 

Intangible Assets 26 475 587 50 - 

Other Non-Financial Assets 71 46 - - 

Total Non-Current Assets 3,885,422 3,446,389 3,613,116 3,190,733 

Total Assets 4,147,415 3,683,696 3,810,527 3,368,863 

Current Liabilities 

Payables 27 69,120 68,180 59,890 56,228 

Interest Bearing Liabilities 28 3,317 2,867 2,448 2,354 

Provisions 29 111,587 105,015 103,655 96,608 

Other Current Liabilities 30 101,506 72,191 90,283 63,933 

Liabilities Associated with Assets Classified as 

Held for-Sale 22 - 1,277 - - 

Total Current Liabilities 285,530 249,530 256,276 219,123 

Non-Current Liabilities 

Payables 27 12,000 - 12,000 - 

Interest Bearing Liabilities 28 138,796 141,127 137,365 139,813 

Provisions 29 122,720 127,677 107,422 110,672 

Other Non-Current Liabilities 84 57 - - 

Total Non-Current Liabilities 273,600 268,861 256,787 250,485 

Total Liabilities 559,130 518,391 513,063 469,608 

Net Assets 3,588,285 3,165,305 3,297,464 2,899,255 


93

Statement of Changes in Equity 


CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Total Equity at the Beginning of the Financial Year 3,165,305 3,004,732 2,899,255 2,745,117 

Impairment Gains/(Losses) on Land and Buildings 

Taken to Equity, Net of Tax 31(a) 6,088 (22,626) 6,088 (22,626) 

Gain/(Loss) on Revaluation of Land and Buildings, Net 

of Tax 31(a) 191,601 6,925 177,380 - 

Gain/(Loss) on Revaluation of Works of Art, Net of Tax 31(a) 10,310 - 9,603 - 

Gain/(Loss) on Revaluation of Other Collections, 

Net of Tax 31(a) 6,225 - 6,225 - 

Available-for-Sale Investments: 

- Valuation Gains/(Losses) Taken to Equity, Net of Tax 31(a) 119,155 99,416 114,482 100,670 

- Transferred to Profit and Loss on sale, Net of Tax 31(a) (512) - - - 

Exchange Differences on Translation of Foreign 

Operations 31(a) 106 (132) - - 

Net Income Recognised Directly in Equity 332,973 83,583 313,778 78,044 

Operating Result for the Year after Related Income 

Tax Expense 90,007 76,990 84,431 76,094 

Total Recognised Income and Expense for the Year 422,980 160,573 398,209 154,138 

Total Equity at the End of the Financial Year 31 3,588,285 3,165,305 3,297,464 2,899,255 

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 

94 



Cash Flow Statement 


Cash Flows from Operating Activities - 

CONSOLIDATED UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Inflows: 

Australian Government - 

- CGS, Research and Other DEST Grants 509,998 460,403 510,206 460,403 

- Higher Education Loan Programmes 103,826 94,565 102,731 93,730 

- Other Australian Government Grants 4,061 4,399 731 1,278 

State Government Grants 30,098 29,645 29,724 29,528 

HECS-HELP - Student Payments 25,272 24,703 24,372 24,316 

Dividends Received 96,831 82,010 93,560 77,443 

Interest Received 18,259 18,014 15,040 14,165 

Fee-for-Service Revenue 337,347 341,039 266,301 255,064 

Other Income 134,243 163,203 120,098 148,703 

Outflows: 

Payments to Employees (627,914) (592,200) (564,024) (529,735) 

Payments to Suppliers (inclusive of Goods and Services Tax (GST)) (307,344) (302,900) (265,571) (240,548) 

Interest Paid (10,860) (10,692) (10,767) (10,610) 

GST - Net Payment to Australian Taxation Office (5,992) (5,423) (5,101) (4,326) 

Other Outflows (134,913) (109,329) (152,460) (124,828) 

Net Cash Inflow (Outflow) from Operating Activities 45(b) 172,912 197,437 164,840 194,585 

Cash Flows from Investing Activities - 

Inflows: 

Proceeds from Sale of Property, Plant and Equipment 2,218 2,223 1,412 2,030 

Proceeds from Sale of Available-for-Sale and Other Investments 855,941 1,203,283 800,420 1,145,578 

Outflows: 

Purchase of Property, Plant and Equipment (90,020) (87,589) (84,773) (81,208) 

Purchase of Available-for-Sale and Other Investments (942,236) (1,285,135) (895,239) (1,231,033) 

Purchase of Intangible Assets (129) - (32) - 

Net Cash Inflow (Outflow) from Investing Activities (174,226) (167,218) (178,212) (164,633) 

Cash Flows from Financing Activities - 

Inflows: 

Loans Repaid 1,040 1,447 2,290 1,547 

Other Inflows 25 - - - 

Outflows: 

Loans Granted (802) (1,694) (802) (1,694) 

Repayment of Interest Bearing Liabilities (3,196) (2,148) (2,448) (2,148) 

Net Cash Inflow (Outflow) from Financing Activities (2,933) (2,395) (960) (2,295) 

Net Increase/(Decrease) in Cash and Cash Equivalents (4,247) 27,824 (14,332) 27,656 

Cash and Cash Equivalents at the Beginning of the Year 72,576 44,803 50,826 23,170 

Effect of Foreign Exchange Rate on Cash and Cash Equivalents 106 (51) - - 

Cash and Cash Equivalents at the End of the Year 45(a) 68,435 72,576 36,494 50,826 


95

Notes to and forming part of the Financial Statements 

Note 1 Statement of Significant Accounting Policies 

The principal accounting policies adopted by The University of Melbourne in the preparation of the financial report for the year 

ended 31 December 2006 are set out below. These policies have been consistently applied to all the years presented, unless 

otherwise stated. The financial report includes separate financial statements for the University as an individual entity and the 

consolidated entity consisting of the University and its subsidiaries. The University and its subsidiaries are referred to in this 

financial report as the Group or the consolidated entity. 

1.1 Basis of Preparation 

This general purpose financial report has been prepared in accordance with Australian equivalents to International Financial 

Reporting Standards (AIFRS), the Financial Management Act 1994, Urgent Issues Group Interpretations and other authoritative 

pronouncements of the Australian Accounting Standards Board. The financial statements have also been prepared in 

accordance with the guidelines issued by the Department of Education, Science and Training (DEST) applicable to the 2006 year. 

Compliance with IFRS 

Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). The 

University and its subsidiaries are considered to be not-for-profit entities, as such the financial report has been prepared in 

accordance with the not-for-profit requirements of AIFRS. In some cases these requirements are inconsistent with International 

Financial Reporting Standards (IFRS). 

Reporting Basis and Conventions 

The financial statements have been prepared on an accruals basis and are based on the historical cost convention as modified 

by the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss and 

certain classes of property, plant and equipment. 

Critical Accounting Estimates 

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. 

The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimates and judgments are 

continually evaluated and are based on historical experience and other factors, including expectations of future events that are 

believed to be reasonable under the circumstances. The estimates and assumptions that have a higher risk of causing a material 

adjustment to the carrying amounts of assets and liabilities within the next financial year include: 

(i) 

Key Estimates - Impairment 

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead 

to impairment of assets. Where an impairment trigger exists, the recoverable amount of the assets is determined. 

(ii) Key Estimates – Determination of Fair Values 

The determination of fair values for financial assets and liabilities for which there is no observable market price requires the 

use of valuation techniques as described in note 1.8. For financial instruments that trade infrequently and have little price 

transparency, fair value is less objective, and requires varying degrees of judgement depending on liquidity, concentration, 

uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument. 

(iii) Key Judgements – Financial Asset and Liability Classification 

The group’s accounting policies provide scope for assets and liabilities to be designated on inception into different 

accounting categories in certain circumstances: 

a) In designating financial assets at fair value through profit and loss, the group has determined that it has met one of the 

criteria for this designation set out in accounting policy 1.8. 

b) In classifying financial assets as held-to-maturity, the Group has determined that it has both the positive intention and 

ability to hold the assets until their maturity date as required in accounting policy 1.8. 

1.2 Principles of Consolidation 

The Financial Statements consist of a consolidated Income Statement, Balance Sheet, Statement of Changes in Equity 

and a Cash Flow Statement. The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of 

the University as at 31 December 2006 and their results for the year then ended. 

Subsidiaries are all those entities over which the University has the power to govern the financial and operating policies, 

generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential 

voting rights that are currently exercisable or convertible are considered when assessing whether the University controls 

another entity. 

Subsidiaries are fully consolidated from the date on which control is transferred to the University. They are de-consolidated from 

the date that control ceases. 

96 




Note 1 Statement of Significant Accounting Policies (continued) 

Intercompany transactions, balances and unrealised gains on transactions between consolidated entities are eliminated. 

Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. 

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by 


The Financial Statements show “University” in addition to “Consolidated” information. The term “University” in this context 

covers all aspects of total operations with the exclusion of the subsidiaries (see (5) below). 

In order to provide further information on the University, an additional Income Statement, Balance Sheet and Cash Flow 

Statement (see Notes 46, 47 and 48) have been prepared in columnar form. 

The activities and entities that make up the University and Consolidated information are as follows: 


(1) University General Activities 

A summary of the University’s Teaching, Research and Administrative activities. 

(2) University Trust Activities 

A summary of University activities supported by funds derived from endowments and bequests and income earned 

thereon. A major part of trust monies is received for, and can only be applied to, restricted purposes. For this reason 

Trust Funds are separately identified. 

(3) University Auxiliary Operations 

A summary of the activities of the University’s Auxiliary Operations Group which encompasses the University’s 

semi-independent enterprises that operate on a commercial basis in support of core University activities. This group 

comprises the following organisations: 

Child Care Services 

Halls of Residence: 

- International House 

- Kendall Hall 

- Medley Hall 

Melbourne Theatre Company 

Melbourne University Bookshop 

Sport and Physical Recreation Centre 

The Ian Potter Museum of Art 

Veterinary Clinic and Hospital 

(4) University [being the aggregation of (1), (2) and (3)] 

Consolidated (University and its Subsidiaries) 

(5) Subsidiaries 

The subsidiaries of the University are: 

Australian International Health Institute Ltd ACN 084 268 655 

Australian Music Examinations Board (Vic) Ltd ACN 050 464 634 

Australian National Academy of Music Ltd ACN 067 405 190 and its subsidiary: 

- ANAM Foundation Ltd ACN 110 698 550 

UMEE Ltd ACN 081 182 685 and its subsidiaries: 

- Melbourne Enterprises International Ltd ACN 073 950 062 * 

- MUP Services Pty Ltd ACN 082 978 578 * 

- MU Private (NZ) Ltd 


97


(5) Subsidiaries (continued) 

- Melbourne Information Management Pty Ltd ACN 087 644 595* 

- UMEE UK Ltd (formerly Hawthorn Edinburgh Ltd) ** 

- Hawthorn English Language Centres (Canada) Ltd ** 

Melbourne Business School Ltd ACN 007 268 233 and its subsidiaries: 

- The Melbourne Business School Foundation 

- The Melbourne Business School Foundation Ltd ACN 057 776 711 

- Mt Eliza Graduate School of Business and Government Limited ACN 008 394 732 

- Melbourne Business School Building Fund 

Melbourne University Publishing Ltd ACN 103 214 713 

Melbourne Ventures Pty Ltd ACN 106 845 783 and its subsidiary: 

- UM Commercialisation Pty Ltd ACN 122 930 269 

MU Student Union Ltd ACN 107 286 706 

The Meanjin Company Ltd ACN 005 097 325 

The Victorian College of the Arts *** 

The Victorian Institute for Chemical Sciences Limited ACN 107 013 936 # 

* Not Operational during the year. 

** On 31 May 2006, the business and assets of UMEE UK Ltd and Hawthorn English Language Centres (Canada) Ltd were 

sold. From 1 June 2006 the companies became non-operational. 

*** The Victorian College of the Arts (VCA) is a body politic and corporate established under the Victorian College of the Arts 

Act 1981. Under the current accounting standards, the University is deemed to have a reporting responsibility for the VCA which 

is treated as a subsidiary for consolidation purposes. On 15 November 2005, the VCA Council signed a Heads of Agreement 

with the University which has led to the establishment of VCA as a faculty of the University from 1 January 2007. On 29 August 

2006 the Melbourne University (Victorian College of the Arts) Act 2006 was enacted. The Act dissolved the VCA and its Council 

and provided for the integration of the VCA as a Faculty within the University. On 1 January 2007, the University became the 

successor in law to the VCA and all assets and liabilities of the VCA were transferred to the University of Melbourne. Further 

details are included in Note 44 to the Financial Statements. 

# The Victorian Institute for Chemical Sciences Limited operates on a June financial year-end in order to align its reporting to 

the Department of Innovation, Industry and Regional Development. 

The companies listed, with exception of the overseas subsidiaries in UMEE Ltd, are all incorporated in the State of Victoria. 

The University has more than 50% of the voting rights in each of these companies with the exception of Melbourne Business 

School Ltd where the University holds 45% of the voting rights. The Melbourne Business School Ltd is deemed to be a 

subsidiary for the purpose of this report. 

In accordance with AASB 127 Consolidated and Separate Financial Statements the financial statements of each of the above 

subsidiaries have been included in the Consolidated Statements. However, summary information is provided in notes 42 and 43. 

1.3 Foreign Currency Translation 

(i) Functional and Presentational Currency 

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 

economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are 

presented in Australian dollars, which is the University’s functional and presentational currency. 

(ii) Transactions and Balances 

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of 

the transactions. The assets and liabilities of overseas subsidiaries are translated at year-end rates and operating results are 

translated at the rates ruling at the date of transactions. 

Transactions in foreign currencies which are carried out by the library for book purchases are converted to Australian currency 

at the rate of exchange on the date on which the currency is purchased. The University hedges its foreign currency exposure in 

respect of major purchases of equipment from overseas countries. At the reporting date there were no such hedges in place 

(2005 nil). 

98 




Note 1 Statement of Significant Accounting Policies (Continued) 

1.4 Income Recognition 

Income is measured at the fair value of the consideration received or receivable. Income is recognised for the major business 

activities as follows: 

(i) Government Financial Assistance 

Government grants are recognised at their fair value when there is reasonable assurance that the grant will be received 

and the Group has complied with the attached conditions. Such grants are treated as non-reciprocal transfers in accordance 

with AASB 1004 Contributions. 

Government grants which have outstanding performance or return conditions are recognised in accordance with AASB 

118 Revenue with reference to the percentage of completion method. Australian Government Research Project income 

is recognised in accordance with this standard. The stage of completion is measured by reference to total expenditure 

incurred to date compared with the funding provided. The University regards the receipt of such income as a reciprocal 

transfer as the University is required to provide the necessary services in return for grant funding. A liability is recognised 

in the Balance Sheet in respect of Research Project Income which is unearned at the balance date. AASB 118 Revenue 

requires revenue to be recognised in the reporting periods in which the services are rendered. 

(ii) Fees and Charges 

Fee for service revenue is recognised upon the delivery of the service. Where revenue of a reciprocal nature has been 

clearly received in respect of programs or services to be delivered in the following year, such amounts are deferred and 

disclosed as revenue in advance in accordance with AASB 118 Revenue. 

(iii) Investment Income 

Dividends are taken into income when the shares are declared ex dividend. Interest income is recognised on an accruals 

basis taking into account the interest rates applicable to the financial assets. 

(iv) Other 

Income from the sale of goods is recognised upon the delivery of goods to customers. 

Income in the form of endowments and bequests is brought to account as revenue when received. 

All income is stated net of Goods and Services Tax (GST). 

1.5 Income Taxation 

The University of Melbourne and its subsidiaries, with the exception of Melbourne Ventures Pty Ltd and some of the wholly 

owned subsidiaries of UMEE Ltd, are exempt from income tax pursuant to Part 50.1 of the Income Tax Assessment Act 

1997. The overseas subsidiaries of UMEE Ltd are subject to income tax in the relevant tax jurisdictions. 

Melbourne Ventures Pty Ltd and the wholly owned subsidiaries of UMEE Ltd adopt the balance sheet method of 

tax-effect accounting. 

1.6 Cash and Cash Equivalents 

For the purpose of the Cash Flow Statement, cash and cash equivalents include cash on hand and at bank, at-call deposits and 

bank bills with a maturity of 90 days or less. 

1.7 Inventories 

Annual stocktakes of inventories are undertaken at all locations. 

Inventories comprising Finished Goods, Raw Materials, Work in Progress, Fodder and Hay stocks are measured at the lower of 

cost and net realisable value, with adjustments made to take account of obsolescence. 

The Group’s livestock, orchards and picked fruit are measured at their fair value less estimated point-of-sale costs in accordance 

with AASB 141 Agriculture. The fair value of these items is determined based on market prices in the local area. 

Costs are assigned to individual items of inventory on the basis of the first-in, first-out method. 

1.8 Financial Instruments 

AASB 139 Financial Instruments: Recognition and Measurement has four categories of financial instruments including: financial 

assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale financial 

assets. The classification depends on the purpose for which the investments were acquired. The classification of investments is 

determined by management at initial recognition and is re-evaluated at each reporting date. 


99


(i) 

100 

Financial Assets at Fair Value through Profit or Loss 

This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit 

or loss on initial recognition. A financial asset is classified in this category if acquired principally for the purpose of selling 

in the short term or if so designated by management. Derivatives are categorised as held for trading unless they are 

designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are 

expected to be realised within 12 months of the balance sheet date. Realised and unrealised gains and losses are included 

in the Income Statement in the period in which they arise. 

Commercial paper, floating rate notes and corporate securities were designated at the date of transition as financial assets 

at fair value through profit or loss. Realised and unrealised gains and losses arising from changes in the fair value of the 

‘financial assets at fair value through profit or loss’ category are included in the Income Statement in the period in which 

they arise. 

(ii) Loans and Receivables 

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an 

active market. They arise when an entity provides money, goods or services directly to a debtor with no intention of selling 

the receivable. They are included in current assets, except for those with maturities greater than 12 months after the 

balance sheet date which are classified as non-current assets. Loans and receivables are carried at amortised cost using 

the effective interest method. 

(iii) Held-to-Maturity Investments 

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities 

where management has the positive intention and ability to hold to maturity. Held-to-maturity investments are carried at 

amortised cost using the effective interest method. 

(iv) Available-for-Sale Financial Assets 

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either 

designated in this category or not classified in any of the other categories. They are included in non-current assets unless 

management intends to dispose of the investment within 12 months of the balance sheet date. 

Shares, convertible notes, listed income securities were designated at the date of transition as available-for-sale financial 

assets. Unrealised gains and losses arising from changes in the fair value are recognised in equity in the available-for-sale 

investments revaluation reserve. When securities classified as available-for-sale are sold or impaired, the accumulated fair 

value adjustments are included in the Income Statement as gains and losses from investment securities. 

Purchases and sales of investments are recognised on the trade date, the date on which the Group commits to purchase 

or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried 

at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial 

assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. 

1.9 Other Financial Assets 

Investments in other entities are in the main carried at fair value. Where a fair value is not readily available investments are 

carried at the lower of cost or recoverable amount. 

1.10 Property, Plant and Equipment 

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation 

and impairment losses. 

The University has a policy of only recording property, plant and equipment costing $10,000 or more. Items under $10,000 are 

expensed. Some subsidiaries have lower capitalisation thresholds. The overall effect of these is considered to be immaterial in 

accordance with AASB 1031 Materiality. There has been no change to the capitalisation rate from the prior year. 

(i) 

Freehold Land and Buildings 

Freehold Land and Buildings are recorded in the Balance Sheet at fair value being either: 

Independent Valuation 

Land and Buildings shown at fair value are valued by an external valuer on a cyclical basis unless there is a material 

movement between valuations. At the date of revaluation any accumulated depreciation is eliminated against the gross 

carrying amount of the asset. The net value is then restated to the revalued amount of the asset. 

An independent valuation of Land and Buildings belonging to the University, Victorian College of the Arts and Melbourne 

Business School Ltd was carried out as at 31 December 2006 by Cunningham Property Consultants Pty Ltd. 

A Director’s valuation of Land and Buildings belonging to UMEE Ltd was carried out as at 31 December 2006 by the 

directors of the company. 

The current value of Land and Buildings is disclosed in Note 25. The amount of revaluation is disclosed in Note 31. 





Cost 

On initial recognition Land and Buildings are measured at cost. Capital expenditure on refurbishment of buildings which 

adds to their value rather than maintaining their value is recorded in the Balance Sheet at cost. 

(ii) Library Collection 

The University’s general collection which excludes the rare book collection is recorded at cost less any accumulated 

depreciation and, where applicable, any impairment losses. 

(iii) Other Collections 

Other collections include the University’s Rare Book Collection, Archives and the Percy Grainger Collection. Other 

Collections are measured on a fair value basis and are valued on a cyclical basis unless there is a material movement 

between valuations. Collections are valued by management relying on both internal and independent valuations. 

A valuation of Other Collections was carried out as at 31 December 2006. Valuations were undertaken by management 

based on both internal and independent expertise provided by Leonard Joel Australia (Valuers) and Kenneth Hince Old and 

Fine Books. 

(iv) Works of Art 

The University’s Art Collection is measured on a fair value basis and is valued on a cyclical basis unless there is a material 

movement between valuations. Collections are valued by management relying on both internal and independent valuations. 

A valuation of Works of Art held by the University was carried out as at 31 December 2006. Valuations were undertaken 

by management based on both internal and independent expertise provided by Leonard Joel Australia (Valuers), Deutcher- 

Menzies Pty Ltd, Joshua McClelland and Jan Martin. 

An independent valuation of Works of Art held by the Victorian College of the Arts was carried out as at 31 December 2006 

by Leonard Joel Australia (Valuers). 

The amount of revaluation is disclosed in Note 31. 

(v) Items of Cultural Significance 

The University has identified and is in the process of cataloguing items of cultural significance. These items are varied in 

nature. Apart from Other Collections and Works of Art (referred to above) these collections have not been valued as there is 

no ready market or reliable valuation basis for these items. 

(vi) Motor Vehicles 

Recorded in the Balance Sheet at cost less depreciation and, where applicable, any impairment losses. Gains or losses in 

respect of the sale or trade-in of motor vehicles are included in Notes 16 and 25 to the Financial Statements. 

(vii) Furniture and Equipment 

Recorded in the Balance Sheet at cost less depreciation and, where applicable, any impairment losses. Gains or losses in 

respect of disposals are included in Notes 16 and 25 to the Financial Statements. 

(viii) Leasehold Improvements 

Recorded in the Balance Sheet at cost less amortisation and, where applicable, any impairment losses. Improvements 

costing $10,000 or more are capitalised with expenditure less than $10,000 being expensed. 

(ix) Construction in Progress 

Recorded in the Balance Sheet at cost. 

(x) Depreciation 

Depreciation is provided on a straight line basis on all tangible fixed assets other than Freehold Land, Construction in 

Progress, Works of Art and Other Collections, none of which are depreciated. 

Major Depreciation Rates are: 

Buildings 3% 

Motor Vehicles 20% 

Furniture and Equipment 

- Furniture, Fixtures and Fittings 10% 

- Communications Equipment 12 1/2% 

- General Equipment 25% 

- Scientific and Computing Equipment 33 1/3% 

Leasehold Improvements (amortised over the term of the lease) 

Library Collection: 

- Monographs 2 1/2% 

- Periodicals 2% 


101


These rates have been consistently maintained and there has been no change from rates applied in prior years. 

Depreciation rates used by some subsidiaries vary slightly from the rates stated above. 

Acquisitions are depreciated from the date of purchase; disposals are depreciated up to the date of sale or when classified 

as held-for-sale (refer to note 1.14). 

1.11 Intangible Assets 

(i) 

Research 

Expenditure on research activities, undertaken with the prospect of obtaining new scientific or technical knowledge and 

understanding, is recognised in the Income Statement as an expense when it is incurred. 

(ii) Goodwill 

Goodwill on acquisition is initially measured at cost being the excess of the cost of the business combination over the 

acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. 

Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. 

(iii) Software 

Major computer software is recorded in the Balance Sheet at cost less amortisation and where applicable, any impairment 

losses. Only the cost of the software is capitalised, installation costs are expensed in the Income Statement in the year 

they are incurred. Amortisation is provided on a straight line basis at the rate of 33 1/3%. There has been no change in the 

amortisation rate from the prior year. 

1.12 Revaluation of Non Current Assets 

Accounting Standard AASB 116 Property, Plant and Equipment requires reporting entities to measure assets within each class 

of non-current asset on either the cost basis or on a fair value basis. Subsequent to initial recognition, non-current physical 

assets, other than plant, equipment, vehicles, the library collection and intangible assets, are measured at fair value. Plant, 

equipment and vehicles are measured at cost. 

In accordance with the not-for-profit requirements of AASB 116, revaluation increments are credited directly to the asset 

revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of 

asset previously recognised as an expense in the net result, the increment is recognised as revenue in the net result. 

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit 

balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset 

revaluation reserve. 

Revaluation increments and decrements relating to individual assets within a class of property, plant and equipment are offset 

against one another within that class but are not offset in respect of assets in different classes. Revaluation reserves are not 

transferred to retained earnings on derecognition of the relevant asset. 

1.13 Impairment of Assets 

At each reporting date, all assets except for those held at fair value including, inventories, assets arising from employee benefits 

and financial instrument assets are assessed to determine whether there is an indication of impairment. If there is an indication 

of impairment, the assets concerned are tested as to whether their carrying amount exceeds the recoverable amount, the 

difference is written-off by a charge to the Income Statement except to the extent that the write-down can be debited to an 

asset revaluation reserve applicable to that class of asset. 

At each reporting date assets previously determined to be impaired are assessed for circumstances indicating that an 

impairment loss recognised in prior periods no longer exists or may have decreased. If there is an indication that the impairment 

loss has been reversed, the assets concerned are tested as to whether the recoverable amount exceeds the carrying amount, 

the difference not exceeding the original impairment is credited to the Income Statement except for revalued assets which are 

credited to an asset revaluation reserve. 

Impairment testing is performed annually for goodwill. Impairment losses are taken to the Income Statement and cannot 

be reversed. 

Where it is not possible to estimate the recoverable amount of an individual asset, the University estimates the recoverable 

amount of the cash-generating unit to which the asset belongs. 

102 





1.14 Non-Current Assets (or Disposal Groups) Held for Sale and Discontinued Operations 

In the event that the Group identified a non-current asset (or disposal group) to be classified as held for sale, the asset (or 

disposal group) would be stated at the lower of the carrying amount and fair value less costs to sell, if the carrying amount will 

be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only 

when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. 

An impairment loss is recognised for any initial or subsequent write down of the asset (or disposal group) to fair value less 

costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but 

not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of 

the sale of the non-current asset (or disposal group) is recognised at the date of derecognition. 

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified 

as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue 

to be recognised. 

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented 

separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented 

separately from other liabilities in the Balance Sheet. 

In June 2005 the University Council decided that it would cease the delivery of Vocational Education and Training (VET) 

programs. This involves the progressive withdrawal from the delivery of agriculture-related education on the campuses at 

Gilbert Chandler, Longerenong, Glenormiston and McMillan. The closure of these campus operations does not meet the 

definition of a discontinued operation under AASB 5 Non-current Assets Held for Sale and Discontinued Operations as the 

campuses are not considered to be a separate major line of business of the University. Land and Buildings associated with the 

campuses were impaired as it is likely that they will be returned to the State Government free of charge. 

1.15 Employee Benefits 

Provision is made for the liability for employee benefits arising from services rendered by employees at the reporting date. 

Employee benefits which are short term in nature and are expected to be settled within one year have been measured at the 

amounts expected to be paid when the liability is settled, plus related on costs. Employee benefits payable later than one year 

and which are long term in nature have been measured at the present value of the estimated future cash outflows to be made 

for those benefits. 

(i) Recreation Leave 

Liabilities for recreation leave have been determined in accordance with Australian Accounting Standard AASB 119 

Employee Benefits. The liability is broken down into the amount expected to be settled within twelve months of the 

reporting date and that which is expected to be settled after 12 months of the reporting date. 

(ii) Long Service Leave 

Liabilities for long service leave are measured using the projected unit credit method which measures the present value of 

expected future payments to be made in respect of services provided by employees up to the reporting date. The current 

portion of the liability is the amount expected to be settled within 12 months of the reporting date plus the amount over 

which the University does not have a right of deferral. 

(iii) Superannuation 

Employee contributory superannuation funds managed outside of the University exist to provide benefits for the Group’s 

employees and their dependents on retirement, disability or death of the employee. The contributions made to these funds 

are recorded in the Income Statement. Further details are provided in Note 36. 

(iv) Unfunded Superannuation Liabilities 

In accordance with the 1998 instructions issued by the Department of Education, Training and Youth Affairs (DETYA), now 

known as the Department of Education, Science and Training (DEST), the effects of the unfunded superannuation liabilities 

of the University and its subsidiary, the Victorian College of the Arts, were recorded in the Income Statement and the 

Balance Sheet for the first time in 1998. Prior to this date, the practice had been to disclose the liabilities by way of a note 

to the financial statements. 

The unfunded liabilities recorded in the Balance Sheet under Provisions have been determined by the actuary of the 

Victorian Government Superannuation Office and relate to employees who transferred to the University from the 

former Melbourne College of Advanced Education (merged with the University on 1 January 1989) Hawthorn Institute 

of Education Ltd (merged with the University on 1 January 1997), the Victorian College of Agriculture and Horticulture 

Ltd (merged with the University on 1 July 1997) and the Victorian College of the Arts, who are members of the State 

Superannuation Scheme. 


103


An arrangement exists between the Australian Government and the State Government to meet the unfunded liability 

for the University’s beneficiaries of the State Superannuation Schemes on an emerging cost basis. This arrangement 

is evidenced by the State Grants (General Revenue) Amendment Act 1987, Higher Education Funding Act 1988 and 

subsequent amending legislation. Accordingly the unfunded liabilities have been recognised in the Balance Sheet under 

Provisions, with a corresponding asset recognised under Receivables. The recognition of both the asset and the liability 

consequently does not affect the year end net asset position of the University and its subsidiaries. 

1.16 Goods and Services Tax (GST) 

Income, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of 

GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of 

the acquisition of the asset or as part of the expense. 

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, 

the Australian Taxation Office (ATO) is included as a current asset or liability in the Balance Sheet. 

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities 

which are recoverable from, or payable to the ATO, are presented as operating cash flows. 

1.17 Leases 

(i) Operating Leases as Lessee 

The University leases certain land and buildings. Leases where the lessor retains substantially all the risks and benefits of 

ownership of the asset are classified as operating leases. Payments made under operating leases are charged to the Income 

Statement on a straight-line basis over the period of the lease. 

(ii) Operating Leases as Lessor 

Lease income from operating leases is recognised in the Income Statement on a straight-line basis over the lease term. 

(iii) Finance Leases 

Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified 

as finance leases. The assets acquired by way of a finance lease are stated at an amount equal to the lower of their fair value 

and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment 

losses. 

Interest charged on finance leases is charged to the Income Statement on a straight-line basis over the lease term. 

1.18 Comparatives 

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the 

current financial year. Such changes are disclosed in accordance with AASB 101 Presentation of Financial Statements. 

1.19 Rounding 

All amounts shown in the financial statements are expressed by reference to the nearest thousand dollars unless 

otherwise specified. 

1.20 Changes in Accounting Policy 

In 2006, the University changed its accounting policy in relation to the allocation and classification of employee benefits. 

Previously, the amount expected to be settled as long service leave in the following year was disclosed as a current liability and 

recorded at nominal value. The remaining balance of the provision (i.e. the portion not expected to be paid in the following year) 

was disclosed as non-current liability and recorded at present value. 

Under the new policy, as described in Note 1.15, the current portion of the liability now includes all amounts to which the 

University’s employees are presently entitled. 

The change in policy was applied retrospectively to the year ended 31 December 2005 in accordance with AASB 108 

Accounting Policies, Changes in Accounting Estimates and Errors. The change was deemed not to materially affect the overall 

balance of the provision for the year and is therefore only a reclassification of existing balances. The impact of the change 

resulted in an increase to consolidated current liabilities at 31 December 2005 of $52.447 million (University $52.423 million) 

There were no other changes to accounting policies during the year ended 31 December 2006. 

104 




Note 2 Australian Government 


Including HECS-HELP And Other Australian Government Loan Programmes 

(a) Commonwealth Grants Scheme and Other Grants 49.1 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Commonwealth Grants Scheme # 158,555 149,753 158,555 149,753 

Indigenous Support Fund 905 728 905 728 

Equity Programmes + 494 524 494 524 

Workplace Reform Programme 2,082 2,044 2,082 2,044 

Workplace Productivity Programme 1,500 - 1,500 - 

Learning and Teaching Performance Fund 9,853 - 9,853 - 

Capital Development Pool 583 - 583 - 

Superannuation Programme 7,029 7,107 7,029 7,107 

Collaboration & Structural Reform Programme 208 - 208 - 

Total Commonwealth Grants Scheme and Other Grants 181,209 160,156 181,209 160,156 

(b) Higher Education Loan Programmes 49.2 

HECS-HELP 75,655 70,445 75,655 70,445 

FEE-HELP * 28,171 24,120 27,076 23,285 

Total Higher Education Loan Programmes 103,826 94,565 102,731 93,730 

(c) Scholarships 49.3 

Australian Postgraduate Awards 10,560 10,827 10,560 10,827 

International Postgraduate Research Scholarship 2,388 2,275 2,388 2,275 

Commonwealth Education Costs Scholarships 786 474 786 474 

Commonwealth Accommodation Scholarships 1,365 952 1,365 952 

Total Scholarships 15,099 14,528 15,099 14,528 

(d) DEST - Research 49.4 

Institutional Grants Scheme 33,985 32,772 33,985 32,772 

Research Training Scheme 59,907 56,851 59,907 56,851 

Systemic Infrastructure Initiative 2,016 2,355 2,016 2,355 

Research Infrastructure Block Grants 26,052 25,038 26,052 25,038 

Total DEST - Research Grants 121,960 117,016 121,960 117,016 

# Includes the basic Commonwealth Grants Scheme (CGS), CGS-Regional Loading and CGS-Enabling Loading. 

+ Includes amounts for Higher Education Equity Support Programme and Students with Disabilities Programme. 

* For 2005, FEE-HELP would include the Postgraduate Education Loans Scheme (PELS) and the Bridging for Overseas Trained 

Professionals Loan Scheme (BOTPLS). 


105


Note 2 Australian Government 


Including HECS-HELP And Other Australian Government Loan Programmes 

(continued) 

(e) Australian Research Council 49.5 

(e)(i) Discovery 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

49.5(a) 

Project 30,483 23,983 30,483 23,983 

Fellowships 2,934 2,484 2,934 2,484 

Indigenous Researchers Development 170 108 170 108 

Total Discovery 33,587 26,575 33,587 26,575 

(e)(ii) Linkages 

49.5(b) 

Special Research Initiatives 447 - 447 - 

Infrastructure 1,765 1,504 1,765 1,504 

International 154 197 154 197 

Projects 5,025 6,325 5,025 6,325 

Total Linkages 7,391 8,026 7,391 8,026 

(e)(iii) Networks and Centres 

49.5(c) 

Research Networks 1,329 1,164 1,329 1,164 

Centres 6,882 4,139 6,882 4,139 

Total Networks and Centres 8,211 5,303 8,211 5,303 

(f) Other Australian Government Financial Assistance 

Department of Agriculture, Fishery and Forestry 1,404 460 1,404 460 

Co-operative Research Centres 8,324 4,730 8,324 4,730 

National Health & Medical Research Council 61,372 52,363 61,372 52,363 

Other Commonwealth Research 28,067 23,440 28,067 23,440 

Other Funding 21,663 40,755 18,589 35,999 

Total Other Australian Government Financial Assistance 120,830 121,748 117,756 116,992 

Total Australian Government Financial Assistance 592,113 547,917 587,944 542,326 

Reconciliation 

Australian Government Grants [a + c + d + e + f] 488,287 453,352 485,213 448,596 

HECS-HELP - Australian Government Payments 75,655 70,445 75,655 70,445 

Other Australian Government Loan Programmes 

[FEE-HELP] 28,171 24,120 27,076 23,285 

Total Australian Government Financial Assistance 592,113 547,917 587,944 542,326 

106 




Note 3 State Government 


CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Recurrent Funding 2,930 9,101 2,891 9,084 

Research Funding 17,510 8,400 17,510 8,400 

Microbiological Diagnostic Unit 4,389 4,734 4,389 4,734 

Support to the Arts (Arts Victoria) 411 439 411 429 

Assets Received Free of Charge - 9,336 - 9,336 

MTC Theatre Development Funding 18,000 - 18,000 - 

Miscellaneous Purposes 4,858 7,021 4,524 6,881 

Total State and Local Government Financial Assistance 48,098 39,031 47,725 38,864 

Note 4 Fees and Charges 

Course Fees and Charges 

Fee-Paying Overseas Students 203,857 185,003 191,638 168,099 

Continuing Education 8,275 8,639 2,188 1,996 

Fee-Paying Domestic Postgraduate Students * 24,675 23,430 11,835 10,436 

Fee-Paying Domestic Undergraduate Students * 19,218 21,478 19,218 21,478 

Course Charges - External (Local Students) 24,971 23,904 1,459 1,853 

Sundry Fees 3,681 1,542 3,603 1,441 

Total Course Fees and Charges 284,677 263,996 229,941 205,303 

TAFE Tuition 303 1,370 303 1,370 

Other Non-Course Fees and Charges 

Amenities and Service Fees 12,212 12,094 12,212 12,094 

Examination Fees 1,949 2,115 95 109 

Library Fees 366 356 366 356 

Excursions 1,001 1,141 1,001 1,141 

Rent/Use of Facilities Charges 7,840 6,976 3,408 2,692 

Student Accommodation Charges 5,890 6,339 5,890 6,339 

Parking Fees 3,441 3,254 3,440 3,237 

Seminar, Conference and Course Fees 4,304 4,212 4,026 3,946 

Copying Charges 81 192 61 179 

Testing and Servicing 11,031 8,701 11,031 8,701 

Hire of Apparatus and Laboratory Fees 52 63 - - 

Fines 51 48 51 39 

Membership Fees 3,027 2,572 201 193 

Other Fees and Charges for Services Provided 27,143 28,689 23,387 24,215 

Total Other Non-Course Fees and Charges 78,388 76,752 65,169 63,241 

Total Fees and Charges 363,368 342,118 295,413 269,914 

* Domestic Course Fees and charges are net of FEE-HELP payments as disclosed in 

Note 2 (b) of the Financial Statements 


107


Note 5 Investment Income 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Interest Received and Receivable 17,884 18,026 14,632 14,256 

Dividends 97,296 72,993 94,025 68,427 

Realised Gains (Losses)* (2,098) 7,499 (5,296) (851) 

Other 943 193 943 214 

Total Investment Income 114,025 98,711 104,304 82,046 

*Losses for 2006 resulted from trading activities and included the University’s participation in Share Buyback schemes. 

These are offset by gains in dividends and imputation credits. 

Note 6 Royalties, Trademarks and Licences 

Copyright and Royalty 5,066 3,015 5,054 3,015 

Total Royalties, Trademarks and Licences 5,066 3,015 5,054 3,015 

Note 7 Consultancy and Contract Research 

Consultancy 6,996 7,149 6,648 6,794 

Contract Research 17,392 17,551 17,392 17,551 

Total Consultancy and Contract Research 24,388 24,700 24,040 24,345 

Note 8 Other Income 

Donations and Bequests 23,722 21,815 22,643 21,119 

Publishing and Book Sales 15,196 14,802 12,319 11,920 

Box Office Receipts 9,744 9,623 9,609 9,493 

Computer Sales 7,285 8,026 2,640 3,991 

Subscriptions to University Societies 1,254 1,153 1,203 1,104 

Sale of Produce and Livestock 2,127 2,314 2,127 2,286 

Net Gain on Disposal of Property, Plant and Equipment 16 - - - 280 

Research/Project Income other than the Australian Government 5,311 4,257 - - 

Non-Government Grants 50,177 49,307 47,777 46,960 

Scholarships and Prizes 100 100 100 100 

Miscellaneous Income 753 7,705 3,607 5,938 

Total Other Income 115,669 119,102 102,025 103,191 

108 




Note 9 Employee Benefits and 

On Costs 

Academic 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Salaries 272,757 262,421 260,035 248,154 

Contributions to Superannuation and Pension 

Schemes: 

Emerging Cost 7,894 7,877 7,120 7,038 

Funded 36,337 34,513 34,878 33,413 

Payroll Tax 16,280 16,056 15,587 15,339 

Worker’s Compensation 1,534 1,458 1,481 1,411 

Long Service Leave Expense 2,759 1,243 2,649 1,040 

Annual Leave 2,138 848 2,044 784 

Other 4,754 2,722 4,716 2,722 

Total Academic 344,453 327,138 328,510 309,901 

Non-Academic 

Salaries 235,402 218,239 197,154 176,462 

Contributions to Superannuation and Pension 

Schemes: 

Emerging Cost 231 242 - - 

Funded 30,970 26,151 27,378 23,580 

Provisions for Future Emerging Costs - 51 - 51 

Payroll Tax 13,062 11,414 11,494 9,906 

Worker’s Compensation 1,220 1,027 1,091 916 

Long Service Leave Expense 2,569 1,019 2,061 806 

Annual Leave 1,689 406 1,427 195 

Other 5,320 7,920 4,948 7,536 

Total Non-Academic 290,463 266,469 245,553 219,452 

Total Employee Benefits and On Costs 634,916 593,607 574,063 529,353 


109


Note 10 Depreciation and Amortisation 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Depreciation and Amortisation by Class of Assets 

Depreciation 

Buildings 43,045 41,813 40,278 39,114 

Buildings - Fixtures and Fittings 15 95 15 95 

Leasehold Improvements 503 453 218 2 

Scientific and Computing Equipment 14,658 15,055 13,670 14,016 

Works of Art 2 3 - - 

General Equipment 5,166 5,720 4,232 4,487 

Communications Equipment 200 239 196 236 

Furniture 519 476 106 101 

Motor Vehicles 1,494 1,569 1,446 1,488 

Library Collection 8,808 7,775 8,466 7,487 

Assets Under Finance Lease 692 697 - - 

Total Depreciation 75,102 73,895 68,627 67,026 

Amortisation 

Software 260 2,064 1 1,572 

Total Amortisation 260 2,064 1 1,572 

Total Depreciation and Amortisation 75,362 75,959 68,628 68,598 

Note 11 Repairs and Maintenance 

Buildings 33,941 33,047 32,077 30,781 

Plant and Equipment 10,292 5,466 9,360 4,541 

Total Repairs and Maintenance 44,233 38,513 41,437 35,322 

Note 12 Finance Costs 

Interest Expense 10,767 10,727 10,767 10,610 

Finance Charges Payable under Finance Leases 120 - - - 

Total Finance Costs Expensed 10,887 10,727 10,767 10,610 

Note 13 Bad and Doubtful Debts 

Bad Debts Written Off 681 1,300 506 1,264 

Increase/(Decrease) in Provision for Doubtful Debts (135) (687) 11 (842) 

Total Bad and Doubtful Debts 546 613 517 422 

110 




Note 14 Accounting and Auditing Services 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Auditing and Review of Financial Reports - 

Victorian Auditor-General 270 247 190 170 

Other Auditors 427 418 192 185 

Accounting Services 58 859 8 43 

Total Accounting and Auditing Services 755 1,524 390 398 

Note 15 Other Expenses 

Scholarships 50,768 47,899 49,511 45,963 

Equipment Purchases (items not capitalised) 14,440 15,102 13,982 14,826 

Consumable Materials 38,059 36,949 36,840 33,962 

Travel, Staff Development and Training 37,598 31,948 33,789 28,886 

Library Materials 7,257 3,435 6,914 3,082 

Grants 77,563 55,055 93,674 71,449 

Rent and Leasing Payments 11,477 14,856 8,765 8,440 

Utilities and Services 29,301 28,684 26,378 25,916 

Contracted and Professional Services 59,458 56,305 62,873 60,288 

Printing, Publications and Stationary 13,050 13,337 9,273 8,512 

Insurance 5,326 4,868 5,032 4,777 

Net Loss on Disposal of Property, Plant and 

Equipment 16 1,691 47 1,718 - 

Other Expenses 63,264 57,998 48,822 41,807 

Program and Course Development, Preparation and 

Delivery Services 11,969 13,308 - - 

Course Fees Paid 5,103 3,973 5,103 3,973 

Impairment Losses * 4,970 17,617 7,970 15,339 

Total Other Expenses 431,294 401,381 410,644 367,220 

* Impairment losses for the year ended 31 December 2006 mainly comprise of a $3.0 million (2005 $15.3 million) impairment 

of the University’s investment in U21 Global. 

Note 16 Sale of Assets 

Proceeds from Sale of Assets 

Property, Plant and Equipment 23,343 2,166 22,412 1,973 

Total Proceeds from Sale of Assets 23,343 2,166 22,412 1,973 

Carrying Amount of Assets Sold/Scrapped 

Property, Plant and Equipment 25,034 2,213 24,130 1,693 

Total Carrying Amount of Assets Sold/Scrapped 25,034 2,213 24,130 1,693 

Net Gain/(Loss) on Sale of Assets (1,691) (47) (1,718) 280 


111


Note 17 Income Tax Expense/(Benefit) 

The prima facie tax on the operating result from 

continuing operations is reconciled to the income tax 

provided in the Financial Statements as follows: 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Prima facie Tax Payable on Operating 

Profit/(Loss) of Tax Paying Subsidiaries before 

Income Tax: (55) (3,216) - - 

Income Tax effect of - 

Non-Deductible Expenditure 56 3,198 - - 

Other (2) 1 - - 

Income Tax Expense/(Benefit) (1) (17) - - 

Note 18 Receivables 

RECEIVABLES (CURRENT) 

Trade Receivables 40,105 40,170 35,211 34,086 

Sundry Debtors 24,642 22,141 19,253 15,625 

Less: Provision for Doubtful Receivables (540) (600) (398) (387) 

64,207 61,711 54,066 49,324 

Student Loans 1,735 1,934 1,735 1,914 

Less: Provision for Doubtful Receivables (50) (50) (50) (50) 

1,685 1,884 1,685 1,864 

Deferred Government Contributions for 

Superannuation 7,855 7,342 6,922 6,387 

Other 1,442 1,309 665 665 

Less: Provision for Doubtful Receivables - (73) - - 

Total Current Receivables 75,189 72,173 63,338 58,240 

RECEIVABLES (NON-CURRENT) 

Student Loans 1 5 - - 

Deferred Government Contributions for 

Superannuation 97,601 103,547 83,801 89,003 

State Government of Victoria (MTC Development) 51,000 - 51,000 - 

Other 2,282 2,521 2,282 3,770 

Less: Provision for Doubtful Receivables (2,258) (2,258) (2,258) (2,258) 

Total Non-Current Receivables 148,626 103,815 134,825 90,515 

(a) Government Contributions to Superannuation 

The University recognises a receivable for the amount expected to be received from the Australian Government in respect 

of unfunded superannuation schemes operated by the State Government. The total consolidated amount owing in respect of 

these schemes at 30 June 2006 is recorded at $105.456 million (2005 $110.889 million). Refer Notes 1.15(iv), 29 and 36. 

(b) Melbourne Theatre Company Development 

The University has entered into an agreement with the State Government of Victoria for the development of a 500 seat theatre 

for the Melbourne Theatre Company. The $51.0 million receivable represents the total value of the theatre to be received by the 

University on completion. 

(c) Effective Interest Rates and Credit Risk 

Information concerning the effective interest rate and credit risk of both current and non-current receivables is set out in Note 32 

Financial Instruments. 

112 




Note 19 Inventories 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Finished Goods 5,260 4,682 3,855 3,584 

Raw Materials 180 186 180 186 

Work in Progress 177 129 - - 

Livestock and Other 1,466 1,461 1,466 1,460 

Total Inventories 7,083 6,458 5,501 5,230 

Note 20 Other Financial Assets at Fair Value 

Current 

Bank and Term Deposits 17,444 17,238 2 - 

Commercial Paper 27,343 41,590 27,343 41,590 

Debentures 35,866 11,041 35,866 11,041 

Unit Trusts 21,247 - 21,247 - 

Total Other Financial Assets at Fair Value 101,900 69,869 84,458 52,631 

Note 21 Non-Current Investments 

AVAILABLE-FOR-SALE FINANCIAL ASSETS 

Non-Current 

Shares, Equities and Convertible Notes 1,060,822 902,666 1,008,046 854,762 

Listed Income Securities/Unit Trusts 186,206 159,400 178,133 149,507 

International and Domestic Bonds 19,381 - - - 

Corporate Securities - 65 - - 

Mortgage Loans 90 90 90 90 

Units in Pool* - - (162) (144) 

Total Available-for-Sale Financial Assets 1,266,499 1,062,221 1,186,107 1,004,215 

*Represents the ownership of Units in the Investment 

Pool held by Subsidiaries 

HELD-TO-MATURITY INVESTMENTS 

Non-Current 

International Bonds - 6,138 - - 

Domestic Bonds - 14,082 - - 

Total Held-to-Maturity Investments - 20,220 - - 


113


Note 22 Assets Classified as Held for Sale 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Assets 

Total Current Assets - 2,068 - - 

Total Non-Current Assets - 1,432 - - 

Total Assets Classified as Held for Sale - 3,500 - - 

Liabilities 

Total Current Liabilities - 1,277 - - 

Total Liabilities Attributable to Assets Classified as 

Held for Sale - 1,277 - - 

Pursuant to the decision in June 2005 for Melbourne University Private Ltd (now known as UMEE Ltd) to cease operating 

as a University, certain activities of the company were identified as held for sale. These activities were not specifically 

identified in the financial report as the Directors of UMEE Ltd believed that to do so would compromise the sale process. 

Note 23 Other Financial Assets at Fair Value 

Non-Current 

Investment in Subsidiary Companies - - 25,348 22,348 

Other Investments 27,170 22,200 27,170 22,200 

Provision for Accumulated Impairment (23,045) (18,075) (28,844) (20,874) 

Other 20 20 - - 

Total Other Financial Assets 4,145 4,145 23,674 23,674 

Note 24 Other Non-financial Assets (Current) 

Prepaid Expense 6,967 10,397 6,504 9,976 

Accrued Income/Other 2,419 2,334 1,116 1,227 

Total Other Non-Financial Assets 9,386 12,731 7,620 11,203 

114 




Note 25 Property, Plant and Equipment 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

Freehold Land 

At Cost - 11,567 - 1,167 

At Fair Value 545,723 496,740 452,158 421,455 

545,723 508,307 452,158 422,622 

Buildings 

At Cost - 156,463 - 150,745 

At Fair Value 1,459,094 1,249,115 1,369,026 1,167,100 

Provision for and Depreciation and Impairment 

of Buildings 

1,459,094 1,405,578 1,369,026 1,317,845 

At Cost - (5,348) - (5,187) 

At Fair Value - (72,736) - (69,956) 

- (78,084) - (75,143) 

Total Buildings at Written-Down Value 1,459,094 1,327,494 1,369,026 1,242,702 

Library Collection 

At Cost 358,083 347,459 353,661 343,427 

Provision for Depreciation (108,521) (99,695) (105,466) (97,000) 

249,562 247,764 248,195 246,427 

Other Collections 

At Fair Value 58,830 52,605 58,830 52,605 

58,830 52,605 58,830 52,605 

Works of Art 

At Fair Value 56,027 45,485 53,266 43,618 

At Cost 36 36 - - 

Provision for Depreciation (29) (28) - - 

56,034 45,493 53,266 43,618 

Motor Vehicles 

At Cost 9,553 9,741 9,081 9,307 


4,526 5,016 4,406 4,887 

Furniture, Fixtures & Fittings 

At Cost 5,759 4,475 1,233 1,200 

Provision for Depreciation (3,724) (2,060) (634) (528) 

2,035 2,415 599 672 


115


Note 25 Property, Plant and Equipment 

(Continued) 

Scientific and Computing Equipment 

CONSOLIDATED 

UNIVERSITY 


NOTES $’000 $’000 $’000 $’000 

At Cost 165,864 147,612 158,185 141,566 


Communications Equipment 

29,224 25,033 28,053 23,224 

At Cost 5,919 5,853 5,600 5,553 


General Equipment 

542 580 516 567 

At Cost 64,009 58,050 49,730 45,902 


Leasehold Improvements 

11,398 11,296 9,027 8,605 

At Cost 21,461 3,427 19,161 904 

Provision for Amortisation (2,202) (1,855) (1,433) (809) 

Assets Under Finance Lease 

19,259 1,572 17,729 95 

At Cost 3,901 3,202 - - 

Provision for Depreciation (2,172) (1,729) - - 

Construction in Progress 

1,729 1,473 - - 

At Cost 27,649 26,306 26,656 26,306 

Total Property, Plant & Equipment 

At Cost 662,235 774,194 623,308 726,078 

At Fair Value 2,119,674 1,843,944 1,933,280 1,684,778 

2,781,909 2,618,138 2,556,588 2,410,856 

Provision for Depreciation, Amortisation 

and Impairment 

At Cost (316,303) (290,047) (288,127) (268,570) 

At Valuation - (72,736) - (69,957) 

(316,303) (362,783) (288,128) (338,527) 

Total Written-Down Value 2,465,606 2,255,355 2,268,460 2,072,329 

116 




Note 25 Property, Plant and Equipment (Continued) 

Movement in Carrying Amounts 

Movement in the carrying amount for each class of Property, Plant and Equipment between the beginning and end of the 

reporting period 

(A) CONSOLIDATED - 2006 Freehold Land Buildings Library 

Collection 

Other 

Collections 

Works of 

Art 

$’000 $’000 $’000 $’000 $’000 

Balance at Beginning of Year 508,307 1,327,494 247,764 52,605 45,493 

Reclassification - (579) - - - 

Additions 12,575 7,917 10,606 - 233 

Disposals (21,000) (1,994) - - - 

Revaluation Increments/(Decrements) 45,889 145,712 - 6,225 10,310 

Depreciation Expense - (43,060) (8,808) - (2) 

Assets Classified as Held for Sale - - - - - 

Impairment Losses (48) 6,136 - - - 

Transfer from Construction in Progress - 17,468 - - - 

Write-Ups/Transfers/(Write-Offs) - - - - - 

Carrying Amount at End of 

Reporting Period 545,723 1,459,094 249,562 58,830 56,034 

Motor Vehicles Furniture, 

Fixtures & 

Equipment 

Scientific & 

Equipment 

Communication 

Equipment 

General 

Fittings Computing 

$’000 $’000 $’000 $’000 $’000 

Balance at Beginning of Year 5,016 2,415 25,033 580 11,296 

Reclassification 21 26 (88) 75 22 

Additions 2,076 250 19,490 87 5,395 

Disposals (1,093) (137) (548) - (71) 

Revaluation Increments/(Decrements) - - - - - 

Depreciation Expense (1,494) (519) (14,658) (200) (5,166) 


Impairment Losses - - - - - 

Transfer from Construction in Progress - - - - (78) 

Write-Ups/Transfers/(Write-Offs) - - (6) - - 


Reporting Period 4,526 2,035 29,224 542 11,398 

Leasehold 

Improvements 

Assets Under 

Finance 

Lease 

Construction 

In Progress 

Total 2006 

$’000 $’000 $’000 $’000 

Balance at Beginning of Year 1,572 1,473 26,306 2,255,355 

Reclassification 523 - - - 

Additions 1,748 1,139 34,652 96,169 

Disposals - (191) - (25,034) 

Revaluation Increments/(Decrements) - - - 208,136 

Depreciation Expense (503) (692) - (75,102) 

Assets Classified as Held for Sale - - - - 

Impairment Losses - - - 6,088 

Transfer from Construction in Progress 15,919 - (33,309) - 

Write-Ups/Transfers/(Write-Offs) - - - (6) 


Reporting Period 19,259 1,729 27,649 2,465,606 


117



(B) UNIVERSITY - 2006 Freehold Land Buildings Library 

Collection 

Other 

Collections 


Art 

$’000 $’000 $’000 $’000 $’000 


Reclassification - (579) - - - 

Additions 12,574 6,216 10,234 - 45 

Disposals (21,000) (1,994) - - - 

Revaluation Increments/(Decrements) 38,010 139,370 - 6,225 9,603 

Depreciation Expense - (40,293) (8,466) - - 


Impairment Losses (48) 6,136 - - - 






Furniture, 

Fixtures & 

Fittings 

Equipment 

Scientific & 

Computing 

Equipment 

Communication 

Equipment 

General 

$’000 $’000 $’000 $’000 $’000 

Balance at Beginning of Year 4,887 672 23,224 567 8,605 

Reclassification - - (18) 59 32 

Additions 2,039 33 18,534 86 4,751 

Disposals (1,074) - (11) - (51) 





Transfer from Construction in Progress - - - - (78) 

Write-Ups/Transfers/(Write-Offs) - - (6) - - 


Reporting Period 4,406 599 28,053 516 9,027 

Leasehold 

Improvements 

Assets 

Under 

Finance 

Lease 

Construction 

In Progress 

Total 2006 

$’000 $’000 $’000 $’000 

Balance at Beginning of Year 95 - 26,306 2,072,329 

Reclassification 506 - . - 

Additions 1,427 - 33,659 89,598 

Disposals - - - (24,130) 


Depreciation Expense (218) - - (68,627) 


Impairment Losses - - - 6,088 

Transfer from Construction in Progress 15,919 - (33,309) - 

Write-Ups/Transfers/(Write-Offs) - - - (6) 


Reporting Period 17,729 - 26,656 2,268,460 

118 





Movement in Carrying Amounts 

Movement in the carrying amount for each class of Property, Plant and Equipment between the beginning and end of the 

reporting period 

(C) CONSOLIDATED - 2005 Freehold Land Buildings Library 

Collection 

Other 

Collections 


Art 

$’000 $’000 $’000 $’000 $’000 


Reclassification - 31 (28) - 2 

Additions - 23,962 12,152 - - 

Disposals (212) (170) - - - 

Revaluation Increments/(Decrements) 3,030 3,895 - - - 

Depreciation Expense - (41,908) (7,775) - (3) 


Impairment Losses (2,442) (20,184) - - - 


Write-Ups/Transfers/(Write-Offs) - (12) - - - 




Furniture, 

Fixtures & 

Fittings 

Equipment 

Scientific & 

Computing 

Equipment 

Communication 

Equipment 

General 

$’000 $’000 $’000 $’000 $’000 

Balance at Beginning of Year 5,325 2,907 22,467 785 12,886 

Reclassification - (375) (201) 15 (75) 

Additions 2,425 539 17,993 19 2,565 

Disposals (1,165) (19) (105) - (123) 



Assets Classified as Held for Sale - (83) - - - 


Transfer from Construction in Progress - - - - 1,770 

Write-Ups/Transfers/(Write-Offs) - (78) (66) - (7) 


Reporting Period 5,016 2,415 25,033 580 11,296 


119


(C) CONSOLIDATED - 2005 

(Continued) 

Leasehold 

Improvements 

Assets 

Under 

Finance 

Lease 

Construction 

In Progress 

Total 2005 

$’000 $’000 $’000 $’000 

Balance at Beginning of Year 1,404 2,170 22,407 2,254,522 

Reclassification (24) - - (655) * 

Additions 810 - 32,823 93,289 

Disposals (94) - - (1,888) 


Depreciation Expense (454) (697) - (73,895) 

Assets Classified as Held for Sale (30) - - (114) ** 

Impairment Losses - - - (22,626) *** 

Transfer from Construction in Progress - - (28,924) - 

Write-Ups/Transfers/(Write-Offs) (39) - - (203) 


Reporting Period 1,572 1,473 26,306 2,255,355 

* Largely represents the reclassification of Computing Equipment to Software Intangible Assets. Refer to Note 26. 

** Represents the reclassification of Property, Plant and Equipment held by UMEE Ltd to Assets held for sale. 

Refer to Note 22. 

*** Relates to the Impairment of Land and Buildings associated with the decision to cease the delivery of Vocational Education 

and Training (VET) programs at the University’s rural campuses. Refer to note 1.14. 

120 





(D) UNIVERSITY - 2005 Freehold Land Buildings Library 

Collection 

Other 

Collections 



Art 

$’000 $’000 $’000 $’000 $’000 


Reclassification - - (44) - - 

Additions - 22,229 11,840 - - 

Disposals (211) (99) - - - 


Depreciation Expense - (39,209) (7,487) - - 


Impairment Losses (2,442) (20,184) - - - 






Furniture, 

Fixtures & 

Fittings 

Equipment 

Scientific & 

Computing 

Equipment 

Communication 

Equipment 

General 

$’000 $’000 $’000 $’000 $’000 

Balance at Beginning of Year 5,116 629 20,265 785 9,074 

Reclassification - - (7) - 51 

Additions 2,349 144 17,054 18 2,294 

Disposals (1,090) - (73) - (97) 





Transfer from Construction in Progress - - - - 1,770 



Reporting Period 4,887 672 23,224 567 8,605 

Leasehold 

Improvements 

Assets 

Under 

Finance 

Lease 

Construction 

In Progress 

Total 2005 

$’000 $’000 $’000 $’000 

Balance at Beginning of Year 98 - 22,409 2,074,802 

Reclassification - - - - 

Additions - - 32,823 88,750 

Disposals - - - (1,570) 

Revaluation Increments/(Decrements) - - - - 

Depreciation Expense (3) - - (67,027) 


Impairment Losses - - - (22,626) 

Transfer from Construction in Progress - - (28,924) - 

Write-Ups/Transfers/(Write-Offs) - - - - 


Reporting Period 95 - 26,306 2,072,329 

121


Note 26 Intangible Assets 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Software 6,859 6,569 4,907 4,715 

Provision for Amortisation (6,384) (5,982) (4,857) (4,715) 

Total Intangible Assets 475 587 50 - 

Note 27 Payables 

Current: 

Trade Creditors 36,715 30,178 33,514 26,111 

Sundry Creditors and Accrued Expenses 32,405 38,002 26,376 30,117 

Total Current Payables 69,120 68,180 59,890 56,228 

Non-Current: 

Sundry Creditors 12,000 - 12,000 - 

Total Non-Current Payables 12,000 - 12,000 - 

Total Payables 81,120 68,180 71,890 56,228 

Note 28 Interest Bearing Liabilities 

Current: 

Secured Bank Borrowings 2,448 2,354 2,448 2,354 

Finance Lease Liabilities 869 513 - - 

Total Current Interest Bearing Liabilities 3,317 2,867 2,448 2,354 

Non-Current: 

Secured Bank Borrowings 137,365 139,813 137,365 139,813 

Finance Lease Liabilities 1,431 1,314 - - 

Total Non-Current Interest Bearing Liabilities 138,796 141,127 137,365 139,813 

Total Interest Bearing Liabilities 142,113 143,994 139,813 142,167 

The Bank Borrowings are for the construction of a major educational facility at University Square comprising three academic 

buildings with a small retail component which was substantially completed in 2001. The loan is secured by registered first 

mortgage over certain freehold property and a registered equitable mortgage of securities held by the University. 

The total loan facility was initially for $150,000,000 with repayments extending until 2029. 

The University has also established a standby bill facility of $10 million with the National Australia Bank. This is to provide 

short term cash should the need arise. As at 31 December 2006, this facility was not utilised. 

122 




Note 29 Provisions 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Current: 

Current provisions expected to be settled within 12 months 

Employee Benefits - 

Annual Leave 34,842 31,405 31,044 27,867 

Long Service Leave 10,151 9,884 9,143 8,605 

Deferred Government Benefits for Superannuation 7,855 7,342 6,922 6,387 

WorkCover Claims 1,273 1,261 1,273 1,261 

Taxation 30 - - - 

Other 1,041 2,676 68 65 

Current provision expected to be settled after more than 12 months 


55,192 52,568 48,450 44,185 

Annual Leave 12,513 12,065 12,513 12,041 


56,395 52,447 55,205 52,423 

Total Current Provisions 111,587 105,015 103,655 96,608 

Non-Current: 



Deferred Government Benefits for Superannuation 97,601 103,547 83,801 89,003 

WorkCover Claims 3,789 3,781 3,789 3,781 

Total Non-Current Provisions 122,720 127,677 107,422 110,672 

Total Provisions 234,307 232,692 211,077 207,280 

Employee Benefits 

Provision for Employee Benefits - Current 109,243 101,078 102,314 95,282 

Provision for Employee Benefits - Non-Current 118,931 123,896 103,633 106,891 

Aggregate Employee Benefits 228,174 224,974 205,947 202,173 

Employee Numbers 

Full-time Equivalent Academic and Non-Academic Staff 6,528 6,452 5,822 5,710 

State Superannuation Fund 

AASB 119 Employee Benefits requires that the estimated present value of superannuation obligations recognised in the 

financial statements be determined as at balance date. These financial statements recognise estimated superannuation 

obligations in respect of the State Superannuation Fund using an actuarial estimate as at 30 June 2006. As there is no 

net impact on the Balance Sheet or Income Statement from these superannuation obligations (due to recognition of a 

corresponding receivable), the costs of providing an actuarial assessment at balance date (31 December 2006) outweigh the 

benefits. The University has therefore elected not to obtain an estimate of its superannuation obligations as at balance date. 

Consequently superannuation obligations (and the corresponding receivable) are stated in the financial statements based on 

estimates prepared six months in arrears. 


123


Note 30 Other Current Liabilities 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Income in Advance 

Australian Government Financial Assistance: 

National Youth Mental Health Foundation 13,993 - 13,993 - 

Other Australian Government Financial Assistance 9,174 7,336 9,106 7,061 

Research Project Income 40,261 36,729 40,261 36,386 

Student Fees 26,130 19,915 17,490 13,274 

Other 11,654 7,969 9,235 6,970 

101,212 71,949 90,085 63,691 

Deposits and Funds Lodged 294 242 198 242 

Total Other Current Liabilities 101,506 72,191 90,283 63,933 

124 




Note 31 Reserves and Retained Surplus 

Note 31(a) 

Reserves Reserves at End of Year Comprise 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Trust Fund Reserve 253,144 237,465 253,144 237,465 

General Reserve 39,556 39,411 39,316 39,312 

Land Asset Revaluation Reserve 487,893 442,052 394,341 356,379 

Building Asset Revaluation Reserve 1,118,896 967,048 1,088,457 942,951 

Other Collections Asset Revaluation Reserve 58,830 270,771 58,830 270,771 

Works of Art Asset Revaluation Reserve 55,387 45,077 53,173 43,570 

Available-for-Sale Revaluation Reserve 474,164 355,691 460,943 346,627 

Special Purpose Reserve 23,450 22,396 12,735 12,630 

Members Capital Reserve 30,130 30,130 - - 

Contributed Equity 12,339 12,339 - - 

Foreign Currency Translation Reserve 164 58 - - 

Total Reserves 2,553,953 2,422,438 2,360,939 2,249,705 

MOVEMENTS IN RESERVES 

Trust Fund Reserve 

Balance Beginning of Year 237,465 219,640 237,465 219,640 

Transfer from/(to) Trust Funds - 507 - 507 

Transfer from/(to) Available-for-Sale Revaluation Reserve 166 - 166 - 

Transfer from Retained Surplus 15,513 17,318 15,513 17,318 

Balance End of Year 253,144 237,465 253,144 237,465 

General Reserve 


Transfer from Retained Surplus 145 35 4 - 


Land Asset Revaluation Reserve 


Changes due to Revaluation 45,889 6,925 38,010 - 

Impairment Losses on Revalued Assets (48) (2,442) (48) (2,442) 

Transfer to Special Purpose Reserve - (590) - (590) 


Building Asset Revaluation Reserve 


Changes due to Revaluation 145,712 - 139,370 - 

Transfer from/(to) Retained Surplus - - - - 

Impairment Gains/(Losses) on Revalued Assets 6,136 (20,184) 6,136 (20,184) 

Balance End of Year 1,118,896 967,048 1,088,457 942,951 

Other Collections Asset Revaluation Reserve 



Transfer from/(to) Retained Surplus (218,166) - (218,166) - 



125


Note 31(a) Reserves (Continued) 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Works of Art Asset Revaluation Reserve 




Available-for-Sale Revaluation Reserve 


Transfer from/(to) Retained Surplus (4) (1,206) - - 

Transfer from/(to) Trust Funds (166) (507) (166) (507) 

Transfers to Profit and Loss on Sale (512) - - - 

Changes due to Revaluation of Investments 119,155 99,417 114,482 100,669 


Special Purpose Reserve 


Transfer from/(to) Land Asset Revaluation Reserve - 590 - 590 

Transfer from/(to) Retained Surplus 1,054 1,112 105 99 


Members Capital Reserve 

Balance Beginning of Year 30,130 30,130 - - 

Balance End of Year 30,130 30,130 - - 

Foreign Currency Translation Reserve 

Balance Beginning of Year 58 188 - - 

Movement for Year 106 (131) - - 

Balance End of Year 164 58 - - 

Summary of Transfers 

(excluding Members Capital Reserve) 

Land Asset Revaluation Reserve - (590) - (590) 

Other Collections Asset Revaluation Reserve (218,166) - (218,166) - 

Available-for-Sale Revaluation Reserve (170) (1,713) (166) (507) 

Trust Fund Reserve 15,679 17,824 15,679 17,825 

Special Purpose Reserve 1,054 1,703 105 689 

General Reserve 145 35 4 - 

(201,458) 17,259 (202,544) 17,417 

Note 31(b) Retained Surplus 

Balance at Beginning of Year 742,867 683,136 649,550 590,873 


after related Income Tax Expense 90,007 76,990 84,431 76,095 

Transfers from/(to) Reserves 201,458 (17,259) 202,544 (17,417) 

Balance at End of Year 1,034,332 742,867 936,525 649,550 

126 




Note 31(c) Nature and Purpose of Reserves 

Trust Fund Reserve - this reserve reflects net surpluses derived from endowments and bequests which can only be 

applied to restricted purposes. 

General Reserve - this reserve is maintained to cover a range of general purposes. 

Asset Revaluation Reserves - these reserves arise from the revaluation of the specific assets of Land, Buildings, 

Other Collections and Works of Art. 

Available-for-Sale Revaluation Reserve - this reserve arises from the revaluation of Available-for-Sale Investments. 

Special Purpose Reserve - this reserve is maintained to cover a range of special purposes. The major Special Purpose Reserve 

is maintained by the University against possible future claims that may arise under the University’s self insurance licence for 

WorkCover. This reserve is in addition to the University’s statutory obligation. 

Members Capital Reserve - this reserve is maintained by the Melbourne Business School Ltd, a deemed subsidiary, 

for the purpose of recording capital donations principally received from the University and other parties who have subscribed, 

or are invited to subscribe to the Memorandum of Association of the Company. 

Foreign Currency Translation Reserve - this reserve is maintained by UMEE Ltd, a subsidiary, for recording the effect of 

foreign currency exchange rate movements at balance dates in respect of its non-hedged holdings of assets and liabilities of 

its overseas subsidiaries. 

MBS Contributed Equity - represents the Net Fair Value of Assets identified upon acquisition of Mt Eliza Graduate School of 

Business and Government Limited as at 5 March 2004. 

Note 32 Financial Instruments 

32.1 Financial Risk Management Objectives and Policies 

The consolidated entity’s principal financial instruments consist mainly of Listed and Unlisted Shares, Unit Trusts, Interest 

Bearing Liabilities. The main purpose of these financial instruments is to raise finance to support the Groups activities. 

The Group has various other financial instruments such as Accounts Receivable and Accounts Payable which arise directly 

from its operations. 

(i) Treasury Risk Management 

The Finance Committee meets regularly to monitor and evaluate the University’s financial management strategies in the 

context of the most recent economic conditions and forecasts. 

The Investment Management Committee meets to monitor and advise on the management of the University’s short term 

cash management and long term investments. 

All borrowings are subject to approval by Council. 

(ii) Financial Risks 

The main risks the Group is exposed to through its financial instruments are as follows: 

(a) Market Risk 

The University has a significant investment in marketable securities. This risk is addressed through investing in Fund 

Managers with investment policies aimed at diversification. 

(b) Foreign Currency Risk 

The Group has transactional currency exposures. Such exposure arises from the purchase in currencies other than the 

local currency. The Group also has exposure to International Shares as part of its long term investment portfolio. 

(c) Liquidity Risk 

Liquidity risk is managed by the University’s Finance Committee through the monitoring of current forecasts. The 

University has also established a standby bill facility of $10 million to provide short-term cash should the need arise. 

(d) Credit Risk 

The Group does not have any material credit risk exposure to any single receivable or group of receivables. Receivable 

balances are monitored on an ongoing basis to ensure that the exposure to bad debts is not significant. 

(e) Cash flow and Interest Rate Risk 

The interest rate on the Group’s long term debt obligations is fixed therefore the group is not exposed to any material 

interest rate risk. 


127


Note 32 Financial Instruments (Continued) 

32.1 Financial Risk Management Objectives and Policies (Continued) 

The consolidated entity’s accounting policies, including the terms and conditions of each class of financial asset and financial 

liability, both recognised and unrecognised at balance date, are as follows: 

Recognised Financial 

Instruments 

Balance 

Sheet 

Note 

Accounting Policies 

Terms and Conditions 

(a) Financial Assets 

Receivables 18 Receivables are carried at amortised cost 

less any provision for doubtful debts. 

Student Loan Receivables 18 Loan Receivables are stated at the lower of 

cost or recoverable amount. 

Accounts Receivable credit terms are 

30 Days. 

Repayment terms vary. Interest may 

be charged depending on the life of 

the loan. 

Bank Deposits 20 Deposits at call are stated at cost. Bank Call Deposits interest rate is 

determined by the official Money 

Market 11 am call rate. 

Term Deposits 20 Term Deposits are stated at cost. Term Deposits are for a period of up 

to 1 year. Interest rates are between 

5.50% and 6.32% 

Commercial Paper 20 Commercial Paper is carried at fair value 

through the Income Statement. 

Listed Income Securities 21 Listed Income Securities are carried at fair 

value through equity. 

Corporate Securities 21 Corporate Securities are stated at fair value 

through the Income Statement. 

Term of the Paper is less than 

60 days. Interest rates are in the 

range of 5.73% to 6.64%. 

Listed Income Securities are traded 

and issued in perpetuity subject to 

the right of the issuer to redeem 

them in certain circumstances. 

Interest rates are a margin over the 

90-day Bank Bill rate. 

Term of the Securities is 

6-12 months. Interest rates range 

between 6.55% and 6.56%. 

Mortgage Loans 21 First Mortgage Loans are carried at cost. 

Interest is recognised when received. 

Listed Shares 21 Listed Shares are carried at fair value 

through equity. 

Unlisted Shares 21 Unlisted Shares are carried at fair value 


Unit Trusts 21 Unit Trusts are carried at fair value 


(b) Financial Liabilities 

Creditors and Accruals 27 Liabilities are recognised for amounts to be 

paid in the future for goods and services 

received, whether or not invoiced to the 

economic entity. 

Creditors are normally settled on 

30 day terms. 

Bank Borrowing 28 Borrowings are carried at cost. The term of the Borrowing extends 

until 2029. Under a Bill Acceptance 

and Discount Facility the interest rate 

is capped at 7.32%. 

128 





32.2 

The consolidated entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a 

result of changes in market interest rates and effective weighted average interest rates on those financial assets and financial 

liabilities at 31 December 2006 is as follows: 

Financial Instruments Interest earning maturing in Consolidated 

carrying 

Non- 1 year Over 1 More 

amount as per 

Interest or less year to 5 than 5 

Balance Sheet 

Bearing 

years years 

Weighted 

Average 

Effective 

Interest Rate 

$’000 $’000 $’000 $’000 $’000 % 

Financial Assets 

Price Risk 

Interest Rate Risk 

Term Deposits - 17,444 - - 17,444 5.75 

Floating Rate Notes - 2,404 - 8,749 11,153 6.80 

Corporate Securities - 34,128 45,169 20,088 99,385 6.56 

Commercial Paper - 27,342 - - 27,342 6.64 

Market Risk 

Listed Shares 993,918 - - - 993,918 - 

Unlisted Shares 4,145 - - - 4,145 - 

Listed Securities 294 - - - 294 - 

Unit Trusts 199,393 - - - 199,393 - 

Mortgage Loans 90 - - - 90 - 

International and Domestic Bonds 19,381 - - - 19,381 - 

Credit Risk 

Receivables 222,130 - - - 222,130 - 

Student Loans Receivable 1,686 - - - 1,686 - 

Cash Flow Risk 

Cash and Deposits 201 68,234 - - 68,435 5.60 

Total Financial Assets 1,441,238 149,552 45,169 28,837 1,664,796 

Financial Liabilities 

Credit Risk 

Creditors and Accruals 81,120 - - - 81,120 - 

Bank Borrowing - 2,448 12,230 125,135 139,813 7.32 

Finance Lease Liabilities - 869 1,431 - 2,300 8.05 

Total Financial Liabilities 81,120 3,317 13,661 25,135 223,233 

Net Financial Instruments 1,360,118 146,235 31,508 (96,298) 1,441,563 


129



32.3 

The following table details the consolidated entity’s exposure to interest rate risk on financial assets and financial liabilities at 

31 December 2005. 

Financial Instruments Interest earning maturing in Consolidated 

carrying 

Non- 1 year Over 1 More 

amount as per 

Interest or less year to 5 than 5 

Balance Sheet 

Bearing 

years years 


Price Risk 

Interest Rate Risk 

Weighted 

Average 

Effective 

Interest Rate 

$’000 $’000 $’000 $’000 $’000 % 

Term Deposits - 17,238 - - 17,238 5.50 

Floating Rate Notes - - - - - 5.28 

Corporate Securities - 11,234 68,092 27,984 107,310 6.55 

Commercial Paper - 41,591 - - 41,591 5.73 

Market Risk 

Listed Shares 804,964 - - - 804,964 - 

Unlisted Shares 4,336 - - - 4,336 - 

Listed Securities 3,504 - - - 3,504 - 

Unit Trusts 157,204 - - - 157,204 - 

Mortgage Loans 90 - - - 90 - 

International and Domestic Bonds - - 20,220 - 20,220 - 

Credit Risk 

Receivables 174,124 - - - 174,124 - 

Student Loans Receivable 1,864 - - - 1,864 - 

Cash Flow Risk 

Cash and Deposits 118 72,458 - - 72,576 4.75 

Bank Call Deposits - - - - - - 

Total Financial Assets 1,146,203 142,521 88,312 27,984 1,405,021 


Credit Risk 

Creditors and Accruals 73,991 - - - 73,991 - 

Bank Borrowing - 2,354 11,309 128,504 142,167 7.32 

Finance Lease Liabilities - 514 1,313 - 1,827 7.00 

Total Financial Liabilities 73,991 2,868 12,622 128,504 217,985 

Net Financial Instruments 1,072,211 139,653 75,690 (100,520) 1,187,036 

130 





32.4 Net Fair Values 

The carrying amounts and aggregate net fair values of financial assets and financial liabilities at balance date are as follows: 


Total consolidated 

carrying amount as per 

Balance Sheet 

Aggregate net fair value 


$’000 $’000 $’000 $’000 

Cash and Cash Equivalents 68,435 72,576 68,435 72,576 

Loans and Receivables 

Receivables 222,129 174,124 222,129 174,124 

Student Loans Receivable 1,686 1,864 1,686 1,864 

Financial Assets at Fair Value through Profit or Loss 

Term Deposits 17,444 17,238 17,444 17,238 

Commercial Paper 27,343 41,590 27,343 41,590 

Debentures 35,866 11,041 35,866 11,041 

Unit Trusts 21,247 - 21,247 - 

Available-for-Sale Financial Assets 

Floating Rate Notes 11,152 - 11,152 - 

Corporate Securities Long Term 63,518 96,330 63,518 96,330 

Mortgage Loans 90 90 90 90 

Listed Shares / Securities 993,934 808,408 993,934 808,408 

Unlisted Shares 278 191 278 191 

Unit Trusts 178,146 157,204 178,146 157,204 

International and Domestic Bonds 19,381 - 19,381 - 

Held-to-Maturity Investments 

International and Domestic Bonds - 20,220 - 20,220 

Other Financial Assets 4,145 4,145 4,145 4,145 

Total Financial Assets 1,664,794 1,405,021 1,664,794 1,405,021 


Creditors and Accruals 81,120 73,991 81,120 73,991 

Bank Borrowings 139,813 142,167 139,813 142,167 

Finance Lease Liabilities 2,300 1,827 2,300 1,827 

Total Financial Liabilities 223,233 217,985 223,233 217,985 


131


Note 33 Responsible Persons and Executive Officers 

(a) Names of Responsible Persons and Executive Officers 

The names of each person holding the position of Member of Council during the year were: 

Mr I A Renard Prof. A K C Li (term expired 31 December 2006) 

Prof. G C Davis Ms R Storelli (re-appointed 1 January 2005) 

Prof. L Skene 

The Hon. Justice A Chernov 

Mr. G Hehir (term expired 31 December 2006) The Hon. D R White (re-appointed 1 January 2006) 

Dr M Doig Ms E N S Ritchie (re-appointed 1 January 2006) 

Mr E W Thornley (term expired 31 December 2006) Prof. M Elgar (elected 1 January 2006) 

Ms E Alexander Assoc. Prof L J Allen (re-elected 1 January 2006) 

Mr P A Briggs Mr T L Anning (term expired 31 December 2006) 

Judge I E Lawson Ms L Ooi (term expired 31 December 2006) 

Ms M Sloss (appointed 29 March 2006) 

Dr B H Lochtenberg (term expired 31 December 2006) 

Mr P Erickson (elected 1 January 2006, term expired 

31 December 2006) 

(b) Remuneration of Members of Council/Board Members CONSOLIDATED UNIVERSITY 


$’000 $’000 $’000 $’000 

Income paid or payable, or otherwise made available, to Members of the 

University Council and to Board Members of Subsidiaries in the consolidated 

entity and related parties in connection with the management of affairs of 

the University and its Subsidiaries 3,864 5,719 1,105 1,416 

NUMBER 

NUMBER 

The number of Council Members and Directors of Subsidiary companies 


whose remuneration from the Group fell within the following bands: 

Nil 75 108 8 19 

$1-$10,000 8 - - - 

$10,001-$20,000 10 8 10 1 

$20,001-$30,000 2 2 - - 

$30,001-$40,000 2 6 - - 

$40,001-$50,000 1 - - - 

$50,001-$60,000 1 3 - - 

$60,001-$70,000 3 - - - 

$70,001-$80,000 - 1 - - 

$80,001-$90,000 1 - 1 - 

$100,001-$110,000 3 1 - - 

$130,001-$140,000 - 1 - - 

$140,001-$150,000 - 1 - - 

$150,001-$160,000 2 2 - - 

$160,001-$170,000 - 1 - 1 

$170,001-$180,000 - 1 - - 

$180,001-$190,000 2 1 - - 

$200,001-$210,000 2 - 1 - 

$210,001-$220,000 - 1 - - 

$220,001-$230,000 - 1 - - 

$240,001-$250,000 - 2 - - 

$260,001-$270,000 - 1 - - 

$270,001-$280,000 1 - - - 

$330,001-$340,000 1 - - - 

$520,001-$530,000 - 1 - 1 

$600,001-$610,000 - 2 - 1 

$670,001-$680,000 1 - 1 - 

$850,001-$860,000 - 1 - - 

115 145 21 23 

In 2006, members of the University council were remunerated for their service. Certain members elected to donate part or all 

of this remuneration to the Univeristy. 

132 




Note 33 (B) Responsible Persons And Executive Officers (Continued) 

Remuneration of Executive Officers: CONSOLIDATED UNIVERSITY 


$’000 $’000 $’000 $’000 

Total amounts received by Executives of the Group including 

Members of Council (including accumulated benefits due to 

Executives who retired during the year). 18,383 14,878 8,926 6,687 

The number of Executives whose remuneration fell within the 

NUMBER 

NUMBER 

following bands of remuneration was: 


$100,001-$110,000 17 8 - 1 

$110,001-$120,000 6 6 - - 

$120,001-$130,000 8 4 - - 

$130,001-$140,000 4 6 - - 

$140,001-$150,000 - 3 - - 

$150,001-$160,000 6 3 1 - 

$160,001-$170,000 1 2 - 2 

$170,001-$180,000 3 - 1 - 

$180,001-$190,000 4 6 2 4 

$190,001-$200,000 2 4 1 3 

$200,001-$210,000 6 2 6 1 

$210,001-$220,000 6 1 2 - 

$220,001-$230,000 2 4 2 2 

$230,001-$240,000 - 2 - - 

$240,001-$250,000 2 4 2 1 

$250,001-$260,000 2 1 1 1 

$260,001-$270,000 1 2 1 1 

$270,001-$280,000 1 1 - 1 

$280,001-$290,000 2 4 1 3 

$300,001-$310,000 2 3 2 2 

$310,001-$320,000 - 2 - 2 

$320,001-$330,000 5 - 5 - 

$330,001-$340,000 2 - 1 - 

$340,001-$350,000 2 - 2 - 

$350,001-$360,000 - 1 - - 

$410,001-$420,000 1 - 1 - 

$470,001-$480,000 - 1 - 1 

$510,001-$520,000 1 - - - 

$600,001-$610,000 - 2 - 1 

$670,001-$680,000 1 - 1 - 

$740,001-$750,000 1 - - - 

$850,001-$860,000 - 1 - - 

88 73 32 26 

(c) Minister 

The responsible Minister is the Hon. Jacinta Allan MP. 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 Bio21 

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. 


133


Note 34 Contingent Assets and Contingent Liabilities 

The University and its subsidiaries have the following contingent assets and contingent liabilities as at 31 December 2006. 

34.1 Contingent Assets 

34.1.1 As at 31 December 2006 The University did not have any contingent assets (Nil 2005). 

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 

$7,062,000 (2005 $7,156,500) and the actuarial assessment of claims liability as at 31 December 2006 is $5,062,000 (2005 

$5,042,000). 

(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 ($600,000). 

34.2.2 Student Accommodation 

(a) College Square on Swanston Street 

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 rental guarantee is for a period of one year for the first year after settlement 

with a guarantee for the second year being provided by Becton (the developers). The University’s obligation applies over 

2006-2008 as the project is being delivered in two stages. Stage 1 was delivered in 2006 with settlements occurring from 

the end of May while Stage 2 was completed by January 2007 with settlements extending from that date. The maximum 

exposure for 2007 is estimated at $1,425,000 ($635,873 in 2006). 

34.2.3 Tax Exempt Status – UMEE Ltd (formerly Melbourne University Private Ltd) 

Pursuant to the transfer of the activities of Melbourne Enterprises International Ltd to Melbourne University Private Ltd (now 

know as UMEE Ltd) in 2002, Melbourne Enterprises International Ltd lodged a tax ruling request with the Australian Tax Office 

with respect to confirming Melbourne Enterprises International Ltd’s tax exempt status. On 18 December 2003 the Australian 

Taxation Office provided the determination that, based on Melbourne Enterprises International Ltd’s making of donations 

of $51,000,000 to the University of Melbourne, Melbourne Enterprises International Ltd was not entitled to an exemption 

from income tax from 1 July 1999. Based on the advice of Senior Counsel, Melbourne Enterprises International Ltd lodged a 

submission on the 30 June 2004 responding to the Australian Taxation Office’s (ATO) determination. 

The Australian Taxation Office responded to the submission on 3 April 2006, reiterating its view that Melbourne Enterprises 

International Ltd was not entitled to an exemption from income tax. Based on further advice of Senior Counsel, Melbourne 

Enterprises International Ltd lodged a further submission disagreeing with the ATO’s view. The submission is being considered 

by the ATO’s Senior tax Counsel, however at balance date no response has been received. 

As at the balance date the final outcome of this matter remains uncertain and it is not feasible to quantify with any certainty 

the potential financial impact on the consolidated entity of the possible loss of tax exempt status for Melbourne Enterprises 

International Ltd. 

134 




Note 35 Commitments 

Note 35.1 Capital Commitments 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Commitments for the acquisition of buildings, plant 

and equipment contracted for at the reporting date 

but not recognised as liabilities, payable: 

Within one year 58,695 34,455 58,149 33,811 

Later than one year but not later than five years 70,240 8,040 70,200 8,000 

Later than five years - - - - 

Total Capital Commitments 128,935 42,495 128,349 41,811 

Included in the above is the University’s 

commitment to contribute $10.5 million 

(2005 $11.5 million) to Uniseed with no specified 

payment plan. 

Note 35.2 Lease Commitments - As Lessee 

Commitments in relation to leases contracted 

for at the reporting date but not recognised as 

liabilities, payable: 



Later than five years 26,581 29,884 26,106 29,219 

44,416 47,007 41,273 43,339 

Representing: 

Cancellable operating leases - - - - 

Non-cancellable operating leases 44,416 47,007 41,273 43,339 

Total Lease Commitments - as Lessee 44,416 47,007 41,273 43,339 

Note 35.3 Lease Commitments - as Lessor 

The University has entered into operating leases with various businesses as lessor to lease retail space at Union House and 

other areas controlled by the University for the purpose of providing services to students. Included below are the rentals 

receivable from these properties. 

Future minimum rentals receivable under noncancellable 

operating leases at the reporting date 

but not recognised as assets, receivable: 

Within one year 2,374 2,406 863 963 


Later than five years 1,021 1,115 55 75 

Total Lease Commitments - as Lessor 5,985 7,363 2,298 2,650 


135


Note 35.4 Other Expenditure 

Commitments 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 


Later than one year but not later than five years 187 - - - 

Later than five years - - - - 

Total Other Expenditure Commitments 2,230 3,000 2,000 3,000 

Included in the above is the University’s commitment to contribute $2.0 million (2005 $3.0 million) for the Synchrotron Project. 

Note 36 Superannuation Commitments 

36.1 University employees are members of a range of superannuation funds, which are divided into the following categories: 

(i) Those operative and open to membership: 

- UniSuper (comprising the merged SSAU - Superannuation Scheme for Australian Universities and TESS - 

Tertiary Education Superannuation Scheme) 

(ii) State Government Schemes closed to future membership by University employees: 

- State Employees Retirement Benefits Scheme 

- State Superannuation Fund 

Some University employees receive superannuation benefits through the Superannuation Guarantee Scheme. 

36.2 UniSuper Plans 

UniSuper is a multi employer superannuation fund operated by UniSuper Limited as the Corporate Trustee and administered by 

UniSuper Management Pty Ltd, a wholly owned subsidiary of UniSuper Limited. The operations of UniSuper are regulated by 

the Superannuation Industry (Supervision) Act 1993. 

(i) 

UniSuper offers eligible members the choice of two schemes known as the Defined Benefit Division (DBD) (previously 

referred to as the Defined Benefit Plan) or Accumulation Super (2) (previously referred to as the Investment Choice 

Plan). The contribution rate to the schemes is 21% of member’s salary of which the member contributes 7% and the 

University 14%. From 1 July 2006, members can elect to reduce the level of member contributions with corresponding 

reductions in benefits. 

In 2005, UniSuper advised that the Defined Benefit Plan should be disclosed under the multi employer provisions of AASB 

119 Employee Benefits which allowed for defined benefit obligations to be reported on a defined contribution basis with 

some additional information. AASB 119 Employee Benefits states that this is an appropriate solution for a Defined Benefit 

Plan where the employer does not have access to the information required and there is no reliable basis for allocating the 

benefits, liabilities, assets and costs between employers. 

As a consequence of changes to the UniSuper Trust Deed in December 2006, UniSuper have advised that the foregoing no 

longer applies and that both the Defined Benefit Division and Accumulation Super (2) plans are defined as Multi Employer 

Defined Contribution Schemes in accordance with AASB 119 Employee Benefits. 

(ii) UniSuper also offers a cash accumulation productivity scheme known as Accumulation Super (1) (previously referred to 

as the Award Plus Plan (APP)). University employees have no requirement to contribute to the scheme. The University 

contributes the equivalent of 3% of base salary in respect of these employees who were members of the Defined Benefit 

Division or the Accumulation Super (2) Plan. Employees who do not qualify for membership of Defined Benefit Division 

or Accumulation Super (2) will have a minimum contribution 9% of their annual salary contributed by the University to 

Accumulation Super (1) prescribed under the Superannuation Guarantee Charge Act 1992. 

Casual and non-permanent employees who do not qualify for membership of the Defined Benefit Division or Accumulation 

(2) are eligible for Accumulation Super (1). 

136 




36.3 State Government Schemes 

The University has a number of employees who are members of the State Employees Retirement Benefits Scheme and the 

State Superannuation Fund administered by the Government Superannuation Office. These schemes are defined benefits 

schemes and are closed to future University employees. 

At 30 June, the State Superannuation Fund was carrying total liabilities for member benefits greater than the value of the 

net market value of the plan’s assets. As a result an unfunded superannuation liability exists and is recognised in the financial 

statements of the Scheme. The University’s portion of the unfunded liability comprises of employees who transferred to 

the University from the former Melbourne College of Advanced Education together with those employees of the former 

subsidiaries Hawthorn Institute of Education Ltd and Victorian College of Agriculture and Horticulture Ltd and those employees 

of the Victorian College of the Arts. 

As at 30 June the unfunded superannuation liability determined by the Victorian Government Superannuation Office amounted to: 

2006 2005 

$’000 $’000 

University of Melbourne 90,723 95,390 

Victorian College of the Arts 14,733 15,499 

105,456 110,889 

The values as at 30 June 2006 are the values that have been included in the accounts. Funding to meet payments incurred will 

be provided to the University of Melbourne by the Australian Government. The cost is shared between the State of Victoria and 

the Australian Government. 

36.4 The total superannuation contributions by the University during the year in respect of the above plans were: 


$’000 $’000 

UniSuper - Defined Benefit Division, Accumulation Super (2) and Accumulation Super (1) 63,936 57,472 

State Government Schemes 419 756 

Other Superannuation Funds 7,818 7,960 

72,173 66,188 

Note 37 Workcover - Self Insurance 

As from 1 October 1990, the University became a Self Insurer for Workers’ Compensation and WorkCover. The actuarial 

assessment carried out as at 31 December 2006 assessed liabilities at $5,062,000 ($5,042,000 at 31 December 2005) which 

are projected to decrease to $5,014,000 by 31 December 2007. 


137


Note 38 Related Party Transactions 

(a) Parent entities 

The ultimate parent entity within the Group is the University. 

(b) Subsidiaries 

Interests in subsidiaries are set out in note 40. 

(c) Members of Council and Specified Executives 

Disclosures relating to members of Council and specified executives are set out in note 33. 

(d) Transactions with Related Parties 

The following transactions occurred with related parties: 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Funding Provided to Subsidiaries - - 18,348 17,976 

Sale of Goods and Services to 

Subsidiaries - - 2,886 1,478 

Other Related Parties 87 78 87 78 

Purchase of Goods from Subsidiaries - - 18,087 14,851 

Loans to Related Parties 

Loan Repayments from Subsidiaries - - 1,250 100 

Interest Revenue from Subsidiaries - - 26 67 

Interest Expense to Subsidiaries - - 134 127 

(e) Outstanding Balances 

The following balances are outstanding at the reporting date in relation to transactions with related parties: 

Current Receivables (sale of goods and services) 

Subsidiaries - - 578 538 

Non-Current Receivables (loans) 

Subsidiaries - - - 1,250 

Current Payables (purchases of goods) 

Subsidiaries - - 1,081 524 

No provision for doubtful debts was raised in 2006 (2005 Nil) for the outstanding balances disclosed above. 

Therefore no expense was recognised for the period. 

(f) Guarantees 

No guarantees have been given to third parties in respect of related parties. 

(g) Terms and Conditions 

During the financial year, all transactions between the University and its subsidiaries were in the ordinary course of business 

and on normal arm’s length commercial terms and conditions. 

138 




Note 39 Consultants 

Details of consultants engaged by the University and their costs were as follows: 


$’000 $’000 

Consultancies costing less than $100,000 

Payments to Consultants 2,337 521 

Number of Consultancies Engaged – 101 in 2006 (24 in 2005) 

Consultancies costing more than $100,000 

Equus Consulting Pty Ltd – University Systems Project implementation and operation - 344 

IBM Australia Ltd – University Systems Project HRMS Payroll implementation - 353 

Oracle Corporation Australia Pty Ltd – University Systems Project HRMS 

Payroll implementation - 1,172 

Acumen Alliance Vic Pty Ltd – Advice on Project Management - 138 

Bates Smart Pty Ltd – Space and Facility Master Plan and Implementation - 229 

Database Systems Consultancy Pty Ltd – Advice on Project Management - 232 

Phillips KPA Pty Ltd – Advice on restructuring in light of VSU Legislation - 265 

Red Rock Consulting Pty Ltd – University Systems Project Research Management 

System Implementation 205 310 

Zequor Pty Ltd – Advice on Project Management, Implementation and Operation - 152 

Oracle Corporation Australia Pty Ltd – University Systems Project Research Management 

System Implementation 245 - 

Juroko Pty Ltd – University Systems Project Research Management System 

152 - 

Implementation 

Beaton Consulting Pty Ltd – Advice on the Melbourne Model Curriculum Reform 327 - 

Jane Frances Kelly – Advice on the preparation of the Strategic Plan and Communications 

Strategy 130 - 

Pageup Pty Ltd – Pageup People System Implementation 122 - 

Total Consultancy Cost 3,518 3,716 


139


Note 40 Investments In Subsidiaries 

The current subsidiaries of the Group are outlined below. There were no changes to ownership during the year. 

Name of Entity Principal Activities Country of 

Incorporation 

Class of 

Shares 

Ownership 

Interest 


Health Institute 

(University of Melbourne) Ltd 

Undertake and provide research, 

development, education, training, 

consultancy and other activities in regard 

to medical and related areas. 

Australia 

Fully Paid 

Ordinary 

Shares 

100% 

Australian Music Examinations 

Board (Victoria) Limited 

Provide a system of graded examinations 

in relation to music and speech in Victoria 

and overseas. 

Australia 

Company 

Limited by 

Guarantee 

100% 

Australian National Academy of 

Music 

Provide a national centre of excellence 

with practical music education and 

training. 

Australia 

Company 

Limited by 

Guarantee 

71% 

The Meanjin Company Limited 

The publication, promotion and distribution 

of the quarterly journal “Meanjin”. 

Australia 

Company 

Limited by 

Guarantee 

100% 


Limited Group 

Provision of educational services. Australia Company 

Limited by 

Guarantee 

45% 


Publishing Limited 

To publish the best scholarly writing from 

Australia and Overseas, both within and 

independent of the tertiary sector. 

Australia 

Company 

Limited by 

Guarantee 

100% 

Melbourne Ventures Pty Ltd 

To support the commercialisation agenda 

of the University of Melbourne. 

Australia 

Fully Paid 

Ordinary 

Shares 

100% 

MU Student Union Ltd 

Provision of amenities, services and 

facilities for the benefit of students. 

Australia 

Company 

Limited by 

Guarantee 

100% 

UMEE Ltd 

Commercialisation of educational services 

of the University of Melbourne and the 

provision of English Language teaching. 

Australia 

Fully Paid 

Ordinary 

Shares 

100% 

Victorian College of the Arts* 

Provide education in the creative, 

performing and other arts and for general 

education of people undertaking courses 

in those arts. 

Australia N/A N/A 

The Victorian Institute for 

Chemical Sciences Limited + 

Provide teaching and research in chemical 

sciences. 

Australia 

Company 

Limited by 

Guarantee 

33% 

* The Victorian College of the Arts is a statutory authority of the State of Victoria having been established under the Victorian 

College of the Arts Act 1981. Under the current accounting standards, the University is deemed to have a reporting 

responsibility for the VCA. On 15 November 2005, the VCA Council signed a Heads of Agreement with the University which 

has led to the establishment of VCA as a faculty of the University from 1 January 2007. On 29 August 2006 the Melbourne 

University (Victorian College of the Arts) Act 2006 was enacted. The Act dissolved the VCA and its Council and provided for 

the integration of the VCA as a Faculty within the University. On 1 January 2007 the University became the successor in 

law to the VCA and all assets and liabilities of the VCA were transferred to the University of Melbourne. Further details are 

included in Note 44 to the Financial Statements. 

+ The University of Melbourne, Monash University and RMIT are all equal members of the Victorian Institute for Chemical 

Sciences Limited. Under the terms of the Funding Agreement with the State Government, the University of Melbourne 

has financial responsibility for the company and it is therefore considered to have control. 

140 




Note 41 Particulars In Relation to Each Consolidated Entity 

Net Operating Result 

After Income Tax 


$’000 $’000 

University General 

- Profit/(Loss) from Continuing Operations 67,702 57,698 

Trust Funds 15,513 17,318 

Auxiliary Operations: 

Child Care Services (11) (100) 

Halls of Residence: 

- International House 14 33 

- Kendall Hall 53 10 

- Medley Hall (77) 57 

Melbourne Theatre Company 628 260 

Melbourne University Bookshop 722 344 

Sport and Physical Recreation Centre 41 269 

The Ian Potter Museum of Art 239 391 

Veterinary Clinic and Hospital (675) (127) 

Adjustments on Consolidation for Differences in Accounting Policies 282 (58) 

Sub-Total University 84,431 76,095 

Subsidiaries 

Australian International Health Institute (University of Melbourne) Limited 76 3 

Australian Music Examinations Board (Victoria) Limited 219 248 

Australian National Academy of Music Limited 73 334 

Meanjin Company Limited 33 (1) 

Melbourne Business School Limited Group 1,310 5,882 

Melbourne University Publishing Limited 2,366 (742) 

Melbourne Ventures Pty Ltd (1) (62) 

MU Student Union Ltd 1,509 2,124 

UMEE Ltd Group (888) (6,635) 

Victorian College of the Arts * 588 31 

Sub-Total Subsidiaries 5,285 1,182 

Adjustments on Consolidation for Differences in Accounting Policies 291 (287) 

Total 90,007 76,990 

* Included in the Victorian College of the Arts net operating result is a $5.0 million contribution from the 

University of Melbourne. 


141


Note 42 Subsidiaries - Income Statement Analysis 

With the exception of some subsidiaries in UMEE Ltd, all subsidiaries of the University are domiciled in Australia. 

Total 

Revenue 


Total 

Revenue 

2005 

Total 

Expenditure 


Total 

Expenditure 

2005 

Subsidiary $’000 $’000 $’000 $’000 

Victorian College of the Arts 28,946 32,929 28,358 32,898 

Melbourne Business School Limited Group 48,732 54,436 47,422 48,554 

UMEE Ltd Group 19,361 27,777 20,249 34,409 

Meanjin Company Limited 302 205 269 206 

Australian Music Examinations Board (Victoria) Limited 1,954 2,092 1,736 1,843 

Australian International Health Institute (University of 

5,641 4,385 5,565 4,382 

Melbourne) Limited 

Australian National Academy of Music Limited 2,863 2,949 2,790 2,615 

MU Student Union Limited 17,822 13,247 16,313 11,124 

Melbourne Ventures Pty Ltd 2,304 1,796 2,306 1,878 

Melbourne University Publishing Limited 7,357 4,064 4,992 4,805 

The Victorian Institute for Chemical Sciences Limited * 1,743 4,956 3,383 3,696 

Total - University Subsidiaries 137,024 148,836 133,382 146,410 

Tax 

Tax Profit/(Loss) Profit/(Loss) 

(Expense)/ 

Benefit 

(Expense)/ 

Benefit 


Subsidiary $’000 $’000 $’000 $’000 

Victorian College of the Arts - - 588 31 

Melbourne Business School Limited Group - - 1,310 5,882 

UMEE Ltd Group - (3) (888) (6,635) 

Meanjin Company Limited - - 33 (1) 

Australian Music Examinations Board (Victoria) Limited - - 218 248 

Australian International Health Institute (University of 

- - 76 3 

Melbourne) Limited 

Australian National Academy of Music Limited - - 73 334 

MU Student Union Limited - - 1,509 2,124 

Melbourne Ventures Pty Ltd 1 20 (1) (62) 

Melbourne University Publishing Limited - - 2,366 (742) 

The Victorian Institute for Chemical Sciences Limited * - - (1,640) 1,260 

Total - University Subsidiaries 1 17 3,644 2,442 

Where applicable, the results of the above Subsidiaries include contributions from the University of Melbourne. 

* The Victorian Institute for Chemical Sciences Limited operates on a June financial year-end in order to align its reporting to the 

Department of Innovation, Industry and Regional Development. 

142 




Note 43 Subsidiaries - Balance Sheet Analysis 

Working 

Capital 

Working 

Capital 

Property, 

Plant & 

Equipment 

Property, 

Plant & 

Equipment 

Total 

Assets 

Total 

Assets 

2006 2005 2006 2005 2006 2005 

Subsidiary $’000 $’000 $’000 $’000 $’000 $’000 

Victorian College of the Arts 11,364 8,796 92,571 83,159 123,290 114,618 

Melbourne Business School Limited Group 3,922 2,021 86,116 81,774 182,922 171,243 

UMEE Ltd Group 9,558 10,862 15,427 14,926 31,553 36,104 

Meanjin Company Limited 55 20 - - 140 84 

Australian Music Examinations Board 

(Victoria) Limited 685 430 406 484 1,314 1,093 

Australian International Health Institute 

(University of Melbourne) Limited 963 863 29 51 2,301 1,739 

Australian National Academy of Music 

Limited 1,300 1,082 418 557 1,849 1,753 

MU Student Union Limited 4,270 2,934 1,775 1,562 8,243 7,035 

Melbourne Ventures Pty Ltd (89) (102) 160 191 629 599 

Melbourne University Publishing Limited 3,461 784 242 323 5,855 2,594 

The Victorian Institute for Chemical Sciences 

Limited * 499 924 1,366 2,581 1,881 3,523 

Total - University Subsidiaries Entities 35,988 28,614 198,510 185,608 359,977 340,385 

Total 

Total 

Liabilities Liabilities Equity Equity 


Subsidiary $’000 $’000 $’000 $’000 

Victorian College of the Arts 19,371 20,569 103,919 94,049 

Melbourne Business School Limited Group 15,216 14,717 167,706 156,526 

UMEE Ltd Group 6,617 10,386 24,936 25,717 

Meanjin Company Limited 92 69 48 15 

Australian Music Examinations Board 

(Victoria) Limited 182 179 1,132 914 

Australian International Health Institute 

(University of Melbourne) Limited 1,380 894 921 845 

Australian National Academy of Music 

Limited 144 119 1,705 1,414 

MU Student Union Limited 2,272 2,572 5,971 4,462 

Melbourne Ventures Pty Ltd 301 331 328 268 

Melbourne University Publishing Limited 2,152 1,422 3,703 1,172 

The Victorian Institute for Chemical Sciences 

Limited * 16 17 1,865 3,505 

Total - University Subsidiaries Entities 47,742 51,277 312,234 289,105 

* The Victorian Institute for Chemical Sciences Limited operates on a June financial year-end in order to align its reporting to the 

Department of Innovation, Industry and Regional Development. 


143


Note 44 Events Occurring after Reporting Date 

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. This legislation was gazetted and proclaimed on 31 August 2006. As a result all assets and liabilities 

of the Victorian College of the Arts (VCA) were assumed by the University from 1 January 2007, and the VCA ceased to exist as 

a separate reporting entity from that date. 

There are no other matters or circumstances that have arisen since the end of the financial year that have affected or may 

subsequently affect the financial position of the University or its subsidiaries. 

Note 45 Notes to the Statement of Cash Flows 

(a) Reconciliation of Cash 

CONSOLIDATED 

UNIVERSITY 


$’000 $’000 $’000 $’000 

Cash/(Overdraft) 50,496 62,934 36,320 50,651 

Petty Cash Floats 201 185 174 175 

Deposits at Call/Term Deposits 6,613 857 - - 

Bank Bills (maturity < than 90 days) 11,125 8,600 - - 

68,435 72,576 36,494 50,826 

(b) Reconciliation of Operating Result from 

Continuing Operations after Income Tax to 

Net Cash from Operating Activities 

Operating Result from Continuing Operations after Related 

Income Tax Expense 90,007 76,990 84,431 76,095 

Add/(Less) Non-Cash Flows in Net Profit/(Loss) 

Depreciation and Amortisation 75,362 75,959 68,628 68,598 

Impairment Losses 4,970 17,617 7,970 15,339 

Net Transfers Received Free of Charge (189) (9,336) - (9,336) 

Bad and Doubtful Debts 680 1,300 506 1,264 

Revaluation Gains on Other Financial Assets at Fair Value (388) (753) (434) (707) 

Loss/(Gain) on Sale/Redemption of Investments 4,733 (8,468) 5,296 851 

Net (Gain)/Loss on Sale of Non-Current Assets 1,691 (47) 1,718 (280) 

Changes in Assets and Liabilities 

Decrease (Increase) in Receivables (45,131) (7,605) (49,153) (5,623) 

Decrease (Increase) in Prepayments 3,417 (213) 3,460 (116) 

Decrease (Increase) in Other Assets (2,253) 3,178 (1,302) 2 

Decrease (Increase) in Inventories (758) (174) (405) 131 

Increase (Decrease) in Provision for Doubtful Debts (134) (800) 11 (842) 

Increase (Decrease) in Provision for Income Taxes Payable 3 67 - - 

Increase (Decrease) in Payables 10,650 24,549 14,436 22,913 

Increase (Decrease) in Provisions for Employee Entitlements 3,911 14,436 3,802 12,117 

Increase (Decrease) in Income in Advance 34,945 8,542 32,161 11,988 

Increase (Decrease) in Other Provisions (8,604) 2,195 (6,285) 2,193 

Net Cash Inflow (Outflow) from Operating Activities 172,912 197,437 164,840 194,585 

144 




Note 46 Detailed Income Statement for the Year Ended 31 December 2006 - University 

Income from Continuing Operations 

Australian Government Financial Assistance - 

UNIVERSITY 

GENERAL 

TRUST 

FUNDS 

AUXILIARY 

OPERATIONS 

UNIVERSITY 

TOTAL 

$’000 $’000 $’000 $’000 

Australian Government Grants 483,488 - 1,725 485,213 

HECS-HELP Australian Government Payments 75,655 - - 75,655 

FEE-HELP 27,076 - - 27,076 

Operating Funds Received from The University of Melbourne - - 1,471 - 

HECS-HELP Student Payments 24,372 - - 24,372 

State Government Financial Assistance 47,227 - 497 47,725 

Fees and Charges 278,795 42 19,634 295,413 

Investment Income 76,697 26,672 1,270 104,304 

Royalties Trademarks and Licences 5,051 4 - 5,054 

Consultancy and Contract Research 23,950 19 72 24,040 

Other Income 

Donations and Bequests 18,064 2,828 1,751 22,643 

Publishing and Book Sales 2,467 - 9,852 12,319 

Box Office Receipts - - 9,609 9,609 

Computer Sales 2,583 5 51 2,640 

Subscriptions University Societies 961 - 242 1,203 

Sale of Produce and Livestock 2,116 10 - 2,127 

Net Gain on Sale of Assets - - 82 - 

Research/Project Income other than the 

Australian Government - - - - 

Non-Government Grants 47,735 - 42 47,777 

Scholarships and Prizes - - 100 100 

Deferred Income - Government Contributions 

for Superannuation (4,667) - - (4,667) 

Miscellaneous Income 5,004 7 3,226 3,607 

Total Income from Continuing Operations 1,116,574 29,587 49,624 1,186,210 


145


Less Expenses from Continuing Operations 

UNIVERSITY 

GENERAL 

TRUST 

FUNDS 

AUXILIARY 

OPERATIONS 

UNIVERSITY 

TOTAL 

$’000 $’000 $’000 $’000 

Employee Benefits and On Costs 550,285 3,000 20,778 574,063 

Depreciation and Amortisation 66,418 1 2,207 68,628 

Repairs and Maintenance 39,715 754 969 41,437 

Finance Costs 10,767 - 335 10,767 

Bad and Doubtful Debts 446 - 70 517 

Accounting and Auditing Services 387 - 242 390 

Other Expenses 

Scholarships 45,622 3,615 273 49,511 

Equipment Purchases (items not capitalised) 13,079 149 754 13,982 

Consumable Materials 35,135 64 1,641 36,840 

Travel, Staff Development and Training 32,565 190 1,035 33,789 

Library Materials 6,297 580 36 6,914 

Grants 93,902 1,222 21 93,674 

Rent and Leasing Payments 6,183 - 2,626 8,765 

Utilities and Services 25,175 15 1,188 26,378 

Contracted and Professional Services 64,790 374 1,004 62,873 

Printing, Publications and Stationary 7,999 685 588 9,273 

Insurance 5,019 - 14 5,032 

Net Loss on Disposal of Property, Plant and Equipment 1,800 - - 1,718 

Other Expenses 35,234 3,071 14,910 48,822 

Course Fees Paid 4,751 354 - 5,103 

Impairment Losses 7,970 - - 7,970 

Superannuation - Deferred Employee Benefits (4,667) - - (4,667) 

Total Expenditure from Continuing Operations 1,048,872 14,074 48,691 1,101,779 


before Related Income Tax Expense 67,702 15,513 933 84,431 

Income Tax Expense/(Benefit) - - - - 

Net Operating Result for the Year 67,702 15,513 933 84,431 

146 




Note 47 Detailed Balance Sheet as at 31 December 2006 - University 

Current Assets 

UNIVERSITY 

GENERAL 

TRUST 

FUNDS 

AUXILIARY 

OPERATIONS 

UNIVERSITY 

TOTAL 

$’000 $’000 $’000 $’000 

Cash and Cash Equivalents (47,527) 65,637 18,384 36,494 

Receivables 63,938 42 1,646 63,338 

Inventories 2,581 - 2,920 5,501 

Other Financial Assets at Fair Value 84,458 - - 84,458 

Other Non Financial Assets 5,473 - 2,148 7,620 

Total Current Assets 108,923 65,679 25,098 197,411 

Non-Current Assets 

Receivables 144,470 24 - 134,825 

Available-for-Sale Financial Assets 773,181 410,980 1,944 1,186,106 

Other Financial Assets 23,674 - - 23,674 

Property, Plant and Equipment 2,200,051 2,521 69,613 2,268,460 

Intangible Assets 18 - 32 50 

Total Non-Current Assets 3,141,394 413,525 71,589 3,613,116 

Total Assets 3,250,317 479,204 96,687 3,810,527 

Current Liabilities 

Payables 53,527 826 7,827 59,890 

Interest Bearing Liabilities 2,448 - 383 2,448 

Provisions 101,790 - 1,865 103,655 

Other Current Liabilities 82,476 - 8,089 90,283 

Total Current Liabilities 240,241 826 18,164 256,276 

Non-Current Liabilities 

Payables 12,000 - 3,921 12,000 

Interest Bearing Liabilities 137,365 - 5,365 137,365 

Provisions 106,589 - 832 107,422 

Total Non-Current Liabilities 255,954 - 10,118 256,787 

Total Liabilities 496,195 826 28,282 513,063 

Net Assets 2,754,122 478,378 68,405 3,297,464 

Equity 

Statutory Funds - - - - 

Reserves 1,825,327 478,378 60,957 2,360,939 

Retained Surplus 928,795 - 7,448 936,525 

Total Equity 2,754,122 478,378 68,405 3,297,464 


147


Note 48 Detailed Cash Flow Statement for the Year Ended 31 December 2006 - University 

Cash Flows from Operating Activities 

Inflows: 

UNIVERSITY 

GENERAL 

TRUST 

FUNDS 

AUXILIARY 

OPERATIONS 

UNIVERSITY 

TOTAL 

$’000 $’000 $’000 $’000 

Australian Government - 

- CGS, Research and Other DEST Grants 509,770 - 436 510,206 

- Higher Education Loan Programmes 102,732 - - 102,731 

- Other Australian Government Grants - - 731 731 

Operating Funds Received from the University of Melbourne - - 1,471 - 

State Government Grants 29,227 - 497 29,724 

HECS-HELP - Student Payments 24,372 - - 24,372 

Dividends Received 93,560 - - 93,560 

Interest Received (12,466) 26,672 1,169 15,040 

Fee-for-Service Revenue 250,004 15 19,577 266,301 

Other Income 100,712 (16) 26,363 120,097 

Outflows: 

Payments to Employees (540,542) (3,000) (20,482) (564,024) 

Payments to Suppliers (Inclusive of Goods and 

Services Tax (GST)) (247,259) (3,131) (25,440) (265,571) 

Interest Paid (10,767) - (335) (10,767) 

GST - Net Payment to Australian Taxation Office (5,278) (8) 184 (5,101) 

Other Outflows (148,733) (5,197) - (152,460) 

Net Cash Inflow (Outflow) from Operating Activities 145,332 15,335 4,171 164,840 

Cash Flows from Investing Activities 

Inflows: 

Proceeds from Sale of Property, Plant and Equipment 1,227 - 185 1,412 

Proceeds from Sale of Available-for-Sale and Other Investments 800,394 - 27 800,421 

Outflows: 

Purchase of Property, Plant and Equipment (82,293) - (2,481) (84,773) 

Purchase of Available-for-Sale and Other Investments (891,571) (3,536) (131) (895,239) 

Purchase of Intangible Assets - - (32) (32) 

Net Cash Inflow (Outflow) from Investing Activities (172,243) (3,536) (2,432) (178,212) 

Cash Flows from Financing Activities 

Inflows: 

Loans Repaid 2,640 15 - 2,290 

Outflows: 

Loans Granted (773) (28) - (802) 

Repayment of Interest Bearing Liabilities (2,448) - (366) (2,448) 

Net Cash Inflow (Outflow) from Financing Activities (581) (13) (366) (960) 

Net Increase (Decrease) in Cash and Cash Equivalents (27,492) 11,786 1,373 (14,332) 

Cash and Cash Equivalents at the Beginning of the Year (20,035) 53,851 17,011 50,826 

Effects of Exchange Rate on Cash and Cash Equivalents - - - - 

Cash and Cash Equivalents at the End of the Year (47,527) 65,637 18,384 36,494 

148 




Note 49 Acquittal of Australian Government Financial Assistance (University Only) 

Note 49.1 CGS and Other DEST Grants 

Commonwealth Indigenous Equity 

Grants Scheme # Support Fund Programmes * 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 

Financial Assistance Received in CASH during 

the Reporting Period 

(Total Cash Received from the Australian 

Government for the Programmes) 158,555 150,016 905 728 494 524 

Net Accrual Adjustments - (263) - - - - 

Revenue for the Period 2(a) 158,555 149,753 905 728 494 524 

Surplus/(Deficit) from the Previous Year - - - - - - 

Total Revenue Including Accrued Revenue 158,555 149,753 905 728 494 524 

Less Expenses Including Accrued Expenses (158,555) (149,753) (905) (728) (494) (524) 

Surplus/(Deficit) for Reporting Period - - - - - - 

# Includes the basic CGS grant amount, CGS Regional Loading and CGS-Enabling Loading. 

* Includes Higher Education Equity Programme and Students with Disabilities Programme. 

Workplace Reform 

Programme 

Workplace 

Productivity 

Programme 

Learning & 

Teaching 

Performance 

Fund 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 

Financial Assistance Received in CASH during the 

Reporting Period 


Government for the Programmes) 2,082 2,044 1,500 - 9,853 - 

Net Accrual Adjustments - - - - - - 

Revenue for the Period 2(a) 2,082 2,044 1,500 - 9,853 - 


Total Revenue Including Accrued Revenue 2,082 2,044 1,500 - 9,853 - 

Less Expenses Including Accrued Expenses (2,082) (2,044) (1,500) - (9,853) - 


Capital Superannuation 

Development Pool Programme 


NOTES $’000 $’000 $’000 $’000 




Government for the Programmes) - 692 7,373 7,107 

Net Accrual Adjustments 583 (692) (344) - 

Revenue for the Period 2(a) 583 - 7,029 7,107 

Surplus/(Deficit) from the Previous Year - 1,954 7,980 906 

Total Revenue Including Accrued Revenue 583 1,954 15,009 8,013 

Less Expenses Including Accrued Expenses (583) (1,954) (14,983) (33) 

Surplus/(Deficit) for Reporting Period - - 26 7,980 


149


Note 49.1 CGS and Other DEST Grants (Continued) 

Collaboration & 

Total 

Structural Reform 

Programme 


NOTES $’000 $’000 $’000 $’000 



(Total Cash Received from the Australian Government 

for the Programmes) 208 - 180,970 161,111 

Net Accrual Adjustments - - 239 (955) 

Revenue for the Period 2(a) 208 - 181,209 160,156 

Surplus/(Deficit) from the Previous Year - - 7,980 2,860 

Total Revenue Including Accrued Revenue 208 - 189,189 163,016 

Less Expenses Including Accrued Expenses (208) - (189,163) (155,036) 

Surplus/(Deficit) for Reporting Period - - 26 7,980 

Note 49.2 Higher Education Loan Programmes 

HECS-HELP FEE-HELP^ OS-HELP** 

(Australian Govt 

payments only) 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 




for the Programmes) 79,083 76,256 32,409 35,589 510 - 

Net Accrual Adjustments (3,428) (5,811) (5,333) (12,304) (510) - 

Revenue for the Period 2(b) 75,655 70,445 27,076 23,285 - - 

Surplus/(Deficit) from the Previous Year - - 41 - - - 

Total Revenue Including Accrued Revenue 75,655 70,445 27,117 23,285 - - 

Less Expenses Including Accrued Expenses (75,655) (70,445) (27,117) (23,244) - - 

Surplus/(Deficit) for Reporting Period - - - 41 - - 

^ For 2005, FEE-HELP figures include PELS and BOTPLS. 

** OS-HELP receipts from the Australian Government are not included in the Income Statement. 

The cash received by the University does not meet the definition of revenue in accordance with AASB 118 Revenue. 

Revenue for the period is therefore nil. 

Total 


NOTES $’000 $’000 




for the Programmes) 112,002 111,845 

Net Accrual Adjustments (9,271) (18,115) 

Revenue for the Period 2(b) 102,731 93,730 

Surplus/(Deficit) from the Previous Year 41 - 

Total Revenue Including Accrued Revenue 102,772 93,730 

Less Expenses Including Accrued Expenses (102,772) (93,689) 

Surplus/(Deficit) for Reporting Period - 41 

150 




Note 49.3 Scholarships 

Australian 

Postgraduate 

Awards 

International 

Postgraduate 

Research 

Scholarships 

Commonwealth 

Education Costs 

Scholarships 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 

Financial Assistance Received in CASH 

during the Reporting Period 


Government for the Programmes) 10,560 10,827 2,388 2,275 786 474 


Revenue for the Period 2(c) 10,560 10,827 2,388 2,275 786 474 

Surplus/(Deficit) from the Previous Year (378) (794) (649) (406) 33 - 

Total Revenue Including Accrued Revenue 10,182 10,033 1,739 1,869 819 474 

Less Expenses Including Accrued Expenses (11,091) (10,411) (3,002) (2,518) (685) (441) 

Surplus/(Deficit) for Reporting Period (909) (378) (1,263) (649) 134 33 

Commonwealth 

Total 

Accommodation 

Scholarships 


NOTES $’000 $’000 $’000 $’000 




Government for the Programmes) 1,365 952 15,099 14,528 

Net Accrual Adjustments - - - - 

Revenue for the Period 2(c) 1,365 952 15,099 14,528 

Surplus/(Deficit) from the Previous Year 82 - (912) (1,200) 

Total Revenue Including Accrued Revenue 1,447 952 14,187 13,328 

Less Expenses Including Accrued Expenses (1,184) (870) (15,962) (14,240) 

Surplus/(Deficit) for Reporting Period 263 82 (1,775) (912) 

Note 49.4 DEST - Research 

Institutional Grants 

Scheme 


Scheme 

Systemic 


Initiative 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 




Government for the Programmes) 33,985 32,772 59,907 56,851 2,016 2,355 


Revenue for the Period 2(d) 33,985 32,772 59,907 56,851 2,016 2,355 


Total Revenue Including Accrued Revenue 33,985 32,772 59,907 56,851 2,016 2,355 

Less Expenses Including Accrued Expenses (33,985) (32,772) (59,907) (56,851) (2,016) (2,355) 



151


Note 49.4 DEST - Research (Continued) 

Research 


Block Grants 

Regional Protection 

Scheme 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 




Government for the Programmes) 26,052 25,038 - - 121,960 117,016 


Revenue for the Period 2(d) 26,052 25,038 - - 121,960 117,016 


Total Revenue Including Accrued Revenue 26,052 25,038 - - 121,960 117,016 

Less Expenses Including Accrued Expenses (26,052) (25,038) - (121,960) (117,016) 


Note 49.5 Australian Research Council Grants 

Note 49.5(a) Discovery 

Projects 

Fellowships 


NOTES $’000 $’000 $’000 $’000 




Government for the Programmes) 29,982 29,198 3,748 3,123 

Net Accrual Adjustments 501 (5,215) (814) (639) 

Revenue for the Period 2(e)(i) 30,483 23,983 2,934 2,484 

Surplus/(Deficit) from the Previous Year 5,426 5,841 1,206 1,800 

Total Revenue Including Accrued Revenue 35,909 29,824 4,140 4,284 

Less Expenses Including Accrued Expenses (30,764) (24,398) (3,109) (3,078) 

Surplus/(Deficit) for Reporting Period 5,145 5,426 1,031 1,206 

Indigenous 

Total 

Researchers 

Development 


NOTES $’000 $’000 $’000 $’000 




Government for the Programmes) 175 174 33,905 32,495 

Net Accrual Adjustments (5) (66) (318) (5,920) 

Revenue for the Period 2(e)(i) 170 108 33,587 26,575 

Surplus/(Deficit) from the Previous Year - - 6,632 7,641 

Total Revenue Including Accrued Revenue 170 108 40,219 34,216 

Less Expenses Including Accrued Expenses (160) (108) (34,033) (27,584) 

Surplus/(Deficit) for Reporting Period 10 - 6,186 6,632 

Total 

152 




Note 49.5(b) Linkages 



Special 

Research 

Initiatives 


International 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 

(Total Cash Received from the Australian Government for 

the Programmes) 300 295 1,992 2,824 240 219 

Net Accrual Adjustments 147 (295) (227) (1,320) (86) (22) 

Revenue for the Period 2(e)(ii) 447 - 1,765 1,504 154 197 

Surplus/(Deficit) from the Previous Year 19 20 - 861 33 94 

Total Revenue Including Accrued Revenue 466 20 1,765 2,365 187 291 

Less Expenses Including Accrued Expenses (405) (1) (1,765) (2,365) (152) (258) 

Surplus/(Deficit) for Reporting Period 61 19 - - 35 33 

Learned 

Academics 

Projects 

Total 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 




for the Programmes) - - 9,025 7,834 11,557 11,172 

Net Accrual Adjustments - - (4,000) (1,509) (4,166) (3,146) 

Revenue for the Period 2(e)(ii) - - 5,025 6,325 7,391 8,026 

Surplus/(Deficit) from the Previous Year - - 2,177 3,539 2,228 4,514 

Total Revenue Including Accrued Revenue - - 7,202 9,864 9,619 12,540 

Less Expenses Including Accrued Expenses - - (7,202) (7,687) (9,525) (10,312) 

Surplus/(Deficit) for Reporting Period - - - 2,177 94 2,228 

Note 49.5(c) Networks and Centres 

Research Centres 

Total 

Networks 


NOTES $’000 $’000 $’000 $’000 $’000 $’000 



(Total Cash Received from the Australian Government for 

the Programmes) 1,186 1,164 9,371 7,174 10,557 8,338 

Net Accrual Adjustments 143 - (2,489) (3,035) (2,346) (3,035) 

Revenue for the Period 2(e)(iii) 1,329 1,164 6,882 4,139 8,211 5,303 

Surplus/(Deficit) from the Previous Year 1,243 571 - 1,364 1,243 1,934 

Total Revenue Including Accrued Revenue 2,572 1,735 6,882 5,503 9,454 7,237 

Less Expenses Including Accrued Expenses (1,875) (492) (6,882) (5,503) (8,757) (5,994) 

Surplus/(Deficit) for Reporting Period 697 1,243 - - 697 1,243 


153

THE UNIVERSITY OF MELBOURNE 

Statement by Principal Accounting Officer 

In my opinion: 

(a) i) the financial statements of the University of Melbourne and the consolidated entity present a true and fair view of the 

financial transactions of the University and the consolidated entity during the financial year ended 31 December 2006 

and the financial position of its operations for the year ended on that date, and 

ii) the amount of Australian Government financial assistance received during the financial year ended 31 December 2006 

was expended for the purposes for which it was provided, and 

iii) the Institution has complied with all material requirements of applicable legislation, contracts, agreements and various 

programme guidelines that apply to the Australian Government financial assistance identified in these financial 

statements, and 

(b) the financial statements have been prepared in accordance with the Australian Equivalents to International Financial 

Reporting Standards (AIFRS), the Financial Management Act 1994, other mandatory professional reporting requirements 

and the Guidelines for the Preparation of Annual Financial Reports for the 2006 Reporting Period by Australian Higher 

Education Institutions as issued by the Department of Education, Science and Training. 

In addition, I am not aware at the date of signing these statements of any circumstances which would render any particulars 

included in the statements to be misleading or inaccurate and there are reasonable grounds to believe that the University 

of Melbourne and the consolidated entity will be able to pay its debts as and when they fall due. 

Bryan Rossi 

Deputy Principal and Director of Financial Operations 

26 March 2007 

Statement by the Vice-Chancellor and Chief Financial Officer 

At its meeting held on 16 March 2007 the University’s Finance Committee resolved to recommend to the University’s Council 

that the financial statements for the year ended 31 December 2006 be adopted. The University Council at its meeting held on 

26 March 2007 adopted the financial statements and authorised the Vice-Chancellor and Chief Financial Officer to sign 

the financial statements on behalf of the University. 

In our opinion: 

(a) i) the financial statements of the University of Melbourne and the consolidated entity present a true and fair view of the 

financial transactions of the University and the consolidated entity during the financial year ended 31 December 2006 

and the financial position of its operations for the year ended on that date, and 

ii) the amount of Australian Government financial assistance received during the financial year ended 31 December 2006 

was expended for the purposes for which it was provided, and 

iii) the Institution has complied with all material requirements of applicable legislation, contracts, agreements and various 

programme guidelines that apply to the Australian Government financial assistance identified in these financial 

statements, and 

(b) the financial statements have been prepared in accordance with the Australian Equivalents to International Financial 

Reporting Standards (AIFRS), the Financial Management Act 1994, other mandatory professional reporting requirements 

and the Guidelines for the Preparation of Annual Financial Reports for the 2006 Reporting Period by Australian Higher 

Education Institutions as issued by the Department of Education, Science and Training. 

In addition, we are not aware at the date of signing these statements of any circumstances which would render any particulars 

included in the statements to be misleading or inaccurate and there are reasonable grounds to believe that the University of 

Melbourne and the consolidated entity will be able to pay its debts as and when they fall due. 

Glyn Davis 

David Percival 


Vice-Principal and Chief Financial Officer 

26 March 2007 26 March 2007 

154 




155

156 


Compliance Index/ 

to Disclosure Requirements 2006 

The Annual Report of the University of Melbourne is prepared in accordance with: 

FMA Financial Management Act 1994 

FRD Financial Reporting Directions 

SD Standing Directions of the Minister for Finance issued under the Financial Management Act 1994 

TEA 1993 Tertiary Education Act 1993 

PAEC Decision of Public Accounts and Estimates Committee of Parliament 

RUG Victorian Government response to the Review of University Governance 

ESOS Education Services for Overseas Students Act 2000 

DEST Department of Education, Science and Training 

This Index was prepared to facilitate identification of compliance with statutory disclosure requirements. 

Clause Disclosure Page 

Report of Operations 

FRD 10 Disclosure Index 157-159 

FRD 11 Disclosure of Ex-Gratia Payments N/A 

FRD 21A Responsible person-related disclosures 132-133 

SD 4.2 (g),(h) General and Financial Information 2-156 

SD 4.2 (j) Signature of Chancellor or nominee 1 

SD 4.2 (j) Date of meeting at which Council approved annual report, or date of delegated approval 1 

General Information 

FRD 22A Manner in which the University was established 63 

FRD 22A Relevant Minister 63 

FRD 22A Objectives, functions, powers and duties 63-64 

FRD 22A Nature and range of services, people and communities served 63-64 

FRD 22A Administrative structure 65 

FRD 22A Members of the Council and Indemnity 2,66,133 

FRD 22A Occupants of senior offices and areas of responsibility 3,68 

FRD 22A Organisational chart 3,65,68 

FRD 22A 

Workforce data for current and previous year; statement on application of employment and 

conduct principles 

53 

FRD 22A Statement on Occupational Health and Safety matters 77-80 


157


Financial Year Information 

FRD 22A Five-year summary of financial results 89-90 

FRD 22A Significant changes in financial position during the year 87 

FRD 22A Operational objectives and performance including significant activities and achievements 7-61 

FRD 22A Major changes or factors affecting the achievement of operational objectives 7-11 

FRD 22A Events occurring after balance date 87 

FRD 22A Details of consultancies over $100,000 139 

FRD 22A Details of consultancies under $100,000 139 

Other Relevant Information 

FRD 22A Application and operation of the Freedom of Information Act 1982 70-71 

FRD 22A Compliance with the Building Act 1993 81 

FRD 22A Compliance with the Whistleblowers Protection Act 2001 (section 104) 71-72 

FRD 22A Statement that information listed in Appendix 1 is available on request to the relevant Minister 85 

FRD 22A Implementation and compliance with National Competition Policy 80 

FRD 22A Summary of environmental performance 69-70 

Additional Information on Request Subject to the Provision of the FOI Act 

FRD 22A Declarations of pecuniary interests 85 

FRD 22A Shares held by senior officers 85 

FRD 22A Publications 85 

FRD 22A Changes in prices, fees, charges, rates and levies 85 

FRD 22A Major external reviews 85 

FRD 22A Major research and development activities 18-27, 85 

FRD 22A Overseas visits 85 

FRD 22A Promotional, public relations and marketing activities 85 

FRD 22A Occupational Health and Safety matters 77-80 

FRD 22A Industrial relations, accidents and disputes 53,79,80,85 

FRD 22A List of major committees sponsored by the University 67,85 

FRD112A Employee Superannuation Funds 136-137 

158 



Additional Information 

s. 12I TEA 1993 Compulsory non-academic fees, subscriptions and charges 82-85 

PAEC 

(December 1997) 

International initiatives and strategies 42-47 

RUG 

Statement that public funds allocated to the purposes specified by the Government or other 

public funding body 

154 

RUG Council’s risk management strategy 72-76 

RUG Summary table of financial performance of the University’s Associates and commercial ventures. N/A 

ESOS Compliance with ESOS Act 2000 and National Code of Practice 81 

DEST 

Internal grievance and complaint procedures and complaints made to and investigated by 

the Ombudsman 

DEST Website address for the current and previous Annual Reports 160 

72 

FMA 49 (a), (b), 

(c), (d), (e) 

Financial Statements 

SD 4.2 (a), (c) 

Compliance with applicable Australian accounting standards and other authorative 

pronouncements 

SD 4.2 (b) Statement of Changes in Equity 94 

SD 4.2 (b) Income Statement 92 

SD 4.2 (b) Balance Sheet 93 

SD 4.2 (b) Cash Flow Statement 95 

SD 4.2 (b) Notes to the financial statements 96-153 

SD 4.2(c) Accountable Officer’s Declaration 154 

SD 4.2 (d) Amount expressed in the nearest dollar 104 

96 

SD 4.2 (e) 

Reviewed and recommended by the Audit Committee or Responsible body prior to finalisation 

and submission 

154 


159

Useful websites/ 

Vice-Chancellor’s welcome 

Annual Reports 2005, 2004, 2003, 2002, 2001, 2000 

Operational Plan 

Strategic Plan 

Growing Esteem 

Melbourne Model 

Curriculum Commission 

Research and Research Training Taskforce 

Knowledge Transfer Taskforce 

Nine Principles Guiding Teaching and Learning 

in the University Teaching and Learning 

Management Plan 2006 

Sixteen Indicators of Effective 

Assessment in Higher Education 

Research and Research Training Plan 2006 

Uni News 

University Events 

Tsunami Taskforce 

Research Achievements 

Community Programs 

The Arts at Melbourne 

Teaching and Learning 

Access Quality Education 

Living on Campus 

Historical and Summary Statistics 

www.unimelb.edu.au/vc/ 

www.unimelb.edu.au/publications/annualrep/index.html 

www.unimelb.edu.au/publications/opplan/index.html 

www.unimelb.edu.au/publications/strategicplan/index.html 

http://growingesteem.unimelb.edu.au/ 

http://www.futurestudents.unimelb.edu.au/courses/melbmodel/ 

http://growingesteem.unimelb.edu.au/curriculum_commission/ 

http://growingesteem.unimelb.edu.au/research_quality/ 

http://growingesteem.unimelb.edu.au/knowledge_transfer/ 

www.cshe.unimelb.edu.au/pdfs/9principles.pdf 

www.unimelb.edu.au/dvc-academic/responsibilities.html#a 

www.cshe.unimelb.edu.au/assessinglearning/ 

www.unimelb.edu.au/publications/ 

http://uninews.unimelb.edu.au/ 

http://events.unimelb.edu.au/ 

www.unimelb.edu.au/tsunami/index.html 

www.unimelb.edu.au/about/research/achievements.html 

www.unimelb.edu.au/community/programs.html 

www.unimelb.edu.au/community/arts.html 

www.unimelb.edu.au/student/teaching.html 

www.unimelb.edu.au/highereducationreforms/ 

www.unimelb.edu.au/campuses/living.html 

www.upo.unimelb.edu.au/upo_historical_stats.html 

160 


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www.unimelb.edu.au 

The University of Melbourne Telephone +613 8344 4000 

Victoria 3010 Australia Facsimile +613 8344 5104

annual report/2006 - University of Melbourne

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