Annual Report 2008 - Central Queensland University

Financial Viability
& Summary
resulting from the write down of the University’s investment in the QIC Growth Fund.
The University’s liquidity improved slightly over 2007, to $101.4 million, despite
the write down in the value of the QIC Growth Fund Investment.
The New CMS
At the start of 2008, the University bought out its joint venture partner in C
Management Services Pty Ltd (CMS), which manages CQUniversity’s Australian
International Campuses, for $12 million. In 2008 CQUniversity saw a $7.5
million return on that investment from dividends from pre-acquisition profits and
Management Fees received.
Now a 100% wholly owned entity of the University, the CMS Board has been
reconstituted with five Directors appointed by the University Council as the sole
shareholder. The Board has two independent Directors one of whom is the Chair.
(See details in Entities Controlled by the University). The Board reports regularly to
the Council as shareholder and the Vice-Chancellor attends all Board meetings.
Largely based on a model employed when CQUniversity owned 50% of CMS,
interaction between the two entities is lead by a Strategic Management Group
(SMG) comprising the Deputy Vice-Chancellor as Chair, the Executive Director
(Resources), the Executive Director (Corporate Services), the CMS CEO, Chief
Financial Officer, and General Manager Group Operations. The SMG is serviced by a
Project Officer and underpinned by a number of operational units (user groups such
as Finance, Marketing, Faculties and Library) who attend meetings as required on
specific items. The Strategic Management Group meets monthly.
CQUniversity Selected Revenue Items
140,000,000
CQUniversity Selected Expenditure Items
2007
120,000,000 120,000,000
2008
100,000,000 100,000,000
80,000,000 80,000,000
60,000,000 60,000,000
40,000,000 40,000,000
20,000,000
20,000,000
0
Government
Grants
HECS - HELP
Fees and
Charges
Investment
Income
0
Employee
Benefits
Management
Fees
Investment
Losses
The Year Ahead
CQUniversity will conclude its restructure (of Faculties and Divisions) in 2009
which is expected to contribute to increased efficiencies and a further reduction
in expenditure.
The University is anticipating increases in student numbers at the Australian
International Campuses and overseas with the commencement of a new partnership
arrangement in Singapore with the Melior Education Group.Domestic student
numbers are expected to drop slightly in 2009 compared to 2008, however this does
not include any increase which may occur because of the current financial downturn.
84
We also anticipate the Queensland Treasury Corporation’s Review of the University
(supported by both the Federal and State Governments) which was commenced in
2008 will be released in 2009. The study, regarding the financial viability and longterm
sustainability of the University, covers the period ending 31 December 2011.