Untitled - Annual Report 2004 - The University of Western Australia

AAAchieving International ExcellenceVISIONThe University of Western Australia will be recognised internationally for its excellence in teaching andresearch and as a leading intellectual and creative resource to the communities it serves.MISSIONTo advance, transmit and sustain knowledge and understanding through the conduct of teaching,research and scholarship at the highest international standards for the benefit of the international,Australian and Western Australian communities.VALUESThe core values underpinning our activities are a commitment to:• a high performance culture designed to achieve international excellence• academic freedom to encourage staff and students to engage in the open exchange of ideas andthought• continuous improvement through self-examination and external review• fostering the values of openness, honesty, tolerance, fairness, trust and responsibility in social,moral and academic matters• transparency in decision-making and accountability• equity and merit as the fundamental principles for the achievement of the full potential of all staffand studentsDEFINING CHARACTERISTICSOur internationally excellent University will be recognised by the following defining characteristics:• high quality, as the pervading criterion for all our activities• comprehensive, with a broad teaching and research profile in the arts, sciences, and professions• selective, within a comprehensive base, to develop particular areas of strength and emphasis• research-active, with a strong teaching and research nexus across all our disciplines• internationally focused, for both the content and standards of our activities• technologically innovative, to maximise our flexibility and responsiveness• flexible and responsive, to meet the needs of the community, our students and our graduatesPRIORITY OBJECTIVESThe following Priority Objectives, reviewed annually, translate the University’s broad strategies intoselective operational priorities:• to recruit, develop and retain the highest quality staff• to attract, develop and graduate the highest quality students• to increase and diversify the University’s funding base• to develop, and direct resources preferentially to areas of particular strength, importance andopportunity• to build strategic partnerships and alliances• to improve collaboration within the University.In addition, and beyond the direct community benefit from all teaching and research activities, theUniversity is commited to community service which enhances the student experience, engages thepublic and involves graduates.ANNUAL REPORT 2004Published by The University of Western AustraliaOfficial correspondence should be addressed to the Executive Director (Academic Services) and Registrar,The University of Western Australia, 35 Stirling Highway, Crawley, Western Australia 6009CRICOS Provider Number: 00126GTelephone: (08) 6488 3002 email: registrar@acs.uwa.edu.auFacsimile: (08) 6488 1075 Web address: http://www.uwa.edu.auDesign and production by the Publications Unit, The University of Western AustraliaPhotography by Dirk Wittenberg and from the University collectionPrinted by Scott Print, Perth, Western Australia

Annual Report 2004Chancellor’s Introduction 3Vice-Chancellor’s Overview 5Report on OperationsUniversity Governance 11Planning and Accountability 16Research 19Teaching and Learning 20Community Relations 23Staffing and Related Matters 25Capital Works 29Effects of Economic and Other Factors 30The Impact of State Legislation 30Statistical Profile 33Financial Statements 41Performance Indicators 84

Chancellor’s IntroductionIT IS my pleasure to present the Annual Report ofThe University of Western Australia for 2004, a yearcharacterised by continuing development aimed atensuring our University can successfully face newchallenges brought about by both internal andexternal pressures.Notable among the external pressures in 2004 was the Federal Government’s higher education reform agenda.Senate engaged with the University and wider communities throughout the year as it considered a range of optionsrelated to these reforms. For example, robust and wide-ranging debate preceded Senate’s decisions on studentcontributions and undergraduate fee-paying options—a tradition which ensures that all issues are canvassed andheard. Senate’s decisions reinforced the commitment to academic merit as the key to study at this University and tohigh quality educational outcomes.The University also continued to embrace internal challenges, with academic and administrative structureswhich have the flexibility to accept the opportunities of change. It is a tribute to the commitment and dedication ofstaff—both academic and general, at all levels—that the University continues to build on its outstanding record ofperformance at international standards of excellence.I also take this opportunity to thank the members of the Senate for their commitment to the University andtheir hard work during 2004. Senators remain vitally involved in the general direction of the University as well ascontinuing the process (begun some time ago) which is aimed at ensuring the Senate’s own activities involvestandards of best practice for corporate governance.In February 2004, the University was pleased to welcome Professor Alan Robson as the new Vice-Chancellor following the retirement of Professor Deryck Schreuder at the end of his six-year term. ProfessorRobson was previously Deputy Vice-Chancellor of the University and brings a wealth of experience to theVice-Chancellorship. Together with his new Executive team, Professor Robson is well placed to take theUniversity forward in an environment of continuing change.Dr Ken Michael AM CitWA,Chancellorpage 3

Vice-Chancellor’s OverviewTHE YEAR has seen intense effort throughout TheUniversity of Western Australia to ensure we arepositioned to take maximum benefit from a rapidlychanging external environment.The establishment of a new executive team, as well as a renewed emphasis on quality and responsivemanagement across the University, have been key features of the year. In addition, we have discussed anddeveloped far-reaching responses to an extensive package of Federal Government reforms, and we have workedwith a growing income to achieve a balanced budget in 2005.Soon after taking up the position of Vice-Chancellor, I presented my 2004 Agenda to Senate and AcademicBoard. It contained some key targets under the Operational Priorities Plan which provide a significant foundationupon which to build our priorities for coming years.A new position of Pro Vice-Chancellor (Academic) has been aimed at strengthening planning and policy inteaching and learning. Through the year, this has been evidenced across a range of issues including the development ofa composite set of performance indicators; engagement with the Federal Government in developing procedures for thedistribution of funds from the Learning and Teaching Performance Fund; the appointment of the Pro Vice-Chancellorto the board of the new Carrick Institute for Learning and Teaching in Higher Education; and an expansion of ourteaching internship scheme which will help strengthen the teaching-research nexus. We have also introduced a newstandardised unit survey system, Students’ Unit Reflective Feedback (SURF), across the University to establish anadditional and transparent evaluation of student satisfaction.On external measures of quality teaching, the University continues to rate extremely highly. For example, wecontinue to enjoy considerable success in the annual Australian Awards for University Teaching with two finaliststhis year—a team from the School of Anatomy and Human Biology in the category of teaching large first-year classes;and Associate Professor Jane Long, Dean, Undergraduate Studies, in the category of Humanities and the Arts.The extent of success in improving our performance in Australian Research Council and National Health andMedical Research Council funding rounds became clear late in the year with an increase in both overall funding andour success rate. Particularly noteworthy was the increase of almost $6 million (to almost $16m) in NHMRC fundingand another increase of $6 million (to nearly $14m) in ARC Discovery grants. Further, a $2.8 million package of fiveARC Linkage Infrastructure Grants to the University includes provision for the establishment of a new supercomputerthat will benefit both the University and the State as a whole. The construction of the super-computingfacility forms part of a collaboration supported by the State Government. These outcomes provide a very solidfoundation on which to continue building our case for funding in 2005 and beyond. It is a credit to the work ofour researchers, and to the direction provided by the Pro Vice-Chancellor (Research and Innovation) and thesupport provided by Research Services.Early in the year, we were successful in winning two Fellowships: Professor Leigh Simmons(Evolutionary Biology); and Professor Steven Smith (Plant and Molecular Biology)—the only FederationFellowships to be awarded to Western Australia.Also during the year, we developed a model for the implementation of a research assessmentexercise and finalised a set of commercialisation protocols. The protocols were developed through theUniversity’s Office of Industry and Innovation which is responsible for facilitating thecontinued overleafpage 5

commercialisation of the University’s intellectual property. The office also reported another successful yearin negotiating new research contracts with industry partners and negotiating licensing agreements.During the year, we received the report of the Australian Universities Quality Agency whichcommended the University as a provider of high quality teaching and research with good outcomes and highstaff and student morale. The report was a welcome affirmation of the University’s standing within the highereducation sector and importantly within the broader community.The University continued to grow its budget throughout the year. In 2005, we expect income to increase byalmost $60 million or more than 14 per cent (the second year of growth above 14 per cent). Just over half of theincrease in income comes in specific purpose funding (where conditions apply on expenditure), including externalresearch grants, specific Commonwealth grants, donations and bequests; the remainder is general purpose funding(no conditions apply), comprising additional funding for general teaching and research programmes, a portion ofinvestment income and increased course fees and charges.Senate’s new direction for undergraduate programmes (providing for increased fee-paying opportunities fordomestic students in selected courses) has been underpinned by a commitment to provide an expanded suite ofscholarships and awards through which we can achieve the goals of promoting and rewarding excellence, while atthe same time adhering to the principles of equity, access and diversity. A new and expanded portfolio ofundergraduate scholarships and awards will be available in 2005 to support capable students, especially thoseexperiencing economic, educational or social disadvantage.The University owes particular thanks to retiring Deans of Faculty, Professor Louis Landau (Medicine andDentistry), Dr Paul McLeod (Business School) and Mr Patrick Beale (Architecture, Landscape and Visual Arts). All havecontributed significantly to the development of their faculties and the University. Thanks also to Professor DennisHaskell, who is completing his second two-year term as Chair of the Academic Board, for the enormous amount ofwork he has undertaken in a rapidly changing higher education environment.Leading a large and complex organisation such as this University requires a sustained effort across a range ofportfolios. In that regard, the work of Deputy Vice-Chancellor Professor Margaret Seares and the other members ofthe Executive—Professor Doug McEachern, Professor Belinda Probert, Ms Gaye McMath and Mr Peter Curtis—hasbeen outstanding. Their efforts are essential in ensuring the University continues to meet its short-term goals andlonger-term ambitions.I also wish to thank the Chancellor, Dr Ken Michael, and all Senate members for their support in my first yearas Vice-Chancellor. I look forward to the prospect of moving forward from what essentially has been a year ofpositioning the University to maximise benefit from a changing external operating environment.Professor Alan Robson AMVice-Chancellorpage 7

Report onoperationsUniversity GovernancePlanning and AccountabilityResearchTeaching and LearningCommunity RelationsStaffing and Related MattersCapital WorksEffects of Economic and Other FactorsThe Impact of State Legislation

University GovernanceTHE UNIVERSITY was established by the Universityof Western Australia Act 1911. The Act providesthe legislative machinery for administering theUniversity; it establishes the Governing Body (theSenate) which is empowered to ‘have the entirecontrol and management of the affairs of theUniversity’.It gives the Senate powers to act in the interests of the University through the making of statutes, regulations andby-laws and through the management of income and expenditure. It provides powers of delegation for the GoverningBody, so that day-to-day management of the University can be delegated to officers employed by the University.Membership of the Governing Body in 2004 is listed in Appendix A of this section (page 14). Other State Acts which dealwith aspects of the management of the University are the University Buildings Act 1952, the University Medical SchoolTeaching Hospitals Act 1955 and the QEII Medical Centre Act 1966.The University is responsible to the State Minister for Education for the proper conduct of its business under thelegal framework established by State legislation. However, the University receives the majority of its funding from theCommonwealth and it is therefore responsible to the Commonwealth Minister for Education for the delivery of itsteaching and research programmes and for the provision of adequate infrastructure to support those programmes.In order to fulfil its responsibilities effectively the Senate appoints the Vice-Chancellor and President as its ChiefExecutive Officer and works in partnership with him to maximise the University’s capacity and performance and toensure its fiscal viability. The Senate delegates operational responsibility to the Vice-Chancellor and monitors, guidesand supports the work of the Vice-Chancellor and Executive. It has identified its key activities as the setting ofstrategic directions, the oversight, audit and review of proper governance processes, and the assessment andmonitoring of performance against established targets.In 2004, the Senate had six standing committees to advise it on its key activities: the Audit and ReviewCommittee, the Development Committee, the External Environment Committee, the Strategic ResourcesCommittee, the Chancellor’s Committee and the Chancellor’s Reference Group.The Vice-Chancellor is appointed for a period normally not exceeding seven years. Professor DeryckSchreuder, the University’s 16th Vice-Chancellor, completed his duties in December 2003 in order to return toscholarship. In February 2004 Professor Alan Robson, the University’s previous Deputy Vice-Chancellor,succeeded Professor Schreuder as the University’s 17th Vice-Chancellor.The Vice-Chancellor appoints an Executive group to assist him with his responsibilities for theacademic, financial, administrative and other business of the University. In 2004 the Executive comprised:Deputy Vice-Chancellor—Professor Margaret SearesResponsible for broad line management of the deans of faculties, Head of the School ofIndigenous Studies, and the University Librarian and for external relations and communityactivities, and deputising for the Vice-Chancellor in his absence.continued overleafpage 11

Pro Vice-Chancellor (Research and Innovation)—Professor Doug McEachernResponsible for research and research training, industry liaison and commercialisation, IT PolicyPro Vice-Chancellor (Academic)—Professor Belinda ProbertResponsible for teaching and learning, undergraduate students, staffing policyExecutive Director (Finance and Resources)—Mr Mark Altus (on an acting basis to March 2004)—Ms Gaye McMathResponsible for all matters relating to finance and resourcesExecutive Director (Academic Services) and Registrar—Mr Peter CurtisResponsible for all matters relating to the academic administration of the UniversityThe University has long valued the collegial contribution that its members can make to academic and otherdecision making. The existence of committees at all levels of the University’s operations has provided the mainmechanism for this contribution. The most visible of these committees are the University’s central academiccommittees: the Academic Board, the Academic Council and a range of expert standing committees of Council. TheAcademic Board is established under Statute No. 19 and is the University’s peak academic body. In 2004 its Chairwas Professor Dennis Haskell. The Academic Council is its Executive Committee and deals, under delegatedauthority, with most of the Academic Board’s responsibilities as defined in Statute No. 19. Among otherresponsibilities, it has a significant role in determining academic policies which apply across all faculties. TheCouncil’s standing committees, while acting executively on many matters under delegated authority, also provide itwith expert policy advice on the full range of academic activities within the University (for example, teaching andlearning, research, admissions).Statute No. 8 establishes the faculties, which are responsible for the general administration of the coursesunder their governance. All new courses are subject to the approval of the Academic Board/Council and Senate.Major changes to courses are subject to the approval of the Academic Board/Council.Each faculty is headed by a Dean, who has dual responsibility: to the faculty for providing vision, academicleadership and effective management, and to the Vice-Chancellor for the effective management of the faculty’shuman, physical and financial resources.In 2004, the Faculties and their Deans were as follows:Architecture, Landscape and Visual ArtsArts, Humanities and Social SciencesEconomics and Commerce (UWA Business School)EducationEngineering, Computing and MathematicsLawLife and Physical SciencesMedicine and DentistryNatural and Agricultural SciencesMr Patrick BealeProfessor Anne PauwelsProfessor Paul McLeodDr Marnie O’NeillProfessor Mark BushMr Bill FordProfessor George StewartProfessor Louis LandauProfessor Alistar RobertsonEach faculty has a number of standing committees, which not only act executively on some matters underdelegated authority approved by the Academic Board in accordance with Statute No. 8, but also advise the facultyon the various elements of its responsibilities.Each school resourced by a faculty has a head, appointed by the Vice-Chancellor, who has dual responsibility:to the school for providing effective leadership and to the Dean for the effective management of the school’s human,physical and financial resources.The University’s decision-making structures and processes combine a significant level of operationalautonomy (both academic and budgetary) in the faculties with a cohesive institution-wide approach to policy in thecollegial and executive governance systems.page 12

The Vice-Chancellor also appoints several Deans whose responsibilities extend across theUniversity. In 2004 they were:Dean of the Graduate Research SchoolProfessor Robyn OwensDean (International Relations)Professor Paige PorterDean of Undergraduate Studies Associate Professor David Treloar (to 31 March 2004)Associate Professor Jane Long (from 1 April 2004)The Executive, the Deans, the heads of schools and committees at all levels work with, and aresupported by, the University’s professional staff, both technical and administrative.Diagrammatic representations of the University’s Governance system and its executive managementstructure are set out in Appendix B and C respectively of this section (page 15).The major publications produced by the University each year are:• Annual Report• University Calendar• Undergraduate Handbook• Postgraduate Handbook• Research Expertise• Scholarships, Prizes, Endowments• Uniview (three times a year)• Unistats• UWA News (fortnightly)Most other official publications are available online and can be accessed at the following web site:http://www.publishing.uwa.edu.au/page 13

APPENDIX ASENATE MEMBERSThe members of the University Senate in 2004 are listed below. The date in brackets at the end of eachentry indicates the year a person first becomes a member of the Senate; a second date indicates the year ofexpiry of the current term of office.CHANCELLORKenneth Comninos Michael AM, BE W.Aust., PhD Lond., DIC Imperial Coll. (Lond.),FTSE, Hon.FIEAust, FCIT, FAIM (1998) 2009APPOINTED BY THE GOVERNOR David Charles Griffiths BEc W.Aust., MEc A.N.U. (1996) 2008Anthony John Howarth AO (2003) 2007Gweneth June Jones BA W.Aust., MAPS, FAIM, FACE, FACEL, FWAIEA (1993) 2006Erica Lee Smyth BSc W.Aust. MSc(Applied) McG., FAICD (1996) 2006ELECTED BY CONVOCATION Suzanne Kay Baker BSc(Agric) PhD W.Aust. (2003) 2007Lesley Ann Cala MD W.Aust., DMRD RCP(Lond.) & RCS(Eng.), FRCR,FRACR (2000) 2006Catherine Luise Tang BA DipEd W.Aust., GradDipBus WACAE (1996) 2006ELECTED BY ACADEMIC STAFF Stuart Malcolm Bunt MA DPhil Oxon. (2000) 2008Cheryl Elizabeth Praeger AM, BSc Q’ld, MSc Q’ld & Oxon, DPhil Oxon,DSc W.Aust., Hon.DSc Prince of Songkla, FTICA, FAA, FAustMS (2002) 2006Terence Ivan Quickenden MSc N.Z., PhD Cant., FRACI, MNZIC (1994) 2007ELECTED BY GENERAL STAFF Gabrielle Elisabeth Gooding BSc(Hons) MBA W.Aust. (2001) 2005ELECTED BY STUDENTS Ryan Batchelor (2003) 2004MEMBERS EX OFFICIOThe Vice-Chancellor, Professor Alan Robson AM, BAgrSc Melb.PhD W.Aust. FTSE, FAIAS, Hackett Professor of AgricultureThe Chair of the Academic Board, Professor Dennis James Haskell BComN.S.W., BA PhD Syd. (2001) 2004The Warden of Convocation, Matthew Howard Zilko QC (2004) 2005The President of the Guild of Undergraduates, Susie Byers (2003) 2004The President of the Postgraduate Students’ Association,Natalie Mast (2003) 2005CO-OPTED MEMBERS Alex Allan BA Cantab., MSc Lond. (2002) July 2004John Langoulant BEc W.Aust. (August 2004) 2006Lyndon Geoffrey Rowe BEc Adel. (2000) 2008The Hon. Justice Christine Ann Wheeler BJuris LLB W.Aust., LLM Lond.(1996) 2006

APPENDIX BUNIVERSITYGOVERNANCESENATEUWA Act 1911VICE-CHANCELLORStatute No.10Senate committeesAcademic BoardStatute No.19EXECUTIVEDeputy Vice-ChancellorPro Vice-ChancellorsExecutive Director(Academic Services)and RegistrarExecutive Director(Finance and Resources)Vice-Chancellor’sadvisory committeesAcademic CouncilAcademic CouncilcommitteesDeansFacultiesStatute No.8Faculty committeesHeadsSchoolsSchool committeesAPPENDIX CEXECUTIVE MANAGEMENTSTRUCTUREVICE-CHANCELLORPro Vice-Chancellor(Academic)DeanUndergraduate StudiesDirectorAlbany CentreCo-ordinatorRegional ProgrammesPro Vice-Chancellor(Research and Innovation)DeanGraduate ResearchSchoolDirectorInstitute ofAdvanced StudiesDirectorOffice of Industryand InnovationInformationTechnology PolicyExecutive OfficerDeputyVICE-CHANCELLORVice-ChancellorDeans of Faculties*HeadSchool ofIndigenous StudiesDeanInternational RelationsInternal AuditorUniversity LibrarianDirectorLawrence WilsonArt GalleryDirectorPerth InternationalArts FestivalDirectorUWA ExtensionExecutive Director(Academic Services)and RegistrarDirectorAdministrative ServicesDirectorInternational CentreDirectorLegal ServicesDirectorOffice of DevelopmentDirectorPlanning ServicesDirectorPublic AffairsDirectorResearch ServicesExecutive Director(Finance and Resources)DirectorAdministrative ComputingServices /UniversityCommunication ServicesDirectorFinancial ServicesDirectorHuman ResourcesDirectorOffice of FacilitiesManagementDirectorUniversity ClubPrincipalCurrie HallDirectorUWA PressDirectorStudent Services* Deans of Faculties of:Architecture, Landscape and Visual ArtsArts, Humanities and Social SciencesEconomics and CommerceEducationEngineering, Computing and MathematicsLawLife and Physical SciencesMedicine and DentistryNatural and Agricultural SciencesCurator/DirectorBrendt Museumof AnthropologyHeads of Schoolsresponsible toDeans of FacultiesDirectorUniversity Secretariatpage 15

Planning and AccountabilityTHE UNIVERSITY’S planning process comprises fourclosely integrated phases: strategic planning,operational and management planning, budgetplanning, and performance monitoring.The University’s Cycle of Planning and Accountability document formally describes the planning, accountability,review and evaluation activities used by the University to ensure that plans are systematically developed, implementedand reviewed.The UWA Strategic Plan is at the peak of the planning process, setting the mission, the values, the broad strategicdirections and the primary goals and objectives that underpin all University activity and provide the framework fordecision making in the medium to long term. The UWA Academic Profile is the University’s strategic academic plan forthe decade to 2010.The Operational Priorities Plan (OPP) sits between the Strategic Plan and the various management plans referredto below. It provides a sharper focus to planning by selectively assigning priority to those areas which the Universitysees as being most crucial to improving quality and achieving its overriding goal of international excellence in theimmediate future. The OPP is structured around four themes: Internationalisation, Teaching and Learning, Research,and Resourcing and Management. The plan serves both as a quality improvement tool and a management tool, as eachpriority area is assigned specific targets and implementation responsibility. It is reviewed annually and fully revisedevery three years. The current OPP relates to the period 2003 to 2005.A series of management plans then take up these themes and priorities, and translate them into detailed operationalplans at the institution-wide level for the short to medium term, to give them operational substance in terms of specificpolicies, procedures, quality controls and resource decisions. The key management/operational plans are:• Research and Research Training Management Plan• Teaching and Learning Management Plan• Community Service Management Plan• Internationalisation Management Plan• Capital Asset Management Plan• Finance and Resource Plan• Equity Plan• Information Technology Strategy Plan• Equal Opportunity Management Plan• Human Resources Management Plan• Admission and Quota Policy/Enrolment Plan• Marketing Plan• Risk Management Plan• Record Keeping PlanEach of the faculties and major support divisions produces its own strategic and operational plans which identifyits academic priorities and associated objectives and strategies to meet them. All the above plans are taken into accountin the University Budget and in faculty and school budgets, through a mix of formulaic performance-based and plandrivendiscretionary budget mechanisms.The final phase of the planning cycle is performance monitoring and reporting. The University monitors itsperformance through a variety of means such as objective measurement using performance indicators (bothcomparative/cross-sectional and time series), formal reviews and evaluations, both internal and external, and externalreferencing and benchmarking. Major outcomes are reported externally in this Annual Report, are monitored by theCommonwealth Government through its new Institution Assessment Framework process and are considered by theAustralian Universities Quality Agency when it conducts an audit of the University; more detailed outcomes aremonitored internally in management reports, such as annual Teaching and Learning Performance Indicators reports, viaan online Executive Information System and through periodic reporting of review findings. The reporting of performanceis complemented by an extensive system of internal and external reviews.page 16

Risk ManagementThe University’s approach to riskmanagement has been not to treat it as aseparate identity but, like quality, toincorporate it into the current planningprocesses which include Strategic, Operationaland Management Plans underpinned by anannual Cycle of Planning and Accountability.To this end a University-wide riskmanagement policy and plan was introduced in2003, with information on these disseminatedthrough presentations at management forums andthe establishment of a dedicated web site. Also in 2003a risk identification survey was conducted, the results ofwhich were used to prepare for the major risks facing theUniversity.During 2004 units were requested to document andsubmit risk treatment plans. Information sought included:risks in priority order, possible treatment options, preferredoptions, risk rating after treatment, result of cost/benefitanalysis, person/s responsible for implementation of option,timetable for implementation and how this risk andtreatment option would be monitored.Many units demonstrated through their responses agood understanding and application of risk managementprinciples. Of note in recent times has been an increasedawareness by staff of the importance of involvement of LegalServices and Insurance in contractual arrangements onbehalf of the University. This has resulted in several contractsbeing successfully renegotiated to minimise the University’sexposure, particularly with hold harmless and jurisdictionclauses.The University has established a Risk ManagementAdvisory Committee to oversee the continuedimplementation of the Risk Management Plan. ThisCommittee has addressed issues of further education,sharing of best practices and reporting, particularly forthose units which had demonstrated that they wouldbenefit from a greater understanding and application ofrisk management principles.Other UWA risk management related activitiesduring 2004 included:• Update of the list of Statutes and responsiblestaff• Greater insurance and legal vetting ofUniversity contracts• Introduction of a comprehensive safetyaudit and inspection programme• Requirement of safety riskassessments as part of ResearchAcceptance of Offerspage 17

ResearchONE OF the most significant events of the 2004research calendar was the award of two AustralianResearch Council (ARC) Federation Fellowshipshosted at The University of Western Australia.Professor Leigh Simmons is an evolutionary biologist who was one of the successful candidates and has beenwith the School of Animal Biology (formerly the Department of Zoology) for almost a decade, which is evidence ofthe high quality international research undertaken at the University. The second Federation Fellow, ProfessorSteven Smith, has recently moved from the University of Edinburgh and will be a welcome addition to the UWASchool of Biochemical and Chemical Sciences in the area of plant and molecular biology. Professor Smith will beresearching metabolic and genetic approaches to the discovery of genes that direct carbon partitioning in plants,which ultimately determines crop productivity and quality for improved varieties.In 2004 the University was also successful in winning two ARC Research Networks designed to encouragecollaborative approaches to research in interdisciplinary settings. ARC Research Networks are platforms for generatingnew knowledge in areas that span traditional disciplinary boundaries and link researchers, research groups and othersinvolved in innovation; nationally and internationally. The ARC Research Networks hosted at UWA include a Network inEarly European Research (NEER) which focuses on enhancing Australian research into the culture and history of Europebetween the fifth and nineteenth centuries, and an Australian Research Alliance for Children and Youth (ARACY) FutureGeneration Network that concentrates on understanding the complexity of pathways contributing to the healthydevelopment of children and young people in modern societies like Australia, and on developing effective strategies toimprove them. Both networks were awarded a little over $1.6 million over five years.The 2004 ARC and NHMRC grant application rounds proved to be very successful for UWA with the amount ofARC funding for Discovery-Projects increasing by nearly 80 per cent to reach $13.7 million, with a similar 60 per centincrease in NHMRC Project funding totalling $15.6 million. Importantly, the University’s strategy to increase theamount of funding per grant was rewarded by an increase in the average ARC grant size from $248,000 to $360,000,so that researchers now have more flexibility to undertake their work while the University benefits by having moreof the actual costs of each project funded.This strong performance in winning Australian Competitive Grants by the University follows the significantincrease (20 per cent) in UWA’s total research income in 2003 compared with the previous year.The UWA Office of Industry and Innovation (OII) facilitated the commercialisation of the University’sresearch with 21 invention disclosures and nine licensing agreements negotiated in 2004. OII also had a role innegotiating a further 34 industry research contracts to a total value of $4.75 million. Following a review of theOII in 2004 it was recommended that a new project manager be employed to help facilitate links with businessand industry, and this will be a major focus in 2005.In 2004 the Institute of Advanced Studies (IAS) continued to make new partnerships and build adynamic space for exchanges at UWA. The core work included two programmes: Diversity Dialogues andHuman Rights and the Protection of Innocence. The Professor-at-Large scheme offered opportunities forcross-disciplinary research, and an ambitious two-week workshop on molecular biophysics run by a USteam of five led by Professor Klaus Schulten, attracted postgraduate students and other researchersfrom across Australia as well as Europe. The IAS hosted visits by numerous distinguished scholars in2004, welcomed 8000 visitors, participated in planning workshops for ARC Network bids (includingthe successful one in Early European Research), and hosted the visit of Professor Fotis Kafatos,Director-General of the European Molecular Biology Laboratory, in the service of potentialcollaborations and partnerships.page 19

BTeaching and LearningTHE UNIVERSITY’S teaching and learning activitiescontinue to respond to the challenges presentedby contemporary teaching practices, rapidly changingtechnology and diverse student learning needs.The breadth and quality of the University’s programmes are significant factors in attracting the best qualifiedstudents from within the State, from elsewhere in Australia, and from excellent international universities. TheUniversity’s philosophy for teaching and learning includes:• Creating an environment for staff and students which emphasises students and staff as partners in learning;• Providing a ‘high tech, high touch’ educational experience by combining the best features of newtechnologies with those of an interactive learning environment to meet the needs of a diverse student body;• Ensuring that teaching and learning take place in a culture of research and scholarship.A fundamental feature of UWA is its commitment to a nexus between teaching and research, meaning thatteaching is informed by knowledge gained from research, and from international research networks. The University iskeen to emphasise this nexus to future university teachers. An example is the University’s Teaching Internship Scheme,commended by the Australian Universities Quality Agency (AUQA), which selects postgraduate students to undertakea twelve-month programme to develop their teaching skills within their area of research. From the 2000 – 2003 cohorts(91 per cent response rate) over 92 per cent are continuing in academia and 89 per cent of that group have undertakenpage 20

further university teaching. It is intended that the Scheme be expanded in both 2005 and again in 2006 to encompass agreater number of doctoral students.One of the University’s teaching and learning priorities for the 2003 – 2005 triennium is to further improveflexible teaching and learning, including collaborative teaching and computer-assisted learning. In recent years theUniversity has extended its provision of undergraduate education with the establishment of the UWA Albany Centre,the Geraldton Universities Centre (a collaborative venture with Edith Cowan and Curtin Universities) and the RuralClinical School. The Albany and Geraldton initiatives have extended the University’s capacity for flexible delivery withthe innovative iLectures. The iLecture system means that audio and visuals from traditional face-to-face lectures areautomatically recorded and processed into a variety of formats which are available to students 24 hours a day, 7 days aweek. This has improved equity of access locally, regionally and internationally and, in line with the University’s ‘hightech, high touch’ ethos, is used to complement traditional face-to-face contact.During 2004 AUQA also specifically acknowledged, among its eighteen commendations for high qualitypractices at UWA, our programmes in support of Indigenous students, postgraduate students and off-shoreteaching in addition to commending the University’s strategies for attracting and retaining outstanding students.The University continues to attract the highest quality undergraduate students in the State, with over 80 per cent ofthe top five per cent of school-leavers enrolling in its programmes.The University’s graduate outcomes are also generally favourable compared with State and nationalaverages. The graduate destinations data produced by the Graduate Careers Council of Australia (GCCA) indicatethat UWA graduates outperform the State and national averages both in terms of full-time employment andprogression to higher study. This and other data showing a continuing strong performance in progress rates,completions, graduate satisfaction rates and student evaluations of teaching are detailed in the FinancialStatements and Performance Indicators section of this report.Another indicator of high quality is an independent 1 study of the international standing ofAustralian Universities, published in November 2004, which rated the quality of the undergraduateprogrammes of The University of Western Australia first in the nation, based on a composite index ofstudent–staff ratios, student progression rates, progression to higher study, and student evaluations.1Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, ‘The InternationalStanding of Australian Universities’, November 2004.page 21

Community RelationsBEYOND THE direct community benefit from allteaching and research activities, the University iscommitted to community service which enhancesthe student experience, engages the public andinvolves graduates.This commitment continued to be demonstrated through community outreach activities notably through theOffice of Development (Hackett Foundation), UWA Perth International Arts Festival, UWA Press, UWA Extension,Berndt Museum of Anthropology and the Lawrence Wilson Art Gallery.Other activities—for example through the Institute of Advanced Studies, University Theatres and PublicAffairs—continue to maintain and build vital links between academics, the wider University and the public. Eventssuch as the UWA Expo and Parents Welcome continue to grow in popularity with external audiences, providingvaluable opportunities to reach new groups and individuals within the community. In addition in 2004, we continuedto maintain direct contact with almost 50,000 graduates through our Uniview publication and held alumni functionsin Australia and abroad (Canada, Malaysia, Singapore and Hong Kong).Hackett Foundation • The Hackett Foundation—established six years ago to build the University’s ‘secondendowment’—continues to receive strong support from alumni, graduates and the wider community. To date theHackett Foundation, administered by UWA’s Office of Development, has received more than $24 million in donations,bequests and sponsorships, with a further $25 million in pledges. A range of fundraising programmes for specificprojects, foundations and scholarships have also met with success.Of note during the year was significant support particularly in areas of international philanthropy, alumnidevelopment, financial aid for students and support for faculty growth. Examples include a $22 million donation fromItaly’s Cassamarca Foundation to support Australian studies across nine Australian universities; the establishment ofa $25 million fundraising campaign for the Business School, which has already generated substantial promises offinancial support from the business community; and the continuing growth of the University’s bequest programme(currently in excess of $30 million).UWA Perth International Arts Festival • The 2004 UWA Perth International Arts Festival was an artistic,popular and financial success. The community engagement with the Festival proved very positive both from thepoint of view of the audience attendances and participation. Under the new Directorship of Ms Lindy Hume, theFestival has taken a four festival view aimed at enhancing programme development and planning. The inclusionof community programmes, the development of new work and more sophisticated partnerships with local artsorganisations continue to ensure the Festival remains an outstanding collaborative tradition within theWestern Australian community.UWA Press • UWA Press continued to gain accolades in 2004. Over 37,000 books bearing the UWA Pressimprint were sold across Australia, Europe and North America, and new books received manycomplimentary reviews in national and international publications. Furthermore, 2004 saw the work ofthe Press formally acknowledged in national awards. James Stirling: Admiral and Founding Governor ofWestern Australia by Pamela Statham-Drew was short-listed in both the prestigious NationalBiography Award and the WA Premier’s Award, while Mark Greenwood was awarded the WAPremier’s Award for Children’s Books for The Legend of Lasseter’s Reef, making him one of the fewcontinued overleafpage 23

authors to win the award in consecutive years. UWA Press also received acknowledgement in the history section of theWA Premier’s Award, which was won by John Dowson for his book Old Fremantle. In addition, Contested Country: AHistory of the Northcliffe Area of Western Australia by Patricia and Ian Crawford was awarded the Community andRegional History Award at the New South Wales Premier’s Award. The Long, Sticky Walk by Edel Wignell was named aCBC Notable Book 2004.UWA Extension • It was a year of consolidation for UWA Extension with good results in all programmes. A first forUWA Extension in 2004 was the organisation of a very successful Australian lecture tour by Germaine Greer. Eventswere organised in Perth, Adelaide, Melbourne, Canberra and Brisbane drawing capacity crowds. Other major speakersincluded John Pilger, Hugh MacKay and Andrew Wilkie. A profitable partnership between the School of Humanitiesand UWA Extension culminated in An Evening at the Court of Henry VIII with music, literary readings and special guestappearances in a packed dining hall at St George’s College.Berndt Museum of Anthropology • The key activity of the museum in 2004 was the preparation of the exhibitionOn Track: Contemporary Aboriginal Artists of Western Australia co-ordinated by the museum’s Curator/Director Dr JohnStanton. This was commissioned by the Premier for the State’s 175th Anniversary Celebration, and opened at theWestern Australian Museum in June. It continues to travel around the State with Art on the Move. The museum alsoreceived funding from the Aboriginal and Torres Strait Islander Service to develop an exhibition of historicalphotographs, to be accompanied by Indigenous oral histories, relating to the former Allowah Grove Settlement inPerth, which will open in mid-2005. The biannual newsletter Berndt News continued to be circulated to more than 700Indigenous communities throughout Australia and beyond; and the museum continued an active acquisitionprogramme, as well as loaning art works to the Art Gallery of New South Wales, among other institutions.Lawrence Wilson Art Gallery • Seven exhibitions were held at the Lawrence Wilson Art Gallery in 2004, with five ofthem initiated, researched and curated by the gallery staff. Ranging from Pri-mates: Lisa Roet, a show by an innovativeAustralian artist examining the relationships between humans and our closest cousins, to Clouded Over: Representationsof Clouds in Art, which addressed its theme through artworks from across three centuries, these exhibitions werecritical, scholarly and popular. Two exhibitions combined artworks from the extensive University of Western AustraliaArt Collection with others lent by major private and public collections from Western Australia and beyond. The galleryalso provided space and support for Dreaming the Dreaming: The Kurrir Kurrir Cycle from Warmun, an exhibition fromthe collection of the Berndt Museum of Anthropology, and for Bio-Difference: the Political Ecology, a show developed bystaff in the SymbioticA laboratory at The University of Western Australia. All exhibitions were accompanied by anextensive public programme of talks, lectures and tours by Gallery staff, UWA academics, visiting experts and voluntaryguides. A new chapter of the Friends of the Lawrence Wilson Art Gallery—Artique, aimed at young professionals andUWA alumni, was launched in early April.Public Affairs • In addition to strong ongoing promotion of the achievements of staff, students and alumnus to thecommunity at large, there has been an increased focus on relationships and interactions with business and industry.Special editorial supplements in business media and sponsored events—including partnerships with the Committeeof Economic Development of Australia, WA Business News, WA Media Club, Young Professionals Network, FutureLeaders Forum, Rotary Youth Leadership Awards and the National Young Leaders Day—have helped provide agreater understanding of the University’s role and value within the community. Increasing numbers of staff areproviding comment on issues of community interest and concern, with more than 600 individual staff members beingquoted or interviewed annually in the print and electronic media.University Theatres • In 2004 more than 231,000 people attended 548 events in venues managed by UniversityTheatres. The diverse array of events included dance, drama, music, comedy, public forums and exhibitions. Notableamong the year’s activities were the UWA Perth International Arts Festival events, three excellent seasons by the BlackSwan Theatre Company, sell-out performances of comedy featuring Wil Anderson, and an Oz Opera production of LaBoheme. Around 8000 people also attended the annual Antique Fair in Winthrop Hall. During the year UniversityTheatres increased its capacity to provide fine music performances through the purchase of the Shigeru piano featuredat the 2004 Sydney International Piano Competition. Also in 2004, STM magazine awarded the Somerville AuditoriumBest Cinema Experience and Best Outdoor Cinema. The Octagon Theatre was awarded Best Venue for Theatre and theStyleaid fashion show and dinner at Winthrop Hall was awarded Best Social Event.page 24

Staffing and Related MattersON STAFFING matters The University of WesternAustralia remains committed to ‘the recruitment,development and retention of the highest quality staff’to achieve its mission.This is supported by an employment philosophy of providing job security through ongoing employmentwhere possible. This has meant a low level of casual employment relative to the rest of the university sector and hasensured high quality fields for most employment vacancies. Within the higher education sector the University is awell-regarded employer as is documented through a range of survey data and awards over recent years.Personnel and Employment RelationsThroughout 2004 enterprise bargaining negotiations were a significant area of activity. Negotiations were carried outfor Academic, General, English as a Second Language (ESL) and Child Care staff. Replacement Academic and GeneralStaff Agreements were finalised at the end of 2004 and lodged with the Australian Industrial Relations Commissionon 22 December. Key outcomes for the University included more rigorous performance management provisions,alteration to the provisions for the clearing of long service leave, greater flexibility in superannuation and expandedparental leave arrangements. The negotiations of ESL and Child Care Agreements are yet to be finalised. The industrialimplications of the legislation introduced following the Nelson Report, as part of the Government’s reform agenda, hadnot yet been clarified at the end of 2004.The University of Western Australia continued to make a significant contribution on the national stageparticularly through its involvement in industrial matters with the Group of Eight (Go8) universities. The Go8 led thenegotiations for a conciliated agreement on settlement of the casuals case, components of which have been localisedand implemented through the enterprise bargaining process. Negotiations have commenced at the national levelwith respect to the Redundancy Test Case and the Go8 will again play a lead role in shaping these negotiations andoutcomes.Following the introduction in 2003 of a University-wide Risk Management policy and programme, major risksto the University have been assessed and risk treatment plans prepared. Significant safety incidents during 2004included a hydrogen gas laboratory explosion and two incidents of electrical shock. A safety induction video forcontractors was launched. There were 267 incidents and injuries reported with 82 accepted workers’ compensationclaims and a total of 238 lost work days. While the number of incidents was similar to 2003, lost time was almosthalved.After a comprehensive evaluation, the University’s Workforce Diversity Strategy, a proactive recruitmentcampaign to reach out and attract a more diverse range of employees, was further consolidated with theappointment of an Indigenous Employment Co-ordinator and implementation of a project in the Law School.The Equity and Diversity Office presented the findings of an analysis of gender equity data to seniormanagement across the University and anticipate this information will lead to local level strategies.University-wide collaborative projects during 2004 have included Physical Access and Way Findingto support the needs of staff, students and visitors on campus. The access and way finding needs of peoplewith a disability are a particular focus of this project.During 2004, the University advertised 353 job vacancies in print media and online. TheUniversity recorded 957 staff commencements (361 academic, 11 at executive level and 587 general)and a total of 615 staff left their positions. There were 86 applications for academic promotion,continued overleafpage 25

compared to 74 in the previous year, of which 64 were successful. A further 20 decisions wereoutstanding at the end of the year. Among the general staff there were 95 applications (60 per centfrom women) for promotion by reclassification, an increase of approximately 14 per cent on theprevious year. About two-thirds were based on standard job descriptions, introduced in 2003 tosimplify job classification. A mobility officer was appointed to expand career opportunities for generalstaff.Organisational and Staff DevelopmentThe University has a commitment to a high performance culture and a process of research and reviewunderpins its approach to organisational development. The results of the 2003 Working Life Survey,conducted three-yearly to assess the University’s organisational climate and provide information for humanresource planning purposes, were published. While there were high levels of job satisfaction, concerns aboutwork-life balance have emerged, particularly among academic staff. Implementation began of therecommendations from a major review of performance management concluded in 2003. A pilot commenced latein 2004 and revised processes will be in place in mid 2005. An Academic Portfolio is now a requirement foracademic tenure and promotion and will be used for performance management of academic staff by 2006. Areview of the University’s recruitment and retention practices is ongoing to ensure that it remains an employer ofchoice in an increasingly competitive international marketplace.Staff development services at the University continue to be highly regarded throughout the nation withsignificant international interest in our activities. Most staff development services are facilitated throughOrganisational and Staff Development Services (OSDS) comprised of the Centre for Staff Development (CSD), theEvaluation of Teaching Unit (ETU) and the Centre for Advancement of Teaching and Learning (CATL). Additionally,almost 1000 people attended safety training courses conducted by the Safety and Health Office and a further 1000participated in courses offered by the Equity and Diversity Office. Staff of the Equity and Diversity Office also deliveredlectures on diversity issues to approximately 2000 students.During 2004 over 2200 people attended CSD offerings. Successful programmes included LeadershipDevelopment for Women, A Fresh Look at Client Service, Project Management, and the Ally Project. A review of CSDprogrammes in 2003 provided a more strategic direction, particularly in relation to support for orientation andinduction, and leadership development. A new leadership programme for heads of school introduced in late 2004received positive support from participants. A successful two-day Leadership Development Residential Programmeheld in February, and the new publication, Leadership Matters, were other new leadership development initiatives.Further improvements to leadership support of UWA staff will continue in 2005 through new and modifiedprogrammes. Major improvements to induction and orientation, including a comprehensive web site, wereintroduced in 2004. Researcher and technical staff forums offering networking and examining development issuescommenced in 2004. Requests for on-site consultancy support have continued to increase in number andcomplexity.CATL was restructured early in 2004 to integrate a number of teaching and learning related services. Students’Unit Reflective Feedback (SURF), the new University-wide student evaluation of units questionnaire wasintroduced and jointly supported by CATL and the Institutional Research Unit; lunchtime topical teaching forums,titled TATL: Talking about Teaching and Learning, were also introduced by CATL. CATL support of UWAapplicants to the Australian Awards for University Teaching assisted with the favourable result of UWA finalistsin both individual and institutional categories at the national level. CATL also increased its support to thefaculty CATLysts and to those using WebCT in their teaching. Continued support for the implementation ofOutcomes-Based Education and the introduction of the Academic Conduct policy was provided and willcontinue into 2005. Increasing demand for the Teaching Internship Scheme for postgraduate students willalso result in a new programme titled Introduction to University Teaching in 2005.Organisational and Staff Development Services hosted a number of national and internationalvisitors and events throughout the course of the year, including the Australasian Society for Computersin Learning in Tertiary Education (ASCILITE) national conference in December. Staff also presented ata number of national conferences over the year. In 2004, the Leadership Development for Womenprogramme was introduced successfully into the WA Police Force, and a change managementproject at Guildford Grammar was commenced.page 27

Capital WorksTHE UNIVERSITY is currently undergoing a substantialCapital Development Programme of a scale similarto the 1960s development boom.The Molecular and Chemical Sciences building commenced on site 16 September 2002. The construction isdue for completion in January 2005.The University Club of Western Australia (previously referred to as the Riley Centre project) commencedconstruction on 16 June 2003, and is due for completion in February 2005.In 2002 it was agreed that the Small Animal Facility would be comprised of three components: a major facilityat Shenton Park for breeding, and laboratory facilities at QEII and Crawley Campus. The commencement of theShenton Park component was delayed by difficulties in getting Planning Approval, which was finally achieved inDecember 2004. These delays have caused an escalation in the estimated cost of the building to the amount of$3 million. Contract documentation is being prepared with the expectation that the building will be put to tender inFebruary 2005. As part of the requirements for the NHMRC funding, QEII M Block commenced in June 2004 to allowfor completion in June 2005. The Crawley Campus component will commence as soon as QEII is complete.In 2004, three new projects commenced that are partially funded from the Capital Works Programme. A newTennis Club House built at McGillivray, commenced in March and was completed in December 2004.A Water Sports Complex commenced in September 2004 and is due for completion in April 2005.A third swimming pool commenced construction in October 2004 and is due for completion by the end ofMarch 2005.Projects completed during 2004EXPENDITURETOTAL PROJECTPROJECT FOR 2004 ($M) COST ($M)Tennis Club 0.315 0.905 ($0.315M from Capital Works)Projects that were incomplete at 31 December 2004EXPENDITURETOTAL PROJECTPROJECT FOR 2004 ($M) COST ($M)The University Club of Western Australia 0.971 (from Capital Works) 21.000 ($5M from Capital Works)Molecular and Chemical Sciences Building 34.416 61.000Small Animal Facility 3.431 21.000 (includes $3M NHMRCGrant)Water Sports Complex 0.694 1.75 ($0.75M from CapitalWorks)Third Swimming Pool 1.048 2.362 ($1.072M fromCapital Works)page 29

Effect of Economic and Other FactorsEconomic factors were extremely positive for the University in 2004 as the potential risks originally identified for theyear, including concerns with the US economy, threats of terrorist activity and outbreaks of SARS-type epidemics, failedto eventuate, and there was strong global growth.Domestically the Australian economy provided continued expansion, with high business and consumerconfidence, low inflation, a strong Australian dollar and cash rates remaining unchanged at 5.25 per cent.The strong performance of the Australian financial markets generated significant investment returns for theUniversity. Both the University’s long-term investment pool and short-term investment pools exceeded performancetargets, returning a net return of 18.35 per cent and 11.65 per cent respectively. The University has continued to disinvestcommercial and industrial property holdings in Perth and the eastern seaboard, capitalising on strong capital growth inthe period since acquisition.The University’s growth in international full fee-paying student intakes has flattened, with the stronger Australiandollar in recent years generally having a slight dampening effect on the attractiveness of Australian university education tooverseas students. Offshore student course income has also been impacted by foreign exchange levels.Generally, the cost of University activities is expected to increase in line with inflation. Recent staff salary increaseshave continued at a rate greater than inflation and it is anticipated that higher salary costs will occur over the next fewyears as the University seeks to maintain competitive salary conditions with other Australian universities. The strongerAustralian dollar has reduced operational costs in certain areas such as the cost of purchasing overseas librarymaterials and scientific equipment purchases.Looking forward, current conditions indicate that continued world growth can be achieved with all majorinternational markets continuing the expansion phase. However, the rate of global growth, while likely to remainpositive, is expected to be more subdued. Globally there are still risks ahead with the US dollar generally predicted toremain low, with the US economy providing growth despite a number of weaker fundamentals. The US effect on globalgrowth will be dependent on the extent to which domestic growth in Europe and Japan is also achieved. China is animportant factor and their slower growth forecasts will potentially impact commodity prices and resource earnings.The rise in global oil prices may also have an adverse effect on global growth in 2005.The strong performance of the Australian equities market indicates a positive sentiment along with thesupportive economic impacts. Domestically the continued decline in the property sector, and the anticipated impact onconfidence, will influence economic conditions in 2005. Fund Managers are generally predicting a softening in returnswith investment markets estimated to return around six to eight per cent for 2005. The Australian dollar is expected tocontinue to remain at high levels for the majority of 2005.Changes with the new Higher Education Support Act (HESA) legislation have resulted in increased governmentfunding for the University. There is also increased flexibility allowing universities scope to set and charge fees with theUniversity setting student contributions at optimum levels for 2005. The University anticipates modest growth ininternational full fee-paying student intakes for the year.With the Federal coalition taking control of the Senate further sector reforms are anticipated that may affect theUniversity’s operations.The Impact of State LegislationIn 2004 the State Parliament passed the Acts Amendment (Prohibition of Human Cloning and Other Practices) Act2004 which bans certain types of medical research. The University has ensured its research complies with this Act.Record KeepingThe University is committed to good and compliant records management practices. In accordance with thiscommitment and the requirements of the State Records Act 2000, the University submitted its Record Keeping Planpage 30

(RKP) to the State Records Commission on 4 March 2004. The RKP was cleared on 3 June 2004 andwill be approved in 2005 pending the submission of a revised Records Disposal Authority for studentrecords. The year 2004 was dedicated to the development of an infrastructure that supports thereporting and compliance requirements of the State Records Act. This included the production of aStatement of Intent, a document which sets out a new vision for records management at the Universityand broadly identifies performance targets for the next three years, and also the development of acomprehensive three-year operational plan which details records management projects, expected dates ofcompletion and officers responsible. Future annual reporting on our record keeping system will be carriedout against this or a revised version of this plan.In accordance with the RKP, there has been an increased emphasis on staff training with a full trainingreview planned for 2005. Over 400 University staff were trained during 2004 (this figure includes technicaltraining as well as training in records management principles). To support this training, a number of AdviceSheets have been produced and are available to all staff via the Archives and Records web site. In addition,information relating to records management issues is now included on the University’s Staff Induction web site.A statement regarding each staff member’s record-keeping responsibilities has also been developed and isavailable to all staff. Other significant achievements during 2004 include the implementation of TRIM (TowerRecords and Information Management) Context, the development of an in-house record-keeping application forsections who do not yet have access to TRIM Context, the endorsement of the Faculty File Plan as the Universitystandard for classifying the files of academic areas, the submission of a records disposal authority for the PerthInternational Arts Festival and the incorporation of PIAF’s current records into the University’s central system.Media and Advertising ExpenditureIn accordance with Section 175ZE of the Electoral Act 1907 the University is required to report on details of media andadvertising expenditure incurred during the year in question. In 2004, the University spent $2,952,412.07 on these itemsincluding payments to the following organisations:94.5 Perth FM Radio96FMAdelaide Festival of ArtsAMA Services (WA) Pty LtdAusdanceAustralian Computer SocietyAustralian Trade Commission—AustradeAwesome ArtsB.D. Eye DesignBentley Porter Novelli Pty LtdBowtell Clarke & YoleBull Dog GraphicsBusiness NewsChil3Channel 9 Commercial ProductionChurchill Colour LaboratoriesCity of PerthCommunity NewspapersGood Guides GroupHis Majesty’s Theatre FoundationHorizon PRMIDP Education Australia LtdImage SourceIrish EcoLearning Information ServicesLinc Integrated Marketing & CommunicationMarketforce ProductionsMedia Decisions WAModus OperandiNational NewsNiche MediaNexus Group of CompaniesNova 93.7FMPBS Corporation Pty LtdPerth Jazz SocietyPost Newspapers Pty LtdProton Promotional AdvertisingQuality SignsQuickcut Pre Press Network Pty LtdRaylex (Australia) Pty LtdRed Dog MarketingRTR FMStar StructuresStick up PostersStroudgate Australasia Pty LtdSunday TimesSustainable ConsultingThe AustralianVivid Planet DesignWest Australian Newspapers LimitedWhat’s on this WeekWren Design GroupX-Press Magazinepage 31

Statistical ProfileTHE FOLLOWING tables provide statistics on studentenrolments and completions, and staffing levels.Some of the key features are described below.• The net enrolment of the University increased by 26.5 per cent from 1995 to 2004, with higher degree byresearch enrolments growing by 27.6 per cent and other postgraduate enrolments increasing by 103.2 per centover the same period (Table 1). Postgraduate enrolments represented 24.8 per cent of total enrolments in 2004compared with 19.5 per cent in 1995. Higher degree by research enrolments amounted to 10.5 per cent of the totalenrolments in 2004 compared with the same percentage in 1995.• The proportion of full-time students at the University has declined marginally from 1995 to 2004 (Table 2).• Female students comprised 50.1 per cent of net enrolments in 2004, compared with 48.8 per cent in 1995 (Table 2).They accounted for 50.9 per cent of higher degree by research enrolments and 43.8 per cent of other postgraduateenrolments in 2004 (Table 5).• The University has been diversifying its sources of funding (Tables 3 and 4). While domestic non-fee-paying(i.e. Research Training Scheme and operating grant) load continues to be the major proportion (78.8 per cent of thetotal student load), the load of domestic fee-paying students increased from 2.7 per cent to 4.4 per cent over the2000–2004 period and fee-paying international student load increased from 12.0 per cent to 16.5 per cent over thesame period.• Over two-thirds of the domestic fee-paying student load was in master’s coursework courses (Table 5).• The percentage of fee-paying international student load in higher degrees by research was 11.0 per cent as comparedwith an overall average of 10.3 per cent. Also, 19.1 per cent of fee-paying international student load was in otherpostgraduate courses as compared with an overall average of 9.1 per cent (Table 5).• The University’s student load exceeded the DEST undergraduate operating grant load target by 381 EFTSU (4.2 percent) and the postgraduate coursework operating grant target by 67 EFTSU (44.7 per cent) (Table 6).• Within the University, the Faculty of Economics and Commerce had the largest student load with 20.0 per cent ofthe University total (Tables 7 and 8), however the Faculty of Life and Physical Sciences had the largest higherdegree by research load with 21.0 per cent of the University’s total higher degree research load. The Faculty ofEducation had the highest proportion of load in higher degrees by research, 31.6 per cent, ahead of the Faculty ofNatural and Agricultural Sciences with 28.9 per cent of its load in higher degrees by research.• The numbers of degrees and awards conferred annually by the University has increased from 2889 in 1995 to4089 in 2004; an increase of 41.2 per cent (Table 9).• The overall staffing level of the University has increased by 16.2 per cent from 2000 to 2004 (Table 10). Over thisperiod, the total staff FTE in academic organisational units increased by 14.5 per cent. The net increase of 256staff FTE in academic organisational units comprised increases of 66 FTE teaching-and-research academicstaff, 47 FTE research-only academic staff, 41 FTE research-only non-academic staff and 102 FTE other nonacademicstaff. The overall staffing level in non-academic organisational units increased by 21.1 per centover the same period.• Female staff represented 49.7 per cent of the total staff FTE (excluding the FTE of casual staff) (Table 10).This contrasts with the 45.5 per cent recorded in 2000. However female staff FTE accounted for 64.0per cent of the non-academic staffing level in academic organisational units and 57.5 per cent of thestaffing level in non-academic organisational units.Further statistics are provided in the Performance Indicators section of this Annual Report.page 33

TABLE 1TOTAL STUDENT ENROLMENTS BY COURSE TYPE, 1995–2004Course Type 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004HIGHER DEGREE RESEARCHDoctorate 992 1,073 1,153 1,134 1,197 1,260 1,255 1,313 1,306 1,409Master’s Research 381 401 470 480 490 424 406 364 381 343Sub-total Higher Degree Research 1,373 1,474 1,623 1,614 1,687 1,684 1,661 1,677 1,687 1,752% Higher Degree Research 10.5% 10.8% 11.5% 11.4% 11.6% 11.5% 11.0% 10.8% 10.3% 10.5%OTHER POSTGRADUATEMaster’s Coursework 764 675 702 818 899 882 979 1,123 1,429 1,533Higher Degree Qualifying 81 69 51 45 44 42 33 46 38 27Graduate Diploma 321 468 498 422 386 387 413 454 546 524Graduate Certificate 4 41 36 46 150 154 201 247 284 268Postgraduate Cross-institutional 9 14 12 11 11 25Sub-total Other Postgraduate 1,170 1,253 1,287 1,331 1,488 1,479 1,638 1,881 2,308 2,377% Other Postgraduate 9.0% 9.2% 9.1% 9.4% 10.2% 10.1% 10.8% 12.1% 14.1% 14.3%UNDERGRADUATEGraduate Entry Bachelor’s 261 309 323 331 321 305 342 328 370 364Bachelor’s Honours 560 628 660 725 745 562 540 543 584 561Bachelor’s Pass 9,473 9,800 9,941 9,848 10,036 10,343 10,614 10,737 11,004 11,279Diploma 23 41 63 75 87 70 70 72 69Miscellaneous Enrolments 185 166 239 188 184 227 301 293 333 257Sub-total Undergraduate 10,479 10,926 11,204 11,155 11,361 11,524 11,867 11,971 12,363 12,530% Undergraduate 80.5% 80.0% 79.4% 79.1% 78.2% 78.5% 78.2% 77.1% 75.6% 75.2%GROSS ENROLMENTS 13,022 13,653 14,114 14,100 14,536 14,687 15,166 15,529 16,358 16,659Less Dual Enrolments 17 28 59 101 154 148 131 133 224 210NET ENROLMENTS 13,005 13,625 14,055 13,999 14,382 14,539 15,035 15,396 16,134 16,449Student enrolments by Course Type Group 1995–200418000170001600015000140001300012000110001000090008000700060005000400030002000100001995 1996 1997 1998 1999 2000 2001 2002 2003 2004UndergraduateOther postgraduateHigher degree researchpage 34

TABLE 2STUDENT ENROLMENTS BY ATTENDANCE TYPE AND SEX, 1995–20041995 1996 1997 1998 1999 2000 2001 2002 2003 2004FULL-TIMEMale 5,311 5,532 5,594 5,432 5,531 5,535 5,798 5,891 5,982 5,997Female 4,796 5,132 5,382 5,397 5,604 5,590 6,016 6,217 6,091 6,102Sub-total Full-time 10,107 10,664 10,976 10,829 11,135 11,125 11,814 12,108 12,073 12,099PART-TIMEMale 1,353 1,397 1,475 1,507 1,621 1,674 1,626 1,737 2,149 2,300Female 1,562 1,592 1,663 1,764 1,780 1,888 1,726 1,684 2,136 2,260Sub-total Part-time 2,915 2,989 3,138 3,271 3,401 3,562 3,352 3,421 4,285 4,560GROSS ENROLMENTSMale 6,664 6,929 7,069 6,939 7,152 7,209 7,424 7,628 8,131 8,297Female 6,358 6,724 7,045 7,161 7,384 7,478 7,742 7,901 8,227 8,362Sub-total 13,022 13,653 14,114 14,100 14,536 14,687 15,166 15,529 16,358 16,659Less Dual EnrolmentsMale 7 6 18 43 64 65 55 50 102 90Female 10 22 41 58 90 83 76 83 122 120Sub-total 17 28 59 101 154 148 131 133 224 210NET ENROLMENTSMale 6,657 6,923 7,051 6,896 7,088 7,144 7,369 7,578 8,029 8,207Female 6,348 6,702 7,004 7,103 7,294 7,395 7,666 7,818 8,105 8,242TOTAL 13,005 13,625 14,055 13,999 14,382 14,539 15,035 15,396 16,134 16,449% Full-time (a) 77.6% 78.1% 77.8% 76.8% 76.6% 75.7% 77.9% 78.0% 73.8% 72.6%% Female (b) 48.8% 49.2% 49.8% 50.7% 50.7% 50.9% 51.0% 50.8% 50.2% 50.1%(a)Full-time enrolments as a percentage of Gross Enrolments.(b)Female student enrolments as a percentage of Net Enrolments.Student enrolments by Attendance Type and Sex 1995–20041800016000Part-time female14000Part-time male1200010000Full-time female800060004000Full-time male200001995 1996 1997 1998 1999 2000 2001 2002 2003 2004page 35

TABLE 3STUDENT ENROLMENTS AND LOAD BY FUNDING SOURCE, 2000–20042000 2001 2002 2003 2004Funding Source Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSUDomestic Non-fee-paying Students 12,133 10,506.9 12,197 10,742.1 12,093 10,616.4 12,180 10,780.0 12,287 10,815.1Domestic Fee-paying Students 686 330.3 879 393.9 1,028 404.7 1,314 554.8 1,419 597.3International Fee-paying Students 1,779 1,492.7 2,020 1,664.1 2,348 1,894.3 2,793 2,205.4 2,882 2,269.5Time-limit and Non-award Students 89 60.1 70 46.1 60 43.5 71 51.4 71 46.7Total 14,687 12,390.0 15,166 12,846.3 15,529 12,958.9 16,358 13,591.5 16,659 13,728.5TABLE 4PERCENTAGE OF STUDENT ENROLMENTS AND LOAD BY FUNDING SOURCE, 2000–20042000 2001 2002 2003 2004Funding Source Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSUDomestic Non-fee-paying Students 82.6% 84.8% 80.4% 83.6% 77.9% 81.9% 74.5% 79.3% 73.8% 78.8%Domestic Fee-paying Students 4.7% 2.7% 5.8% 3.1% 6.6% 3.1% 8.0% 4.1% 8.5% 4.4%International Fee-paying Students 12.1% 12.0% 13.3% 13.0% 15.1% 14.6% 17.1% 16.2% 17.3% 16.5%Time-limit and Non-award Students 0.6% 0.5% 0.5% 0.4% 0.4% 0.3% 0.4% 0.4% 0.4% 0.3%Total (a) 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%(a)Discrepancies between the sums of component items and totals are due to rounding.TABLE 5STUDENT ENROLMENTS AND LOAD BY COURSE TYPE AND FUNDING SOURCE, 2004Domestic Domestic Onshore Offshore Time-limit and Total All Female StudentsNon-fee-paying Fee-paying International International Non-award Students (included in Total)Course Type Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSU Enrol EFTSUHIGHER DEGREERESEARCHDoctorate 1,112 948.6 2 1.0 163 159.1 96 62.3 36 25.8 1,409 1,196.6 683 578.0Master’s Research 285 169.1 29 28.6 29 19.7 343 217.4 208 126.8SUB-TOTALHigher Degree Research1,397 1,117.7 2 1.0 192 187.7 96 62.3 65 45.4 1,752 1,414.1 891 704.8% Higher Degree 11.4% 10.3% 0.1% 0.2% 9.0% 10.0% 12.8% 15.8% 91.5% 97.2% 10.5% 10.3% 10.7% 10.2%ResearchOTHER POSTGRADUATEMaster’s Coursework 19 12.8 925 422.5 214 168.5 375 181.9 1,533 785.7 664 348.6Higher Degree Qualifying 23 16.3 4 4.0 27 20.3 12 7.8Graduate Diploma 178 194.2 310 126.7 24 21.6 12 4.8 524 347.3 293 212.3Graduate Certificate 159 42.0 2 0.8 107 50.5 268 93.3 56 15.3PostgraduateCross-institutional 20 4.1 5 1.4 25 5.5 17 3.1SUB-TOTALOther Postgraduate 220 223.3 1,414 595.3 249 196.4 494 237.2 2,377 1,252.1 1,042 587.0% Other Postgraduate 1.8% 2.1% 99.6% 99.7% 11.7% 10.5% 65.9% 60.2% 14.3% 9.1% 12.5% 8.5%UNDERGRADUATEGraduate Entry Bachelor’s 329 247.1 35 26.9 364 274.0 205 158.1Bachelor’s Honours 497 420.8 64 58.2 561 479.0 329 278.8Bachelor’s Pass 9,700 8,740.3 1,420 1,310.7 159 94.3 11,279 10,145.3 5,703 5,101.6Diploma 66 21.4 3 1.1 69 22.5 45 14.0Enabling 36 32.2 36 32.2 32.2 17.4UndergraduateCross-institutional 42 12.4 169 94.7 1 0.1 212 107.2 123 63.5Bridging 3 1.0 3 1.0 2 0.9Non-award 6 1.2 6 1.2 5 1.1SUB-TOTALUndergraduate 10,670 9,474.1 3 1.0 1,691 1,491.6 160 94.4 6 1.2 12,530 11,062.3 6,429 5,635.4% Undergraduate 86.8% 87.6% 0.2% 0.2% 79.3% 79.5% 21.3% 24.0% 8.5% 2.6% 75.2% 80.6% 76.9% 81.4%TOTALENROLMENTS 12,287 10,815.1 1,419 597.3 2,132 1,875.7 750 393.8 71 46.7 16,659 13,728.5 8362 6,927.2page 36

TABLE 6ACTUAL FULL-YEAR LOAD AND DEST OPERATING GRANT TARGETS, 2002–20042002 2003 2004Postgraduate CourseworkActual Load 201 244 217Target 155 155 150Difference 46 89 67% Difference 29.7% 57.4% 44.7%Undergraduate (including enabling)Actual Load 9,225 9,383 9,406Target 8,850 8,915 9,025Difference 375 468 381% Difference 4.2% 5.2% 4.2%TOTALActual Load 9,426 9,627 9,623Target 9,005 9,070 9,175Difference 421 557 448TABLE 7STUDENT LOAD (EFTSU) BY FACULTY AND COURSE TYPE GROUP, 2004Higher Degree Master’s OtherResearch Coursework Postgraduate Undergraduate TotalArchitecture, Landscape and Visual Arts 24.0 0.0 0.0 550.8 574.7Arts, Humanities and Social Sciences 174.4 2.3 22.7 1,769.8 1,969.3Economics and Commerce 100.8 492.1 118.1 2,033.8 2,744.8Education 145.6 89.1 165.0 60.6 460.3Engineering, Computing and Mathematics 196.6 38.3 22.3 2,092.1 2,349.2Law 13.1 23.9 24.6 968.5 1,030.1Life and Physical Sciences 297.3 69.6 65.3 2,058.9 2,491.1Medicine and Dentistry 219.1 57.8 18.9 880.8 1,177.4Natural and Agricultural Sciences 241.0 10.7 16.4 567.1 835.2Other 1.5 1.8 12.9 80.2 96.4Total (a) 1,413.4 785.7 466.4 11,062.4 13,728.5(a)Discrepancies between the sums of component items and totals are due to rounding.page 37

TABLE 8FACULTY LOAD (EFTSU) AS A PERCENTAGE OF COURSE TYPE GROUP TOTAL, 2004Higher Degree Master’s OtherResearch Coursework Postgraduate Undergraduate TotalArchitecture, Landscape and Visual Arts 1.7% 0.0% 0.0% 5.0% 4.2%Arts, Humanities and Social Sciences 12.3% 0.3% 4.9% 16.0% 14.3%Economics and Commerce 7.1% 62.6% 25.3% 18.4% 20.0%Education 10.3% 11.3% 35.4% 0.5% 3.4%Engineering, Computing and Mathematics 13.9% 4.9% 4.8% 18.9% 17.1%Law 0.9% 3.0% 5.3% 8.8% 7.5%Life and Physical Sciences 21.0% 8.9% 14.0% 18.6% 18.1%Medicine and Dentistry 15.5% 7.4% 4.1% 8.0% 8.6%Natural and Agricultural Sciences 17.1% 1.4% 3.5% 5.1% 6.1%Other 0.1% 0.2% 2.8% 0.7% 0.7%Total (a) 100.0% 100.0% 100.0% 100.0% 100.0%(a)Discrepancies between the sums of component items and totals are due to rounding.Student Load by Faculty 2004Life and Physical Sciences 18.1%Law 7.5%Medicine and Dentistry 8.6%Natural and AgriculturalSciences 6.1%Engineering,Computing andMathematics17.1%Other 0.7%Architecture,Landscape andVisual Arts 4.2%Arts, Humanities andSocial Sciences 14.3%Education 3.4%Economics and Commerce 20.0%page 38

TABLE 9DEGREES AND AWARDS CONFERRED BY COURSE TYPE, 1995–20041995 1996 1997 1998 1999 2000 2001 2002 2003 2004HIGHER DEGREE RESEARCHHigher Doctorate 4 4 1 2 3 3 2 4 4Doctorate 100 140 147 175 164 160 160 179 213 226Master’s Research 63 64 73 58 75 56 61 85 52 73Sub-total Higher Degree Research 167 208 221 235 242 219 223 264 269 303OTHER POSTGRADUATEMaster’s Coursework 199 198 201 217 253 278 359 387 491 579Graduate Diploma 182 164 203 214 276 255 243 217 241 239Graduate Certificate 4 9 5 20 109 88 89 114 131 134Sub-total Other Postgraduate 385 371 409 451 638 621 691 718 863 952UNDERGRADUATEGraduate Entry Bachelor’s 54 66 84 100 92 93 88 130 100 128Bachelor’s Honours 580 523 606 679 720 729 762 798 755 903Bachelor’s Pass 1,703 1,589 1,491 1,604 1,650 1,563 1,555 1,708 1,673 1,781Diploma 2 4 8 15 16 18 22Sub-total Undergraduate 2,337 2,178 2,181 2,385 2,466 2,393 2,420 2,652 2,546 2,834TOTAL 2,889 2,757 2,811 3,071 3,346 3,233 3,334 3,634 3,678 4,089Degrees and Awards Conferred 1995–2004 Bachelor’s Pass Bachelor’s Honours Master’ Degree Graduate Diploma and Certificate Doctorates Graduate Entry Bachelor’s Diploma190018001700160015001400130012001100100090080070060050040030020010001995 1996 1997 1998 1999 2000 2001 2002 2003 2004page 39

TABLE 10STAFF FTE (a) BY MAJOR ORGANISATIONAL UNIT, 2000–20042000 2001 2002 2003 2004ACADEMICORGANISATIONAL UNITSACADEMIC STAFFTeaching and ResearchTotal 727.3 742.6 733.4 763.9 793.7% Female 23.9% 25.3% 26.2% 27.8% 28.5%Research OnlyTotal 302.0 290.9 314.0 311.1 349.2% Female 43.2% 43.2% 45.1% 47.3% 44.3%Total Academic StaffTotal 1,029.3 1,033.5 1,047.4 1,075.0 1,142.9% Female 29.6% 30.3% 31.9% 33.5% 33.3%DNON-ACADEMIC STAFFResearch OnlyTotal 182.3 208.4 197.8 216.4 223.5% Female 58.8% 64.3% 65.8% 65.2% 66.0%OtherTotal 562.1 558.1 621.0 649.4 663.6% Female 58.3% 57.6% 61.8% 62.9% 63.4%Total Non-Academic StaffTotal 744.3 766.5 818.8 865.9 887.1% Female 58.4% 59.4% 62.7% 63.5% 64.0%TOTAL ACADEMICORGANISATIONAL UNITSTotal 1,773.6 1,800.0 1,866.2 1,940.8 2,030.0% Female 41.7% 42.7% 45.4% 46.9% 46.7%NON-ACADEMICORGANISATIONAL UNITSTotal 628.9 647.0 693.2 703.9 761.9% Female 56.4% 55.3% 57.0% 57.3% 57.5%TOTAL UNIVERSITYTotal 2,402.5 2,447.0 2,559.4 2,644.7 2,791.9% Female 45.5% 46.1% 48.6% 49.7% 49.7%(a)Full-time equivalence of full-time and fractional full-time staff. Excludes full-time equivalence of casual staff.page 40

Financial StatementsCertification of Financial Statements ................................. 42Auditor General’s Report to Parliament............................. 43Statement of Financial Performance ................................. 44Statement of Financial Position ......................................... 45Statement of Cash Flows .................................................. 46Notes to the Financial Statements .................................... 47

THE UNIVERSITY OF WESTERN AUSTRALIAStatement of Financial Performancefor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’000Revenue from Ordinary ActivitiesCommonwealth Government Financial AssistanceCommonwealth Government Grants 2 206,868 194,546 206,868 194,546Higher Education Contribution SchemeStudent Contributions 9,953 8,969 9,953 8,969Commonwealth Payments 2 38,161 36,388 38,161 36,388Commonwealth Loan Programmes 2 3,721 2,383 3,721 2,383Western Australian and Local Government Financial Assistance 3 29,317 29,291 29,317 29,291Other Research Grants and Contracts 4 20,749 15,338 20,713 15,338Investment Income 5 69,415 39,683 67,811 39,638Fees and Charges 6 53,520 49,430 53,520 49,430Salary and Other Recoveries 7 16,253 20,634 16,263 20,636Other Revenue 8 26,618 27,267 25,863 25,887Share of Net Result of Associates and Joint Ventures 41, 42 30 (928) – –Total Revenue from Ordinary Activities 474,605 423,001 472,190 422,506Expenses from Ordinary ActivitiesEmployee Benefits 9 258,301 239,887 257,863 239,421Student Expenses 10 21,000 18,345 21,000 18,345Materials and Supplies 11 19,434 19,717 19,313 19,171Depreciation and Amortisation Expenses 12 24,116 29,619 23,814 28,861Repairs and Maintenance 13 11,247 11,071 11,215 11,020Grants to Affiliated Activities 14 20,833 15,822 20,883 15,822Travel Expenses 15 14,275 13,116 14,203 13,055Other Expenses 16 66,510 72,312 65,495 71,399Total Expenses from Ordinary Activities 435,716 419,889 433,786 417,094Net Operating Result 38,889 3,112 38,404 5,412Net Operating Result Attributableto Outside Equity Interest 424 677 – –Net Operating Result Attributable to Parent Entity 39,313 3,789 38,404 5,412Net Increase/(Decrease) in Asset Revaluation Reserve 34 21,359 15,567 21,359 15,567Net Initial Adjustments on Adoption of a NewAccounting Standard (AASB 1044—Provisions) – 1,659 – 1,659Total Revenues, Expenses and ValuationAdjustments Recognised Directly in Equity 21,359 17,226 21,359 17,226Total Changes in Equity other than thoseDirectly Resulting from Transactionswith Owners as Owners 60,672 21,015 59,763 22,638This Statement of Financial Performance should be read in conjunction with the accompanying notes.44

THE UNIVERSITY OF WESTERN AUSTRALIAStatement of Financial Positionas at 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’000Current AssetsCash Assets 21 31,154 53,930 30,947 53,406Inventories 22 627 518 627 461Receivables 23 23,036 18,760 22,880 18,362Other Assets 25 8,665 5,677 8,665 5,677Total Current Assets 63,482 78,885 63,119 77,906Non-current AssetsReceivables 23 557 404 557 404Restricted Investment Assets 24, 28 416,900 390,044 416,900 390,044Unrestricted Investment Assets 24 126,667 141,353 131,711 149,687Property, Plant and Equipment 26 710,261 634,285 710,261 633,388Intangible Assets 27 – 5,445 – –Total Non-current Assets 1,254,385 1,171,531 1,259,429 1,173,523Total Assets 1,317,867 1,250,416 1,322,548 1,251,429Current LiabilitiesPayables 29 2,977 3,862 2,889 3,638Interest Bearing Liabilities 30 – 106 – 17Non-interest Bearing Liabilities 31 57 77 57 77Provisions 32 32,500 25,834 32,488 25,804Other Liabilities 33 43,871 40,383 43,781 40,084Total Current Liabilities 79,405 70,262 79,215 69,620Non-current LiabilitiesInterest Bearing Liabilities 30 – 2,009 – 9Non-interest Bearing Liabilities 31 – 67 – –Provisions 32 29,654 27,884 29,654 27,884Total Non-current Liabilities 29,654 29,960 29,654 27,893Total Liabilities 109,059 100,222 108,869 97,513NET ASSETS 1,208,808 1,150,194 1,213,679 1,153,916EquityParent Entity InterestReserves 34 121,700 80,982 121,700 80,982Retained Profits 35 1,087,108 1,067,154 1,091,979 1,072,934Total Parent Entity Interest 1,208,808 1,148,136 1,213,679 1,153,916Outside Equity Interest 36 – 2,058 – –TOTAL EQUITY 1,208,808 1,150,194 1,213,679 1,153,916This Statement of Financial Position should be read in conjunction with the accompanying notes.45

THE UNIVERSITY OF WESTERN AUSTRALIAStatement of Cash Flowsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’000Cash Flows from Operating ActivitiesReceiptsCommonwealth Government Financial AssistanceTeaching and Learning 64,510 61,238 64,510 61,238HECS and Other Loan Programmes 38,918 38,934 38,918 38,934Scholarships 6,241 5,671 6,241 5,671DEST Research 53,779 56,178 53,779 56,178ARC grant—Discovery 10,942 9,670 10,942 9,670ARC grant—Linkages 7,874 5,273 7,874 5,273Other Commonwealth 57,599 55,229 57,599 55,229Western Australian and Local GovernmentFinancial Assistance 31,080 29,366 31,080 29,366HECS—Student payments 9,952 9,618 9,952 9,618Other Research Grants and Contracts 23,447 12,289 23,411 12,289Other Fees and Charges 54,291 50,229 53,941 50,124Consultancy and Other Grants 7,279 6,746 7,279 6,732Donations, Bequests and Sponsorships 5,072 7,286 5,072 7,285Investment Receipts 5,725 12,593 5,694 12,545Services, Sales and Salary Recoveries 20,560 25,418 20,562 24,875Other Receipts 3,559 8,118 2,795 8,115GST received from customers 13,469 11,267 13,537 11,190GST (Net) received from ATO 5,305 4,649 5,305 4,347PaymentsEmployee Benefits (247,541) (234,724) (247,233) (233,791)Suppliers (115,445) (119,343) (115,031) (118,688)Other Miscellaneous Payments (31,098) (20,231) (30,317) (20,216)GST paid to suppliers (18,487) (15,733) (18,503) (15,493)Net Cash Inflow/(Outflow) for Operating Activities 46 7,031 19,741 7,407 20,491Cash Flows from Investing ActivitiesReceiptsProceeds from Sale of Property 36,397 28,797 36,397 28,797Proceeds from Sale of Plant and Equipment 1,778 2,192 1,778 2,191Proceeds from Sale or Redemption of Investments and Shares 15,030 73,896 15,030 73,896Others (including loan repayments) 915 776 915 526PaymentsFunds Reinvested in Investment Portfolios – (73,280) – (73,280)Payments for Equipment, Artworks and Buildings (75,226) (40,138) (75,073) (38,882)Payments for Investment Property (2,898) (9,812) (2,625) (9,812)Payments for Library Books (6,218) (5,518) (6,218) (5,518)Other (including loan advances) (132) (897) (132) (897)Net Cash Inflow/(Outflow) for Investing Activities (30,354) (23,984) (29,928) (22,979)Cash Flows from Financing ActivitiesReceiptsProceeds from Borrowings and Advances 2,942 89 – –Proceeds from Issue of Shares – 171 – –PaymentsRepayment of Borrowings and Advances (10) (45) – –Net Cash Inflow/(Outflow) for Financing Activities 2,932 215 – –Net Increase/(Decrease) in Cash Held (20,391) (4,028) (22,521) (2,488)Cash at the Beginning of the Year 21 53,930 59,494 53,406 56,268Effects of exchange rate fluctuations on cashheld in foreign currencies 62 (374) 62 (374)Adjustment to Cash on Deconsolidation (2,447) (1,162) – –Cash at the End of the Year 21 31,154 53,930 30,947 53,406This Statement of Cash Flows should be read in conjunction with the accompanying notes.46

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004NoteContents1 Statement of Accounting PoliciesRevenue2 Commonwealth Government Financial Assistance including HECS andOther Commonwealth Loan Programmes3 Western Australian and Local Government Financial Assistance4 Other Research Grants and Contracts5 Investment Income6 Fees and Charges7 Salary and Other Recoveries8 Other Revenue from Ordinary ActivitiesExpenses9 Employee Benefits10 Student Expenses11 Materials and Supplies12 Depreciation and Amortisation Expenses13 Repairs and Maintenance14 Grants to Affiliated Activities15 Travel Expenses16 Other Expenses17 Net Profit/(Loss) on Disposal of Non-current Assets18 Remuneration of University’s Senate Members and Senior Officers19 Remuneration of Auditors20 Explanatory Statement of Significant Variations for University FundsAssets21 Cash Assets22 Inventories23 Receivables24 Investments25 Other Current Assets26 Property, Plant and Equipment27 Intangible Assets28 Restricted Investment AssetsLiabilities29 Payables30 Interest Bearing Liabilities31 Non-interest Bearing Liabilities32 Provisions33 Other LiabilitiesEquity34 Reserves35 Retained Profits36 Outside Equity Interests37 Commitments38 Contingent Assets and Liabilities39 Supplementary Financial Information40 Related Party Transactions41 Joint Venture Entities42 Associated Entities43 Controlled Entities44 Subsequent Events45 Segment Information46 Notes to the Statement of Cash Flows47 Financial Instruments48 Acquittal of Commonwealth Government Financial Assistance47

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting PoliciesThe following accounting policies have been adopted in the preparation of the University financial statements. Unless otherwisestated these policies are consistent with those adopted in the preceding year.(a)GeneralThe financial statements constitute a general purpose financial report which has been prepared in accordance with AustralianAccounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of the AustralianAccounting Standards Board and Urgent Issues Group (UIG) Consensus Views, as applied by the Treasurer’s Instructions.Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The FinancialAdministration and Audit Act 1985 and the Treasurer’s Instructions are legislative provisions governing the preparation offinancial statements and take precedence over Australian Accounting Standards, Statement of Accounting Concepts andother authoritative pronouncements of the Australian Accounting Standards Board and UIG Consensus Views. Themodifications are intended to fulfil the requirement of general application to the public sector, together with the need forgreater disclosure and accountability requirements.If any such modification has a material or significant financial effect upon the reported results, details of that modification andwhere practicable, the resulting financial effect, are disclosed in individual notes to these financial statements.Subject to the exceptions noted in these accounting policies, the financial statements have been prepared on the accrualbasis of accounting using the historical cost convention.(b)Principles of ConsolidationThe consolidated financial statements incorporate the assets and liabilities of all entities controlled by The University ofWestern Australia (‘University’) as at 31 December 2004 and the results of all controlled entities for the year then ended. Theterm ‘consolidated’ used throughout these financial statements means The University of Western Australia and its controlledentities. A list of controlled entities appears in the notes to these financial statements.The effects of all intra-group transactions in the economic entity are eliminated in full and the interests of outside equityholders separately disclosed. Where controlled entities are acquired or disposed during a year, their results are included onlyfrom the date of acquisition or to date of disposal. The accounting policies of consolidated entities are materially consistentwith the policies of the University, except where noted.Investments in associates are accounted for in the consolidated financial statements using the equity method. A list ofassociated entities appears in the notes to these financial statements.(c)UniversityThe term ‘University’ used throughout the financial statements means the revenue and expenditure from the general operatingactivities of the University. Revenue is derived principally from the annual government financial assistance for generalexpenditure and equipment, specific research funds, student fees and interest earned from the investment of cash balances.The University includes Currie Hall and the UWA Perth International Arts Festival operations.(d)Recognition of Revenue and ExpenditureThe recognition of revenue and expenditure is on an accruals basis in accordance with the definitions specified in theAustralian Accounting Standards and Statements of Accounting Concepts.(e)ReceivablesReceivables are recognised as amounts to be received in the future for goods or services provided on or before reporting dateor for any other amounts due to be recovered at reporting date. A provision for doubtful debts is recognised to the extent thatrecovery of outstanding debts is less than likely or significantly delayed.(f)PayablesPayables are recognised as amounts to be paid in the future for goods or services incurred on or before reporting date or anyother amounts owing at reporting date.48

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting Policies (continued)(g)Valuation of InvestmentsThe University’s investments are allocated into two investment pools, depending on the nature of the funds. Bequests, staffbenefit funds, capital reserves and other funds of a long-term nature are maintained within the long-term investment pool,while operating funds, research funds and other funds that require stability of income or shorter term cash requirements aremaintained within the short-term pool.Land and buildings within the investment portfolio are recorded at cost or donated value with the estimated market value atthe reporting date noted within the financial statements. Other investments which form part of the University’s investmentportfolio are valued at the market value applicable at reporting date. Unrealised gains or losses arising from changes in netmarket value are brought to account in the Statement of Financial Performance in the period in which they occur.Non-current investments are investments that have a maturity date in excess of one year or where the University plans to holdthe investment (or a similar replacement investment) for more than one year.(h)Valuation of Property, Plant and EquipmentSpecific non-current asset classes are subject to revaluation from time to time as shown in the financial statements.Revaluations are made with increments taken to asset revaluation reserves and decrements offset against previousincrements (if any) relating to the same class of assets. The balance (if any) is charged against the operating result as recordedin the Statement of Financial Performance.The consolidated entity has adopted Australian Accounting Standard AASB 1041 ‘Revaluation of Non-Current Assets’. Underthe transitional provisions of this standard, the following has been applied:• Artworks and Special Collections are measured on a fair value basis. It is considered that the value of each asset in theseclasses at the reporting date does not differ materially from the asset’s fair value at that date.• All Land and Buildings have been revalued to fair value as at 1 January 2004. It is considered that the value of each assetin these classes at the reporting date does not differ materially from the asset’s fair value at that date.• All other classes of property, plant and equipment are measured at cost.The valuation methodology employed for each asset class is:(i)(ii)(iii)(iv)(v)(vi)(vii)Freehold and leasehold land were independently valued during 2004 by Australian Valuation Partners based on the fairvalue of the land. Any subsequent acquisitions are recorded at cost until the next valuation.Institutional buildings were independently valued during 2004 by Australian Valuation Partners based on the fair value ofthe building. Any subsequent costs associated with the construction of completed buildings, alterations and/or thepurchase of buildings are recorded at cost until the next valuation.Work in progress on buildings represents the cost associated with the construction of buildings which have not reachedtheir date of practical completion and capitalised pre-acquisition costs on land and building acquisitions in progress.The University has not incurred any borrowing costs in relation to construction of buildings.Computer hardware, computer software, leasehold improvements, motor vehicles and other equipment and furniturecosting $5,000 or more are recorded at historical cost.Artwork was independently valued at market value by J. M. Lewis, Director of the Lister Calder Gallery (Christies’Western Australian Representative) and N. M. Ohrt, Managing Director of Perth Galleries Pty Ltd (Sotheby’s WesternAustralian Representative) during 2001. Any subsequent acquisitions are recorded at cost until the next valuation.As at 31 December 2004 a new category of property, plant and equipment was established being Special Collections.Within this category are all artefacts held by the Berndt Museum of Anthropology (previously disclosed within Artworks),special book collections (previously disclosed within Library Books) and the special music collection. Artefacts werevalued at market value by the Director and Curator of the Berndt Museum of Anthropology during 2001 and recognisedduring the 2003 year. Any subsequent artefact acquisitions and other assets within the class are recorded at cost.Library books are recorded at historical cost.Continued overleaf49

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting Policies (continued)(i)Valuation of Intangible AssetsDue to the difficulty in measuring the future realisable benefit arising from intangible assets, only purchased intangibles arerecognised at historical cost. Proceeds arising from the disposal of internally generated intangible assets are brought toaccount in the Statement of Financial Performance in the period in which the transaction occurs.(i)(ii)On acquisition of controlled entities, the excess of the fair value of the purchase consideration over the fair value ofidentifiable net assets acquired is recognised as goodwill. Purchased goodwill is amortised on a straight line basis overfive years, being the period to which the majority of benefits are expected to be derived.Any patents held by the University are expensed during the period in which the patents are registered by the University.(j)Leased AssetsFinance lease liabilities are allocated between current and non-current components in the Statement of Financial Position.Equal instalments of the operating lease payments are charged to the Statement of Financial Performance over the lease termas this is representative of the pattern of benefits to be derived from the leased property.(k)Recoverable Amount of Non-current AssetsWhere the carrying amount of a non-current asset is greater than its recoverable amount, the asset is written down to itsrecoverable amount. The decrement in the carrying amount is recognised as an expense in the net operating result in thereporting period in which the recoverable amount write-down occurs.(l)InventoriesInventories are valued at the lower of cost and net realisable value. Cost is assigned on a first-in first-out basis. Materialspurchased by Schools (equivalent) have been treated as expenditure in the accounts at the time of purchase.(m)Depreciation and Amortisation of Non-current AssetsThe depreciation rate policy is as follows:Asset Class• Leasehold Land• Freehold Land• Buildings• Leasehold Improvements• Computer Hardware• Computer Software• Other Equipment and Furniture• Motor Vehicles• Artworks• Special Collections• Library Books• Intangible AssetsDepreciation RateNot depreciatedNot depreciated2 per cent reducing balanceDepreciate over the term of the lease or estimated useful life of the improvement25 per cent straight line10 per cent straight line12.5 per cent straight line17.5 per cent straight line if held more than one yearNot depreciatedNot depreciatedDepreciated 100 per cent in the fourth year after acquisition20 per cent straight lineProfits and losses on disposal of non-current assets are included in the net operating result as recorded in the Statement ofFinancial Performance.(n)ReservesReserves are created and are retained for funding of specified items and/or initiatives in future years.(o)Employee Benefits(i)Wages, Salaries and Annual LeaveLiabilities for wages, salaries and annual leave are recognised and are measured as the amount unpaid at the reportingdate at expected nominal value in respect of employees’ services up to that date.50

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting Policies (continued)(ii)Long Service LeaveA liability for long service leave is recognised and is measured as the current value of expected future payments to bemade in respect of services provided by employees up to the reporting date. Consideration is given to expected futurewage and salary levels (including oncosts), based on statistical data related to employee departures and periods of service.(iii)Parental LeaveA liability for parental leave is recognised based on the University’s present obligation to make future parental leavepayments in respect of services provided by employees up to the reporting date. The current value of these futurepayments incorporates expected future wage and salary levels (including oncosts), based on statistical data related tohistorical employee parental leave and periods of service.(iv)SuperannuationThe University contributes to a number of employee funds that exist to provide benefits for employees and theirdependants on retirement, disability or death.(A) Defined Benefit Plan (DBP)/Investment Choice Plan (ICP):The employer contribution rate for 2004 was 14 per cent of salaries and represents an employer/employee contributionratio of 2:1. This plan was established 1 October 2000 and is administered by UniSuper Ltd.(B) Award Plus Plan (APP):The ‘Superannuation Guarantee Charge’ provides two levels of contribution rates, i.e. 3 per cent for members of othersuperannuation schemes and 9 per cent for staff not covered by other schemes. This plan was established 1 October2000 and is administered by UniSuper Ltd.(C) Supplementary Pension SchemeSupplementary pension benefits are provided for members of the 1963 and 1979 Superannuation Schemes which wereclosed to new entrants following the introduction of the Superannuation Scheme for Australian Universities in 1983(presently DBP, ICP and APP administered by UniSuper Ltd). Benefits are payable on the retirement of the member inthe form of a pension determined in accordance with the scheme’s rules. An independent review of this scheme in2004 indicated a deferred liability of $8,418,240. The current estimated net assets attributable to the scheme are$7,211,922, an estimated shortfall of $1,206,318. Approval has been received to fund the estimated shortfall fromUniversity reserves in the short term if required.(D) Supplementary Benefits SchemeThis scheme which closed in 1983 to new members provides for eligible staff to receive an additional lump sum onretirement. An actuarial assessment made in 2004 estimated the future liabilities at $4,869,261. This scheme is currentlyconsidered fully funded.(v)Other Employee BenefitsAll other benefits are recognised when the benefit is received by the employee and measured at the rates paid orpayable.(p)Restricted Grants and Bequest FundsRestricted grants and bequests received by the University are used to fund research activities, scholarships, prizes, lecturesand other activities specified by the contributing party. While these funds are included in the ‘University’ column as theUniversity has direct control over such funds, the grants and bequest funds are considered restricted assets as disclosed inthe notes to the financial statements.(q)Insurance and Provision for Workers’ Compensation InsuranceThe University has taken out appropriate cover through an appointed insurance broker for all relevant risks except for minorclaims which are expensed by the University at the time of the loss. There have been no other events during 2004 that havegiven rise to any other present obligation.Continued overleaf51

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting Policies (continued)(r)General Service FeesThe University collects fees from students to support the provision of services and amenities not of an academic nature forstudents.(s)Income TaxThe University is exempt from income tax in Australia.The University is an endorsed income tax exempt charity and is entitled to claim a refund of imputation credits received eitherdirectly as a shareholder or indirectly as a beneficiary of a trust.The University is considered to be a ‘charitable institution’ and accordingly is entitled to claim back such credits based on thetaxation year ended 30 June and has completed the claim to 30 June 2004. All imputation credits that have not yet beenclaimed back have been recognised as a receivable at the reporting date.The University is subject to foreign income tax for overseas operations, currently no income tax has been payable.(t)Goods and Services Tax (GST)The University (including Currie Hall and the UWA Perth International Arts Festival) and relevant controlled entities areregistered entities for the purposes of the Goods and Services Tax. It is considered that the operations of the University andcontrolled entities are compliant with the requirements of the legislation.The relevant Australian Business Numbers are as follows:University 37 882 817 280Integral Leadership Centre Ltd 72 077 837 935The University Club of Western Australia Pty Ltd 46 100 673 603(u)Fringe Benefits TaxThe University is liable to pay fringe benefits tax and is compliant with the requirements of the legislation.(v)Foreign Currency TransactionsForeign currency transactions are initially translated into Australian currency at the rate of exchange at the date of thetransaction. At the reporting date, amounts payable and receivable in foreign currencies are translated to Australian currencyat rates of exchange current at that date. Resulting exchange differences are recognised in determining the net operatingresult for the reporting period.(w)Financial Effects of Changes to Commonwealth Payment Arrangements for 2005 Grant YearPayment to the University in respect of programmes under the Higher Education Funding Act 1988 (‘HEFA’) were madefortnightly with the first payment of a grant year (equalling 8 per cent of recurrent grant funding) made at the end of Decemberof the previous year.The funding received in December 2003 in relation to the first instalment of 2004 was brought to account as income inadvance and consequently was recognised as income in 2004. This approach was adopted as the Operating Grant wasconsidered a reciprocal transfer for the purposes of the Australian Accounting Standard AASB 1004 and Statement ofAccounting Concept 4.Funding for most programmes under HEFA ended on 31 December 2004 and most new programmes under the HigherEducation Support Act 2003 (‘HESA’) commenced on 1 January 2005. The Department of Education, Science and Training(‘DEST’) announced changes to payment arrangements whereby all recurrent payments in respect of a grant year will bemade in that year and consequently for the 2005 grant year, the first payment was made in January 2005.The University received an advance payment in December 2004 for a proportion of the first payment due in 2005. Thisamount has been recorded as income in advance and will be recognised as income in 2005. Changes to the paymentarrangements have no effect on the University’s reported net operating results in the Statement of Financial Performance asthe recognition approach is consistent with prior years.52

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting Policies (continued)(x)International Financial Reporting StandardsThe Australian Accounting Standards Board (‘AASB’) has adopted the Australian equivalents to the International FinancialReporting Standards (‘IFRS’) for application to reporting periods beginning on or after 1 January 2005. The Urgent IssuesGroup has issued interpretations corresponding to the International Accounting Standards Board (‘IASB’) interpretationscreated by the International Financial Reporting Interpretations Committee. The adoption of Australian equivalents to IFRS willbe first reflected in the University’s financial statements for the year ending 31 December 2005.The University in complying with Australian equivalents to IFRS for the first time is required to restate the comparative financialstatements to amounts reflecting the application of IFRS to that comparative period. Most adjustments required on transitionto IFRS will be made, retrospectively, against opening retained earnings as at 1 January 2004.Management of the TransitionThe University has managed the transition to IFRS through a joint industry project and an individual University project.A joint Steering Committee and Working Party was formed with other Western Australian universities and other relevantentities for the period July 2003 to September 2004. Work performed as part of the joint project included an initial review ofAustralian equivalents to IFRS standards, identification of potential impact to universities and comparison to previous GAAPand other mandatory requirements.The University commenced an individual project in June 2003. A full review of each IFRS standard was undertaken todetermine specific University requirements for full implementation and completion of appropriate supporting documentationincluding technical staff training summaries, assessment of requirements and financial accounting policy was materiallycompleted during the 2004 year. Transition requirements including an Opening Balance Sheet as at 1 January 2004,Reconciliation of Equity as at 1 January 2004, financial accounting policy details and full working papers have been providedto the Office of the Auditor General for review.Major changes identified to date(i)RevenueRecognition of deferred revenue under the stages of completion method is required in relation to research grants,contracts and other funding.(ii)Property, Plant and EquipmentA review of the measurement basis for all property, plant and equipment classes has been undertaken. Under IFRS,deemed cost has been adopted on transition for all property, plant and equipment asset classes currently subject torevaluations as the current values are considered to be broadly comparable to fair value as at the transition date.Further, the recognition policy is amended to recognise all asset classes at cost.(iii)Investment PropertyThe IFRS standards introduce additional requirements in relation to investment properties. A full review of endowmentand bequest properties has been undertaken to determine appropriate disclosure as an investment property or as anasset within the land and building asset classes of property, plant and equipment. This has resulted in the reallocation ofcertain property holdings to property, plant and equipment where held for strategic or public purposes and propertyclassified as held for sale. Further, whereas currently endowment and bequest properties are recognised at cost (withmarket value included in the notes to the financial statements), under IFRS, the fair value model has been adopted forsubsequent measurement of investment property.(iv)Impairment of assetsThe University has identified appropriate impairment and reversal of impairment indicators and has brought to accountimpairment losses recognised on purchased goodwill and particular property holdings as at the IFRS transition date.53

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 20041. Statement of Accounting Policies (continued)(v)Employee benefitsVariation in measurement, recognition and disclosures of defined benefit plans while significant is anticipated to have alimited impact on the financial statements of the University due to the limited information available on the multi-employersuperannuation plans administered by UniSuper Ltd and the relatively small size of the University plans. Changes in themeasurement of the liability and disclosures is anticipated.(vi)Financial InstrumentsClassification of financial instruments is required to be undertaken to determine the relevant measurement andrecognition under IFRS. As the University currently records the majority of investment assets (excluding land andbuildings) at market value at each reporting date, changes in measurement and recognition requirements areanticipated to have limited impact on the financial statements of the University.(vii)Internally developed softwareInternally developed software is recorded as property, plant and equipment under current GAAP. Under IFRS, the assetclass is reclassified as intangible assets, and consequently is subject to changes in measurement, recognition anddisclosure requirements.(viii)Business combinationsThe IFRS measurement requirements in relation to controlled entities and the recognition of goodwill requires thereversal of accumulated amortisation of purchased goodwill and a review for impairment losses in relation to thegoodwill. An impairment loss has been brought to account for all purchased goodwill at the transition date.(ix)Retrospective adjustmentsCurrently the identification of prior year errors are brought to account in the reporting period in which the error isidentified. Changes in recognition requirements under IFRS results in the recognition of prior year error retrospectivelyresulting in either amendment to comparative reports at the transition date or potentially to comparative information infuture reporting periods.(y)Financial DisclosuresThe 2003 comparative figures have been amended for any material changes in classifications and presentation structure.DEST requirements for 2004 have resulted in additional disclosure within the Statement of Financial Performance andStatement of Cash Flows and comparative disclosure has been adjusted accordingly. During 2004, some endowment landsproperty previously recorded within Property, Plant and Equipment has been transferred to the investment category in theStatement of Financial Position.54

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’0002. Commonwealth Government Financial Assistance including HECSand Other Commonwealth Loan Programmes(a)(b)(c)(d)DEST—Teaching and LearningOperating Grant 48.1 62,842 60,991 62,842 60,991Teaching Hospitals 48.1 332 324 332 324Capital Development Pool 48.1 1,049 – 1,049 –Total DEST—Teaching and Learning 64,223 61,315 64,223 61,315HECS and Other Commonwealth LoanProgrammesHECS—Commonwealth payments 48.2 38,161 36,388 38,161 36,388Postgraduate Education Loan Scheme 48.2 3,697 2,385 3,697 2,385Bridging for Overseas TrainedProfessionals Loans Scheme 48.2 24 (2) 24 (2)Total HECS and Other CommonwealthLoan Programmes 41,882 38,771 41,882 38,771ScholarshipsAustralian Postgraduate Awards 48.3 4,680 4,686 4,680 4,686International Postgraduate ResearchScholarships 48.3 1,242 985 1,242 985Commonwealth Education CostsScholarships 48.3 98 – 98 –Commonwealth AccommodationScholarships 48.3 256 – 256 –Total Scholarships 6,276 5,671 6,276 5,671DEST ResearchInstitutional Grants Scheme 48.4 15,969 16,172 15,969 16,172Research Training Scheme 48.4 28,412 27,526 28,412 27,526Systemic Infrastructure Initiative 48.4 2,080 1,910 2,080 1,910Research Infrastructure Block Grants 48.4 12,420 10,325 12,420 10,325Total DEST Research 58,881 55,933 58,881 55,933Total DEST 171,262 161,690 171,262 161,690(e)Australian Research CouncilDiscoveryProjects 48.5 10,067 9,028 10,067 9,028Fellowships 48.5 564 1,046 564 1,046Federation Fellowships 48.5 311 – 311 –Indigenous Researchers Development 48.5 – 10 – 10Total Discovery 10,942 10,084 10,942 10,084LinkagesSpecial Research Initiatives 48.5 – 50 – 50Infrastructure 48.5 1,512 808 1,512 808International 48.5 158 178 158 178Projects 48.5 4,272 2,811 4,272 2,811Research Networks 48.5 335 – 335 –Centres 48.5 1,658 1,770 1,658 1,770Total Linkages 7,935 5,617 7,935 5,61755

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’000E2. Commonwealth Government Financial Assistance including HECSand Other Commonwealth Loan Programmes (continued)(f)Other Commonwealth Financial AssistanceNational Health and Medical Research Council 23,286 22,705 23,286 22,705Other Commonwealth Research Grants 22,368 19,461 22,368 19,461Other Commonwealth Grants 12,526 12,327 12,526 12,327Building Capital Grants 431 1,433 431 1,433Total Other Commonwealth Financial Assistance 58,611 55,926 58,611 55,926Total Commonwealth Government Financial Assistance 248,750 233,317 248,750 233,317ReconciliationCommonwealth Government Grants 206,868 194,546 206,868 194,546HECS—Commonwealth Payments 38,161 36,388 38,161 36,388Commonwealth Loan Programmes 3,721 2,383 3,721 2,383Total Commonwealth Government Financial Assistance 248,750 233,317 248,750 233,3173. Western Australian and Local Government Financial AssistanceResearch Grants 10,444 10,851 10,444 10,851Other Grants 18,873 18,440 18,873 18,440Total Western Australian and Local Government Financial Assistance 29,317 29,291 29,317 29,2914. Other Research Grants and ContractsInternational Research Grants and Contracts 6,619 4,610 6,619 4,610Research Bequests and Donations 1,041 379 1,041 379Industry Research Grants and Contracts 4,795 3,858 4,795 3,858Other Research Grants and Contracts 8,294 6,491 8,258 6,491Total Other Research Grants and Contracts 20,749 15,338 20,713 15,3385. Investment IncomeLong-term Investment PoolManaged Portfolios 37,334 21,133 37,334 21,133Less: Management Fees and Expenses (1,060) (864) (1,060) (864)36,274 20,269 36,274 20,269Less: Revenue Distributed to Affiliated Activities (592) (316) (592) (316)Total Long-term Investment Pool 35,682 19,953 35,682 19,953Short-term Investment PoolManaged Portfolios 17,256 9,335 17,256 9,335Other 2,661 3,696 2,661 3,69619,917 13,031 19,917 13,031Less: Management Fees and Expenses (285) (224) (285) (224)19,632 12,807 19,632 12,807Less: Revenue Distributed to Affiliated Activities (511) (47) (511) (47)Total Short-term Investment Pool 19,121 12,760 19,121 12,760Miscellaneous Investment Revenue 1,590 668 1,558 623Loss on Disposal of Shares in Controlled Entity (318) – (1,890) –Total Long- and Short-term Pools andMiscellaneous Investment Revenue 56,075 33,381 54,471 33,33656

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’0005. Investment Income (continued)Rental RevenueProperty Rental Revenue 8,468 11,774 8,468 11,774Less: Rental Expenses (4,384) (5,480) (4,384) (5,480)Total Rental Revenue 4,084 6,294 4,084 6,294Other Land and Property RevenueSales Proceeds 36,397 28,797 36,397 28,797Less: Cost Base of Property Sold (27,110) (27,004) (27,110) (27,004)9,287 1,793 9,287 1,793Less: Cost Base Acquired/Written Off (31) (1,785) (31) (1,785)Total Other Land and Property Revenue 9,256 8 9,256 8Total Investment Income 69,415 39,683 67,811 39,6386. Fees and ChargesCourse Fees and ChargesContinuing Education and Short Courses 6,969 6,566 6,969 6,566Course Charges Local Postgraduate Students 2,994 3,260 2,994 3,260Course Charges Overseas Award Courses 30,962 27,573 30,962 27,573Course Charges Offshore Student Courses 4,486 4,412 4,486 4,412Total Course Fees and Charges 45,411 41,811 45,411 41,811Other Fees and ChargesAmenities and Services Fees 1,465 1,412 1,465 1,412Student Accommodation 2,071 2,031 2,071 2,031Parking Fees 1,504 1,369 1,504 1,369Registration Fees 2,016 1,572 2,016 1,572Rental and Hire Charges 444 342 444 342Other 609 893 609 893Total Other Fees and Charges 8,109 7,619 8,109 7,619Total Fees and Charges 53,520 49,430 53,520 49,4307. Salary and Other RecoveriesSalary Recoveries 11,640 15,913 11,640 15,913Other Recoveries 4,613 4,721 4,623 4,723Total Salary and Other Recoveries 16,253 20,634 16,263 20,6368. Other Revenue from Ordinary ActivitiesSale of Goods and Services 6,213 6,533 5,843 5,417Proceeds from Disposal of Non-current Assets 17 1,912 2,169 1,912 2,168Performance and Production 2,808 2,200 2,808 2,200Consultancy 4,488 4,621 4,103 4,581Other General Grants 2,903 2,810 2,903 2,796Donations, Bequests and Sponsorships 4,443 4,131 4,443 4,131Royalties and Licences 885 160 885 160Other 2,966 4,643 2,966 4,434Total Other Revenue from Ordinary Activities 26,618 27,267 25,863 25,88757

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’0009. Employee BenefitsAcademicSalaries 107,077 99,213 107,077 99,213Superannuation—Funded 16,157 14,942 16,157 14,942Payroll Tax 7,146 6,950 7,146 6,950Workers’ Compensation 519 482 519 482Annual Leave Provision Expense (33) 31 (33) 31Long Service Leave Provision Expense 1,420 2,627 1,420 2,627Other Employee Benefits 6,660 6,046 6,660 6,046Total Academic 138,946 130,291 138,946 130,291Non-academicSalaries 93,974 87,245 93,612 86,859Superannuation—Funded 12,583 11,772 12,560 11,744Payroll Tax 5,971 5,740 5,945 5,715Workers’ Compensation 439 427 439 427Annual Leave Provision Expense 909 1,755 885 1,755Long Service Leave Provision Expense 2,463 744 2,463 744Other Employee Benefits 3,016 1,913 3,013 1,886Total Non-academic 119,355 109,596 118,917 109,130Total Employee Benefits 258,301 239,887 257,863 239,42110. Student ExpensesScholarships and Studentships 17,300 14,988 17,300 14,988Grants and Prizes 2,320 2,035 2,320 2,035Amenities and Services Expenses 1,380 1,322 1,380 1,322Total Student Expenses 21,000 18,345 21,000 18,34511. Materials and SuppliesLaboratory, Workshop and Medical Supplies 9,173 9,400 9,035 8,903General Office Expenses 6,344 6,981 6,344 6,955Other General Consumables and Supplies 3,917 3,336 3,934 3,313Total Materials and Supplies 19,434 19,717 19,313 19,17112. Depreciation and AmortisationComputer Equipment 2,596 3,224 2,584 3,221Other Equipment 8,110 11,918 8,033 11,837Motor Vehicles 884 893 884 884Library Books 4,268 5,108 4,268 5,108Buildings 8,013 7,773 8,013 7,773Leasehold Improvements 32 38 32 38Intangible Assets 213 665 – –Total Depreciation and Amortisation 24,116 29,619 23,814 28,86113. Repairs and MaintenanceBuilding Repairs and Maintenance 8,700 8,049 8,668 8,048Ground Maintenance 1,715 1,717 1,715 1,717General Repairs and Maintenance 832 1,305 832 1,255Total Repairs and Maintenance 11,247 11,071 11,215 11,02058

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00014. Grants to Affiliated ActivitiesMedical Related Research Grants 12,406 9,485 12,406 9,485Co-operative Research Centre 3,239 1,224 3,239 1,224Other Affiliated Activities 5,188 5,113 5,238 5,113Total Grants to Affiliated Activities 20,833 15,822 20,883 15,82215. Travel ExpensesInternational Travel 6,440 5,126 6,384 5,126Visitors 1,371 1,357 1,371 1,357Other Travel 6,464 6,633 6,448 6,572Total Travel Expenses 14,275 13,116 14,203 13,05516. Other ExpensesComputing Costs 2,884 4,063 2,884 4,063Books and Periodicals 1,298 3,451 1,298 3,451Utilities and Rates 6,528 6,193 6,528 6,099Professional Fees 8,474 7,781 8,452 7,643Supplementary Pension and Benefits 1,443 1,494 1,443 1,494Insurance 2,961 2,344 2,961 2,261Non-capital Equipment Purchases 6,993 8,475 6,993 8,476Carrying Value of Non-current Assets Disposed 17 2,436 3,138 2,436 3,132Performance and Production Costs 6,374 8,409 6,374 8,409Conference and Course Fees 2,211 2,215 2,226 2,162Rental, Hire and Leasing Fees 2,197 2,898 2,093 2,694Cleaning and Waste Disposal 2,322 2,310 2,318 2,310Advertising, Marketing and Promotional Expenses 2,098 2,049 2,098 2,030Bad and Doubtful Debts 376 807 444 731Borrowing Costs 78 224 – –Royalties and Commissions 2,815 2,089 2,815 2,089Vehicle Costs 901 493 901 493Exhibitions and Conference Costs 1,238 763 1,238 763Loss on Change in Interests in Controlled Entities 43 – – –General Consumables and Other Miscellaneous Expenses 12,840 13,116 11,993 13,099Total Other Expenses 66,510 72,312 65,495 71,39917. Net Profit/(Loss) on Disposal of Non-current AssetsProceeds from Disposal of Non-current AssetsComputer Hardware – 60 – 60Other Equipment 48 254 48 253Motor Vehicles 1,864 1,855 1,864 1,8551,912 2,169 1,912 2,168Carrying Amount of Non-current Assets DisposedComputer Hardware 54 106 54 102Other Equipment 386 742 386 740Motor Vehicles 1,996 2,290 1,996 2,2902,436 3,138 2,436 3,132Net Profit/(Loss) on Disposal of Non-current Assets (524) (969) (524) (964)59

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003$’000 $’000 $’000 $’00018. Remuneration of University’s Senate Members and Senior OfficersAll Senate members serve in an honorary capacity.Remuneration of Senate members quoted only reflectsremuneration (including salaries and other benefits) paid by theUniversity to the Vice-Chancellor and the five elected staffmembers.The total of fees, salaries, superannuation and other benefitsreceived or due and receivable by members of the Senate, theGoverning Body, for the financial year.1,321 966 1,321 966The remuneration to members of Senate includes theretirement package paid to the previous Vice-Chancellor whoretired on 1 February 2004.*The total fees, salaries, superannuation and other benefitsreceived or due and receivable by senior officers of theUniversity for the financial year.3,002 3,274 3,002 3,274The number of Senate members and senior officers whosetotal of fees, salaries, superannuation and other benefits(includes leave entitlement payout) received or due andreceivable for the financial year, falls within the following bands:SenateSenior Officersof the University of the University2004 2003 2004 2003$0,000–$9,999 – – 1 –$10,000–$19,999 – – 1 –$20,000–$29,999 – 1 – –$30,000–$39,999 1 – – –$40,000–$49,999 – – – 1$50,000–$59,999 – 1 – –$80,000–$89,999 – – – 2$90,000–$99,999 – 1 1 1$100,000–$109,999 2 – – 1$110,000–$119,999 – – 1 1$130,000–$139,999 – 1 1 1$140,000–$149,999 1 1 – –$150,000–$159,999 1 – – –$160,000–$169,999 – – 1 2$180,000–$189,999 – – 3 4$200,000–$209,999 – – 2 –$210,000–$219,999 – – 1 –$220,000–$229,999 – – 1 1$240,000–$249,999 – – 1 –$250,000–$259,999 – – 1 1$260,000–$269,999 – – 1 –$280,000–$289,999 – – – 1$290,000–$299,999 – – 1 –$320,000–$329,999 1 * – – 1$450,000–$459,999 1 – – –$460,000–$469,999 – – – 1$510,000–$519,999 – 1 – –19. Remuneration of AuditorsAudit Fees—Office of the Auditor General 144 122 144 122Audit Fees—Other 6 6 6 6Total Audit Fees 150 128 150 12860

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200420. Explanatory Statement of Significant Variations for University FundsThe University Senate approves the budget and allocations for the operations of the University. A comparison of actual performanceto budget for the financial year ended 31 December 2004 is presented below. The University revenue budget is based on currentDEST grants, student fees and expected rates of return on investments with specific purpose and restricted funds extrapolated fromthe previous year’s income levels. Currently the University’s budget procedure determines the expenditure budget figures as currentyear allocations, which can result in substantial variations in expenditure patterns between years. To increase comparability toreported actual expenditure, the expenditure budgets have been reduced by actual capitalised expenditure on plant and equipmentand adjusted for other accrual items such as depreciation charges, disposal of assets and provisions.The main variations between the 2004 budget and actual results were:Budget Actual VarianceREVENUE $M $M $M ExplanationCommonwealth Government 199.188 206.868 7.680 Increases in ARC and DEST researchGrantsgrants and over enrolment funding.Higher Education Contribution 46.846 48.114 1.268 Increase in student load together with anSchemeincrease in fees.Commonwealth Loan Programmes 2.904 3.721 0.817 Increased domestic fee-paying postgraduateenrolments and a higher number of studentsutilising the loan option.Western Australian and Local 31.850 29.317 (2.533) Funding was suspended for 2004 in theGovernment Financial AssistanceCentre for Remote and Rural Health andsome minor non-recurrent funding in theCentre for Water Research.Other Research Grants 17.300 20.713 3.413 Higher success rates in gaining new orand Contractsincreased national competitive grant funding.Investment Income 26.321 67.811 41.490 Significantly improved market performancehas resulted in higher net returns thananticipated.Fees and Charges 52.717 53.520 0.803 Growth in course fee income.Salary and Other Recoveries 19.500 16.263 (3.237) Reduction is due to full-year impact ofClinical and Academic dual employmentrelationship implemented in mid-2003.Other Revenue 26.827 25.863 (0.964) Minor budget variance.Total Revenue 423.453 472.190 48.737Budget Actual Variance ExplanationEXPENDITURE $M $M $MTeaching and Research 307.285 305.612 (1.673) Minor budget variance.Libraries 13.756 14.510 0.754 Minor budget variance.Student Services, Public 94.517 113.664 19.147 Increased spending on building maintenanceServices, Buildings andand University overheads to support growthGrounds, andin teaching and research activities.Administration andGeneral Institutional ServicesTotal Expenditure 415.558 433.786 18.22861

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004RESERVES Budget Actual Variance Explanation$M $M $MReserves (2.508) 19.359 21.867 Improved investment earnings enabled(excludes Asset Revaluation Reserve)significant transfer of investment income toreserves over budget.Capital Works 17.662 59.755 42.093 Significant increase in capital expenditure,primarily the Molecular Chemical Sciencesbuilding and the University Club.The main variations between the 2004 actual and 2003 actual results were:REVENUE Actual Actual Variance Explanation2004 2003$M $M $MCommonwealthGovernment Grants 206.868 194.546 12.322 Increased average value of research grantscombined with indexation increases andnew capital funding for the GeraldtonUniversities Centre.Higher Education 48.114 45.357 2.757 Increased indexation and a higher studentContribution Schemeload.Commonwealth Loan Programmes 3.721 2.383 1.338 Increased take up of loan schemes withincreased local fee-paying postgraduatestudents.Western Australian and Local 29.317 29.291 0.026 In 2003 the Oral Health Centre of WesternGovernment Financial AssistanceAustralia received increased funding dueto a shortfall from 2002. This reductionin 2004 has been offset by other increases.Other Research Grants 20.713 15.338 5.375 Increased national competitive grant fundingand Contractsincluding significant increases from NHMRCand GRDC, and other Commonwealthsources.Investment Income 67.811 39.638 28.173 Significant increase in investmentincome arising from continued improvementin market performance.Fees and Charges 53.520 49.430 4.090 Increase in overseas students togetherwith a change in mix of courses resulting inan increase in average course fee.Salary and Other Recoveries 16.263 20.636 (4.373) Reduction is due to full-year impact ofClinical and Academic dual employmentrelationship implemented in mid-2003.Other Revenue 25.863 25.887 (0.024) Minor variance.Total Revenue 472.190 422.506 49.68462

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004EXPENDITURE Actual Actual Variance Explanation2004 2003$M $M $MEmployee Benefits 257.863 239.421 18.442 Increase in the level of salary rates combinedwith increased staffing to support growth inoperational and research activity. In additiona provision for parental leave was providedfor the first time in 2004.Student Expenses 21.000 18.345 2.655 Increases in Australian Postgraduate Awardsand the introduction of CommonwealthAccommodation Scholarships.Materials and Supplies 19.313 19.171 0.142 Minor variance in general office expenses.Depreciation and 23.814 28.861 (5.047) During 2003 there were changes inAmortisation Expensedepreciation rates that resulted in an initialwrite off and accelerated charges.Repairs and Maintenance 11.215 11.020 0.195 Minor variances in repairs and maintenance.Grants to Affiliated Activities 20.883 15.822 5.061 Increased collaborative initiatives to medicaland agricultural research institutes.Travel Expenses 14.203 13.055 1.148 General increase in travel expenses.Other Expenses 65.495 71.399 (5.904) General reductions in expenditure oncomputing costs, books and periodicals,non-capital equipment and performance andproduction expenditure.Total Expenditure 433.786 417.094 16.692RESERVES Actual Actual Variance Explanation2004 2003$M $M $MReserves 19.359 2.431 16.928 Improvements in market performance have(excludes Asset Revaluationhad a positive impact on investment earningsReserve)resulting in a significant increase in reserves.Capital Works 59.755 20.774 38.981 Large capital outlays on Buildings andGrounds including the Molecular andChemical Sciences building and theUniversity Club.63

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003$’000 $’000 $’000 $’00021. Cash AssetsFor the purposes of the Statement of Cash Flows, cashincludes cash on hand, bank accounts, investments in shorttermmoney market instruments and bank overdraft facilities.Cash at the end of the financial year is reconciled to the relateditems in the Statement of Financial Position as follows:Cash at Bank 20,546 8,555 20,339 8,065Cash Held in Imprests 65 105 65 71Short-term Money Market 7,967 5,964 7,967 5,964Short-term Bills 2,576 39,306 2,576 39,306Total Cash Assets 31,154 53,930 30,947 53,406The cash assets bear interest rates of between 4.60% and5.38% (2003: 4.63% and 5.53%)22. InventoriesFinished Goods and ConsumablesBooks and Publications 349 311 349 311Other 199 166 199 109548 477 548 420Work in ProgressBooks and Publications 79 41 79 41Total Inventories 627 518 627 46123. ReceivablesCurrent AssetsGeneral Receivables 18,320 16,637 18,164 16,133Less: Provision for Doubtful Debts (824) (917) (824) (811)17,496 15,720 17,340 15,322Accrued Income 5,540 3,040 5,540 3,040Total Current Receivables 23,036 18,760 22,880 18,362Non-current AssetsGeneral Receivables 557 404 557 404Net Receivables 23,593 19,164 23,437 18,76664

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00024. InvestmentsThe University investments include a long-term investment poolfor funds of a long-term nature. Contributions to the fundsinclude the capital balances of the Hackett, Gledden, RaineBequests and other permanent bequests, Staff SupplementaryPensions Scheme, Staff Supplementary Benefits Scheme andthe Capital Reserves.The short-term investment pool comprises the working capitalof the University and is made up from unexpended grants andappropriations, student fees, external research funds, schoolspecial funds and cash proceeds from land sales.Managed Investment PortfoliosLong-term pool 219,417 200,858 219,417 200,858Short-term pool 178,644 162,266 178,644 162,266398,061 363,124 398,061 363,124EndowmentLand and Buildings (at cost and donated value) # 130,011 154,527 130,011 154,527OtherBequests—Land and Buildings (at cost and bequested value) # 1,693 1,694 1,693 1,694Bequests—Shares (at market value) 3,750 3,451 3,750 3,451Shares—Unlisted (at cost) 1,090 1,084 1,090 1,0846,533 6,229 6,533 6,229Unsecured Loan AdvancesUWA Sports and Recreation Association 705 705 705 705WA Institute of Medical Research 2,000 2,000 2,000 2,000Motorola 519 643 519 643University Co-op Bookshop – 8 – 8Winthrop Australia 11 16 11 163,235 3,372 3,235 3,372Investment in Joint Venture – 2,533 – –Investment in Controlled Entities – – – 10,867Investment in Associated Entities 3,913 – 8,957 –3,913 2,533 8,957 10,867Other Investments 1,814 1,612 1,814 1,612Total Investment Funds 543,567 531,397 548,611 539,731Restricted Investment Assets 28 416,900 390,044 416,900 390,044Unrestricted Investment Assets 126,667 141,353 131,711 149,687Total Investment Funds 543,567 531,397 548,611 539,731# Denotes the cost or bequested value of endowment andbequest land and buildings with an estimated market value of$241.1 million (2003: $249.8 million).65

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00025. Other Current AssetsPrepayments 8,665 5,677 8,665 5,677Total Other Current Assets 8,665 5,677 8,665 5,67726. Property, Plant and EquipmentLeasehold Land—at valuation in 2004 80,000 77,000 80,000 77,000Freehold Land—at valuation in 2004 26,881 21,437 26,881 21,437Total Land 106,881 98,437 106,881 98,437Buildings—at valuation in 2004 399,552 315,970 399,552 315,970Buildings—at cost 1,647 165,527 1,647 165,527Less: Accumulated depreciation (8,013) (96,563) (8,013) (96,563)393,186 384,934 393,186 384,934Buildings—work in progress 84,780 28,704 84,780 28,704Total Buildings 477,966 413,638 477,966 413,638Total Land and Buildings 584,847 512,075 584,847 512,075Leasehold Improvements—at cost 663 304 663 304Less: Accumulated depreciation (32) (38) (32) (38)Total Leasehold Improvements 631 266 631 266Computer Hardware—at cost 16,208 16,216 16,208 16,154Less: Accumulated depreciation (10,083) (10,154) (10,083) (10,128)6,125 6,062 6,125 6,026Computer Software—work in progress 7,306 2,627 7,306 2,282Total Computer Equipment 13,431 8,689 13,431 8,308Other Equipment and Furniture—at cost 86,139 78,540 86,139 77,973Less: Accumulated depreciation (50,669) (43,919) (50,669) (43,836)35,470 34,621 35,470 34,137Equipment—work in progress 19 4,001 19 4,001Total Other Equipment and Furniture 35,489 38,622 35,489 38,138Motor Vehicle—at cost 5,377 5,240 5,377 5,183Less: Accumulated depreciation (1,289) (752) (1,289) (727)Total Motor Vehicles 4,088 4,488 4,088 4,456ArtworksArtworks—at cost 356 188 356 188Artworks—at valuation in 1994 201 201 201 201Artworks—at valuation in 2001 20,729 20,729 20,729 20,729Total Artworks 21,286 21,118 21,286 21,118Library BooksBooks—at cost 22,192 16,631 22,192 16,631Less: Accumulated depreciation (9,376) (5,108) (9,376) (5,108)Total Library Books 12,816 11,523 12,816 11,523Special CollectionsSpecial Collections—at cost 424 255 424 255Special Collections—at valuation in 1995 1,183 1,183 1,183 1,183Special Collections—at valuation in 2003 36,066 36,066 36,066 36,066Total Special Collections 37,673 37,504 37,673 37,504Total Property, Plant and Equipment 710,261 634,285 710,261 633,38866

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00026. Property, Plant and Equipment (continued)ReconciliationsReconciliations of the carrying amounts of property, plantand equipment at the beginning and end of the currentand previous financial years are set out below:Land—at valuationCarrying amount at start of year 98,437 127,809 98,437 127,809Additions 244 1,438 244 1,438Disposals – – – –Revaluation increments 7,980 – 7,980 –Depreciation – – – –Transfer from (to) another class 220 – 220 –Transfer (to) investment assets – (30,810) – (30,810)Prior year reversals – – – –Carrying amount at end of year 106,881 98,437 106,881 98,437Buildings—at cost and valuationCarrying amount at start of year 384,934 391,816 384,934 391,816Additions 912 891 912 891Disposals – – – –Revaluation increments 13,051 – 13,051 –Depreciation (8,013) (7,773) (8,013) (7,773)Transfer from (to) another class 2,302 – 2,302 –Prior year reversals – – – –Carrying amount at end of year 393,186 384,934 393,186 384,934Buildings—work in progressCarrying amount at start of year 28,704 10,562 28,704 10,562Additions 58,599 18,446 58,599 18,446Disposals – – – –Revaluation increments – – – –Depreciation – – – –Transfer from (to) another class (2,523) (304) (2,523) (304)Prior year reversals – – – –Carrying amount at end of year 84,780 28,704 84,780 28,704Leasehold ImprovementsCarrying amount at start of year 266 – 266 –Additions 71 – 71 –Disposals – – – –Revaluation increments 326 – 326 –Depreciation (32) (38) (32) (38)Transfer from (to) another class – 304 – 304Prior year reversals – – – –Carrying amount at end of year 631 266 631 266Computer Hardware—at costCarrying amount at start of year 6,062 6,191 6,026 6,162Additions 2,747 3,110 2,747 3,087Disposals (54) (106) (54) (102)Revaluation increments – – – –Depreciation (2,596) (3,227) (2,584) (3,221)Transfer from (to) another class – 94 – 100Adjustment on dilution of holdings in controlled entities (24) – – –Prior year reversals (10) – (10) –Carrying amount at end of year 6,125 6,062 6,125 6,02667

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00026. Property, Plant and Equipment (continued)Computer Software—work in progressCarrying amount at start of year 2,627 110 2,282 –Additions 5,024 2,508 5,024 2,282Disposals – – – –Revaluation increments – – – –Depreciation – – – –Transfer from (to) another class – 9 – –Adjustment on dilution of holdings in controlled entities (345) – – –Prior year reversals – – – –Carrying amount at end of year 7,306 2,627 7,306 2,282Other Equipment and Furniture—at costCarrying amount at start of year 34,621 37,295 34,137 37,284Additions 5,406 6,811 5,406 6,254Disposals (386) (742) (386) (740)Revaluation increments – – – –Depreciation (8,110) (11,915) (8,033) (11,836)Transfer from (to) another class 4,375 3,172 4,375 3,175Adjustment on dilution of holdings in controlled entities (408) – – –Prior year reversals (29) – (29) –Carrying amount at end of year 35,470 34,621 35,470 34,137Equipment—work in progressCarrying amount at start of year 4,001 416 4,001 416Additions 393 6,860 393 6,860Disposals – – – –Revaluation increments – – – –Depreciation – – – –Transfer from (to) another class (4,375) (3,275) (4,375) (3,275)Prior year reversals – – – –Carrying amount at end of year 19 4,001 19 4,001Motor Vehicles—at costCarrying amount at start of year 4,488 4,387 4,456 4,347Additions 2,513 3,284 2,513 3,284Disposals (1,997) (2,290) (1,997) (2,290)Revaluation increments – – – –Depreciation (884) (893) (884) (885)Adjustment on dilution of holdings in controlled entities (32) – – –Prior year reversals – – – –Carrying amount at end of year 4,088 4,488 4,088 4,456Artworks—at cost and valuationCarrying amount at start of year 21,118 21,132 21,118 21,132Additions 168 124 168 124Disposals – – – –Revaluation increments – (138) – (138)Depreciation – – – –Transfer from (to) another class – – – _Prior year reversals – – – –Carrying amount at end of year 21,286 21,118 21,286 21,11868

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00026. Property, Plant and Equipment (continued)Special Collections—at cost and valuationCarrying amount at start of year 37,504 21,654 37,504 21,654Additions 169 145 169 145Disposals – – – –Revaluation increments – 15,705 – 15,705Depreciation – – – –Prior year reversals – – – –Carrying amount at end of year 37,673 37,504 37,673 37,504Library Books—at cost and valuationCarrying amount at start of year 11,523 13,600 11,523 13,600Additions 5,561 3,030 5,561 3,030Disposals – – – –Revaluation increments – – – –Depreciation (4,268) (5,107) (4,268) (5,107)Prior year reversals – – – –Carrying amount at end of year 12,816 11,523 12,816 11,523TotalCarrying amount at start of year 634,285 634,972 633,388 634,782Additions 81,806 46,647 81,806 45,841Disposals (2,437) (3,138) (2,437) (3,132)Revaluation increments 21,357 15,567 21,357 15,567Depreciation (23,903) (28,953) (23,814) (28,860)Transfer (to) investment assets – (30,810) – (30,810)Adjustment on dilution of holdings in controlled entities (808) – – –Prior year reversals (39) – (39) –Carrying amount at end of year 710,261 634,285 710,261 633,38827. Intangible AssetsIntellectual Property – 5,475 – –Trademark Costs – 33 – –Licence and Patent Costs – 839 – –Goodwill on Acquisition of Entities – 1,402 – –Less: Accumulated Amortisation – (2,304) – –Total Intangibles – 5,445 – –69

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00028. Restricted Investment AssetsA proportion of the University’s assets is restricted in nature, inthat the funds and/or assets are for a specific use or benefitonly. Restricted assets relate principally to bequests andprizes, research funds, staff benefits and investments on behalfof affiliated entities.Long-term PoolBequest Capital 59,967 53,380 59,967 53,380Specific Bequests 33,039 26,640 33,039 26,640Staff Benefit Funds 15,529 14,596 15,529 14,596Outside Funds 4,649 3,960 4,649 3,960113,184 98,576 113,184 98,576Short-term PoolBequest Operating 30,410 29,657 30,410 29,657Endowment Lands Portfolio 109,399 77,495 109,399 77,495Student Loan Funds 210 188 210 188Outside Funds 4,018 4,063 4,018 4,063Research Funds 22,293 18,755 22,293 18,755Prizes 257 214 257 214Other Funds 62 4 62 4166,649 130,376 166,649 130,376Restricted Investment Portfolio Funds 279,833 228,952 279,833 228,952Endowment Lands 130,011 154,527 130,011 154,527Bequests—Lands and Buildings 1,694 1,694 1,694 1,694Bequests—Shares and Units 3,751 3,451 3,751 3,451Bequests—Funds with Trustee 1,611 1,420 1,611 1,420Restricted Investment Other Assets 137,067 161,092 137,067 161,092Total Restricted Investment Assets 416,900 390,044 416,900 390,04429. PayablesCurrent LiabilitiesCreditors 2,977 3,862 2,889 3,638Total Payables 2,977 3,862 2,889 3,63830. Interest Bearing LiabilitiesCurrent LiabilitiesNet Hire Purchase Liability – 17 – 17Other – 89 – –– 106 – 17Non-current LiabilitiesNet Hire Purchase Liability – 9 – 9Convertible Notes – 2,000 – –– 2,009 – 9Total Interest Bearing Liabilities – 2,115 – 2631. Non-interest Bearing LiabilitiesCurrent LiabilitiesAdvances for Books and Publications 57 77 57 77Non-current LiabilitiesOther – 67 – –Total Non-interest Bearing Liabilities 57 144 57 7770

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00032. ProvisionsCurrent LiabilitiesAnnual and Long Service Leave 28,573 25,610 28,561 25,580Other 3,927 224 3,927 22432,500 25,834 32,488 25,804Non-current LiabilitiesSupplementary Pension and Benefits schemes 13,788 13,814 13,788 13,814Long Service Leave 15,866 14,070 15,866 14,07029,654 27,884 29,654 27,884Total Provisions 62,154 53,718 62,142 53,68833. Other LiabilitiesCurrent LiabilitiesAccrued Expenses 15,467 9,848 15,467 9,640Grants and Fees in AdvanceCommonwealth Government Financial Assistance 6,550 14,026 6,550 14,026Student Fees 3,490 3,557 3,490 3,557Research Income 4,293 2,102 4,293 2,102Other Charges 4,391 3,748 4,301 3,65718,724 23,433 18,634 23,342Funds Held for Affiliated ActivitiesStudent Guild 3,873 3,299 3,873 3,299Funds Held for Bequest Activities 4,318 2,427 4,318 2,427Other 1,489 1,376 1,489 1,3769,680 7,102 9,680 7,102Total Other Liabilities 43,871 40,383 43,781 40,08434. ReservesAsset Revaluation ReserveBalance 1 January 31,064 15,497 31,064 15,497Revaluations during the year 21,359 15,567 21,359 15,567Balance 31 December 52,423 31,064 52,423 31,064Total Asset Revaluation Reserves 52,423 31,064 52,423 31,064Capital ReserveBalance 1 January 30,419 36,099 30,419 36,099Transfer to accumulated funds (3,840) (10,279) (3,840) (10,279)Transfer from accumulated funds 14,073 4,599 14,073 4,599Balance 31 December 40,652 30,419 40,652 30,419Short-term Pool ReserveBalance 1 January 19,499 11,388 19,499 11,388Transfer to accumulated funds (2,316) – (2,316) –Transfer from accumulated funds 11,442 8,111 11,442 8,111Balance 31 December 28,625 19,499 28,625 19,499Total Other Reserves 69,277 49,918 69,277 49,918Total Reserves 121,700 80,982 121,700 80,98235. Retained ProfitsOpening Balance 1,067,154 1,064,069 1,072,934 1,068,294Net Profit (Loss) from Ordinary Activities 39,313 3,789 38,404 5,412Adjustment to OEI on Dilution of Holdings inControlled Entities – 68 – –Net Initial Adjustments on Adoption of a NewAccounting Standard (AASB 1044—Provisions) – 1,659 – 1,659Transfer from (to) reserves (19,359) (2,431) (19,359) (2,431)Total Retained Profits 1,087,108 1,067,154 1,091,979 1,072,93471

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003$’000 $’000 $’000 $’00036. Outside Equity InterestsOutside Equity Interests in Controlled Entities comprise:Issued Capital – 4,246 – –Retained Profits – (1,994) – –Adjustment to OEI in Retained Profits dueto changes in ownership during the year – (194) – –Reserves – – – –FTotal Outside Equity Interests – 2,058 – –37. Commitments(a)(b)Expenditure CommitmentsOutstanding commitments for general expenditure as at 31 December 2004 amounted to $5,631,146 (2003: $5,789,046).Capital CommitmentsExpected future expenditure on approved building projects or land/building acquisitions as at 31 December 2004:2004 2003$’000 $’000Not later than one year 37,949 45,530Later than one year but not later than five years 38,988 31,067Later than five years – –Total Estimated Future Expenditure on Approved Building Projects 76,937* 76,597** Includes estimated contracted capital commitments as follows:2004 2003$’000 $’000Not later than one year 19,609 35,080Later than one year but not later than five years 18,188 18,188Total Estimated Contracted Capital Commitments 37,797 53,268(c)Lease CommitmentsCommitments in relation to operating leases contracted for at the reporting date but not recognised as liabilities:2004 2003$’000 $’000Not later than one year 403 543Later than one year but not later than five years 426 515Later than five years – –Total Non-cancellable Operating Lease Commitments 829 1,05838. Contingent Assets and Liabilities(a)Contingent AssetsA contingent asset exists in relation to future donations and bequests either from funds bequeathed to the University by wayof a Will or funds intended to be donated to the University at some time in the future. In either case, the timing of any futureinflows of economic benefit cannot be reasonably determined. In addition to the uncertainty of timing of any future inflows, itis also possible that advised intentions may be altered which ultimately means that neither the amount, nor the likelihood offuture inflows can be guaranteed.A contingent asset exists in regard to future funding for Long Service Leave to be claimed from the National Health andMedical Research Council (NHMRC) in relation to staff funded from NHMRC grants commencing before the year ended 31December 2002. Research grants did not include any funds for long service leave and the University is able to requestrecovery in the year that the employee takes the long service leave. As the amount of reimbursement that the University willreceive is dependent upon the timing of the leave taken (which is uncertain) and the appropriate salary scales, the timing andvalue of the recovery cannot be reliably measured.72

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004The University also has a contingent asset relating to a theft of Intellectual Property and a compensation claim for shares in alisted company is pending. The extent and length of time to recovery of the claim is uncertain and thus the resultant value ofany future inflows of economic benefit cannot be reliably determined, until which stage the claim is finalised and known.A contingent asset exists in relation to the University’s interest in Advanced Nanotechnology Limited (formerly AdvancedPowder Technology Ltd). During 2004 the University sold shares in the company, the consideration for which was thecalculation of a Future Profit Share amount. The future potential asset is currently not measurable and the length of time torecovery is unknown.In December 2004 the University entered into a contract to purchase a nearby campus. As the agreement is pendingapplication to the Department of Planning and Infrastructure by both parties involved and subsequent approval, thelikelihood of future benefits cannot be guaranteed. The contingent asset is offset by a similar contingent liability.As at 31 December 2004 or at the date of this report, there are no other known contingent assets which are likely tomaterially affect the University’s financial position.(b)Contingent LiabilitiesThe University holds interests in Revenue Sharing Agreements between the University and other parties involved in thedevelopment of intellectual property in the future. As such intellectual property interests are still at the development stage,any future potential liability is currently not measurable.The University has a potential contingent liability in relation to a contract entered to purchase a nearby campus for which thefuture sacrifice of economic benefits cannot be guaranteed until application is made to Department of Planning andInfrastructure and approval is received by both parties. The contingent liability is offset by a similar contingent asset.As at 31 December 2004 or at the date of this report, there are no other known contingent liabilities which are likely tomaterially affect the University’s financial position.39. Supplementary Financial Information(a)General Receivables Written OffBad Debts approved by Senate that were written off during the year amounted to $382,599 (2003: $226,789).Losses Through Theft and DefaultWhere appropriate, reports were made to the police and insurance claims submitted where the value exceeded the excessliability on the University’s insurance policy. During the financial year ended 31 December 2004, losses of University propertywith a value of $10,965 (2003: $189,112) were not recovered from insurance.Other Write OffsOther write offs during the financial year were assets amounting to $205,549 (2003: $57,334) and stock amounting to $nil(2003: $89,347).(b)The UWA Perth International Arts FestivalThe operations of the UWA Perth International Arts Festival contribution to the net operating result of the University:2004 2003$’000 $’000Gross Revenue 9,551 11,000Expenditure (8,466) (10,751)Net Profit/(Loss) 1,085 24940. Related Party TransactionsThe University’s controlling interest in Advanced Nanotechnology Ltd (formerly Advanced Powder Technology Pty Ltd) ceased on30 June 2004, when the University’s ownership interest in Advanced Nanotechnology Ltd was reduced to an associate interestwith holdings of 40.1 per cent. Advanced Nanotechnology Ltd has a 50 per cent participating interest in the joint ventureAdvanced Nano Technologies Pty Ltd.During the six months ending 30 June 2004, the University has received income from Advanced Nano Technologies Pty Ltdtotalling $32,559.43 including GST (Full Year 2003: $48,090.05) and payments totalling $235.00 including GST (Full Year 2003:$21,024.65).73

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200441. Joint Venture EntitiesOwnership InterestName of Entity Principal Activity 2004 2003% %Advanced Nano Technologies Pty Ltd Powder Technologies – 50.0The University’s consolidated economic entity has a participating interest in the joint venture acquired by AdvancedNanotechnology Ltd (formerly Advanced Powder Technology Pty Ltd). The University’s ownership interest in AdvancedNanotechnology Ltd (formerly Advanced Powder Technology Pty Ltd) was reduced to 40.1 per cent on 30 June 2004, therebyceasing the control over the joint venture.The information below is for the year ended 30 June 2004:Consolidated2004 2003$’000 $’000Equity Accounted InvestmentBalance at the beginning of the financial year 3,172 4,309Adjustment to value due to change in ownership interest (3,172) –Share of joint venture profits (losses) for the financial year (1,137)Carrying amount of investments in the joint venture at the end of the financial year – 3,172Share of Assets and LiabilitiesCurrent Assets – 1,480Non-current Assets – 2,619Current Liabilities – (521)Non-current Liabilities – –Net Assets – 3,578Share of Operating ResultOperating Revenue – 556Operating Expenses – (1,693)Operating Result – (1,137)Share of CommitmentsLease Commitments – 85Capital Commitments – 54Total Commitments – 13974

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200442. Associated EntitiesOwnership Interest Investment Share ofAssociated Entities Country of Carrying Profits EquityIncorporation Amount Method2004 2003 2004 2004% % $’000 $’000Advanced Nanotechnology Australia 40.1 70.0 3,913 –Ltd (formerly Advanced PowderTechnology Pty Ltd)Vitrostone Ltd Australia 29.4 49.5 – –Media Farm Pty Ltd Australia 38.0 38.0l – –Acquisition of Associated EntititesAssociated Entities Principal Date of Percentage Cost ofActivity Acquisition Held Acquisition$’000Advanced Nanotechnology Development of Powder 17 April 2000 40.1 –Ltd (formerly Advanced Technologies (associate fromPowder Technology Pty Ltd) 1 July 2004)Consolidated2004 2003$’000 $’000Equity Accounted InvestmentBalance at the beginning of the financial year – –Carrying value of investment prior to the change in status to Associated Entity 5,930 –Adjustment to the carrying value to reflect the change in status toAssociated Entity (2,047) –Share of associate result for the financial year 30 _Carrying amount of investments in associates at the end of the financial year 3,913 –Share of Assets and LiabilitiesCurrent Assets 1,120 399Non-current Assets 3,265 367Current Liabilities (311) (315)Non-current Liabilities (342) (797)Net Assets 3,732 (346)75

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200443. Controlled EntitiesControlled Entities Country of Class Ownership Interest PrincipalIncorporation of 2004 2003 ActivitiesShares % %Integral Leadership Centre Ltd Australia Ordinary 100 100 Provision ofExecutiveManagementProgrammesThe University Club of Western Australia Ordinary 100 100 Events andAustralia Pty LtdFunctionCentreControlled Entities Net Equity Total Revenue Operating Result2004 2003 2004 2003 2004 2003$’000 $’000 $’000 $’000 $’000 $’000Integral Leadership Centre Ltd 174 25 472 40 149 25The University Club of Western – – – – – –Australia Pty LtdLoss of Controlled EntitiesDate of Percentage PercentageControlled Entities Details Loss of of Shares of SharesControl After Loss Held 2003of ControlAdvanced Nanotechnology Additional share 30 June 2004 40.1 70.0Ltd (formerly Advanced issues during 2004Powder Technology Ptytogether with a sale ofLtd)UWA shares resultingin a dilution of the UWAholding to non-controllinginterestParadigm Diagnostics Ltd Total UWA shareholding 9 December 2004 – 72.3divested during 200444. Subsequent EventsThe University’s Enterprise Bargaining Agreement was being renegotiated in late December 2004 and was finalised in January 2005.As this event provides additional evidence of conditions existing at the reporting date, the event must be reflected in the financialstatements. A provision has now been established for primary care givers that are eligible for parental leave.A legal claim brought against the University by a former affiliate was settled on 21 February 2005. As this event provides additionalevidence about a condition that existed at the reporting date this has been reflected in the financial statements. A provision hasbeen included for the settlement amount resulting from the claim.45. Segment InformationThe University operates within one industry segment (education) and revenue is predominantly earned within Australia. Therefore, nosegment information has been reported.76

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 2004ConsolidatedUniversity2004 2003 2004 2003Note $’000 $’000 $’000 $’00046. Notes to the Statement of Cash FlowsReconciliation of Net Operating Result to Net CashInflow from Operating ActivitiesNet Operating Result 38,889 3,112 38,404 5,412Adjustment: Non-cash ItemsDepreciation and Amortisation 24,116 29,619 23,814 28,861Provision for Doubtful Debts 342 1,108 342 1,002Provision for Leave Entitlements,Taxation and Other Provisions 8,507 5,029 8,481 5,017Provision for Superannuation (26) (60) (26) (60)Asset Adjustments—Funds Held by Trustees (192) (39) (192) (39)Asset Adjustments—Shares (372) (366) (372) (366)Asset Adjustments—Land and Buildings 10 2,503 10 2,503Asset Adjustments—Investments (49,734) (28,231) (49,895) (28,231)Unrealised Foreign Exchange (Gain)/Loss (110) 374 (110) 374Loss on Sale of Equipment 518 964 518 964Profit on Sale of Investments (9,257) (1,793) (9,257) (1,793)Donation of Artworks and Equipment (136) (97) (136) (97)Share of Net Result of Associates (30) 928 – –Profit/Loss on Change in Interests in ControlledEntities 482 – 1,939 –Miscellaneous 95 (387) 95 74Changes in Assets and Liabilities(Increase)/Decrease in Receivables (4,616) 395 (4,818) 860(Increase)/Decrease in Prepayments (576) 1,994 (577) 1,999(Increase)/Decrease in Inventories (334) (105) (232) (105)Increase/(Decrease) in Payables 3,333 3,250 3,297 2,732Increase/(Decrease) in Grants andFees in Advance (5,791) (1,546) (5,791) (1,705)Increase/(Decrease) in Funds Held forAffiliated Activities 1,913 3,089 1,913 3,089Net Cash Inflow from Operating Activities 7,031 19,741 7,407 20,49147. Financial Instruments(a)Credit Risk ExposuresThe credit risk of financial assets which have been recognised on the Statement of Financial Position, other than investments inshares, is generally the carrying amount, net of any provisions for doubtful debts.Bills of exchange which have been purchased at a discount to face value are carried on the Statement of Financial Position at anamount less than the amount realisable at maturity.(b)Interest Rate Risk ExposuresExposures arise predominantly from assets and liabilities bearing variable interest rates as the University intends to hold fixed rateassets and liabilities to maturity whenever possible.77

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200447. Financial Instruments (continued)2004 Consolidated Floating Fixed Interest Maturing/Repricing in: Non- ConsolidatedInterest 1 year over 1 year more than interest 2004Rate or less to 5 years 5 years Bearing TotalNote $’000 $’000 $’000 $’000 $’000 $’000Financial AssetsCash and Deposits 21 28,513 2,576 – – 65 31,154Receivables 23 – – – – 23,593 23,593Investment—Shares 24 – – – – 8,753 8,753Investment—Unit Trust/Deposits 24 203 – – – 1,611 1,814Unsecured Loan Advances 24 – 138 1,097 – 2,000 3,235Investment—Managed Portfolio: 24Government Bonds – 3,855 6,034 4,190 – 14,079Bank Bills/Corporate Bonds 5,823 – 1,770 325 – 7,918Money Market Account 38,978 – – – – 38,978Convertible/Exchangeable Notes – – – – – –Shares/Units – – – – 337,086 337,08644,801 3,855 7,804 4,515 337,086 398,061Total Financial Assets 73,517 6,569 8,901 4,515 373,108 466,610Weighted Average Interest Rate 5.29% 6.05% 6.99% 5.10%Financial LiabilitiesTrade and Other Creditors 29 – – – – 2,977 2,977Accrued Expenses 33 – – – – 15,467 15,467Borrowings 31 – – – – 57 57Funds Held for Affiliated Activities 33 – 5,689 – 3,991 – 9,680Total Financial Liabilities – 5,689 – 3,991 18,501 28,181Weighted Average Interest Rate 0.00% 4.00% 0.00% 17.40%Net Financial Assets 73,517 880 8,901 524 354,607 438,4292003 Consolidated Floating Fixed Interest Maturing/Repricing in: Non- ConsolidatedInterest 1 year over 1 year more than interest 2003Rate or less to 5 years 5 years Bearing TotalNote $’000 $’000 $’000 $’000 $’000 $’000Financial AssetsCash and Deposits 21 14,542 39,306 – – 82 53,930Receivables 23 – – – – 19,164 19,164Investment—Shares 24 – – – – 7,068 7,068Investment—Unit Trust/Deposits 24 193 – – – 1,421 1,614Unsecured Loan Advances 24 – 136 1,236 – 2,000 3,372Investment—Managed Portfolios: 24Government Bonds – 644 8,946 3,846 – 13,436Bank Bills/Corporate Bonds 4,436 94 1,631 1,144 – 7,305Money Market Account 30,922 34 – – – 30,956Convertible/Exchangeable Notes – – – – – –Shares – – – – 311,427 311,42735,358 772 10,577 4,990 311,427 363,124Total Financial Assets 50,093 40,214 11,813 4,990 341,162 448,272Weighted Average Interest Rate 5.12% 5.39% 5.87% 5.52%78

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200447. Financial Instruments (continued)2003 Consolidated Floating Fixed Interest Maturing/Repricing in: Non- ConsolidatedInterest 1 year over 1 year more than interest 2003Rate or less to 5 years 5 years Bearing TotalNote $’000 $’000 $’000 $’000 $’000 $’000Financial LiabilitiesTrade and Other Creditors 29 – – – – 3,862 3,862Accrued Expenses 33 – – – – 9,848 9,848Borrowings 30, 31 – 106 2,009 – 144 2,259Funds Held for Affiliated Activities 33 – 3,702 – 3,400 – 7,102Total Financial Liabilities – 3,808 2,009 3,400 13,854 23,071Weighted Average Interest Rate 0.00% 3.25% 10.00% 10.20%Net Financial Assets 50,093 36,406 9,804 1,590 327,308 425,201(c)Net Fair Value of Financial Assets and LiabilitiesThe net fair value of financial assets and liabilities disclosed in the Statement of Financial Position are not materially different to thecarrying value of the financial assets and liabilities.48. Acquittal of Commonwealth Government Financial Assistance48.1 DEST—Teaching and Learning Operating Grant Teaching HospitalsUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 63,155 60,915 306 324Net Accrual Adjustments (313) 76 26 –Revenue for the period 2(a) 62,842 60,991 332 324Surplus/Deficit from the previous year 178 155 – –Total Funds including accrued revenue 63,020 61,146 332 324Less Expenses including accrued expenses (62,908) (60,968) (332) (324)Surplus/Deficit for the reporting period 112 178 – –DEST—Teaching and Learning Capital Development Pool TotalUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 1,049 – 64,510 61,239Net Accrual Adjustments – – (287) 76Revenue for the period 2(a) 1,049 – 64,223 61,315Surplus/Deficit from the previous year – 197 178 352Total Funds including accrued revenue 1,049 197 64,401 61,667Less Expenses including accrued expenses (344) (197) (63,584) (61,489)Surplus/Deficit for the reporting period 705 – 817 17848.2 HECS and Other Commonwealth Loan Programmes HECS (Commonwealth Payments) PELSUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 35,108 36,551 3,697 2,385Net Accrual Adjustments 3,053 (163) – –Revenue for the period 2(b) 38,161 36,388 3,697 2,385Surplus/Deficit from the previous year – – (90) 88Total Funds including accrued revenue 38,161 36,388 3,607 2,473Less Expenses including accrued expenses (38,161) (36,388) (3,607) (2,563)Surplus/Deficit for the reporting period – – – (90)79

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200448. Acquittal of Commonwealth Government Financial Assistance (continued)HECS and Other Commonwealth Loan Programmes BOTPLS TotalUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 24 (2) 38,829 38,934Net Accrual Adjustments – – 3,053 (163)Revenue for the period 2(b) 24 (2) 41,882 38,771Surplus/Deficit from the previous year (7) 8 (97) 96Total Funds including accrued revenue 17 6 41,785 38,867Less Expenses including accrued expenses (6) (13) (41,774) (38,964)Surplus/Deficit for the reporting period 11 (7) 11 (97)G48.3 Scholarships Australian Postgraduate Australian PostgraduateAwards Pre-2002Awards Post-2002UniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 685 1,952 3,960 2,734Net Accrual Adjustments 249 – (214) –Revenue for the period 2(c) 934 1,952 3,746 2,734Surplus/Deficit from the previous year (419) (310) 467 271Total Funds including accrued revenue 515 1,642 4,213 3,005Less Expenses including accrued expenses (822) (2,061) (3,922) (2,538)Surplus/Deficit for the reporting period (307) (419) 291 467Scholarships International Postgraduate CommonwealthResearch ScholarshipsEducation Costs ScholarshipsUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 850 985 98 –Net Accrual Adjustments 392 – – –Revenue for the period 2(c) 1,242 985 98 –Surplus/Deficit from the previous year (410) (275) – –Total Funds including accrued revenue 832 710 98 –Less Expenses including accrued expenses (1,170) (1,120) (93) –Surplus/Deficit for the reporting period (338) (410) 5 –Scholarships Commonwealth TotalAccommodation ScholarshipsUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 256 – 5,849 5,671Net Accrual Adjustments – – 427 –Revenue for the period 2(c) 256 – 6,276 5,671Surplus/Deficit from the previous year – – (362) (314)Total Funds including accrued revenue 256 – 5,914 5,357Less Expenses including accrued expenses (246) – (6,253) (5,719)Surplus/Deficit for the reporting period 10 – (339) (362)80

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200448. Acquittal of Commonwealth Government Financial Assistance (continued)48.4 DEST Research Institutional ResearchGrants SchemeTraining SchemeUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 14,692 16,158 26,139 27,602Net Accrual Adjustments 1,277 14 2,273 (76)Revenue for the period 2(d) 15,969 16,172 28,412 27,526Surplus/Deficit from the previous year – – – –Total Funds including accrued revenue 15,969 16,172 28,412 27,526Less Expenses including accrued expenses (15,969) (16,172) (28,412) (27,526)Surplus/Deficit for the reporting period – – – –DEST Research Systemic Infrastructure Research InfrastructureInitiativesBlock GrantsUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 1,914 1,924 11,427 10,494Net Accrual Adjustments 166 (14) 993 (169)Revenue for the period 2(d) 2,080 1,910 12,420 10,325Surplus/Deficit from the previous year (443) 157 – –Total Funds including accrued revenue 1,637 2,067 12,420 10,325Less Expenses including accrued expenses (1,669) (2,510) (12,420) (10,325)Surplus/Deficit for the reporting period (32) (443) – –DEST ResearchTotalUniversityNote 2004 2003$’000 $’000Financial Assistance received in cashduring the reporting period 54,172 56,178Net Accrual Adjustments 4,709 (245)Revenue for the period 2(d) 58,881 55,933Surplus/Deficit from the previous year (443) 157Total Funds including accrued revenue 58,438 56,090Less Expenses including accrued expenses (58,470) (56,533)Surplus/Deficit for the reporting period (32) (443)48.5 Australian Research Council(a) Discovery Projects FellowshipsUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 10,067 9,028 564 1,046Net Accrual Adjustments – – – –Revenue for the period 2(e) 10,067 9,028 564 1,046Surplus/Deficit from the previous year 2,319 1,746 355 409Total Funds including accrued revenue 12,386 10,774 919 1,455Less Expenses including accrued expenses (9,524) (8,462) (830) (1,100)Surplus/Deficit for the reporting period 2,862 2,312 89 35581

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200448. Acquittal of Commonwealth Government Financial Assistance (continued)Australian Research Council(a) Discovery Federation Fellowships Indigenous Research DevelopmentUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 311 – – 10Net Accrual Adjustments – – – –Revenue for the period 2(e) 311 – – 10Surplus/Deficit from the previous year – – – –Total Funds including accrued revenue 311 – – 10Less Expenses including accrued expenses (3) – – (3)Surplus/Deficit for the reporting period 308 – – 7Australian Research Council(a) DiscoveryTotalUniversityNote 2004 2003$’000 $’000Financial Assistance received in cashduring the reporting period 10,942 10,084Net Accrual Adjustments – –Revenue for the period 2(e) 10,942 10,084Surplus/Deficit from the previous year 2,674 2,155Total Funds including accrued revenue 13,616 12,239Less Expenses including accrued expenses (10,357) (9,565)Surplus/Deficit for the reporting period 3,259 2,674Australian Research Council(b) Linkages Special Research Initiatives InfrastructureUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period – 50 1,512 808Net Accrual Adjustments – – – –Revenue for the period 2(e) – 50 1,512 808Surplus/Deficit from the previous year 50 – 261 1,369Total Funds including accrued revenue 50 50 1,773 2,177Less Expenses including accrued expenses (47) – (1,945) (1,916)Surplus/Deficit for the reporting period 3 50 (172) 261Australian Research Council(b) Linkages International ProjectsUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 158 139 4,211 2,872Net Accrual Adjustments – 39 61 (61)Revenue for the period 2(e) 158 178 4,272 2,811Surplus/Deficit from the previous year 102 65 1,570 1,202Total Funds including accrued revenue 260 243 5,842 4,013Less Expenses including accrued expenses (167) (141) (3,639) (2,443)Surplus/Deficit for the reporting period 93 102 2,203 1,57082

THE UNIVERSITY OF WESTERN AUSTRALIANotes to the Financial Statementsfor the year ended 31 December 200448. Acquittal of Commonwealth Government Financial Assistance (continued)Australian Research Council(b) Linkages Research Networks CentresUniversityUniversityNote 2004 2003 2004 2003$’000 $’000 $’000 $’000Financial Assistance received in cashduring the reporting period 335 – 1,658 1,770Net Accrual Adjustments – – – –Revenue for the period 2(e) 335 – 1,658 1,770Surplus/Deficit from the previous year – – 128 271Total Funds including accrued revenue 335 – 1,786 2,041Less Expenses including accrued expenses – – (1,807) (1,913)Surplus/Deficit for the reporting period 335 – (21) 128Australian Research Council(b) LinkagesTotalUniversityNote 2004 2003$’000 $’000Financial Assistance received in cashduring the reporting period 7,874 5,639Net Accrual Adjustments 61 (22)Revenue for the period 2(e) 7,935 5,617Surplus/Deficit from the previous year 2,111 2,907Total Funds including accrued revenue 10,046 8,524Less Expenses including accrued expenses (7,605) (6,413)Surplus/Deficit for the reporting period 2,441 2,11183

Performance IndicatorsSummary of Key Performance Indicators1. Teaching and Learning ........................................................ 852. Research and Scholarship .................................................. 851.3 Course Experience Questionnaire ................................ 891.4 Graduate Destinations .................................................. 901.5 Expenditure Ratios ....................................................... 91Certification of Performance Indicators ..................................... 86Auditor General’s Report to Parliament .................................... 871. Teaching and Learning1.1 Proportion of Top School LeaversApplying for Admission ................................................. 881.2 Proportion of Student Load Passed ............................. 892. Research and Scholarship2.1 Higher Degree Research Internationaland Interstate Enrolments ............................................ 922.2 Higher Degree by Research Completionsper Staff FTE ................................................................ 922.3 Publication Rates ......................................................... 942.4 Research Grants .......................................................... 9484

SUMMARY OF KEY PERFORMANCE INDICATORS1. Teaching and LearningIndicator 2002 2003 20041.1 Proportion of Top WA School Leavers Applying for Admission to UWA (by admission year)(i) Proportion of the top 5 per cent of WA school leavers who applied for admission to UWA 83.7% 79.7% 80.6%(ii) Proportion of the top 10 per cent of WA school leavers who applied for admission to UWA 73.3% 73.5% 74.4%(iii) UWA enrolments as a proportion of the top 5 per cent of school leavers who enrolledin WA universities 86.0% 83.9% 83.8%(iv) UWA enrolments as a proportion of the top 10 per cent of school leavers who enrolledin WA universities 73.0% 73.9% 76.0.%1.2 Proportion of Student Load Passed (excluding Higher Degree by Research) 90.9% 91.5% 91.9%1.3 Overall Course Satisfaction(Percentage of graduates in broad agreement with the overall course satisfaction item on the CEQ) 90.8% 91.2% 90.2%1.4 Graduate Destinations (of local students who completed bachelor’s degrees in the previous year)(i) Proportion of graduates available for full-time employment who were employed full-time 77.4% 80.4% 81.9%State figure 77.8% 74.4% n/aNational figure 81.3% 80.1% 79.7%(ii) Proportion of graduates in full-time study 43.4% 44.7% 46.6%State figure 28.1% 25.5% n/aNational figure 24.1% 22.8% 23.4%1.5 Expenditure Ratios (indexed to 2004 dollar values)(i) Expenditure/EFTSU $22,245 $25,005 $24,638(ii) Expenditure/Weighted Student Unit $19,595 $21,980 $21,595(iii) Expenditure/Course Completion $69,298 $72,353 n/a(iv) Expenditure/Weighted Completion $57,665 $59,712 n/a2. Research and ScholarshipIndicator 2002 2003 20042.1 Higher Degree by Research (HDR) International and Interstate Enrolments(i) Percentage of commencing HDR enrolments from overseas 20% 18% 19%(ii) Percentage of commencing HDR enrolments from interstate 10% 10% 9%2.2 Higher Degree by Research Completions per 10 Academic Staff FTE 3.76 3.90 n/aNational Rank 5th 6th n/a2.3 Weighted Publications per FTE Academic Staff (lecturer level B and above) 1.67 1.76 n/aNational Average 1.26 1.35 n/aNational Rank 5th 4th n/a2.4 Research Funding(i) National Competitive Grant Funds per FTE Academic Staff (lecturer level B and above) $47,486 $57,785 n/aNational Average $20,714 $24,980 n/aNational Rank 2nd 2nd n/a(ii) Total Research Funds per FTE Academic Staff (lecturer level B and above) $88,121 $103,603 n/aNational Average $50,570 $57,007 n/aNational Rank 5th 4th n/a85

Key Performance Indicators 2004The key performance indicators that are presented in this section are broadly based on the Mission and Vision Statements of the Universitytogether with the more specific statements of goals and objectives in the University’s Strategic Plan. The Planning section of this AnnualReport provides details of these strategic and other key planning documents.1. Teaching and LearningDesired OutcomesIn broad terms, the desired outcome (broad goal) in teaching and learning is ‘to provide courses of study and a learning environment at thehighest possible quality to meet individual, local (state) and national needs and internationally recognised standards; and to foster therelationship between teaching and the conduct of research across the range of its disciplines in a way that sustains the quality of theinstitution’s teaching and learning activities and distinguishes it from other institutions in the State and many others in the Unified NationalSystem’. [Primary goal in Teaching and Learning, UWA Strategic Plan]Indicator 1.1 Proportion of Top School Leavers Applying for AdmissionOperationally, the priority objective that relates to the desired outcome is ‘to attract, develop and graduate the highest quality students’ asspecified in the 1999 update of the University’s Strategic Plan.The principal performance indicator that relates to attracting the highest quality students is the proportion of the State’s high-achievingschool leavers who apply for admission to the University’s undergraduate courses. The performance indicators presented in the followingtable are based on the first preferences of the top five per cent and top ten per cent of students who applied for admission or were admittedthrough the Tertiary Institutions Service Centre (TISC). The tertiary entrance ranks of applicants have been used to determine the top five percent and ten per cent of applicants, while students without a tertiary entrance rank have been excluded from the population used. It shouldbe noted that many students may have identical tertiary entrance ranks and where such a tertiary entrance rank coincides with the cut-offfor the top five per cent or ten per cent, the numbers of preferences for the cut-off group have been reduced proportionately so that thetotal numbers of preferences used in the calculations equal exactly five per cent or ten per cent respectively of the overall population.The table shows that a significant majority of the highest ranking Western Australian school leavers who were seeking admission to WAuniversities applied for admission to this University, and a significant majority of those who subsequently enrolled in WA universities enrolledat this University.Proportions of Top School Leavers (a) Applying for Admission to UWA, 1999 to 2003 (b)1999 2000 2001 2002 2003Proportion of the top 5 per cent of WA school leavers whoapplied for admission to UWA (c) 79.3% 79.5% 83.7% 79.7% 80.6%Proportion of the top 10 per cent of WA school leavers whoapplied for admission to UWA (c) 69.3% 69.2% 73.3% 73.5% 74.4%UWA enrolments as a proportion of all enrolments of thetop 5 per cent of WA school leavers (by application year) (d) 81.4% 79.7% 86.0% 83.9% 83.8%UWA enrolments as a proportion of all enrolments of thetop 10 per cent of WA school leavers (by application year) (d) 70.6% 71.1% 73.0% 73.9% 76.0%(a)School leavers are those matriculating with a Tertiary Entrance Rank in the previous two years.(b)By application year; e.g. 2003 refers to those who applied in 2003 to be admitted for the following year.(c)Based on the first preferences of applicants with Tertiary Entrance Ranks who applied for admission through TISC.(d)Based on offers accepted through TISC by applicants with Tertiary Entrance Ranks.Proportion of top school leavers applying for admission to UWA88%86%84%82%80%78%76%74%1999 2000 2001 20022003Proportion of the top 5 percent of WA school leaverswho applied for admissionto UWAUWA enrolments as aproportion of all enrolmentsof the top 5 per cent of WAschool leavers88

Indicator 1.2 Proportion of Student Load PassedThe proportion of student load passed gives anindication of the quality of the University’sstudents and their development.The following table shows that the University hasmaintained a high pass rate of approximately 90per cent over the 1999 to 2003 period. Note thatthe branch of learning classification wassuperseded in 2001 by field of education codes,so pre-2001 pass rates have been recalculatedusing the new codes.92.2%92.0%91.8%91.6%91.4%91.2%91.0%90.8%90.6%90.4%90.2%Student load pass rate 1999 to 2003 (excluding HDRs)1999 2000 2001 2002 2003Student Load Pass Rate (a) by Broad Field of Education, 1999 to 2003 (excluding Higher Degrees by Research)Broad Field of Education 1999 2000 2001 2002 200301 Natural and Physical Sciences 86.4% 87.6% 88.6% 89.2% 89.1%02 Information Technology 90.6% 88.3% 87.1% 88.0% 88.2%03 Engineering and Related Technologies 90.9% 92.1% 93.0% 93.2% 92.3%04 Architecture and Building 89.2% 89.6% 89.6% 88.1% 90.7%05 Agriculture, Environmental Studies 91.7% 91.6% 93.5% 93.6% 95.8%06 Health 97.3% 97.3% 96.3% 96.9% 96.6%07 Education 95.4% 94.3% 94.7% 95.7% 96.0%08 Management and Commerce 93.0% 92.9% 92.5% 93.1% 93.6%09 Society and Culture 90.8% 90.4% 90.5% 91.1% 91.5%10 Creative Arts 88.1% 91.4% 88.1% 90.8% 90.7%Total 90.8% 91.0% 90.9% 91.5% 91.9%(a)The student load pass rate has been calculated as a proportion of the total enrolled load excluding units with incomplete results.Indicator 1.3 Course Experience QuestionnaireThe quality of the University’s courses can be judged inpart from graduates’ responses to the CourseExperience Questionnaire (CEQ) and PostgraduateResearch Experience Questionnaire (PREQ) which areconducted in conjunction with the annual GraduateDestinations Survey of the students who completedcourses in the previous year.0%2000 2001 2002 2003 2004Respondents to the CEQ and PREQ are asked torecord their responses to 24 statements about various aspects of the courses completed. A five-point scale ranging from 1 labelled ‘stronglydisagree’ to 5 labelled ‘strongly agree’ is used for this purpose (2, 3 and 4 are not labelled and it is assumed that 4 indicates agreement withthe statement). Item 24 (‘Overall, I was satisfied with the quality of the course’) obtained students’ overall impressions of their courses. Eachyear approximately half of the students who completed courses in the previous year at this University respond to this item. Their responsesare summarised in the following table, and show an increase in the proportion of graduates with a positive response (responses 4 and 5 onthe response scale) from 71 per cent of respondents in 2000 to 76 per cent in 2003, followed by a drop to 72 per cent in 2004.Student Responses to the Course Experience Questionnaire Item 24: ‘Overall, I was satisfied with the quality of the course.’Percentage of RespondentsCourse Type Course Number of Strongly Disagree Strongly AgreeCompletions Respondents 1 2 3 4 52004 ResponsesDoctorate by Research 211 105 3% 7% 10% 54% 27%Master’s Research 57 29 0% 3% 10% 41% 45%Master’s Coursework 516 216 3% 6% 13% 55% 22%Other Postgraduate (a) 527 154 4% 5% 12% 53% 27%Bachelor’s Graduate Entry 128 61 2% 13% 25% 48% 13%Bachelor’s Honours 869 225 3% 7% 13% 49% 28%Bachelor’s Pass 1,834 1,288 2% 8% 22% 48% 20%Undergraduate Diploma 15 4 0% 0% 0% 75% 25%2004 Total 4,157 2,082 2% 7% 18% 50% 22%2003 Total 3,935 1,658 2% 7% 16% 52% 24%2002 Total 3,698 1,774 3% 6% 16% 49% 25%2001 Total 3,490 2,000 2% 7% 17% 51% 23%2000 Total 3,496 2,107 2% 7% 19% 50% 21%(a)Comprises graduate diplomas and graduate certificates.100%80%60%40%20%Responses to Course Experience SurveyOverall Satisfaction1 Strongly disagree2345 Strongly agree89

Indicator 1.4 Graduate DestinationsDestination of bachelor’s degree graduatesGraduate destinations in the first year followingcompletion of their course gives an indication of howwell the University meets individual, local (state) andnational needs.100%80%60%40%Unavailable for full-timestudy or full-timeemploymentAvailable for employment20%In full-time studyFigures in the following tables are based on the0%responses of approximately two-thirds of the nonoverseasgraduates who responded to the GraduateThe University of Western AustraliaAustralia2001 2002 2003 2004 2004Careers Council of Australia Graduate Destinations Surveys conducted in 2001 to 2004. They show that 82.0 per cent of bachelor’s degreegraduates from this University who were seeking employment had obtained their preferred mode of employment (i.e. full-time or part-time).This is slightly higher than the national figure of 80.7 per cent. The figures also show that the proportion of graduates who pursued furtherfull-time study was significantly higher than the national average (46.6 per cent as compared with 23.4 per cent).Destinations of Bachelor’s Degree Graduates (a) , UWA, 2001 to 2004 and Australia 2004The University of Western Australia Australia2001 2002 2003 2004 2004In full-time study 36.7% 43.4% 44.7% 46.6% 23.4%Available for employment 60.2% 49.4% 52.0% 51.1% 73.1%Unavailable for full-time study or full-time employment 3.1% 7.2% 3.3% 2.3% 3.5%Total percentage (b) 100.0% 100.0% 100.0% 100.0% 100.0%Total respondents 1,341 1,373 1,315 1,286 64,965Response rate (c) 61% 59% 55% 53% 62%(a)(b)(c)Destinations (as of 30 April) of students who completed bachelor’s degrees (including bachelor’s graduate entry degrees) in the previous year excludingoverseas residents.Discrepancies between the sums of component items and the totals are due to rounding.Number of respondents as a percentage of those surveyed.Destinations of Bachelor’s Degree Graduates who were Seeking Employment (a) ,UWA, 2001 to 2004 and Australia 2004The University of Western Australia Australia2001 2002 2003 2004 2004In desired mode of employment 85.3% 78.2% 81.1% 82.0% 80.7%In full-time employment 66.3% 71.2% 71.5% 75.6% 72.4%In part-time or casual employment, not seeking full-time employment 19.0% 6.9% 9.6% 6.4% 8.4%Seeking full-time employment, working part-time or casual 7.9% 10.5% 9.8% 9.7% 11.7%Seeking full-time employment, not working 5.6% 10.3% 7.6% 7.0% 6.7%Not working, seeking part-time or casual employment only 1.2% 1.0% 1.5% 1.2% 0.8%Total percentage (b) 100.0% 100.0% 100.0% 100.0% 100.0%Total respondents 807 678 684 657 47,455(a)(b)Destinations (as of 30 April) of students who completed bachelor’s degrees (including bachelor’s graduate entry degrees) in the previous year excludingoverseas residents who were seeking employment.Discrepancies between the sums of component items and the totals are due to rounding.86%84%In desired mode of employment82%80%78%76%74%2001 2002 2003 2004 2004The University of Western AustraliaAustralia90

Indicator 1.5 Expenditure RatiosEfficiency indicators are intended to show the relationship between the resources used and the outputs produced. In the higher educationsector, one measure of the resources is the expenditure attributed to teaching, while the outputs may be defined in terms of the number ofgraduates or equivalent full-time students.The major source of funds used for teaching is the Commonwealth operating grant that is primarily determined on the basis of a negotiatedstudent load mix. Essentially the same rate of funding applies to each course type/discipline category in the load target negotiated by eachinstitution in the Unified National System. As a consequence, figures on expenditure per equivalent full-time student unit (EFTSU) reflect thestudent load mix.The fees for overseas students are set in a competitive environment and therefore reflect the perception of the University’s courses; apremium is earned for courses with high demand and is usually used for teaching purposes. Thus high expenditure figures may reflect theperceived quality of courses.The following table presents ratios of the total expenditure (excluding research only expenditure) to the equivalent full-time units andweighted student units of all students at the University. It shows a 16.9 per cent increase in the expenditure per EFTSU and a 16.8 per centincrease in expenditure per weighted student unit at this University over the 2000 to 2004 period. Expenditure per course completionincreased by 2.3 per cent from 2000 to 2003 while expenditure per weighted course completion decreased marginally by 0.7 per cent overthe same period.Expenditure Ratios, 2000 to 20042000 2001 2002 2003 2004Expenditure (a) / EFTSU 21,067 21,343 22,245 25,005 24,638Expenditure (a) / Weighted Student Units (b) 18,491 18,802 19,595 21,980 21,595Expenditure (c) / Course Completion 70,753 70,809 69,298 72,353(e)Expenditure (c) / Weighted Completion (d) 60,123 58,846 57,665 59,712(e)(a)Total expenditure excluding research only expenditure and Perth International Arts Festival expenditure, indexed to 2004 dollar values(b)Weighted student units calculated by multiplying student load in higher degree research by 2.0, other postgraduate and honours by 1.3 and bachelor’s(including graduate entry) by 1.0.(c)Total expenditure (in 2004 dollar values) excluding research only expenditure averaged over last three years.(d)Weighted by multiplying the number of completions in higher degree research by 2.0, other postgraduate and honours by 1.3 and bachelor’s (includinggraduate entry) by 1.0.(e)The number of completions for 2004 will not be available until May 2005.91

2. Research and ScholarshipDesired OutcomeThe desired outcome in Research and Scholarship is to enhance the University’s ‘standing as one of Australia’s leading research universitiesand the premier research institution in Western Australia. There are two dimensions to this goal: firstly, the University is committed to theachievement of high quality research and scholarship, by international standards, across the whole spectrum of its disciplines; andadditionally, to the development of special research concentrations, of the very highest international standards, in selected areas ofparticular strength, importance and opportunity’. [Primary goal in Research and Scholarship, UWA Strategic Plan]Indicator 2.1 Higher Degree by Research International and Interstate EnrolmentsThis University’s success in attracting higher degree by research students is a reflection of its reputation for excellence in research asmeasured by the proportion of higher degree research students whose undergraduate qualification is from an overseas or an interstateinstitution. The following table of commencing higher degree research enrolments by undergraduate institution of origin shows that in 2004,46 per cent of the University’s commencing research students came from outside UWA, with 19 per cent from overseas institutions andnine per cent from interstate.Commencing Higher Degree by Research Enrolments by Undergraduate Institution Location, 2000 to 2004Overseas Interstate Other WA None (a) Sub-Total (b) UWA Total (b)2004 Enrolments by FacultyArchitecture, Landscape and Visual Arts 17% 33% 33% 0% 83% 17% 100%Arts, Humanities and Social Sciences 7% 14% 10% 2% 33% 67% 100%Economics and Commerce 21% 4% 21% 13% 58% 42% 100%Education 34% 6% 28% 12% 80% 20% 100%Engineering, Computing and Mathematics 25% 6% 2% 2% 34% 66% 100%Law 43% 14% 14% 0% 71% 29% 100%Life and Physical Sciences 14% 5% 7% 1% 27% 73% 100%Medicine and Dentistry 7% 13% 21% 4% 45% 55% 100%Natural and Agricultural Sciences 18% 12% 12% 3% 44% 56% 100%2004 Total 19% 9% 14% 5% 46% 54% 100%2003 Total 18% 10% 15% 1% 44% 56% 100%2002 Total 20% 10% 15% 1% 46% 54% 100%2001 Total 25% 10% 16% 5% 56% 44% 100%2000 Total 26% 13% 17% 2% 58% 42% 100%(a)No undergraduate studies undertaken, or prior institution not recorded.(b)Discrepancies between the sums of component items and the totals are due to rounding.With regard to fee-paying overseas doctoral students, a breakdown of their regional origin shows that over a five-year period, from 2000 to2004, the University attracted 243 doctoral students from all regions of the world—Europe, Africa, Asia and the Middle East, the Americasand the Pacific Region.Indicator 2.2 Higher Degree by Research Completions per Staff FTEThe numbers of higher degrees by research completed per staff member is a measure of the teaching-and-research staff productivity inresearch and scholarship. It should be noted that the University uses external examiners with international reputation to ensure that thedegrees that are conferred are of the highest international standard.The number of higher degree by research completions per 10 full-time equivalent (FTE) teaching-and-research staff members at lecturer orabove status (excluding casual staff appointments) has increased from 3.67 in 1999 to 3.90 in 2003. It should be noted that the staffing levelused for this ratio was the average staff FTE for the previous three years of teaching-and-research staff with a level B or above appointment,and excluded casual staff.92

Weighted (a) Higher Degree by Research Completions (b) per 10 Academic Staff FTE (c)1999 to 20031999 2000 2001 2002 2003Doctorate by Research 2.63 2.72 2.54 2.75 3.07Master’s by Research 1.04 0.92 1.25 1.01 0.83Total 3.67 3.64 3.79 3.76 3.90Weighted Total 6.30 6.36 6.33 6.51 6.97(a)Doctorates are weighted as 2 and masters by research as 1(b)Excluding higher doctorate completions.(c)Average staff FTE for the previous three years of teaching-and-research staff with a level B or above appointment (excluding casual staff FTE).7.27.0Weighted HDR completions per 10 academic staff FTE6.86.66.46.26.05.8199920002001 2002 2003Relative to other Universities, the University recorded the sixth highest number nationally (3.91) of higher degree by research completions per10 academic staff FTE in 2003 (as shown in the following table). This figure is significantly higher than the national average of 2.93.Higher Degree by Research Completions (a) per 10 Academic Staff FTE (b) ,Selected Universities (c) , 2001 to 20032001 2002 2003Total Total/ Rank Total Total/ Rank Total Total/ RankInstitution 10 FTE 10 FTE 10 FTEANU 285 7.12 1 236 5.88 1 253 5.92 1Melbourne 588 4.58 2 663 5.04 2 694 5.18 2Queensland 424 3.99 3 484 4.50 3 548 5.04 3Adelaide 207 3.36 5 226 3.71 6 242 4.01 4Sydney 484 3.35 6 517 3.68 7 550 3.95 5Western Australia 249 3.79 4 253 3.76 5 268 3.91 6Southern Cross 48 2.63 14 75 4.04 4 71 3.79 7Tasmania 122 2.93 9 134 3.22 9 152 3.68 8Monash 393 3.08 7 454 3.53 8 445 3.45 9RMIT 187 2.54 15 225 3.03 11 241 3.20 10New England 97 2.49 16 101 2.73 14 112 3.06 11Curtin 117 1.68 23 129 1.85 24 217 2.98 12Murdoch 88 2.69 12 92 2.74 13 95 2.77 15Edith Cowan 59 1.32 29 73 1.62 29 80 1.78 27AUSTRALIA 5374 2.53 5822 2.73 6314 2.93(a)Excluding higher doctorate completions.(b)Average of past three years’ staff FTE for academic staff in academic organisational units with a teaching-and-research or teaching only appointment at levelB or above (excluding casual staff FTE).(c)The 12 highest-ranked universities in 2003 plus WA institutions.93

Indicator 2.3 Publication RatesThe numbers of refereed publications in reputable journals and other publications may be considered to be a reflection of the researchoutput of a university and the numbers of weighted publications per academic staff FTE give an indication of research productivity. Thefigures in the following table show that while the average number of weighted publications per staff FTE at this University has decreased by6.9% from 1.89 in 1999 to 1.76 in 2003, it was considerably higher than the national average of 1.35 that has been recorded for 2003.However it should be noted that the figures relate to the publications reported on the 2000 to 2004 DEST Higher Education Research DataCollections and do not purport to cover the complete range of publications produced by the University’s staff during that period.Selected Research Publications (a) by Type of Publication per Academic Staff FTE (b) ,UWA, 1999 to 2003Type of Publication 1999 2000 2001 2002 2003Authored Research 0.020 0.022 0.024 0.030 0.020Book Chapters 0.163 0.117 0.159 0.124 0.176Article in Scholarly Refereed Journal 1.298 1.151 1.104 1.127 1.223Full Written Paper—Refereed Proceedings 0.277 0.202 0.263 0.273 0.258Total 1.759 1.493 1.555 1.553 1.677Weighted Total (c) 1.892 1.582 1.654 1.671 1.758National Weighted Total (c) 1.107 1.097 1.113 1.258 1.352(a)Research publications as reported on the 2000 to 2004 DEST Higher Education Research Data Collections.(b)Full-time equivalence of academic staff at lecturer level B or above, excluding casual appointments.(c)Applying the weights used by DEST to allocate the 2003 RIBG, RTS and IGS.Publications per academic staff FTE1.41.2Article in scholarlyrefereed journal1.00.80.60.40.20.0Authored researchBook chaptersFull writtenpaper—refereedproceedings2000200120022003200020012002200320002001200220032000200120022003Indicator 2.4 Research GrantsThe research funds allocated to an institution are an indication of its relative success in research, especially National Competitive Grantfunds. National Competitive Grants are allocated on the basis of competitive bids for research funds under specified schemes by bodiesincluding the Australian Research Council, the National Health and Medical Research Council, Primary Industry R&D Corporations, otherCommonwealth departments and other non-Commonwealth schemes such as the Australian Kidney Foundation.The University obtained 7.7 per cent of the National Competitive Grant funds allocated to Australian higher education institutions in 2003.This allocation was the nation’s second highest on a per staff FTE basis, and was sixth overall. The following table shows NationalCompetitive Grant research funds allocated to selected universities per full-time equivalent academic staff (of lecturer and above status,excluding casual staff) from 2001 to 2003. The table shows this University’s leading position in per FTE allocations.Overall, the University received six per cent of all research funding for 2003 (as reported on the 2004 DEST Higher Education Research DataCollection and presented on the table on the next page). This represents the eighth highest allocation of research funds overall.94

National Competitive Grant Funds (a) per Academic Staff FTE (b) Allocated to Selected Universities (c) ,2001 to 20032001 2002 2003Institution Funds ($) $/FTE Rank Funds ($) $/FTE Rank Funds ($) $/FTE RankAdelaide 39,862,954 54,682 1 41,333,296 57,011 1 47,763,157 64,632 1Western Australia 40,704,950 48,924 2 40,125,631 47,486 2 49,810,642 57,785 2ANU 21,802,466 24,663 9 30,276,953 31,770 7 55,635,215 55,139 3Melbourne 72,012,034 44,589 3 74,801,422 44,818 3 87,167,861 50,357 4Sydney 56,927,302 35,184 5 60,944,523 37,924 4 75,874,497 44,764 5Queensland 58,730,007 42,010 4 48,309,308 33,502 6 63,456,179 42,588 6New South Wales 50,882,543 34,567 6 49,171,405 35,324 5 54,852,782 35,781 7Tasmania 16,183,530 32,367 7 14,400,791 28,292 8 17,389,302 32,810 8Monash 37,481,531 23,338 10 36,297,750 21,415 10 45,893,967 25,568 9Murdoch 8,196,979 21,685 12 8,611,133 21,745 9 9,841,987 24,361 10Newcastle 13,212,217 20,905 13 12,801,019 18,825 12 16,153,599 23,011 11Flinders 12,989,860 24,790 8 9,844,156 18,895 11 9,978,993 20,449 12Curtin 7,852,877 9,461 22 4,566,179 5,096 28 6,276,579 7,239 26Edith Cowan 1,838,032 4,057 33 1,547,363 3,477 34 1,505,540 3,353 36AUSTRALIA 547,947,111 22,111 524,614,830 20,714 650,398,058 24,980(a)Includes income of Co-operative Research Centres (from Commonwealth sources) and controlled entities.(b)Full-time equivalence of academic staff at lecturer level B and above, excluding casual appointments.(c)The 12 highest-ranked universities in 2003 plus WA institutions.$/FTENational Competitive Grants per Academic Staff FTE70,00060,00050,00040,00020032002200130,00020,00010,0000AdelaideWesternAustraliaANU Melbourne Sydney Queensland New Tasmania Monash MurdochSouthWales95

Total Research Income (a) per Academic Staff FTE (b) Allocated to Selected Universities (c) ,2001 to 20032001 2002 2003Institution Funds ($) $/FTE Rank Funds ($) $/FTE Rank Funds ($) $/FTE RankAdelaide 68,378,774 93,798 1 78,473,945 108,240 1 86,877,954 117,562 1Melbourne 136,115,771 84,282 4 158,782,596 95,136 2 198,739,216 114,812 2Queensland 127,393,416 91,125 2 136,730,565 94,820 3 154,664,898 103,802 3Western Australia 72,469,818 87,103 3 74,462,191 88,121 5 89,305,843 103,603 4ANU 52,845,710 59,780 8 70,898,294 74,395 7 99,095,654 98,212 5Sydney 117,621,967 72,696 6 145,244,167 90,382 4 156,584,239 92,380 6New South Wales 108,800,007 73,913 5 110,217,999 79,180 6 121,662,093 79,362 7Murdoch 18,393,010 48,659 11 24,944,331 62,991 8 29,177,222 72,221 8Tasmania 31,448,533 62,897 7 32,006,328 62,881 9 33,044,483 62,348 9Monash 81,390,912 50,679 9 96,677,014 57,037 10 111,595,568 62,170 10Flinders 26,085,866 49,782 10 23,527,654 45,159 11 26,175,543 53,638 11Newcastle 26,738,877 42,308 12 28,019,412 41,205 12 33,518,172 47,747 12Curtin 24,004,397 28,921 17 27,155,133 30,307 17 30,027,502 34,634 19Edith Cowan 5,116,830 11,295 33 5,484,299 12,324 34 5,399,223 12,025 35AUSTRALIA 1,140,869,240 46,036 1,280,723,275 50,570 1,175,867,610 57,007H(a)Includes income of controlled entities. Excludes Co-operative Research Centre income from non-Commonwealth sources.(b)Full-time equivalence of academic staff at lecturer level B and above, excluding casual appointments.(c)The 12 highest-ranked universities in 2003 plus WA institutions.$/FTETotal research income per academic staff FTE120,000100,00020032002200180,00060,00040,00020,0000Adelaide Melbourne Queensland Western ANU Sydney New South Murdoch Tasmania MonashAustraliaWales96