CQUniversity Annual Report - Central Queensland University

62OUR FINANCIAL PERFORMANCEOther areas of expenditure that have seen a signifi cant increase areleases, where the University made strategic investments in expansionof leased space at Noosa, Adelaide and Cairns. Leases increased by$3.788m from 2011 to 2012.Depreciation increased by $1.3m or 10% refl ecting the capitalisationof completed projects. Other expenses to show signifi cant increasesincluded marketing where additional funds were invested to supportgrowth in domestic student numbers ($720k), scholarships and prizes($774k), legal costs incurred in pursuit of the merger ($407k), studentwaivers ($781k) and increased utilities costs ($893k).Management fees paid to partners have decreased by 13.1% refl ectingthe decline in international student numbers.OTHER MATTERSThe University maintains a comprehensive insurance program thatannually assesses its risks and provides appropriate levels of coverfor each of these risks. It also has a range of programs for staffand students to ensure their safety and wellbeing, and providesappropriate channels to enable decisions of the University to bereviewed. Through these mechanisms the University minimises thecost and risk in relation to liabilities and contingent liabilities.The University operates to achieve value for money and has appropriateprocurement policies and procedures to support this outcome.The University has exercised appropriate control over budgets and hasoperated within the budgets it allocated to Divisions for the year. As aresult of revenue losses in the international student business not beingfully offset by increases in domestic student revenue, the Universityrecorded a defi cit of revenue.It was too late in the year to make adjustments to expenditure budgetsby the time this information was to hand. Further the Universitymade decisions to incur additional costs in restructuring to make theUniversity more sustainable into the future. Spending of research fundswere not in excess of the budget but were against funds earned in aprior year, and the spending of University funds against developmentprojects was approved by Council within the budgets established forthose projects.