Queensland University of Technology 2011 Annual Report - QUT

Financial PositionThe Statement of Financial Position outlines the financialstrength of the University and its capacity to meet currentobligations and support long term priorities.Net Assets($1,195 million increased $64 million or 6 per cent)QUT’s net asset position as at 31 December 2011 was$1195 million, representing an increase of $63.8 million(6 per cent). This increase was driven by several key factorsincluding:• the increase in non-current assets totalling $92 milliondriven by property, plant and equipment increases of$87 million where the major contributor was theconstruction in progress of the Science and EngineeringCentre at Gardens Point;• the increase in non-current liabilities totalling $6 millionprimarily associated with further draw downs andrevaluations of interest free loans;• a decrease in current assets totalling $43 million driven bya decrease in cash and cash equivalents of $13 million tocover cash flow needs in the capital program; the onceoffnet divestment in 2010 of the Carseldine campus anddonated land totalling $16 million; reduction of $10 millionin current receivables impacted by the change to thetiming of student invoicing for first semester 2012; and anet reduction of $4 million in other financial assets flowingfrom unrealised losses in investments;• a decrease in current liabilities of $21 million with themain contributor being the change in timing of invoicingstudent fees for first semester in 2012.Liquidity Ratio (2.8:1)The University’s liquidity ratio of current assets to currentliabilities is currently placed at 2.8:1. This is well within thegenerally accepted better practice range for universities of1.5 to 3.0. This outcome is at the higher end of the rangebut is deemed appropriate given the active management offunds held in cash and cash equivalents for the purpose ofsupporting the University’s strategies and significant assetmanagement plan.In conclusion, the University produced a solid underlyingoperating result for 2011 and the financial position remainsstrong to support the University’s budgeted plans, objectivesand longer term aspirations.Buildings, land improvement and artworks wereindependently valued during 2011 though the revaluationsdid not impact materially on the asset base.PAGE 42 | QUT ANNUAL REPORT 2011