2017 Annu al Report
scu.edu.au
CRICOS Provider: 01241G
Letter of
Submission
1
Teaching
and Learning
8
Management
and Activities
2
Research
10
Student
Feedback and
Consumer
Response
17
Financial
Statements
26
Financial
Performance
25
Strategic Plan
2016 – 2020
4
Engagement
12
People
14
Governance
19
Appendices
117
Table of Contents
Southern Cross University Annual Report 2017 1
www.scu.edu.au
Lismore
PO Box 157, Lismore NSW 2480 Australia
T +61 2 6620 3000 F +61 2 6620 3700
CRICOS Provider 01241G
12 April 2018
The Hon Rob Stokes MP
Minister for Education
Parliament House
Sydney NSW 2000
Dear Minister
The Council of Southern Cross University submits the University’s Annual Report of
proceedings for the year ending 31 December 2017 for presentation to Parliament.
The Annual Report has been prepared in accordance with the Annual Reports
(Statutory Bodies) Act 1984 (NSW) and the Public Finance and Audit Act 1983
(NSW).
Yours sincerely
Mr Nick Burton Taylor AM
Chancellor Southern Cross University
Professor Adam Shoemaker
Vice Chancellor Southern Cross University
2 Southern Cross University Annual Report 2017
Management
and
Activities/
Major Works
The University reviewed
key elements of its
performance and
formulated a revised
strategy at its annual
Senior Staff Conference
in February 2017.
Reflecting upon the results
of a comprehensive
institutional review
undertaken by Phillips
KPA, the senior leadership
group agreed a set of
short, medium and longterm
actions geared
towards maximising
sustainable growth.
Key amongst these was the
reinvigoration of the University’s
undergraduate and postgraduate
courses, an increase in market
reach, and growth in student
employability. In April, the
University Council adopted seven
Key Performance Indicators to
measure performance and to
drive accountability for outcomes
out to 2020.
A transformative revisioning
and rebranding exercise was
undertaken to underpin the
University’s growth agenda.
The University logo was revised
to inspire students, staff and
community alike to connect
better with a new approach to
the world-class learning and
research being conducted in our
very own backyard – to influence
the front yard and the rest of
the world. This new approach
included the launch of a major
paper proposing a New Regional
Deal for Australia – making a
significant case for increased
support for regional communities
by improving funding and
opportunities for growth for the
regional university campuses that
support them.
The University played a key
role in supporting the recovery
and rebuilding from the worst
flooding in Lismore since 1974.
The University’s Function Centre
at the Lismore campus was
transformed into an Evacuation
Centre. Hundreds of floodedout
local residents utilised the
campus facilities with many
sleeping at the centre, and local
businesses were provided space
to operate within the University’s
state-of-the-art Enterprise Lab.
In response to this clear area
of community need, Southern
Cross introduced Australia’s
first-ever degree in Coastal
Systems Engineering – designed
to produce industry-capable
graduates for work in water
engineering, coastal engineering
and catchment management.
Southern Cross was recognised
among the top 500 universities
in the world in The Times Higher
Education University Rankings
- This followed the University
receiving three five-star ratings
in the Good Universities Guide
for the humanities, culture, social
sciences, and psychology fields
of study.
The third phase of the University’s
Gold Coast Campus expansion
was completed with the opening
of Building C and its adjoining
560 seat lecture theatre. This
major capital works program
provided for an innovative
new two-storey library and
additional teaching and learning
spaces. Planning commenced
for construction of a $12 million
clinical and allied health facility
at the University’s Coffs Harbour
Campus to greatly expand the
breadth of health science
degrees available in the Coffs
Coast region.
In addition, the University
explored options to deliver
student accommodation at its
Gold Coast campus, given the
strong demand for such a
facility at that site.
In partnership with the
Department of Primary Industries,
the University launched the
Centre for Organics Research
to support the productivity and
sustainability of the organic food
industry in Australia – through
collaborative regional, national
Southern Cross University Annual Report 2017 3
Southern Cross was recognised among
the top 500 universities in the world in
The Times Higher Education University
Rankings 2017.
and international partnerships.
This included research into the
comprehensive reach of organic
production including integrated
production systems, sustainable
resource management,
economics and markets, and
education and health. Professor
Carlo Leifert – formerly of
Newcastle University (UK) –
was appointed as inaugural
Centre Director.
On 1 August 2017, the University
responded decisively to the
Australian Human Rights
Commission’s National Report
on Sexual Assault and Sexual
Harassment at Australian
Universities, by implementing
a range of proactive measures
designed to maximise student
safety both on and off campus.
The University resolved to fully
implement Universities Australia’s
10-point plan and work continued
throughout 2017 to this end.
The University’s Farm Cooperatives
and Collaboration
pilot program (known as Farming
Together) continued to boost
profitability and sustainability
across Australian agriculture, with
more than 20,000 producers and
farmers involved. The Program
contracted a pool of more
than 200 specialist advisers,
supported 530 producer groups,
delivered 770 expert support
services, enrolled 90 producers in
cooperatives governance training
and helped 117 new co-ops to
register for operations.
An inaugural University
Council and Indigenous Elders
meeting was held to consider
the Reconciliation Action Plan
(RAP) and to facilitate a broad
discussion of the Elders vision
for Southern Cross. The meeting
informed the University Council’s
subsequent approval of the RAP
and underscored the alignment of
management and the governing
body in implementing the
principles and actions it contained.
The Aboriginal and Torres Strait
Islander Education Strategy 2017-
2020 was also endorsed.
The University’s Gold Coast
Campus enjoyed the strongest
rates of student load growth, while
joint-venture operations continued
to perform strongly, with the Hotel
School Sydney and Melbourne
producing good earnings.
Educational collaboration partners
EduCo and Keypath (online)
grew substantially. EduCO and
Southern Cross expanded to a
new campus site in Perth, with
a particular focus on building
market share for postgraduate
programs from the Asian and
Indo-Pacific regions.
At its November 2017 meeting,
the University Council adopted
a historic, unanimous
resolution in favour of
Australian Marriage Equality.
4 Southern Cross University Annual Report 2017
Strategic
Plan
2016 –
2020
Values
Collegiality
We demonstrate collegiality
through:
Openness and Respect
• Being open with each other
and open in our thinking
• Saying what we believe and
doing it in a constructive
and respectful manner
• Engaging with diverse
cultural and Indigenous
perspectives in both global
and local settings.
Collaboration and Trust
• Working as a team, drawing
on combined strengths to
meet our shared goals
• Trusting our colleagues to
challenge us in a positive
manner, and supporting
each other
• Engaging with our local and
global communities and
partners for mutual benefit.
Integrity
We demonstrate integrity
through:
Honesty and Ethical
Behaviour
• Being truthful in all our
dealings
• Acting consistently with
what is said and the
principles held
• Pursuing practices that
develop the social,
economic, cultural and
environmental sustainability
of our University, and local
and global communities
• Advancing human rights
and our commitment to
providing opportunities
for students and staff in
an inclusive, culturally
safe environment.
Drive and Accountability
• Striving to ensure the
University’s ongoing
success
• Having the drive and
commitment to innovate
based on rigorous analysis
• Being accountable for our
individual and collective
actions and for the
performance of those
we lead.
Vision
Southern Cross University
will be recognised for
enriching our communities
through the excellence
of our scholarship and
the achievements of
our graduates.
Mission
We equip our students to
live a life they value and to
be effective global citizens.
We do this by creating
inspirational and engaged
learning experiences. We
create and apply knowledge
in partnership with our
communities in fields that
are regionally relevant and
globally significant.
Southern Cross University Annual Report 2017 5
6 Southern Cross University Annual Report 2017
Strategic
Plan
2016 –
2020
Southern Cross University Annual Report 2017 7
Goal two: We will
strategically grow
our research profile,
building a sustainable
culture of research
excellence.
Goal one: We will
equip our students
for diverse futures
and global careers
that enrich society.
Goal three: We will
pursue targeted
growth to ensure a
sustainable future.
Goal five: We will
transform our service
delivery, building a
culture among our
professional and
academic staff of
providing the
highest level of
flexible support.
Our Goals
Goal four: We will
create distinctive
opportunities for
engaged learning
and research, as
a hallmark of the
Southern Cross
experience.
At a glance 2017
Total Number of Students
Total (Persons) 17,191
Total (EFTSL) 10,231
Students (persons) by location
Lismore campus 2,705
Gold Coast campus 4,115
Coffs Harbour campus 1,216
Other Australian locations 2,124
Online 6,457
Offshore 574
International Students (Persons) 3,525
Onshore 2,964
Offshore 561
Total Staff (FTE)* 839.7
Academic Staff (FTE) 313.2
Professional Staff (FTE) 526.5
- The total FTE figure does not include Sessional or Casual FTE
Source: MIS Government Student Statistics Cube and MIS Government Staff Cube
8 Southern Cross University Annual Report 2017
Teaching
and Learning
The Foundations of University
Teaching Practice program and
integrated webinar presentations
strengthened professional
development in addition to
the learning support provided
by projects for embedding
academic skills in curricula,
increased awareness of academic
integrity and additional academic
support for the new Assessment
Policy. Learning technologies
transformed teaching and
learning support through online
study guides, eLearning unit
design models and delivery of
study support during and after
business hours as well as through
new mobile applications. With
new University branding, a
fresh suite of online referencing
video resources and recorded
workshop sessions provided
the highest levels of flexible
study support to engage our
diverse students.
Teaching Symposium
The annual Scholarship of
Teaching Symposium was held on
11 October at Gold Coast campus.
The theme, ‘Transformation and
Change’, provided an opportunity
for staff to share their scholarship
of teaching and reflections on
practice. The keynote presenter
was Associate Professor Phillip
Dawson presenting ‘Assessment:
Myths, evidence and possibilities’.
Staff contributed a further 27
presentations, three roundtable
discussions and six posters.
The 91 delegates voted the Best
Presentation award to Anne
Bellert for ‘Fine-tuning feedback:
A scaffolded approach’. The
Steering Group awarded the Most
Thought-Provoking Contribution
to Peter Cook for ‘Presence in
the online environment’ and
Best Poster to Leanne Baker for
‘Embedding a careers mindset
into the curriculum’.
In 2017, the Centre for
Teaching and Learning
expanded support across
campuses and academic
schools through a
distributed model of
innovative strategies.
Southern Cross University Annual Report 2017 9
Learning technologies transformed
teaching and learning support
through online study guides,
eLearning unit design models
and delivery of study support.
Visiting Scholars
A key part of the teaching and
learning strategy is to bring
higher education researchers,
thinkers and practitioners to
Southern Cross University. In
2017, a highlight was the visit
by Associate Professor Phillip
Dawson, Associate Director
of the Centre for Research
in Assessment and Digital
Learning (CRADLE), Deakin
University. In addition to
presenting the keynote address
at the Scholarship of Teaching
Symposium, he led two
workshops on assessment the
following day.
Australian Awards for
University Teaching
Citations for Outstanding
Contributions to Student
Learning
Citations are awarded
to individuals and teams
demonstrating an outstanding
contribution to student learning,
student engagement, or the
overall student experience.
2017 Citations for
Outstanding Contributions
to Student Learning
Brendan Kelaher and Anna
Scott, School of Environment,
Science and Engineering
For creating a teaching-industry
nexus that enriches student
learning and provides the skills
needed for a successful career
in marine management.
COMPASS Team: Andrew
Woods, Michael Grande, Fiona
Lotherington, Paula Steffensen
and Theane Theophilos, School
of Health and Human Sciences
For the COMPASS program:
Fostering Peer Assisted
Learning communities in clinical
laboratories which enhance
student confidence, clinical skill
acquisition, leadership skills and
professional socialisation.
Christos Markopoulos, School
of Education
For inspiring and empowering
beginning teacher-education
students in a large-enrolment,
first-year mathematics discipline
unit, through innovative
teaching and being an
enthusiastic and encouraging
educator.
2017 Citations for
Excellence in Student
Engagement
Mandy Hughes, School of Arts
and Social Sciences
For creating a supportive space
where online Social Science
students can critically engage in
sociological ideas as members
of a compassionate and wellinformed
learning community.
Emma Kearney, School of Arts
and Social Sciences
For engaging first year students
with their transition to university
through a supportive classroom
environment that promotes
student wellbeing and a passion
for learning.
Nick Mattingly, School of Arts
and Social Sciences
For cultivating empathy in
students by engendering
critical self-reflection in the
arts and humanities.
Kayleen Wood, School of
Business and Tourism
For engaging first year students
with their transition to university
through a supportive classroom
environment that promotes
student wellbeing and a passion
for learning.
Teacher Commendations
In 2017 staff and students
were invited to submit teacher
commendations of 50-200
words for teachers they
considered outstanding.
These complimentary
comments were forwarded to
the individual or team as well
as their School. In total, 304
commendations were received
for 171 unique individuals and
22 groups of staff.
Dr Rob Garbutt, School of Arts
and Social Sciences
For enabling students in the
arts and social sciences to
successfully make the transition
into university culture as
beginning students and as
beginning researchers.
Vice Chancellor’s Awards for Teaching
10 Southern Cross University Annual Report 2017
These foundations, and a
commitment to investment in
key infrastructure, have led to the
development of demonstrated
research excellence. In the
2015 Excellence in Research for
Australia (ERA) national report
our research quality was rated
at world standard and above
in 24 key areas, up from 10 in
ERA 2012. These areas include
geochemistry, oceanography,
environmental science and
management, zoology, crop
and pasture production, forestry
sciences, ecology, fisheries
sciences, civil engineering,
resources engineering
and extractive metallurgy,
complementary and alternative
medicine, nursing, human
movement and sports science,
tourism, education and policy
and administration.
As a relatively young institution
we have managed to build a
portfolio of quality research
outputs, and this have facilitated
a growth in our research income.
Simultaneously, we have fostered
stakeholder linkages which
has also resulted in engaged
programs that deliver practical
outcomes. Our researchers
are key to this excellence,
and we remain committed
to their development by
offering a suite of professional
development opportunities with
the establishment of a Mid-
Career Researcher Development
Program. These programs are
aimed to target each career
stage ensuring we invest in the
development of new research
leaders and researchers who
are capable of developing and
managing large collaborative
projects which deliver solutions
for real world problems.
Opportunities to extend our
research training programs
continues to be central to
building a sustainable research
environment, and underpinning
the capacity of the University as
a whole.
It has been a combination
of leadership, capacity and
commitment, which has allowed
Southern Cross University to
develop a strong foundation
for research excellence.
This combination has ensured
that we have been able to secure
income through competitive
funding schemes and other
sources by which we can
support the human and physical
infrastructure necessary to
produce research outcomes.
During 2017 our Centre for
Organics Research, a joint
initiative with NSW Department
of Primary Industries, was
established as a multidisciplinary
entity and is now laying
down a research direction in
collaboration with the growing
network of industry members.
Alongside this, we continue to
drive growth and collaboration
through our existing research
strengths in our academic
schools and the following
research centres:
• Centre for Children and
Young People
• Southern Cross GeoScience
• Centre for Coastal
Biogeochemistry Research
• Forest Research Centre
• Marine Ecology Research
Centre
• National Marine Science Centre
• Southern Cross GeoScience
• Southern Cross Plant Science
Research
As an institution
Southern Cross
University embraces
opportunities to
be a world leader
in research. As our
national framework
continues to shift we
have responded by
laying a foundation
for a new strategic
direction which will
underpin the growth
of our overall research
excellence and impact.
The move nationally to
formally encourage and
measure engagement
and impact comes at
a critical time in our
history, and reflects that
our research has grown
alongside the interests
of the stakeholders
in the regional
footprints of our three
main campuses.
Southern Cross University Annual Report 2017 11
12 Southern Cross University Annual Report 2017
Engagement
Our Alumni Community
Each year we welcome more
members into our Alumni
community, a community
now greater than 60,000
in number. As our Alumni
community includes graduates
of our predecessor institutions,
maintaining up to date contact
details is a constant focus. The
number of contactable alumni has
increased from 43% in 2016 to
61% in 2017. This makes the total
number of contactable alumni
- This is an increase of both
new alumni members and lost
alumni members.
Our flagship annual gala event,
the Alumni of the Year Awards. A
record number of 58 nominations
were received from all academic
schools and colleges. The Awards
celebrated the outstanding
achievements from across our
Alumni community with 150
alumni, family and friends in
attendance in the Enterprise Lab
at the Lismore campus.
Student Scholarships
Since its first inception in 1994,
the Rising Stars Scholarship
Program has consistently
provided hundreds of students
with access to higher education.
Students who may not have
had the means to follow their
educational dreams, were given
the opportunity to do so through
the financial support of our
generous donors.
We celebrated our generous
scholarship donors and the
achievements of the student
recipients at scholarship
ceremonies at our Lismore,
Coffs Harbour and Gold Coast
campuses. The total number of
scholarships remained constant
at 37 supporting a total of 63
recipients.
Workplace Giving
Creating a culture of giving
across the entire Southern Cross
family was identified as a strategic
priority by University Council.
This emphasis reflects the deep
commitment staff and students
demonstrate to being actively
engaged in issues experienced by
the communities in which we live
and work.
A Giving University program was
piloted with staff in the lead up
to Christmas and this program
raised almost $10,000 as the
first investment in the newly
created Student Opportunities
Fund. Staff from our finance and
human resources teams reached
the significant milestone of
$100,000 in personal donations
to the Westpac Rescue Helicopter
Service.
Sponsorships
The University is proud to
support our local communities
through sponsorship of events
and activities that are mutually
beneficial to our region and the
University. Our giving in the form
of sponsorships spans in-kind
use of the University’s assets
through to the provision of cash
sponsorship to a select number
of organisations across the
University’s campus footprint.
Major sponsorships include the
Byron Writers Festival and Gold
Coast Marathon.
Sponsorship of local not-for-profit
organisations gives much needed
support back to our community
through business awards;
The engagement
portfolio continued
to bring to life the
University’s vision to
‘enrich our communities
through the excellence
of our scholarship and
the achievements of
our graduates’. The
establishment of a new
executive portfolio
under the leadership of
the Pro Vice Chancellor
(Engagement) reflected
the strategic importance
placed on partnering
with communities
for mutual benefit and
public impact.
Southern Cross University Annual Report 2017 13
providing opportunities for unwell
and disadvantaged children and
young people; prizes for high
school students; and fostering of
healthier communities in sporting
activities such as Indigenous
rugby league and masters games.
Live Ideas
Developed in 2015 to increase
connectivity between the needs
of our communities and our
teaching and research strengths,
the Live Ideas program has
continued to grow. There has
been an overwhelming response
to the program from industry and
community, with 116 projects and
155 applications from staff and
students to join these projects
in 2017. Live Ideas (projects) were
submitted by partners located
in the Northern Rivers
of NSW (44 per cent), South East
Queensland (15 per cent), the
Mid North Coast of NSW (13 per
cent), others across Australia and
even international participants.
Projects have been completed
by students ranging from whole
class graphic design briefs to
more in-depth research projects
at the postgraduate level.
Excellence In
Engagement Awards
In 2017, the seventh annual
Southern Cross Excellence
in Engagement Awards were
celebrated in October. The
awards acknowledge the
contribution of University staff
and community partners who
have enriched our communities
during the previous 12 months
through engaged teaching
and research. Award recipients
epitomise the mission and
values of Southern Cross and
demonstrate exemplary active
citizenship through vision,
leadership and excellence in
scholarship and service. Awards
were conveyed in the categories
of Community Impact, Engaged
Learning and Engaged Research.
Southern Cross
Enterprise Lab
In July, the Honourable Gladys
Berejiklian MP and Premier of
NSW launched the Southern
Cross Enterprise Lab as a flagship
facility for the Northern Rivers
focused on cultivating future
entrepreneurs. The Enterprise
Lab is located in the top floor of
A Block, the site of the former
library on the Lismore campus.
The NSW Government’s Boosting
Business program funded the
refurbishment and associated
business engagement programs.
It forms part of the NSW
innovation ecosystem as a 12-
node network comprising all NSW
universities and the CSIRO.
Flagship National Pilot
Program – Farming Together
As a flagship industry
engagement initiative, the
national Farm Co-operatives
and Collaboration Pilot Program
(known as ‘Farming Together’)
reached in excess of 19,000
primary producers, eclipsing
the target of 2,000 by end of
program. Within its first 12 months
of operation, from a $9.21m
Commonwealth investment, the
program generated $20.45m of
value-add to production, $14.3m
in household income and 131 fulltime
equivalent jobs.
This game-changing program
provides farmers, fishers and
foresters with access to more
than 200 specialist advisers to
enhance knowledge, skills and
practical aspects of strengthening
their farm businesses. The
program is lifting awareness into
how cooperatives, collective
strategies and supply chain
negotiations improve farmers’
returns. It offers advice on
suitable business models
and collaboration options for
marketing, and offers specialist
business, legal and financial
advice. It helps primary producers
improve returns by capitalising on
opportunities, strengthening their
financial position, becoming more
attractive to investors, improving
their bargaining power and
operating beyond the farm gate.
Farming Together’s legacy
projects include a 100 per cent
farmer-owned mutual for crop risk
products and a national online
auction system for fishing co-ops.
Creating a culture of giving across the entire Southern Cross family
was identified as a strategic priority by University Council.
14 Southern Cross University Annual Report 2017
Organisational Initiatives
A staff engagement survey was
undertaken in 2017 capturing the
views, perceptions and feedback
on workplace issues from over
700 employees. This was the first
engagement survey offered since
2010 and the feedback will be
used to develop and implement
initiatives and activities to
improve the culture and morale
of staff.
The Southern Cross University
Emeritus Faculty was launched
this year with the aim of
providing an opportunity for our
academic community to continue
associating with the scholarly,
creative, and cultural life of the
University upon retirement.
There have been 14 applications
approved and the convening
of the Emeritus Faculty and its
activities is being coordinated
by the Deputy Vice Chancellor
(Research).
A comprehensive review of the
annual employee performance
review and planning process
was undertaken by HR Services.
Based on feedback from staff
through focus groups, a new
process, documentation and
policy amendments were
implemented. “Performance
Review and Planning” now
focuses more strongly on the
direct conversations about
performance, achieving goals
and career planning. The priority
of building the capability and
confidence of staff to engage
positively in this important
process is also continuing.
Staff Development
and Performance
The University continued to
develop the capabilities of
staff through Professional
Learning programs, Study
Assistance and the Special
Studies Leave program.
Three senior positions were
recruited during 2017 – the Pro
Vice Chancellor (Students) and
Dean of Education; Director of
Property Services; and Dean
of Business and Head of Gold
Coast Campus.
The full breakdown of current
Southern Cross University staff
is included at Appendix A. The
number of senior executives is
included at Appendix B.
Workplace Health and Safety
The health and wellbeing
of employees, students and
visitors continued as a strong
priority for the University. There
was a consistent uptake of the
University’s wellbeing initiatives
and support with over 750
employees taking advantage of
free flu vaccinations, counselling
services, wellbeing coaching
and subsidised gym and pool
memberships and natural
therapy consultations. The new
Employee Assistance Program
was introduced and achieved an
increase on forecasted utilisation
rate by over 30 per cent.
Fifteen workers’ compensation
claims were received during 2017.
A proactive approach by the
University in injury management
resulted in only four of the 15
claims resulting in time off work.
Support provided to injured
workers by the University’s return
to work coordinator and external
rehabilitation providers has
enabled a faster return to work
and pre-injury duties.
Both scheduled and on-request
inspections were undertaken
of a number of work areas
throughout the University,
with particular focus on
high-risk areas. Results and
recommendations were reported
and further support provided
in areas of need identified.
The work, health and safety
training programs attracted
over 150 attendees in 2017.
Programs included Mental Health
Awareness, First Aid, Dangerous
Goods, Emergency Warden,
Spill Response, Manual Handling,
Radiation of Sealed Sources,
Safety Culture, Laboratory Safety
and Safety Support Officer.
Workforce Diversity
The Southern Cross University
Equity and Diversity Plan 2016-
2020 plays a significant role
in leading the University’s
commitment to address issues
of student and staff equity,
social inclusion and diversity.
Key achievements in 2017
included:
• Participated in the Science in
Australia Gender Equity (SAGE)
pilot of the Athena SWAN
Charter Australia.
• Continued to deliver the
Understanding Gender and
Sexuality Diversity professional
development workshops for all
staff.
• Continued to deliver the
Courageous Conversations
about Race program across the
People
Southern Cross University Annual Report 2017 15
University with workshops
for supervisors, managers
and all staff.
• Continued to deliver equal
opportunity and antidiscrimination
training as
a compulsory part of new
staff induction.
• Promoted and affirmed staff
and student awareness of
equal opportunity and cultural
diversity through cultural
celebrations, workshops,
promotional materials and
events.
• Continued to implement key
strategies from the University’s
Disability Action Plan 2014-2017.
• Commenced implementation
of the University’s Aboriginal
and Torres Strait Islander
Employment Strategy 2016-
2020.
Key strategies for 2018
• Undertake a refresh of the
University’s Equity and Diversity
Plan 2016-2020.
• Implement an Ally Program.
• Develop a new Disability
Action Plan.
The trends in the representation
of employees in diversity groups
is included at Appendix C.
Disability Inclusion
Action Plan
In line with the University’s
Disability Action Plan 2014-
2017, the Student Access and
Inclusion team provides staff
with disability awareness training
on an annual basis, focusing on
developing a deep understanding
of the intersectional nature of the
disability experience.
The Disability Action Plan will be
updated during 2018 with input
from the disability community,
including those from culturally
diverse backgrounds.
Multicultural Plan
Focus Areas Outcomes - Service delivery
The proportion of domestic
students speaking a language
other than English in the home
grew to 3.9 per cent, up from
3.2 per cent in 2015. Students are
required to meet a level of English
language proficiency. A range of
support services were available
for all students, including
counselling, medical services,
childcare services, support for
students with disability, loans,
career advice and pastoral care
and support.
The UniMentor peer mentoring
program was offered to all first
year undergraduate students
studying on campus or online.
Eight percent of mentees
were from culturally diverse
backgrounds and 17 percent
were Aboriginal and Torres Strait
Islander students.
Settlement Services
In 2017 the University, together
with TAFE NSW and Anglicare
collaborated to offer the “3Es to
Freedom (Education, Employment
and Empowerment)” – a program
for women from a refugee
background in the Coffs Harbour
region.
Fifteen students graduated
from the Graduate Certificate
of Australian Nursing (EPIQ
– Education Program for
Internationally Qualified Nurses),
designed for internationally
qualified registered nurses who
wish to practise as a registered
nurse in Australia.
For Refugee Week, the University
through the Equity and Diversity
office, collaborated with the
African refugee community and
Saint Vincent de Paul Society’s
North Coast Settlement Service
to create the “I’m A Local…”
poster project. The project
provided opportunities to better
understand the lived experience
of people who come to Australia
as refugees, with displays
featured in more than 40 local
businesses, organisations and
schools. The project won the
University’s 2017 Excellence in
Engagement: Community Impact
award. It has subsequently
been embedded in a School of
Arts and Social Sciences unit,
“Borderlands”, along with the
development of other resources.
Languages Services
The Academic Culture, Critical
Thinking and English Study
Skills program (ACCESS)
continued during 2017 for
Australian permanent residents
from refugee and non-English
speaking backgrounds. This
pathway program offered the
opportunity to undertake a
specialised preparatory course
and potentially qualify for entry to
an award course at the University. - Equity and Diversity
The University’s Equity and
Diversity Plan 2016-2020 includes
strategies on supporting and
promoting an inclusive culture for
students and staff, and embracing
a knowledge of, and respect for,
equity and diversity.
The health and wellbeing of employees, students and visitors
continued as a strong priority for the University.
16 Southern Cross University Annual Report 2017
The plan will be updated in
2018 and will continue to reflect
the values articulated in the
University’s Strategic Plan 2016-
2020 including:
• Engaging with diverse cultural
and Indigenous perspectives in
both global and local settings.
• Engaging with our local and
global communities and
partners for mutual benefit.
• Advancing human rights and
our commitment to providing
opportunities for students and
staff in an inclusive, culturally
safe environment. - Leadership
The Equity and Diversity
Committee was responsible
for ensuring comprehensive
integration of equity and cultural
diversity matters across the
University in 2017. The Committee
was chaired by the Pro Vice
Chancellor (Students), with
diverse membership.
The University’s Inclusive
Language Guidelines (which
include language relating to
culture, race and ethnicity) were
reviewed and updated.
The Courageous Conversations
About Race anti-racism and
cultural competency staff
training program was held three
times, with 33 participants. It
specifically addresses a model of
cultural competence training for
the Australian higher education
context. Equal Opportunity
training (EO Online) was a
compulsory part of induction for
all new employees, with 197 staff
completing the main module
during 2017. - Engagement
During 2017, the annual Diversity
Calendar was actively promoted
across the University community.
The University’s annual Fusion
Festival was held in September.
Themed Unity In Diversity: The
Coming Together of Cultures
and Communities, the festival
provided opportunities to
celebrate cultural diversity.
Students from culturally diverse
backgrounds were employed by
the University to help coordinate
festival events and activities.
Strategies for 2018 include:
• Refreshing the Equity and
Diversity Plan 2016 -2020.
• Offering student peer
mentoring to support students
from non-English speaking
backgrounds in their transition
to University.
• Encouraging all staff to access
relevant training including
equal opportunity training (EO
Online) and anti-racism training
(Courageous Conversations
About Race).
• Promoting a University
culture (including online) that
is free from discrimination
and supportive of diversity,
to attract and retain staff
and students from culturally
and linguistically diverse
backgrounds.
• Delivering cultural festivals and
diversity symposia to students,
staff and the wider community
to promote diversity and
harmony, in partnership with
people from culturally diverse
backgrounds.
• Providing alternative entry
pathways to encourage
participation of students from
culturally and linguistically
diverse backgrounds.
People
Southern Cross University Annual Report 2017 17
Student
Feedback
and
Consumer
Response
Complaints Framework
The University’s Complaints
Framework recognises that many
complaints can be resolved
informally with a relevant
member of staff. When this is not
possible, students or members
of the public can lodge a formal
complaint with the Complaints
Assistance Officer under the
Complaints Policy – Students
and Members of the Public.
An important function of the
Complaints Assistance Officer is
to provide advice and assistance
to students about their options.
During 2017, a total of 116
complaints were received by the
Complaints Assistance Officer.
Fifty-nine complaints were
resolved informally and 57 were
formalised and actioned pursuant
to the Complaints Policy. Of the
formalised complaints:
(a) twenty complaints were
resolved to the student’s
satisfaction and included
recommendations made for
changes and improvements to
University procedures;
(b) two were not upheld and
advice and information was
provided to the complainant as
to the reasons for the decision;
(c) eight complaints were
referred to be dealt with
under other policies;
(d) one complaint was withdrawn;
and
(e) twenty-six complaints have
been referred for investigation
and are yet to be finalised.
The majority of these
complaints relate to one
issue and are being dealt
with collectively.
Academic Appeals
The Academic Board
Appeals Committee
is a Committee of the
University’s Academic Board
that assists in assuring
quality and integrity in
academic outcomes for
students by considering
potential irregularities in
academic assessment and
progression processes.
Academic Appeal
Committee Determinations
Appeals 2017
Considered 18
Successful 1
18 Southern Cross University Annual Report 2017
Southern Cross University Annual Report 2017 19
The University’s principal
functions for the promotion
of its object are:
(a) the provision of facilities for
education and research of
university standard, having
particular regard to the needs
of the North Coast region of
the state;
(b) the encouragement of the
dissemination, advancement,
development and application
of knowledge informed by
free inquiry;
(c) the provision of courses of
study or instruction across
a range of fields, and the
carrying out of research,
to meet the needs of the
community;
(d) the participation in public
discourse;
(e) the conferring of degrees,
including those of Bachelor,
Master and Doctor, and
the awarding of diplomas,
certificates and other awards;
(f) the provision of teaching and
learning that engages with
advanced knowledge and
inquiry; and
(g) the development of
governance, procedural
rules, admission policies,
financial arrangements and
quality assurance processes
that are underpinned by the
values and goals referred
to in the functions set out
in this subsection, and that
are sufficient to ensure the
integrity of the University’s
academic programs.
The University is governed by a
Council to which the University’s
Chief Executive Officer, the Vice
Chancellor, reports. The Council
is chaired by the Chancellor and
has 13 members: the Chancellor,
the Vice Chancellor, the Chair
of the Academic Board, two
members appointed by the
Minister, four members appointed
by Council, three elected staff
members and one elected
student member.
The Academic Board is the
principal academic body
responsible for establishing and
maintaining the highest standards
in teaching and learning and
research in the University.
It is also the primary advisory
committee of the Council on
academic matters.
Governance
CHARTER
Southern Cross
University was
established under
the Southern Cross
University Act 1993
(NSW). Under s. 6 of
the Act the object of
the University is the
promotion, within the
limits of the University’s
resources, of scholarship,
research, free inquiry, the
interaction of research
and teaching, and
academic excellence.
20 Southern Cross University Annual Report 2017
ORGANISATIONAL STRUCTURE
As at 31 December 2017
University Council
Vice Chancellor and President
Head of Coffs Harbour Campus Governance Services
HR Services Marketing, Publications and Media
Deputy Vice Chancellor (Academic)
Centre for Teaching and Learning Planning, Quality and Review
SCU College School of Arts and Social Sciences
School of Environment, Science and Engineering Gnibi College of Indigenous Australian Peoples
School of Health and Human Sciences School of Law and Justice
School of Business and Tourism
Vice President (Global)
SCU International Enterprise
Deputy Vice Chancellor (Research)
Office of Research Graduate School
Southern Cross Plant Science Environmental Analysis Laboratory
Southern Cross Geoscience Centre for Organics Research
Vice President (Operations)
Technology Services Property Services
University Library Student Administration Services
Vice President (Financial)
Financial Operations Management Accounting
Pro Vice Chancellor (Engagement)
Alumni and Giving Campus Services
Strategic Projects Engagement and Partnerships
Pro Vice Chancellor (Students) and Dean of Education
School of Education Student Success
Employability Equity and Diversity
Governance
Southern Cross University Annual Report 2017 21
UNIVERSITY COUNCIL MEMBERS FOR
THE PERIOD 1 JANUARY 2017 TO 31
DECEMBER 2017
Chancellor and Chair of Council
Mr Nicholas Burton Taylor AM, BEc(Syd), FCA,
FCPA, FFin, FAICD
Current term expires 25 September 2018
Deputy Chancellor from 7 July 2017
Mr Murray d’Almeida FAICD
Ministerially appointed member
Current term expires 31 December 2017
Vice Chancellor
Professor Adam Shoemaker BA (Hons)
(Queen’s Canada), PhD (ANU)
Current term expires 23 September 2021
Chair of Academic Board
Prof Mark Hughes BSW(Hons)(JCU), PhD(UQ)
Current term expires 31 December 2020
Dr Austin Curtin MB MD BS(Syd), FRACS
Council appointed member
Current term expires 11 September 2018
Professor William Boyd BSc(Hons)(StAnd),
MEdLead(HigherEd)(MACQU), DSc(StAnd),
PhD(Glas)
Elected member – academic staff
Current term expires 9 September 2018
Ms Julie Granger BA/LLB(Hons)(SCU),
LLM(UNSW)
Council appointed member
Current term expires 9 November 2018
Ms Toni Ledgerwood ADipAppSc(LibTech)(ECU)
Elected member – non-academic staff
Current term expires 9 September 2018
Ms Lynda O’Grady BCom(Hons)(UQ), FAICD
Council appointed member
Current term expires 16 February 2021
Associate Professor Adele Wessell BA(Hons)
(UNSW), PhD(UNSW), GradCertHEd(L&T)(SCU)
Elected member – academic staff
Current term expires 9 September 2018
Mr Michael Jones DipCommServ(Mental/Hlth)
NSW TAFE
Elected Student representative member –
student
From 10 September 2016. Current term expires
9 September 2018
Council Secretary
Ms Belinda Atkinson BComm(UQ), LLB(UQ)
From 21 August 2017
Mr Nicholas Hyde BEcSocSc(Hons)(Syd)
To 20 August 2017
The following members’ appointments
concluded during 2017
Mr Neale Genge BBus (SCU) MPA (SCU)
Council appointed member (Graduate)
Resigned 28 February 2017
Mr Christian Lugnan BBus(SCU), CPA, MAICD
Council appointed member (Graduate)
From 4 September 2017
Resigned 8 November 2017
Mr Anthony Matis BBus (SCU), FCPA
Council appointed member (Graduate)
Resigned 13 June 2017
Chair of Academic Board
Professor Susan Nancarrow BAppSc(Pod)
(QUT), MAppSc(QUT), PhD(ANU), GAICD
To 21 August 2017
Deputy Chancellor to 7 July 2017
Mr John Shanahan MCom(Hons)(NSW), FCA,
MAICD, SF Fin
Council appointed member
Term expired 3 September 2017
Ms Margot Sweeny MEc(NE), BBus(NRCAE)
CPA, SA Fin, FAMI, MACS CT, JP
Council appointed member
Term expired 17 February 2017
Frequency of meetings and members’
attendance is included at Appendix D.
EXECUTIVE OFFICERS
Vice Chancellor
Professor Adam Shoemaker BA (Hons) (Queen’s
Canada), PhD (ANU)
Deputy Vice Chancellor (Research)
Professor Geraldine Mackenzie LLB(QIT),
LLM(QUT), PhD(UNSW), Barrister-at-law,
FAIM, FQA
To 1 September 2017
Professor Susan Nancarrow BAppSc(Pod)
(QUT), MAppSc(QUT), PhD(ANU), GAICD
From 4 September 2017
Management and Structure
22 Southern Cross University Annual Report 2017
Deputy Vice Chancellor (Academic)
Professor Andrew McAuley BA(Hons) PhD
(Nottm) MAM MCIM
To 31 December 2017
Professor John Jenkins GAICE, BA(Hons)(NE),
PhD(UNE)
From 10 July 2017
Executive Director, Community and Corporate
Relations
Ms Helen Hughes BA(Qld)
To 3 July 2017
Pro Vice Chancellor (International and
Enterprise)/Vice President (Global)*
Mr Chris Patton BA(UBC), MA(Guelph)
To 25 August 2017
Mr Monty Singh BSci(OS), GradDip(CompScI)
(UC), MIT(Macq),
From 28 August 2017
Executive Director, Information and Physical
Resources/Vice President (Operations)*
Mr Allan Morris GradDipInfoTech(Monash)
Executive Director, Financial and Human
Resources/Vice President (Finance)*
Travis Walker B Bus (Accounting)(RMIT),
MBA(LaT)
Pro Vice Chancellor (Engagement)*
Mr Ben Roche BSc(Hons)(UNSW), Med(UTS)
From 1 June 2017
Pro Vice Chancellor (Students) and Dean of
Education
Prof Nan Bahr DipEd(Adelaide), BA(Flinders),
BEd, BMus(Adelaide), MEd(UQ), PhD(UQ)
From 25 September 2017
*New Executive structure implemented 1 June 2017.
Legal Change
During 2017, changes were
made to Acts and subordinate
legislation and judicial decisions
which affected the University or
users of the University’s services
as follows:
Education Legislation Amendment
(Provider Integrity and Other
Measures) Act 2017 (Cth)
This Act amended the following
legislation:
• Education Services for Overseas
Students Act 2000 (Cth) –
amended to strengthen fit and
proper person and financial
viability requirements, and
extend reporting requirements
and information sharing
provisions.
• Tertiary Education Quality and
Standards Agency Act 2011
(Cth) – amended to introduce
additional considerations
into the assurance activities
of the Tertiary Education
Quality and Standards Agency,
including fit and proper person
requirements and strengthened
financial viability requirements.
• Higher Education Support Act
2003 (Cth) – amended to detail
monitoring and regulatory
powers including civil penalties
in cases of non‑compliance,
and apply additional
regulations to non-university
higher education providers.
National Code of Practice for
Providers of Education and
Training to Overseas Students
2018 (National Code 2018)
The National Code of Practice
for Providers of Education and
Training to Overseas Students
made under the Education
Services for Overseas Students
Act 2000 (Cth) sets nationally
consistent standards that govern
the protection of international
students and delivery of courses
to those students by providers
registered on the Commonwealth
Register of Institutions and
Courses for Overseas Students
(CRICOS).
The National Code 2018 was
released in September 2017 with a
commencement date of 1 January - The National Code 2018
replaced the National Code of
Practice for Providers of Education
and Training to Overseas Students
2017 with the key changes
including:
• requiring more detail on a
student’s course and refund
arrangements in the written
agreement between students
and providers;
• strengthening arrangements
for the care and welfare of
students under the age of 18;
• greater guidance for providers
on the circumstances in which
student transfer requests
should be granted; and
• strengthening the provisions to
monitoring overseas students’
course attendance and
progress.
Fair Work Amendment (Protecting
Vulnerable Workers) Act 2017 (Cth)
This Act made the following
changes to the Fair Work Act
2009 (Cth):
• increased penalties for ‘serious
contraventions’ of workplace
laws;
• clarified that employers
can’t ask for ‘cashback’ from
employees or prospective
employees;
• increased penalties for
breaches of record-keeping
and pay slip obligations;
Southern Cross University Annual Report 2017 23
• employers who don’t meet
record-keeping or pay
slip obligations without a
reasonable excuse will need
to disprove wage claims made
in a court;
• strengthen powers for the Fair
Work Ombudsman to collect
evidence in investigations; and
• new penalties for giving false
or misleading information to
the Fair Work Ombudsman, or
hindering or obstructing its
investigations.
Independent Commission against
Corruption Amendment Act
2016 (NSW)
This Act was passed in November
2016 and came into effect on
7 August 2017. It amended the
Independent Commission against
Corruption Act 1988 (NSW)
with respect to the structure,
management and procedure of
the Independent Commission
Against Corruption.
Universities Legislation
Amendment (Planning
Agreements) Act 2017 (NSW)
The Act amended the Southern
Cross University Act 1993 (NSW) to
permit the University to enter into
voluntary planning agreements
under the Environmental Planning
and Assessment Act 1979 without
the approval of the Minister other
than where it relates to land
acquired by the University for
nominal or less than marked value
to be dedicated free of cost.
Statute Law (Miscellaneous
Provisions) Act 2017 (NSW)
This Act amended the Southern
Cross University Act 1993 (NSW)
to more clearly delineate the
ambit of provisions that confer
powers on the Council with
respect to the control and
management of the financial
affairs of the University and the
acquisition and management
of property.
Work Health and Safety and
Other Legislation Amendment
Act 2017 (Qld)
The Work Health and Safety
Act 2011 (Qld) (“the WHS Act”)
applies to the University’s Gold
Coast campus. The Work Health
and Safety and Other Legislation
Amendment Act 2017 (Qld) made
a number of changes to the
WHS Act and related legislation
including:
• creating an industrial
manslaughter offence;
• establishing an independent
statutory office for work health
and safety (WHS) prosecutions;
• prohibiting enforceable
undertakings being accepted
for any contraventions of the
WHS Act involving a fatality;
• reintroducing the role of
Workplace Health and Safety
Officers;
• restoring the status of Codes
of Practice; and
• Increasing support for Health
and Safety Representatives.
Higher Education Standards
Framework (Threshold
Standards) 2015
These Standards, made under
the Tertiary Education Quality
Standards Agency Act 2011 (Cth),
took effect from 1 January 2017.
They prescribe requirements for
the provision of higher education
in or from Australia. The
Standards also provide a model
framework for managing internal
monitoring, quality assurance
and quality improvement.
Privacy and Personal
Information
The University is committed
to ensuring a culture of
understanding and compliance
with its obligation under the
Privacy and Personal Information
Protection Act 1998 (NSW) (“PPIP
Act”) and the Health Records and
Information Privacy Act 2002
(NSW) (“HRIP Act”). During 2017,
the following measures were
taken to support compliance:
• providing staff information
sessions on the operation of
the PPIP and HRIP Acts; and
• providing advice to staff on
the application of the PPIP
and HRIP Acts.
The University received one
application for internal review
under Part 5 of the PPIP Act in
the 2017 calendar year. The
University completed the review
within 60 days from the date of
application and kept the Privacy
Commissioner informed of the
conduct of the review.
The applicant applied to the
NSW Civil and Administrative
Tribunal (NCAT) for a review of the
decision made by the University.
The matter is currently being
considered by NCAT.
Government Information
Public Access
Program for the release
of information
Much of the information the
University provides on its website
is information that the University
voluntarily makes public as it
24 Southern Cross University Annual Report 2017
believes that the public, including
students and other stakeholders,
may have an interest in that
information.
In addition, the University reviews
all information released by it
to an individual as a result of
an access application under
Government Information (Public
Access) Act 2009 (NSW) (“GIPA
Act”) to determine whether it is
in the public interest to make that
information publicly available.
In compliance with s. 7(3) of the
GIPA Act, the University reviewed
its program for proactively
releasing information during 2017
and did not identify any additional
information for release.
Number of access
applications received
In 2017, the University received
two valid access applications
under the GIPA Act. Statistical
information relating to the number
and type of applications received
by the University within the
reporting period is provided in
Appendix E to this Annual Report.
The University partially refused
one application on the basis that
the application was for disclosure
of information which fell within
the categories of information
described in Schedule 1 of the
GIPA Act (i.e. information for
which there is a conclusive
presumption of overriding public
interest against disclosure).
Public Interest Disclosures
The Public Interest Disclosures Act
1994 (NSW) (“PID Act”) establishes
a system for public officials to
report serious wrongdoing.
The University’s Public Interest
Disclosures Policy establishes
an internal system for receiving,
assessing and dealing with reports
of wrongdoing under the PID
Act. The PID Policy is available
to staff on the University’s policy
site. Staff are also provided with
information on reporting corrupt
conduct, maladministration and
serious or substantial waste of
public resources in accordance
with the PID Act in the Code of
Conduct. The Code of Conduct
forms part of staff members’
conditions of employment
and commencing staff must
certify that they have read and
understood the Code of Conduct.
The University’s report in relation
to public interest disclosures
made in 2017 is as follows:
Risk
Management
The University’s approach to
risk management is aligned with
the Australian and New Zealand
Standard for Risk Management
(AS/NZS ISO 31000:2009 Risk
Management – Principles and
Guidelines). Oversight of the
University’s Risk Management
framework is provided by
Council and the Audit and Risk
Management Committee.
In the second half of 2017, a
refresh of the strategic risk
register and associated reporting
framework was completed and
approved by Council. The new
reporting framework provides
more robust reporting on
strategic risk to each Audit and
Risk Management Committee
meeting. In addition, work to
enhance documentation and
management of operational risk
registers was commenced.
Insurance
The University maintained
appropriate insurances for
its property and operations
throughout 2017.
The primary areas of the
University’s program were
renewed through Unimutual
Limited, Austbrokers Canberra
Pty Ltd and Employers Mutual.
These include property
protection, general and products
liability, professional indemnity,
malpractice, clinical trials, cyber,
environmental liability and
workers’ compensation. Other
classes of insurance held include,
but are not limited to corporate
travel, group personal accident
and comprehensive motor vehicle.
New and emerging risks and the
degree to which the University
is exposed to such risks is taken
into account when determining
the limits of insurance, policy
deductibles and classes of cover
during the annual renewal process.
Number of public officials who made Public Interest
Disclosures (PIDs) to the University
0
Number of PIDs received by the University 0
Of PIDs received by the University, number primarily about:
Corrupt conduct
Maladministration
Serious and substantial waste of public money
Government information contravention
N/A
Number of PIDs finalised N/A
(1) PIDs made by public officials in performing their day-today
functions
0
(2) PIDs not covered by (1) that are made under a statutory
or other legal obligation
0
(3) All other public interest disclosures 0
Southern Cross University Annual Report 2017 25
Financial
Performance
The financial statements
include Southern Cross
University as the parent
entity and the consolidated
entity comprising Southern
Cross University and its
controlled entity Southern
Cross Campus Services
Limited (previously
Norsearch Limited).
Southern Cross Campus
Services Limited’s objective
is to provide services and
amenities to students and
staff of the University. Its
principal activities are the
provision of a licenced bar
and on-campus catering
service; gymnasium and pool;
and conferencing facilities.
Review of Operations
Southern Cross University
and its controlled entities
reported a consolidated net
loss of $4.2 million for the
year ending 31 December
2017 (2016: $16.7 million
profit). The University
reported a net loss of $3.8
million (2016: $17.0 million
profit). The 2016 result
included capital grant
revenue of $15.7m.
Net cash from operating
activities was $23.8 million
(2016: $28.2 million).
Total University revenue,
excluding capital grants,
grew by 8 per cent compared
to the previous year while
total expenses rose by 10
per cent. Total salaries and
wages grew
by 6 per cent.
26 Southern Cross University Annual Report 2017
Financial
Statements
Statement of
Comprehensive
Income
29
Statement by
the Members
of Council
27
Statement
of Financial
Position
30
Notes to the
Financial
Statements
33
Income
Statement
28
Statement
of Changes
in Equity
31
Statement of
Cash Flows
32
Independent
Auditor’s
Report
85
Southern Cross University
and Controlled Entities
ABN 41 995 651 524
Financial Statements
for the 2017 Reporting Period
Southern Cross University Annual Report 2017 27
In accordance with a resolution of the Council of Southern Cross University and pursuant to Section 41 C (1B)
and (1C) of the Public Finance and Audit Act 1983, we state that:
(a) The financial statements of Southern Cross University exhibit a true and fair view of the financial position as
at 31 December 2017 and financial performance of the University for the financial year ended on that date;
(b) The amount of Australian Government financial assistance expended during the reporting period was
for the purpose(s) for which it was intended and Southern Cross University has complied with applicable
legislation, contracts, agreements and program guidelines in making expenditure;
(c) The financial statements have been prepared in accordance with Australian Accounting Standards, other
mandatory professional reporting requirements, the provisions of the Public Finance and Audit Act 1983,
Public Finance and Audit Regulation 2015, Australian Charities and Not-for-profits Commission Act (2012),
Australian Charities and Not-for-profits Commission Regulation 2013 and the Financial Statement Guidelines
for Australian Higher Education Providers 2017;
(d) Southern Cross University charged Student Services and Amenities Fees strictly in accordance with the
Higher Education Support Act 2003 and the Administration Guidelines under the Act. Revenue from the fees
was spent strictly in accordance with the Act and only on services and amenities specified in subsection 19
clause 38 (4) of the Act.
In addition, we are not aware at the date of signing these statements of any circumstances which would render
any particulars included in the financial statements to be misleading or inaccurate and there are reasonable
grounds to believe that Southern Cross University will be able to pay its debts as and when they fall due.
Dated 12 April 2018
Statement by
the Members
of Council
31 December 2017
Southern Cross University ABN 41 995 651 524
Southern Cross University ABN 41 995 651 524
The above Income Statement should be read in conjunction with the accompanying notes.
28 Southern Cross University Annual Report 2017
Income
Statement
For the Year Ended
31 December 2017
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Income from continuing operations
Australian Government financial assistance
Australian Government grants 2 100,498 117,505 100,498 117,505
HELP Australian Government payments 2(b) 59,578 55,691 59,578 55,691
State and local government financial
assistance 3 1,628 2 ,143 1,628 2,143
HECS HELP – Student payments 1,944 2,249 1,944 2,249
Fees and charges 4 52,894 41,420 52,894 41,420
Investment revenue 5 906 750 904 749
Royalties, trademarks and licences 852 590 852 590
Consultancy and contracts 6 6,526 5,006 6,526 5,006
Other revenue 7 12,191 10,501 10,594 9,187
Total income from continuing operations 237,017 235,855 235,418 234,540
Share of profit/(loss) on investments
accounted for using the equity method 14 (11) (4) – –
Total revenue and income from continuing
operations 237,006 235,851 235,418 234,540
Expenses from continuing operations
Employee related expenses 8 133,741 126,647 132,000 125,254
Depreciation and amortisation 9 13,218 12,714 13,183 12,681
Repairs and maintenance 3,317 3,089 3,311 3,077
Borrowing costs 583 768 583 768
Impairment of assets 10 1,238 323 1,238 323
Losses on disposal of assets 119 396 113 402
Loss on exchange differences 108 138 108 138
Other expenses 11 88,840 75,007 88,648 74,886
Total expenses from continuing operations 241,164 219,082 239,184 217,529
Net result from continuing operations (4,158) 16,769 (3,766) 17,011
Southern Cross University Annual Report 2017 29
The above Statement of Comprehensive Income should be read in conjunction with accompanying notes.
Southern Cross University ABN 41 995 651 524
Statement of
Comprehensive
Income
For the Year Ended
31 December 2017
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Net result from continuing operations (4,158) 16,769 (3,766) 17,011
Items that may be reclassified
to profit or loss
Gain on revaluation of available for sale
financial assets 21(a) 4,673 1,829 4,673 1,829
Total 4,673 1,829 4,673 1,829
Items that will not be reclassified
to profit or loss
Remeasurement relating
to defined benefit plans 33(e) (141) (2) (141) (2)
Total (141) (2) (141) (2)
Total other comprehensive income 4,532 1,827 4,532 1,827
Total comprehensive income attributable
to members of Southern Cross University 374 18,596 766 18,838
Southern Cross University ABN 41 995 651 524
30 Southern Cross University Annual Report 2017
Statement
of Financial
Position
As At 31 December 2017
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Assets
Current assets
Cash and cash equivalents 12 16,617 20,404 16,545 20,334
Receivables 13 10,587 14,612 11,119 14,780
Inventories 191 129 161 99
Prepayments 2,912 3,028 2,912 3,024
Total current assets 30,307 38,173 30,737 38,237
Non‑current assets
Receivables 13 92,175 87,061 92,175 87,061
Investments accounted for using the equity
method 14 301 312 175 175
Other financial assets 15 15,700 11,027 15,700 11,027
Property, plant and equipment 16 270,997 260,991 270,859 260,851
Intangible assets – 73 – 73
Prepayments 976 942 976 942
Total non‑current assets 380,149 360,406 379,885 360,129
Total assets 410,456 398,579 410,622 398,366
Liabilities
Current liabilities
Trade and other payables 17 18,283 14,873 18,200 14,770
Borrowings 18 2,440 2,440 2,440 2,440
Employee benefit provisions 19 25,903 24,916 25,798 24,842
Other liabilities 20 17,901 13,083 17,860 13,054
Total current liabilities 64,527 55,312 64,298 55,106
Non‑current liabilities
Borrowings 18 7,580 10,020 7,580 10,020
Employee benefit provisions 19 95,751 90,673 95,743 90,655
Other liabilities 20 1,542 1,597 1,542 1,597
Derivative financial instrument – 295 – 295
Total non‑current liabilities 104,873 102,585 104,865 102,567
Total liabilities 169,400 157,897 169,163 157,673
Net assets 241,056 240,682 241,459 240,693
Equity
Reserves 21 15,700 11,027 15,700 11,027
Retained earnings 21 225,356 229,655 225,759 229,666
Total equity 241,056 240,682 241,459 240,693
The above Statement of Financial Position should be read in conjunction with accompanying notes.
Southern Cross University Annual Report 2017 31
Southern Cross University ABN 41 995 651 524
Parent
Note
Retained
Earnings
$’000
Reserves
$’000
Total
$’000
Balance at 1 January 2016 212,657 9,198 221,855
Net result 17,011 – 17,011
Gain on revaluation of available for sale financial assets – 1,829 1,829
Remeasurements of defined benefit plans (2) – (2)
Total comprehensive income 17,009 1,829 18,838
Balance at 31 December 2016 229,666 11,027 240,693
Balance at 1 January 2017 21 229,666 11,027 240,693
Net result (3,766) – (3,766)
Gain on revaluation of available for sale financial assets – 4,673 4,673
Remeasurements of defined benefit plans (141) – (141)
Total comprehensive income (3,907) 4,673 766
Balance at 31 December 2017 225,759 15,700 241,459
Consolidated
Retained
Earnings
$’000
Reserves
$’000
Total
$’000
Balance at 1 January 2016 212,888 9,198 222,086
Net result 16,769 – 16,769
Gain on revaluation of available for sale financial assets – 1,829 1,829
Remeasurements of defined benefit plans (2) – (2)
Total comprehensive income 16,767 1,829 18,596
Balance at 31 December 2016 229,655 11,027 240,682
Balance at 1 January 2017 21 229,655 11,027 240,682
Net result (4,158) – (4,158)
Gain on revaluation of available for sale financial assets – 4,673 4,673
Remeasurements of defined benefit plans (141) – (141)
Total comprehensive income (4,299) 4,673 374
Balance at 31 December 2017 225,356 15,700 241,056
Statement of
Changes in
Equity
For the Year Ended
31 December 2017
The above Statement of Changes in Equity should be read in conjunction with accompanying notes.
32 Southern Cross University Annual Report 2017
Statement
of Cash Flows
For the Year Ended
31 December 2017
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Cash flows from operating activities:
Australian Government Grants 168,005 170,155 168,005 170,155
OS‑HELP (net) (150) (103) (150) (103)
State Government Grants 1,628 2,143 1,628 2,143
HECS‑HELP – Student payments 1,944 2,249 1,944 2,249
Receipts from student fees and other customers 72,790 56,853 73,665 55,566
Payments to suppliers and employees (227,541) (209,924) (228,575) (208,497)
Interest received 415 747 413 746
Interest and other costs of finance (880) (877) (880) (877)
GST recovered/paid 7,599 6,968 7,719 6,854
Net cash provided by operating activities 30 23,810 28,211 23,769 28,236
Cash flows from investing activities:
Proceeds from sale of property, plant and
equipment 690 2,551 674 2,545
Payments for property, plant and equipment (25,847) (28,691) (25,792) (28,691)
Net cash used in investing activities (25,157) (26,140) (25,118) (26,146)
Cash flows from financing activities:
Repayment of borrowings (2,440) (2,440) (2,440) (2,440)
Net cash provided by/(used in)
financing activities (2,440) (2,440) (2,440) (2,440)
Net (decrease) in cash and cash equivalents (3,787) (369) (3,789) (350)
Cash and cash equivalents at beginning
of the financial year 20,404 20,773 20,334 20,684
Cash and cash equivalents
at the end of the financial year 12 16,617 20,404 16,545 20,334
Southern Cross University ABN 41 995 651 524
The above Statement of Cash Flows should be read in conjunction with accompanying notes.
Southern Cross University Annual Report 2017 33
Contents Page
Notes to the Financial Statements
Note 1 Summary of Significant Accounting Policies 34
Note 2 Australian Government financial assistance including Australian Government loan programs (HELP) 38
Note 3 State and local government financial assistance 40
Note 4 Fees and charges 40
Note 5 Investment revenue 41
Note 6 Consultancy and contracts 41
Note 7 Other revenue 41
Note 8 Employee related expenses 42
Note 9 Depreciation and amortisation 43
Note 10 Impairment of assets 44
Note 11 Other expenses 44
Note 12 Cash and cash equivalents 45
Note 13 Receivables 45
Note 14 Investments accounted for using the equity method 48
Note 15 Other financial assets 49
Note 16 Property, plant and equipment 50
Note 17 Trade and other payables 54
Note 18 Borrowings 54
Note 19 Provisions 56
Note 20 Other liabilities 58
Note 21 Reserves and retained earnings 58
Note 22 Key management personnel disclosures 59
Note 23 Remuneration of auditors 61
Note 24 Contingencies 61
Note 25 Commitments 62
Note 26 Related Parties 62
Note 27 Subsidiaries 63
Note 28 Joint Operations 64
Note 29 Events Occurring After the Reporting Date 65
Note 30 Reconciliation of net result to net cash provided by / (used in) operating activities 65
Note 31 Financial risk management 66
Note 32 Fair value measurements 69
Note 33 Retirement benefit obligations 72
Note 34 Acquittal of Australian government financial assistance 80
Notes to the
Financial
Statements
For the Year Ended
31 December 2017
Southern Cross University ABN 41 995 651 524
34 Southern Cross University Annual Report 2017
1 Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below
and where applicable, throughout the notes to the accounts. The policies have been consistently applied for all years
reported unless otherwise stated.
The financial statements include separate statements for Southern Cross University as the parent entity and the
consolidated entity consisting of Southern Cross University and its subsidiary.
Southern Cross University is a Higher Education Provider which has been established under the Southern Cross University
Act 1993. The principal address of Southern Cross University is Military Road, Lismore NSW 2480.
(a) Basis of Preparation
The financial statements are general purpose financial statements which have been prepared on an accrual basis in
accordance with Australian Accounting Standards, the requirements of the Higher Education Support Act 2003 (Financial
Statement Guidelines), the Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2015.
The University applies Tier 1 reporting requirements.
Southern Cross University is a not‑for‑profit entity and these statements have been prepared on that basis. The Australian
Accounting Standards include requirements for not‑for‑profit entities which are inconsistent with International Financial
Reporting Standards (IFRS) and to the extent these inconsistencies are applied, these financial statements do not comply
with IFRS. The main impact is in the following accounting treatments:
‑ the offsetting of impairment losses within a class of assets
‑ the timing of the recognition of non‑reciprocal revenue.
Date of authorisation for issue
The financial statements were authorised for issue by the members of Southern Cross University on 12 April 2018.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation
of available‑for‑sale financial assets, financial assets and liabilities at fair value through profit and loss, and library rare
book collection.
Critical accounting estimates
The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process of applying Southern
Cross University’s accounting policies.
The estimates and underlying assumptions are reviewed on an ongoing basis.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements, are disclosed below:
‑ Estimated useful life assessments of property, plant and equipment assets (note 9)
‑ Measurement and recognition of employee benefits provisions (note 19)
‑ Impairment of trade and other receivables (note 10)
‑ Measurement of financial assets (note 32)
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 35
1 Summary of Significant Accounting Policies (continued)
(b) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the University’s entities are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial
statements are presented in Australian dollars, which is Southern Cross University’s functional and presentation currency.
(c) Income Tax
Southern Cross University does not provide for Australian income tax as it is exempt under the provisions of Division
50 of the Income Tax Assessment Act 1997 (ITAA).
(d) Rounding of amounts
Amounts have been rounded off to the nearest thousand dollars.
(e) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case, it is recognised as part of the cost acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(f) Comparative Amounts
Where necessary, comparative information has been reclassified to enhance comparability in respect of changes
in presentation adopted in the current year.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
36 Southern Cross University Annual Report 2017
1 Summary of significant Accounting Policies (continued)
(g) New Accounting Standards and Interpretations
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application
dates for future reporting periods. The University has decided not to early adopt these Standards. The following table
summarises those future requirements, and their impact on the University where the standard is relevant:
Standard Name
Mandatory
Application
Date
Requirements Impact
AASB 15 Revenue
from Contracts
with customers,
AASB 1058 Income
of Not‑for‑Profit
Entities, and
amending
standards
1 January
2019
AASB 15 establishes a single and
comprehensive framework which
sets out how and when revenue
is recognised. The core principle
of AASB 15 is that revenue is
recognised when transfers of goods
or services to customers occur in
exchange for consideration which
the vendor expects to be entitled to
in exchange for the provision of those
goods or services (i.e. fulfilment of
performance obligations). Revenue
will only be recognised when
control over the goods or services is
transferred to the customer, which is
either over time or at a point in time.
Furthermore, AASB 1058 amends the
income recognition requirements
that apply to not‑for‑profit entities
and establishes principles for
not‑for‑profit entities that apply to:
(a) transactions where the
consideration to acquire an asset
is significantly less than fair value
principally to enable a not‑for‑profit
entity to further its objectives;
(b) the receipt of volunteer services;
and
(c) transfers made to enable an entity
to acquire or construct a non‑financial
asset for its own use.
The University is in the process of
assessing the changes, if any, to its
revenue recognition policies upon
the adoption of AASB 15 and AASB - Until management completes
that process, the University is unable
to reasonably quantify the expected
financial impacts of those Standards
in future periods.
The University intends to adopt the
‘modified retrospective’ approach to
the initial application of AASB 15 and
AASB 1058. That approach applies
the new standards from the date of
initial application on 1 January 2019
and will not result in the restatement
of FY 2018 comparative financial
information.
AASB 16 Leases 1 January 2019 AASB 16 was issued in February 2016.
It will result in almost all leases being
recognised on the balance sheet, as
the distinction between operating
and finance leases is removed. Under
the new standard, an asset (the right
to use the leased item) and a financial
liability to pay rentals are recognised.
The only exceptions are short term
and low‑value leases. The accounting
for lessors will not significantly
change.
The standard will affect primarily
the accounting for the University’s
operating leases. As at the
reporting date, the University has
non‑cancellable operating lease
commitments of $78,899,000, see
note 25(b). However, the University
has not yet determined to what extent
these commitments will result in the
recognition of an asset and a liability
for future payments and how this will
affect the University’s net result and
classification of cash flows, although
no impact on net cash outflows
expected. Some of the commitments
may be covered by the exception for
short‑term and low value leases and
some commitments may relate to
arrangements that will not qualify as
leases under AASB 16. At this stage,
the group does not intend to adopt
the standard before its effective date.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 37
1 Summary of significant Accounting Policies (continued)
(g) New Accounting Standards and Interpretations (continued)
Standard Name
Mandatory
Application
Date
Requirements Impact
AASB 9 Financial
Instruments and
amending standards
1 January
2018
Changes to the classification
and measurement requirements
for financial assets and financial
liabilities. There will be no impact
on the University’s accounting
for financial liabilities, as the
new requirements only affect the
accounting for financial liabilities that
are designated at fair value through
profit or loss and the University does
not have any such liabilities. As a
general rule it will be easier to apply
hedge accounting going forward.
The new standard also introduces
expanded disclosure requirements
and changes in presentation.
The University no longer has hedging
arrangements in place and will not
adopt any parts of AASB 9 early.
AASB 2016‑2
Amendments to
Australian
Accounting
Standards ‑
Disclosure Initiative:
Amendments to
AASB to AASB 107
1 January 2019 This amendment requires disclosure
of changes in liabilities.
The University has elected not
to adopt the standard before its
effective due to the limited nature
and value of its borrowing facilities.
AASB 2016‑3
Amendments
to Australian
Accounting
Standards ‑
Clarification
to AASB 15
1 January 2018 Clarifies the requirements on
identifying performance obligations,
principal vs agent considerations and
the timing of recognising revenue
from granting a licence. In addition, it
provides further practical expedients
on transition to AASB 15.
The potential impact of this standard
is currently being determined.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
38 Southern Cross University Annual Report 2017
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Commonwealth Grants Scheme 78,081 79,320 78,081 79,320
Indigenous Student Success Program 2,053 1,372 2,053 1,372
Higher Education Participation Program 2,861 3,763 2,861 3,763
Disability Performance Funding 96 95 96 95
Australian Maths and Science Partnership Program 32 390 32 390
Improving the Quality of Maths and Science
Teaching Programs 72 282 72 282
Promotion of Excellence in Learning and Teaching 10 10 10 10
Total Commonwealth Grant Scheme and Other Grants 34(a) 83,205 85,232 83,205 85,232
(b) Higher Education Loan Programs
HECS ‑ HELP 48,314 46,271 48,314 46,271
FEE ‑ HELP 10,148 8,312 10,148 8,312
SA‑HELP payments 1,116 1,108 1,116 1,108
Total Higher Education Loan Programs 34(b) 59,578 55,691 59,578 55,691
(c) Scholarships
Research Training Program 4,417 4,678 4,417 4,678
Total Scholarships 34(c) 4,417 4,678 4,417 4,678
(d) Research
Research Support Program 3,270 3,201 3,270 3,201
Total Research 34(c) 3,270 3,201 3,270 3,201
(e) Other Capital Funding
Linkage Infrastructure, Equipment and Facilities grant 552 – 552 –
Education Investment Fund – 15,688 – 15,688
Total Other Capital Funding 34(e) 552 15,688 552 15,688
(f) Australian Research Council
Discovery 916 847 916 847
Linkages 621 659 621 659
Total ARC 34(f) 1,537 1,506 1,537 1,506
2 Australian government financial assistance including Australian government loan programs (HELP)
(a) Commonwealth Grants Scheme and Other Grants
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 39
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Non‑capital
Department of Agriculture and Water Resources
(Farm Co‑op) 6,538 3,944 6,538 3,944
Department of Agriculture and Water Resources (Other) 25 – 25 –
Department of Education 271 484 271 484
Department of Environment and Energy 10 – 10 –
Department of Foreign Affairs 171 – 171 –
Department of Health – 94 – 94
Department of Prime Minister & Cabinet – 450 – 450
Aust’n Ctr for International Agricultural Research 502 982 502 982
Horticultural Innovation Australia Ltd – 140 – 140
Rural Industries Research & Dev Corporation – 156 – 156
Other – 950 – 950
Total non‑capital 7,517 7,200 7,517 7,200
Total Other Australian Government Financial
Assistance 7,517 7,200 7,517 7,200
Total Australian Government financial assistance 160,076 173,196 160,076 173,196
The University recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the University and specific criteria have been met for each of the University’s activities as
described below. In some cases this may not be probable until consideration is received or an uncertainty is removed.
The University bases its estimates on historical results, taking into consideration the type of customer, the type of transaction
and the specifics of each arrangement. This applies to revenue items recognised in notes 2 through to 7.
The University recognises grants received form the Australian government in note 2 as income when the University obtains
control of the right to receive the grant, it is probable that economic benefits will flow to the University and it can be
reliably measured.
Revenue from HELP is categorised into those received from the Australian Government (note 2 (a)) and those received
directly from students (note 2 (b)). Revenue is recognised and measured in accordance with the above disclosure.
2 Australian government financial assistance including Australian government loan programs (HELP) (continued)
(g) Other Australian Government Financial Assistance
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
40 Southern Cross University Annual Report 2017
3 State and local government financial assistance
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Non‑capital
New South Wales 1,323 758 1,323 758
Queensland 51 157 51 157
Victoria 227 255 227 255
South Australia 12 90 12 90
Western Australia 15 3 15 3
Total 1,628 1,263 1,628 1,263
Capital
New South Wales – 880 – 880
Total – 880 – 880
Total State and Local Government Financial Assistance 1,628 2,143 1,628 2,143
The University recognises contributions and grants received from State governments as revenue when the University
obtains control of the right to receive the grant, it is probable that economic benefits will flow to the University and it can
be reliably measured.
4 Fees and charges
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Fee‑paying onshore overseas students 44,997 34,367 44,997 34,367
Fee‑paying offshore overseas students 2,008 2,039 2,008 2,039
Continuing education 47 124 47 124
Fee‑paying domestic postgraduate students 3,680 2,736 3,680 2,736
Fee‑paying domestic undergraduate students 542 540 542 540
Fee‑paying domestic non‑award students 71 25 71 25
Total Course Fees and Charges 51,345 39,831 51,345 39,831
Other Non‑Course Fees and Charges
Student services and amenities fees 895 848 895 848
Late fees 92 94 92 94
Student accommodation 335 438 335 438
Other services 227 209 227 209
Total Other Fees and Charges 1,549 1,589 1,549 1,589
Total Fees and Charges 52,894 41,420 52,894 41,420
Fees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate to courses
to be held in future periods. Such receipts (or portion thereof) are treated as income in advance in liabilities. Conversely, fees
and charges relating to debtors are recognised as revenue in the year to which the prescribed course relates.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 41
5 Investment revenue
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Interest income 406 750 404 749
Dividends 500 – 500 –
Total investment revenue 906 750 904 749
Interest revenue is recognised as it is earned. Dividends are recognised when the dividend is declared.
6 Consultancy and contracts
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Consultancy 2,574 2,158 2,574 2,158
Contract research 3,952 2,848 3,952 2,848
Total consultancy and contracts 6,526 5,006 6,526 5,006
Consultancy revenue and contract research is recognised in accordance with the percentage of completion method.
The stage of completion is measured by reference to labour hours incurred to date as a percentage of estimated total labour
hours for each contract.
7 Other revenue
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Donations and bequests 129 28 129 28
Scholarships and prizes 218 208 218 208
Sale of goods 777 725 149 213
Rental and facilities hire 642 774 623 771
Cost recoveries 3,817 3,393 3,815 3,392
Memberships and registrations 1,165 870 275 153
Laboratory services 4,244 3,507 4,244 3,507
Conferences and workshops 102 62 102 62
Other revenue 1,097 934 1,039 853
Total other revenue 12,191 10,501 10,594 9,187
Contributions, donations and gifts that are non‑reciprocal in nature are recognised as revenue in the year in which the group
obtains control over them. Where grants are received that are reciprocal in nature, revenue is recognised over the term
of the funding arrangements.
Other revenue is recognised when the goods and services are provided.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
42 Southern Cross University Annual Report 2017
8 Employee related expenses
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Academic
Salaries 48,748 46,559 48,748 46,559
Contributions to funded superannuation schemes 7,434 7,024 7,434 7,024
Payroll tax 3,231 3,063 3,231 3,063
Worker’s compensation 320 390 320 390
Long service leave 1,258 1,223 1,258 1,223
Annual leave 3,086 3,005 3,086 3,005
Other 590 558 590 558
Total academic 64,667 61,822 64,667 61,822
Non‑academic
Salaries 51,308 47,602 49,877 46,457
Contributions to funded superannuation schemes 8,191 7,724 8,053 7,613
Payroll tax 3,356 3,161 3,262 3,088
Worker’s compensation 341 406 325 392
Long service leave 1,335 1,636 1,329 1,624
Annual leave 3,477 3,218 3,422 3,180
Other 1,066 1,078 1,065 1,078
Total non‑academic 69,074 64,825 67,333 63,432
Total employee related expenses 133,741 126,647 132,000 125,254
Contributions to the defined contribution section of Southern Cross University’s superannuation fund and other
independent defined contribution superannuation funds are recognised as an expense as they become payable.
Past service costs are recognised in profit or loss immediately.
Refer to note 19 for accounting policies on employee benefits and note 33 for retirement benefit obligations.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 43
9 Depreciation and amortisation
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Depreciation
Buildings 6,198 5,936 6,198 5,936
Infrastructure 687 836 687 836
Plant and equipment 6,258 5,825 6,223 5,792
Leasehold improvements 2 3 2 3
Total depreciation 13,145 12,600 13,110 12,567
Amortisation
Computer software 73 114 73 114
Total depreciation and amortisation 13,218 12,714 13,183 12,681
Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate their cost,
net of their residual values, over their estimated useful lives, as follows:
2017
Useful Lives
(Years)
2016
Useful Lives
(Years)
Depreciable assets
Buildings 10‑60 10‑60
Plant and equipment 2‑30 2‑30
Improvements 5 5
Infrastructure 7‑70 7‑70
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
44 Southern Cross University Annual Report 2017
10 Impairment of assets
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Trade receivables 1,238 491 1,238 491
Infrastructure – (168) – (168)
Total impairment of assets 1,238 323 1,238 323
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely
independent of the cash inflows from other assets or groups of assets (cash generating units). Non‑financial assets, other than
goodwill, that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
11 Other expenses
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Advertising, marketing and promotional expenses 2,804 3,913 2,800 3,908
Audit fees, bank charges, insurance and taxes 1,624 1,542 1,540 1,473
Books and subscriptions 4,038 3,515 4,037 3,514
Consulting and professional fees 13,050 12,306 12,927 12,227
External education services 28,091 19,297 28,091 19,297
Grants & contributions 4,178 668 4,178 668
Leased asset charges 4,234 3,998 4,234 3,998
Non‑capitalised equipment 3,036 2,353 2,979 2,311
Printing and stationery 1,285 1,177 1,278 1,173
Property and facility costs 6,980 6,921 6,674 6,618
Scholarships, grants and prizes 4,877 5,141 4,875 5,141
Software expenses 3,790 3,729 3,790 3,729
Telecommunications 1,302 1,092 1,293 1,086
Travel, entertainment and staff development 4,660 4,721 4,820 4,851
Other expenses 4,891 4,634 5,132 4,892
Total other expenses 88,840 75,007 88,648 74,886
Leased asset charges in which a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases (note 25). Payments made under operating leases (net of any incentives received from the
lessor) are charged to the income statement on a straight‑line basis, over the period of the lease and are included in other
expenses above.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 45
12 Cash and cash equivalents
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Cash at bank and on hand 5,067 4,854 4,995 4,784
Short term deposits at call 11,550 15,550 11,550 15,550
Total cash and cash equivalent in the statement
of financial position and cashflows 16,617 20,404 16,545 20,334
(a) Cash at bank and on hand
Cash on hand is non‑interest bearing. Cash at bank earned a floating interest rate of 1.30% (2016:1.30% to 1.80%).
(b) Deposits at call
The deposits are bearing floating interest rates between 1.50% and 2.31% (2016: 1.50% and 2.75%). The deposits have an
average maturity of 31 days.
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions, other short‑term, highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.
13 Receivables
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Current
Trade receivables 5,506 4,146 5,482 4,130
Student fees 5,145 4,224 5,145 4,224
Less: Provision for impaired receivables (2,313) (1,870) (2,313) (1,870)
8,338 6,500 8,314 6,484
Related party receivables 26(e)(f) 16 16 578 205
Other receivables 2,233 8,096 2,227 8,091
Total current receivables 10,587 14,612 11,119 14,780
Non‑current
Deferred government benefit for
superannuation 33(d) 92,175 87,061 92,175 87,061
Total non‑current receivables 92,175 87,061 92,175 87,061
Total receivables 102,762 101,673 103,294 101,841
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment. Trade receivables are due for settlement no more than 30 days from the date
of recognition for trade debtors.
The non‑current receivable for deferred government superannuation benefits are the amounts recognised as
reimbursement rights expected to be received from the Australian and New South Wales (NSW) Governments.
This amount is offset by a liability in respect of defined benefit superannuation plans in Note 19.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
46 Southern Cross University Annual Report 2017
13 Receivables (continued)
As at 31 December 2017 current receivables of $374,939 (2016: $327,044 ) were past due but not impaired. These relate to
a number of student fees not yet collected and trade debtors for whom there is no recent history of default. The ageing
analysis of these receivables is as follows:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
3 to 6 months 206 322 206 322
6 to 12 months 131 – 131 –
Over 12 months 38 5 38 5
Total past due but not impaired current receivables 375 327 375 327
(a) Impaired receivables
As at 31 December 2017 current receivables of the University with a nominal value of $2,313,448 (2016: $1,870,139) were
impaired. The amount of the provision was $2,313,448 (2016: $1,870,139). The individually impaired receivables mainly relate
to student fees not yet collected and a wide variety of trade debtors. It was assessed that a portion of the receivables is
expected to be recovered.
The ageing of these receivables is as follows:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
0 to 3 months 140 7 140 7
3 to 6 months 984 603 984 603
6 to 12 months 262 467 262 467
Over 12 months 927 793 927 793
2,313 1,870 2,313 1,870
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 47
13 Receivables (continued)
(a) Impaired receivables (continued)
Movements in the provision for impaired receivables are as follows:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
At 1 January 1,870 1,846 1,870 1,845
Provision for impairment recognised during the year 2,313 1,870 2,313 1,870
Receivables written off during the year as
uncollectible 787 501 787 501
Unused amount reversed (2,657) (2,347) (2,657) (2,346)
At 31 December 2,313 1,870 2,313 1,870
The creation and release of the provision for impaired receivables has been included in ‘impairment of assets’ in the income
statement. Amounts charged to the provision account are generally written off when there is no expectation of recovering
additional cash.
The other amounts within receivables do not contain impaired assets and are not past due. Based on credit history, it is
expected that these amounts will be received when due.
Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written
off. A provision for impairment of receivables is established when there is objective evidence that the University will not
be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the
debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments
(more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the provision
is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at
the effective interest rate. Cash flows relating to short‑term receivables are not discounted if the effect of discounting is
immaterial. The amount of the provision is recognised in the income statement.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
48 Southern Cross University Annual Report 2017
14 Investments accounted for using the equity method
Associates
Quoted fair value $ Ownership Interest %
Name of Entity
Place of business/
Country of
incorporation
Measurement
method 2017 2016 2017 2016
Coffs Harbour
Technology Park Ltd Coffs Harbour, Australia At Cost 175 175 33.33 33.33
Summarised financial information for individually material associates is set out below:
2017
$’000
2016
$’000
Financial Position
Current assets 101 104
Non‑current assets 921 954
Total assets 1,022 1,058
Current liabilities 25 28
Non‑current liabilities 96 96
Total liabilities 121 124
Net assets 901 934
Reconciliation of carrying amounts:
Balance at 1 January 312 316
Share of profit/(loss) for year (11) (4)
Balance at 31 December 301 312
Financial Performance
Income 110 102
Profit/(loss) from continuing operations (34) (13)
Total comprehensive income (34) (13)
Share of associates’ profit/(loss) (11) (4)
(a) Associates
Associates are all entities over which the University has significant influence but not control. Investments in associates are
accounted for in the parent entity financial statements using the cost method or the equity method, and in the consolidated
financial statements using the equity method of accounting, after initially being recognised at cost. The University’s
investment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition
The University’s share of its associates’ post acquisition profits or losses is recognised in the income statement, and its
share of post acquisition movements in reserves is recognised in reserves. The cumulative post acquisition movements
are adjusted against the carrying amount of the investment. Dividends receivable from associates are recognised in the
parent entity’s income statement, while in the consolidated financial statements they reduce the carrying amount of the
investment.
Gains or losses resulting from ‘upstream’ and ‘downstream’ transactions, involving assets that do not constitute a business,
are recognised in the parent’s financial statements only to the extent of unrelated investors’ interests in the associate or
joint venture. Gains or losses resulting from the contribution of non‑monetary assets in exchange for an equity interest are
accounted for in the same method.
When the University’s share of losses in an associate equals or exceeds its interest in the associate, including any other
unsecured receivables, the University does not recognise further losses, unless it has incurred obligations or made payments
on behalf of the associate.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 49
15 Other financial assets
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Non‑current
Available for sale
‑ Shares in unlisted entities 15,700 11,027 15,700 11,027
Total non‑current other financial assets 15,700 11,027 15,700 11,027
Classification
The University classifies its investments in the following categories: financial assets at fair value through profit or loss, loans
and receivables, held‑to‑maturity investments, and available‑for‑sale financial assets. The classification depends on the
purpose for which the investments were acquired. Management determines the classification of its investments at initial
recognition and, in the case of assets classified as held‑to‑maturity, re‑evaluates this designation at each reporting date.
(i) Available‑for‑sale financial assets
Available‑for‑sale financial assets, comprising principally marketable equity securities, are non‑derivatives that are either
designated in this category or not classified in any of the other categories. They are included in non‑current assets unless
management intends to dispose of the investment within 12 months of the end of the reporting period.
Regular purchases and sales of financial assets are recognised on trade date ‑ the date on which the University commits to
purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised
at fair value and transaction costs are expensed in the income statement. Financial assets are derecognised when the rights
to receive cash flows from the financial assets have expired or have been transferred and the University has transferred
substantially all the risks and rewards of ownership.
When securities classified as available‑for‑sale are sold, the accumulated fair value adjustments recognised in other
comprehensive income are included in the income statement as gains and losses from investment securities.
Subsequent measurement
Available‑for‑sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair
value. Loans and receivables and held‑to‑maturity investments are carried at amortised cost using the effective interest
method. Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’
category are included in the income statement within other income or other expenses in the period in which they arise.
Impairment
The University assesses at each balance date whether there is objective evidence that a financial asset or group of financial
assets is impaired. In the case of equity securities classified as available‑for‑sale, a significant or prolonged decline in the
fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence
exists for available‑for‑sale financial assets, the cumulative loss measured as the difference between the acquisition cost
and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss ‑ is removed
from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity
instruments are not reversed through the income statement.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
50 Southern Cross University Annual Report 2017
16 Property, plant and equipment
Parent
Land
$’000
Buildings
$’000
Plant and
equipment
$’000
Infrastructure
$’000
Improvements
$’000
Library
collections
$’000
Capital Works
in Progress
$’000
Total
$’000
At 1 January 2016
At cost 12,224 222,647 60,810 25,630 43 8,827 5,378 335,559
Accumulated depreciation – (47,438) (27,969) (4,438) (4) (8,027) – (87,876)
Accumulated impairment – (112) – (1,431) – (683) – (2,226)
Net book amount 12,224 175,097 32,841 19,761 39 117 5,378 245,457
Year ended 31 December 2016
Opening net book amount 12,224 175,097 32,841 19,761 39 117 5,378 245,457
Additions – 23 4,014 56 – – 26,647 30,740
Disposals (250) (1,983) (365) (349) – – – (2,947)
Depreciation charge – (5,936) (5,792) (836) (3) – – (12,567)
Impairment reversal in income – – – 168 – – – 168
Transfers – 113 413 561 – – (1,087) –
Closing net book amount 11,974 167,314 31,111 19,361 36 117 30,938 260,851
At 31 December 2016
At cost 11,974 220,036 62,105 25,790 43 8,827 30,938 359,713
Accumulated depreciation – (52,610) (30,994) (5,166) (7) (8,027) – (96,804)
Accumulated impairment – (112) – (1,263) – (683) – (2,058)
Net book amount 11,974 167,314 31,111 19,361 36 117 30,938 260,851
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 51
16 Property, plant and equipment (continued)
Parent
Land
$’000
Buildings
$’000
Plant and
equipment
$’000
Infrastructure
$’000
Improvements
$’000
Library
collections
$’000
Capital Works
in Progress
$’000
Total
$’000
At 1 January 2017
At cost 11,974 220,036 62,105 25,790 43 8,827 30,938 359,713
Accumulated depreciation – (52,610) (30,994) (5,166) (7) (8,027) – (96,804)
Accumulated impairment – (112) – (1,263) – (683) – (2,058)
Net book amount 11,974 167,314 31,111 19,361 36 117 30,938 260,851
Year ended 31 December 2017
Opening net book amount 11,974 167,314 31,111 19,361 36 117 30,938 260,851
Additions – – 4,932 79 – – 18,893 23,904
Disposals – – (786) – – – – (786)
Depreciation expense – (6,198) (6,223) (687) (2) – – (13,110)
Transfers – 33,927 9,463 900 – – (44,290) –
Closing net book amount 11,974 195,043 38,497 19,653 34 117 5,541 270,859
At 31 December 2017
At cost 11,974 253,963 72,359 26,770 43 8,827 5,541 379,477
Accumulated depreciation – (58,808) (33,862) (5,854) (9) (8,027) – (106,560)
Accumulated Impairment – (112) – (1,263) – (683) – (2,058)
Net book amount 11,974 195,043 38,497 19,653 34 117 5,541 270,859
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
52 Southern Cross University Annual Report 2017
16 Property, plant and equipment (continued)
Consolidated
Land
$’000
Buildings
$’000
Plant and
equipment
$’000
Infrastructure
$’000
Improvements
$’000
Library
collections
$’000
Capital Works
in Progress
$’000
Total
$’000
At 1 January 2016
At cost 12,224 222,647 61,047 25,630 43 8,827 5,378 335,796
Accumulated depreciation – (47,438) (28,033) (4,438) (4) (8,027) – (87,940)
Accumulated impairment – (112) – (1,431) – (683) – (2,226)
Net book amount 12,224 175,097 33,014 19,761 39 117 5,378 245,630
Year ended 31 December 2016
Opening net book amount 12,224 175,097 33,014 19,761 39 117 5,378 245,630
Additions – 23 4,014 56 – – 26,647 30,740
Disposals (250) (1,983) (365) (349) – – – (2,947)
Depreciation expense – (5,936) (5,825) (836) (3) – – (12,600)
Impairment reversal in income – – – 168 – – – 168
Transfers – 113 413 561 – – (1,087) –
Closing net book amount 11,974 167,314 31,251 19,361 36 117 30,938 260,991
At 31 December 2016
At cost 11,974 220,036 62,313 25,790 43 8,827 30,938 359,921
Accumulated depreciation – (52,610) (31,062) (5,166) (7) (8,027) – (96,872)
Accumulated impairment – (112) – (1,263) – (683) – (2,058)
Net book amount 11,974 167,314 31,251 19,361 36 117 30,938 260,991
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 53
16 Property, plant and equipment (continued)
Consolidated
Land
$’000
Buildings
$’000
Plant and
equipment
$’000
Infrastructure
$’000
Improvements
$’000
Library
collections
$’000
Capital Works in
Progress
$’000
Total
$’000
At 1 January 2017
At cost 11,974 220,036 62,313 25,790 43 8,827 30,938 359,921
Accumulated depreciation – (52,610) (31,062) (5,166) (7) (8,027) – (96,872)
Accumulated impairment – (112) – (1,263) – (683) – (2,058)
Net book amount 11,974 167,314 31,251 19,361 36 117 30,938 260,991
Year ended 31 December 2017
Opening net book amount 11,974 167,314 31,251 19,361 36 117 30,938 260,991
Additions – – 4,986 79 – – 18,893 23,958
Disposals – – (807) – – – – (807)
Depreciation expense – (6,198) (6,258) (687) (2) – – (13,145)
Transfers – 33,927 9,463 900 – – (44,290) –
Closing net book amount 11,974 195,043 38,635 19,653 34 117 5,541 270,997
At 31 December 2017
At cost 11,974 253,963 72,598 26,770 43 8,827 5,541 379,716
Accumulated depreciation – (58,808) (33,963) (5,854) (9) (8,027) – (106,661)
Accumulated impairment – (112) – (1,263) – (683) – (2,058)
Net book amount 11,974 195,043 38,635 19,653 34 117 5,541 270,997
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
54 Southern Cross University Annual Report 2017
16 Property, plant and equipment (continued)
Property, plant and equipment is shown at cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the University and the cost of the item can
be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in
which they are incurred.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
17 Trade and other payables
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Current
Trade creditors 14,474 14,697 14,391 14,594
Australian Government unspent financial
assistance 3,783 – 3,783 –
OS‑HELP liability to Australian Government 34(h) 26 176 26 176
Total current trade and other payables 18,283 14,873 18,200 14,770
These amounts represent liabilities for goods and services provided to the University prior to the end of financial year, which
are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
18 Borrowings
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Current Borrowings
Unsecured
Bank loans 2,440 2,440 2,440 2,440
Total current borrowings 2,440 2,440 2,440 2,440
Non‑current Borrowings
Unsecured
Bank loans 7,580 10,020 7,580 10,020
Total non‑current borrowings 7,580 10,020 7,580 10,020
Total borrowings 10,020 12,460 10,020 12,460
(a) Assets pledged as security
The University has no assets pledged as security for borrowings drawn during the year ended 31 December 2017 (2016: Nil).
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 55
18 Borrowings (continued)
(b) Financing arrangements
Unrestricted access was available at reporting date to the following lines of credit:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Credit standby arrangements
Total facilities 5,000 5,000 5,000 5,000
Used at balance date (168) (166) (168) (166)
Total unused at balance date 4,832 4,834 4,832 4,834
Bank loan facilities
Total facilities 34,000 36,460 34,000 36,460
Used at balance date (10,020) (12,460) (10,020) (12,460)
Total unused at balance date 23,980 24,000 23,980 24,000
(c) Bank loans
On 21 December 2017, Southern Cross University re‑negotiated its loan facility with the ANZ Banking Group Limited
to reduce its facility to $34 million for a term of 5 years.
(d) Fair value
The carrying amounts and fair values of borrowings at reporting date are:
2017 2016
Carrying
amount
$’000
Fair
value
$’000
Carrying
amount
$’000
Fair
value
$’000
On‑balance sheet
Bank loans 10,020 10,020 12,460 12,460
Total borrowings 10,020 10,020 12,460 12,460
The fair value of current borrowings equals their carrying amount as the impact of discounting is not significant.
(e) Risk exposures
The exposure of the University’s borrowings to interest rate changes and the contractual repricing dates at the balance
dates are as follows:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Between one and five years 10,020 12,460 10,020 12,460
Total borrowings 10,020 12,460 10,020 12,460
Current borrowings 2,440 2,440 2,440 2,440
Non‑current borrowings 7,580 10,020 7,580 10,020
Total borrowings 10,020 12,460 10,020 12,460
The carrying amounts of the University’s borrowings are denominated in Australian dollars. For an analysis of the sensitivity
of borrowings to interest rate risk, refer to note 31.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
56 Southern Cross University Annual Report 2017
18 Borrowings (continued)
(f) Reconciliation of liabilities arising from financing activities
2016 Cash flows 2017
$’000 $’000 $’000
Long‑term borrowings 12,460 (2,440) 10,020
Total liabilities from financing activities 12,460 (2,440) 10,020
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
the income statement over the period of the borrowings using the effective interest method. Fees paid on the establishment
of loan facilities, which are not an incremental cost relating to the actual draw‑down of the facility, are recognised as
prepayments and amortised on a straight‑line basis over the term of the facility.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid, including any non‑cash assets transferred or liabilities assumed, is
recognised in other income or other expenses.
Borrowings are classified as current liabilities unless the University has an unconditional right to defer settlement of the
liability for at least 12 months after the end of the reporting period and does not expect to settle the liability for at least
12 months after the end of the reporting period.
19 Provisions
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Current provisions expected to be settled within
12 months
Employee benefits
Annual leave 6,919 6,617 6,873 6,581
Long service leave 4,738 4,349 4,733 4,346
11,657 10,966 11,606 10,927
Current provisions expected to be settled after
more than 12 months
Employee benefits
Annual leave 1,803 1,906 1,772 1,882
Long service leave 12,443 12,044 12,420 12,033
14,246 13,950 14,192 13,915
Total current provisions 25,903 24,916 25,798 24,842
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 57
19 Provisions (continued)
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Non‑current provisions
Employee benefits
Long service leave 3,389 3,565 3,381 3,547
Defined benefit obligation 92,362 87,108 92,362 87,108
Total non‑current provisions 95,751 90,673 95,743 90,655
Total provisions 121,654 115,589 121,541 115,497
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value reflects current
market assessments of the time value of money and the risks specific to the liability.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations may be small.
Employee benefits
(i) Short‑term obligations
Liabilities for short‑term employee benefits including wages and salaries, non‑monetary benefits are measured at the
amount expected to be paid when the liability is settled, if it is expected to be settled wholly before 12 months after the end
of the reporting period, and is recognised in other payables. Liabilities for non‑accumulating sick leave are recognised when
the leave is taken and measured at the rates payable.
(ii) Other long‑term obligations
The liability for other long‑term benefits are those that are not expected to be settled wholly before twelve months after
the end of the annual reporting period. Other long‑term employee benefits include such things as annual leave and long
service leave liabilities.
It is measured at the present value of expected future payments to be made in respect of services provided by employees
up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary
levels, experience of employee departures and periods of service. Expected future payments are discounted using market
yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classified as a
current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the
reporting date, in which case it would be classified as a non‑current liability.
(iii) Retirement benefit obligations
Refer to note 33.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
58 Southern Cross University Annual Report 2017
20 Other liabilities
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Current
Lease incentive 54 54 54 54
Other income received in advance 3,764 3,476 3,764 3,476
Student Fees received in advance 14,083 9,553 14,042 9,524
Total current other liabilities 17,901 13,083 17,860 13,054
Non‑current
Lease incentive 1,542 1,597 1,542 1,597
Total non‑current other liabilities 1,542 1,597 1,542 1,597
Total other liabilities 19,443 14,680 19,402 14,651
21 Reserves and retained earnings
(a) Reserves
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Reserves
Available‑for‑sale investments revaluation
surplus 15,700 11,027 15,700 11,027
Total reserves 15,700 11,027 15,700 11,027
Movements
Available‑for‑sale investments revaluation
surplus
Balance 1 January 11,027 9,198 11,027 9,198
Gain on revaluation of available for sale
financial assets 4,673 1,829 4,673 1,829
Balance 31 December 15,700 11,027 15,700 11,027
Total reserves 15,700 11,027 15,700 11,027
Retained earnings at 1 January 229,655 212,888 229,666 212,657
Net result for the period (4,158) 16,769 (3,766) 17,011
Remeasurements of defined benefit plans 33(e) (141) (2) (141) (2)
Retained earnings at 31 December 225,356 229,655 225,759 229,666
(b) Nature and purpose of reserves
Available‑for‑sale investments revaluation reserve
The reserve reflects the difference between the carrying cost and market value of available‑for‑sale investments.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 59
22 Key management personnel disclosures
(a) Names of responsible persons
The following persons were responsible persons of Southern Cross University during the financial year:
Official Council Members
Mr Nicholas Burton Taylor AM, Chancellor
Professor Adam Shoemaker, Vice Chancellor
Professor Susan Nancarrow, Chair Academic Board
Professor Mark Hughes, Chair Academic Board
Ministerial Appointments
Murray d’Almeida
Elected Council Members
Professor William Boyd
Associate Professor Adele Wessell
Toni Ledgerwood
Michael Jones
Council Appointed Members
Dr Austin Curtin
Neale Genge
Julie Granger
Anthony Matis
John Shanahan
Margot Sweeny
Christian Lugnan
Lynda O’Grady
Council members whose term concluded in 2017 are as follows:
Margot Sweeny
John Shanahan
Neale Genge
Christian Lugnan
Anthony Matis
Susan Nancarrow
(b) Names of executive officers
The following persons had executive authority and responsibility for planning, directing and controlling the activities
of Southern Cross University during the financial year:
Professor Adam Shoemaker Vice Chancellor
Professor Geraldine Mackenzie Deputy Vice Chancellor (Research)
Professor Susan Nancarrow Associate Deputy Vice Chancellor (Research)/
Deputy Vice Chancellor (Research)
Professor Andrew McAuley Deputy Vice Chancellor (Academic)
Professor John Jenkins Deputy Vice Chancellor (Academic)
Professor Nanette Bahr Pro Vice Chancellor (Students) and Dean of Education
Chris Patton Vice President (Global)
Monty Singh Vice President (Global)
Helen Hughes Executive Director, Community and Corporate Relations
Allan Morris Vice President (Operations)
Travis Walker Vice President (Finance)
Ben Roche Pro Vice Chancellor (Engagement)
At the reporting date of 31 December 2017, Professor Geraldine Mackenzie, Professor Andrew McAuley, Chris Patton
and Helen Hughes were no longer executive officers.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
60 Southern Cross University Annual Report 2017
22 Key management personnel disclosures (continued)
(c) Remuneration of board members and executives
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Remuneration of Board Members
Nil to $14,999 11 10 11 10
$15,000 to $29,999 1 – 1 –
$90,000 to $104,999 1 – 1 –
$105,000 to $119,999 – 1 – 1
$120,000 to $134,999 1 – 1 –
$135,000 to $149,999 – 1 – 1
$180,000 to $194,999 2 2 2 2
$210,000 to $224,999 – 1 – 1
$495,000 to $509,999 – 1 – 1
$750,000 to $764,999 1 – 1 –
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Remuneration of executive officers
$75,000 to $89,999 1 – 1 –
$90,000 to $104,999 1 – 1 –
$120,000 to $134,999 1 – 1 –
$180,000 to $194,999 1 1 1 1
$195,000 to $209,999 1 – 1 –
$270,000 to $284,999 1 – 1 –
$315,000 to $329,999 – 2 – 2
$330,000 to $344,999 4 3 4 3
$405,000 to $419,999 – 1 – 1
$450,000 to $464,999 1 1 1 1
$495,000 to $509,999 – 1 – 1
$750,000 to $764,999 1 – 1 –
Remuneration bands for the Vice Chancellor appear in both tables above as this management position is a responsible
person and an executive officer.
Four executive officers ceased in 2017, three new executive officers commenced and two executive officer positions were
filled in an acting capacity.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 61
22 Key management personnel disclosures (continued)
(d) Key management personnel compensation
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Short‑term employee benefits 3,219 3,314 3,219 3,314
Post‑employment benefits 480 486 480 486
Other long‑term benefits 78 33 78 33
Termination benefits 354 61 354 61
4,131 3,894 4,131 3,894
23 Remuneration of auditors
During the year, the following fees were paid for services provided by the auditor of the parent entity, its related practices
and non‑related audit firms:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Audit of the Financial Statements
Fees paid to the Audit Office of NSW 201 197 173 170
Total paid for audit 201 197 173 170
Other audit and assurance services
Fees paid to the Audit Office of NSW 11 11 11 11
Fees paid to firms unrelated to the
Audit Office of NSW 115 112 115 112
Total paid for audit and assurance 126 123 126 123
24 Contingencies
(a) Contingent liabilities
Bank Guarantees
The University has entered into bank guarantees with ANZ Banking Group Limited for $167,868 (2016: $165,520).
These guarantees are in respect of leased premises at the University’s Gold Coast and Sydney campuses.
Claims
There are no litigation claims in progress against the University at balance date.
Letter of comfort to subsidiary
The University has provided its subsidiary (Southern Cross Campus Services Ltd formerly Norsearch Limited) a letter
of comfort guaranteeing the liabilities of the controlled entity. At the date of this report the net liabilities of the controlled
entity total $‑530,491 (2016: $‑151,749).
(b) Contingent assets
Bonds and guarantees
The University entered into a construction contract in 2015. The parties agreed to enter into a performance bond up to
$84,916 and a maintenance bond up to $900,947, both in favour of the University. These performance bonds are in respect
to obligations for the construction of a building.
The University has entered into a bank guarantee with Commonwealth Bank of Australia for $12,354 in favour of the
University. This bank guarantee is in respect of obligations for the provision of a laboratory.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
62 Southern Cross University Annual Report 2017
25 Commitments
(a) Capital commitments
Capital expenditure contracted for purpose of acquiring property, plant and equipment assets at the reporting date, but not
recognised as liabilities are:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Property, plant and equipment
Within one year 2,355 16,897 2,355 16,897
Between one and five years – 459 – 459
Total capital commitments 2,355 17,356 2,355 17,356
(b) Operating lease commitments
The University leases office space, equipment, carparks and premises under non‑cancelable operating leases expiring within
one to thirty years. The leases have varying terms and renewal rights. On renewal, the terms of the leases are renegotiated.
Commitments for minimum lease payments in relation to non‑cancelable operating leases are payable as follows:
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Within one year 3,532 3,579 3,532 3,579
Between one and five years 8,114 8,386 8,114 8,386
Later than five years 67,253 68,521 67,253 68,521
Total future minimum lease payments 78,899 80,486 78,899 80,486
26 Related Parties
(a) Parent entities
The ultimate parent entity is Southern Cross University, which is incorporated in Australia.
(b) Subsidiaries
Interests in subsidiaries are set out in note 27.
(c) Key management personnel
Disclosures relating to directors and specified executives are set out in note 22.
(d) Transactions with related parties
The following transactions occurred between related parties:
Parent
2017
$’000
2016
$’000
Sale of goods and services
Recoveries for other expenses 2 3
Purchase of goods
Catering and accommodation 217 165
External labour hire 559 597
Management fees – 21
Other transactions
Other costs 115 31
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 63
26 Related Parties (continued)
(e) Loans to related parties
Consolidated Parent
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Loans to associated companies
Beginning of the year 16 16 16 16
End of year 16 16 16 16
(f) Outstanding balances
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Current receivables
Subsidiary 562 189
No provisions for doubtful debts have been raised in relation to any outstanding balances, and no expense has been
recognised in respect of bad or doubtful debts due from related parties.
(g) Guarantees
There have been no guarantees given by the parent entity to its subsidiary as at balance date (2016: Nil)
A letter of unconditional financial support has been provided by Southern Cross University to Southern Cross Campus
Services Limited. The ultimate parent entity will support the entity financially to ensure that the entity can pay its debts as
and when they fall due.
(h) Terms and Conditions
Related party outstanding balances are unsecured and have been provided on interest‑free terms.
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
27 Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance
with the accounting policy described below.
Ownership interest
Name of Entity Principle place of business 2017 % 2016 %
Southern Cross Campus Services Limited
(previously Norsearch Limited) Australia 100.00 100.00
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of the subsidiary of Southern Cross University
(‘’parent entity’’) as at 31 December 2017 and the results of all subsidiary for the year then ended. Southern Cross University
and its subsidiary together are referred to in this financial report as the University or the consolidated entity.
Subsidiaries are all those entities (including structured entities) over which the University has control. The University has
control over an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. Power over the investee exists when the Group has
existing rights that give it current ability to direct the relevant activities of the investee. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the University controls
another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the University. They are de‑consolidated
from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the University.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
64 Southern Cross University Annual Report 2017
28 Joint Operations
The University has entered into the following joint operations.
Controlling Interest
Name of joint operation Nature of relationship Principle place of business 2017 2016
The Hotel School
Represents a partnership with
Mulpha Education Group Pty
Ltd for the purpose of the
education and development
of students who are either
employed, or wishing to be
employed, in the hotel and
tourism industries.
Sydney and Melbourne 50.00 50.00
Coffs Harbour Education
Campus
Represents the development
and continued operation of a
joint educational precinct with
Coffs Harbour Senior College
and North Coast TAFE at the
Coffs Harbour campus
Coffs Harbour 33.33 33.33
Under AASB11 investments in joint arrangements are classified as either joint operations or joint ventures depending on the
contractual rights and obligations each investor has, rather than the legal structure of the joint arrangement.
The University’s share of assets, liabilities, revenue and expenses of each joint operation have been incorporated in the
financial statements under the appropriate headings.
The assets and liabilities employed in the above jointly controlled operations, including the Southern Cross University’s
share of any assets and liabilities held jointly, are detailed below.
The amounts are included in the financial statements under their respective categories.
2017
$’000
2016
$’000
Assets (including share of jointly held assets) 20,591 21,109
Liabilities (including jointly incurred) 944 772
The revenue and expenses raised or incurred in the above jointly controlled operations, including the Southern Cross
University’s share of any revenue or jointly incurred expenses, are detailed below. The amounts are included in financial
statements under their respective categories.
Share of revenue from joint operation 5,150 4,096
Expenses (including jointly incurred) 3,956 2,918
29 Events Occurring After the Reporting Date
No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly
affect the operations of the University, the results of those operations, or the state of affairs of the University in future
financial years.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 65
30 Reconciliation of net result to net cash provided by / (used in) operating activities
Consolidated Parent
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Net result for the period (4,158) 16,769 (3,766) 17,011
Depreciation and amortisation 9 13,218 12,714 13,183 12,681
Impairment loss on assets 10 1,238 323 1,238 323
Net loss on sale of non‑current assets 119 396 113 402
Net foreign exchange differences 108 138 108 138
Share of associate net profit after income tax
and dividends 11 4 – –
Fair value adjustments to derivative financial
liabilities – (121) – (121)
Change in operating assets and liabilities:
(Increase) / decrease in trade and other
receivables 2,538 (5,689) 2,174 (5,862)
(Increase) / decrease in inventories (62) (104) (62) (92)
(Increase) / decrease in other assets 78 (315) 78 (315)
Increase / (decrease) in trade payables and
accruals 5,298 1,369 5,317 1,343
Increase / (decrease) in other provisions 951 1,590 930 1,580
Increase / (decrease) in other operating
liabilities 4,471 1,137 4,456 1,148
Net cash provided by / (used in)
operating activities 23,810 28,211 23,769 28,236
31 Financial risk management
The University’s activities expose it to a variety of financial risks such as: market risk (including currency risk, fair value
interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The University’s overall risk
management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the financial performance of the University.
The University may use derivative financial instruments such as interest rate swaps to hedge certain risk exposures.
The University uses different methods to measure different types of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate, foreign exchange and other price risks and ageing analysis for credit risk.
Risk management is carried out by a central group treasury department under policies approved by the University Council.
The University does not enter into or trade financial instruments for speculative purposes.
(a) Market risk
(i) Foreign exchange risk
The University undertakes transactions with other educational institutions denominated in foreign currencies, hence
exposures to exchange rate fluctuations arise. At reporting date the transactions were insignificant and the movement
in rates throughout the year was not considered high risk.
(ii) Price risk
Price risk arises on financial instruments because of changes in equity prices in shares in unlisted entities.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
66 Southern Cross University Annual Report 2017
31 Financial risk management (continued)
(a) Market risk (continued)
(iii) Cash flow and fair value interest rate risk
Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will
fluctuate due to changes in market interest rates.
The University’s exposure to market interest rates relates primarily to the University’s long term borrowings and investments
held as interest bearing deposits and on‑call bank deposits. It is policy to protect part of the borrowings from exposure to
increasing interest rates.
The University exited an interest rate swap on 24 April 2017 which was originally entered into on 23 May 2014, for a term
of 4 years. As a result, at 31 December 2017 the interest rate swap liability had a market value of $0 (2016: $294,613).
The liability was recorded in derivative financial instruments in the statement of financial position.
Any gain or loss from remeasuring the hedging instruments at fair value is deferred in equity in the hedging reserve, to the
extent that the hedge is effective, and reclassified to income statement when the hedged interest expense is recognised.
The ineffective portion is recognised in the income statement immediately.
The swap noted above was not effective for hedge accounting, and remeasurements to fair value have therefore been
recognised in the income statement as borrowing costs.
(iv) Summarised sensitivity analysis
The following table summarises the sensitivity of the University’s financial assets and financial liabilities to interest rate risk,
foreign exchange risk and other price risk.
31 December
2017 Interest rate risk Foreign exchange risk Other price risk
‑1% +1% ‑1% +1% ‑10% +10%
Carrying
amount
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Financial
assets
Cash
and cash
tequivalents
16,616 (116) (116) 116 116 – – – – – – – –
Receivables 102,316 – – – – – – – – – – – –
Other
financial
assets ‑
Available
for sale
15,700 – – – – – – – – – (1,570) – 1,570
Financial
liabilities
Trade
and other
payables
(15,933) – – – – – – – – – – – –
Borrowings (10,020) 100 100 (100) (100) – – – – – – – –
Total (16) (16) 16 16 – – – – – (1,570) – 1,570
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 67
31 Financial risk management (continued)
(a) Market risk (continued)
(iv) Summarised sensitivity analysis
31 December
2016 Interest rate risk Foreign exchange risk Other price risk
‑1% +1% ‑1% +1% ‑10% +10%
Carrying
amount
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Result
$’000
Equity
$’000
Financial
assets
Cash and cash
equivalents 20,404 (156) (156) 156 156 – – – – – – – –
Receivables 100,977 – – – – 3 3 (3) (3) – – – –
Other financial
assets ‑
Available for
sale
11,027 – – – – – – – – – (1,103) – 1,103
Financial
liabilities
Trade and
other payables (12,390) – – – – – – – – – – – –
Borrowings (12,460) 125 125 (125) (125) – – – – – – – –
Derivative
financial
instrument
(295) (3) (3) 3 3 – – – – – – – –
Total (34) (34) 34 34 3 3 (3) (3) – (1,103) – 1,103
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
68 Southern Cross University Annual Report 2017
31 Financial risk management (continued)
(b) Credit risk
Trade accounts receivable consist of a large number of customers, spread across diverse industries and geographical areas.
The receivables are assessed after 90 days and action taken to collect the debt.
Impairment and provision against debtors has been duly considered in determining the carrying amounts of financial assets.
There has been no change in managing credit risk since the prior year.
The carrying amount of financial assets (as contained in the table in subnote 32(a) represents the University’s maximum
exposure to credit risk.
(c) Liquidity risk
The University manages liquidity risk by maintaining adequate reserves, banking facilities and continuously monitoring forecast
and actual cash flows to ensure that there is adequate liquidity to meet the University’s obligations over the near term.
The interest bearing deposits and deposits at call have an average maturity of 31 days.
There has been no variation to the objectives, policies and processes for liquidity risk since the prior period.
The following tables summarise the maturity of the University’s financial assets and financial liabilities:
Average
Interest rate
Variable
interest rate
Non
Interest
Within
1 year 1 ‑ 5 years Total
2017 2016
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial Assets:
Cash and cash
equivalents 1.98 2.28 16,587 20,373 29 31 16,588 20,373 – – 16,617 20,404
Receivables – – – – 102,316 100,977 – – – – 102,316 100,977
Total financial assets 16,587 20,373 102,345 101,008 16,588 20,373 – – 118,933 121,381
Financial Liabilities:
Payables – – – – 15,933 12,390 – – – – 15,933 12,390
Borrowings 3.70 4.17 10,020 12,460 – – 2,440 2,440 7,580 10,020 10,020 12,460
Derivative financial
instrument – 3.16 – – – – – – – 295 – 295
Total financial liabilities 10,020 12,460 15,933 12,390 2,440 2,440 7,580 10,315 25,953 25,145
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 69
32 Fair value measurements
(a) Fair value measurements
The fair value of certain financial assets and financial liabilities must be estimated for recognition and measurement
or for disclosure purposes.
Due to the short‑term nature of current receivables, the carrying value is assumed to approximate the fair value and based
on credit history, it is expected that the receivables that are neither past due nor impaired will be received when due.
The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:
Carrying Amount Fair Value
Consolidated
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial assets
Cash and cash equivalents 16,617 20,404 16,617 20,404
Receivables 102,316 100,977 102,316 100,977
Investments using the equity method 301 312 301 312
Other financial assets 15,700 11,027 15,700 11,027
Total financial assets 134,934 132,720 134,934 132,720
Financial Liabilities
Payables 15,933 12,390 15,933 12,390
Borrowings 10,020 12,460 10,020 12,460
Derivative financial instrument – 295 – 295
Total financial liabilities 25,953 25,145 25,953 25,145
Parent
Financial assets
Cash and cash equivalents 16,545 20,334 16,545 20,334
Receivables 102,292 100,961 102,292 100,961
Investments using the equity method 175 175 175 175
Other financial assets 15,700 11,027 15,700 11,027
Total financial assets 134,712 132,497 134,712 132,497
Financial Liabilities
Payables 15,887 12,328 15,887 12,328
Borrowings 10,020 12,460 10,020 12,460
Derivative financial instrument – 295 – 295
Total financial liabilities 25,907 25,083 25,907 25,083
The University measures and recognises the following assets and liabilities at fair value on a recurring basis:
‑ Investments using the equity method
‑ Other financial assets
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
70 Southern Cross University Annual Report 2017
32 Fair value measurements (continued)
(b) Fair value hierarchy
The University categorises financial assets and liabilities measured at fair value into a hierarchy based on the level of inputs
used in measurements.
Other
Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3 inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(b) Fair value hierarchy (continued)
(i) Recognised fair value measurements
Fair value measurements recognised in the statement of financial position are categorised into the following levels.
Fair value measurements at 31 December 2017
Note
2017
$’000
Level 2
$’000
Level 3
$’000
Financial assets
Available‑for‑sale financial assets 15
Equity instruments 15,700 15,700 –
Investments using the equity method 14
Associates 301 – 301
Total financial assets 16,001 15,700 301
Fair value measurements at 31 December 2016
Note
2016
$’000
Level 2
$’000
Level 3
$’000
Financial assets
Available‑for‑sale financial assets 15
‑ Equity securities 11,027 11,027 –
Investments using the equity method 14
‑ Associates 312 – 312
Total financial assets 11,339 11,027 312
Financial liabilities
Derivatives financial instrument 295 295 –
Total financial liabilities 295 295 –
There were no transfers between levels 1,2 and 3 for recurring fair value measurements during the year.
Southern Cross University’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end
of the reporting period.
(ii) Disclosed fair values
Southern Cross University has a number of assets and liabilities which are not measured at fair value, but for which the fair
values are disclosed in the notes.
The carrying value less impairment provision of trade receivables and payables is a reasonable approximation of their fair
values due to the short‑term nature of trade receivables.
The fair value of current borrowings approximates the carrying amount, as the impact of discounting is not significant.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 71
32 Fair value measurements (continued)
(c) Valuation techniques used to derive level 2 and level 3 fair values
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques.
These valuation techniques maximise the use of observable market data where it is available and rely as little as possible
on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is
the case for unlisted associated companies.
The University uses a variety of methods and makes assumptions that are based on market conditions existing at each
balance date. Specific valuation techniques used to value financial instruments include:
- The use of quoted market prices discounted to reflect the limited liquidity in the market for shareholders to sell their
holding and the likely impact of a trade sale should the shareholders realise the value of their equity interests; - Share of the net assets of unlisted entities;
- The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based
on observable yield curves.
All of the resulting fair value estimates are included in level 2 except for unlisted Associates.
(d) Fair value measurements using significant unobservable inputs (level 3)
The following table is a reconciliation of level 3 items for the periods ended 31 December 2017 and 2016.
Level 3 Fair Value Measurement 2017
Associates
$’000
Opening balance 312
Recognised in net result (11)
Closing balance 301
Level 3 Fair Value Measurement 2016
Opening balance 316
Recognised in net result (4)
Closing balance 312
(i) Transfers between levels 2 and 3 and changes in valuation techniques
There were no transfers of assets/liabilities between levels 2 and 3 during the financial year ended 31 December 2017.
(ii) Valuation inputs and relationships to fair value
There were no significant inter‑relationship between unobservable inputs that materially affects fair value
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
72 Southern Cross University Annual Report 2017
33 Retirement benefit obligations
All University employees, including casuals, receive superannuation benefits equal or exceeding the government
superannuation guarantee levy.
Defined Contribution Plan (Unisuper)
The University contributes to the UniSuper Defined Benefit Plan (‘Unisuper) (formerly Superannuation Scheme for Australian
Universities) SSAU for academic staff appointed since 1 March 1988 and all other staff from 1 July 1991. Unisuper is a post
employment defined contribution plan into which the University pays fixed contributions. The Unisuper Defined Benefit
Division (DBD) is a defined benefit plan under Superannuation Law but, as a result of Clause 34 of the Unisuper Trust Deed,
a defined contribution plan under Accounting Standard AASB 119.
Defined Benefit Plans (State Funds)
The University contributes to three closed state pension schemes (as detailed in Note 33(a)), which are subject to
reimbursement arrangements under the Higher Education Support Act 2003 in the proportion of 78:22 from the
Commonwealth and the NSW State Government respectively.
A non‑current receivable for deferred government superannuation benefits are the amounts recognised as reimbursement
rights as they are the amounts expected to be received from the Australian and New South Wales (NSW) Governments for
the emerging costs of the superannuation funds for the life of the liability.
A liability in respect of defined benefit superannuation plans is recognised in the statement of financial position, and
is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation
fund’s assets at that date. The present value of the defined benefit obligation is based on expected future payments which
arise from membership of the fund to the reporting date, calculated annually by independent actuaries. Consideration
is given to expected future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting date on national government bonds with
terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the
statement of changes in equity and in the statement of financial position. Past service costs are recognised in profit or loss
immediately.
The liabilities recorded in the statement of financial position under provisions, for all NSW Universities, have been determined
by Mercer (Australia) Pty Ltd using consistent valuation techniques.
(a) Fund specific disclosure
i) Nature of the benefits provided
The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes:
‑ State Superannuation Scheme (SSS)
‑ State Authorities Non‑Contributory Superannuation Scheme (SANCS)
‑ State Authorities Superannuation Scheme (SASS)
These schemes are all defined benefit schemes ‑ at least a component of the final benefit is derived from a multiple of member
salary and years of membership. Members receive a lump sum or pension benefits on retirement, death, disablement and
withdrawal. All schemes are closed to new members.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 73
33 Retirement benefit obligations (continued)
ii) Description of the regulatory framework
The schemes in the Pooled Fund are established and governed by the following NSW legislation:
‑ Superannuation Act 1916
‑ State Authorities Superannuation Act 1987
‑ State Authorities Non‑Contributory Superannuation Scheme Act 1987, and their associated regulations
The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth
Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector superannuation funds
as complying funds for concessional taxation and superannuation guarantee purposes.
Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the Pooled Fund will
conform with the principles of the Commonwealth retirement incomes policy relating to preservation, vesting and reporting
to members and that members’ benefits are adequately protected.
The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Board activities in a
manner consistent with the prudential controls of the SIS legislation. These provisions are in addition to other legislative
obligations on the Trustee Board and internal processes that monitor the Trustee Board’s adherence to the principles of the
Commonwealth retirement incomes policy.
An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation was performed
as at 30 June 2015. The next actuarial investigation will be performed at 30 June 2018.
iii) Description of other entities’ responsibilities for the governance of the funds
The Fund’s Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to act solely in the best
interests of fund beneficiaries. The Trustee has the following roles:
‑ Administration of the fund and payment to the beneficiaries from fund assets when required in accordance with the fund
rules;
‑ Management and investment of the fund assets; and
‑ Compliance with other applicable regulations.
iv) Description of risks
There are a number of risks to which the Fund exposes the Employer. The more significant risks relating to the defined
benefits are:
‑ Investment risk: the risk that investment returns will be lower than assumed and the Employer will need to increase
contributions to offset this shortfall;
‑ Longevity risk: The risk that pensioners live longer than assumed, increasing future pensions;
‑ Pension indexation risk: the risk that pensions will increase at a rate greater than assumed, increasing future pensions;
‑ Salary growth risk: The risk that wages or salaries (on which future benefit amounts for active members will be based)
will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring additional employer
contributions.
‑ Legislative risk: the risk is that Legislative changes could be made which increase the cost of providing the defined
benefits.
The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix. The Fund
has no significant concentration of investment risk or liquidity risk.
The trustee monitors its asset‑liability risk continuously in setting its investment strategy. It also monitors cashflows
to manage liquidity requirements. No explicit asset‑liability matching strategy is used by the Trustee.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
74 Southern Cross University Annual Report 2017
33 Retirement benefit obligations (continued)
(a) Fund specific disclosure (continued)
v) Description of any plan amendments, curtailments and settlements
There were no fund amendments, curtailments or settlements during the year.
vi) Expected Contributions
The University expects to make employer contribution’s of $395,267 (2016: $456,875) to the defined benefit plan during the
next financial year.
vii) Maturity Profile
The weighted average duration of the defined benefit obligation is 12.6 years (2016 12.9 years). The expected maturity
analysis of undiscounted benefit obligations is as follows:
Less
than
1 year
$’000
Between
1 and
2 years
$’000
Between
2 and
5 years
$’000
Over
5 years
$’000
Total
$’000
Defined benefit obligations ‑ 31 December 2017 5,240 5,335 16,371 109,792 136,738
Defined benefit obligations ‑ 31 December 2016 5,523 5,615 16,846 121,113 149,097
(b) Categories of plan assets
The analysis of the plan assets at the end of the reporting period is as follows:
2017 (%) 2016 (%)
Active Market No Active
Market Active Market No Active
Market
Short term securities 9.50 – 5.70 –
Australian fixed interest 6.90 – 5.60 –
International fixed interest 3.60 – 1.90 –
Australian equities 22.40 – 24.70 –
International equities 29.60 – 28.40 2.60
Property 3.60 5.10 3.90 5.10
Alternatives 9.80 9.60 12.40 9.70
Total 85.40 14.70 82.60 17.40
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 75
33 Retirement benefit obligations (continued)
(b) Categories of plan assets (continued)
The principal assumptions used for the purposes of the actuarial valuations (expressed as weighted averages) were:
2017
%
2016
%
Discount rate(s) 2.65 2.78
Expected rate of return on fund assets backing current pension liabilities 7.4 7.4
Expected rate of return on fund assets backing other liabilities 6.4 6.4
Expected rate(s) of salary increase 2.7 to 3.2 2.7 to 3.2
Expected rate of CPI increase 2.2 2.2
(c) Actuarial assumptions and sensitivity
The sensitivity of the defined benefit obligation to change in the significant assumptions is:
Impact on defined obligation
Change in assumption Increase in assumption Decrease in assumption
Discount rate 1.00% Increase by 14% Decrease by ‑11%
Rate of CPI 0.50% Increase by 6% Decrease by ‑6%
Salary inflation rate 0.50% Increase by 0.4% Decrease by 0.3%
Pensioner mortality 5.00% Decrease by 2% Increase by ‑1%
The above sensitivity analyses are based on a change in an assumption while holding all the other assumptions constant.
In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same method has been applied as
when calculating the defined benefit liability recognised in the statement of financial position.The methods and types
of assumptions used in the preparation of the sensitivity analysis did not change compared to the prior period.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
76 Southern Cross University Annual Report 2017
33 Retirement benefit obligations (continued)
(d) Statement of financial position amounts
Note
$’000
SASS
$’000
SANCS
$’000
SSS
$’000
Total
Liabilities
Provision for deferred government
benefits for superannuation 4,661 1,012 86,689 92,362
Assets
Receivable for deferred government
benefit for superannuation 4,659 996 86,520 92,175
Net liability recognised in the
statement of financial position 2 16 169 187
Net liability reconciliation ‑ 2017
Defined benefit obligation 9,358 1,945 102,805 114,108
Fair value of plan assets (4,696) (933) (16,117) (21,746)
Net liability 19 4,662 1,012 86,688 92,362
Reimbursement right (4,660) (996) (86,519) (92,175)
Total net liability/(asset) 2 16 169 187
Reimbursement rights ‑ 2017
Opening value of reimbursement right 4,266 626 82,169 87,061
Return on reimbursement rights 162 (5) 2,426 2,583
Remeasurements 232 375 1,924 2,531
Closing value of reimbursement right 13 4,660 996 86,519 92,175
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 77
33 Retirement benefit obligations (continued)
(d) Statement of financial position amounts (continued)
Note
$’000
SASS
$’000
SANCS
$’000
SSS
$’000
Total
Present value of obligation ‑ 2017
Opening defined benefit obligation 9,069 1,892 100,906 111,867
Current service cost 285 70 270 625
Interest expense 234 49 2,754 3,037
9,588 2,011 103,930 115,529
Remeasurements
Actuarial losses/(gains) arising from
changes in financial assumptions 39 12 1,315 1,366
Experience (gains)/losses 428 380 953 1,761
Contributions 467 392 2,268 3,127
Plan Participants 119 – 96 215
Payments from plan
Benefits paid (752) (134) (3,938) (4,824)
Taxes, premiums and expenses (67) (323) 449 59
(819) (457) (3,489) (4,765)
Closing defined benefit obligation 9,355 1,946 102,805 114,106
Note
$’000
SASS
$’000
SANCS
$’000
SSS
$’000
Total
Present value of plan assets ‑ 2017
Opening fair value of plan assets 4,803 1,261 18,696 24,760
Interest (income) 119 33 470 622
4,922 1,294 19,166 25,382
Remeasurements
Return on plan assets, excluding amounts
included in net interest expense 235 5 217 457
Contributions
Employers 239 92 127 458
Plan participants 119 – 96 215
358 92 223 673
Payments from plan
Benefits paid (752) (134) (3,938) (4,824)
Settlements (67) (323) 449 59
(819) (457) (3,489) (4,765)
Closing fair value of plans assets 4,696 934 16,117 21,747
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
78 Southern Cross University Annual Report 2017
33 Retirement benefit obligations (continued)
(d) Statement of financial position amounts (continued)
Note
$’000
SASS
$’000
SANCS
$’000
SSS
$’000
Total
Amounts recognised in the statement
of financial position ‑ 2016
Liabilities
Provision for deferred government benefits
for superannuation 4,267 630 82,211 87,108
Assets
Receivable for deferred government benefit
for superannuation 4,266 626 82,169 87,061
Net liability recognised in the
statement of financial position 1 4 42 47
Note
$’000
SASS
$’000
SANCS
$’000
SSS
$’000
Total
Net liability reconciliation 2016
Defined benefit obligation 9,070 1,891 100,906 111,867
Fair value of plan assets (4,803) (1,261) (18,695) (24,759)
Net liability 19 4,267 630 82,211 87,108
Reimbursement right 13 (4,266) (626) (82,169) (87,061)
Total net liability/(asset) 1 4 42 47
Reimbursement rights 2016
Opening value of reimbursement right 4,382 671 81,405 86,458
Return on reimbursement rights 169 19 2,523 2,711
Remeasurements (285) (64) (1,759) (2,108)
Closing value of reimbursement right 13 4,266 626 82,169 87,061
Present value of obligation 2016
Opening defined benefit obligation 10,477 2,080 102,213 114,770
Current service cost 350 80 289 719
Interest expense 288 57 2,911 3,256
11,115 2,217 105,413 118,745
Remeasurements
Actuarial losses/(gains) arising from
changes in demographic assumptions 38 12 573 623
Experience (gains)/losses (279) (102) (2,027) (2,408)
Contributions (241) (90) (1,454) (1,785)
Plan Participants 149 – 95 244
Payments from plan
Benefits paid (1,898) (217) (3,563) (5,678)
Taxes, premiums and expenses (56) (18) 415 341
(1,954) (235) (3,148) (5,337)
9,069 1,892 100,906 111,867
Closing defined benefit obligation 9,069 1,892 100,906 111,867
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 79
33 Retirement benefit obligations (continued)
(d) Statement of financial position amounts (continued)
Present value of plan assets ‑ 2016
$’000
SASS
$’000
SANCS
$’000
SSS
$’000
Total
Opening fair value of plan assets 6,016 1,365 20,807 28,188
Interest (income) 163 37 552 752
6,179 1,402 21,359 28,940
Remeasurements
Return on plan assets, excluding amounts
included in net interest expense 124 13 264 401
Contributions
Employers 305 81 125 511
Plan participants 149 – 95 244
454 81 220 755
Payments from plan
Benefits paid (1,898) (217) (3,563) (5,678)
Settlements (56) (18) 415 341
(1,954) (235) (3,148) (5,337)
Closing fair value of plans assets 4,803 1,261 18,695 24,759
(e) Amounts recognised in other statements
The following amounts are recognised in the statement of comprehensive income and included in retained earnings
(note 21(a)).
Amounts recognised in other comprehensive income Note 2017 2016
Remeasurements
Actuarial losses (gains) arising from changes in financial assumptions (1,367) (623)
Actuarial (losses) gains arising from liability experience (1,761) 2,408
Remeasurement of reimbursement right 2,531 (2,187)
Actual return on plan assets less interest income 456 400
Total amounts recognised in the Statement of Comprehensive Income 21(a) (141) (2)
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
80 Southern Cross University Annual Report 2017
34 Acquittal of Australian government financial assistance
(a) Education ‑ CGS and other Education grants
Commonwealth Grants
Scheme #1
Indigenous Student
Success Program#2
Access and
Participation Fund
Disability Performance
Funding #3
Australian Maths &
Science Partnership
Program
Parent Entity (University) Only
Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial assistance received in CASH during
the reporting period (total cash received from
Australian Government for the program)
81,050 78,758 1,865 1,372 2,861 3,610 96 95 – 332
Net accrual adjustments (2,969) 562 188 – – 153 – – 32 58
Revenue for the period 2(a) 78,081 79,320 2,053 1,372 2,861 3,763 96 95 32 390
Surplus/(deficit) from the previous year – – 10 – – – – – – –
Total revenue including accrued revenue 78,081 79,320 2,063 1,372 2,861 3,763 96 95 32 390
Less expenses including accrued expenses (78,081) (79,320) (1,813) (1,362) (2,861) (3,763) (96) (95) (32) (390)
Surplus/(deficit) for the reporting period – – 250 10 – – – – – –
Improving the Quality of Maths
& Science Teaching Programs
Promo of Exc in Learning and
Teaching
Total
Parent Entity (University) Only Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial assistance received in CASH during the reporting period
(total cash received from Australian Government for the program) – 262 10 10 85,882 84,439
Net accrual adjustments 72 20 – – (2,677) 793
Revenue for the period 2(a) 72 282 10 10 83,205 85,232
Surplus/(deficit) from the previous year – – 24 16 34 16
Total revenue including accrued revenue 72 282 34 26 83,239 85,248
Less expenses including accrued expenses (72) (282) (1) (2) (82,956) (85,214)
Surplus/(deficit) for the reporting period – – 33 24 283 34
1 Includes the basic CGS grant amount, CGS – Regional Loading, CGS – Enabling Loading, Allocated Places, Non‑Designated Courses and CGS‑Special.
2 Indigenous Student Success Program has replaced the Indigenous Commonwealth Scholarships Program and the Indigenous Support Program as of 1 January 2017. Prior year
programs are combined and reported in Indigenous Student Success Program for 2016. The reported surplus for this program of $250,000 for 2017 has approval to be rolled over for
future use by the University.
3 Disability Performance Funding includes Additional Support for Students with Disabilities and Australian Disability Clearinghouse on Education & Training.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 81
34 Acquittal of Australian government financial assistance (continued)
(b) Higher education loan programs (excl OS‑HELP)
HECS‑HELP (Aust.
Government payments
only)
FEE‑HELP #4 SA‑HELP Total
Parent Entity (University) Only Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Cash Payable/(Receivable) at the beginning of the year (1,443) (1,711) (2,284) (30) (49) (48) (3,776) (1,789)
Financial assistance received in cash during the reporting period 50,889 46,539 12,153 6,058 1,147 1,107 64,189 53,704
Cash available for the period 49,446 44,828 9,869 6,028 1,098 1,059 60,413 51,915
Less: Revenue earned 2(b) 48,314 46,271 10,148 8,312 1,116 1,108 59,578 55,691
Cash Payable/(Receivable) at the end of the year 1,132 (1,443) (279) (2,284) (18) (49) 835 (3,776)
4 Program is in respect of FEE‑HELP for Higher Education only and excludes funds received in respect of VET FEE‑HELP
(c) Department of Education and Training Research #5
Research Training Program #5 Research Support Program #6 Total
Parent Entity (University) Only Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial assistance received in CASH during the reporting period
(total cash received from the Australian Government for the
program)
4,417 4,678 3,270 3,201 7,687 7,879
Revenue for the period 2(c)&2(d) 4,417 4,678 3,270 3,201 7,687 7,879
Surplus/(deficit) from the previous year 318 361 65 37 383 398
Total revenue including accrued revenue 4,735 5,039 3,335 3,238 8,070 8,277
Less expenses including accrued expenses (4,735) (4,721) (3,335) (3,173) (8,070) (7,894)
Surplus/(deficit) for reporting period – 318 – 65 – 383
5 Research Training Program has replaced Australian Postgraduate Awards, International Postgraduate Research Scholarships and Research Training Scheme in 2017. 2016 data for the
programs that have been replaced is reported in the Research Training Program comparatives.
6 Research Support Program has replaced Joint Research Engagement, JRE Engineering Cadetships, Research Block Grants and Sustainable Research Excellence in Universities in 2017.
2016 data for the programs that have been replaced is reported in the Research Support Program comparatives.
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
82 Southern Cross University Annual Report 2017
34 Acquittal of Australian government financial assistance (continued)
(d) Total Higher Education Provider Research Training Program expenditure
Total domestic students
$’000
Total overseas students
$’000
Research Training Program Fees offsets 3,187 167
Research Training Program Stipends 1,176 157
Research Training Program Allowances 30 18
Total for all types of support 4,393 342
(e) Other Capital Funding
Linkage
Infrastructure,
Equipment and
Facilities Grant
Teaching
and Learning
Capital Fund
Education
Investment Fund Total
Parent Entity (University) Only Note
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial assistance received in CASH during the reporting period (total
cash received from Australian Government for the program) 552 – – – – 15,688 552 15,688
Revenue for the period 2(e) 552 – – – – 15,688 552 15,688
Surplus/(deficit) from the previous year – – – 5,826 – (235) – 5,591
Total revenue including accrued revenue 552 – – 5,826 – 15,453 552 21,279
Less expenses including accrued expenses (552) – – (5,826) – (15,453) (552) (21,279)
Surplus/(deficit) for the reporting period – – – – – – – –
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 83
34 Acquittal of Australian government financial assistance (continued)
(f) Australian Research Council Grants
Discovery Linkages Total
Parent Entity (University) Only
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Financial assistance received in CASH during the reporting period (total
cash received from the Australian Government for the program) 916 847 621 659 1,537 1,506
Revenue for the period 2(f) 916 847 621 659 1,537 1,506
Surplus/(deficit) from the previous year 299 390 555 379 854 769
Total revenue including accrued revenue 1,215 1,237 1,176 1,038 2,391 2,275
Less expenses including accrued expenses (626) (938) (1,010) (483) (1,636) (1,421)
Surplus/(deficit) for reporting period 589 299 166 555 755 854
(g) Other Australian Government Financial Assistance
Parent Entity (University) Only
2017
$’000
2016
$’000
Cash received during the reporting period 7,518 7,200
Cash spent during the reporting period (7,825) (4,322)
Net cash received (307) 2,878
Cash surplus/(deficit) from the previous period 2,963 85
Cash surplus/(deficit) for reporting period 2,656 2,963
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
84 Southern Cross University Annual Report 2017
34 Acquittal of Australian government financial assistance (continued)
(h) OS‑HELP
Parent Entity (University) Only Note
2017
$’000
2016
$’000
Cash received during the reporting period 641 607
Cash spent during the reporting period (791) (710)
Net cash received 2 (150) (103)
Cash surplus/(deficit) from the previous period 176 279
Cash surplus/(deficit) for the reporting period 17 26 176
(i) Student Services and Amenities Fee
Parent Entity (University) Only
2017
$’000
2016
$’000
Unspent/(overspent) revenue from previous period 44 529
SA‑HELP revenue earned 2(b) 1,116 1,108
Student services and amenities fees 4 895 848
Total revenue expendable in period 2,055 2,485
Student services expenses during period (2,325) (2,441)
Unspent/(overspent) student services revenue (270) 44
Southern Cross University ABN 41 995 651 524
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 85
INDEPENDENT AUDITOR’S REPORT
Southern Cross University
To Members of the New South Wales Parliament
Opinion
I have audited the accompanying financial statements of Southern Cross University (the University), which comprise
the Statement by the Members of Council, the Income Statement and Statement of Comprehensive Income for the
year ended 31 December 2017, the Statement of Financial Position as at 31 December 2017, the Statement of
Changes in Equity and the Statement of Cash Flows for the year then ended and Notes to the Financial Statements
comprising a Summary of Significant Accounting Policies and other explanatory information of the University and the
consolidated entity.
The consolidated entity comprises the University and the entities it controlled at the year’s end or from time to time
during the financial year.
In my opinion, the financial statements:
• give a true and fair view of the financial position of the University and the consolidated entity, as at 31
December 2017, and of their financial performance and cash flows for the year then ended in
accordance with Australian Accounting Standards
• are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public
Finance and Audit Regulation 2015
• comply with the ‘Financial Statement Guidelines for Australian Higher Education Providers for the 2017
Reporting Period’ (the Guidelines), issued by the Australian Government Department of Education and
Training, pursuant to the Higher Education Support Act 2003, the Higher Education Funding Act 1988
and the Australian Research Council Act 2001
• have been prepared in accordance with Division 60 of the Australian Charities and
Not-for-profits Commission Act 2012 and Division 60 of the Australian Charities and Not-for- profits
Commission Regulation 2013.
My opinion should be read in conjunction with the rest of this report.
Basis for Opinion
I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the standards are
described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ section of my report.
I am independent of the University in accordance with the requirements of the:
• Australian Auditing Standards
• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for Professional
Accountants’ (APES 110).
I have fulfilled my other ethical responsibilities in accordance with APES 110.
Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New South Wales are not
compromised in their roles by:
• providing that only Parliament, and not the executive government, can remove an Auditor-General
• mandating the Auditor-General as auditor of public sector agencies
• precluding the Auditor-General from providing non-audit services.
I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
86 Southern Cross University Annual Report 2017
Other information
The members of the Council of the University are responsible for the Other Information, which comprises the
information in the University’s annual report for the year ended 31 December 2017, other than the financial
report and my Independent Auditor’s Report thereon.
My opinion on the financial report does not cover the Other Information. Accordingly, I do not express any form of
assurance conclusion on the Other Information. However, I must read the Other Information and consider whether it
is materially inconsistent with the financial report, the knowledge I obtained during the audit, or appears to be
materially misstated.
If, based on the work I performed, I conclude there is a material misstatement in the Other Information, I must report
that fact.
I have nothing to report in this regard.
University Council’s Responsibilities for the Financial Statements
The Council is responsible for the preparation and fair presentation of the financial statements in accordance with
Australian Accounting Standards, the PF&A Act and the Guidelines, the Australian Charities and Not-for-profits
Commission Act 2012, and for such internal control as the Council determines is necessary to enable the
preparation and fair presentation of the financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, the Council is responsible for assessing the University’s ability to continue as a
going concern, disclosing as applicable, matters related to going concern and using the going concern basis of
accounting except where the University will be dissolved by an Act of Parliament or otherwise cease operations.
Auditor’s Responsibilities for the Audit of the Financial Statements
My objectives are to:
• obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error
• issue an Independent Auditor’s Report including my opinion.
Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in accordance
with Australian Auditing Standards will always detect material misstatements.
Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions users take based on the financial statements.
A description of my responsibilities for the audit of the financial statements is located at the Auditing and Assurance
Standards Board website at http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf The description forms part of
my auditor’s report.
My opinion does not provide assurance:
• that the University carried out its activities effectively, efficiently and economically
• about the security and controls over the electronic publication of the audited financial statements on any
website where they may be presented
• about any other information which may have been hyperlinked to/from the financial statements.
Ian Goodwin
Acting Auditor-General of NSW
12 April 2018
SYDNEY
Directors’
Report
88
Statement
of Financial
Position
93
Auditors
Independence
Declaration
91
Statement of
Changes in
Equity
94
Directors’
Declaration
114
Statement of
Profit or Loss
and Other
Comprehensive
Income
Statement of
Cash Flows
95
Notes to the
Financial
Statements
96
Independent
Auditor’s Report
115
Southern Cross Campus
Services Limited (formerly
Norsearch Limited)
ABN 57 003 082 406
Financial Statements
For the Year Ended 31 December 2017
Southern Cross University Annual Report 2017 87
92
88 Southern Cross University Annual Report 2017
Directors’
Report
31 December 2017
The directors present their report on Southern Cross Campus Services Limited for the financial year ended 31 December 2017.
Change of Company Name
On 7 April 2017, the Southern Cross University Council, in accordance with the company’s constitution, resolved to change
the name of the company to Southern Cross Campus Services Limited with effect from 3 July 2017.
Information on directors
The names of each person who has been a director during the year and to the date of this report are:
Benjamin Roche
Qualifications BSc(Hons)(UNSW), MEd(UTS)
Experience
Ben Roche is currently the Pro Vice Chancellor (Engagement) at Southern Cross University,
a Senior Associate of the AtKisson Group of international sustainability thinkers and a Director
of The Connect Project. He is Chair of the national Farming Together program, Chair of
Engagement Australia and Deputy Chair of Regional Arts NSW. Ben has worked with a range
of agencies from small not for profits to Universities, Government and the United Nations
Environment Programme on strategic approaches to education and engagement.
Appointed 3 July 2017
Special responsibilities Pro Vice Chancellor (Engagement) at Southern Cross University
David Lynch
Qualifications BEd (JCU), Med (School Admin) (JCU), DipTeach (JCU), EdD (CQU), FAACLM (OTHAUS)
Experience Over thirty years experience in the public education sector.
Special responsibilities Professor (School of Education) at Southern Cross University
Donna Moffitt
Qualifications BCom (Griffith), MStratHRM (UOW)
Experience Over thirteen years experience in the higher education sector.
Special responsibilities Director of Student Services at Southern Cross University
Paul Deegan
Qualifications BBuild (UNSW), Licensed Real Estate Agent
Experience Over thirty years experience in the property and construction industries.
Special responsibilities Real Estate Agent at LJ Hooker, Lismore NSW 2480
Chris Patton
Qualifications BA (UBC), MA (Guelph)
Experience Over twenty years experience in both the public and private education sector.
Resigned 25 August 2017
Special responsibilities Vice President (Global) at Southern Cross University
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Southern Cross Campus Services Limited ABN 57 003 082 406
Southern Cross University Annual Report 2017 89
Directors’
Report
31 December 2017
Company Secretary
Belinda Atkinson is a Lawyer and the Head, Governance Services at Southern Cross University. Belinda has been the Company
Secretary of Southern Cross Campus Services Limited for 1 year.
Principal activities
The principal activity of Southern Cross Campus Services Limited (‘the company’) during the financial year was to provide
on‑campus amenities and services to students and staff of Southern Cross University. These principal activities include
operating a licensed bar, function room, pool and gymnasium.
No significant changes in the nature of the Company’s activities occurred during the financial year.
Short term and long term objectives
The Company’s short and long term objective is to provide services and amenities to students and staff of the University.
Strategy for achieving the objectives
To achieve these objectives, the Company has adopted the strategy to provide high quality service in the provision
of on‑campus food and beverage services and other amenities.
Performance measure
The Company measures performance through the analysis of metrics relating to student and staff usage of facilities provided.
Members guarantee
The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. On 7 April 2017, the
Southern Cross University Council, in accordance with the company’s constitution, resolved to terminate the membership
of Chris Patton, David Lynch, Donna Moffitt and Paul Deegan and appoint itself as the sole member of the company. As the
sole member, Southern Cross University, undertakes to contribute to the property of the Company, in the event of it being
wound up, such an amount as may be required not exceeding $ 20. At 31 December 2017, the collective liability of members
was $ 20 (2016: $ 80).
Going concern
Notwithstanding the deficiency of net assets, the financial report has been prepared on a going concern basis as the
directors have received a guarantee of continued financial support from the Company’s ultimate parent entity, Southern
Cross University and the directors believe that such financial support will continue to be made available.
Southern Cross Campus Services Limited ABN 57 003 082 406
90 Southern Cross University Annual Report 2017
Directors’
Report
31 December 2017
Meetings of directors
During the financial year, 3 meetings of directors (including committees of directors) were held. Attendances by each
director during the year were as follows:
Directors’ Meetings
Number eligible
to attend
Number
attended
Benjamin Roche 2 2
David Lynch 3 2
Donna Moffitt 3 2
Paul Deegan 3 3
Chris Patton 2 1
Auditor’s independence declaration
The lead auditor’s independence declaration in accordance with section 307C of the Corporations Act 2001, for the year
ended 31 December 2017 has been received and can be found on page 4 of the financial report.
Signed on behalf of and in accordance with the resolution of the Board of Directors in accordance with section 298(2)(a)
of the Corporations Act 2001:
Southern Cross Campus Services Limited ABN 57 003 082 406
Southern Cross University Annual Report 2017 91
To the Directors
Southern Cross Campus Services Limited
Auditor’s Independence Declaration
As auditor for the audit of the financial statements of Southern Cross Campus Services Limited for the
year ended 31 December 2017, I declare, to the best of my knowledge and belief, there have been no
contraventions of:
• the auditor independence requirements of the Corporations Act 2001 in relation to the audit
• any applicable code of professional conduct in relation to the audit.
Margaret Crawford
Auditor-General of NSW
21 March 2018
SYDNEY
92 Southern Cross University Annual Report 2017
Southern Cross Campus Services Limited ABN 57 003 082 406
Statement of
Profit or Loss
and Other
Comprehensive
Income
For the Year Ended
31 December 2017
Note
2017
$
2016
$
Revenue 2 1,786,302 1,460,033
Other income 2 704,936 672,238
Costs of goods sold (331,405) (294,083)
Employee benefits expense (1,743,189) (1,395,480)
Impairment expense 152 (152)
Depreciation expense (35,590) (33,526)
Other expenses 3 (759,949) (649,110)
Net loss for the year from continuing operations (378,743) (240,080)
Total comprehensive income (378,743) (240,080)
Net loss attributable to members of equity (378,743) (240,080)
The accompanying notes form part of these financial statements.
Southern Cross University Annual Report 2017 93
Southern Cross Campus Services Limited ABN 57 003 082 406
Statement
of Financial
Position
As At 31 December 2017
Note
2017
$
2016
$
Assets
Current assets
Cash and cash equivalents 4 71,565 70,142
Trade and other receivables 5 33,474 20,193
Inventories 6 29,139 30,614
Prepayments 1,655 –
Total current assets 135,833 120,949
Non‑current assets
Property, plant and equipment 7 138,848 139,619
Total non‑current assets 138,848 139,619
Total assets 274,681 260,568
Liabilities
Current liabilities
Trade and other payables 8 645,578 292,453
Provisions 9 105,612 73,020
Deferred revenue 45,319 29,143
Total current liabilities 796,509 394,616
Non‑current liabilities
Provisions 9 8,663 17,700
Total non‑current liabilities 8,663 17,700
Total liabilities 805,172 412,316
Net liabilities (530,491) (151,748)
Equity
Accumulated losses 10 (530,491) (151,748)
Total equity (530,491) (151,748)
The accompanying notes form part of these financial statements.
94 Southern Cross University Annual Report 2017
Southern Cross Campus Services Limited ABN 57 003 082 406
Accumulated
losses
$
Balance at 1 January 2016 88,332
Net loss attributable to members of equity (240,080)
Balance at 31 December 2016 (151,748)
Balance at 1 January 2017 (151,748)
Net loss attributable to members of equity (378,743)
Balance at 31 December 2017 (530,491)
Statement
of Changes
in Equity
For the Year Ended
31 December 2017
The accompanying notes form part of these financial statements.
Southern Cross University Annual Report 2017 95
Southern Cross Campus Services Limited ABN 57 003 082 406
Statement
of Cash Flows
For the Year Ended
31 December 2017
Note
2017
$
2016
$
Cash flows from operating activities:
Receipts from customers 2,455,289 2,035,959
Payments to suppliers and employees (2,665,301) (2,175,205)
Amounts advanced from related parties 315,989 189,238
GST paid (120,918) (74,260)
Net cash used in operating activities 16 (14,941) (24,268)
Cash flows from investing activities:
Proceeds from sale of plant and equipment 16,364 5,265
Net cash generated by investing activities 16,364 5,265
Cash flows from financing activities:
Net cash generated by financing activities – –
Net increase / (decrease) in cash and cash equivalents held 1,423 (19,003)
Cash and cash equivalents at beginning of year 70,142 89,145
Cash and cash equivalents at end of financial year 4 71,565 70,142
The accompanying notes form part of these financial statements.
96 Southern Cross University Annual Report 2017
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
1 Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all years reported, unless otherwise stated.
(a) Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with Australian
Accounting Standards.
Material accounting policies adopted in the preparation of these financial statements are presented below and have been
consistently applied unless otherwise stated.
Additionally the statements have been prepared in accordance with following statutory requirements:
• Corporations Act 2001
• Public Finance and Audit Act 1983 and the Public Finance and Audit Regulation 2015
• Australian Charities and Not for profit Commission Act 2012 and Australian Charities and Not for profit Commission
Regulations 2013
Southern Cross Campus Services Limited is a not‑for‑profit entity and these statements have been prepared on that basis.
Some of the requirements for not‑for‑profit entities are inconsistent with the IFRS requirements. The main impact is in the
following accounting treatments:
• the offsetting of impairment losses within a class of assets
• the timing of the recognition of non‑reciprocal revenue
Date of authorisation for issue
The financial statements were authorised for issue by the directors of Southern Cross Campus Services Limited on 27 March
2018.
Historical cost convention
These financial statements have been prepared on an accrual basis and under the historical cost convention, as modified
by the revaluation of financial assets and liabilities and certain classes of property, plant and equipment and investment
property, where applicable.
Critical accounting estimates
The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain
critical accounting estimates.
It also requires management to exercise its judgment in the process of applying Southern Cross Campus Services Limited’s
accounting policies.
The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to
the financial statements, are disclosed below:
‑ Measurement and recognition of employee benefits provisions
- Impairment of trade and other receivables
‑ Estimated useful life assessments of property, plant and equipment assets
‑ Impairment of property, plant and equipment assets
Going concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and settlement of liabilities in the ordinary course of business.
A letter of unconditional financial support has been provided by Southern Cross University, the Company’s ultimate parent
entity. The parent entity will support the Company financially to ensure the Company can pay its debts as and when they
fall due.
Southern Cross University Annual Report 2017 97
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
1 Summary of Significant Accounting Policies (continued)
(b) Comparative Amounts
Where necessary, comparative information has been reclassified to enhance comparability in respect of changes
in presentation adopted in the current year. Comparative information has been reclassified to enhance comparability
in respect of changes in presentation adopted in the current year.
(c) Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits
associated with the transaction will flow to the entity and specific criteria relating to the type of revenue as noted below,
has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts
and rebates.
All revenue is stated net of the amount of goods and services tax (GST).
Revenue from the rendering of services is recognised when the outcome of the services provided can be measured reliably.
If this is the case then the stage of completion of the services is used to determine the appropriate level of revenue to be
recognised in the period.
If the outcome cannot be reliably measured then revenue is recognised to the extent of expenses recognised that are
recoverable. Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the
buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery to the
customer.
Revenue from the sale of goods is recognised on transfer of goods to the customer as this is deemed to be the point in time
when risks and rewards are transferred and there is no longer any ownership or effective control over the goods.
Membership revenue is recognised as income in the year of receipt, except to the extent that membership revenue relates
to future periods. Such receipts (or portion thereof) are treated as deferred revenue in the statement of financial position.
Interest revenue is recognised using the effective interest method.
(d) Employee benefits
i) Wages and salaries
Liabilities for short‑term employee benefits including wages and salaries, non‑monetary benefits and profit‑sharing bonuses
which are expected to be settled wholly before 12 months after the end of the period are measured at the amount expected
to be paid when the liability is settled and recognised in other payables.
ii) Annual leave and sick leave
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave
in the period the related service is rendered.
Liabilities recognised in respect of short‑term employee benefits, are measured at their nominal values using the
remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of long‑term employee benefits are measured as the present value of the estimated future
cash outflows to be made by the Company in respect of services provided by employees up to reporting date.
iii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value
of expected future payments to be made in respect of services provided by employees up to the reporting date using
the projected unit credit method. An actuarial assessment is performed every year and gives consideration to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future payments are
discounted using market yields at the reporting date on Commonwealth government bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
iv) Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee
accepts voluntary redundancy in exchange for these benefits. The company recognises termination benefits when it is
demonstrably committed to either terminating the employment of current employees according to a detailed formal plan
without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits not expected to be settled wholly before 12 months after balance date are discounted to present value.
98 Southern Cross University Annual Report 2017
1 Summary of Significant Accounting Policies (continued)
(e) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year,
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
(f) Leases
(i) Finance leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal
ownership that are transferred to the Company are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the
leased property or the present value of the minimum lease payments, including any guaranteed residual values.
Lease payments are allocated between the reduction of the lease liability and the lease interest expense for that period.
Leased assets are depreciated on a straight‑line basis over their estimated useful lives where it is likely that the Company
will obtain ownership of the asset or over the term of the lease.
(ii) Operating leases
Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as
expenses on a straight‑line basis over the life of the lease term. Lease incentives under operating leases are recognised as
a liability and amortised on a straight‑line basis over the life of the lease term.
(g) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short‑term highly liquid investments
with original maturities of three months or less, and bank overdrafts.
(h) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment. Trade receivables are due for settlement no more than 30 days from the
date of recognition.
Collectability of trade receivables is reviewed on an ongoing basis. Debts known to be uncollectible are written off.
A provision for impairment of receivables is established when there is objective evidence that the Company will not be able
to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor,
probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments (more
than 30 days overdue) are considered indicators that the trade receivable is impaired.
The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future
cash flows, discounted at the effective interest rate. Cash flows relating to short‑term receivable are not discounted if the
effect of discounting is immaterial. The amount of the provision is recognised in the statement of comprehensive income.
(i) Inventories
Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined using the
first‑in‑first‑out basis and are net of any rebates and discounts received.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the
reporting date and inventory is written down through an obsolescence provision if necessary.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 99
1 Summary of Significant Accounting Policies (continued)
(j) Property, Plant and Equipment
All property, plant and equipment is stated at historical cost less accumulated depreciation and impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include gains or losses
that were recognised in other comprehensive income on qualifying cash flow hedges of foreign currency purchases
of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can
be measured reliably.
All other repairs and maintenance are charged to the Statement of Profit or Loss and Other Comprehensive Income during
the financial period in which they are incurred.
Depreciation on assets is calculated using the straight‑line method to allocate their cost, net of their residual values, over
their estimated useful lives, as follows:
Class of Asset Useful life (yrs)
Plant and Equipment 5 ‑ 10
Motor Vehicles 5
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property,
plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and
is recognised in profit or loss.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
100 Southern Cross University Annual Report 2017
1 Summary of Significant Accounting Policies (continued)
(k) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the instrument. For financial assets, this is the equivalent to the date that the Company commits itself to either the
purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified
‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at either amortised cost using the effective interest rate method or cost.
Amortised cost is calculated as:
(a) the amount at which the financial asset or financial liability is measured at initial recognition
(b) less principal repayments
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the
maturity amount calculated using the effective interest method
(d) less any reduction for impairment.
The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent
to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other
premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the
financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net
cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense
in profit or loss.
(i) Receivables
Receivables are non‑derivative financial assets with fixed or determinable payments that are not quoted in an active market
and are subsequently measured at amortised cost.
Receivables are included in current assets, except for those which are not expected to mature within 12 months after the
end of the reporting year.
(ii) Financial liabilities
Non‑derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fees payable
on the establishment of loan facilities are recognised as transaction costs of the loan.
(iii) Impairment
At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or
group of financial assets is impaired.
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred,
the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows discounted at the financial assets original effective interest rate.
Impairment on receivables is reduced through the use of an allowance accounts, all other impairment losses on financial
assets at amortised cost are taken directly to the asset.
(l) Income Tax
No provision for income tax has been raised as the Company is exempt from income tax under Div 50 of the Income Tax
Assessment Act 1997.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 101
1 Summary of Significant Accounting Policies (continued)
(m) Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount
of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO
is included as part of receivables or payables in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from
investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating
cash flows.
(n) Impairment of assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units).
Non‑financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment
at each reporting date.
(o) New Accounting Standards and Interpretations
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates
for future reporting periods. The Company has decided against early adoption of these Standards. The following table
summarises those future requirements, and their impact on the Company:
Standard
Name
Effective
date for
entity
Requirements Impact
AASB 9
Financial
Instruments
and amending
standards
AASB 2010‑7 /
AASB 2014‑7
1 January
2018
Changes to the classification and
measurement requirements for
financial assets and financial liabilities.
New rules relating to derecognition
of financial instruments.
The impact of AASB 9 has not yet been
determined.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
102 Southern Cross University Annual Report 2017
1 Summary of Significant Accounting Policies (continued)
(o) New Accounting Standards and Interpretations (continued)
Standard
Name
Effective
date for
entity
Requirements Impact
AASB 15
Revenue from
Contracts with
Customers,
AASB 1058
Income
of Not‑for‑Profit
Entities, and
amending
standards.
1 January
2019
AASB 15 establishes a single and
comprehensive framework which
sets out how and when revenue is
recognised. The core principle of
AASB 15 is that revenue is recognised
when transfers of goods or services
to customers occur in exchange
for consideration which the vendor
expects to be entitled to in exchange
for the provision of those goods or
services (i.e. fulfilment of performance
obligations). Revenue will only be
recognised when control over the
goods or services is transferred to the
customer, which is either over time or
at a point in time.
Furthermore, AASB 1058 amends the
income recognition requirements
that apply to not‑for‑profit entities
and establishes principles for
not‑for‑profit entities that apply to:
(a) transactions where the consideration
to acquire an asset is significantly less
than fair value principally to enable
a not‑for‑profit entity to further its
objectives;
(b) the receipt of volunteer services;
and
(c) transfers made to enable an entity
to acquire or construct a non‑financial
asset for its own use.
The company is in the process of
assessing the changes, if any, to its
revenue recognition policies upon
the adoption of AASB 15 and AASB
- Until management completes
that process, the company is unable
to reasonably quantify the expected
financial impacts of those Standards
in future periods.
The company intends to adopt the
‘modified retrospective’ approach to
the initial application of AASB 15 and
AASB 1058. That approach applies the
new standards from the date of initial
application on 1 January 2019 and will
not result in the restatement of FY 2018
comparative financial information.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 103
2 Revenue and Other Income
2017 2016
$ $
Revenue
Membership revenue 888,851 734,334
Facilities hire revenue 28,858 5,220
Catering revenue 606,084 468,423
Bar sales 187,787 186,844
1,711,580 1,394,821
Other revenue 74,722 65,212
Total Revenue 1,786,302 1,460,033
Other Income
Cost recoveries 704,936 666,973
Net gain on disposal of plant and equipment – 5,265
Total Other income 704,936 672,238
3 Other expenses
Utilities 241,029 241,995
Fees and charges 190,360 130,286
Audit fees 27,540 27,000
Cleaning services 43,410 50,051
Security costs 22,697 11,734
Net loss on disposal of plant and equipment 5,543 –
Other costs 229,370 188,044
Total Other expenses 759,949 649,110
4 Cash and cash equivalents
Cash at bank and in hand 71,565 70,142
Total cash and cash equivalents 71,565 70,142
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
104 Southern Cross University Annual Report 2017
4 Cash and cash equivalents (continued)
(a) Reconciliation to cash at the end of the year
The above figures are reconciled to cash at the end of the year as shown in the statement of cash flows as follows:
2017
$
2016
$
Balances as above 71,565 70,142
Statement of cash flows balance 71,565 70,142
(b) Cash at bank
Cash in operating accounts earns interest at variable interest rates.
5 Trade and other receivables
Current
Trade receivables 28,307 15,504
Provision for impairment – (152)
28,307 15,352
Other receivables 5,167 4,841
Total current trade and other receivables 33,474 20,193
Impaired receivables
As at 31 December 2017 current receivables of the Company with a nominal value of $Nil (2016: $152) were impaired.
The amount of the provision was $Nil (2016: $152).
The ageing of these receivables is as follows:
Current receivables
6 to 12 months – 103
Over 12 months – 49
- 152
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 105
5 Trade and other receivables (continued)
As at 31 December 2017 trade receivables of $13,669 (2016:$2,422) were past due but not impaired. These relate to a
number of independent customers for whom there is no recent history of default. The ageing analysis of these receivables
is as follows:
2017
$
2016
$
Past due but not impaired receivables
Between 0 to 3 months 13,669 2,422
Movements in the provision for impaired receivables are as follows:
At 1 January 152 –
Provision for impairment recognised during the year – 152
Unused amount reversed (152) –
At 31 December – 152
The creation and release of the provision for impaired receivables has been included in impairment expenses in the
statement of profit or loss and other comprehensive income. Amounts charged to the provision account are generally
written off when there is no expectation of recovering additional cash.
The other amounts within receivables do not contain impaired assets and are not past due. Based on credit history, it is
expected that these amounts will be received when due.
The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short‑term nature
of the balances.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.
6 Inventories
Current
At cost:
Food and beverage stock 29,139 30,614
Total inventories 29,139 30,614
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
106 Southern Cross University Annual Report 2017
7 Property, plant and equipment
2017
$
2016
$
Plant and equipment
At cost 182,464 208,434
Accumulated depreciation (97,544) (68,815)
Total plant and equipment 84,920 139,619
Motor vehicles
At cost 56,725 –
Accumulated depreciation (2,797) –
Total motor vehicles 53,928 –
Total property, plant and equipment 138,848 139,619
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end
of the current financial year are as follows:
Plant and
Equipment
$
Capital
Works in
Progress
$
Total
$
Year ended 31 December 2016
Opening net book value 147,175 25,970 173,145
Transfers 25,970 (25,970) –
Depreciation (33,526) – (33,526)
Closing net book amount 139,619 – 139,619
Plant and
Equipment
$
Motor
Vehicles
$
Total
$
Year ended 31 December 2017
Opening net book value 139,619 – 139,619
Additions – 56,725 56,725
Disposals (21,907) – (21,907)
Depreciation expense (32,792) (2,797) (35,589)
Closing net book amount 84,920 53,928 138,848
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 107
8 Trade and other payables
Note
2017
$
2016
$
Current
Trade payables 1,314 5,615
Related party payables 15(c) 561,952 189,238
Other payables 82,312 97,600
Total current trade and other payables 645,578 292,453
9 Provisions
Current provisions expected to be settled wholly within 12 months
Employee benefits
Annual leave 46,661 35,819
Long service leave 4,836 2,463
51,497 38,282
Current provisions expected to be settled
wholly after more than 12 months
Employee benefits
Annual leave 31,342 24,092
Long service leave 22,773 10,646
54,115 34,738
Total current provisions 105,612 73,020
Non‑current provisions
Employee benefits
Long service leave 8,663 17,700
Total non‑current provisions 8,663 17,700
10 Accumulated losses
(Accumulated losses)/retained earnings at the beginning of the financial year (151,748) 88,332
Net result for the year (378,743) (240,080)
Accumulated losses at end of the financial year (530,491) (151,748)
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
108 Southern Cross University Annual Report 2017
11 Remuneration of Auditors
2017
$
2016
$
Remuneration of the auditor of the Company, Audit Office of NSW, for:
Auditing the financial report 27,540 27,000
12 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 31 December 2017 (31 December 2016: None).
13 Events Occurring After the Reporting Date
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the Company, the results of those operations or the state of affairs of the Company in future
financial years.
14 Key Management Personnel Disclosures
(a) Directors
The names of directors of Southern Cross Campus Services Limited who held office during the financial year are:
Benjamin Roche Appointed 3 July 2017
David Lynch
Donna Moffitt
Paul Deegan
Chris Patton Resigned 25 August 2017
The above persons have been in office since the start of the year unless otherwise stated.
(b) Directors and responsible officers remuneration
No income is paid or payable, or otherwise made available, to board members by the company in connection with the
management of affairs of the company.
The independent board member, Paul Deegan, is external to the company and is not remunerated. The remaining board
members and responsible officers are remunerated by the company’s ultimate parent entity Southern Cross University.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 109
15 Related Parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
(a) Ultimate Parent Entity
The Company is a wholly owned subsidiary of its ultimate parent entity, Southern Cross University.
Transactions with Southern Cross University for services provided are fully re‑imbursed by the Company. The Company
operates from premises owned by Southern Cross University at no charge and the Company is unable to determine the
value for this charge.
(b) Transactions with related parties
The following transactions occurred with related parties:
Note
2017
$
2016
$
Parent
Catering services 176,855 144,246
Cost recoveries 704,936 666,973
Equipment hire 9,445 2,098
Other costs (1,715) (3,300)
(c) Balances to related parties
Current
Amount payable to:
Ultimate parent entity 8 561,952 189,238
(d) Terms and Conditions
Related party outstanding balances are unsecured and have been provided on interest‑free terms.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
110 Southern Cross University Annual Report 2017
16 Reconciliation of result for the year to cashflows from operating activities
Reconciliation of net income to net cash provided by operating activities:
2017 2016
$ $
Net result for the year (378,743) (240,080)
Cash flows excluded from profit attributable to operating activities
Non‑cash flows in net result:
Depreciation expense 35,590 33,526
Net loss/(gain) on disposal of plant and equipment 5,543 (5,265)
Impairment of trade receivables – 152
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables (13,281) (14,225)
(Increase)/decrease in other assets (1,655) 998
(Increase)/decrease in inventories 1,475 (13,035)
Increase/(decrease) in trade and other payables 296,399 214,977
Increase/(decrease) in provisions 23,555 9,464
Increase/(decrease) in other liabilities 16,176 (10,780)
Cash flows used in operating activities (14,941) (24,268)
17 Fair Value Measurement
(a) Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
purposes, where applicable.
Due to the short‑term nature of the current receivables, the carrying value is assumed to approximate the fair value and based
on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.
The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:
Carrying Amount Fair Value
2017
$
2016
$
2017
$
2016
$
Financial assets
Cash and cash equivalents 71,565 70,142 71,565 70,142
Trade and other receivables 28,415 15,534 28,415 15,534
Total financial assets 99,980 85,676 99,980 85,676
Financial Liabilities
Trade and other payables 626,376 272,554 626,376 272,554
Total financial liabilities 626,376 272,554 626,376 272,554
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 111
18 Company Details
The registered office of and principal place of business of the company is:
Southern Cross Campus Services Limited
Southern Cross University
Military Road
EAST LISMORE NSW 2480
19 Financial Risk Management
The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s
overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the entity.
The Company uses different methods to measure different types of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit risk and daily
assessment of investment portfolios to determine market risk.
The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options.
(a) Market risk
(i) Foreign exchange risk
The company does not undertake transactions in foreign currency or hold any financial instruments in a foreign currency.
As such the company is not exposed to currency risk.
(ii) Price risk
Price risk arises on financial instruments because of changes in commodity prices or equity prices. The Company is not
exposed to any material commodity price risk.
(iii) Cash flow and fair value interest rate risk
Interest rate risk refers to the risk that the value of a financial instrument will fluctuate as a result of changes in market
interest rates.
The Company’s exposure to market interest rates relates primarily to the Company’s investments on‑call bank deposits.
The following table summarises the sensitivity of the Company’s financial assets and financial liabilities to interest rate risk.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
112 Southern Cross University Annual Report 2017
19 Financial Risk Management (continued)
(a) Market risk (continued)
31 December 2017 Interest rate risk
‑1% +1%
Carrying
amount
$
Result
$
Equity
$
Result
$
Equity
$
Financial assets
Cash and cash equivalents 71,565 (716) (716) 716 716
Trade and other receivables 28,415 – – – –
Financial liabilities
Trade and other payables 626,376 – – – –
Total increase/(decrease) (716) (716) 716 716
31 December 2016 Interest rate risk
‑1% +1%
Carrying
amount
$
Result
$
Equity
$
Result
$
Equity
$
Financial assets
Cash and cash equivalents 70,142 (701) (701) 701 701
Trade and other receivables 15,534 – – – –
Financial liabilities
Trade and other payables 272,554 – – – –
Total increase/(decrease) (701) (701) 701 701
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss
to the Company.
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial
institutions, as well as credit exposure to wholesale and retail customers, including outstanding receivables and committed
transactions.
Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing
credit evaluation is performed on the financial condition of accounts receivable. Trade receivables are assessed after
60 days and action taken to collect the debt. There has been no change in managing credit risk since the prior year.
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University Annual Report 2017 113
19 Financial Risk Management (continued)
(c) Liquidity risk
Liquidity risk arises from the Company’s management of working capital and the finance charges and principal repayments
on its debt instruments. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they
fall due.
The Company manages its liquidity needs by maintaining adequate reserves, banking facilities and continuously monitoring
forecast and actual cash flows.
There have been no variations to the objects, policies and processes for liquidity risk since the prior period.
The following tables summarise the maturity of the Company’s financial assets and financial liabilities:
Average
Interest rate
Variable
interest rate
Non‑Interest
Bearing
Within
1 year
2017
%
2016
%
2017
$
2016
$
2017
$
2016
$
2017
$
2016
$
Financial Assets:
Cash and cash equivalents 1.30 1.30 67,525 63,658 4,040 6,484 71,565 70,142
Trade and other receivables – – – – 28,415 15,534 28,415 15,534
Total Financial Assets 67,525 63,658 32,455 22,018 99,980 85,676
Financial Liabilities:
Trade and other payables – – – – 626,376 272,554 626,376 272,554
Total Financial Liabilities – – – – 626,376 272,554 626,376 272,554
Southern Cross Campus Services Limited ABN 57 003 082 406
Notes to the Financial Statements
For the year ended 31 December 2017
Southern Cross University ABN 41 995 651 524
114 Southern Cross University Annual Report 2017
The directors of the Company declare that:
- The financial statements and notes, set out on pages 92 to 113, are in accordance with the Corporations Act 2001 and:
a. comply with Australian Accounting Standards, the Public Finance and Audit Act 1983, Public Finance and Audit
Regulation 2015, Australian Charities and Not‑for‑profit Commission Act 2012 and Australian Charities and Not‑for‑profit
Commission Regulation 2013; and
b. give a true and fair view of the financial position as at 31 December 2017 and of the performance for the year ended
on that date of the Company. - In the directors opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable with the continuing support of creditors.
This declaration is made in accordance with a resolution of the Board of Directors in accordance with section 295(5)(a) of the
Corporations Act 2001.
Directors’
Declaration
Southern Cross Campus Services Limited ABN 57 003 082 406
Southern Cross University Annual Report 2017 115
Southern Cross University ABN 41 995 651 524
116 Southern Cross University Annual Report 2017
Appendix A
Staff employment
ALL STAFF FTE*
Nominal FTE 2011 2012 2013 2014 2015 2016 2017
Academic 331.9 347.3 363.7 326.0 319.0 310.7 313.2
Professional 557.1 563.1 575.0 553.4 519.0 515.2 526.5
TOTAL 889.0 910.4 938.8 879.4 838.0 825.9 839.7
*This data excludes staff employed on a casual/sessional basis.
Figures might not add exactly to the total FTE due to rounding.
Academic Staff
Nominal FTE 2011 2012 2013 2014 2015 2016 2017
Above Senior lecturer 71.1 73.0 75.6 68.6 77.1 73.0 75.3
Senior lecturer 85.1 88.0 91.4 79.0 80.2 84.0 82.8
Lecturer 113.9 147.2 152.8 142.0 122.4 118.9 123.9
Below lecturer 61.8 39.1 44.0 36.4 39.3 34.9 31.2
TOTAL 331.9 347.3 363.7 326.0 319.0 310.7 313.2
Profess
Above senior lecturer = Levels D, E (plus VC and SDVC)
Senior lecturer = Level C
Lecturer = Level B
Below lecturer = Level A
Professional staff
Nominal FTE 2011 2012 2013 2014 2015 2016 2017
HEW 1 1.6 8.2 6.6 7.0 8.0 7.8 7.6
HEW 2 2.5 2.5 3.1 3.5 2.0 0.5 1.0
HEW 3 30.7 20.6 16.0 16.8 17.4 12.1 12.4
HEW 4 143.2 145.2 146.3 139.0 124.4 117.4 118.2
HEW 5 148.1 142.6 149.4 142.3 133.9 132.7 129.1
HEW 6 86.2 90.4 92.5 89.7 79.1 89.2 97.6
HEW 7 69.9 73.9 82.6 85.0 88.5 89.7 92.9
HEW 8 42.2 42.9 38.5 32.6 27.0 31.0 30.2
HEW 9 10.4 10.4 12.1 10.6 13.8 12.0 12.0
HEW 10 9.5 11.5 15.0 12.0 12.0 9.0 10.0
Above Level 10 13.0 15.0 13.0 15.0 12.9 13.9 15.5
TOTAL 557.1 563.1 575.0 553.4 519.0 515.2 526.5
*This data excludes staff employed on a casual/sessional basis. Figures might not add exactly to the total FTE due to rounding.
Source: MIS Government Staff Cube – 27th February 2018
Southern Cross University Annual Report 2017 117
118 Southern Cross University Annual Report 2017
Appendix B
Senior Executives
2017 2016
Band Female Male Female Male
Band 1(Executive) 1
Band 2 (Executive) 2 2 1 2
Band 3 (Executive) 2 1 2
Band 4 (Executive)
Above Band 4 (Executive) 1 1
Totals 2 6 2 5
8 7
In 2017, 2.11% of the Southern Cross University’s employee related expenditure was related to senior executives, compared to
2.16% in 2016.
Band Range $ Average remuneration
2017 $ 2016 $
Band 1 (Executive) $183,300 to $261,450 $238,500 $0
Band 2 (Executive) $261,451 to $328,900 $299,650 $322,867
Band 3 (Executive) $328,901 to $463,550 $338,750 $352,233
Band 4 (Executive) $463,551 to $535,550 $0 $0
Above Band 4 (Executive) Over $535,550 $712,300 $713,700
Southern Cross University Annual Report 2017 119
Appendix C
Trends in the representation of employees in diversity groups
Extract of data for 2016/2017 reporting period (as at 31 March 2017; excludes casual staff)
Academic Staff Benchmark
or target 2014 2015 2016 2017
Women 50% 49.2% 50.3% 49.8% 49.3%
Aboriginal people and Torres Strait Islanders 2.6% 1.4% 1.5% 1.8% 1.8%
People whose first language was not English 19% 7.3% 7.4% 8.7% 8.4%
People with disability NA 6.4% 6.5% 6.3% 6.6%
People with disability requiring
work-related adjustment 1.1% 0.8% 0.6% 0.6% 0.6%
Professional Staff Benchmark
or target 2014 2015 2016 2017
Women 50% 66.8% 67.9% 67.1% 66.3%
Aboriginal people and Torres Strait Islanders 2.6% 3.5% 3.2% 3.2% 2.8%
People whose first language was not English 19% 3% 3% 2.8% 3.8%
People with disability NA 4% 3.5% 3.6% 3.3%
People with disability requiring
work-related adjustment 1.1% 0.3% 0.2% 0.2% 0.2%
120 Southern Cross University Annual Report 2017
Appendix C
Trends in the distribution of employees in diversity groups #
Academic Staff Benchmark
or target
Distribution Index
2014 2015 2016 2017
Women 100 90 90 93 88
Aboriginal people and Torres Strait Islanders 100 119 139 120 107
People whose first language was not English 100 92 93 89 98
People with disability 100 100 101 93 104
People with disability requiring work-related
adjustment 100 136 127 89 89
Professional Staff Benchmark
or target
Distribution Index
2014 2015 2016 2017
Women 100 87 90 89 91
Aboriginal people and Torres Strait Islanders 100 87 81 87 85
People whose first language was not English 100 92 94 92 93
People with disability 100 102 105 102 100
People with disability requiring work-related
adjustment
100 119 106 104 104
A Distribution Index of 100 indicates that the centre of the distribution of the EEO groups across salary levels is equivalent
to that of other staff. Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than
is the case for other staff. The more pronounced this tendency is, the lower the index will be. In some cases the index may be
more than 100, indicating that the EEO group is less concentrated at lower salary levels.
Southern Cross University Annual Report 2017 121
Appendix D
Frequency of meetings and members’ attendance at meetings
Council 2017
9 Feb 7 Apr 9 Jun 22 Sep 23 Nov
B Boyd
N Burton Taylor
A Curtin
M d’Almeida
N Genge Resigned 28 Feb 2017
J Granger
M Hughes
Term commenced
21 Aug 2017
M Jones
T Ledgerwood
C Lugnan
Term commenced
4 Sep 2017,
resigned 8 Nov 2017
A Matis Resigned 13 June 2017
S Nancarrow
Term concluded
21 Aug 2017
L O’Grady
Term commenced
17 Feb 2017
J Shanahan
Term concluded
3 Sep 2017
A Shoemaker
M Sweeny
Term concluded
18 Feb 2017
A Wessell
Legend
Attended meeting
Absent from meeting
122 Southern Cross University Annual Report 2017
Statistical information about access applications – Clause 7(d) and Schedule 2
Table A: Number of applications by type of applicant and outcome*
Access
granted
in full
Access
granted
in part
Access
refused
in full
Information
not held
Information
already
available
Refuse to
deal with
application
Refuse to
confirm/
deny
whether
information
is held
Application
withdrawn
Media
Members of
Parliament
Private sector
business
Not for profit
organisations or
community groups
1
Members of
the public
(application by legal
representative)
Members of the
public (other) 2 1
- More than one decision can be made in respect of a particular access application. If so, a recording must be made in relation
to each such decision. This also applies to Table B.
Table B: Number of applications by type of application and outcome
Access
granted
in full
Access
granted
in part
Access
refused
in full
Information
not held
Information
already
available
Refuse to
deal with
application
Refuse to
confirm/
deny
whether
information
is held
Application
withdrawn
Personal information
applications*
Access applications
(other than personal
information
applications)
Access applications
that are partly
personal information
applications and
partly other
2 1 - A personal information application is an access application for personal information (as defined in clause 4 of Schedule 4 to
the Act) about the applicant (the applicant being an individual).
Appendix E
Southern Cross University Annual Report 2017 123
Table C: Invalid applications
Reason for invalidity No of applications
Application does not comply with formal requirements (section 41 of the Act) 1
Application is for excluded information of the agency (section 43 of the Act)
Application contravenes restraint order (section 110 of the Act)
Total number of invalid applications received 1
Invalid applications that subsequently became valid applications 1*
This application became valid in 2018 so the details are not included in this Annual Report Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 to Act Number of times consideration used
Overriding secrecy laws
Cabinet information
Executive Council information
Contempt
Legal professional privilege 1
Excluded information
Documents affecting law enforcement and public safety
Transport safety
Adoption
Care and protection of children
Ministerial code of conduct
Aboriginal and environmental heritage - More than one public interest consideration may apply in relation to a particular access application and, if so, each such
consideration is to be recorded (but only once per application). This also applies in relation to Table E.
Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of Act
Number of occasions when application not successful
Responsible and effective government 2
Law enforcement and security 0
Individual rights, judicial processes and natural justice 2
Business interests of agencies and other persons 0
Environment, culture, economy and general matters 0
Secrecy provisions 0
Exempt documents under interstate Freedom of Information legislation 0
Appendix E
124 Southern Cross University Annual Report 2017
Table F: Timeliness
Number of applications
Decided within the statutory timeframe (20 days plus any extensions) 2
Decided after 35 days (by agreement with applicant)
Not decided within time (deemed refusal)
Total 2
Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome)
Decision varied Decision upheld Total
Internal review 1 1
Review by Information Commissioner* 0
Internal review following recommendation under section 93 of Act 0
Review by ADT 0
Total 1 1 - The Information Commissioner does not have the authority to vary decisions, but can make recommendations to the original
decision-maker. The data in this case indicates that a recommendation to vary or uphold the original decision has been made
by the Information Commissioner.
Table H: Applications for review under Part 5 of the Act (by type of applicant)
Number of applications for review
Applications by access applicants 1
Applications by persons to whom information the subject
of access application relates (see section 54 of the Act) 0
Table I: Applications transferred to other agencies under Division 2 of Part 4 of the Act (by type of transfer)
Number of applications transferred
Agency-initiated transfers 0
Applicant-initiated transfers 0
Appendix E
Southern Cross University Annual Report 2017 125
Financial Compliance
Investment Performance
The University held investment funds of $12 million as at 31 December 2017 which were made up of cash investments (maturing
30 days or less).
The average rate of return on term deposits is shown below in comparison to the TCorp Cash Hourglass Facility.
Cash Investments 2.31%
TCorp Hourglass Facility – Cash 2.28%
As investments are held as interest bearing deposits and on-call bank deposits the only impact of economic events has been
on the future earning potential due to lower interest rates, with no impact on the invested values.
Credit card certification
During the 2017 financial year, credit card use was in accordance with the University’s Corporate Credit Card and Procurement
policies. These policies are based on the requirements of the New South Wales Treasurer’s Directions.
Payment of Accounts
The University’s payment terms in respect of its creditors are 30 days. In 2017, 79 per cent of invoices were paid in accordance
with these terms. Interest of $263 was incurred during 2017.
Aged analysis at the end of each quarter
Quarter
Mar-17 Jun-17 Sep-17 Dec-17
$ $ $ $
Current 5,309,618 471,149 399,995 528,905
Between 30-60 days 572,968 38,077 36,795 146,851
Between 60-90 days 43,059 1,768 17,637 –
Over 90 days 22,981 693 196,006 –
Total 5,948,626 511,688 650,433 675,757
Accounts paid within each quarter
Measure Mar-17 Jun-17 Sep-17 Dec-17 Annual
Number of accounts paid 832 809 860 918 1,622
Number of invoices paid on time 3,141 3,302 3,638 3,837 13,918
Actual percentage of invoices paid
on time (based on number of invoices) 79% 77% 80% 80% 79%
Number of payments for interest
on overdue accounts 2 – – 1 3
Interest paid on overdue accounts 157 – – 106 263
Total number of invoices paid 3999 4269 4542 4810 17620
Land Disposal
The University did not dispose of any land holdings greater than $5,000,000 in 2017.
Overseas Travel
Appendix F
126 Southern Cross University Annual Report 2017
Appendix F
The University spent $1.47 million on a variety of overseas visits in 2017 ($1.29 million in 2016) for the purposes of promotion
and marketing of the University and specific programs, visits to overseas partners and the development of new partner
relationships, the attendance and presentation of research papers at international conferences, and research and teaching
at affiliated universities.
Consultants
The University engaged a range of consultants to provide recommendations or high level specialist or professional advice to
assist in decision making by management. Table 1 lists the consultancies that were engaged by the University and the fees
paid for their services during the year ended 31 December 2017. Table 2 lists those consultants costing greater than $50,000.
Table 1: Consultancies costing less than $50,000
Consultancy No.
Amount
$’000
Financial Services 1 9
IT 1 24
Planning & Environment 2 8
Architect & Engineering 2 30
Organisation Review 2 78
Total Consultancies costing less than $50,000 149
Table 2: Consultancies costing more than $50,000
Consultant Name Description
Amount
$’000
Philips KPA Strategic Analysis 75
Strategic Project Partners Feasibility Assessment 50
McCullough Robertson Lawyers Dispute Resolution 130
Total Consultancies costing more than $50,000 255
Southern Cross University Annual Report 2017 127
Southern Cross University ABN 41 995 651 524
Operations
Lismore Coffs Harbour Gold Coast
PO Box 157, Lismore NSW 2480 Australia Hogbin Drive, Coffs Harbour NSW 2450 Australia Locked Mail Bag 4, Coolangatta QLD 4225 Australia
T +61 2 6620 3000 F +61 2 6620 3700 T +61 2 6659 3777 T +61 7 5589 3000 F +61 7 5589 3700
CRICOS Provider 01241G
Digital Information Security Annual Attestation and
Evidence of Certification Statement for 2017
I, Allan Morris, Vice President, Operations, Southern Cross University am of the opinion
that Southern Cross University had an Information Security Management System in place
during the financial year being reported on that is consistent with the Core Requirements
set out in the NSW Government Digital Information Security Policy.
The controls in place to mitigate identified risks to the digital information and digital
information systems of Southern Cross University are adequate.
There is no agency under the control of Southern Cross University which is required to
develop an independent ISMS in accordance with the NSW Government Digital
Information Security Policy.
Allan Morris
Vice President, Operations
www.scu.edu.au
128 Southern Cross University Annual Report 2017
Appendix H
Budget and Actual Performance (Parent entity only)
Southern Cross University Actual Budget Budget
Statement of Comprehensive Income 2017 2017 2018
$’000 $’000 $’000
Income from continuing operations
Australian Government financial assistance
Australian Government grants 100,498 98,739 114,602
HELP – Australian Government payment 59,578 58,319 65,880
State and local Government financial assistance 1,628 7,018 3,329
HECS-HELP – Student payment 1,944 2,600 1,650
Fees and charges 52,894 56,960 61,894
Investment revenue 904 320 200
Royalties, trademarks and licences 852 600 900
Consultancy and contracts 6,526 5,000 6,750
Other revenue 10,594 7,731 11,751
Total revenue from continuing operations 235,418 237,287 266,956
Expenses from continuing operations
Employee related expenses 132,000 128,999 135,817
Depreciation and amortisation 13,183 14,018 14,676
Repairs and maintenance 3,311 3,299 3,500
Borrowing costs 583 1,076 1,180
Impairment of assets 1,238 500 1,032
Loss on disposal of assets 113 250 100
Loss on foreign exchange differences 108 – 91
Other expenses 88,648 92,921 101,544
Total expenses from continuing operations 239,184 241,063 257,940
Net result from continuing operations (3,766) (3,776) 9,016
Net result attributable to members of Southern Cross University (3,766) (3,776) 9,016
Southern Cross University
Annual Report 2017
www.scu.edu.au/publications
Production costs: $2,630
Locations
Lismore campus
Military Road
East Lismore NSW 2480
Coffs Harbour campus
Hogbin Drive
Coffs Harbour NSW 2450
Gold Coast campus
Southern Cross Drive
Bilinga QLD 4225
CRICOS Provider: 01241G
SCU6928
scu.edu.au