2017 Annual Report

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

  1. 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
  1. 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
  2. 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.
  3. 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.
  4. 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.
  5. 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
  6. 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
  7. 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
  1. 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:
  1. 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.
  2. 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

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