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CELEBRATING THE PACIFIC SHAPING ITS FUTURE 2018 Annual Report About the cover: Since opening its doors in 1968, USP’s focus has been about helping its students achieve their very best from the beginning to the end of their academic journeys.

Graduation is the pinnacle of university life, it is the culmination of a student’s efforts and hard work, and the cover emphasises this by featuring USP graduates from the 70’s next to graduates in 2018.
An international university serving 12 Pacific Island countries, Cook Islands, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu and Vanuatu for the last 50 years.
Table of Contents Table of Contents Mission & Purpose Vice-Chancellor and President’s Report 4 8 University Governance Structure 12 Organisational Structure 14 Our Students, Staff and Region (Key data) 19 Learning and Teaching Research and Internationalisation 42 50 Regional and Community Engagement 57 Governance, Management, Leadership and Continuous Improvement 64 Corporate Social Responsibility 72 Financial Statements 77 7 9 Pro-Chancellor’s Foreword University Governance 13 Principal Officers 15 5oth Anniversary Celebrations 28 Highlights of 2018 47 Student Support 54 Information and Communication Technologies 61 Our People 68 Quality Matters 75 Financial Overview 1977 - students sharing a proud moment after receiving a gold medal 2018 Annual Report Mission & Purpose OUR VISION Achieving excellence and innovation for the sustainable development of Pacific Island Countries.
OUR MISSION ` To provide Pacific people with a comprehensive tertiary relevant and range of excellent qualifications; ` To deliver the benefits of advanced research and its applications; ` To provide communities and countries in the Pacific region with relevant, cost effective and sustainable solutions, including entrepreneurship, to their main challenges; and ` To be an exemplar of tertiary education for the Pacific Islands in quality, governance, application of technology and collaboration with national tertiary institutions.
OUR VALUES ` Commitment and loyalty of staff and students to the institution and the region; 4 ` Highest standards of governance, leadership, academic freedom, integrity and transparency; ` Highest innovation, teamwork and flexibility in the pursuit of excellence; standards of creativity, ` Investments in staff, rewarding staff excellence, and empowerment of all The University of the South Pacific (USP) teams; ` Respect for distinctiveness and diversity in our Pacific heritage and its development, preservation and dissemination; ` Commitment integration; to regional cooperation and ` Positive and inclusive learning and living environments for student excellence; ` Support for flexible learners in all locations for success in work, life and citizenship; ` Protection and nurturing of the environment; ` Strong relationships to guide engagement with national governments, Pacific communities, and development partners; and 2018 Annual Report ` Demonstrate humility in performance, learn from others, value the trust given, and honour Pacific knowledge, contexts and aspirations.
Ultimately, both the Vision and Mission of the Strategic Plan will be realised through the contribution and attributes of USP’s graduates and staff.

These are the key drivers of the Strategic Plan (2013- 2018).
USP GRADUATE ATTRIBUTES USP’s academic programmes will promote development of the following attributes in all graduates: the Academic Excellence ` Extensive knowledge of a particular discipline or professional area, including relevant knowledge and skills; ` Capacity for independent critical thinking and self- directed, life-long learning; ` Advanced information technology knowledge and skills; and and communication ` Research skills.
Intellectual Curiosity and Integrity respect ` Deep truth for integrity, and intellectual and for the ethics of scholarship; ` Intellectual curiosity and creativity, openness to new ideas; ` Commitment to inter-disciplinary understanding and skills; and ` Respect for the principles, values and ethics of a chosen profession.
Capacity for Leadership and Working for Others ` Effective interpersonal communication skills; ` Leadership, organisational, teamwork and time management abilities; and ` Personal maturity and self-confidence.
Appreciation of the Cultures of the Pacific Islands ` Knowledge and appreciation of both the unity and diversity of Pacific Island cultures; ` Understanding of the diverse economies and environments of the Pacific Islands; and ` Commitment the maintenance strengthening of the societies of the Pacific.
to and Cross-cultural competencies ` An understanding and appreciation of social, cultural and linguistic diversity; 2018 - Gold Medalist and Most Outstanding PhD graduate in Management, Buriata Eti Tofinga receives her award from USP's 24th Chancellor, HE Major-General (Ret’d) Jioji Konusi Konrote, President of Fiji 5 5 2018 Annual Report ` Respect for human rights and dignity in a global ` A responsible attitude towards a healthy work-life context; balance; ` Commitment to accountability, ethical practice and social responsibility; and ` Demonstrated oral and written proficiency in the English language.
USP STAFF ATTRIBUTES The commitment of USP’s staff to the Vision, Mission, and Values of the University is embedded in the following attributes: ` Commitment and loyalty to the institution and its mission; ` A positive and proactive stance towards customer service; ` Respectful and ethical behaviour; and ` A collegial and cooperative attitude that contributes towards building a more cohesive university community.
FROM GOOD TO EXCELLENT In order to bring about a transformative change from good to excellent, the University will focus on the following: ` Honesty and integrity in personal and professional interactions in the work environment, including the highest standards of academic conduct; People Investment management.
in people, leadership and change ` A strong student-centred approach to learning and teaching; ` Highest standards of creativity, innovation, teamwork, cooperation and flexibility in the pursuit of excellence; ` Respect for the distinctiveness and diversity of our Pacific heritage and dedication towards its development, preservation and dissemination; Quality An enhanced quality of teaching, learning, research and services, as measured through international accreditation of programmes.
Regional Campuses A comprehensive and time-lined development of regional campuses with improved governance and management to bring about equitable and sustainable growth.

Postgraduate Studies Significantly enrolment, including PhD and Masters research, student success and supporting faculty.

postgraduate increased Research A greater impact of research, to place USP amongst the leaders in selected priority areas, including Pacific societies and cultures, oceans and marine resources.
Global Leadership ` The lead institution in Pacific Studies/Arts and Culture; and ` Amongst the leading universities in the world in • Information and Communications Technology (ICT) leveraged flexible learning and new pedagogies; and • Pacific Ocean and Marine Resources.

An Enterprising University A university that produces students with entrepreneurial skills, as job creators, not just job seekers.

Regional Exemplar In tertiary education and assisting national institutions where needed and appropriate.
6 Pro-Chancellor’s Foreword An organisation as large and complex as USP requires both a visionary Vice-Chancellor and President as its CEO and an exacting Council, with well-qualified and committed members, to provide oversight and enforce accountability.

The successes of the year 2018, and the past five decades of achievement, were made possible by that winning combination of strong leadership and robust governance.
As Chair of the Council, I am very proud that USP was able to achieve several substantial and concurrent strategic tasks, the most significant of which are highlighted here.

RECRUITMENT OF THE NEW VICE-CHANCELLOR AND PRESIDENT In Professor Pal Ahluwalia, Vice-Chancellor and President we have found remarkable ambition and a determination to develop USP, through innovation, strategic research, and smart partnerships, into a globally renowned university.
Professor Ahluwalia joined USP late in the year and spent two months getting to know the University to ensure a smooth transition.

I am certain that Professor Ahluwalia’s fresh ideas will support the achievement of our Vision of USP in 2019 and that we will all offer him our strong backing.

50th ANNIVERSARY CELEBRATIONS I was privileged to lead the Steering Committee for USP’s 50th Anniversary Celebrations.
We needed to carefully communicate the impacts of USP’s Pacific-focused higher education provision and the fact that USP is the premier example of Pacific regionalism, and I believe that we achieved this.

The 50th Anniversary Steering Committee, with the help of many staff members, alumni, Campus Directors, and the Senior Management Team, delivered fifty unforgettable events across all the campuses.
USP CONVENTION The USP Convention, an agreement between the University and its twelve Member Countries that is aimed at both legally embedding the University and supplementing the Royal Charter and Statutes that legally founded it, came into effect on 16 June.

This resulted from the deposit of the required minimum of 6 Instruments of Ratification with the Government of Fiji.

At the 86th Council Meeting in Nauru in May, Niue signed the Convention, becoming the final Member Country to do so.
Vanuatu ratified the Convention in 2018, joining the Cook Islands, Kiribati, Marshall Islands, Nauru, Samoa and Tuvalu.

It is hoped that the remaining Member Countries will ratify it in 2019.

APPROVAL OF TRIENNIAL FUNDING The University Grants Committee (UGC) considered the Triennium Submission for 2019-2021 in July and made a total of 14 commendations and 35 recommendations.
The UGC commended the University for reaching its 50th Anniversary and for being a successful model for regional cooperation and engagement, as well as for the achievement of the Strategic Plan’s objectives.

The UGC Report was noted by the Council, which also approved USP’s Annual Plan for 2019.

The Ministers responsible for Finance from our Member Countries endorsed the UGC’s recomendations out of session and in time for the Council meeting.
This was well coordinated by Fiji’s Minister for Economy, who is the Chair of the Ministers responsible for Finance of our Member Countries.

CORPORATE STRATEGY As at the end of 2018, 84% of the Strategic Plan’s objectives had been achieved.

This compared very well to levels of achievement at our comparator universities.

Some challenges, including Human Resources, remain, but all Priority Areas made good progress over the six- year Strategic Plan period.
Throughout the year, consultations were held and drafts of the Strategic Plan 2019-2024 were prepared.

The Council approved the new Strategic Plan at its November meeting.

However, as Professor Ahluwalia joined USP after that approval, the Council provided him the flexibility to suggest changes and include priorities that he considers necessary.

These will be considered by the November 2019 Council meeting.
CONCLUSION Strong governance structures at USP, including the robust USP Council that sits at its helm, have made it possible for our University to grow and thrive over the past five decades.

The University is fortunate to have a diverse Council comprising highly skilled and accomplished members.

Their knowledge, perspectives and guidance will be an invaluable resource to the new Vice-Chancellor and President as he takes up the leadership of our great University.
Winston Thompson Pro-Chancellor and Chair of Council 7 Vice-Chancellor and President’s Report I have known of USP’s accomplishments for many years; however, since taking the helm of USP, I have realised that, while USP’s achievements over the past five decades are deeply impressive, what is most exciting about this University is what is yet to come.

USP has an enormous amount of potential, and I am determined to see it join the ranks of the world’s most respected and admired universities.
The 50th Anniversary Year of 2018 generated a great deal of momentum.

The enduring legacy of 2018 is that the world now knows much more about USP’s impacts and its importance to the Pacific Islands.

From Member Countries and development partners to entrepreneurs and alumni, USP’s stakeholders publicly expressed their deep appreciation for the education that is offered by USP and the development work that it carries out.
There is tremendous public support for this University, and I will harness this goodwill to accelerate USP’s growth and development and establish it amongst the ranks of the world’s most innovative and sustainable universities.

I have many ideas about how best to build USP into an outstanding and sustainable institution and will be working with members of the Senior Management Team, staff, students and other stakeholders to implement these through revision to our Strategic Plan.
I will also be counting on the cooperation and enthusiasm of all staff at all campuses.

I will be pushing for inclusion global ranking as key to strengthening our brand and reputation, encouraging innovation to broaden our impacts and save on costs, and promoting research by staff and students as a means to attract corporate funds and bolster our reputation.
USP will also be working with industry players to secure placements, employment opportunities, sponsorship, and new facilities, and will launch new academic offerings, such as Allied Health programmes, to meet regional demands.

I look forward to working collaboratively to identify additional opportunities.

8 While the region is aware of USP’s quality, I will seek to raise international awareness of our academic and research quality to further enhance USP’s brand and additional global linkages.
The accreditation that USP received in July from the Western Association of Schools and Colleges Senior College and University Commission will open doors, but I see this as just a start.

I will ensure that we carefully accelerate our recruitment efforts to boost high profile staff numbers and recognise and reward our best teachers, thereby motivating others to teach more effectively.
We will use technology, innovative approaches, and clever strategic planning to develop our areas of comparative strength and mitigate challenges.

I look forward to the year 2019, with the plans we have for international ranking, Regional Campuses, new academic areas such as Allied Health, incentives for quality improvements, and new cooperation with employers and industry.
I hope that, as you read this Annual Report, you appreciate that the year 2018 very effectively showcased the products of USP’s 50 years of service to the region.
Professor Pal Ahluwalia Vice-Chancellor and President 2018 Annual Report University Governance The University of the South Pacific (USP) is the premier institution of higher learning for the Pacific, uniquely placed in a region of extraordinary physical, social and economic diversity to serve the region’s need for high quality tertiary education, research and policy development.

Established by Royal Charter in 1968, USP is one of only two regional universities of its type in the world.
It has 12 member countries: Cook Islands, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu and Vanuatu.

The University has campuses in all member countries.

The main campus, Laucala, is in Fiji.

The Alafua Campus in Samoa is where the School of Agriculture and Food Technology is situated, and the Emalus Campus in Vanuatu is the location for the School of Law.
The academic Schools, Institutes and Centres at the University are organised into 3 Faculties led by Deans.

These are the Faculty of Arts, Law and Education (FALE), the Faculty of Business and Economics (FBE) and the Faculty of Science, Technology and Environment (FSTE).

Each Faculty comprises a number of Schools which offer a wide range of academic programmes at the undergraduate and postgraduate levels.
In addition to the Faculties, the Pacific Technical and Further Education (Pacific TAFE) provides vocational and pathway education.

The University is committed to modern, cutting-edge pedagogies and flexible learning programmes and courses are delivered through flexible learning in a variety of modes and technologies throughout USP’s 14 campuses.

Advanced communication technologies through USPNet are used to reach flexible learning students across 33 million square kilometres of the Pacific Ocean.
UNIVERSITY ADMINISTRATION The Royal Charter and Statutes form the overriding governance instruments of the University.

It is governed by its own Council, which includes representatives of the member country governments, academic representatives, staff and student representatives, co-opted members with specialised skills, the Pacific Islands Forum Secretariat, Australia and New Zealand.
The Council and the Senate are served by a network of standing committees as well as Joint Committees of the Council and Senate in key areas.

The ceremonial head of the University is the Chancellor.

USP’s Chancellors are normally Heads of State of member countries.

The Pro-Chancellor is Chair of Council and the executive head of the University is the Vice-Chancellor and President.

THE COUNCIL The Council is the apex governing body of the University.
It exercises all powers conferred on the University by the Charter, subject to the powers, duties and functions conferred upon it by the Statutes.

The Council has general control over the conduct of the affairs of the University and sets its strategic direction and monitors its performance.
It has the custody of the Common Seal and is responsible for the management and administration of the revenue and property of the University as well as the responsibility to ensure that appropriate risk management strategies and mechanism for their implementation and reporting are in place.
The Council appoints the Officers of the University who are the: Chancellor, Pro-Chancellor and Chair of Council, Deputy Pro-Chancellor and Deputy Chair of Council, Visitor, External Auditor, Vice-Chancellor and President, Deputy Vice-Chancellors and Vice-Presidents.

It also assesses the performance of the Vice-Chancellor and President on an annual basis.

The Council can add to, amend or repeal the provisions of the Statutes by a Special Resolution as long as such changes are not repugnant to the Charter.
Any changes to the Charter need to go to the Privy Council for approval with final assent by Her Majesty.

The Council makes Ordinances to direct and regulate the University and its authorities and members.

The Council meets twice a year normally in May and November, with the Executive Committee meeting at least 4 times a year to facilitate the oversight and operations of the University.
The following are the major Committees of the Council and they are required to report to each meeting of the Council on their activities and work.

Executive Committee The Executive Committee (EC) exercises Council's powers delegated to it from time to time.
This includes the powers to appoint the University Visitor and the Auditor; to co-opt members to the Council; to determine fees of the University and allowances for Committee members (as recommended by the Finance and Investments Committee (FIC); to make financial commitment up to FJD 10 million1 (as recommended by FIC); to ensure a supportive working environment for staff; to determine the appointment procedures and salary structure for staff of the University; to grant special academic distinctions; and to exercise other delegations.
1 The approved funding level of FJD 10 million will be applied per case as long as this does not exceed the ceiling amount of FJD 20 million a year.

9 2018 Annual Report The Nominations Committee is a sub-committee of the EC and considers potential candidates and skills and maintains a register of persons who could be considered for vacancies in the co-opted member category.
The selection of candidates will depend on the skill set needed by Council at any particular time, taking into consideration the skills of current members.

Finance and Investments Committee Finance and Investments Committee (FIC) is responsible for overseeing and monitoring the University’s financial system and processes; approval of financial policies; review of all significant financial proposals for Council’s consideration; and for ensuring financial sustainability.
The Tender Board is a sub-committee of FIC and reports on all tenders awarded.

Audit and Risk Committee Audit and Risk Committee (ARC) oversees the risk management strategy for the University.

It monitors the performance and effectiveness of external and internal audits; ensures that the University’s processes and systems are audited for efficacy; and ensures that satisfactory arrangements are in place to promote economy, efficiency and effectiveness of the University.
Remuneration Committee The Remuneration Committee (RemCom) decides the terms and conditions of employment of the Vice- Chancellor and President and the Senior Management Team (SMT).

It is also responsible for deciding the pay, and the terms and conditions of academic and professional staff of USP.

Two (2) members of Council join the RemCom to form the Review Committee which is tasked with the Annual Performance of the Vice-Chancellor and President.
The RemCom is currently working on the new three year cycle 2019 – 2021 for SMT, academic and professional staff salaries to be approved by Council.

Search Committee The Search Committee oversees the appointment process for the Pro-Chancellor and Chair of Council.

This new committee was used for the first time in 2015 for the appointment of the current Pro-Chancellor and Chair of Council, Mr Winston Thompson and his re-appointment in 2018.
Legislation Taskforce The Legislation Taskforce was established to oversee the implementation of the USP Convention recognising USP in each member country.

The Convention supplements the Royal Charter which established USP in 1968.

This committee will be disestablished.


Joint Committees of Council and Senate These Joint Committees are established when required to oversee the positions appointed by Council such as the positions of Vice-Chancellor and President, the Deputy Vice-Chancellors and the Vice-Presidents.

The Joint Committee makes a recommendation to the Council which makes the final decision.
The Student Discipline Appeals Committee is a joint committee that considers appeals from students who have been found in breach of the University’s Ordinance and Regulation Governing Student Conduct.

Honorary Degrees Committee The Honorary Degrees Committee is a joint committee of Council and Senate and considers nominations for the award of honorary degrees.

Recommendations are taken to the EC for approval on behalf of Council.
University Trust Fund The University Trust Fund was set up to promote the establishment of a Trust Fund.

It will be guided by a Board of Trustees with the Vice-Chancellor and President as Chair, one member of Council and three independent members from outside the University with expertise in the area of investment, trust law and knowledge/experience of managing significant endowment funds.

Work is continuing on establishing the Board.


THE SENATE The Senate is the chief academic authority of the University, responsible for all academic matters, including quality.

It exercises the powers, duties and functions conferred by the Charter and Statutes to promote excellence in teaching, consultancy, research and other academic work of the University.
The Senate makes Regulations and approves policies and procedures to govern learning and teaching, and research at the University as well as all matters with respect to students, including academic and non-academic support services aimed at improving the overall student experience at USP.

The membership of the Senate is drawn from the Faculties, regional campuses and the Students’ Association, with a majority of members being elected.
The Senate meets at least 4 times a year, and has 11 standing committees to expedite its work and execute its assigned statutory responsibilities as well as a number of ad-hoc committees and working groups for specific tasks.

The Academic Programmes Committee (APC) and Teaching Quality Committee (TQC) deliberate on all academic matters before they are considered by the 10 2018 Annual Report Senate.
APC is concerned with all matters in respect of qualifications for all sub-degree, undergraduate and postgraduate courses and programmes of study while TQC is responsible for ensuring that the University has an established framework to reflect international best practice in teaching, learning and supervision in alignment with the University’s Strategic and Academic Plans.
The APC and TQC have a number of sub-committees dealing with specific tasks or specialised academic areas such as credit assessment, policy review, flexible learning, etc.

In terms of research, the University Research Committee oversees, promotes, coordinates and facilitates research and ensures that all research activities undertaken in the name of the University comply with its ethical principles.
The Communications, Information and Technology Committee (CITC) ensures the most effective use of IT Services in all forms (data, voice and video) to support the current and future activities of the University in the areas of teaching, research, management, consultancy and service to the communities that the University serves.
To facilitate a positive and supportive campus environment in the University, the Campus Life Committee advises on overall welfare and personal development and well-being of all students and staff, the development of policies on health and security and the promotion of a Safe, Clean and Green campus for all campuses.
It is also responsible for promoting cultural interaction and the development of a Pan-Pacific consciousness to ensure that the University produces graduates who can advocate and champion the idea of people who can live, work and prosper peacefully together and who can promote regional co-operation and integration.

The Student Discipline Committee is responsible for student discipline according to the Ordinance and Regulation Governing Student Conduct.
The Medals and Prizes Awards Committee oversees the award of medals and prizes to the University’s exceptional and high performing students.

Other committees are the Diversity, Equity and Inclusion Committee, the Library Advisory Committee and the Education for Sustainable Development Advisory Committee.
USP Council Members at the 87th Council Meeting in Suva, Fiji 11 University Governance Structure 2018 Annual Report COUNCIL EC SUB-COMMITTEE: Nominations Committee EXECUTIVE COMMITTEE (EC) FIC SUB-COMMITTEE: Tender Board (TB) TB SUB-COMMITTEES: Goods & Services Projects Other Campuses FINANCE & INVESTMENTS COMMITTEE (FIC) AUDIT & RISK COMMITTEE (ARC) RemCom SUB-COMMITTEE: Review Committee (VC&P Annual Performance) REMUNERATION COMMITTEE (RemCom) SENATE ACADEMIC PROGRAMMES COMMITTEE (APC) TEACHING QUALITY COMMITTEE (TQC) CAMPUS LIFE COMMITTEE (CLC) MEDALS & PRIZES COMMITTEE (MPC) APC SUB-COMMITTEES: Credit Assessment and Validation Committee University Scholarships Committee Academic Regulations and Policy Review Committee Flexible Learning Board Faculty Academic Standards and Quality Committee TQC SUB-COMMITTEES: E-learning, Innovation & Technical Enhancements Committee (ELITE) SEARCH COMMITTEE LEGISLATION TASKFORCE 50th ANNIVERSARY STEERING COMMITTEE (ASC) USP TRUST FUND JOINT APPOINTMENTS COMMITTEE FOR VC&P, DVCs & VPs* HONORARY DEGREES COMMITTEE* DISCIPLINE APPEALS COMMITTEE (DAC)* MANAGEMENT COMMITTEES: SENIOR MANAGEMENT TEAM (SMT) ** APPOINTMENTS COMMITTEE STAFF CONDUCT COMMITTEE STAFF REVIEW COMMITTEE REGIONAL CAMPUS ADVISORY COMMITTEE SPACE MANAGEMENT COMMITTEE POLICY WORKING GROUP STAFF POLICY COMMITTEE (SPC) DIVERSITY, EQUITY AND INCLUSION COMMITTEE (DEIC) COMMUNICATIONS & IT COMMITTEE (CITC) STUDENT DISCIPLINE COMMITTEE (SDC) EDUCATION FOR SUSTAINABLE DEVELOPMENT COMMITTEE (ESDC) LIBRARY ADVISORY COMMITTEE (LAC) SPC SUB- COMMITTEE: Staff Development Committee UNIVERSITY RESEARCH COMMITTEE (URC) URC SUB-COMMITTEE: Faculty Research Committee OPEN DAY COMMITTEE KEY 1.
2.

* Joint Committee of Council and Senate ** Senior Management Team (Advisory to Vice-Chancellor & President) 12 2018 Annual Report Principal Officers His Excellency Taneti Maamau BA S.Pac., PGD USYD, M.Ec.St.
UQ Chancellor Mr Winston Thompson Pro-Chancellor & Chair of Council Professor Rajesh Chandra BA GCEd MA S.Pac., PhD Br.Col Vice-Chancellor & President Professor Richard Coll BSc PhD Cant., ScEdD Curtin Deputy Vice-Chancellor (Learning, Teaching & Student Services) Professor Derrick Armstrong BA Hons (Philosophy) Lond., MA PhD Lanc.
Deputy Vice-Chancellor (Research, Innovation and International) Dr Giulio Masasso Tu’ikolongahau Pāunga BA Wesleyan, MA PhD Daito Bunka Vice-President (Regional Campuses and Estates & Infrastructure) Mr Kolinio Boila BA MBA S.Pac.
Executive Director Finance Dr Akanisi Kedrayate MEd Glas., PhD NE Dean of the Faculty of Arts, Law & Education Professor Arvind Patel BA S.Pac., MCom NSW, PhD Qld Acting Dean of the Faculty of Business & Economics Associate Professor Anjeela Jokhan BSc PGDip MSc S.Pac., PhD Brist.

Dean of the Faculty of Science, Technology & Environment Mr Hasmukh Lal BEd PGDip (Edu) MEd S.Pac.
Executive Director of Paciﬁc Technical and Further Education 13 2018 Annual Report Organisational Structure COUNCIL Pro-Chancellor Secretary to Council Council and Senate Secretariat Executive Officer VC&P Office Support Staff VICE-CHANCELLOR & PRESIDENT DEPUTY VICE- CHANCELLOR LEARNING, TEACHING & STUDENT SERVICES DEPUTY VICE- CHANCELLOR RESEARCH, INNOVATION & INTERNATIONAL VICE-PRESIDENT PLANNING, QUALITY & DIGITAL SERVICES VICE-PRESIDENT REGIONAL CAMPUSES & ESTATES & INFRASTRUCTURE • Undergraduate Affairs • Academic Programmes Committee (APC) • Graduate Affairs • Research • Innovation & Knowledge • Teaching Quality Committee Transfer/IP (TQC) • Student Administrative Services • Campus Life • Scholarships & Financial Assistance • Centre for Flexible Learning • Pacific Technical & Further Education (Pacific TAFE) • USP International • Pacific Centre for Environment & Sustainable Development • USP Press • Libraries Institutional Research & Data • Planning • Quality • • Digital Services • Japan-Pacific ICT Centre • USP Commercial • Regional Campuses: Cook Islands, Labasa, Lautoka, Kiribati, Marshall Islands, Nauru, Niue, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu & Vanuatu • Estates & Infrastructure • Security & Safety DEANS EXECUTIVE DIRECTOR FINANCE EXECUTIVE DIRECTOR HUMAN RESOURCES • Financial Planning & Budgets • Financial Accounting • Management Accounting • Financial Operations • Procurement • Payroll • Operations • Talent Aquisition Management • Employee Relations • Benefits • MIS/Automation • Associate Deans & Heads of School • Faculty Executive Committee • Faculty APC/TQC • Faculty Research Committee • Faculty Appointments Committee • Faculty Assessment Board • Centres and Institutes EXECUTIVE DIRECTOR STRATEGIC, PARTNERSHIPS, ADVANCEMENT & COMMUNICATIONS DIRECTOR ASSURANCE, COMPLIANCE & RISK MANAGEMENT • Audit • Insurance • Risk Management • Strategic Partnerships • Marketing • Communications • Alumni Relations • Central Web Portal • CROP Engagement • Australia Awards Pacific Scholarships • ADB
 Loans DEPUTY VICE-CHANCELLOR LEARNING, TEACHING & STUDENT SERVICES DEPUTY VICE-CHANCELLOR RESEARCH, INNOVATION & INTERNATIONAL VICE-PRESIDENT PLANNING, QUALITY & DIGITAL SERVICES VICE-PRESIDENT REGIONAL CAMPUSES AND ESTATES & INFRASTRUCTURE DEANS 14 2018 Annual Report Heritage and Arts Festival, Laucala Campus USP’s 50th Anniversary Celebrations Campus celebrations, Alafua Campus 15 The year 2018 marked USP’s 50th Anniversary, which was a significant milestone for the region.
Fifty events were held to celebrate the achievements of the University in its Member Countries; some were spectacular, while others were more serious and scholarly.

The entire USP community and all its stakeholders were involved in one way or the other and, by the end of 2018, the entire region had a better understanding of where USP came from, what it is today, and the scope and depth of what it has achieved for the Pacific Islands over the past five decades.
PREPARATIONS AND LEADERSHIP Planning for the 50th Anniversary celebrations began in 2016, with the conviction that such a special anniversary must be celebrated with distinction.

The 50th Anniversary Steering Committee (ASC), comprising representatives from Member Countries, key donors, partners, Council, Senate, staff and students, was formed, with the Pro- Chancellor as its Chair.
At the Council meeting in October 2017, the ASC presented an ambitious programme of 50 events, nearly one per week, spread throughout the year and across all campuses.

This range of events, all very different, were designed to resonate across USP’s broad family of stakeholders.

It was anticipated that there would be something for everyone, thus enabling all to engage in the 50th celebrations.
2018-THE GOLDEN JUBILEE YEAR The 50th Anniversary celebrations was launched on 5 February 2018 by the President of Fiji and 24th Chancellor of USP, His Excellency Major-General (Ret’d), Jioji Konousi Konrote.

This was 50 years to the day after classes began at the Laucala Campus in 1968.

The celebrations concluded on 13 December 2018 with a grand Closing Dinner at the Grand Pacific Hotel in Suva.

The closing was attended by over 350 alumni, staff, students and stakeholders.
Travelling Exhibition USP's 50th Anniversary Travelling Exhibition was part of the week-long “Moment to Shine” at the University’s Laucala Campus from 23 – 27 July 2018.

The exhibition, referred to as the USP50 was created as a celebratory, touring exhibition that is interactive, and of a quality that reflects the 50th Anniversary.

The Exhibition Curator, Ms Moana Davey, focused on the themes of Honour, Achieve and Aspire as a way to discuss USP’s history and to demonstrate the success of its alumni.
The three (3) significant aspects of the exhibition included, twelve- member countries supporting the development of USP to meet their tertiary education needs; the impact of USP within the region; and Pacific leadership.

Teaching and Research USP’s core functions of teaching and research were also 16 2018 Annual Report well represented throughout the 50th Anniversary Year.

The Research Office coordinated a range of research seminars and symposiums.
The Sports Research Symposium, held in June, was particularly successful as it opened the door for USP’s involvement in this new and rapidly growing industry in the Pacific.

The Research Week that was held in August highlighted the enormous contribution that USP makes in the areas of framing Public Policy and industry capacity building.

Most Popular Events Two other events, the royal visit and the sealing of a new time capsule, were incredibly successful and memorable.
The Royal Visit to the Laucala Campus of USP by His and Her Royal Highness, the Duke and Duchess of Sussex, Prince Harry and Meghan, took place in October.

Three hundred (300) students crammed the Japan – Pacific ICT Centre Theatre to hear them speak, while hundreds more lined the route they followed around the campus.
On the morning of 13 December, a time capsule containing iconic items from the 2018 Anniversary Year was sealed by the former Vice-Chancellor and President and the Pro-Chancellor and Chair of Council.

The capsule’s instructions state that it should be opened on the occasion of USP’s 75th Anniversary in 2043.

Spotlight on Pacific Cultures Throughout the 50th Anniversary programme, the role of USP as a promoter and preserver of Pacific cultures was highly evident.
There were many local indigenous performers and artisans on show during the “Moments to Shine”.

In addition, several significant performances and exhibitions were held at the Laucala Campus.

The support of the Oceania Centre for Arts, Culture and Pacific Studies was instrumental in the delivery of a very diverse cultural programme, which also incorporated challenging discussions regarding USP’s future role in terms of safeguarding and celebrating all things Pacific.
The five-day Heritage & Arts Festival, held in July, brought together a broad range of cultural themes and artists, from fashion designers to painters.

Contemporary and traditional designers, student performers, and local community artists gathered to show their work and exchange ideas.

This Festival culminated in the completion of the 50th Anniversary Mural, now proudly on permanent display in the Japan-Pacific ICT Centre at the Laucala Campus.

This is a lasting reminder of the 50th Anniversary Year.
Other permanent and highly visible reminders of USP’s 5 decades of service to the region include the Royal New Zealand Airforce Commemorative Monument, located at the new entrance to the Main Campus of USP, and the 50th Anniversary Book, which was authored by Dr Jacqui Leckie.

The celebrations of 2018 made it abundantly clear that USP has had a real and lasting impact on the Pacific Islands.
2018 Annual Report USP’s 50th Anniversary Celebrations Sports Symposium at Laucala Campus CFL Launches two books on Flexible Learning to commemorate USP’s 50th Anniversary USP unveils mural to mark 50th Anniversary Heritage and Arts Festival Travelling Exhibition “Our Sea of Islands” Seminar Opening of the “Talking to the Ancestors” Exhibition RNZAF Commemorative Monument 17 2018 Annual Report Moments to Shine Central to the year’s activities was the ‘Moments to Shine’ programme, a series of events that highlighted each campus, including its activities, its impacts, and its role in USP’s development over the past half century.
These events were special occasions for each campus.

As no other events were held at the same time, all eyes were therefore on the celebrating campus.

It would be an understatement to say that these 'Moments to Shine' were a success.

The enthusiasm and pride shown by current and former staff, students and hundreds of alumni was truly overwhelming.
Emalus Campus, Vanuatu Kiribati Campus Labasa Campus, Fiji Laucala Campus, Suva, Fiji Lautoka Campus, Fiji Nauru Campus Niue Campus Marshall Islands Campus Solomon Islands Campus Tonga Campus Tuvalu Campus Alafua Campus, Samoa Cook Islands Campus 18 2018 Annual Report 1979-Lautoka Campus Science Class Our Students, Staff and Region 2018-Laucala Campus Biology lab 19 2018 Annual Report STUDENTS HEADCOUNT Total Number of Students In Pre-degree Courses In Bachelor Courses In Postgraduate Courses In Other Courses 2017 29,918 9,121 16,721 2,933 2,865 2018 32,043 11,882 17,098 3,123 2,186 Note: The sum of students studying at different course levels will not be equal to the total number of students since a signiﬁcant number of students study between different course levels.
ENROLMENT BY CAMPUS Cook Islands Fiji - Labasa 2017 62.8 547.6 2018 57.5 670.2 Samoa - Alafua 2017 397.8 2018 323.4 Solomon Islands 2,201.8 2,396.5 Fiji - Laucala 11,349.9 12,008.5 Tokelau Fiji - Lautoka Kiribati Marshall Islands Nauru Niue 954.8 880.2 102.1 20.9 3.9 1,203.8 869.6 80.1 21.0 4.5 6.4% 0.7% 0.3% 3.4% 2.8% 0.3% 12.2% 1.6% 0.1% 0.4% 4.4% 6.1% Tonga Tuvalu Vanuatu - Emalus 61.1 546.6 125.9 1,236 49.2 555.4 137.2 1,246.1 TOTAL EFTS 18,491.4 19,623.0 Cook Islands Fiji - Labasa Fiji - Laucala Fiji - Lautoka Kiribati Marshall Islands Nauru Niue Samoa - Alafua Solomon Islands Tokelau Tonga Tuvalu Vanuatu - Emalus 61.2% Note: EFTS - Equivalent Full-time students is a unit of measure that deﬁnes the calculated (not actual) number of students equivalent to the number carrying the workload of a full-time student.
For example, an EFTS workload of 1.0/yr for a student means that the student is equvalent to a full-time student, while an EFTS of 0.5/yr means half the workload of a full-time student.
20 2018 Annual Report ENROLMENT BY REGIONAL NATIONALITY Cook Islands Fiji Kiribati 2017 55.6 2018 49.9 10,320.2 11,367.0 1,182.8 1,226.7 Marshall Islands 102.4 Nauru Niue Samoa 48.4 3.5 381 81.3 50.7 3.2 353.9 Solomon Islands 3,516.9 3,558.2 Tokelau Tonga Tuvalu Vanuatu 59.2 859.2 343.0 49.3 859.5 326.2 1,391.4 1,476.2 International 227.8 220.9 TOTAL EFTS 18,491.4 19,623.0 6.3% 1.1% 0.4% 0.3% 1.8% 18.1% 0.3% 4.4% 1.7% 7.5% 0.3% Samoa Solomon Islands Tokelau Tonga Tuvalu Vanuatu - Emalus 57.9% Cook Islands Fiji International Kiribati Marshall Islands Nauru Niue 56.49% Female Male ENROLMENT BY GENDER Female Male 2017 2018 10,228.4 11,085.5 8,263 8,537.5 TOTAL EFTS 18,491.4 19,623.0 43.51% ENROLMENT BY FULL-TIME/PART-TIME Full-Time Part-Time1 2017 2018 12,136.4 12,679.6 6,355 6,943.5 TOTAL EFTS 18,491.4 19,623.0 (1) A student is considered Part-Time if the annual EFTS workload for the student is less than 0.75/yr.
Where the student's annual EFTS workload is greater than or equal to 0.75, the student is considered Full- Time.
35.4% 21 64.6% Full-Time Part-Time 2018 Annual Report 38.42% ENROLMENT BY MODE OF STUDY 16.57% Face to Face Blended 22.12% Online 80% offering (no F2F) 2017 7,192 3,347.5 2,693.3 2018 7,538.3 4,492.3 3,251.7 22.89% Print 5,258.6 4,340.7 Face to Face Blended Online 80% offering (no F2F) Print TOTAL EFTS 18,491.4 19,623.0 ENROLMENT BY FACULTY Faculty of Arts, Law & Education Faculty of Business & Economics 2017 3,765.3 2018 4,138.2 5,372 5,730.1 21.1% 0.5% Faculty of Science, Technology & Environment 3,915 4,132.5 Pacific TAFE PaCE-SD 5,349.4 5,530.4 28.2% 89.7 91.8 29.2% 21.1% TOTAL EFTS 18,491.4 19,623.0 Faculty of Business & Economics Faculty of Arts, Law & Education Faculty of Science, Technology & Environment Pacific TAFE PaCE-SD 14.8% 7.7% ENROLMENT BY COURSE LEVEL 6.0% 1.5% 0.7% 0.7% 5.0% 18.0% English Level Preliminary Foundation Skills Based Certificate Degree 200 level Degree 300 level Postgraduate 400 level MBA course Professional Law 25.1% 20.4% English Language Preliminary Foundation Skills Based Certificate Degree 100 level Degree 200 level Degree 300 level Postgraduate 400 level Professional Law MBA course Research 2017 2.3 1,240.3 3,077.2 1,031.8 10.4 4,678.8 3,930.6 3,080.9 944.2 116.2 94.2 284.5 2018 2.4 1,171.6 2,907.0 1,520.4 - 4,924.9 4,005.8 3,536.3 978.1 142.7 139.5 294.3 Degree 100 level Research TOTAL EFTS 18,491.4 19623.0 22 2018 Annual Report ENROLMENT BY SCHOOLS, COLLEGES AND CENTRES College of Business,Tourism & Hospitality College of Arts & Humanities College of Science, Technology & Environment Graduate School of Business Oceania Centre forArts Culture & Pacific Studies Pacific Centre for Environment & Sustainable Development School of Geography, Earth Science & Environment School of Government, Development & International Affairs School of Language, Arts & Media School Agriculture & Food Technology School Engineering & Physics School of Accounting & Finance School of Biology & Chemical Sciences School of Economics School of Education School of Land Management & Development School of
 Law School of Marine Studies School of Management & Public Administration School of Social Sciences School of Tourism & Hospitality Management School of Computing, Information and Mathematical Sciences 1,657.2 1,793.2 TOTAL EFTS 18,491.4 19,623.0 2.3% 1.1% 8.6% 0.8% 5.2% 3.2% 6.6% 3.7% 9.1% 0.5% 2.6% 10.9% 5.9% Col of Business,Tourism & Hosp School of Economics College of Arts & Humanities School of Education College of Science, Tech & Env School of Land Mgment & Devel Graduate School of Business School of Law Ocenia Centre/Ats Cul.Pac stud School of Marine Studies Pacific Centre - Env & Develop Sch of Geo, Earth Sc & Envirmn Sch of Gov,Dev & Intertnl Affs Sch of Language Arts & Media School of Mngmnt & Public Admn School of Social Sciences School of Tourism & Hosp Mgmnt Sch.
Agriculture & Food Tech School.Comp, Info & Math Sci.
School Engineering & Physics School of Accounting & Finance School of Bio, Chemical Scienc 11.3% 2.2% 0.5% 3.3% 3.9% 4.3% 23 4.7% 1.6% 7.3% 0.7% ENROLMENT BY POSTGRADUATE COURSE LEVEL Postgraduate 400 level MBA course Professional Law 2017 944.3 94.2 116.2 Masters Mini Thesis (Part-Time) 18.5 Masters Mini Thesis (Full-Time) Masters Thesis (Part-Time) Masters Thesis (Full-Time) PHD Thesis (Part-Time) PHD Thesis (Full-Time) 8.5 82.3 91 41.8 42.5 2018 978.0 139.5 142.7 16.5 8.0 73.5 115.0 40.3 41.0 9.2% 2018 Annual Report 1.1% 0.5% 7.4% 4.7% 9.0% 2.6% 2.6% 62.9% Postgraduate 400 level Masters Thesis (Part-Time) MBA course Professional Law Masters Thesis (Full-Time) PHD Thesis (Part-Time) Masters Mini Thesis (Part-Time) PHD Thesis (Full-Time) TOTAL EFTS 1,439.3 1,554.5 Masters Mini Thesis (Full-Time) AWARDS BY REGIONAL NATIONALITY 3.4% 1.1% 0.6% 0.2% 1.8% Cook Islands Fiji Kiribati Marshall Islands Nauru Niue Samoa Solomon Islands Tokelau Tonga Tuvalu Vanuatu International 2017 19 2018 55 2,722 3,290 154 209 44 15 3 96 679 20 132 94 218 60 36 15 1 110 1,741 5 174 182 245 66 TOTAL AWARDS 4,256 6,129 Note: Includes College of Foundation Studies and Paciﬁc TAFE awards.
28.4% 0.1% 2.8% 3.0% 4.0% 0.9% Cook Islands Solomon Islands Fiji Kiribati Marshall Islands Nauru Niue Samoa Tokelau Tonga Tuvalu Vanuatu International 53.7% 24 2018 Annual Report 5.6% 0.2% 2.9% 10.2% 2.9% 15.2% 21.4% 9.8% 1.2% 1.5% 29.1% Foundation Pacific TAFE Postgraduate Certificate Programmes Postgraduate Diploma Programmes Certificate Programmes Professional Diploma Programmes Diploma Programmes Masters Programmes Degree Programmes Doctorate Programmes Graduate Certificate Programmes AWARDS BY PROGRAMME LEVEL Foundation Pacific TAFE Certificate Programmes Diploma Programmes 2017 570 676 62 100 2018 601 1,309 76 89 Degree Programmes 1,648 1,782 Graduate Certificate Programmes Post Graduate Certificate Programmes Post Graduate Diploma Programmes Professional Diploma Programmes Masters Programmes Doctorate Programmes 72 161 522 142 288 15 933 180 625 177 341 13 TOTAL AWARDS 4,256 6,126 ALL STAFF BREAKDOWN SENIOR STAFF BREAKDOWN STAFF CATEGORY 2017 2018 STAFF CATEGORY 2017 2018 Academic & Comparable Intermediate & Junior Hourly Paid TOTAL 626 639 249 649 642 240 1,514 1,531 Academic Comparable TOTAL 400 226 626 392 257 649 Note: Staff numbers include academic and support staff.
Staff data census date is as at 31 December 2017.
ACADEMIC STAFF BY RANKING STAFF CLASSIFICATION 2017 2018 Professor Associate Professor Senior Lecturer Senior Fellow Fellow Lecturer Librarian Subject Coordinator Programme Coordinator Curator Assistant Lecturer Tutors/TA's Other Academics 14 18 52 3 10 63 1 4 1 1 68 82 15 14 18 54 2 6 62 1 2 1 0 57 87 15 TOTAL ACADEMICS 332 319 25 PACIFIC TAFE ACADEMIC STAFF BY RANKING STAFF CLASSIFICATION 2018 Head of College Coordinator Facilitator Teaching Assistant Assistant Facilitator TOTAL ACADEMICS 3 17 50 1 0 71 Paciﬁc TAFE was established in 2016 and full academic stafﬁng recruited by 2017.
2018 Annual Report STAFF BY CAMPUS AND CATEGORY CAMPUS HOURLY PAID 2018 2017 I&J SENIOR STAFF TOTAL 2017 2018 2017 2018 2017 2018 (% OF TOTAL) 2018 2017 Alafua Cook Islands Emalus Kiribati Labasa Laucala 2 Lautoka Marshall Islands Nauru Niue Solomon Islands Tonga Tokelau Tuvalu TOTAL 2Laucala Fiji staff numbers include USP headquartered staff who support the rest of the University.
RESEARCH OUTPUT BY PUBLICATION TYPE Year Books Book Chapters Conference Proceedings Journal Articles Total Other Types Total Outputs Note: The main research outputs are books, book chapters, conference proceedings and journal articles.
These are the main areas listed in the 2013 Higher Education Research Data Collection (HERDC), Australian government.

Since 2018 marks the end of the 2013 - 2018 SP period, the data from 2012 onwards have been sourced from Scopus for comparability and to ensure that only ranked or recognized outputs are listed.

Other types of outputs include editorials, reviews, notes, short surveys, and articles in press.
26 2018 Annual Report RESEARCH OUTPUT BY FACULTY Year 2013 2014 2015 2016 2017 2018 FALE FBE FSTE PaCE-SD Other Total Note: Where several staff from different faculties share a publication, each faculty is recognized; for this reason, the Faculty Research Output is higher than the University Research Output.

The data are sourced from Scopus on 5 April 2019.


RESEARCH OUTPUT BY AREA - TOP 5 2013 2014 2015 2016 2017 2018 Soc.

Sci.

(44) Eng.

(44) Eng.

(38) Comp.

Sci.

(51) Soc.

Sci.

(61) Soc.

Sci.

(73) BM&A (32) Soc.

Sci.

(41) Comp.

Sci.

(36) Soc.

Sci.

(46) Eng.

(46) Eng.

(48) Comp.Sci.

(28) Comp.

Sci.

(40) Soc.

Sci.

(34) Env.

Sci.

(40) Comp.

Sci.

(37) Comp.

Sci.

(43) Eng.

(24) Agr.

& Bio.

Sci.

(30) Math (30) Agr.

& Bio.

Sci.

(31) Env.

Sci.

(36) Env.

Sci.

(42) Math (20) Env.


Sci.

(27) Agr.

& Bio.

Sci.

(30) Math (26) Agr.

& Bio.

Sci.

(27) Math (36) Note: These are shared publications between Faculties.

Sources: Scopus and USPERR Soc.

Sci.

= Social Science; BM&A = Business, Management & Accounting; Env.

Sci.

= Environment Science; Comp.

Sci.

= Computer Science; Eng.=Engineering; Math = Mathematics; Agr.

& Bio.

Sci.
& Bio.

Sci.

= Agriculture & Biological Science RESEARCH MASTERS & PhD AWARDS Masters (Full Thesis) PhD Total Research Masters & PhD 2013 2014 2015 2016 2017 2018 43 4 47 45 3 48 44 12 56 36 9 45 50 15 65 59 13 72 RESEARCH INCOME Year 2014 2015 2016 2017 2018 Total Research Income $5,517,025 $9,928,820 $10,576,323 $7,478,636 $12,194,443 TOTAL UNIVERSITY ALUMNI 45,674 Note: Alumni is deﬁned as a graduate with at least one Senate approved qualiﬁcation from the University.
For example a person with 3 qualiﬁcations (BSc, MSc, PhD) is counted as one Alumni.

Note: The deﬁnition of External Research Income is as per the 2013 HERDC.

27 Highlights of 2018 Innovation Showcased at YES launch The University showcased innovative projects at the launch of the Young Entrepreneurship Scheme (YES) on 11 January, that was officiated by Fiji's Prime Minister Hon Josaia Voreqe Bainimarama.
These projects included the Design and Evaluation of EMI Sensors for Corrosion Measurements in Concrete; Autonomous Motion Tracking Turrets with Laser Illuminators; the Braille Eye-Slate; and the Morris Hedstrom (MH) App.

USP Orientation Week 2018 The 2018 Orientation Week was officially launched by the Hon Jone Usamate, Fijian Minister for Employment, Productivity and Industrial Relations, at the Laucala Campus on 29 January.
The Orientation Week was designed to give all new students an opportunity to meet faculty members, attend orientation sessions, access academic guidance, register for courses, and get linked to a Buddy as part of the Campus Life First Year Experience Programme.

Natural Disaster Detection Improved at the Emalus Campus In January equipment was installed and staff were trained to operate a Very Low Frequency (VLF) signal receiver.
This equipment is used to detect Upper Atmospheric (Ionospheric) changes during earthquakes and tropical cyclones.

This was funded through a USP research project titled ‘Investigations of Sea State and Upper Atmosphere during Earthquakes (EQs) and Tropical Cyclones (TCs) in the South Pacific Region: Fiji, Vanuatu and Samoa’.
2018 Entrepreneurial Fair The Annual Entrepreneurial Fair was launched by Hon Faiyaz Siddiq Koya, Fiji’s Minister for Industry, Trade, Tourism, Land and Mineral Resources at the Laucala Campus on 19 February.

Chief Guest Mr Pic Picot, Managing Director of New Zealand-based Pic’s Peanut Butter, shared his personal experience as an entrepreneur and inspired attendees to strike out on their own and launch creative businesses.
28 Marine Symposium at USP The School of Marine Studies (SMS) hosted a symposium on Marine Science and Fisheries in International Cooperation Agency (JICA) on 29 January.

This commemorated the 20th Anniversary of the SMS, which was built by the Government of Japan.

collaboration with Japan the 50th Anniversary Kick-off of Celebrations HE Major General (Ret’d) Jioji Konusi Konrote, Chancellor of USP and President of the Republic of Fiji, launched the 50th Anniversary at the Laucala Campus on 5 February.
Hon Julie Bishop, Australia’s Foreign Minister, sent a congratulatory message by video recording.

The USP Time Capsule of 1997 was also opened by HE President Konrote and HE Mr John Feakes, Australian High Commissioner to Fiji.

Training for Unemployed Youth at the Lautoka Campus Forty-two unemployed youths were sponsored by OXFAM Fiji to complete an eight week Office Assistant Training Programme at the Lautoka Campus.
This Youth Employment Network (YEN) training was developed through a partnership between the Lautoka Campus and the Foundation for Rural Integrated Enterprise and Development (FRIEND).

Māori Language Flexi-School in the Cook Islands The Cook Islands Campus completed the first full Cook Islands Māori Language Flexi-School, taught by Dr. Akevai Nicholas from the Auckland University of Technology.
During the course, students were introduced to the idea of engaging with popular culture for language maintenance and revitalization.

29 First Untrained Teachers Cohort for the Tuvalu Campus The Tuvalu Campus’ first cohort for the Certificate in Teaching (Primary) began with 30 teachers.

The training will improve teachers’ pedagogy, literacy skills, assessment and curriculum development skills, standards, academic achievements, and practice.
The Tuvalu Government is sponsoring 2 teachers, from each of the 10 primary schools to pursue the course, over 2 years on a part-time basis.

Discussions on Teacher Training in the Solomon Islands Teaching and education issues confronting the Solomon Islands were the foci of discussions between the School of Education (SOEd) and the Hon John Dean Kuku, the Solomon Islands Minister for Education at the Laucala Campus on 16 February.
The SOEd has assisted the Solomon Islands with the training of unqualified teachers in Lata and Makira Provinces.

2018 USP Staff Forums USP staff were briefed by the SMT and invited to provide feedback during the biannual staff meetings, held on 14 March and 14 September.

Some of the discussions included the implementation of biometrics, the safeguarding of data, general operations of the Human Resources (HR) department and other staff related matters.
Open Education Week 2018 To create awareness of Open Educational (OE) practices at USP and to celebrate Open Education (CFL) Week, the Centre for Flexible Learning organised an OE Forum on 15 March.

Professor Richard Coll, Deputy Vice-Chancellor Learning, Teaching and Student Services discussed the transition from traditional print textbooks to digital learning spaces.
30 Mangrove Reforestation Project in Fiji A team from the Institute of Applied Sciences (IAS) continued the implementation of the Restoration of Ecosystem Services and Adaptation to Climate Change (RESCCUE) project with activities in 6 villages in Nakorotubu, Ra Province, Fiji from 5-10 February.

The activities included mangrove and coastal tree planting, as well as mapping existing work as part of the coastal community- based protected areas, mangrove protection and fisheries management initiatives.
2018 Student Forums USP held 2 student forums in 2018, on 14 March and 14 September, to update students on key developments at the University and to hear their concerns.

Students were briefed on the WASC Senior College and University Commission (WSCUC) Accreditation process, as well as the rationale behind USP’s involvement in it.

Issues raised by students included the General Service Fees, the Buddy System for students with disabilities, and on- campus accommodation.
Fifty-two Gold Medalists in 58 Categories A total of 52 students received gold medals in 58 categories during the annual Medals and Prizes Ceremony held on 20 March.

Of the 52 awardees, 27 were females.

Three students were awarded the Vice-Chancellor and President’s All-Rounder Award.

The awardees represented several Member Countries, including Fiji, Kiribati, Niue, and Republic of the Marshall Islands, Samoa, Tonga, and Vanuatu.
50th Anniversary Commemorative Monument Unveiled Hon Josaia Voreqe Bainimarama, Prime Minister of Fiji, and Hon Ron Mark, New Zealand’s Minister for Defence, unveiled the Commemorative Monument to the 5 Squadron of the Royal New Zealand Air Force (RNZAF) on 23 March in celebration of the 50th Anniversary of the University.

Around 150 veterans of the 5 Squadron, and current members of the RNZAF, travelled to Fiji for the occasion.
31 High Level Consultations with Australia High Level Consultations between USP and Australia’s Department of Foreign Affairs and Trade (DFAT) took place in Canberra on 19 March.

Discussions focused on the current USP-Australia Partnership and a new Partnership Agreement with the same timeframe as the new Strategic Plan.

A further round of consultations was held jointly with Australia and New Zealand on 13 November, at which the Australia-USP Enhancement of Quality Teacher Education Project was discussed.
Meeting of CROP ICT WG The Council of Regional Organisations of the Pacific (CROP) ICT Working Group (WG) met at the Laucala Campus on 28 March.

Professor Rajesh Chandra, USP's VC&P in his capacity as Chair of the CROP ICT WG, reiterated its importance under the Framework for Pacific Regionalism.

The meeting heard about progress made on the Pacific Regional ICT Strategic Action Plan (PRISAP) was shared at the meeting.
WiFi and Smart Classrooms for Tuvalu The Tuvalu Campus invited the community to help celebrate the launch of its WiFi and 2 Smart Classrooms on 25 April.

Chief Guest and Minister of Education of Tuvalu, Hon Mr Fauoa Maani stressed the importance of the Smart Classrooms, which have the latest audio-visual projection technology and high-end surround sound systems that allow students and other users to interact with online participants, using tools such as REACT, Zoom and Blue Button.
USP Victory in the EU - Fiji University Quiz Challenge 2018 USP won the European Union - Fiji University Quiz Challenge, held at the Laucala Campus on 7 May, for the second time.

The win was dedicated to the University as it celebrated its 50th Anniversary.

The team captained by Neekhil Prasad included Jale Samuwai, Raichal Prakash and Shameera Saheed.
32 High Level Consultations (HLC) with New Zealand High Level Consultations (HLC) with New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) were held on 16 April to address the University’s future partnership with New Zealand.

During the second round of consultations on 13 November, another joint initiative with New Zealand, the USP-New Zealand USPNet Enhancement Project, was discussed.
Donation of Braille Eye-Slates to the Samoa Blind Persons Association The University donated a Braille Eye-Slate, invented by USP Masters student Mr Nikhil Singh, to the President of the SBPA, Ms Mataafa Faatino Utumapu, in Samoa on 27 April.

The University encourages its staff and students to carry out research that will benefit the region, and this invention is a perfect example of this.

Braille Eye-slate is an educational device to teach basic Braille to visually impaired children.
It is small, affordable, and easy to use.

Assistance for the Tongan Health Ministry A project aimed at supporting the prevention of non- communicable diseases (NCDs) in Tonga was made possible through the Institute of Education’s (IOE) Waka Publications programme.
Waka Publications collaborated with the Canada Fund for Local Initiatives (CFLI), the Tonga Ministry of Health, and Tonga Ministry of Education & Training to develop and print 10 picture books with valuable messages for pre-primary aged children.

New USP Nauru Campus The new Campus in Nauru’s Yaren District, jointly funded by Australia and Nauru, was officially opened by HE David Adeang, the Acting President of Nauru on 21 May.
Hon Charmaine Scotty, Nauru's Minister for Education said the opening of the new Nauru Campus marks a new era in education for its people.

33 USP Council Meetings The 86th Council Meeting was held in Nauru from 22 – 23 May and the 87th Council Meeting was held in Suva on 1 – 2 November.
The opening of the new Nauru Campus, signing of the USP convention by Niue, and the debut of the 50th Anniversary song in the Nauruan language featured at the May Council Meeting, which was officially opened by HE David Adeang.

The November Council approved the Strategic Plan 2019-2024.

Council Members at both meetings participated in Strategic Plan Workshops.
Announcement of New Vice- Chancellor and President for USP Professor Pal Ahluwalia was formally named the new Vice-Chancellor and President (VC&P) of USP at the 86th Council Meeting in Nauru.

Professor Ahluwalia took up his new role as VC&P in January 2019.

Professor Ahluwalia was selected for this position after a rigorous and thorough selection process by the University’s Joint Committee of Council and Senate.
PIC Diplomats Briefing USP held its 2018 Briefing Session with Pacific Island Countries’ (PICs) diplomats (based in Fiji) on 18 June.

The meeting updated the Diplomatic Corps on the University’s recent achievements and key strategic engagements in the region; provided an update on the development of the new Strategic Plan 2019-2024; and discussed means of fostering better collaboration with Member Countries for the benefit of the region.
Conclusion of the LALI Project The findings of the Literacy and Leadership Initiative (LALI), overseen by USP’s Tonga-based Institute of Education (IOE), were presented to Hon Penisimani ‘Epenisa Fifita, Tongan Minister for Education.

The 4-year project was designed to improve student literacy and learning in primary schools and teacher practices in the classroom and school leadership, and build strong foundations at the Ministerial level.
34 Deep Sea Temperature Monitoring & Wave Forecasting The Pacific Centre for Sustainable and Environmental Development (PaCE-SD) played a vital role in a joint scientific effort to deploy a deep-water temperature-monitoring mooring and surface wave buoy off the Shangri-La Fijian Resort, Yanuca Island, Fiji on 2 May.

The buoy will provide real-time online information about wave conditions and deep-ocean temperatures.
Pacific Response to Climate Change USP contributed to the publication of the first Pacific Marine Climate Change Report Card which was launched on 8 June in Fiji and Samoa as part of World Oceans Day.

The Report’s key message was that Climate Change is increasingly putting the fundamental needs of ocean-dependent Pacific communities at risk.
Vanuatu In-Country Science Programme From Semester 2, students in Vanuatu were able to take select full science degree programmes at the Emalus Campus through the Vanuatu In- Country Science Programme (VISP).

The VISP is a cohort teaching model developed by FSTE.

The Government of Vanuatu has pledged to provide 80 scholarships for in-service science teachers across Vanuatu.

USP Convention Made Effective The USP Convention came into effect from 16 June.
The Fiji Government, as depository, informed USP Member Countries of this fact formally through HE Ratu Tui Cavuilati, Fiji’s Roving Ambassador to the Pacific.

In addition, Mr Winston Thompson, Pro- Chancellor and Chair of Council deposited the Instrument of Signature by Niue and original signed Instrument of Ratification from Vanuatu at the Fiji Ministry of Foreign Affairs in Suva on 4 July.
35 Pacific Update Conference 2018 The Fijian Minister for Waterways, Hon Mahendra Reddy, officially opened the 2018 Pacific Update Conference at USP on 5 July.

The two-day Pacific Update Conference was jointly hosted by the Australian National University’s Development Policy Centre and USP’s School of Economics.

It is the premier forum for the discussion of key public policy issues in the region.
Public Lecture by the Prime Minister of PNG Hon Peter O’Neill, Prime Minister of Papua New Guinea, delivered a public lecture on Pacific Regionalism on 9 July.

Hon.
Hon.

O’Neill mentioned that as global citizens, “our responsibility is to try and encourage trade and investment…..we must engage as a region and we must engage more meaningfully and globally as well.” American Accreditation for USP USP received an Initial Accreditation from the US- based Western Association of Schools and Colleges (WASC) Senior College and University Commission (WSCUC), valid for a term of 6 years, from July.
This accreditation is without conditions, and was awarded because WSCUC deemed USP to be in a cycle of continuous improvement and committed to quality across its operations.

This means that the institutional quality of the University is similar to that of accredited universities in the United States.

Commendation from the UGC for Significant Progress The University Grants Committee (UGC) held its Triennial Meeting 2019-2021 at the Laucala Campus from 16-19 July.
The UGC applauded the University for achieving a high number of internationally accredited and recognised programmes.

It also made several recommendations, including the need for a Mid-Term Review before the Regional Finance Minister’s Meeting in 2020.

36 Official USP Mobile App Launched USP launched its official Mobile App on 19 July.
Three other apps, including the USP Campus Map App, the Events App, and a Student Academic In Services launching these apps, Professor Chandra, USP's VC&P said that there is little doubt that the world is now a fully knowledge and innovation-based economy and society, and everyone is at the cusp of accelerating digital transformation.

(SAS) app were also launched.

2018 USP Open Day The 2018 Open Day was opened by Hon Josaia Voreqe Bainimarama, Fiji’s Prime Minister, at the Laucala Campus on 27 July.
In his keynote address, Hon Bainimarama said he was delighted to be able to speak directly to so many young Fijians.

Approximately 10,000 students were present at the Laucala Campus, 2000 at the Lautoka Campus, and 1000 in Labasa.

USP Research Week Opened By Samoan PM The Prime Minister of Samoa and Chair of the Pacific Islands Forum (PIF), Honourable Tuilaepa Lupesoliai Neioti Aiono Dr Sa’ilele Malielegaoi, officially opened the USP Research Week on 27 August.

Hon.
Hon.

Malielegaoi said that USP has contributed towards the shaping of the Framework for Pacific Regionalism.

Research Week is an opportunity for USP to highlight such achievements and show how the work of its scholars and researchers impact the region.

Installation of USP’s 25th Chancellor USP installed its 25th Chancellor, His Excellency Taneti Maamau, President of the Republic of Kiribati during the Kiribati Graduation Ceremony on 3 August.

Appointed President of Kiribati in March of 2016, H.E.
Maamau is a veteran civil servant who has served as Deputy Secretary and Permanent Secretary in the Ministry of Finance, the Public Service Office, the Ministry of Education and the Ministry of Commerce, Industry and Cooperatives.

He graduated from USP in 1982 with a BA in Administration and Sociology and went on to earn a Postgraduate Diploma in Business Administration from the University of Sydney and a Masters of Economic Studies from the University of Queensland.
37 Pacific Skills Partnership Initiated As Chair of the 49th Pacific Islands Forum, the Republic of Nauru initiated the Pacific Skills Partnership (PSP) in collaboration with USP and the Australia Pacific Training Coalition (APTC).

The PSP reaffirms the vital link between skills and sustainable development in the region.

Bioprospecting Samples Database Created by IAS USP’s Institute of Applied Science created the South Pacific Region’s first Bioprospecting Samples Database (BSD).
This was launched at The Pearl Resort in Pacific Harbour, Fiji on 20 July.

The BSD was funded by the Global Environment Facility (GEF) - Nagoya Protocol Access and Benefit Sharing (ABS) project.

Through the project, IAS staff trained community members in taxonomy and gained complementary traditional knowledge from community members.
Royal Visit to the Laucala Campus USP hosted Their Royal Highnesses, the Duke and Duchess of Sussex, Prince Harry and Meghan on 24 October as part of their official visit to Fiji.

The Duke launched 4 new Queen Elizabeth scholarships for students from the Caribbean and Pacific regions to support more young people studying Climate Change.

Her Royal Highness announced 2 new grants that will be awarded to USP and the Fiji National University female members of staff.
for workshops that empower 50th Anniversary Book Professor Rajesh Chandra, USP's VC&P revealed a commemorative book, published to mark the University’s 50th Anniversary on 29 October.

“A University for the Pacific, 50 Years of USP” chronicles the development of this unique institution that has contributed extensively to its Member Countries.

38 Engagement with Development Partners A forum to facilitate discussions between USP and its Development Partners was held on 19 September.
The meeting provided a space in which USP could receive comments on the draft USP Strategic Plan (2019-2024) and discuss ways in which Development Partners could assist.

USP provided information on projects that require financial or technical support.

Training for Regional Fisheries Officers USP’s Pacific TAFE and the Pacific Islands Forum Fisheries Agency (FFA) began to collaborate in 2016 to develop certified oceanic fisheries training programmes for the region.
The Certificate IV in Fisheries Enforcement and Compliance, offered by USP and certified by FFA, is comprised of 8 months of online distance learning and a week of face-to- face competency-based assessment.

One hundred eight fisheries officers have graduated, and the 2018 cohort had 42 more students.
New Vernacular Programme at the Tonga Campus The Tonga Campus and Institute of Education created history with the launch of the Bachelor of Arts in Pacific Vernacular Language (Tongan and Niuafo’ou) on 14 November.

The new programme, which will begin in Semester 1, 2019 with the course TG111 titled 'Tongan and Niuafo’ou 1', is aimed at skilled reporters/journalists, Members of Parliament, and professionals who mainly use the Tongan and Niuafo’ou languages.
teachers, news USP and Griffith University to Establish the Pacific Water Centre USP and Australia’s Griffith University signed a Memorandum of Understanding (MoU) on 11 December to establish the Pacific Water Centre (PWC) at USP.

The Centre’s vision is that water in Pacific Island Countries should be managed by locally-trained skilled leaders and workforces to enable sustainable development, including the achievement of the water-related Sustainable Development Goals.
39 Five Honorary Doctorates Awarded USP recognised 5 outstanding individuals with the Honorary Degree of Doctor of USP.

The Recipients for the Honorary Degree of Doctor of Laws (LLD) were HE Sir Frank Kabui, Governor-General of Solomon Islands and former Chancellor of USP, Hon Henry Puna, Prime Minister of Cook Islands and former Chancellor of USP, and Ms Mere Pulea, Legal Consultant (Ret’d).
The recipients for the Honorary Degree of Doctor of Letters (D.Litt) were Hon Fiame Naomi Mata’afa, Deputy Prime Minister of Samoa and former Pro-Chancellor of USP and Mr Ikbal Jannif, CEO of Caines Jannif Limited, Chancellor of the Fiji National University and former Pro- Chancellor of USP.
Sports Symposium Opened By the President of Fiji HE Major General (Ret’d) Jioji Konusi Konrote, President of Fiji and the 24th Chancellor of USP, officially opened the Inaugural Pacific Research Symposium on Sport and Sustainable Development at the Laucala Campus on 20 June.

The two-day Symposium was designed to shape the future of the research agenda underpinning sport, sustainable development and public policy.

A new Pacific Regional Sports Research Scholarship programme was also announced.
Books on Flexible Learning Commemorate USP’s 50th Anniversary The Centre for Flexible Learning (CFL) presented 2 new books on Flexible Learning at the Laucala Campus on 30 August.

The books titled, 'Fifty years of Flexible Learning at The University of the South Pacific' and 'Flexible Learning Footprints' were launched by Mr Winston Thompson, Pro-Chancellor and Chair of USP Council.

In addition to the 2 50th Anniversary commemorative books, CFL launched 8 Open Textbooks at the event.
Pacific Islands Transport Forum Hon Inia Seruiratu, Fiji’s Minister for Agriculture, Rural and Maritime Development and National Disaster Management and Meteorological Services, officially opened the Pacific Islands Transport Forum and Expo, held from 8 – 10 November.
Hosted by Fiji and the Republic of Marshall Islands (RMI), together with USP, the event sought to prioritise transport decarbonisation; showcased the latest science and technology available; set clear pathways for national action plans under a coordinated regional transition programme; and brought together stakeholders.
40 Research, Innovation USP Heritage and Arts Festival Professor Derrick Armstrong, Deputy Vice- Chancellor, and International, officially opened the “We are the Ocean” Heritage and Arts Festival on 18 July.

Organised by the University’s Oceania Centre for Arts, Culture and Pacific Studies (OCACPS), the week-long festival brought together living culture, heritage and the arts in a fun and interactive way that engaged the community.

The festival also promoted the Oceania Centre’s academic offerings.
Debate held at the Niue Campus The Niue Campus facilitated a healthy debate session as part of its “Moment to Shine” to mark the University’s 50th Anniversary celebrations.

Mr Hima Douglas moderated the topic: Development in the South Pacific has significantly improved in the last 50 years because of USP’s contribution, which was debated by USP Alumni, including the Director of Education and the Head of Police, representing both the affirmative and negative sides.
50th Anniversary Mural Unveiled USP officially unveiled the 50th Anniversary Mural outside the Japan-Pacific ICT Centre at the Laucala Campus on 13 December.

The mural, which was inspired by indigenous and local ideas and values that connect people to the land, sky, and sea, was painted by a team of artists, namely Anare Somumu, Lingikoni Vaka’uta, Josaia McNamara, Jeke Lagi and William Camakau, who were commissioned by the 50th Anniversary Committee.
The mural titled 'Celebrating the Pacific' reflects the 50th Anniversary theme: 'Celebrating the Pacific, Shaping its Future'.

Sealing of the 50th Anniversary Time Capsule USP sealed the 50th Anniversary Time Capsule at the Laucala Campus on 13 December.

The time capsule is kept in a glass box in the Vice-Chancellor’s foyer with a list of the 50 events that commemorated the 50th Anniversary Year.
41 2018 Annual Report 1978 - Traditional Learning and Teaching Learning and Teaching 2018 - Students make use of smart classrooms 42 2018 Annual Report USP’s provision of higher education suits the Pacific context, making our graduates marketable and readily employable both in the region and overseas.

The University enables the success and achievement of Pacific learners by recognising the value that diverse backgrounds and experiences bring to the classroom.
Its instructors use innovative teaching methods and tools to deliver accessible and customisable programmes (in terms of mode, location, and time basis), and unique and challenging practical learning experiences.

The University has always believed, and students and employers have always trusted, that it offers education of the same or better quality to its competitors overseas.
This claim is evidenced by the results of ongoing institutional quality audits, external programme reviews and accreditations, and the recognition of national higher education commissions and authorities.

A major highlight of 2018 was the grant of Initial Accreditation, valid for a period of 6 years, from the esteemed WASC Senior College and University Commission (WSCUC), which is based in the United States.

The official statement viewed at https://www.wscuc.org/institutions/university-south- pacific.
to transform The University also completed the Strategic Plan’s initiatives designed the pedagogy and curriculum, ensure programme relevance and responsiveness to regional needs, improve teaching quality, and provide assurance of consistent and well- structured academic programmes.

These successes that USP’s academic programmes provide ensure excellent value to both students and stakeholders.
PEDAGOGY AND CURRICULUM REVIEW AND DEVELOPMENT The University is committed to an ongoing process of improvement and development in learning and teaching.

The Office of the Deputy Vice-Chancellor (DVC) Learning, Teaching & Student Services developed the Curriculum Review and Development Plan, which serves as a framework for both curriculum review and the enhancement of undergraduate degree programmes.
The implementation of this Plan also provides a mechanism for the University to address the requirements of institutional accreditation by WSCUC and other academic programme review and accreditation processes.

The Curriculum Review and Development Plan commenced implementation in early 2018, primarily within the Faculty of Arts, Law and Education (FALE).
The long-term goal is implementation in all 3 Faculties, and some work did begin in Faculty of Science, Technology and Environment (FSTE) and Faculty of Business and Economics (FBE).

The Office of the DVC Learning and Teaching led 43 curriculum review and development work while simultaneously building the capacity of academic staff members in this area, instilling in them a sense of ownership in ongoing improvements.
In order to promote academic staff ownership of their curricula, the Office of the DVC started to use a collaborative model of staff development in which review and development work is undertaken in partnership with discipline teams.
Since the formal inception of this process, considerable progress has been made with the review and enhancement of the curriculum and assessment of the following programmes: BEd (Early Childhood Education & Care); BEd (Primary); BEd (Secondary); BEd (Special and Inclusive Education); BA (Technical and Vocational Education and Training); LLB; BA (Literature); BA (Journalism); BA (History); BA (Psychology); BA (Social Work); BCom (Land Management).

This work will continue in other academic areas in 2019.
TEACHING QUALITY Learning and Teaching Forum The annual Learning and Teaching Forum was held at the Laucala Campus on 30 August with the theme “Assessment in the Flexible Learning Space”.

The keynote speaker was Professor Geoffery Crisp who spoke on the skills and capabilities that our students will need as they live and work in a world dominated by technology, complexity and increasing uncertainty.
He advocated for teaching and assessment to better develop students’ capacity to meaningfully interact in complex environments with many stakeholders.

The Faculty Teaching Excellence Awards and the Vice- Chancellor’s Award for Excellence in Teaching are also presented annually at the Learning and Teaching Forum.

The FALE Teaching Excellence Prize was awarded to Mr. Pradeep Tiwari.
Professor Anand Chand was awarded the Faculty Teaching Excellence Prize for FBE, and Dr Subhash Appana received the Teaching Excellence Prize for Pacific Technical and Further Education (Pacific TAFE).

Professor Sushil Kumar was awarded the FSTE Teaching Excellence Prize as well as the 2018 Vice-Chancellor’s Prize for Excellence in Teaching.

The Learning and Teaching Forum was much more than a single day event.
It set the groundwork for discussions and inspired staff to change their approach to assessment.

It also encouraged teaching staff, through the examples of the prize-winners, to challenge themselves to deliver their programmes more effectively.

Forums such as this one, which bring in outside experts to offer insightful commentary on key areas of work, are one indication of USP’s commitment to continuous improvement.
New Initiatives in Technology-Enhanced Learning and Teaching textbooks were launched by CFL at the 50th Anniversary celebrations on 30 August at the Laucala Campus.

The Centre for Flexible Learning (CFL) continues to use ICT to support and promote flexible learning and teaching and Open Education at the University.
It undertook 7 new initiatives in 2018, namely 1) Digitization of Archival Material to promote digital learning at USP, 2) Evaluate the Blended Learning Experience, 3) Effective use and integration of technologies in support of FL at USP, 4) Exploring Online E-Exam Proctoring, 5) Learning Analytics, 6) Researching innovations in technology use in learning and teaching at USP, and 7) OER course conversion.
It also worked to integrate OER (Open Educational Resources) in Learning and Teaching to increase student success through zero textbook costs and faster and cheaper course development.

Eight open Customised Learning and Teaching launched Pacific TAFE inaugural Certificate of its Competence programme at the Workforce Development Training Unit (WDTU) in Suva on 14 May.
The Certificate of Competence programme is a new customised approach by the institution to align business results with an individual’s capacity and capability to deliver those results.

MAJOR FOCUS IN 2019 The major focus in 2019 will be the commencement of the initiatives of the new Strategic Plan.

2018 GRADUATION AND OTHER AWARD CEREMONIES No.


of Graduates Gender Other Notable Achievements 2018 1,774 1,680 2017 Female: 58% Undergraduate: 51% Postgraduate: 16% 19% Paciﬁc TAFE: 143 Masters graduates 5 PhD graduates Male: 42% 28 Nationalities Female: 38% Female: 11% Paciﬁc TAFE: 100% 9 Nationalities This was a special graduation ceremony wherein 18 Samoan Parliamentarians graduated with the Certiﬁcate in Law (Civil).
2018 48 2018 18 Male: 62% Male: 89% 44 LAUCALA CAMPUS 22 & 23 March NAURU CAMPUS 25 May ALAFUA CAMPUS Samoan Parliament Cohort 14 June No.
of Graduates Gender Other Notable Achievements 2018 99 Female: 66% Undergraduate: 46% Postgraduate: 24% 28% Paciﬁc TAFE: 1 Masters graduates KIRIBATI CAMPUS 3 August Male: 34% 2 Nationalities 2018 1,321 1,183 Female: 64% Undergraduate: 42% Postgraduate: 20% 29% Paciﬁc TAFE: 118 Masters graduates 6 PhD graduates LAUCALA CAMPUS 20 & 21 September 2017 Male: 36% 18 Nationalities 2018 1,211 Female: 34% Undergraduate: 11% Postgraduate: 6% 8% Paciﬁc TAFE: 5 Masters graduates SOLOMON Is CAMPUS 25 & 28 September Male: 66% 10 Nationalities MARSHALL Is CAMPUS 2 October 2017 46 43 Female: 53% Undergraduate: 21% Postgraduate: 16% 35% Paciﬁc TAFE: 43 10 Masters graduates 2018 Male: 47% 4 Nationalities 2018 94 Female: 72% Undergraduate: 57% Postgraduate: 4% 29% Paciﬁc TAFE: 8 Masters graduates TONGA CAMPUS 19 October 2017 Male: 28% 3 Nationalities 45 COOK Is CAMPUS 24 October No.
of Graduates Gender Other Notable Achievements 2018 40 2018 126 Female: 78% Undergraduate: 25% Postgraduate: 55% 7.5% Paciﬁc TAFE: 2 Masters graduates Male: 22% 5 Nationalities Female: 54% Undergraduate: 17% Postgraduate: 11% 69% Paciﬁc TAFE: 2 Masters graduates TUVALU CAMPUS 21 November Male: 46% 6 Nationalities EMALUS CAMPUS 30 November 2018 240 95 193 2017 2017 141 Female: 55% Undergraduate: 61% Postgraduate: 14% 18% Paciﬁc TAFE: 13 Masters graduates Male: 45% 10 Nationalities Female: 54% Undergraduate: 69% Postgraduate: 6% 13% Paciﬁc TAFE: 4 Masters graduates ALAFUA CAMPUS 7 December 2018 Male: 46% 8 Nationalities OTHER AWARD CEREMONIES 2017 519 256 Female:62% 10 Nationalities FOUNDATION AWARD CEREMONY 7 December 2018 Male: 38% 46 2018 Annual Report 1992 - Staff provide academic advice Student Support 2018 - USP continues to improve its service delivery 47 2018 Annual Report STUDENT LEARNING SUPPORT The University requires 60% attendance at tutorials, as attendance has been found to be crucial to student success.
Institutional data, including pass rates, first year retention rates and cohort completion rates, indicates that student success at USP is comparable to the levels achieved at comparator universities.

The University is, nonetheless, committed to improving on its performance, as all USP students deserve to, and should, achieve their academic goals.
Educational Performance Indicators (EPI’s) have shown that the principal factor in student academic success is not mode of study or location, but rather full-time or part- time status.

Therefore, the progress of part-time students is monitored very closely, and there are plans to improve this in the future.

The progress of all first-year students is monitored by the University’s First Year Experience (FYE) Coordinators.
The University also appoints over 200 Student Mentors annually to assist new and continuing students.

Following the establishment of its Student Learning Support (SLS) centre in Tuvalu, there are now SLS Specialists at 9 Regional Campuses.

Another programme, known as the Peer Assisted Study Sessions (PASS) Programme, continued in 2018.

PASS sees top students from previous semesters facilitate scheduled tutoring hours each week for current students.
The Peer Assistants submit lesson plans and activity sheets throughout the semester to ensure consistency of support.

PACIFIC CONSCIOUSNESS AND COHESIVENESS The University’s identity as a Pacific regional institution, comprised of 12 Member Countries with many cultures and languages, is extremely important, and all staff and students are expected to understand and embrace this.
The University takes pride in knowing that, through its efforts, all students leave the University with a heightened awareness of what it means to be a Pacific Islander and understand the major issues and challenges unique to the region.

Students are not expected to just assimilate this knowledge; the University puts on a wide variety of events, activities, workshops, and seminars that share, teach, and celebrate Pacific Island cultures.
USP is very proud to be home to the Pasifika Voices choir and the Oceania Dance Group.

USP LIBRARY The Library works strategically and refers to international best pratice for quality assurance.
The Library’s main achievements in 2018 were (i) the opening of new libraries at the Nauru and Kiribati campuses; (ii) renovation of is two-fold; The purpose of student support at USP the University provides facilities, services, and opportunities to ensure that students are happy and satisfied with their living and learning experience, and it also offers various types of academic support to boost achievement and ensure timely graduation.
All Faculties take different approaches to academic assistance and carefully monitor the progress of their students to ensure that all keep focused on their goals.

There are some programmes, especially those relating to disability access, that are common to all Faculties and Campuses.

Campus Life outside of the classroom is more student-led, with clubs and activities promoting themselves to prospective participants.
ACHIEVEMENT OF SP 2013-2018 OBJECTIVES During 2018, USP achieved its Student Support Objectives 5-8, namely: i.e.

Improve the Equity of Student Services; Create a Student Community with High Levels of Awareness of Health and Safety Issues and Respect for Others; Improve Attendance, Retention and Pass Rates, and Promote Pacific Consciousness and Cohesiveness.

The achievement of these objectives was measured by the completion of their strategic initiatives.
EQUITY OF STUDENT SERVICES In accordance with the USP Disability Policy, new campuses were equipped with accessible facilities.

The University also increased its Student Bursary Scheme to FJD 1 million, with all eligible applicants approved.

Furthermore, FJD 150,000 was allocated for scholarships for students with disabilities.

USP also began to modify its 2nd Hall and B Block to make those more accessible and developed plans to install a lift in the FALE Building.
HEALTHY AND RESPECTFUL STUDENT COMMUNITY Life in the Halls of Residence promotes a sense of community, but, for the students who live elsewhere, USP organised a wide variety of healthy and safe social activities to bring them together.

Consistent with its aim to promote good health and prevent NCDs, USP held Sexual Health Awareness Workshops, Blood Drives, and organised exercise activities.
Sporting events grew in scope and popularity, indicating that more and more students appreciate the value of being active and being part of a team.

During 2018, students also enjoyed a schedule of regular inter-cultural activities including Pacific Market Days and the highly successful Sunday Markets.

Those events helped students to respect and appreciate other cultures, mainly through the universal language of food.
48 (ii) Make a concerted effort to collaborate with comparator institutions libraries and other external organisations; (iii) Continue to develop Campus Libraries to achieve equitable access to personnel and services; (iv) Grow information literacy by engaging with a minimum of 50% of 200-300 level undergraduates; (v) Strengthen engagement with faculties and researchers and promote greater involvement of library professionals in faculty based research; and (vi) Enhance the quality of all its services from a perspective of valuing the user experience.
the Level A at Laucala into a Learning Commons; (iii) the embedding of the Information Research Skills (IRS) programme as a mandatory requirement for postgraduate students; (iv) being given the University’ lead role in Research Skills Development awareness and training; (v) expanding the print and e-resources collections within a static budget; (vi) digitisation of Pacific resources for enhanced access; and (vii) the implementation of a marketing policy and branding of the Library assisted by active participation in the University’s 50th anniversary celebrations.
MAJOR FOCUS IN 2019 The major focus in 2019 will be the improvement of the quality and equity of Student Services across all campuses.

USP will create a student community with high levels of empowerment and awareness of health and safety issues and respect for others.
To play its part in student success the Library will: (i) Design a new Library Strategic Plan that reflects innovative practices and includes new technologies; An interpreter from the Disability Resource Centre assists a deaf student with her studies 49 2018 Annual Report 1979 - Graduate technicians in Alafua Campus research lab Research and Internationalisation 2018 - Research has become an integral part of USP 50 2018 Annual Report Research at the University is thriving; in fact, USP registered 233 internationally recognised publications indexed by Scopus in 2018.
This is the highest-ever number, surpassing the previous record of 214, set in 2017.

Journal articles accounted for almost 55% of the publications in 2018.

More research in areas requested by Member Countries.

The level of internationalisation, as measured by student and staff travel, incoming and outgoing guest scholars and researchers, and international collaborations has also increased, strengthening and enlivening USP’s academic community.
The year 2018 saw achievements in both research and internationalisation feature in the 50th Anniversary celebrations.

Those occasions were a valuable opportunity to promote USP’s research and international activities through exhibitions, forums, seminars and displays at the campuses.

AWARDS USP’s staff were rewarded by both the University and by external bodies in 2018 for their outstanding efforts in research.
The 7th Research Excellence and Innovation Awards Evening, held on 16 November, honoured staff and students for their research in 2017.

More than 100 academic staff were recognised for publications in highly-ranked journals or inventions that received patent certification.

A total of 70 A/A* publications and 112 B-ranked publications were acknowledged, as were 3 patents in the area of Engineering and IT.
Several researchers were recognised by external bodies, including Emeritus Professor Subramaniam Sotheeswaran who received a Lifetime Research Award from the Asian Symposium for Medicinal Plants, Spices and other Natural Products (ASOMPS XVI) in December; Professor Elisabeth Holland who was elected a fellow of the American Association for the Advancement of Sciences (AAAS), also in December; and Associate Professor Gurmeet Singh, who received the ‘Excellent Researcher Award’ by the Research Excellence and Academic Awards (REAA) 2018.
IMPACTS OF USP’S RESEARCH Several outstanding research projects conducted in 2018 had wide-ranging impacts, including: 1.

Research on Microplastic Pollution: Associate Professor Dr Marta Ferreira presented the first results on microplastic pollution in Fiji’s coastal environment at the International Conference on Plastics in the Marine Environment, held in Singapore in December.

Project received 2.
Project received 2.

Sustainable Transport in the Pacific Island Countries: The Sustainable Transport an investment of around USD 2.5m from the China Navigation Company in November.

The funds were invested to support the building of a low-cost, low-carbon, and low-tech freighter as a possible alternative sea transport option for communities in Oceania.

3.
3.

Local Mitigation of Ocean Acidification Project: The Institute of Applied Sciences (IAS) was awarded a Blue Carbon Habitat Restoration contract on 1 October to pilot the use of Blue Carbon for the local mitigation of Ocean Acidification (OA) in Fiji.

4.

Bioprospecting Samples Database Project: The region’s first Bioprospecting Samples Database (BSD) was created by IAS and launched on 20 July.

5.
5.

LALI Project: The findings of a Literacy and Leadership Initiative (LALI), overseen by the Tonga Campus-based Institute of Education (IOE), were presented to Hon.

Penisimani ‘Epenisa Fifita, Tonga’s Minister for Education, on 14 June.

6.

Deep Sea Temperature and Monitoring: The Pacific Centre for Environment and Sustainable Development (PaCE-SD) played a vital role in a historic joint effort to deploy a deep-water temperature-monitoring mooring and surface wave buoy off Yanuca Island, Fiji on 2 May.
7.

Sports Development in Pacific Island Countries: The project 'Maximizing the Contribution of Sport to the Economic and Social Development of Pacific Island Countries: The case of Fiji (Ministry of Youth and Sports) and Samoa (Ministry of Education, Sports and Culture), contributed to boosting the status of sport as an industry and valuable export.

USP and the Oceania National Olympic Committee (ONOC) announced a jointly funded Pacific Regional Sports Research Scholarship programme.
The new scholarships are designed to build the research capacity at USP in line with the University’s strategic research themes, strengthen the evidence base on the contribution of sport to sustainable development, and inform policy development and regional investments in and through sports in Pacific Island Countries and Territories.

REGIONAL AND COLLABORATION INTERNATIONAL RESEARCH There were several successfully forged international research collaborations in 2018, including: 51 1.
WeRobotics and the South Pacific Flying Labs: On 27 November, WeRobotics and USP agreed to build inclusive participation and local expertise in the application of emerging technologies, such as Unmanned Aerial Vehicles (drones), to bridge the digital divide.

2.
2.

Innovation Hub Project: The United Nations Development Programme (UNDP) and USP agreed on 11 November to develop an Innovation Hub, which will be a co-working space or shared work environment where people from diverse industries, countries, and academic backgrounds will meet, work, network, share ideas and collaborate on projects.

3.
3.

Emergency Preparedness in the Pacific: The United Nations World Food Programme (WFP) and USP signed an agreement on 9 November to strengthen collaboration, improve training, and provide equipment for emergency preparedness activities in Fiji and the Pacific region.

4.
4.

Pacific-European Union Marine Partnership: On 5 September, the Forum Fisheries Agency (FFA), the Pacific Community (SPC), the Secretariat of the Pacific Regional Environment Programme (SPREP) and USP agreed with the EU to promote sustainable management and sound ocean governance in the Pacific region.

5.

Ridge to Reef Project: IAS signed a multi- partnership agreement worth USD 1.5m on 17 October to improve climate resilience and sustainable livelihoods in Fiji.
Funded by the Global Environment Facility (GEF), the three-year Ridge to Reef (R2R) project is facilitated by UNDP and the Fiji Ministry of Waterways and Environment.

6.

Pacific Islands Universities Research Network (PIURN): PIURN, an initiative in which USP has been deeply involved, held its 3rd Biannual conference at the University of French Polynesia, Tahiti, from 8–10 October.
Four areas were agreed for future collaboration, namely, (a) Food Security, Nutrition, Health & Non-Communicable Diseases; (b) Climate Change & Biodiversity, including Land Degradation; (c) Capacity Building, Data & Statistics; and (d) Social Development, Gender Equality & Education.

INTERNATIONALISATION implements International develops and USP the University’s international recruitment strategy, which is designed to address the KPIs outlined in the Strategic Plan.
The year 2018 unfortunately saw a decrease in international enrolments, with 345 headcounts (222.41 EFTS) compared to 2017’s total of 387 (222.41 EFTS) students, and the 2016 figure of 356 students (221.27 EFTS).

While the decrease for 2018 was disappointing, the enrolments only declined by 42 students, and the 5 year trend shows an increase in international student numbers; current numbers compare favourably to the 304 enrolments in 2013.
Student recruitment is only one part of the process of campus internationalisation.

The University also must provide excellent support to international students for the duration of their enrolment and include international in alumni activities after their departure.

students Accordingly, there were a number of activities, including community service, village and beach excursions, and focus groups staged in 2018 to ensure that international students thoroughly enjoy their time at USP.
USP Student Exchange In line with the Strategic Plan, USP International also worked to increase the number of opportunities for USP students to study overseas.

A total of 17 undergraduate students participated in the USP Exchange Programme in 2018.

Partial scholarships helped defray costs for students placed at partner institutions in Australia, New Zealand, Canada and Japan.
USP was represented at the International Education Association of Australia (IEAA) events held in Australia and New Zealand in March and April.

Current students on exchange promoted USP at fairs at our partner universities in Canada in September and October.

There was also an Exchange Fair staged at USP on 18 October that attracted more than 80 students.
European Union Commonwealth Universities Exchange Opportunities (EU) and Association of funded (ACU) - Under the Erasmus Mundus programme, USP sent 1 PhD student each to the University of the West Indies and the National University of Samoa (NUS) for ten months.

A USP alumnus was awarded a full Masters scholarship to NUS, and 1 member of staff attended a one-month programme at UWI.
As a member of the European Union’s Erasmus + programme, USP partners with the Universidad de Valladolid (UVA), University of Timisoara, University of Tartu (UT), University of Ljubljana (UL) and the University of Göttingen (UG).

USP hosted two staff in 2018 from UT.

The visit created a platform for USP and UT to start a conversation on possible collaboration in Tourism Studies, which would be funded by the Erasmus + KA 107 programme.
USP also welcomed the return of 7 students who had gone overseas as part of the mobility agreements.

USP selected a student from Nigeria to pursue a Masters of Science in Chemistry under the Association of Commonwealth Universities scholarship at USP.

52 Short Courses Long Island University (LiU) visited USP from 10 – 14 September with a group of 19 students and one member of staff as part of a short course.Their visit included a series of lectures and a field visit.
International worked with Korea International USP Cooperation Agency (KOICA) to place their volunteers in the Intensive English Short Course programme, which was held over 6 weeks in June and July.

JENESYS 2018 The Japan-East Asia Network of Exchange for Students and Youths (JENESYS), is a cultural exchange initiative funded by the Government of Japan that enables Pacific Island students to travel to Japan for 9 days to explore various themes.
The fully-funded study tours see participants engage with local government, organisations, educational institutions and communities.

Upon their return, participants are expected to promote Japan and its culture in their communities and to take part in the activities of the Japan-Pacific Alumni Association (JPAA).

As the JENESYS programme has been very successful over several years, the Government of Japan invited USP to coordinate the JENESYS 2018 project.
This was launched on 21 August at the Japan-Pacific ICT Multi-Purpose Theatre.

The project received over 2,000 applications in total, of which 224 were successful.

Participants, representing 14 PICs, Australia, and New Zealand, traveled to Japan between November 2018 and January 2019 in ten different groups, 9 of which were supervised by USP staff.
MAJOR FOCUS IN 2019 In 2019, the University will fund research that is aligned to the new Strategic Research Themes synthesised from the UN Sustainable Development Goals (SDGs) and underpinned by Innovation, Empowerment & Sustainability: 1.

Economic Growth, and Public & Private Sector Development (SDGs 1, 8, 9, and 11); 2.

Oceans, Land & Climate (SDGs 6, 13, 14 and 15); 3.

Education, Culture & Health (SDGs 2, 3 and 4); and 4.

Governance, Justice and Equality (SDGs 5, 10, 16 and 17).
An area of great concern to Member Countries is the prevalence of NCD risk factors among Pacific Islanders.

The University will address this concern by funding research in the broad area of Health Science.

In 2019, the University will also focus on meeting the requirements for ranking by the Times Higher Education.
The league table of the THE World University Rankings is a global university performance table to judge research- intensive universities across all of their core missions: teaching, research, knowledge transfer and international outlook.

USP will continue to promote study abroad as an excellent opportunity for students and alumni, whatever their academic specialisation or previous travel experience.
increase The University also plans to international student numbers in 2019 by recruiting reputable agents in Australia, signing additional agreements with partner institutions to boost student exchange, and engaging in smarter online marketing in target markets.

The international student experience at USP will be enhanced through the establishment of an International Student Advisory Committee to oversee, coordinate and monitor the student experience.
International Students during their Orientation Week tour 53 2018 Annual Report 1979 - Extension services facilities satellite sessions Information and Communication Technologies 2018 - USPNet at Laucala Campus 54 2018 Annual Report Information and Communications Technology (ICT) plays a vital role in all aspects of USP’s operations, and the quality of its provision, from infrastructure hardware to software applications and connectivity, influences the achievement of USP’s students, staff, and researchers.
USP intends for ICT to enhance the learning of its students, the work of its researchers, and the productivity of its staff.

As a leader in ICT for education, USP aims to provide the most modern, convenient, and accessible ICT tools and services, an aim that is consistent with USP’s ethos of continuous improvement and recognises USP’s core functions that depend on ICT for success.
Information Technology Services The (ITS) section leads USP’s activities in the area of ICT and aims to ensure that it can be used to improve the accessibility of USP’s high-quality, relevant education and to support greater collaboration between researchers and scientists throughout USP’s campuses in the Pacific Region and globally.

cost-effectiveness, the University.
Key accomplishments ITS has recorded numerous successes in 2018 and will use those achievements to inspire and kick-start further connectivity, improvements in for other sections user satisfaction, and reporting of included infrastructure upgrades, analysis and refinement of new technologies that improve the learning experience, and the implementation of key recommendations from the Network Startup Resource Centre’s (NSRC) review of USP’s infrastructure and ICT services security.
Those successes positively impacted students’ satisfaction; 85% of students surveyed were satisfied with the standard of ICT services at USP.

USP CYBERSECURITY REVIEW USP engaged the services of the NRSC team to review its ICT infrastructure and services security and make recommendations to strengthen its performance and resilience.
The NSRC team comprised ICT experts from leading global firms like Apple, that provide training and expert advice for Higher Education ICT network organisations around the world, reported in April.
The report included recommendations for; (i) Connecting USP to the Fiji Internet Exchange Point (IXP) - this was completed in Oct 2018; (ii) Consider a Commodity Internet Service Termination in Fiji (FINTEL); (iii) Consider implementation of an Acceptable Use Policy (AUP) as a means of controlling usage of network resources and eliminating by-pass networks - coupled with strong firewall controls and well-planned scalable WAN capacity plans.
ITS successfully implemented 95% of the Report’s recommendations by the end of December.

The remaining 5% will be implemented with the completion of the USPNet Upgrade Project.

55 USPNet Infrastructure Upgrade The New Zealand Government-funded USPNet Upgrade Project, was one of the major activities of the year.
This project, designed to replace the USPNet Satellite network at Laucala and the regional campuses, has two components, namely; (i) replacement of the end- of-life satellite antennae hardware and related equipment; and (ii) redesign of the network layer to optimise connectivity over the renewed satellite infrastructure.

The first regional campus to be completed was Nauru in May.

The project will be entirely completed by the end of 2019.
REGIONAL ICT INFRASTRUCTURE AND CONNECTIVITY Given the demand for more online Learning and Teaching modalities, the University has notably progressed in its endeavour to improve campus connectivity in the region.

Discussions and negotiations with Member Countries led to achievements in Samoa, Tonga, and Vanuatu.

Tui Samoa Cable The Tui Samoa Cable was commissioned in January.
USP then initiated discussions with available ISP providers at the Alafua Campus and, after a period of evaluation and negotiations, Blue Sky Ltd successfully installed a fibre-optic link for 20Mbps Internet Capacity in July.

This resulted in increased capacity and stable service that has since improved connectivity to online resources for Alafua Campus users.
There are ongoing discussions with the Government of Samoa on its strategy relating to ICT for Education and the possibility of a direct 100Mbps connection to the Laucala Campus using the Government of Samoa’s network.

Tonga Cable In mid-2018 the Government of Tonga granted the Tonga Campus a doubling of its fibre link capacity on the Tonga Cable system (from 100 Mbps to 200 Mbps).

ITS closely follows the Tongan Government’s plans to extend fibre link connectivity to USP Campuses on Vava’u and Ha’apai.
Emalus Campus Connectivity The Government of Vanuatu granted USP additional bandwidth, increasing it from 50Mbps to 100Mbps.

This has resulted in a much better user experience for staff and students at the Emalus Campus.

LECTURE CAPTURE The recording, online storage and publication of lectures has had a real impact on the student learning experience as students are able to access most lectures on-demand, can clarify any points they might have missed, and can revise and review at any time.
The Lecture Capture Team monitored and analysed the recording process, as well as user behaviour, and found that most students are adaptable to the new system.

Matomo, which is Open Source Software, is used to track specific aspects of student usage of the recordings, and tracks information such as time spent, playback speed, and the most commonly replayed sections of video.
To get more reliable data that will inform improvements to the Lecture Capture programme, the Team will also focus on enhancing the analytics software.

MAJOR FOCUS FOR 2019 ITS will consolidate its recent successes to secure improved connectivity for regional campuses.

The USPNet Infrastructure Upgrade project will be completed in 2019.
USP will continue to broker discussions with regional ICT industry players for new technology initiatives, such as submarine fibre cable or high throughput satellite (HTS) technologies, to progressively enhance connectivity to more regional campuses.

ITS will also look to improve the performance of the data centres that host USP’s institutional server systems.
Technologies the Hyper-Converged like Infrastructure (HCI) systems will be deployed to improve the performance, reliability and resiliency of USP’s ICT services, while improving the cost-efficiency and minimising the carbon footprint of ICT operations.

This will improve the provision of ICT resources to support regional teaching and learning plans while facilitating industry-standard facilitate global research partnerships.
infrastructure services to In seeking to further capitalise on the developments in Business Intelligence and Business Process Automation technologies, ITS will improve its institutional reporting capability by enhancing the quality, relevance and volume of reports generated using its enterprise reporting tools in Cognos, Ellician Banner Operational Data Store (ODS) and Banner Enterprise Data Warehouse (EDW).
Due to the Pacific Region’s susceptibility to natural disasters and informed by the valuable lessons learnt from the 2018 communications building fire, IT will further consolidate its ICT services and infrastructure with industry-standard Backup and Disaster Resiliency Technologies implemented over USP’s unique regional network.

ITS will also deploy Network Operations Centre that will provide around-the-clock monitoring using industry standard technologies and processes.
ITS will review service contracts for key services such as USP’s Internet Gateway (currently provisioned through AARNet) and USP’s satellite bandwidth services (currently provided by SES New Skies and Intelsat) to ensure quality and cost-effectiveness.

With each passing year, the role of ICT in supporting USP’s critical institutional functions in all key business areas becomes more important.
ITS will continue to operate in a very future-focused manner, forecasting ICT needs and preparing well in advance to meet them so as to provide all of the USP community with the highest standards of ICT service.

An ITS Technician inspects one of the USP servers 56 2018 Annual Report 1987 - Nauru Campus in its humble beginning Regional and Community Engagement 2018 - The new Nauru Campus 57 the The development of regional campuses is one of the pillars upon which the Strategic Plan 2013-2018 was built.
By the end of 2018, the regional campuses, in terms of their decision-making role, facilities, programmes, support services, and enrolments, had changed significantly as compared to 2013.

While at the start of Strategic Plan implementation, Laucala was very much the centre of the University, after six years the regional campuses are much more integrated, are just as important as Laucala, and are crucial to the continued success of USP as a regional institution.
The outcomes of the regional campus development projects have surpassed the Strategic Plan’s Key Performance Indicator targets.

The University continued to work towards achieving excellence in regional and international engagement through its participation in Pacific Islands Forum (PIF) and Ministerial meetings and Council of Regional Organisations of the Pacific (CROP) Executives and related Working Group (WG) meetings.
It effectively participated in the development and finalisation of 11th European Development Fund (EDF 11) under the Pacific Regional Indicative Programme (PRIP) and improved and continued linkages with donors, development partners and external stakeholders of USP.

Partnership and relationships with various member country governments and other stakeholders are at an all-time high.

2018 Annual Report new Centre will ensure local supervision and support for Masters by Research and PhD students.
Vanuatu (Emalus) The major achievement of the year was the start of the Vanuatu In-Country Science Programme (VISP), which began in Semester 2 with a cohort of 110 students.

On 19 June, the launch of the highly-anticipated programme was attended by the Prime Minister of Vanuatu, Honourable Charlot Salwai, Minister of Education and Training, Honourable Jean Pierre Nirua, the Speaker of Parliament, Honourable Esmon Saimon, and the Pro-Chancellor and Chair of the USP Council, Mr Winston Thompson.
Kiribati Dr Takuia Uakeia was appointed Campus Director and Lecturer for the Kiribati Campus in July.

Additional classrooms were created at the ground floor space of the new campus building to meet growing demand.

Backup generators were also installed.

Fiji (Lautoka and Labasa Campuses) Enrolments at both the Lautoka and Labasa Campuses increased again in 2018, and Pacific TAFE expanded its operations with new centres in Namaka, Nadi and Lautoka.
There is also a new space in Labasa that was secured to cater for increasing enrolments.

HIGHLIGHTS FROM THE REGIONAL CAMPUSES Marshall Islands Samoa (Alafua) The laboratory facilities of the School of Agriculture and Food Technology (SAFT) were successfully upgraded.

Classrooms were also equipped for the Lecture Capture System.
At the ‘Moment to Shine’ in June, part of the 50th Anniversary celebrations, there was a special ceremony held for the 18 Samoan Parliamentarians, including MPs, a Minister, and Assistant Ministers, who graduated with Certificate in Law (Civil) programme.

The Deputy Prime Minister of Samoa and former Pro-Chancellor of USP from 2006-2012, Honourable Fiame Naomi Mata’afa, was conferred a Honourary Degree of Doctor of Literature.
A book titled '50 Years of Teaching Research and Training in Agriculture at the USP Alafua Campus' was presented to the Vice-Chancellor and President, Professor Rajesh Chandra and the Pro Chancellor during their visit in July.

Cook Islands The Government of the Cook Islands and the University agreed to jointly fund a Centre for Research and Policy Studies at the Cook Islands Campus.

Funding for this was identified in the Government’s 2018/2019 budget.
The A major national education project, funded by the Asian Development Bank (ADB) and the Republic of Marshall Islands (RMI) Government, saw the beginning of USP’s contribution in 2018.

USP, as a participant in the 'Improving the Quality of Basic Education (IQBE)' project, will provide standards for principals/head teachers and training that leads to a Graduate Certificate in School Leadership.

The RMI Campus will also offer a Certificate in Educational Assessment.
The USP Council approved the conversion of the Micronesian Centre for Sustainable Transportation to a Joint Centre, or partnership between USP and the Government of the RMI.

One of the highlights of the RMI Campus’ ‘Moment to Shine’ was the performance of the Pasifika Voices Choir, in the presence of the RMI President, Dr Hilda C Heine, Cabinet Ministers, Senators, and students.

The new RMI Campus, completed in 2017, was a wonderful setting for the festivities.
Nauru The year 2018 marked both USP’s 50th Anniversary year and the 50th Anniversary of Nauru’s independence.

The 58 two auspicious occasions were celebrated at the USP Council’s 86th Meeting in May, which was held at the new Nauru Campus that coincided with its official opening.

The Australian Government provided most of the funds for the new Campus, which was supplemented by a contribution from the Government of Nauru.
USP provided the ICT equipment, including a new satellite dish funded by the Government of New Zealand and commissioned by the Honourable Prime Minister of New Zealand on Campus in September.

The Campus’ Community Library, a notable feature of the new campus, is accessible to the public.

Niue Mr Seone Lolesio was appointed to the position of Campus Director, a post that had been substantively vacant for six years following the retirement of the previous position holder.
Mr Lolesio, a former Assistant Lecturer in Faculty of Business and Economics (FBE) and current PhD candidate, has the teaching experience to assist Niue students who have face-to-face tutorials at the campus in the areas of accounting and economics, as well as in Pacific TAFE.

The University notably offered some scholarships for the first cohort of law students at Niue Campus.

Solomon Islands Professor Prem Misir was appointed to the post of Pro Vice-Chancellor at the Solomon Islands Campus.
While the new Campus at KGVI is yet to be developed, temporary arrangements were made to meet increasing demand.

The Government extended its offer of teaching and learning space at the Solomon Mutual Insurance (SMI) Complex in Honiara.

Most of the Pacific TAFE programmes were delivered from SMI.

The new MBA cohort of more than 70 students was also hosted at SMI as well as at the SINU Panatina offices.
The first graduation ever held outside Honiara was held in Auki, Malaita Province, where 176 students graduated with a Graduate Certificate in School Leadership (GCSL).

This was a special in-country programme for the Solomon Islands that was developed and delivered by the Institute of Education (IOE).

The new campus development has been delayed.


Following advice from the Asian Development Bank (ADB), the University hired the services of an Independent Engineering Firm (IEF) to review and finalise the updated Tender Bid Documents (TBDs) initially prepared by Kramer Ausenco (KA).

The initial TBD’s prepared were not fully compliant with ADB procurement requirements.

ADB required an independent review of the TBDs before the re-bid exercise for the procurement of the Civil Works Contractor.
With approval from ADB, Alexander & Lloyd (A&L) was appointed as an Independent Engineering Firm (IEF) in May.

The signature of the Civil Works Contract was delayed because the estimates exceeded the funds available.

The ADB advised that we could only tender for buildings which the available funding can cover and not for the whole project.

It was agreed that the matter will be revisited in early 2019.
The University briefed the Government of Solomon Islands on the status of the project and reaffirmed its commitment to this valuable project.

The development of new USP Solomon Islands Campus is a high priority for the University in 2019.
Tokelau For the first time in USP’s history, the three sub-centres in the atolls of Fakaofo, Nukunonu, and Atafu were visited by a member of the Senior Management Team when the Vice-President Regional Campuses and Estates & Infrastructure visited Tokelau on a joint mission with the UN and CROP agencies on behalf of the Chair of the Committee for USP’s 50th Anniversary Celebrations.

The Government of Tokelau engaged a Student Coordinator to be based at the Laucala Campus.
Further to a request from the Government of Tokelau, the USP ICT Team completed the connection of USPNet from the Fakaofo Sub-Centre (SC) to the Fakaoko High School (FHS), so all SC connect to corresponding HS.

Tonga The Tonga Campus was one of the first areas in Nuku’alofa to recover from Tropical Cyclone Gita, due to the robust USP IT network and the fact that it was built to certification.

The planned upgrade of the Campus was also fully completed with the installment of a back-up generator.
The Concept and Costing Plans for the new Tonga Campus were completed.

One of the highlights of the ‘Moments to Shine’ for the Tonga Campus was the commissioning by His Majesty King Tupou VI of the “Kukū Kaunaka”, which is a collection of PhD dissertations by Tongans, and the launching of the new programme leading to the Certificate in the Tongan and Niuafo’ou languages.

In collaboration with IOE, the Tonga Campus established a Committee to strategically support “Priority Students” through monitoring.
Tuvalu The 2018 celebrations in Tuvalu included officially obtaining the piece of land for the development of the new Tuvalu Campus.

USP began to upgrade the existing Tuvalu Campus, through the provision of extra teaching and learning spaces, while discussions continued between the Government of Tuvalu and potential donors relating to funding for the new campus.

The Concept and Costing Plans for the new Tuvalu Campus were completed.
59 REGIONAL ENGAGEMENT THROUGH THE CROP MECHANISM The primary means through which USP engages with the region is through CROP meetings and Working Groups.

There are quarterly meetings of CROP Heads and many Working Groups that drive the implementation of a Strategic Work Agenda.

In 2018, CROP agencies agreed to a new CROP Charter, endorsed by Leaders at the 49th PIF, that will further improve collaboration.
Ministers Meeting, 8th Japan-Pacific Island Leaders Meeting (PALM 8), and the Conference of Parties for the UN Framework Convention on Climate Change (COP24).

Visits to Member Countries and trips throughout the region by the Pro Chancellor, Vice-Chancellor and President and other members of the SMT also supported the deepening of meaningful ties.

Meetings are always sought on the fringes of significant regional gatherings, which is an economical way to build and maintain links.
USP continued to Chair the CROP Human Resource Development (HRD) and the CROP ICT Working Groups.

The HRD Working Group with the Small Working Group and other implementing agencies worked on a new regional education framework, the Pacific Regional Education Framework, Moving Towards Education 2030 (PacREF), which was endorsed at the Forum Education Ministers Meeting (FEdMM) in May.
PacREF prioritises actions in 4 areas, namely Quality and Relevance, Learning Pathways, Students Outcomes and Wellbeing, and Teacher Professionalism.

The CROP ICT WG implemented the Regional ICT Initiative through the Regional ICT Strategic Action Plan.

The University also participated in a wide range of high- level policymaking meetings, including the PIF and related Meetings, and Ministerial Meetings.
At the PIF Leaders’ Meeting in Nauru, CROP presented its achievements, including working to deliver on the Leaders’ decisions relating to Climate Change and Resilience, Fisheries, Sustainable Ocean Management and Conservation, Agenda 2030 and the S.A.M.O.A Pathway, regional security, and regional governance.
USP, together with other CROP agencies, also provided policy and technical advice to the region by supporting the implementation of regional policy instruments and by contributing to the development of new policies, such as the PacREF.

The University supported engagement in international foras, including the 3rd Korea-Pacific Islands Foreign EU Funding for Regional Development USP participated effectively in EDF 11 PRIP.
Agreements were signed for projects that will be implemented with other CROP agencies, and international organisations, including: • Pacific-European Union Marine Partnership (PEUMP): This is worth EUR 5.7m for 57 months from July.

USP will focus on capacity building for stakeholders in fisheries and marine resources management; • Transparent and Effective Policies and Public Financial Management: This is worth EUR 1.2m for 36 months from 1 January 2019.
USP will improve the capacity of public sector professionals in the region; • Intra-ACP Global Climate Change Adaptation, Pacific Adaptation to Climate Change and Resilience Building (PACRES): This is worth EUR 2.5m for 54 months from 1 January 2019.
USP will build the capacity of technical institutions and universities to support Climate Change Adaptation and Mitigation; and • Global Climate Change Alliance Plus Scaling Up Pacific Adaptation (GCCA+SUPA): This is worth EUR 2.1m for 54 months from 1 January 2019.

USP will strengthen planning capacity relating to Climate Change and Disaster Risks at the sub- national and community levels.
Weaving Exhibition at Marshall Islands Campus 60 2018 Annual Report 1968 -The first of Academic and Administrative staff Our People 2018 -Today, USP provides equal employment opportunities 61 been an under-performing The area of Human Resources has long section of the University, despite its importance.

Some steps were taken to address this in 2018 while also ensuring that the core HR work was carried out to high standards.
STAFFING With the Vice-President Administration (VPA) position vacant in 2018, responsibility for the different areas that fell under the VPA portfolio was shared by the Senior Management Team (SMT).

The areas that came under VPA were Commercial, Human Resources, IT Services (ITS), Planning and Quality, WSCUC Accreditation, Banner Revitalisation and Library.
Commercial responsibility was given to the Acting Dean, Faculty of Business and Economics; Human Resources and Library to the Deputy Vice-Chancellor Research, Innovation and International (DVC RII); ITS to the Deputy Vice-Chancellor Learning, Teaching and Student Services (DVC LTSS), who also took on the responsibility of overseeing the WSCUC Accreditation process; Planning and Quality came under the Executive Director, Strategic Partnerships, Advancement and Communications and the Executive Director Finance was given responsibility for the Banner Revitalisation project.
Later in the year certain responsibilities changed, with Human Resources and ITS given to the Dean Faculty of Science, Technology and Environment, (FSTE) Associate Professor Jokhan, commensurate with her appointment as Acting Vice-President Digital Services and Human Resources.

Dr. Bibhya Sharma, Associate Dean, was then appointed to the position of Acting Dean FSTE.

The positon of Acting Dean, FBE remained an acting position as the University was unable to make a substantive appointment to that role.
Memorial for Professor William (Bill) Aalbersberg Professor Bill Aalbersberg’s life and impact on USP and its Member Countries was celebrated on 16 August at the Marine Studies Campus at Laucala.

He had passed away peacefully in February.

Prof Aalbersberg served USP for more than 27 years, as a Lecturer, Senior Lecturer, and Professor before becoming Director of the Institute of Applied Science from 1999- 2014.
He produced over 230 publications in key scientific research areas and mentored and supervised many Master’s and PhD students.

He was also on the editorial board of numerous publications and journals and led several government committees on biodiversity, trade and standards, and food and nutrition.
During his time as the Director of IAS, Professor Aalbersberg was responsible for the first full-service internationally accredited laboratory 62 2018 Annual Report in the region; the establishment of a Centre of Excellence in taxonomy and ecology at the South Pacific Regional Herbarium; the establishment of Fiji’s first Natural History Museum, housed at the Fiji Museum; the establishment of a research centre for natural products; and the setting up of one of six regional United Nations Global Centres for the Analysis of Persistent Organic Pollutants (POPs) under the Stockholm Convention, among many others.
In addition to his academic achievements, he had a warm personality and was admired and highly respected by his students and colleagues, as well as by the many communities that benefited from his work.

A plaque and a tree at the Marine Campus honour him.

Collective Agreement The Collective Agreement with the Laucala I&J and Hourly paid staff expired on 31 December 2018.
While it is unfortunate that a new agreement was not reached before the expiration, HR and the Union began talks and negotiations in good faith.

It was anticipated that a new agreement will be reached in early 2019.

In December, Collective Agreements for Kiribati and Samoa were signed.

These had expired a few years ago.

STAFF FORUMS Vice-Chancellor’s Staff Forum The first Forum was held on 14 March, hosted by Professor Derrick Armstrong, DVC RII.
Staff heard about the WASC Senior College and University Commission (WSCUC) Accreditation process and raised issues on the renewal of contracts and five-year contracts for academic staff; the Whistle-Blower Policy; validity of work permits; staff reviews and subsequent appeals; salary structure; and security on campus.

Senior Management pledged to address the issues.


The second Vice-Chancellor’s Staff Forum for the year was held on 14 September, hosted by Professor Richard Coll as Acting Vice-Chancellor & President.

Staff were briefed on the status of the University relating to WSCUC Accreditation.

Staff raised concerns about the implementation of biometrics and the general operations of the HR department.
They also addressed issues including the lack of parking space on campus, the need for a revamp of the USP website, the Dining Hall, on- campus accommodation for students with disabilities, and the use of the gym for classes.

Professor Coll explained the contents of the Master Plan and undertook to follow up on the concerns raised.

STAFF TRAINING AND PERFORMANCE Moodle Workshops The Centre for Flexible (CFL) Learning offered a series of Moodle workshops to staff for professional development purposes.
Fifty-two staff accessed these in July and 39 members of staff attended workshops in August.

The training was designed to help staff with marking, setting assignments, and administering quizzes.

Similar Moodle Workshops were facilitated at the Emalus and Alafua Campuses.
SALARY ADJUSTMENTS Academic Staff and the Senior Management Team The 86th Council Meeting had approved the salary adjustment for Academic Staff and members of the SMT, including the Vice-Chancellor and President, for the 2016 to 2018 triennium.

This was implemented in June.

FOCUS IN 2019 The major focus in 2019 will be to recruit the Executive Director, Human Resources, and other senior staff who are very critical to the efficient operation of the University.
The focus will also be to recruit several staff on senior academic positions that have been vacant for a while now.

The systems and process in the Human Resources Section will also be looked to be effective, user friendly and transparent.
Senior staff during the New Strategic Plan consultation Members of USP staff during the Staff Forum 63 2018 Annual Report 1990 - Council meeting at Laucala Campus Governance, Management, Leadership and Continuous Improvement 2018 - Council meeting in Suva, Fiji 64 2018 Annual Report The University’s Royal Charter and the Statutes of the University authorise it to provide education, training and research for the benefit of its 12 member countries.
The Charter and Statutes are supplemented by the USP Convention, which recognises the University and its operations in those countries.

Executive decisions of the University are made by the University Council and its specialised committees whilst academic decisions are exercised by the Senate and its committees.
The governance objective of the 2018 Annual Plan was “…to have an effective external process for monitoring, evaluating and enhancing the work of the Council, Senate and their Committees.” This objective was to be achieved through cyclical and regular reviews of the Charter, Statutes and institutional policies and through appraisals of the work of University Committees that support key strategic areas as outlined in the Strategic Plan 2013 - 2018.
UNIVERSITY’S STRATEGIC DIRECTION With the successful conclusion of the University’s Strategic Plan 2013-2018 at the end of the year, the Council was presented with the draft of the new Strategic Plan 2019-2024.

At its second meeting the Council approved the new Strategic Plan with an understanding that the new Vice-Chancellor and President would incorporate changes to further enhance the Plan and bring it to the Council for final approval.
Based on the University Grant Committee’s (UGC) recommendations, and the endorsement by Ministers responsible for Finance of Member Countries of the triennium budget, the Council also approved the Annual Plan for 2019.

GOVERNANCE MATURITY AND AWARENESS The University tailored a series of workshops for staff and students to raise awareness of its governance issues.

The feedback received was positive so this workshop series will continue in 2019.
An Order of Precedence was approved to prescribe the etiquette dealing with distinguished guests of the University and University Officers for events hosted by the USP; this will ensure the University is clear and consistent in its public events.

Work started on the development of a Governance Framework to situate all governing instruments, including the University’s policy suite and a Quality of Governance Index, to enable USP to objectively quantify its governance maturity.
The University, through the Pro-Chancellor, Secretary to Council and the Council and Senate Secretariat, continue to engage with similar governance offices at Australian universities to assist USP in governance benchmarking.

USP CONVENTION All 12 Member-Countries of USP signed the USP Convention, an agreement between the University and each Member recognising the University and its operations.
The Convention is the culmination of an external Governance Review from 2014, which recommended such an agreement be made to formalise the University’s relationship with each Member Country.

By the end of 2018, 7 countries had ratified the Convention.

The Government of Fiji, as the official depository of the Convention, announced that the Convention came into effect on 16 June 2018 on receipt of the 6th ratification.
This was an institutional accomplishment and signaled the recognition accorded to USP as the region’s university.

POLICY ENVIRONMENT AND AWARENESS The University’s policies and procedures are housed in an online library accessible to all staff and students.

Policies and procedures undergo a comprehensive process of development, consultation and implementation after which they are reviewed on a regular and cyclic schedule to ensure relevance and quality benchmarking.
In 2018, 66% of all policies and procedures were reviewed and updated; the remaining 34% will be reviewed in 2019.

To complement the review of policies, the University delivered a series of awareness sessions on policies and procedures for staff and students.

Feedback received the was positive so this series will continue in 2019.
SENATE EXTERNAL REVIEW The University’s chief academic body, the Senate, underwent an external review that was required by the Senate Standing Orders which mandate a review every 5 years.

The Senate’s powers, purpose, structure, composition, decisions and responsibilities were reviewed and its performance was analysed against international good practice for the purpose of improving USP’s academic governance.

The review was completed in December 2018 and the report will be considered and actioned in 2019.
MONITORING AND EVALUATION FRAMEWORK FOR UNIVERSITY COMMITTEES AND BOARDS As part of the University’s continuous improvement, University committees continue to be self-evaluated annually for relevance and compliance to their respective Terms of Reference (TOR).
The 2018 review of the template used for Committee TOR was intended to ensure that Committees serve their purpose and effectively support the overall governance of the University, whilst observing standard practices of confidentiality and conflicts of interest.

65 RECORDS MANAGEMENT Audit and Risk Committee The University continued to roll out its electronic records management system to all USP Campuses for the purpose of records integrity and accessibility.
LEADERSHIP AND MANAGEMENT The Council appointed the following University Officers in 2018: • A new Chancellor, the titular head of the University, was appointed.

The President of the Republic of Kiribati, His Excellency Taneti Maamau, was appointed to a one-year term from 1 July 2018.

The Council thanked the previous Chancellor, the President of Fiji, His Excellency Major General (Ret’d) Jioji Konusi Konrote, whose term ended on 30 June 2018.
• Mr Winston Thompson was reappointed as the Pro-Chancellor and Chair of Council for a three-year term from 1 January 2019.

The Pro- Chancellor continues to actively engage with the University Chancellor’s Council (UCC) of Australia to ensure USP’s leadership and governance is comparable with that of Australian universities.
• Professor Pal Ahluwalia was appointed as the Vice- Chancellor and President of the University from 1 January 2019 at the completion of Professor Rajesh Chandra’s term on 31 December 2018.

COMMITTEES OF COUNCIL Finance and Investments Committee (FIC) The FIC met four (4) times in 2018 to consider financial governance and management activities.

At these meetings, the FIC the Audited Financial Statements for 2017 and approved the Half Year Audited Financial Statements for the period ending 30 June 2018.
The FIC monitored the outcomes of the planned savings and efficiency exercise of 2017 against targets, and noted that the University managed to generate savings of FJD 2.6m against the target of FJD 2.5m.

Since deregistration for those who fail to pay fees began to be enforced, there was an increase in fee payments and a decrease to the rate of debts as compared to previous years.

The Committee also endorsed the UGC’s Financial Plan for the triennium 2019-2021 for Council’s approval.
Several financial policies were reviewed and approved by the FIC in 2018.

The FIC approved and monitored the progress of the University’s capital projects, including the Laucala Campus CI Model Project, the Configuration of the Main Library Spaces, and the development of the new Main Gate for the Laucala Campus.

The Committee monitored the progress of the Solomon Islands Campus and approved concept plans for Tonga and Tuvalu.
The Audit and Risk Committee (ARC) met 7 times in 2018 to provide independent assurance, advice and assistance on the University’s risk, control, compliance, internal audit and governance framework, as well as its external accountability responsibilities.

It worked closely with the internal and external auditors and the Assurance and Compliance section of the University.
It discussed 8 internal audit reports from KPMG on: Strategic & Business Planning, HR Recruitment & Contract Management Cycle; HR Development & Performance Management; Capital Projects Management Cycle; Governance, Risk Management Compliance Systems & Leadership; Banner Re-engineering project; Cash Handling & Management; and the Estates & Infrastructure Cycle.

The Committee also conducted an audit of the Nauru Campus.
In addition, the ARC reviewed the Audited Financial Statement for 2017 and the Audited Financial Statement for the Half Year ending 30 June 2018 before forwarding the reports to the FIC for final endorsement.

The ARC also approved the Strategic Three Year Internal Audit Plan 2018-2020 that outlines the planned internal audit coverage and links it to the University’s Enterprise Risk and Strategic Plan.
COMMERCIAL OPERATIONS Commercial Operations encompasses the USP Book Shop; Computer Shop; Student Lockers; Community Recreation Centre; Staff Residences; Student Halls of Residence; USP Lodges; and leased out properties at and around the Laucala Campus.

The Commercial Operations section earned total revenue of FJD 12,237,888 in 2018, as compared to FJD 10,965,121 in 2017.

A net surplus of FJD 1,993,059 was recorded compared to FJD 3,543,063 in 2017.
Residential Housing recorded a net deficit of FJD 50,951, despite recording a 20 percent increase in revenue.

Accommodation and Leased Out Properties The Residential Halls at Laucala maintained 100% occupancy of its 31 Married Quarters (MQ) and 1,061 beds in single and dual occupancy rooms.

The Marshall Islands Campus added 12 rooms and 1 suite at the new Campus for visitors.
At Alafua, there are 50 single, 18 double and 4 married quarters, and, in Vanuatu, the University has 138 single and 12 married quarters.

The 12th Hall Project, which will add 400 beds in mixed categories, was put on hold.

Staff residences saw a 20% increase in income due to the implementation of strict debt collection policies and a faster turnaround time between tenants.

The consolidated Surplus of Income for lodges is FJD 0.3m, compared to FJD 0.14m for same period in 2017.
66 Leased out properties recorded an increase of 57% in net surplus, specifically FJD 189,353 in 2018 compared to FJD 80,854.

This can be attributed to the space formerly used by ANZ Bank having been leased out to The Hot Bread Kitchen.

Student Lockers Student Locker income declined by 58%, despite recording a surplus of FJD 18,866 in 2018.

The surplus recorded in 2017 was FJD 32,498.


The surplus was due to lower costs associated with lockers; student interest in lockers is declining due to the increase in both online courses and locker break-ins.

Fitness Centre and Community Recreation Centre (CRC) The Fitness Centre had a successful year that saw a substantial increase in membership to 6,668 members in 2018 (compared to 4,510 in 2017).
External members numbered 1,582 whilst internal members were 5,086, compared to 1,473 and 3,037 for 2017 respectively.

Total income for the Fitness Centre and CRC was FJD 709,085 for 2018, up from FJD 688,477 for 2017.

Book Centre and Computer Shop The consolidated income for the Book Centre and Computer Shop as at 31 December 2018 stood at FJD 6,225,568, compared to FJD 5,212,353 in 2017.

Which is an increase in revenue of 16%.


The increase in the annual turnover was due to the expectation of a greater shift to online mode than actually occurred and the fact that the value of goods in transit for 2018 was much lower than in 2017, (hence the sale was recognised in 2018).

The sale of course materials formed 50% of the total income generated, followed by textbooks at 22%.

Pacific books revenue increased due to a government purchase order of FJD 165,000.
The main expense for both shops is the cost of sales and staff salaries.

CONTINUOUS IMPROVEMENT USP measures its institutional progress in terms of enrolment numbers, the satisfaction of its Member Countries, the research outputs that address Member Country priorities, and the external validations of its quality.

Strong partnerships with Member Countries, the private sector, and international partners support USP’s ambitions to constantly improve its quality and value.
The University’s strong ties with development partners such as Australia and New Zealand make it possible to record better outputs and impacts throughout the region with each passing year.

In 2018, discussions were held on new agreements that will enable the growth and development of USP through its new Strategic Plan 2019-2024 and will back USP’s efforts to expand its global reach by engaging in international activities aligned with the priorities of its Member Countries.
USP-Australia Partnership Agreement 2019-2024 The USP-Australia Joint Working Group worked throughout the year on a new partnership that will draw on the strengths of previous cooperation.

Australia committed to a six year agreement with USP.

The final agreement, worth FJD 84 million, will be finalised in early 2019.

USP-New Zealand Partnership 2019 – 2021 New Zealand and USP commenced preliminary discussion on the new partnership arrangements.
A core funding agreement for the year 2019, worth NZD 5.15 million and with additional support of NZD 100,000 for emerging priorities, will be announced in early 2019, as it will give the parties more time in 2019 to discuss longer term partnership arrangements.

Accreditation within Member Countries It is a legislative requirement that the University submits information on its programme offerings from Level 7 to 10 for recording by the Fiji Higher Education Commission (FHEC).
The recording of programmes by FHEC recognises the internal accreditation process of the University.

The recorded programmes will eventually be registered on the Fiji Qualifications Framework.

Four programmes from Faculty of Arts, Law and Education, namely the BA History, BA Psychology, BA Social Work, and the BA Sociology, were submitted to the FHEC.
The School of Agriculture and Food Technology (SAFT) applied for accreditation from the Samoa Qualifications Authority (SQA) to register its programmes on the Samoa Qualifications Framework (SQF).

MAJOR FOCUS IN 2019 The University will continue to enhance and further embed good governance throughout the institution with the development of the Quality of Governance Index as the University embarks on and journeys through its next Strategic Plan.
The University’s Monitoring & Evaluation Framework for all committees and boards will be developed and implemented to allow an annual self- evaluation of performance and committee effectiveness.

Awareness raising will continue for staff and students on the University’s governance and its policy environment.
USP will continue to engage with the Australian Universities Forum for Chancellors (the equivalent of USP’s Pro-Chancellor), Vice-Chancellors and University Secretaries for the purpose of governance benchmarking and anticipating emerging trends and issues.

Work will continue with the four remaining countries to ratify the USP Convention.
These planned activities are formulated for the continual improvement and development of new tools to support USP’s governance so that it remains relevant, responsive, and has comparable governance standards to similar universities.
67 2018 Annual Report 1984 - Graduation ceremony comprised of hundreds of students Quality Matters 2018-Over five thousand students graduated within this year 68 2018 Annual Report registration, accreditation, academic standards and to providing The University is committed to maintaining high learning opportunities that will enable students to achieve academic success.
This is mainly achieved through the conduct of quality reviews, the attainment and continuation of and recognition, and the administration of surveys, the results of which inform the University’s decision-making.

One of the year’s major achievements was the award of Initial Accreditation from the WASC Senior College and University Commission (WSCUC).
This external validation of USP’s quality strengthens our brand, making it easier for staff to carry out joint research activities with other educational institutions, straightforward for US citizens who wish to take out loans for their studies at USP, and simpler for USP alumni looking for employment overseas.
REGIONAL RECOGNITION AND REGISTRATION OF THE UNIVERSITY USP meets the requirements of the national regulators of higher education in its Member Countries and works with the regional Higher Education Commission on the recognition and registration of the University and its programmes.

The University’s five-year initial registration with the Fiji Higher Education Commission (FHEC), which was to have expired in April, was extended until 3 May 2020.
In August, USP formally requested that the Tonga National Qualifications and Accreditation Board (TNQAB) recognise the WSCUC accreditation as the basis for the re-registration of the University.

Their decision on USP’s registration will be communicated in 2019.

In late 2018, the University commenced work on the Application for Renewal of Registration with the Samoan Qualifications Authority (SQA).
ACCREDITATION WSCUC Accreditation The WSCUC accreditation process was lengthy and involved much self-reflection, several reviews and audits, and various visits.

The process entailed a great deal of learning for the University and was consistent with the internal auditing that we conduct as part of annual and strategic planning.

USP hosted WSCUC Seeking Accreditation Visit 1 (SAV1) from 11- 13 April.
The SAV1 Review Team produced a Report, which was considered by the Commission, together with the Institutional Report, exhibits and USP’s response.

The Commission Meeting was held from 27- 29 June and was attended by the former Vice- Chancellor and President and Deputy Vice-Chancellor (Learning and Teaching) who is also the Accreditation 69 Liaison Officer.

It was at this meeting that the Commission granted Initial Accreditation to USP for a period of 6 years, effective from 20 July 2018.
It also made several Commendations and Recommendations.

Commendations The Commission commended USP for having: 1.

A mission that contributes to the public good through a vision of achieving excellence and innovation for the sustainable development of the Pacific islands; 2.

Strategic that planning processes are comprehensive, inclusive of key stakeholders and forward-looking.
USP achieved 80% of the 2013- 2018 Strategic Plan’s objectives, with all objectives tied to budget allocations and results reported on an annual basis.

The University Council will initiate a new Strategic Plan in 2019; 3.

Awareness of the Member Countries’ vulnerability to the impacts of Climate Change that have resulted in academic programmes and research activities in climate change and sustainable development.
USP has taken a leadership role in the dissemination of knowledge and expertise in these areas within the Pacific region and internationally; 4.

A sustainable financial position with reliable diversified revenue sources, and alignment of financial planning and the Strategic Plan; 5.

A commitment to continuous quality improvement with regard to curricular development.
The University has numerous quality assurance processes to verify that curricula are designed, reviewed and revised with high levels of faculty engagement and oversight.

USP’s programme review process provides an effective mechanism for curricular improvement; 6.
A commitment to the use of standardised course outline templates and common assignments, along with the centralised process of exam moderation and engagement in assessment tasks, aimed toward a consistent student learning experience; commitment 7.

The Planning and Quality Office, which exemplifies an organisational to quality assurance, and formalises planning processes across constituencies, resulting in documents such as the Planning and Quality Assurance Framework and University Quality Policy; and 8.
The Disability Resource Centre that provides support and accommodations, and fosters a strong community, continuing to expand accessibility for students with disabilities throughout the region.

Recommendations The Commission required USP to undertake the following actions.

All of these actions were consistent with improvements that the University knew were required: 1.

Reduce vacancies in key leadership and academic and non-academic staff positions, using flexibility in hiring practices; 2.
Invest in information technology resources and connectivity to meet the needs of current students and facilitate the planned expansion of distance education delivery; 3.

Significantly improve the assessment of student learning outcomes, including the use of direct evidence to assess student achievement of undergraduate programme learning outcomes and post-graduate outcomes.

The results of the assessment of student learning outcomes along with pass rates and grades will measure student success.
The University should demonstrate student achievement of the 7 graduate outcomes across all undergraduate programmes; 4.

Demonstrate appropriate in degree programmes exemplified, for example, in the grading scale and complexity of assignments reflecting a progressively challenging curriculum; rigour 5.

Develop institutional research throughout the Regional Campuses to include disaggregated data, standards of performance and internal and external benchmark comparisons; 6.
Ensure that distance education courses include faculty-initiated regular and substantive interaction with students synchronously or asynchronously via the internet, one-way or two-way transmissions or audio conferencing.

USP needs to differentiate students to distance education programmes or to face-to-face programmes to ensure comparability of programs using metrics of student success such as student learning outcomes, retention, graduation rates and student satisfaction, and admitted 7.
Expand the development and training of academic staff, specifically in the areas of effective pedagogy, best practices in assessment and use of data in planning and decision-making.

The WSCUC expressed ‘its appreciation for the extensive work that USP undertook in preparing for and supporting this accreditation review.

WSCUC is committed to an accreditation process that adds value to institutions 70 while contributing to public accountability’.
In the years to come, it is imperative that the University sustains the Commendations and ensures that there is a systematic and sustained effort to address the Recommendations of the SAV1 Review Team.

The University has scheduled a Mid-Cycle Review for 1 May 2021, which will be followed by the submission of an Interim Report by 1 November 2022.

Additionally, the University the Reaffirmation Review, with an Offsite Review and Accreditation Visit, occurring in Fall 2023 and Spring 2024 respectively.
is scheduled for International Accreditation One new international accreditation and 3 new international recognitions were attained in 2018, namely: • Accreditation: Postgraduate Certificate in Tertiary Teaching from the Staff and Educational Development Association (SEDA) of the United Kingdom: and • Recognition: Foundation Arts Programme (FNA), Foundation Business Programme (FNB) and, Foundation Science Programme (FNSN) from Universities New Zealand.
The Bachelor of Networks and Security (BNS) and Bachelor of Software Engineering (BSE) programmes received conditional accreditation from the Australian Computer Society (ACS).

In total, the University (not including Pacific TAFE, which manages accreditation differently) has 27 internationally accredited programmes and 15 internationally recognised programmes.
Pacific TAFE attained international accreditations for 100 short courses from the United Kingdom (UK) based accreditation agency, Continuing Professional Development (CPD) Certification Service UK.

EXTERNAL REVIEWS OF ACADEMIC PROGRAMMES Cycle 2 of the External Academic Programme (EAP) Reviews was administered in 2018 under a revised policy, which was approved by Senate 1/ 2017.
The EAP Reviews are based on a Self-Review Report, compiled by the programme or discipline, and an On-Site Visit (OSV) by the External Review Panel (ERP), during which time stakeholders are consulted.

The ERP for 2018 consisted of senior academics from universities in Australia and New Zealand, as well as 2 reviewers from the US.

The Bachelor of Arts (BA) in Politics programme was reviewed from 23-25 April at the Laucala Campus.
In the latter part of the year, the BA Politics staff worked on the recommendations of the EAP Review.

The EAP Review the Senate-approved actions to address of the programmes of the School of Management and Public Administration took place on 15-18 October, also at Laucala.

The draft Review Report was submitted to the University in November, and the School provided its response to the panel in December.

The EAP Review Report will be submitted to USP after SMPA’s response is considered.
The disciplines that were reviewed in 2018 were Biology, Information Systems, and Psychology.

The OSV for Biology was held from 19-22 February at the Laucala Campus.

Following this, the Biology discipline devised an Action Plan to address the recommendations that were made and submitted this to the University Senate for approval.

The OSV for Information Systems took place on 3-6 September, while the EAP Review of the Psychology discipline was held from 8-11 October.
The Information Systems and Psychology staff worked on Action Plans to address the recommendations of the EAP Review Reports.

These Action Plans will be submitted to the University Senate in early 2019.

EXTERNAL REVIEW OF THE SENATE An External Review (ER) of the University Senate was completed in November by Professor Roger Field, the former Vice-Chancellor of Lincoln University, New Zealand.
The Report, while including constructive recommendations, clearly stated that the Senate, as the body responsible for the academic governance of USP, is both effective and consistent.

The University will now focus on its Action Plan to address the recommendations of the ER in 2019.

INSTITUTIONAL SURVEY RESULTS Surveys are an important source of feedback from students, staff and external stakeholders as their results provide objective information and useful data for decision- making.
Three large-scale surveys were administered in 2018. a.

Total Experience Survey (TES) The TES is an online survey, administered annually in the second semester that enables undergraduate students to rate various aspects of their University experience.

The response rate in 2018 was 29%, a figure that USP aims to increase for 2019.

The TES survey results indicated that 89% of respondents were satisfied with First Year Students’ Engagement and Inclusion (up by 2% from 2017).
The undergraduate students’ satisfaction rating of the Overall Educational Experience was 81%, which was the same as the 2017 result.

b.

Graduate Destination Survey (GDS) information on graduate The GDS gathers employment after completion of studies.

The 2017 GDS results relate to four campuses, namely Laucala, Emalus, Alafua, and the Solomon Islands.

The results showed that overall employment (part-time and full-time) of graduates for 2017 was 69%.
This was lower than the previous years’ overall employment results of 72% (2016) and 74% (2015).

The reason for this is that, in previous years, the surveys covered Fiji only.

The graduate employment rate by nationality in 2017 was Fiji (69%); Samoa (63%); Vanuatu (49%); and Solomon Islands (62%).
Eighty-eight percent (88%) of the respondents indicated that their qualification, major field of education and other skills and knowledge acquired during their study were important and highly relevant to their work.

The satisfaction rate relating to the overall programme experience of USP graduates was 91%.

c. Student Evaluation of Courses (SEC) The Semester 1, 2018 SEC response rate was 18%, with an overall satisfaction rating of 89% (as compared to 88% in Semester 2, 2017).
The response rate was very low, and care will be taken to encourage more students to complete similar course evaluations so that the information gathered is more useful.

The SEC survey was replaced by the Course Experience Survey (CES) from Semester 2, 2018.

The CES is a more rigorous approach to the evaluation of teaching actions and focuses on the teaching design, efficiency, effectiveness and its capacity to engage.
MAJOR FOCUS IN 2019 The University will continue to advocate for quality checks and assurance throughout the scope of its work.

It plans to strengthen Institutional Research and Data Management capability at the University, and increase the visibility of institutional survey findings and their use to improve practice.

Work will also continue on the External Programme Reviews Schedule of 2017 and at least two Support Sections will be externally reviewed.
The University’s Planning and Quality Office plans to work collaboratively with the FHEC and the Regional Higher Education Commissions (namely TNQAB and SQA) to formally register the University with those regulatory bodies.
71 2018 Annual Report 1980-Serving the community has always been at the heart of USP Corporate Social Responsibility 2018 - USP still engages in community activities 72 2018 Annual Report to that contributes positively USP is a proud exemplar of a large and diverse institution its communities, from the local to the regional level, by being open and sharing its knowledge, networks and facilities and by donating time and resources to just causes and people in need.
The Golden Jubilee Year saw many alumni and stakeholders engage with USP, which helped to ensure that the University is more than just a centre of learning and research, but also an incubator for socially responsible and civic-minded young people.

USP is proud that its staff and students demonstrated their commitment to Pacific values through acts of charity and donations of time and resources.
While Corporate Social Responsibility has many dimensions, including having policies that support equity, protect the environment, and promote sustainability, this 2018 snapshot focuses on how USP’s staff and students have taken actions to support those in need in their communities, and how USP invites the public to access its knowledge and resources.
CHARITABLE DONATIONS The University held a Flood Appeal on 31 July that raised FJD 5,639.96 which was presented to the Fiji Government to assist with recovery from Tropical Cyclones Josie and Keni.

USP also organised the continuing donation of Braille Eye Slates, invented by USP staff and students, to special schools, USP campuses and centres, and Member Countries.

A donation was presented to the Samoa Blind Persons Association in April 2018.
USP will continue to work on innovative solutions to challenges, such as disability, faced in the region, and will share the results of its work for the benefit of communities.

Many staff and students were engaged in other fundraising and charitable activities.

The identification of projects and causes worthy of donation was entirely their prerogative.
Some examples were: • The USP Library held a Quiz Night on 6 September which raised $5,398 for the capacity building activities of the Fiji Library Association; • The Association of USP Staff Women’s Wing, which was formed on 21 August to specifically address women’s workplace issues at USP, held a Pinktober Morning Tea event that raised $2,500 for the Fiji Cancer Society in October; and • Pacific TAFE hosted the charity WOWS Kids Fiji in October to contribute, encourage and support its work addressing the needs of children living with cancer in Fiji.
The University is very open to lending its support to worthy causes and encourages creative ideas and the linking of those activities to academic programmes.

For example, 73 the School of Engineering and Physics works to provide power supplies to outer island and rural communities, enhancing those communities’ livelihoods and providing a valuable learning experience for the staff and students involved.

We are very grateful to the Government of France for supporting this community work.
ACCESSIBLE TO THE COMMUNITY USP also functions as a valued member of the broader community when it stages events and activities that are open to the public.

Examples include the highly popular Pacific Market Days and the Chinese language classes, aimed at community members of all ages and abilities, that are offered by the Confucius Institute.

Public lectures are free and open to the public.


The students, staff, and researchers in attendance benefit from the opportunity to network with businesspeople, government representatives, and community members who attend, while those guests have access to the latest knowledge.

A Public Lecture Series on Climate Change, held at Emalus in 2018, is just one example of the free lectures that the public can access.

The public can also access USP’s resources without visiting any campus.
For example, USP’s Centre for Flexible Learning launched a free app in October on Fijian History, which anyone can use to access relevant and up- to-date resources.

In addition, USP Global is an initiative, launched in November, through which programmes in USP’s areas of comparative advantage are offered online and rare accessible to a global audience.

These comprise a growing number of courses in areas such as Pacific Island Studies, Oceanography and Climate Science.
This type of learning opportunity engages and enriches the community and develops advocates for our region through the sharing of knowledge about the Pacific’s resources and challenges.

Sport was also used by two of the Regional Campuses to celebrate the 50th Anniversary and engage the community.
The Emalus Campus hosted a 50th Anniversary Rugby 7s Tournament in Port Vila in July, the objective of which was to bring the Golden Jubilee celebrations to many of the people of Port Vila, especially those with limited links to USP.

The Alafua Campus used sport for a different end; they began free Zumba classes to promote health and wellness for students, staff, alumni, and community members.
The USP Workforce Development Training Unit (WDTU) held a one-day Women & Leadership course on 8 March to coincide with International Women’s Day.

The course, which benefitted 27 women in leadership positions, explored the history of women in the workplace and developed leadership skills.

Such leadership training, geared toward the public, raises awareness of how to access further education.
OUTLOOK FOR 2019 It is very important that USP engages with local communities and has policies and working practices that support equity, protect the environment, promote sustainability, and support those in need, particularly in response to crises and natural disasters.

For 2019, USP will improve the outcomes of its sustainability, engagement, and CSR activities by engaging with staff and students to determine which CSR actions to prioritise at the institutional level.
At the same time, the consultations will make clear that smaller and individual actions are just as important and worthwhile.

Talking about community engagement, sustainability, and giving back at the start of the year will enable USP to provide more consistent support to staff, students, and groups on campus who wish to fundraise for charity or donate their time and skills.
Consultation and planning for CSR activities will also encourage and facilitate greater levels of participation and will make USP’s CSR activities more transparent and effective.

Students of the School of Accounting and Finance during their community service activity 74 2018 Annual Report 2018 FINANCIAL OVERVIEW The University recorded positive financial results for the year, achieving an operating surplus of $12.4m, compared to $7.9m projected in the budget and compared to $9.4m in 2017.
During the year the cash and cash equivalents increased by $30.2m and net assets grew by $12.6m.

During the year, the University complied with two new accounting standards, IFRS 9 “Financial Instruments” and IFRS 15 “Revenue Recognition”.

The application of new accounting standards in the assessment of credit risks (IFRS 9) has led to an adjustment of additional losses of $8.7m in 2017.
This is adjusted in the opening retained earnings for 2018, in which $3.8m was reversed and recorded as reversal of impairment gain in the 2018 income statement.

There was an extra ordinary transaction that impacted the financial results during the year.

A fire at Laucala Campus has caused a write off of assets of $6.9m.

of 5%.

All other incomes, including commercial revenues increased during the year.

There was a reversal of $3.8m in impairment loss, driven by improvement in debt collections.
Development assistance revenue dropped due to slow release of revenue driven by slow spending of development assistance project funds.

The reduction in other income was largely due to drop in penalty fees for students as majority of students pay fees on time due to enforcement of de-registration process for non-payments of fees by the deadlines.

Income from tuition fees continues to be the largest source of revenue for the University.
Tuition fees income increased to 39.1% in 2018 from 38.0% in 2017, compared to development assistance which decreased from 25.4% in 2017 to 22.2% in 2018.

Government contributions (20.8%), commercial incomes (7.0%) and other incomes (10.9%) make the other funding sources during the year.
The key highlights for the 2018 financial year are as follows: Graph 2: Incomes 2014 - 2018 The key highlights for the 2018 financial year are as follows: • Total income of $203.0m was 6% higher than 2017, but 0.8% below budget; FJD Millions 250 200 150 35.5 51.3 34.7 50.4 100 69.1 59.1 Graph 2: Incomes 2014 - 2018 34.4 34.4 50 33.9 52.6 66.1 38.4 31.3 48.4 72.5 38.8 36.3 45 79.4 42.3 • Total expenditure of $190.6m was 5% higher than 0 2014 2015 2016 2017 2018 2017, and 3% below budget; • Operating surplus of $12.4m represents 6% of total income and above the benchmark of 5%; • Property, plant and equipment increased by $5.3m from $226.4m to $231.7m; • Borrowings increased by $2.4m, from $11.3m to $13.7m; and • Net assets grew by $12.6m, from $145.1m to $157.8m.
INCOME 250 Government Grant 200 150 Expenditure 100 35.5 51.3 59.1 Tuition Fees 34.7 50.4 69.1 Development Assistance 31.3 48.4 33.9 52.6 66.1 72.5 Others 36.3 45 79.4 EXPENDITURE 50 42.3 0 34.4 34.4 38.8 2015 2014 2016 Tuition Fees Government Grant Graph 4: Expenditures 2014 – 2018 38.4 Total expenditure (including other comprehensive expense) increased by 5.0% from $181.4m in 2017 to $190.6m in 2018.
Staff cost is the largest component of expenditure, and comprises 45.5% of total expenditure, compared to 45.0% in 2017.

Operating cost dropped slightly to 43.7% of total expenditure compared to 46.3% in 2017.

Total expenditure (including other comprehensive 2017 expense) increased by 5.0% from $181.5m in 2017 to Others $190.6m in 2018.

Staff cost is the largest component of expenditure, and comprises 45.5% of total expenditure, compared to 45.0% in 2017.
Operating cost dropped FJD Millions Total expenditure (including other comprehensive expense) increased by 5.0% from $181.4m 200.0 in 2017 to $190.6m in 2018.

Staff cost is the largest component of expenditure, and comprises slightly to 43.7% of total expenditure compared to 46.3% 45.5% of total expenditure, compared to 45.0% in 2017.

Operating cost dropped slightly to in 2017.

43.7% of total expenditure compared to 46.3% in 2017.
150.0 Development Assistance Expenditure 12.8 14.5 16.0 14.1 2018 9.9 94.0 80.9 Graph 4: Expenditures 2014 – 2018 82.2 100.0 85.4 85.3 The University recorded total income of $203m and was $12m or 6.3% more than 2017.

There were increases from government contributions, tuition fees, consultancy, commercial income and reversal of impairment loss, offset by decreases in development assistance and other income.
FJD Millions 50.0 200.0 82.2 12.8 82.6 16.0 82.5 14.1 81.7 14.5 - 150.0 100.0 2014 80.9 2015 82.2 2016 85.4 2017 85.3 Pay Non Pay Provisions 86.7 9.9 94.0 2018 50.0 82.2 82.6 82.5 81.7 86.7 The increase in government contributions was due to additional support from member countries while increase in tuition fees was driven by enrolment growth Staff costs increased by $5.0m or 6.1% to $86.7m.
The increase in staff costs was due to increase in staff numbers and payments of staff salary adjustments for all levels.

- 2014 2015 2016 2017 2018 Operating costs (excluding provisions) slightly reduced by $0.7m driven by savings generated during the year, and maintenance costs not incurred or deferred.

The above were offset by increase in student research related expenses and travel expenses.

Pay Non Pay Provisions Staff costs increased by $5.0m or 6.1% to $86.7m.
The increase in staff costs was due to For other provisions, depreciation expenses dropped due to change in depreciation rates, increase in staff numbers and payments of staff salary adjustments for all levels.

recorded a loss on disposal of assets from the fire, and increase in exchange loss due to unfavourable movement of FJD against other currencies.
Operating costs (excluding provisions) slightly reduced by $0.7m driven by savings generated during the year, and maintenance costs not incurred or deferred.

The above were offset by increase in student research related expenses and travel expenses.

75 For other provisions, depreciation expenses dropped due to change in depreciation rates, recorded a loss on disposal of assets from the fire, and increase in exchange loss due to unfavourable movement of FJD against other currencies.
2018 Annual Report Staff costs increased by $5.0m or 6.1% to $86.7m.

The increase in staff costs was due to increase in staff numbers and payments of staff salary adjustments for all levels.

Operating costs (excluding provisions) slightly reduced by $0.7m driven by savings generated during the year, and maintenance costs not incurred or deferred.

The above were offset by increase in student research related expenses and travel expenses.
For other provisions, depreciation expenses dropped due to change in depreciation rates, recorded a loss on disposal of assets from the fire, and increase in exchange loss due to unfavourable movement of FJD against other currencies.

CASH FLOW AND FINANCING The University generated $40.8m of net cash flow from operating activities, compared to $11.7m in 2017.
The increase is largely due to settlement of member contributions, better collections of student debts, receipt of development assistance project funds but yet to be spent, savings from vacancies and slow spending of operating costs.

The University spent $12.8m on capital expenditure, including $2.3m through loans.

Overall, the cash and cash equivalents position showed a net increase of $30.2m, compared to a net decrease of $4.4m achieved in 2017.
The higher cash balance was driven by high cash generated from operating activities and slow spending of capital projects.

The cash reserve at the end of the year was adequate to operate the University for 3 months, above the required period of 2 months.

This is, however, masked by a backlog of capital expenditure approved but not yet spent which will be now be spent in 2019.
The University aims to generate more cash in the coming years in order to exceed the cash reserve level and generate more cash to invest in infrastructure and long term strategy.

FINANCIAL POSITION The University’s net assets totalled $157.8m, an increase of $12.6m or 9% higher than 2017.

The growth of net assets was largely driven by increase in surplus, addition of the new Nauru Campus, offset by increase in development assistance projects unexpended.
Receivables decreased by $16.1m, largely driven by early receipt of government contributions ($8m), collection of student debts ($4.1m), reversal of impairment loss ($3.8m) offset by slight increase of trade debtors.

Creditors and accruals decreased, offset by increase in government grants received in advance and slight increase in trade creditors.

Projects unexpended increased due to funds received for projects but will be spent in 2019.
Borrowings increased slightly due to final drawdown from FNPF for the 11th hall project.

CONCLUSION AND FUTURE OUTLOOK The 2018 financial results show that the University continues to maintain its strong financial position and will continue to exist as a going concern.

It is considered sustainable over the long term based on its current funding sources and expenditure commitments.
This position might change in the future should there be significant changes to its main revenue sources and expenditure patterns.
Kolinio Boila Executive Director Finance 76 2018 Annual Report THE UNIVERSITY OF THE SOUTH PACIFIC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 Statement by appointed officers .................................................78 Independent auditor’s report .......................................................79 - 81 Statement of comprehensive income ..........................................82 Statement of financial position ....................................................83 Statement of changes in funds and reserves ...............................84 Statement of cash flows ...............................................................85 Notes to the financial statements ................................................86 – 120 77 2018 Annual Report THE UNIVERSITY OF THE SOUTH PACIFIC FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 STATEMENT BY APPOINTED OFFICERS In our opinion the accompanying Financial Statements give a true and fair view of the financial position of The University of the South Pacific as at 31 December 2018 and of its financial performance, its changes in funds and reserves and its cash flows for the year then ended.
We are not aware of any circumstances which would render any particulars included in the Financial Statements misleading or inaccurate.
PROFESSOR PAL AHLUWALIA Vice-Chancellor & President MS LORNA ALOMA JOHANSSON Chair - Finance and Investments Committee KOLINIO BOILA Executive Director Finance 78 2018 Annual Report The University of the South Pacific FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT TO THE COUNCIL OF THE UNIVERSITY OF THE SOUTH PACIFIC REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the accompanying financial statements of the University of the South Pacific (the 'University'}, which comprise the statement of financial position as at 31 December 2018, and the statement of comprehensive income, statement of changes in funds and reserves and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the University as at 31 December 2018, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence We are independent of the University in accordance with the ethical requirements of the International Ethics Standards Board for Accountant's Code of Ethics for Professional Accountants (IESBA Code) that are relevant to our audit of the financial statements in Fiji, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Responsibilities of the University Council for the financial statements The University Council is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and the University's Royal Charter, and for such internal control as the University Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the University 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 unless the University Council either intends to liquidate the University or to cease operations, or have no realistic alternative but to do so.

The University Council is responsible for overseeing the University's financial reporting process.
79 2018 Annual Report The University of the South Pacific FINANCIAL STATEMENTS Independent Auditor's Report Auditor's Responsibilities for the Audit of the Financial Statements Our 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, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit.

We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the University's Council.

• Conclude on the appropriateness of the University Council's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the University's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.

However, future events or conditions may cause the University to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PricewaterhouseCoopers, Level 8 Civic Tower, 272 Victoria Parade, Suva, Fiji.

GPO Box 200, Suva, Fiji.

T: (679)3313955 / 3315199, F: (679) 3300947 PricewaterhouseCoopers is a member ﬁrm of PricewaterhouseCoopers International Limited, each member ﬁrm of which is a separate legal entity.
80 2018 Annual Report The University of the South Pacific FINANCIAL STATEMENTS Independent Auditor's Report Report on Other Legal and Regulatory Requirements In our opinion: a) proper books of account have been kept by the University, so far as it appears from our examination of those books, and b) the accompanying financial statements are in agreement with the books of account and to the best of our information and according to the explanations given to us give the information required by the University's Royal Charter in the manner so required.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

Restriction on Distribution or Use This report is made solely to the University's Council, as a body.

Our audit work has been undertaken so that we might state to the University's Council those matters we are required to state to them in an auditor's report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the University's Council as a body, for our audit work, for this report, or for the opinions we have formed.

PricewaterhouseCoopers Chartered Accountants Grant Burns 17 April 2019 PricewaterhouseCoopers, Level 8 Civic Tower, 272 Victoria Parade, Suva, Fiji.

GPO Box 200, Suva, Fiji.


T: (679)3313955 / 3315199, F: (679) 3300947 PricewaterhouseCoopers is a member ﬁrm of PricewaterhouseCoopers International Limited, each member ﬁrm of which is a separate legal entity.
81 2018 Annual Report The University of the South Pacific STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 31 December 2018 Income Government contributions Student tuition fees Development assistance Commercial activities Consultancy Other income Release of deferred revenue Interest income Realised exchange gain Notes 4 5 6 7 7a 8 9 Reversal of impairment loss – accounts receivable 3(i) 2018 $ 42,295,000 79,408,164 45,001,788 14,116,562 4,105,805 8,844,563 3,866,601 1,047,380 499,830 3,807,716 2017 $ 38,781,324 72,506,648 48,421,230 12,790,318 2,356,115 9,630,900 4,924,277 1,131,093 428,783 - Total income from continuing operations 202,993,409 190,970,688 Expenditure Staff costs Operating costs Depreciation and amortisation Movement in impairment provision - accounts receivable Impairment charge - inventories Unrealised exchange loss Loss on disposal of assets due to fire 10 11 17, 18 3(i) 12 17 86,725,993 83,389,334 9,898,639 - 203,755 2,583,494 6,972,254 81,715,947 84,030,217 14,032,413 476,463 38,422 1,059,372 - Total expenditure from continuing operations 189,773,469 181,352,834 Surplus for the year 13,219,940 9,617,854 Other Comprehensive expense Items that may be reclassified to profit and loss Foreign operations – foreign currency translation differences (862,212) (196,074) Total comprehensive income for the year 12,357,728 9,421,780 The accompanying notes from pages 86 to 120 form an integral part of these ﬁnancial statements.
82 2018 Annual Report The University of the South Pacific STATEMENT OF FINANCIAL POSITION For the Year Ended 31 December 2018 Current assets Cash and cash equivalents Term deposits Trade and other receivables Inventories Prepayments Non-current assets Property, plant and equipment Intangible assets Total assets Current liabilities Creditors and accruals Development assistance (projects) unexpended Provisions Deferred income Borrowings Non-current liabilities Provisions Deferred income Borrowings Total Liabilities Net assets Represented by: Funds and reserves Other contributed equity Endowment capital Retained earnings Foreign currency translation reserve Notes 15 15 13 12 14 17 18 21 21a 21b 21c 20 21b 21c 20 22a 22b 2018 $ 69,725,700 25,839,760 7,376,623 3,921,921 1,166,818 108,030,822 230,981,132 790,768 231,771,900 339,802,722 24,208,272 34,862,326 5,009,711 3,866,601 342,525 68,289,435 833,537 99,526,929 13,362,566 113,723,032 2017 $ 43,513,180 21,858,570 23,522,466 3,849,960 889,633 93,633,809 225,700,244 746,098 226,446,342 320,080,151 25,580,281 24,788,146 5,216,866 4,924,277 204,165 60,713,735 879,725 102,153,012 11,167,855 114,200,592 182,012,467 174,914,327 157,790,255 145,165,824 26,944,762 5,765,329 130,508,267 (5,428,103) 17,863,755 5,878,368 125,989,592 (4,565,891) 157,790,255 145,165,824 The accompanying notes from pages 86 to 120 form an integral part of these ﬁnancial statements.
83 2018 Annual Report The University of the South Pacific STATEMENT OF CHANGES IN FUNDS AND RESERVES For the Year Ended 31 December 2018 Notes Retained earnings Balance as at 1 January as previously reported Opening adjustment due to IFRS 9 adoption 2(d)(i) Balance as at 1 January as restated 2018 $ 125,989,592 (8,701,265) 117,288,327 13,219,940 2017 $ 116,371,738 - 116,371,738 9,617,854 130,508,267 125,989,592 Surplus for the year Balance at year end Endowment capital Balance at 1 January Foreign exchange (loss)/gain for the year Balance at year end Analysed as: Endowments – general Endowments – specific Total endowment capital Other contributed equity Balance at 1 January Movement during the year Balance at year end Foreign currency translation reserve Balance at 1 January Other comprehensive income Balance at year end 5,878,368 (113,039) 5,765,329 94,133 5,671,196 5,765,329 17,863,755 9,081,007 26,944,762 22 5,815,129 63,239 5,878,368 94,133 5,784,235 5,878,368 17,863,755 - 17,863,755 (4,565,891) (862,212) (4,369,817) (196,074) (5,428,103) (4,565,891) The accompanying notes from pages 86 to 120 form an integral part of these ﬁnancial statements.
84 2018 Annual Report The University of the South Pacific STATEMENT OF CASH FLOWS For the Year Ended 31 December 2018 Operating activities Recurrent activities Development assistance (recurrent) Government contributions Interest received Student tuition fees Commercial activities Other receipts Staff costs Other operating costs Net cash flows provided by recurrent activities Project activities Receipts from development assistance Staff costs Other operating costs Net cash flows provided by project activities Notes 2018 $ 2017 $ 28,796,776 52,821,913 1,047,380 84,032,556 13,137,986 7,704,631 29,003,580 30,597,574 1,438,084 71,545,210 14,598,504 7,375,410 187,541,242 154,558,362 (85,344,068) (73,976,400) (159,320,468) 28,220,774 27,618,799 (2,585,292) (12,461,039) (15,046,331) 12,572,468 (78,879,703) (62,847,155) (141,726,858) 12,831,504 20,552,920 (4,010,051) (17,715,861) (21,725,912) (1,172,992) Net cash provided by operating activities 16 40,793,242 11,658,512 Investing activities Payment for property plant and equipment - General Payment for property plant and equipment - Projects Net transfers to term deposits (12,749,761) (182,842) (3,981,190) (18,211,979) (248,745) (7,663,500) Net cash used in investing activities (16,913,793) (26,124,224) Financing Activities Proceeds from term loan, net Net cash flow provided by financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 January Net (decrease)/increase in cash and cash equivalents Effect of exchange rate fluctuations on cash held 2,333,071 2,333,071 2,440,223 2,440,223 26,212,520 (12,025,489) 43,513,180 28,296,184 (2,083,664) 55,538,669 (11,394,900) (630,589) 43,513,180 Cash and cash equivalents at 31 December 15 69,725,700 The accompanying notes from pages 86 to 120 form an integral part of these ﬁnancial statements.
85 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 1.

REPORTING ENTITY The University of the South Pacific was established by Royal Charter of the University in 1970.

It is a non-profit educational institution providing higher education to member regional countries, with its main operations domiciled in Fiji.

The registered office is at Laucala Bay Campus, Suva, Fiji.
The University is the provider of tertiary education in the Pacific region and an international centre of excellence for teaching, research and consulting on all aspects of Pacific life.

These financial statements were authorised for issue by the Finance and Investments Committee on 15 April 2019.

2.

SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied to the periods presented unless otherwise stated.

(a) Reporting period The financial statements are reported for the year from 1 January to 31 December 2018.

(b) Basis of measurement The financial statements are prepared on the basis of historical costs and do not take into account changing money values or current valuation of non-current assets.

The concepts of accrual method and going concern basis of accounting are applied.
The Finance and Investments Committee and officers of the University believe that the basis for preparation of the accounts is appropriate and that the University will be able to continue its normal operations in the next 12 months.

The Committee and the officers resolved that the classification and carrying amounts of assets and liabilities included in these accounts are appropriate.
(c) Functional and presentation currency The financial statements are presented in Fiji dollars which is the University's functional currency and rounded to the nearest dollar.

Foreign currency amounts in respect of all overseas regional campuses of the University have been converted to Fiji dollars based on note 1 (m).
(d) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and their interpretations issued by the International Accounting Standards Board (“IASB”).

New standards adopted by the university IFRS 9 ‘Financial Instruments’ The University has applied IFRS 9 for the first time for its annual reporting period commencing 1 January 2018.
IFRS 9 replaces the provisions of IAS 39 ‘Financial Instruments: Recognition and Measurement’ that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

The adoption of IFRS 9 resulted in changes in accounting policies and presentation.

The nature and effects of the key changes to the University resulting from its adoption of IFRS 9 are summarised below.
(i) Classification of financial assets and financial liabilities Management has assessed which business models apply to the financial assets held by the university and has classified its financial assets into appropriate IFRS 9 categories.

Refer to Note 2j for details on how the University classifies and measures its financial assets and liabilities.

86 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.
SIGNIFICANT ACCOUNTING POLICIES (continued) (d) Statement of compliance (continued) The following table shows the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the university’s financial assets as at 1 January 2018: Financial assets Measurement category Carrying amount Original (IAS 39) New (IFRS 9) Original New Difference* Cash and cash equivalents Loans and receivables Term deposits Loans and receivables Loans and receivables Trade and Other receivables Total Amortised cost Amortised cost Amortised cost $ $ 43,513,180 43,513,180 21,858,570 21,858,570 $ - - 23,522,466 14,821,201 8,701,265 88,894,216 80,192,951 8,701,265 * The difference noted in this column is the result of applying the new expected credit loss model.
The reclassification of the financial assets on adoption of IFRS 9 did not result in any change to measurements.

The adoption of IFRS 9 had no significant impact on the classification and measurement of the University’s financial liabilities.

(ii) Impairment of financial assets The University was required to revise its impairment methodology from an ‘incurred loss’ model in IAS 39 to an ‘expected credit loss’ model in IFRS 9.
The new impairment model applies to financial assets measured at amortised cost.
Reconciliation of impairment allowance balance from IAS 39 to IFRS 9 The following table reconciles the University’s prior period’s closing impairment allowance measured in accordance with the IAS 39 incurred loss model to the new impairment allowance measured in accordance with the IFRS 9 expected loss model at 1 January 2018: Measurement category Loss allowance under IAS 39 Re-measurement Loss allowance under IFRS 9 Cash and cash equivalents Term deposits $ - - $ - - $ - - Trade and other receivables 15,272,462 8,701,265 23,973,727 Total 15,272,462 8,701,265 23,973,727 IFRS 15 ‘Revenue from Contracts with Customers’ The University has adopted IFRS 15 from 1 January 2018.
Previously under IAS 18, the University recognised revenue when the amount of revenue could be reliably measured, it was probable that future economic benefits would flow to the University and when specific criteria have been met for each of the University’s activities.

Revenue comprised the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the University’s activities.
Such recognition continues to be the same under IFRS 15, as the company recognises revenue when (at a point in time) or as (over time) it satisfies a performance obligation by transferring the goods or services to its customer.

87 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.
SIGNIFICANT ACCOUNTING POLICIES (continued) (d) Statement of compliance (continued) Accordingly, management has assessed that such adoption did not result in changes in the timing of recognition and the quantification of revenue, and there are no adjustments to the amounts recognised in the financial statements.

However, the University has expanded its disclosures in accordance with IFRS 15 as detailed in Note 2(p).
New standard issued but not effective for the financial year beginning 1 January 2018 and not early adopted Effective Date Annual periods beginning on or after 1 January 2019 with earlier application permitted IFRS 15, if ‘Revenue from Contracts with Customers’, is also applied.

Topic Key Requirements IFRS 16, ‘Leases’ This standard replaces the current guidance in IAS 17 and is a far- reaching change in accounting by lessees in particular.
Under IAS 17, lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet).

IFRS 16 now requires lessees to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for virtually all lease contracts.

The IASB has included an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees.
For lessors, the accounting stays almost the same.

However, as the IASB has updated the guidance on the definition of a lease (as well as the guidance on the combination and separation of contracts), lessors will also be affected by the new standard.

At the very least, the new accounting model for lessees is expected to impact negotiations between lessors and lessees.
Under IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The University has yet to fully assess the impact of this standard and intends to adopt the standard no later than the accounting period in which it becomes effective.

(e) Basis of aggregation The financial statements of the overseas regional campuses and the book centre are aggregated in the University's financial statements.
Inter-entity transactions, balances and gains/losses on the transactions between the University entities are eliminated.

(f) Use of estimates and judgments The preparation of the financial statements in conformity with IFRS require management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported assets, liabilities, income and expenses.

Actual results may differ from these estimates.


Estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In particular significant areas of estimation uncertainty and critical judgments relate to impairment provisions for accounts receivable and inventories.
(g) Property, plant and equipment The policy of the University is not to revalue its property, plant and equipment.

In view of the specialised nature and wide geographical distribution of much of the University’s property and equipment, it is considered that the costs of any revaluation to reflect current values would outweigh the benefits to the users of these financial statements.
88 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.

SIGNIFICANT ACCOUNTING POLICIES (continued) (g) Property, plant and equipment (continued) The value of its property, plant and equipment is therefore either their value when originally incorporated within the University’s statement of financial position, or historical cost if acquired at a later date, less depreciation and impairment.
Items of property, plant and equipment, costing $2,000 or more are recognised as assets except for computers and air conditioners valued at $1,000 or more.

Items of property, plant and equipment costing less than $2,000 are expensed directly to profit or loss, except for computers and air conditioners valued more than $1,000 (other than where they form part of a group of similar items which are significant in total).
(i) Depreciation Property, plant and equipment, including buildings are recorded at cost and depreciated on a straight line basis over their estimated useful lives commencing from the time the asset is held and ready for use.

The estimated useful lives are as follows: • Used Motor vehicles and vessels 5 years; • New Motor Vehicles 10 years; • Buildings 50 years; • Equipment, furniture and fittings 10 years; • Freehold land not depreciated.
The depreciation applicable to donated assets is offset by a transfer from deferred income to profit or loss.

(ii) Impairment Property, plant and equipment are inspected by a Board of Survey when required.

If the inspection identifies that the carrying amount of the fixed asset is overstated, a provision is made for the impairment.

No such provisions have been found necessary at balance date.
(iii) Deferred income Property, plant and equipment acquired with the aid of specific grants are capitalised and depreciated in accordance with the above policy, with the related grant being credited to deferred income as a liability and released to profit or loss over the expected useful economic life of the related property, plant and equipment.
The exception to this is when the acquisition of property, plant and equipment is financed either through the University’s own funds, donated by member countries or a loan or finance lease.

(iv) Leased assets The University leases some property and equipment under operating leases.

The rentals are charged as an expense on a straight line basis over the term of the lease to profit or loss.
Assets held under leasing agreements which transfer to the University substantially all the benefits and risks of ownership of an asset are treated as if the asset had been purchased outright.

These are capitalised at their fair value at the inception of the lease and depreciated over the shorter of the lease term and the useful economic life of the assets.

The capital element outstanding is shown as obligations under finance leases.
The interest element of the lease payments is charged to profit or loss over the term of the lease.

(h) Intangible assets IT software IT software which is purchased, developed, or implemented, is recorded at historical cost and is amortised over its estimated useful life as follows: • Computer software 5 years.

89 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.
SIGNIFICANT ACCOUNTING POLICIES (continued) (i) Inventories Inventories are valued at the lower of cost and net realisable value.

Cost is determined on the first-in, first-out basis of valuation.

Only inventories which are purchased and controlled centrally have been reported within the financial statements.

Consumables purchased by the University for departmental use and held under the control of individual departments have been expensed in profit or loss at the time of purchase.
(j) Financial instruments Accounting policies applied starting from 1 January 2018 Financial assets (i) Classification The University classifies its financial assets in the following measurement categories: • those to be measured subsequently at fair value (either through profit or loss or through OCI); and • those to be measured at amortised cost.

The classification depends on the University’s business model for managing the financial statements and the contractual terms of the cash flows.
The University’s financial assets measured at cost consist of cash and cash equivalents, term deposits and trade and other receivables.

(ii) Recognition and measurement 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.
Financial assets are derecognised when the rights to receive cash flows from them have expired or where they have been transferred and the University has also transferred substantially all risks and rewards of ownership.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit or loss: • • it is held within a business model whose objective is to hold assets to collect contractual cash flows; and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets are subsequently measured at amortised cost using the effective interest method.

The amortised cost is reduced by any impairment losses.

Interest income, gains/(losses) arising from derecognition, foreign exchange gains/(losses) and impairment losses are recognised in profit or loss.

(iii) Impairment of financial assets The University assesses on a forward looking basis the expected credit losses associated with its financial assets measured at amortised cost.
The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Refer to note 3(i).
Financial liabilities (i) Classification and subsequent measurement In both the current and prior period, financial liabilities are classified as subsequently measured at amortised costs, except for: 90 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 • Financial liabilities arising from the transfer of financial assets which did not qualify for de-recognition, whereby a financial liability is recognised for the consideration received for the transfer.
In subsequent periods, the University recognises any expense incurred on the financial liability; and 2.

SIGNIFICANT ACCOUNTING POLICIES (continued) (j) Financial instruments (continued) • Financial guarantee contacts and loan commitments.

(ii) De-recognition Financial liabilities are derecognised when they are extinguished (i.e.

when the obligation specified in the contract is discharged, cancelled or expired).
The university also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.

On de-recognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
Accounting policies applied before 1 January 2018 Financial assets The University has applied IFRS 9 retrospectively, but has elected not to restate comparative information.

As a result, the comparative information provided continues to be accounted for in accordance with the company’s previous accounting policy.

There is a financial impact on the amount of the impairment as at 1 January 2018 from the change in policy in 2018 as detailed in Note 2 (d) (i).
(i) Classification The University classified its financial assets in the following categories: loans and receivables and held-to- maturity financial assets.

The classification depended on the purpose for which the financial assets were acquired.

Management determined the classification of its financial assets at initial recognition.

Loans and receivables were non-derivative financial assets with fixed or determinable payments that were not quoted in an active market.
They were included in current assets since their maturities were 12 months or less.

The university’s loans and receivables were comprised of cash and cash equivalents and trade and other receivables.

Held-to-maturity financial assets were non-derivative financial assets with fixed or determinable payments and fixed maturities that the Unversity’s management had the positive intention and ability to hold to maturity.

For the University, these comprised term deposit investments.
(ii) Recognition and measurement Regular purchases and sales of financial assets were recognised on trade-date – the date on which the University committed to purchase or sell the asset.

Financial assets were initially recognised at cost plus transaction costs that were directly attributable to their acquisition.

Loans and receivables and held-to-maturity investments were subsequently carried at cost less provision for impairment.
Financial assets were derecognised when the rights to receive cash flows from them had expired or where they had been transferred and the University had also transferred substantially all risks and rewards of ownership.

Interest income on held-to-maturity investments was included in profit or loss and was reported under finance income as interest income.
In the case of impairment, it was reported as a deduction from the carrying value of the investment and recognised in profit or loss as impairment on investment.

(iii) Impairment of financial assets The University assessed at each balance date whether there was objective evidence that a financial asset or 91 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.
SIGNIFICANT ACCOUNTING POLICIES (continued) (j) Financial instruments (continued) group of financial assets was impaired.
A financial asset or group of financial assets was impaired and impairment losses were incurred only if there was objective evidence of impairment as a result of one or more events that had occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) had an impact on the estimated future cash flows of the financial asset or group of financial assets that would be reliably estimated.
For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that had been incurred) discounted at the financial asset’s original effective interest rate.

The carrying amount of the asset was reduced and the amount of the loss was recognised in profit or loss.
(k) Trade receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment losses.

Trade receivables are written off when there is no reasonable expectation of recovery.

Indicators that there is no reasonable expectation of recovery include, amongst others, significant difficulties of the debtor and default or delinquency in payments.
Impairment losses on trade receivables are presented as a movement in the impairment provision within the surplus.

Subsequent recoveries of amounts previously written off are credited against the same line item.

Impairment losses are determined on an expected credit loss basis (Note 3(i)).
(l) Statement of cash flows The following are the definitions of the terms used in the statement of cash flows: Cash and cash equivalents Cash and cash equivalents comprise cash on hand, deposits held with banks, deposits held at call with banks, other short-term deposits with original terms of three months or less and are subject to an insignificant risk of change in value, and bank overdrafts.
(i) Operating activities Operating activities include all transactions and other events that are not investing or financing activities.

(ii) Investing activities Investing activities are those relating to the acquisition, holding and disposal of property, plant and equipment and investments.

Investments can include securities not falling within the definition of cash and cash equivalents.
(iii) Financing activities Financing activities are those that result in changes in the size and composition of the capital structure.

This includes both equity and debt not falling within the definition of cash and cash equivalents.
(m) Employee benefits (i) Short term benefits Provision is made for employee entitlements in respect of salaries and wages, annual leave, severance allowance and superannuation where the University has a legal or contractual obligation and is calculated as the amount unpaid as at reporting date at future expected pay rates.

All employee benefit related provisions, except for severance allowance, long service leave and gratuity of selected senior managers, are classified as a current liability.
Accrued leave is expected to be utilised in the following period.

92 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.

SIGNIFICANT ACCOUNTING POLICIES (continued) (m) Employee benefits (continued) (ii) Superannuation benefits The University contributes to a number of defined contribution superannuation schemes.
Contributions are made by employees and by the University as a percentage of salary or specified amounts as required by relevant agreements.

The cost to the University is charged as an expense to profit or loss.

The University's obligation is limited to these contributions.

(iii) Termination benefits Termination benefits are employee benefits that are payable as a result of an employee’s decision to accept voluntary redundancy in exchange for those benefits.
This is recognised as an expense in profit or loss as the obligation arises.

(n) Foreign currency transactions All foreign currency transactions during the period have been translated to Fijian currency using the exchange rate in effect at the dates of the transactions.

Foreign currency monetary assets and liabilities in foreign currencies at balance date are translated at the exchange rate existing at that date.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss in the financial period in which they arise.

Regional campuses The assets and liabilities of regional campuses are translated to Fijian dollars using the exchange rate as at year end.
The income and expenses of regional campuses are translated to Fijian dollars at average exchange rates.

Foreign currency differences are recognised directly in equity in the foreign currency translation reserve.

The functional currencies of the regional campuses are those of their respective countries.

(o) Income tax The University is exempt from income tax in accordance with the provision of Section 17 of the Fiji Income Tax Act.
(p) Revenue recognition Accounting policies applied starting from 1 January 2018 Revenue is measured based on the consideration specified in a contract with a customer.

The University recognises revenue when it transfers control over a product or service to a customer.

Revenue is presented net of value added tax, rebates and discounts.
Revenue is recognised in the financial statements for the major activities as follows: Revenue type Government grants Nature, timing of satisfaction of performance obligations and significant payment terms (if any) The University treats operating grants received from government contributions as revenue in the year of receipt or when entitlement to the grant is established.
Government grants in respect of capital expenditure are recognised initially as deferred revenue when there is reasonable assurance that it will be received and the University will comply with the conditions associated with the grant.

It is then recognised in profit or loss as income on a systematic basis over the useful life of the acquired asset.

Revenue is measured at the transaction prices (government grants) agreed under the government grants agreements.
93 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.

SIGNIFICANT ACCOUNTING POLICIES (continued) (p) Revenue recognition (continued) Revenue type Student tuition fees Development assistance Nature, timing of satisfaction of performance obligations and significant payment terms (if any) This consists of tuition fees for various courses offerred by the University.
The fees are dependent on the type of the courses and the level of study.

The University recognises all student tuition fees on enrolment of the courses and subsequently provides tuition services to ensure obligations are met.

Revenue is measured at the transaction prices as per university fees manual.

Payment term is 30 days.


Development assistance received for recurrent funding is recognised on the due date while development assistance received with specific end purposes is recognised as revenue when the conditions attached to the assistance have been met and performance obligation is satisfied.

Until those conditions are met, receipt of development assistance funds in advance is accounted for as deferred revenue and recognised as a liability.
Revenue is measured at the transaction prices (donor grants) agreed under the development assistance agreements.

Commercial activities Commercial activities represents revenue from book centre, computer shop, residential rentals, fitness centre, bar and ITC car park rentals.

Consultancy Revenue from commercial operations is recognised at the point of sale for goods, or as the service is performed.

An invoice is raised once the sale is completed or services rendered.
Revenue is measured at the transaction prices as per the invoice.

Payment term is 30 days.

Consultancy revenue is recognised as the services (consultancy) are provided and represents revenue earned from provision of professional services and project consultancy by unversity professionals for other organisations.

Revenue is measured at the transaction prices agreed under the consultancy agreement.

Payment term is 30 days.


Other income Other income represents income earned from lab hires, reprint of transcripts, reprint of ID cards and other similar services.

Rental income Other income is recognised on receipt except where a department of the University has arranged for a University invoice to be raised to a third party; the revenue associated with these invoices is recognised when the goods/services have been provided.

Revenue is measured at the transaction prices as per university fees manual.
Payment term is 30 days.

Rental income from operating leases is recognised as the services (rentals) are provided on a straight line basis over the lease term when they fall due and represents income earned from renting out the various properties held by the University, and is stated net of value added tax.

Revenue is measured at the transaction price agreed under the lease agreement.

Payment term is 30 days.


Interest income Interest income represents interest income earned on the term deposits based on the maturity and the interest rate and is recognised as income as it is accrued.

94 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 Accounting policies applied before 1 January 2018 (p) Revenue recognition 2.
SIGNIFICANT ACCOUNTING POLICIES (continued) (p) Revenue recognition (continued) Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the University’s activities.

Revenue is shown net of value added tax, rebates and discounts.
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 when specific criteria have been met for each of the University’s activities as described below.

The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved.
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.

Revenue is recognised in the financial statements for the major activities as follows: (i) Government grants The University treats operating grants received from government contributions as income in the year of receipt or when entitlement to the grant is established.
Government grants in respect of capex are recognised initially as deferred income when there is reasonable assurance that it will be received and the University will comply with the conditions associated with the grant.

It is then recognised in profit or loss as income on a systematic basis over the useful life of the acquired asset.

(ii) Student tuition fees The University recognises all student tuition fees on enrolment of the courses.
(iii) Development assistance Development assistance received for recurrent funding is recognised on the due date while development assistance received with specific end purposes is recognised as revenue when the conditions attached to the assistance have been met.

Until those conditions are met, receipt of development assistance funds in advance is accounted for as deferred revenue and recognised as a liability.
(iv) Commercial activities Revenue from commercial operations is recognised at the point of sale for goods, or as the service is performed.

(v) Consultancy Consultancy revenue is recognised as revenue when it is earned.

(vi) Other income Other income is recognised on receipt except where a department of the University has arranged for a University invoice to be raised to a third party; the revenue associated with these invoices is recognised when the goods/ services have been provided.
(vii) Rental income Rental income is recognised in profit or loss on a straight-line basis over the term of the lease for the various properties held by the University.

(viii) Interest income Interest income is recognised as it accrues.

95 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2.

SIGNIFICANT ACCOUNTING POLICIES (continued) (q) Endowment funds The University has established endowment funds for specific purposes.
The capital amount of such funds is maintained at its original nominal value.

The revenue generated through the investment of the capital is used in accordance with any conditions imposed by the Council, deed, gift or by the terms of the endowments or bequests.

Endowment funds are transferred to profit or loss only when it is no longer required for the purpose for which the fund was originally established.
(r) Commitment accounting The University operates a system of commitment accounting for its non-salary expenditure.

Expenditure is recognised when purchase orders are placed and charged against the appropriate cost centre.

At period end all expenditure in respect of goods and services not yet rendered is reversed.
(s) Trade creditors and accruals Liabilities for trade payables and other amounts are carried at amortised cost (inclusive of VAT/GST where applicable) which is the fair value of the consideration to be paid in the future for goods and services received whether or not billed to the University.

The University’s term in respect of its creditors is 30 days.

(t) Borrowings The University classifies non-derivative financial liabilities into borrowings.
Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs.

Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

Other financial liabilities comprise loans and borrowings, bank overdrafts, and trade and other payables.

Finance costs comprise interest expense on borrowings.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.

(u) Value Added Tax (VAT)/Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of associated VAT/GST, unless VAT/GST incurred is not recoverable from the tax authority.

In this case it is recognised as part of the cost of acquisition of the asset or part of the expense.
Receivables and payables are stated inclusive of the amount of VAT/GST, receivable or payable.

The net amount of VAT/GST recoverable from, or payable to, the Tax Authority is included in other receivables or payables in the statement of financial position.

Amounts charged to the provision account are written off when there is no expectation of recovery.
(v) Held-to-maturity financials assets Non-derivative financial assets with fixed or determinable payments and fixed maturities of more than three months are classified as held-to-maturity financial assets when the University has the positive intention and ability to hold it to maturity.

After initial measurement, these assets are measured at amortised cost.

Interest earned from these assets is recognised on an accrual basis.
(w) Comparative amounts Where the presentation or classification of items in the financial statements is amended / reclassified, comparable amounts shall also be reclassified unless reclassification is impracticable.

96 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 3.

FINANCIAL RISK MANAGEMENT The University has exposure to the following risks: (i) Credit risk; (ii) Liquidity risk; and (iii) Market risk.
The overarching policies and objectives of the University's treasury management activities are defined as being the 'management and control of its cash flows, banking, and investment transactions; the effective control of risks associated with those activities; and the pursuit of optimum performance consistent with those risks'.

The Finance and Investments Committee reviews and approves policies for managing each of these risks, which are summarised below.
(i) Credit risk The maximum exposure to credit risk at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of these assets, as disclosed in the statement of financial position and notes to the financial statements.
Movement in the allowance for impairment losses on trade and other receivables is summarized as follows: Balance at beginning of year Opening Adjustment IFRS 9 adoption Adjusted balance 1 January 2018 Reversal of impairment loss in 2018 Write-off Balance at end of year (Note 13) 2018 $ 15,272,462 8,701,265 23,973,727 (3,807,716) (1,140,183) 19,025,828 The opening adjustment at 1 January 2018 arose from the application of the new expected credit loss model and largely related to the overdue student debtors and development assistance receivables.
During 2018 the subsequent settlement of a number of receivables resulted in a reversal of a portion the provision previously made.

While cash and cash equivalents and term deposits are also subject to impairment requirements of IFRS 9, any impairment loss is deemed immaterial.

Expected credit loss assessment starting from 1 January 2018 The University applies the IFRS 9 simplified approach to measure expected credit losses for trade receivables.
To measure the expected credit losses, trade receivables have been grouped based on shared risk characteristics and the days past due.

The University uses the ‘net flow rate’ model based on the probability of trade receivables following the movement of cash outstanding from payment status of current through all delinquency buckets until write off.

Loss rates are based on historical credit losses experienced within this year.
These rates are then adjusted to reflect current and forward looking information based on macroeconomic factors and the University’s internal evaluation of trade receivables over their expected lives.

97 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 3.
FINANCIAL RISK MANAGEMENT (continued) (i) Credit risk (continued) The following table provides analysis about the exposure to credit risk and expected credit losses for trade and other receivables as at 31 December 2018: Expected weighted average loss rate Gross carrying amount Loss allowance $ 74,039 74,039 20,709 - 168,787 1,269,470 673,387 144,859 726,141 $ - - - - - 109,406 333,929 144,859 726,141 2,813,857 1,314,335 995,234 266,247 1,604,682 1,495,297 1,357,090 1,328,769 8,174,402 8,174,402 12,131,408 11,264,715 347 330 638 21,069 22,384 - 165 638 21,069 21,872 a.
Contribution due from governments 1 to 90 days past due 91 to 180 days past due 181 to 365 days past due More than 365 days past due Total b.
Trade debtors 1 to 90 days past due 91 to 180 days past due 181 to 365 days past due More than 365 days past due Total c. Student debtors 1 to 90 days past due 91 to 180 days past due 181 to 365 days past due More than 365 days past due Total d. Staff debtors 1 to 90 days past due 91 to 180 days past due 181 to 365 days past due More than 365 days past due Total 0% 0% 0% 0% 9% 50% 100% 100% 27% 93% 98% 100% 0% 50% 100% 100% 98 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 3.
FINANCIAL RISK MANAGEMENT (continued) (i) Credit risk (continued) Expected weighted average loss rate Gross carrying amount Loss allowance 0% 50% 100% 100% 5% 51% 100% 100% $ 28,891 32,680 - $ - 16,340 - 3,532,913 3,532,913 3,594,484 3,549,253 4,830,708 363,613 549,835 214,163 184,280 549,835 1,927,375 1,927,375 7,671,531 2,875,653 e. VAT/GST receivable 1 to 90 days past due 91 to 180 days past due 181 to 365 days past due More than 365 days past due Total f. Other debtors 1 to 90 days past due 91 to 180 days past due 181 to 365 days past due More than 365 days past due Total Total trade and other receivables 26,402,451 19,025,828 Comparative information under IAS 39 The credit quality of trade and other receivables can be summarised as follows: a.
Contribution due from governments Ageing of government contributions due: 0 to 90 days 91 to 180 days 181 to 365 days Total b.

Trade debtors Ageing of trade debtors due: 0 to 90 days 91 to 180 days 181 to 365 days 99 2017 $ 7,636,365 650,612 - 8,286,977 583,906 111,810 227,792 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 3.

FINANCIAL RISK MANAGEMENT (continued) (i) Credit risk (continued) b.
Trade debtors (continued) Between 1 and 2 years old Between 2 and 3 years old More than 3 years old Total c. Student debtors Ageing of student debtors due: 0 to 90 days 91 to 180 days 181 to 365 days Between 1 and 2 years old Between 2 and 3 years old More than 3 years old Total d. Staff debtors Ageing of Staff debtors due: 0 to 90 days 91 to 180 days 181 to 365 days Between 1 and 2 years old Between 2 and 3 years old More than 3 years old Total e. VAT/GST receivable Ageing of VAT/GST due: 0 to 90 days 91 to 180 days 181 to 365 days Between 1 and 2 years old Between 2 and 3 years old More than 3 years old Total 100 2017 $ 188,191 265,219 458,364 1,835,282 1,039,519 4,624,577 2,706,227 2,031,258 1,321,463 4,532,535 16,255,579 872 4,469 497 1,848 4,434 4,937 17,057 47,710 70,597 104,685 188,080 - 3,314,125 3,725,197 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 3.
FINANCIAL RISK MANAGEMENT (continued) (i) Credit risk (continued) f. Other Debtors Ageing of other debtors due: 0 to 90 days 91 to 180 days 181 to 365 days Between 1 and 2 years old Between 2 and 3 years old More than 3 years old Total Total trade and other receivables Movement in allowance for impairment losses: Balance at beginning of year Write offs Impairment losses adjustment recognised Balance at end of year 2017 $ 4,482,441 118,811 1,439,305 1,057,426 1,166,084 410,770 8,674,837 38,794,928 16,765,171 (1,969,172) 476,463 15,272,462 (ii) Liquidity Risk Liquidity risk refers to the risk of financial loss to the University as a result of insufficient funds being available to meet its short and long term liabilities.
The University has creditors and accruals which are all short term and hence have been classified as current liabilities in the statement of financial position.

The University manages liquidity risk by maintaining adequate cash and cash equivalent balances and borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Subventions within campuses or from the main Laucala campus to other campuses are carried out in order to maintain sufficient cash balances in all campuses for the funding of day-to-day operations.

The table below summarises the maturity profile of the University's financial liabilities based on contractual undiscounted payments.
Year ended 31 December 2018 0 to 3 months 3 to 12 months 1 to 5 years > 5 years Total Creditors and accruals 24,208,272 $ Borrowings 342,525 $ - - 101 $ - $ - 24,208,272 5,419,902 8,800,898 14,563,325 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2017 3.
FINANCIAL RISK MANAGEMENT (continued) (ii) Liquidity risk (continued) The table below summarises the maturity profile of the University's financial liabilities based on contractual undiscounted payments.
Year ended 31 December 2017 0 to 3 months 3 to 12 months 1 to 5 years > 5 years Total $ Creditors and accruals 25,580,281 Borrowings 204,165 $ - - $ - $ - 25,580,281 3,044,554 8,607,153 11,855,872 (iii) Market Risk Foreign currency risk Foreign currency risk refers to risk that the value of a financial commitment, recognised asset or liability will fluctuate due to changes in foreign currency rates.
The University's foreign currency exchange risk arises primarily from term deposits and trade receivables balances denominated in foreign currencies and transactions for receipts and payments settled in foreign currencies or with prices dependent on foreign currencies as well as transactions for regional campuses in various currency denominations.

The University manages this risk by maintaining off-shore bank accounts in its efforts to provide a natural hedge against currency exposures.
The following table demonstrates the sensitivity analysis to a reasonably possible change in the Australian dollar (AUD), New Zealand dollar (NZD), Solomon Island dollar (SBD), Japanese Yen (JPY) and Vanuatu Vatu (VUV) and United States Dollar (USD) exchange rate on the University’s surplus, with all other variables held constant: Increase / (decrease) AUD NZD 10% 3,923,735 2,034,268 Effect on surplus($) VUV 20,240 JPY 19,099 USD 423,651 -10% (3,923,735) (2,034,268) (20,240) (19,099) (423,651) 10% -10% 1,801,681 1,835,759 19,919 2,958 403,307 (1,801,681) (1,835,759) (19,919) (2,958) (403,307) 31-Dec-18 31-Dec-17 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 the changes in market interest rates relates primarily to the investment of surplus cash into at call or short term deposits as well as through finance lease, utilisation of bank overdrafts and borrowings.

Short-term investments are either rolled over at maturity at interest rates applicable on roll-over dates, or converted to operational use if the need arises at the time of maturity.

Interest on bank overdrafts is subject to changes in market interest rates.
The University does not have any fixed interest instruments at fair value through profit and loss and as such is not exposed to fair value movements due to change in interest rates.

Long-term investments are not feasible due to the nature of operations within the University, therefore, avoiding the risk of a cash flow mismatch or a liquidity shortfall.

102 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 3.
FINANCIAL RISK MANAGEMENT (continued) (iii) Market risk (continued) Lending Facilities - Debt, Refinancing and Granting Security The University ensures that its borrowing, private financing and partnership arrangements are negotiated, structured, documented and the maturity profile of the raised monies managed, with a view to obtaining competitive and favourable terms in light of market conditions prevailing at the time.
Prior to entering into or negotiating for any agreement to increase lending facilities (including leases) or re-finance the University's current borrowing arrangements, approval from the Finance and Investments Committee (FIC) must be obtained.
In raising capital finance, those with delegated authority will take account of: (i) the University's powers and rules and, in particular the University's Charter, Statutes, Regulations and Scheme of Financial Delegations; (ii) any legal or fiscal statutory restrictions; and (iii) the terms and covenants of borrowing.

All the borrowings of the University are at fixed rates of interest.

Increase / (decrease) Effect on Surplus Financial assets Term deposits Financial liabilities Borrowings 1% -1% 1% -1% 4.
GOVERNMENT CONTRIBUTIONS Cook Islands Fiji Kiribati Marshall Islands Nauru Niue Samoa Solomon Islands Tokelau Tonga Tuvalu Vanuatu 2018 $ 20,791 (20,791) 2,597 (2,597) 2017 $ 12,452 (12,452) (1,828) 1,828 2018 $ 2017 $ 173,964 32,354,158 944,380 296,154 107,692 51,775 1,464,204 3,052,667 43,491 1,105,921 424,555 2,276,039 147,917 30,217,468 778,009 265,099 69,156 48,025 1,256,340 2,739,358 28,815 979,715 307,361 1,944,061 42,295,000 38,781,324 103 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2018 2017 Student Grant Campus Grant Student Grant Campus Grant $ $ $ $ 4a.
GOVERNMENT CONTRIBUTIONS BY CATEGORY Cook Islands Fiji Kiribati Marshall Islands Nauru Niue Samoa Solomon Islands Tokelau Tonga Tuvalu Vanuatu 97,337 76,627 76,840 71,077 14,478,852 17,875,306 13,502,770 16,714,698 786,983 82,840 37,278 4,142 621,303 2,661,246 43,491 836,690 374,851 157,397 213,314 70,414 47,633 842,901 391,421 - 269,231 49,704 655,064 88,366 17,289 5,763 555,172 2,431,997 28,815 743,431 261,257 1,122,487 1,153,552 1,023,898 122,945 176,733 51,867 42,262 701,168 307,361 - 236,284 46,104 920,163 21,147,500 21,147,500 19,390,662 19,390,662 Revenue is recognised over time as the obligations are met on a yearly basis.
5.

STUDENT TUITION FEES Regional students International students Pacific TAFE Republic of Marshall Islands (RMI) Master of Business Administration Others 5a.
STUDENT TUITION FEES BY SPONSOR Private Students Private Sponsored Government Sponsored USP Sponsored 2018 $ 57,223,665 2,085,509 59,309,174 2017 $ 53,834,625 2,231,374 56,065,999 16,455,531 12,861,938 140,365 2,265,212 1,237,882 453,495 1,216,921 1,908,295 79,408,164 72,506,648 33,015,150 952,140 45,346,321 94,553 31,253,891 1,653,054 39,521,740 77,963 79,408,164 72,506,648 The University recognises all student tuition fees on enrolment of the courses and subsequently provides tuition services to ensure obligations are met (over time).
104 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 6.
DEVELOPMENT ASSISTANCE Australia - Recurrent - Projects New Zealand - Recurrent - Projects European Union Japan Other Partners 2018 $ 2017 $ 21,675,162 21,767,167 4,693,898 7,121,614 774,728 2,002,959 3,638,438 5,094,989 6,253,187 7,236,414 272,079 3,235,500 5,008,533 4,648,350 45,001,788 48,421,230 The University recognises development assistance revenue when the conditions attached to the assistance have been met and performance obligation is satisfied (at a point in time).

7.
7.

COMMERCIAL ACTIVITES Book centre Computer shop Residential/Housing rental income • Laucala • Emalus • Alafua Gymnasium and Community Recreation Centre ICT Park rentals Other rental Others 6,039,427 478,114 4,895,745 726,009 4,900,152 4,748,642 671,932 263,206 713,026 281,403 12,352,831 11,364,825 914,104 - 378,494 471,133 859,421 60,000 276,579 229,493 14,116,562 12,790,318 Revenue from commercial operations is recognised at the point of sale for goods, or as the service is performed.

7a.
7a.

CONSULTANCY INCOME Professional services and project consultancies • IAS • Other Training and teaching Other The University recognises consultancy revenue as the services (consultancy) are provided.

105 394,867 2,876,224 274,388 560,326 439,945 1,389,251 430,019 96,900 4,105,805 2,356,115 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 8.
OTHER INCOME Administration cost recovery Course material and text book sales Faculty and support units' income ITS domain name registration Laboratory income Miscellaneous student activities Other income The University recognises other income when the goods/services have been provided.

9.

RELEASE OF DEFERRED REVENUE Depreciation and amortisation charge for the year Less: charge on items acquired through normal operating activities Release of deferred revenue liability - depreciation 10.
PERSONNEL COSTS Academic and comparable staff Intermediate and junior staff Hourly paid staff Provision for leave entitlement Senior management Staff numbers (including part-time staff) by category Academic and comparable staff Intermediate and junior staff Hourly paid staff Senior management Total staff numbers Annualised taxable emoluments for staff paid $100,000 or more $100,000 - $119,999 $120,000 - $139,999 $140,000 - $159,999 $160,000 - $179,999 $180,000 - $199,999 $200,000 - $219,999 106 2018 $ 2017 $ 285,344 715,067 2,106,870 172,841 1,498,038 2,003,328 2,063,075 8,844,563 446,960 1,081,323 1,249,735 190,771 1,499,308 1,559,890 3,602,913 9,630,900 9,898,639 (6,032,038) 14,032,413 (9,108,136) 3,866,601 4,924,277 57,922,464 18,916,659 6,598,370 (207,155) 3,495,655 56,931,482 16,082,429 6,158,523 (238,398) 2,781,911 86,725,993 81,715,947 638 642 240 11 616 639 249 9 1,531 1,513 83 41 16 13 8 4 72 31 12 6 6 7 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 10.
STAFF COSTS (CONTINUED) Annualised taxable emoluments for staff paid $100,000 or more (continued) $220,000 - $239,999 $240,000 - $259,999 $260,000 - $279,000 $280,000 - $299,000 Above $300,000 11.
OPERATING COSTS Cost of sales Travel and related expenses – University related Travel and related expenses – Projects related Student – research related expenses Student – support related expenses Grounds and maintenance Consultancy expenses Utilities Telecommunications Library resources Staff recruitment and passages Printing and stationery Insurance premiums Computer software and hardware Workshop expenses Advertising Hospitality / expenditure on meetings Teaching materials Medical expenses Rental expense Equipment purchase Freight and courier charges Operating costs - strategic plan Sub-total Other items of expenditure Fees paid to auditors: External audit - audit of financial statements Audit of projects Internal audit 107 2018 $ 3 2 1 2 11 184 6,446,744 5,363,035 1,456,549 12,069,277 2,022,059 6,886,559 6,648,033 5,078,963 5,598,385 2,492,489 1,085,355 2,240,821 2,809,516 3,183,433 791,293 2,699,837 1,321,075 2,685,127 1,919,413 2,452,451 1,230,723 816,769 - 77,297,906 5,803,171 60,280 20,601 127,500 2017 $ 2 4 1 - Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 2018 $ 37,625 21,750 20,500 2017 $ 21,500 23,500 17,491 83,389,334 84,030,217 11.
OPERATING COSTS (CONTINUED) Honorarium: Council Audit and risk committee Finance and investments committee Total operating costs 12.
INVENTORIES Balance at 1 January 2017 Additions Expensed Goods and Publications Academic Gowns Maintenance Catering and Domestic Total $ $ $ $ $ 3,233,364 3,436,652 901,776 316,471 51,157 12,592 3,069 4,189,366 20,085 3,785,800 (3,807,532) (212,745) (63,438) (3,069) (4,086,784) Impairment reversal (31,087) (7,335) Cost or valuation at 31 December 2017 2,831,397 998,167 Balance at 1 January 2018 2,831,397 998,167 Additions Expensed 3,579,095 1,625 (3,429,933) 136,644 Impairment charge (196,679) (7,076) - 311 311 - - - - (38,422) 20,085 3,849,960 20,085 3,849,960 8,370 3,589,090 (20,085) (3,313,374) - (203,755) Cost or valuation at 31 December 2018 2,783,880 1,129,360 311 8,370 3,921,921 Analysis of value of inventories Total cost of inventories Less: provision for obsolescence Cost or valuation at year end Analysis of goods and publications: Book centre - inventory Book centre - goods in transit Regional campuses - books Regional campuses - course materials Institute of Education Institute of Research Extension & Training Agriculture Less: provision for obsolescence Cost or valuation at year end 108 2018 $ 2017 $ 4,481,048 (559,127) 4,205,332 (355,372) 3,921,921 3,849,960 1,193,967 117,064 1,291,667 360,139 77,942 267,031 3,307,810 (523,930) 2,783,880 1,445,088 352,393 710,154 243,425 77,770 329,818 3,158,648 (327,251) 2,831,397 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 13.
TRADE AND OTHER RECEIVABLES Government contributions Trade debtors Student debtors Staff debtors VAT / GST receivable Other debtors Less: allowance for impairment losses 13a.

CONTRIBUTION DUE FROM GOVERNMENTS Notes 13a 13b 13c 13d 13e 13f 3(i) Fiji Marshalls Vanuatu Niue Overpayments by member countries are classified as creditors and accruals.

13b.
13b.

TRADE DEBTORS Alafua campus Emalus campus and book centre Tonga campus (IOE) Laucala campus - Commercial - Others Less: allowance for impairment losses 3(i) 13c.
STUDENT DEBTORS Alafua Emalus Laucala Other regional campuses Less: allowance for impairment losses 3(i) Write-off of student debts 109 2018 $ 2017 $ 168,787 2,813,857 8,286,977 1,835,282 12,131,408 16,255,579 22,384 3,594,484 7,671,531 17,057 3,725,197 8,674,836 26,402,451 38,794,928 (19,025,828) (15,272,462) 7,376,623 23,522,466 - 168,787 - - 8,194,193 92,784 - - 168,787 8,286,977 233,934 396,884 15,650 17,082 239,406 374,640 16,379 41,328 2,150,307 1,163,529 2,813,857 (1,314,335) 1,499,522 578,668 2,820,363 2,213,791 6,518,586 12,131,408 (11,264,715) 1,835,282 (1,195,471) 639,811 891,258 3,661,322 4,945,769 6,757,230 16,255,579 (8,963,153) - (1,969,172) 866,693 5,323,254 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 Notes 2018 2017 13d.
STAFF DEBTORS Laucala Other regional campuses Less: allowance for impairment losses 3(i) 13e.

VAT/GST RECEIVABLE Alafua book centre Laucala book centre Less: allowance for impairment losses 3(i) 13f.
OTHER DEBTORS Development assistance partners (projects) Interest receivable Other debtors (Bonds & Security Deposits) Less: allowance for impairment losses 3(i) $ - 22,384 22,384 (21,872) 512 $ - 17,057 17,057 (13,951) 3,106 695,855 2,898,629 3,594,484 (3,549,253) 837,916 2,887,281 3,725,197 (2,727,831) 45,231 997,366 3,582,943 674,563 3,414,025 7,671,531 (2,875,653) 6,529,774 408,389 1,736,673 8,674,836 (402,884) 4,795,878 8,271,952 Amounts charged to the provision account are written off when there is no expectation of recovery.
14.

PREPAYMENTS Alafua Laucala Laucala book centre Solomon 15.
CASH AND CASH EQUIVALENTS AND TERM DEPOSITS Cash and cash equivalents • Current Accounts • Term deposits (3 months or less) • Cash on hand and petty cash Term deposits (between 3 to 12 months) Total 110 - 1,138,075 19,862 8,881 1,166,818 - 848,411 29,999 11,223 889,633 21,998,817 47,704,720 22,163 20,467,785 22,989,766 55,629 69,725,700 43,513,180 25,839,760 21,858,570 95,565,460 65,371,750 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 15a.
WHERE HELD In Fiji With other regional banks In other overseas accounts 15b.

COMPRISING: University funds Development assistance (projects) Endowment funds Notes 2018 $ 2017 $ 31,963,127 21,540,505 42,061,828 22,245,613 17,305,354 25,820,783 95,565,460 65,371,750 54,937,805 34,862,326 5,765,329 34,705,236 24,788,146 5,878,368 95,565,460 65,371,750 Development assistance (projects) and Endowment funds are restricted and are not available for the University’s recurrent expenditure.

15c.
15c.

THE TERM DEPOSITS ARE DENOMINATED IN THE FOLLOWING CURRENCIES BUT STATED IN FIJIAN DOLLARS: Fijian Dollars Australian Dollars New Zealand Dollars Japanese Yen United States Dollars Vanuatu Vatu 9,334,522 39,237,358 20,342,697 190,990 4,236,510 202,403 4,212,072 18,016,813 18,357,618 29,577 4,033,071 199,185 73,544,480 44,848,336 Cash and cash equivalents denominated in other currencies are exposed to foreign currency risk.

16.
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO STATEMENT OF COMPREHENSIVE INCOME Surplus for the year 13,219,940 9,617,854 Adjustments to income and expenditure: Release of deferred revenue Depreciation and amortisation Movement in provision for doubtful debts Reversal of impairment loss Loss on disposal of assets due to fire Write-off student debts Provision for leave entitlement Write down/(reversal) in value of inventories Net cash from operating activities before changes in assets and liabilities (3,866,601) 9,898,639 - (3,807,716) 6,972,254 (1,140,183) (207,155) 203,755 (4,924,277) 14,032,413 476,463 - - (1,969,172) (238,398) 38,422 21,272,933 17,033,305 (Increase)/Decrease in inventories (275,716) 300,984 111 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 Notes 2018 $ 2017 $ 16.
RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO STATEMENT OF COMPREHENSIVE INCOME (CONTINUED) Decrease /(Increase) in accounts receivable 12,392,476 (8,345,105) (Increase)/Decrease in prepayments Increase/(Decrease) in development assistance (projects) (Decrease)/Increase in creditors (Decrease) in foreign currency translation reserve (277,185) 10,074,180 (1,531,234) (862,212) (686,575) 346,661 3,205,316 (196,074) Net cash provided by normal activities 40,793,242 11,658,512 17.
PROPERTY, PLANT AND EQUIPMENT Property Equipment and Furniture Vehicles and Vessels Work in Progress Total $ $ $ $ $ Cost Deemed cost at 1 January 2017 246,176,561 51,449,854 3,904,582 10,188,512 311,719,509 Additions Disposals 4,830,428 7,712,570 227,123 5,921,711 18,691,832 - - (377,851) - (377,851) Transfers between asset classes 1,375,332 1,166,652 - (2,541,984) - Deemed cost at 31 December 2017 252,382,321 60,329,076 3,753,854 13,568,239 330,033,490 Reclassification to intangible assets (55,600) (55,600) Additions Disposals 8,745,524 6,070,217 233,925 7,017,077 22,066,743 (12,035,706) (2,003,083) - - (14,038,789) Transfers between asset classes 789,520 - (789,520) - Deemed cost at 31 December 2018 249,881,659 64,340,610 3,987,779 19,795,796 338,005,844 Accumulated depreciation Accumulated depreciation at 1 January 2017 51,269,763 36,909,672 2,824,714 Charge for the year 5,776,166 7,547,207 383,575 Disposals - - (377,851) Accumulated depreciation at 31 December 2017 57,045,929 44,456,879 2,830,438 Reclassification to intangible assets 20,441 Charge for the year 5,384,512 4,164,941 186,900 Disposals (5,819,220) (1,246,108) - Accumulated depreciation at 31 December 2018 56,611,221 47,396,153 3,017,338 112 - - - - - - - 91,004,149 13,706,948 (377,851) 104,333,246 20,441 9,736,353 (7,065,328) 107,024,712 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 Property Equipment and Furniture Vehicles and Vessels Work in Progress Total $ $ $ $ $ 17.
PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Net carrying amount at 1 January 2017 194,906,798 14,540,182 1,079,868 10,188,512 220,715,360 Net carrying amount at 31 December 2017 Net carrying amount at 31 December 2018 195,336,392 15,872,197 923,416 13,568,239 225,700,244 193,270,438 16,944,457 970,441 19,795,796 230,981,132 Property and equipment addition in 2018 include assets of $9,081,077 regarding the Nauru Campus that were donated by the Government of Nauru and which is accounted for as an equity contribution by a member country (Note 22(a)).
Property and equipment disposal for 2018 include the de-recognition of assets with a carrying value of $6,972,254 that were lost due to fire in November 2018.

The building was insured and the claims from insurance will be recognised as revenue when received.

The University is currently assembling the details to be able to make a claim for recovery of the loss under its insurance arrangements.
Work in progress Work in progress relates to costs for property-related projects where the project has not been completed.

The costs will be capitalised once all major items of expenditure, other than the payment of retention monies, have been incurred and the asset is put into service.
Carrying amount of work in progress projects Continuing from prior years Improve campus infrastructure and developments IT equipment installation Lab equipment installation Improve recreational space and campus life Lautoka Campus New Entrance Road Construction Marshall Islands Campus Solomon Islands Campus 12th Hall Road Upgrade 113 2018 $ 2017 $ 9,253,241 3,993,171 1,263,293 81,195 16,933 387,657 - 4,862,212 3,239,460 850,583 52,304 16,933 123,677 789,520 2,309,961 2,016,052 848,087 663,780 451,283 556,000 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 17.
PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Carrying amount of work in progress projects (continued) GIS Lab Lecture Capture New Projects in 2018 Confucius Institute Tuvalu Campus 2018 $ 2017 $ 269,168 341,047 277,358 341,047 299,151 60,922 Reconciliation of fixed assets to related accounts Carrying amount of property, plant and equipment at 31 December 230,981,132 225,700,244 19,795,796 13,568,239 This carrying amount has been funded from the following: Deferred income Other contributed equity from member countries Carrying amount of properties acquired directly or through loans: Statham street Campus Services complex Residential block Student Accommodation Kiribati Campus Solomon Islands Campus - WIP Lautoka Campus – WIP From operating activities 18.
INTANGIBLE ASSETS Deemed cost at 1 January 2017 Additions Deemed cost at 31 December 2017 Reclassification from equipment Additions Deemed cost at 31 December 2018 Amortisation and impairment At 1 January 2017 Amortisation Amortisation at 31 December Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 18.
INTANGIBLE ASSETS (CONTINUED) Amortisation and impairment (Continued) Reclassification from equipment Amortisation Amortisation at 31 December 2018 Net carrying amount at 1 January 2017 Net carrying amount at 31 December 2017 Net carrying amount at 31 December 2018 This comprises IT Software costs.
19. FINANCING FACILITIES 2018 $ 2017 $ (20,441) 162,286 1,742,676 1,053,926 746,098 790,768 The University has access to overdraft facilities of $5,000,000 (December 2017: $5,000,000) with various banks across the region for which all conditions precedent have been met.

As at 31 December 2018: nil (December 2017: nil) was utilised.

Cash at bank earns interest at floating rates based on daily bank deposit rates.
The carrying amount of cash and cash equivalents as at 31 December 2018 is $69,725,700 (December 2017: $43,513,180).

Held-to-maturity financial assets as at 31 December 2018 is $25,839,760 (December 2017: $21,858,570).

20.

BORROWINGS Fiji National Provident Fund Loan (FNPF) Asian Development Bank Loan (ADB) Amortisation at 31 December 2018 Disclosed in the financial statements as follows: Current Non-current 19a.
Fiji National Provident Fund Loan December 2018 December 2017 $ 4,904,193 8,800,898 $ 2,764,867 8,607,153 13,705,091 11,372,020 342,525 13,362,566 204,165 11,167,855 13,705,091 11,372,020 The University entered into a loan agreement of $7.0m with FNPF to construct the 11th Hall for student accommodation at the Laucala Campus.

The loan is to be repaid within 15 years of the first drawdown with the interest rate being fixed at 3.5% for 5 years.
The interest rate at each of the next lot of 5 year intervals will be 0.5% less than the 5 year Fiji Infrastructure Bond rate applicable at that time.

19b.

Asian Development Bank Loan The University entered into a loan agreement with ADB of SDR 2,336,000 to construct the Kiribati Campus.

The loan is to be paid off between December 2020 and May 2046 with the applicable interest rate being 1% during the grace period and 1.5% thereafter.
115 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 20.

BORROWINGS (continued) The University entered into another loan agreement with ADB of SDR 10,973,000 to construct the Solomon Islands Campus.

The loan is to be paid off between December 2024 and June 2048 with the applicable interest rate being 1% during the grace period and 1.5% thereafter.

As of 31 December 2018, SDR 642,135 had been utilised.

21.
21.

CREDITORS AND ACCRUALS Member countries' contributions received in advance Other creditors and accruals Research funds Payroll creditors Student creditors Student fees received in advance Trade creditors 21a.
DEVELOPMENT ASSISTANCE (PROJECTS) UNEXPENDED Australia NZ EU Japan Others 2018 $ 2017 $ 3,433,736 5,183,476 5,424,570 2,141,465 498,124 1,920,218 5,606,683 1,025,013 9,707,774 5,531,468 3,091,487 488,279 1,429,842 4,306,418 24,208,272 25,580,281 6,543,994 5,353,972 5,966,811 3,561,061 6,309,471 2,801,987 883,733 480,645 13,436,488 14,312,310 34,862,326 24,788,146 Development assistance (projects) funds are from development partners and are appropriated for a variety of purposes ranging from research, scholarship, community outreach and capital developments.
21b.

PROVISIONS Current Provision for annual leave Balance at 1 January Movement during the year Balance at 31 December 5,216,866 (207,155) 5,455,264 (238,398) 5,009,711 5,216,866 Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after reporting date.
Non-current Provision for severance allowance Balance at 1 January Additional provision during the year Paid during the year Balance at 31 December 879,725 16,310 (62,498) 833,537 975,085 38,441 (133,801) 879,725 116 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 21c.
DEFERRED INCOME Balance at 1 January Additions during the year Release during the year – depreciation Release during the year – disposal Balance at year end (i) Disclosed in the financial statements as follows: Current Non-current 22.
CAPITAL AND RESERVES (a) Other contributed equity 2018 $ 2017 $ 107,077,289 111,752,821 184,049 248,745 (3,866,601) (4,924,277) (1,207) - 103,393,530 107,077,289 3,866,601 4,924,277 99,526,929 102,153,012 103,393,530 107,077,289 The amount reflects the cost of assets donated by member countries in its capacity as the owners of the University.

Contributions received during the year were from Government of Nauru whereby a new Nauru Campus was donated.
(b) Foreign currency translation reserve This reserve represents the resultant exchange gain/loss arising from the translation of all overseas campus balances on aggregation.

23.

COMMITMENTS 23a.


OPERATING LEASE COMMITMENTS The commitments in respect of leased assets are as follows: Not later than one year Later than one year and not later than five years 2018 $ 2017 $ 237,505 - 847,766 237,505 237,505 1,085,271 The University has an operating lease with Fuji Xerox Fiji for the provision of managed multi-function device services.

The minimum monthly lease payments of $39,912 for six months are subject to adjustments based on actual utilisation.

23b.
23b.

CAPITAL COMMITMENTS In addition to the amounts reported in the financial statements, the University has a capital commitment of $11,456,252 for various projects not yet started and asset purchases for which the items had not been received or paid for.

This balance was not been recognised as a liability at balance date.

117 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 24.
CONTINGENT ASSETS AND LIABILITIES Contingent liabilities The University's contingent liabilities are estimated to be: Fiji Electricity Authority - guarantees given FRCA - customs bond - guarantees given Ministry of Infrastructure and Transport - guarantees given Ministry of Fisheries and Forest - guarantees given 2018 $ 2017 $ 158,857 158,857 31,000 31,000 743,963 151,956 743,963 151,956 VAT on contributions received from Fijian Government (1992 - 2007) 39,802,087 39,802,087 Contingent assets VAT on Fijian Government contributions (1992 - 2007) 39,802,087 39,802,087 40,887,863 40,887,863 The Fiji Revenue Customs Authority (FRCA) advised in a letter dated June 2007 that the University may be liable to pay VAT on contributions received from the Government of Fiji since 1992.
The University had made an effort in 2009 to close the matter with FRCA, but no reply or any formal assessment has been issued by FRCA since the University’s last communication dated 20 October 2009.

Accordingly, no provision for liability has been made in the financial statements.

Agreements with the Government of Fiji subsequent to 2007 specify that contribution amounts are exclusive of VAT.

The University claims Government contributions on a VAT exclusive basis.
In the event that the tax liability is considered probable, the University would make a claim for the short fall in payment of contributions and recognise a receivable amount to the value of the potential tax liability.

Legal claim contingency There are various legal claims and trade disputes pending against the University as at balance date.

The University considers these claims, arising in the normal course of business, to be immaterial and mostly spurious.
No amounts have been provided in relation to any of these matters.

25.

RELATED PARTIES The University is controlled by 12 member countries comprising Fiji, Tuvalu, Tonga, Solomon Islands, Samoa, Republic of Marshall Islands, Nauru, Niue, Cook Islands, Vanuatu, Kiribati and Tokelau.

During the period the University received grants of $42,295,000 (refer to note 4), amounts receivable amounted to $168,787 (2017: $8,286,977) and contributions received in advance amounted to $3,433,736 (2017: $1,025,013).
Key management personnel disclosures (a) Names of responsible persons and senior management team The following persons were responsible persons and senior management team of the University during the period.

All members of the University council were appointed or elected under the provisions of the University Charter.

Council members include the University employees who may be ex-official members or elected staff members.
(i) University Council Members Mr Winston Thompson, Pro-Chancellor & Chair of Council Professor Rajesh Chandra, Vice-Chancellor & President Hon Henry Puna, Prime Minister & Minister for Education, Cook Islands Hon.

Wilbur Heine, Minister for Education, Marshall Islands 118 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 Key management personnel disclosures (i) University Council Members (continued) Hon.
Charmaine Scotty, Minister for Education, Nauru Hon.

Billy Talagi, Minister for Education, Niue Hon.

John Deane Kuku, Minister for Education, Solomon Islands Hon.

Fauoa Maani, Minister for Education, Tuvalu Hon.

Penisimani ‘Epenisa Fifita, Minister for Education, Tonga Hon.

Jean Pierre Nirua, Minister for Education, Vanuatu Hon.

David Collins, Minister for Education, Kiribati Hon.

Fano Mativa, Minister for Education, Tokelau Hon.


Loau Keneti Sio, Minister for Education, Samoa Mr Iulai Lavea, Chief Executive Officer, Ministry of Finance, Samoa Hon.
Aiyaz Sayed-Khaiyum Minister for Education, Heritage & Arts, Fiji Ms Alison Burchell, Permanent Secretary for Education, Fiji Ms Makereta Konrote, Permanent Secretary for Economy, Fiji Ms Fay Yee, Fiji Mr Iowane Naiveli, Fiji – till 31 October 2018 Professor (Emeritus) Sally Ann Walker, AM, Government of Australia Mr Steve Maharey Government of New Zealand Ms Cristelle Pratt, Deputy Secretary General, Pacific Island Forum Secretariat Professor Konai Helu Thaman, Senate rep – till 19 October 2018 Professor Surendra Prasad – from 20 October 2018 Professor Sushil Kumar, Senate Rep Mr. Emosi Vakarua USPSA (student rep) Mr Eggo Soriano, USPSA (student rep) Dr Krishna Raghuwaiya, Staff rep Dr Morgan Tuimaleali’fano – till 21 September 2018 Dr Robin Havea - from 29 October 2018 Dr Kabini Sanga Mr Digby Bossley Ms Kate Vusoniwailala Ms Lorna A. Johansson, Deputy Pro-Chancellor and Deputy Chair.
Also Co-opted member Ms Petunia Tupou Ms Martha Henry Mr Semi Tukana 119 2018 Annual Report The University of the South Pacific NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2018 (ii) Senior management team Professor Rajesh Chandra, Vice-Chancellor and President Dr Giulio Paunga, Vice President (Regional Campuses and Properties and Facilities) Professor Richard Coll, Deputy Vice-Chancellor (Learning and Teaching) Professor Derrick Armstrong, Deputy Vice-Chancellor (Research and International) Dr Akanisi Kedrayate, Dean, Faculty of Arts, Law and Education Dr Anjeela Jokhan, Acting Vice-President (Planning, Quality & Digital Services) Dr Bibhya Sharma, Acting Dean, Faculty of Science, Technology and Environment Professor Arvind Patel, Acting Dean, Faculty of Business and Economics Kolinio Boila, Executive Director Finance (b) Remuneration of Council Members and Senior Management Team Remuneration of Council members $10,000 - $19,999 $20,000 - $29,999 2018 $ 3 1 Refer to note 9 and 10 for details of council members and senior management team remuneration.
Remuneration of Council members $160,000 - $179,999 $180,000 - $199,999 $200,000 - $219,999 $220,000 - $239,999 $240,000 - $259,999 $260,000 - $279,999 Above $300,000 - 1 - 1 - - 7 9 2017 $ 3 1 - 1 1 1 1 1 4 9 The University is not aware of any material transactions that may have been conducted with Council members of the University.
Transactions are at arm's length and on terms and conditions no more favourable than those which it is expected the University would have adopted for a normal employee, customer or supplier relationship.

(c) Key management personnel compensation Short term employee benefits Termination benefits 3,495,655 2,781,911 - - 3,495,655 2,781,9119 26.
EVENTS SUBSEQUENT TO YEAR END There has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely to affect significantly the operations of the University, the results of those operations or the state of affairs of the University in subsequent periods.

120 2018 marks The University of the South Pacific’s 50 years of existence, and a one-of-a-kind logo and theme was created to celebrate this milestone.
The annual report follows the 50th anniversary theme which highlights the role that the University has played in helping shape the future of the Pacific region, and especially towards the development and training of outstanding Pacific leaders over the past 50 years.

The placements of the old photos with the new visually show how far the University has come from then until now.

By honouring the past, USP can help shape the futures of the Pacific Island people it faithfully continues to serve.