ANNUAL REPORT2019
Te Pūrongo ā-Tau

Kōrihi atu taku manu tāwhiowhio ki te tini,

My navigation bird cries out,

Ki te mano o Hākuturi

To the multitudes, to the forest guardians, to the

Aku manu honenga aku manu whitirua ki te kai ki teesteemed, to the gathered,inu i ngā wai o Horotiu

Come and feast, quench thy thirst in the waters of

Whakatau iho rā ki te roro o te whare nanao atu ai ki

Horotiu,ngā here Pūrengi

Come, rest on the balcony of my meeting house, grasp

Tēnā koutou, tēnā koutou, tēnā koutou katoa.

tightly to the lashings of Te Pūrengi,
Welcome one and all.

Ko te karanga nei o Te Pūrengi, he tono ki ngāpononga o te kuranui kaimahi mai, pouako mai kia

The call of Te Pūrengi is a call to all staff and educators

whakamaua te pūrengi kia tere ai te waka ki ngāalike to grasp the metaphorical rope of the mast, seekmātāhauariki o te māramatanga.

out challenges, and venture into new waters.

Nā konā he whakatere waka i ngā au o te wai e ora

May we explore the tides and currents that shape ourai ō tātou wawata e waipuketia ana i te Moana nui acollective aspirations in the increasingly complex and

Kuranui, a Kuraroa, a Kurapāmaomao.

ever-changing tertiary education environment.

Nā ō tātou tīpuna i whakapūaho mai te arawai hei

Informed by the courage of our tīpuna we navigate

whai, me te kārewa anō hoki i ā tātou rangatahi ethese waters, buoyed by the transformational capacity

whanake haere ana i ngā tai o te ao huri nei,of our rangatahi,

Ko rātou anō e tohu ana i ngā hua o te kura matua,

Who remind us of the capability of education and thee whakarere iho ana te kakau o te hoe e tetere nei

opportunities that higher education, mātauranga, and tete waka o te kuranui, te waka o te kī, ki ngā pae o tereo Māori provide for all.

māramatanga.
AUT hopes that this report will represents us and will
Ko te wawata ia, he whakatinanatanga te pūrongo nei

inspire us all, far and wide to whakamaua Te Pūrengi

hei whakaohooho i ō tātou hāpori, kia whakamaua Te– take hold of the rope of the mast, to navigate, toPūrengi – e nanao atu ai te taura o tokotū, e hiki kakau

uplift and support AUT in our quest for knowledge andai te hoe ki te whakatere tōtika i te waka, kia waka eke

understanding.

noa ai te koke ki tua o kitea.

Mihi written and translated by Dr Valance Smith, Assistant Pro Vice-Chancellor (Māori Advancement)

1

CONTENTS
THE YEAR: 20194

Chancellor’s Foreword

7

The Council of Auckland University of Technology

8Vice-Chancellor’s Report

15

Officers of Auckland University of Technology

16

About AUT

22

Key Facts and Figures

26

Financial Review

27Statement of Responsibility

28

Independent Auditor’s Report

STATEMENT OF SERVICE PERFORMANCE

31

Educational Performance Indicators

32

Theme 1: Creating exceptional learning experiences

38

Theme 2: Discovery and application of knowledge forwellbeing and prosperity

44

Theme 3: Responding to our place in the world

50

Theme 4: Building our position as New Zealand’s
university of technology

54

Theme 5: Being a place where people love to work and
learn

59

Statement of the Cost of Outputs

60Compulsory Student Services Fees

62

An inclusive community

64

Being a responsible global citizen

66

Supporting great teaching and excellent research

68

Making great spaces and places

70

Statement of Financial Performance71

Statement of Other Comprehensive Revenue and Expense

72

Statement of Financial Position

73

Statement of Changes in Equity

74

Statement of Cash Flows76

Notes to the Financial Statements

REPORTSFINANCIAL STATEMENTS

Front cover: Chrissy Hiraani Hilton,
Ngāti Kahungungu, Ngāti Ranginui, Te Arawa, Ngāti Raukawa
Bachelor of Arts in Māori Development, 2019
Image: Steven Park

2

ANNUAL REPORT 2019

Governor Fitzroy Plaza

THE YEAR: 2019
Ko te tau: 2019

4

ANNUAL REPORT 2019

CHANCELLOR’S FOREWORD
Kia ora koutou. Welcome to the 2019 Annual Report of the
Auckland University of Technology. I am pleased to introduce
this report, and to reflect on a successful year for the University
in a time of change and challenge for the tertiary sector.
I offer my congratulations to all staff for another outstanding
performance in the Times Higher Education (THE) World
University Rankings. AUT is now placed in the top 300
universities worldwide, which means that in fewer than 20
years, AUT has gained a place within the top 1% of institutions.
AUT also placed 16th in the world in THE’s inaugural University
Impact rankings. These are truly remarkable achievements.
The international impact of AUT’s research has proven a strong
contributing factor to the recent climb in the rankings. It istherefore no surprise that this was reflected in the results ofthe most recent Performance-Based Research Fund (PBRF)
quality evaluation round. AUT made significant strides fromthe previous 2012 round in all subject areas, and in a testament
to their dedication and international influence, the number ofA-rated researchers more than doubled (from 20 to 50).

Several of these kauri of the academic world were named
professors emeriti in honour of their long-standing contribution
to their disciplines and to the University. Congratulations are
due to Professor Alan Bell (Language and Communication),
Professor John Bitchener (Applied Linguistics), Professor
Charles Crothers (Sociology), Professor Elaine Rush (Nutrition),and Professor Jeffrey Hunter (Mathematical Sciences). I thankthem for their exemplary service and look forward to theircontinued association with AUT.
Along with the entire AUT community, I warmly congratulate
Professor Dame Marilyn Waring, who was made a Dame
Companion of the New Zealand Order of Merit in the 2020 New
Year’s Honours List, in recognition of her services to women andeconomics. We will celebrate this achievement fully in Annual
Report 2020. The international impact of Dame Marilyn’s work
was underscored by the BBC, who named her on their 2019 listof the world’s top 100 women of influence and inspiration.
The Royal Society Te Apārangi recognised the contribution of
three outstanding researchers this year. On behalf of Council I
congratulate Professor Edwina Pio, winner of the 2019 Te Rangi
Hiroa Medal; Professor David Towns, who received the Charles
Fleming Award for Environmental Achievement; and Professor
Valery Feigin, who was elected as a Fellow of the Royal Society.
I further congratulate Helen Dervan, winner of the 2019 Rex
Mason prize for legal writing; and Professor Gail Pacheco, whoreceived the University Medal for her outstanding contribution
to applied econometric research, and leadership of AUT’s
New Zealand Work Research Institute.

5

I also wish to congratulate Max Gimblett, who received
an honorary doctorate for his outstanding and sustained
contribution to the arts. Mr Gimblett, an alumnus of thethen-Seddon Memorial College, now has his work displayed inmany major international collections, including the Museum ofModern Art and the Guggenheim Museum.
AUT has come a long way since Mr Gimblett’s time as a student
and it continues to grow and develop. During the year Council
approved the University’s next major building project. The A1
Building at North Campus will perform a similar function to the
Sir Paul Reeves and Mana Hauora Buildings at City and South.
It will provide a new focal point for the campus, with modern,
flexible classrooms and an abundance of social and informal
learning spaces.
The issues of student-centred learning and student welfare
have received increased attention in 2019. The Education(Pastoral Care) Amendment Bill articulates the Government’s
expectations for institutions in caring for their students, andthe draft Tertiary Education Strategy places learners firmly
at the centre of education policy. I am pleased to see AUT
has anticipated both these issues, and had already adopted
leading policies and procedures, all of which are founded on
the values of tika, pono and aroha. In regard to student welfare,the iRefer Guide was adopted early in 2019 and provides staff
with a comprehensive and accessible summary of the different
challenges students may face, signs that someone may require
additional help, and the most appropriate responses.
Student-centred learning is central to AUT’s vision of creating
great graduates; AUT Directions to 2025 and its companion
document, the Learning and Teaching Roadmap to 2025,
articulate the approach to creating learners who care, question
and act, by offering engaged and relevant teaching and flexible
qualifications, all underpinned by an ethos of community

service. The world faces many concerns as we move into
the third decade of this millennium. The effects of climatechange, and potential labour market disruption due to the riseof machine learning and artificial intelligence, are just two of
the challenges faced by all humanity. I am confident that AUT’s
staff and graduates will be at the forefront of our collective
response.
The Government’s review of vocational education took place in
2019. Although focussed on the role and contribution of theinstitutes of technology and polytechnics (ITPs), the proposed
reforms provide impetus for change across the entire tertiary
system. I remain concerned at the potential for reduced
regional or institutional autonomy under a centralised national
bureaucracy and would oppose any extension of this model tothe university sub-sector.
I conclude by thanking my fellow Council members for their
dedication to the University, its students, and its legacy. Special
mention is due to Acting President of the AUT Students’
Association, Divya Kataria, and to former President Dharyin
Colbert, and to retiring Council members Stephen Stehlin, Lyn
Lim, Judith Thompson, Sophie Hayman and Dr Helen Gaeta. I
am grateful for their thoughtful contributions over many years.
I acknowledge the work of Vice-Chancellor Derek McCormack
and the Strategic Leadership Team; Council is proud to watch
the University flourish under their leadership. With AUT on thecusp of completing its second decade as a University, there ismuch to celebrate and much to look forward to.
Nā konā he whakatere waka i ngā au o te wai e ora ai ō tātou
wawata e waipuketia ana i te Moana nui a Kuranui, a Kuraroa,
a Kurapāmaomao.

John Maasland
Chancellor

6

ANNUAL REPORT 2019

THE COUNCIL OF AUCKLAND UNIVERSITY OF TECHNOLOGY
Front row (from left): Derek McCormack, Dr Helen Gaeta, Dr Andrea Vujnovich, Sophie Hayman, Lyn Lim, John Maasland
Second row: Stephen Stehlin, Judith Thompson, Janine Smith
Third row: Dr Patrick Alley, James Schofield
Absent:Divya Kataria, Geraint Martin, Sussan Turner

7

THE COUNCIL OF AUCKLAND
UNIVERSITY OF TECHNOLOGY
As at 31 December 2019

The AUT Council is the University’s governing body. AUT Council is empowered to establish committees,
and delegate authority to committees or officers of the University. It is made up of elected staff and student
representatives, and people appointed by the Minister or co-opted by the Council from outside the University.
CHANCELLORJohn Maasland MA, FIOD

PRO-CHANCELLOR

Sussan Turner

SECRETARY TO COUNCIL

Dr Andrea Vujnovich LLB (Hons), MSc (Hons), PhD Auckland

COUNCIL ADMINISTRATORDavid Kara France BA, LLB

MEMBERSDr Patrick Alley MNZM, MBChB, FRACS, DipProfEthics

Co-opted by Auckland University of Technology Council

Appointed by the Minister of Education

Assistant Vice-Chancellor & General Counsel

Solicitor

Co-opted by Auckland University of Technology Council

Divya Kataria

Appointed by the Auckland University of Technology Students’ Association

Dr Helen Gaeta MSc, PhD. Auckland
Elected by the academic staff of the Auckland University of Technology
Sophie Hayman BA (Hons), PGDipArts, PGCEElected by the professional staff of Auckland University of Technology
Lyn Lim MNZM, LLB (Hons) ), CMInstD
Appointed by the Minister of Education

Derek McCormack MSc, DipTchg

Vice-Chancellor of Auckland University of Technology

James Schofield BCom, MSc (Econ), FCA
Co-opted by Auckland University of Technology Council
Janine Smith MNZM, BCom, MPhil (Hons)
Appointed by the Minister of Education
Stephen Stehlin BA
Co-opted by Auckland University of Technology Council
Judith Thompson BSocSc, MMgt
Appointed by the Minister of Education
SUPERNUMERARYMEMBER

Geraint Martin BA (Hons), MSc, MinstD, CHSM

8

ANNUAL REPORT 2019

VICE-CHANCELLOR’S REPORT
Ko te karanga nei o Te Pūrengi, he tono ki ngā pononga o tekuranui kaimahi mai, pouako mai kia whakamaua te pūrengi
kia tere ai te waka ki ngā mātāhauariki o te māramatanga.
Once again, 2019 was a successful year for Auckland
University of Technology, Te Wānanga Aronui o Tāmaki
Makaurau. We met our enrolment and financial targets,
improved our international rankings, and increased our levelof Government funding. We received excellent feedback
from our students and identified some areas where we can
improve. We offered practical support to our South Campus
students, including subsidised food and child-friendly study
sessions. We introduced new arrangements to facilitate better
teaching and learning, and are upgrading and modernising
our infrastructure. We secured several significant researchcontracts, increased our PBRF funding, and celebrated withseveral colleagues who won prestigious awards. All of thiscontributes to our reputation for providing exceptional learning
experiences for our students, equitable access and parity ofoutcomes, great graduates, and research that is making a
difference in the world around us.

AUT was named in the world’s top 300 universities by rankings
agency THE, an improvement of up to 50 places since 2018.
This represents a meteoric rise for AUT, moving 350 places in
only four years. According to THE, we are now third in New
Zealand, 51st equal in Asia-Pacific, and in the top 1% of world
universities. Again, our highest scores were in international
outlook (27th in the world), and citations (32nd), a measureof research impact. We are first in New Zealand and secondin Australasia for these two categories. Our contribution to
our country and the world was further recognised in THE’sinaugural University Impact rankings, where AUT was named
16th in the world. These achievements reflect the dedicationand excellence of our academic and professional staff; I trust
my colleagues share my deep sense of pride in our collective
accomplishment.
Another global education analyst, QS, rated AUT an overall
five-star institution, awarding the maximum five stars
in all categories, including
Research, Innovation, Teaching,
We achieved a five-star
Employability, Internationalisation, QS rating
Facilities, and Inclusiveness.
Our results for Research andInnovation increased from three and two stars respectively at
the previous assessment three years ago. AUT’s sport science
programme also received a five-star endorsement in thespecialist subjects category.
This expanding international reputation serves the University
well. We continue to attract more students and in 2019achieved a 9% increase in the number of international students

9

studying pre-degree, degree, and postgraduate programmes,
contributing to a 2% growth rate overall. We closed the yearwith more than 20,500 EFTS, our highest-ever number. Muchof the growth for domestic students took place in the highpriority health disciplines, and AUT negotiated additional
Government funding for both 2019 and 2020 to cater for thisdemand.
CREATING EXCEPTIONAL LEARNING EXPERIENCES
Much of the focus for 2019 was on creating the rightconditions for us to achieve our mission of great graduates. To
this end, we produced the Learning and Teaching Roadmap
to 2025, which translates the broad aims of AUT Directions
into an action plan to guide decision-making across all areasof the University. Our students will have exceptional learning
experiences shaped by:Work and social connection through a deep association withwork, communities and iwi;
Interdisciplinary collaboration, with learning opportunities
that transcend disciplines and draw from intercultural
knowledge; andAuthentic assessment reflecting the key tasks and decisionmaking priorities of their chosen field.
Ultimately, we aim for students to develop the attributes ofa great graduate: curiosity, creativity, critical thinking andempathy, and to hold values that will lead them to care, toquestion, and to act.
Another aspect of the Learning and Teaching Roadmap was toclarify expectations and measures of success for our academic
staff. To achieve the exceptional learning experiences
described above, along with the related objectives to integrateteaching and research, and enhance student research,
all academics are to be involved in teaching coursework,
supervising research or project work, producing researchor advanced professional practice outputs, and practisingacademic citizenship both within and beyond AUT.
To support our staff as they improve their teaching practice, we
held the inaugural Teaching and Learning Conference, which
focussed on authentic assessment, and established the AUT
Academy. The Academy is a university-wide initiative designed
to enhance scholarship anddemonstrate leadership in learning
93% of our bachelors
and teaching. The 28 founding
graduates completed
members include academics who
work-integrated learning
have already been recognised
for their exemplary practice, as
well as representatives from Estates and Student Services.
The Academy’s role is to work with senior leaders and otheracademic staff to improve teaching quality, policy, and practiceacross the University.
We celebrated with more than 3,500 bachelors graduates in
2019, of whom 93% had completed a work placement as partof their studies. Work-integrated learning is a longstanding
feature of AUT’s approach to education, ensuring our graduatesenter the workforce with confidence, experience to draw from,and the skills and attributes to be a valued colleague. During
their time at AUT, our students benefit from a vast range ofopportunities to be of service to others along with gaining
important work and leadership experience: 103 students
completed the AUT Edge award in 2019, taking the total
number of completions to 256; the almost 300 members of
the Oceanian Leadership Network were mentors and rolemodels for peers and secondary students in South Auckland;
and another large group of students acted as ambassadors andguides at Orientation and AUT Live events. We are gratefulfor their participation, collegiality, and enthusiasm for the
University.
DISCOVERY AND APPLICATION OF KNOWLEDGE FORWELLBEING AND PROSPERITY
AUT broke new ground in 2019,
We secured our
securing $28.4 million in newhighest-ever level ofresearch contracts, and posting a
external research funding
total external research income of$17.1 million. Leading the charge
in this, our most successful year to date, were University

10

ANNUAL REPORT 2019

VICE-CHANCELLOR’S REPORT (continued)
Medal-winning Professor Gail Pacheco (AUT Business School)
and Associate Professor Andrew Lowe (School of Engineering,Computer and Mathematical Sciences). Between them,
Professor Pacheco and Dr Lowe secured $13 million for threeprojects through the Ministry of Business, Innovation andEnterprise’s Endeavour Fund. Professor Pacheco received
a further $1.1 million from the Health Research Council for
an investigation into ethnic differences in engagement withhealthcare services, and Professor Valery Feigin (School of
Public Health and Psychosocial Studies) secured $1.2 million
to continue his Auckland Regional Community Stroke Study
into its fifth stage. In another notable success, Associate
Professor Sarat Singamneni (School of Engineering, Computerand Mathematical Sciences) was awarded a $1 million Marsden
Fund grant to investigate introducing controlled variability into
magnets, with potential benefits for electromagnetic systems.
The continued advancement of AUT’s research programme wasreflected in the results of the recent PBRF quality evaluation
round. Since the previous evaluation in 2012, the number offunded portfolios has increased by 62%, from 451 to 729. In
addition, the number of researchers in the A and B categories
almost doubled, reflecting the lift in quality of research as wellas quantity. AUT had the sector’s third highest number of new
and emerging (C(NE)-rated) researchers (132). Academics witha C(NE) rating are an immensely important indicator of thestrength of our research programme, and our future. In total,
we anticipate these results will translate into an increase of
approximately $5 million per year in PBRF funding.
AUT joined 45 national and international partners in theBlue Economy Cooperative Research Centre (CRC), a tenyear Australian research programme focussed on seafood
production, renewable energy, and offshore engineering. Led by
the University of Tasmania, theBlue Economy is worth a total of
We became a core partner $AUD329 million and includes
in a multi-million dollar
industry, Government andinternational researchresearch partners. AUT is New
programme
Zealand’s core research partner,
along with New Zealand King
Salmon, Plant and Food Research and the Cawthron Institute.
Professor Lindsey White (School of Science) is the co-leader of
the CRC’s seafood and marine products programme.
The Centre for Social Data Analytics continues to produce
ground-breaking work that makes a genuine and positive
difference in the lives of people here in New Zealand andoverseas. Most recently, colleagues from the Centre presented

the findings of the Allegheny Homelessness Tool at Bloomberg’s
Data for Good Exchange event in New York. Social services
agencies in Allegheny County have used the tool’s predictive
risk model to identify clients most at risk of harmful outcomes.
RESPONDING TO OUR PLACE IN THE WORLD
AUT and our Policy Observatory are partners with the Helen
Clark Foundation, which was launched at AUT in 2019. The
foundation is an independent, non-partisan think tank, basedon the values of its patron, the Rt Hon Helen Clark. These
include working towards a more sustainable, inclusive andpeaceful society through public policy. The foundation’s work
to date includes The Christchurch Principles, guidelines oninternet governance for the use of social media companies, civilsociety and governments when seeking to eliminate violent andextremist online content.
Now in their sixth year, the Woolf Fisher First-in-Family
Scholarships continue to support student success. There
were 19 recipients in 2019, all of whom come from families
with no history of degree-level study, and with significant
financial or cultural barriers to overcome in their pursuit ofa higher education. Of the
70 awardees to date, 40 were
We congratulate 17
still enrolled at AUT in 2019,
graduates from the Woolf
17 had graduated, and two had
Fisher First-in-Family
continued to postgraduate
Scholarships
study. Congratulations to all thescholarship recipients; we areproud to witness your success.
As mentioned in my introduction, AUT was placed 16th in theworld on THE’s new University Impact rankings. This ranking
assesses the social impact of universities, against the United
Nations’ Sustainable Development Goals (SDGs). AUT wasplaced second in the world for its performance on Sustainable
Cities and Communities (SDG 11), due to research in fields suchas remote working, affordable housing, and investment in art
and heritage. We were placed ninth for Gender Equality (SDG
5), in recognition of our proportion of female academics, work toincrease the balance in traditionally male-dominated fields, andour policies designed to enable gender equality.
We signed two new agreementswith some of China’s mostprestigious universities during
the year, presenting some exciting
opportunities for the future.

We signed two newagreements with highly
rated Chinese universities

11

The AUT, Shanghai Jiao-Tong, Fudan, and Xinjiang University
Tripartite Research Collaboration facilitates student exchanges,
research visits and shared postgraduate supervision. There
are several joint research projects underway, including
investigations in chemotherapy and immunotherapy, rational
design of antibodies, and a study of autism in different
populations. Fudan and Shanghai Jiao-Tong Universities
are respectively China’s third- and fourth-highest ranked
institutions, and both are members of Universitas 21, a global
network of research-intensive universities.
AUT and the Shandong Academy of Sciences opened ajoint research laboratory, focussed on technologies such as
computer vision, artificial intelligence, and supercomputing.
The two universities have also established the New ZealandShandong Innovation Forum, through which we will explore awider array of shared research projects, and opportunities forjoint postgraduate teaching and supervision.
BUILDING OUR POSITION AS NEW ZEALAND’S UNIVERSITYOF TECHNOLOGYAUT Directions sets out our intention of working in a transdisciplinary manner, and identifying overarching ideas towhich the entire University can contribute. The first of these
key themes, Health Futures, was launched in 2019 to tackle
the environmental, social and economic drivers of current andemerging health concerns. We have made available $20 million
over the next five years to fund innovative approaches toaddress these concerns, drawing
together knowledge and expertise
We provided $20 million
from across AUT.
for a new pan-University

research programme

I join with the Chancellor andthe entire University community
to congratulate several outstanding colleagues on theirachievements in 2019. Professors Edwina Pio, David Towns
and Valery Feigin were honoured by the Royal Society Te
Apārangi. Professor Pio received the Te Rangi Hiroa Medal,
Professor Towns was awarded the Charles Fleming Award forEnvironmental Achievement, and Professor Feigin was madea Fellow of the Society. His citation recognised that Professor
Feigin’s work had changed the worldwide understanding ofstroke and traumatic brain injury, and has had significant
implications for healthcare services, research planning andpriority setting. Professor Dame Marilyn Waring continues toreceive global acclaim for her work, with the BBC including her
in its 2019 list of Top 100 Women of Influence and Inspiration

for her contribution to feminist economics. It was a pleasure topresent Professor Gail Pacheco with the AUT University Medal.
Professor Pacheco is internationally respected for her research,
particularly her use of integrated data to inform social policy
and wellbeing. She was recently appointed to the Productivity
Commission and leads the New Zealand Work ResearchInstitute at AUT. Professor Pacheco exemplifies AUT’s intention
to lead our sector in external impact.
BEING A PLACE WHERE PEOPLE LOVE TO WORK AND
LEARN
This wide-ranging final theme covers many issues critical
to AUT’s vitality and long-term sustainability. Although wescored highly on Gender Equality under the University Impact
rankings, we recognise the need for continued improvement.
This year, we conducted our first gender pay gap analysis,
which provided an excellent insight into the current situation,and some initial remedial actions. We have a range of initiatives
already in place to reduce the pay gap, including structured
recruitment interviews to reduce bias, faculty-based diversity
task forces, gender-neutral job evaluation methodology, andmentoring and leadership training programmes. To add tothese, we will track and report on progression and promotion
outcomes, review our recruitment processes, introduce
unconscious bias training, and continue to measure the gender
pay gap in future years.
Once again, AUT posted a strong
We posted another strong
financial result. Our total revenue
financial result
increased 6.5% from 2018, and was$27.3 million ahead of budget for
the year. This was largely due to growth in student numbers,
particularly for international students, where postgraduate
enrolments have increased 36% since 2017. In total, ourinternational student revenue increased 14% in 2019. This
excellent result was coupled with a 6% increase in Student
Achievement Component funding, and a 7.6% increase inresearch revenue. We attained all our financial covenants
and gained Council’s approval to commence our next majorbuilding project, the A1 development at North Campus. Our net
surplus of $17.3 million represents four percent of total revenue,
a solid result that was 23% ahead of budget and comfortably
within the standard expected for the tertiary sector.

12

ANNUAL REPORT 2019

VICE-CHANCELLOR’S REPORT (continued)
Our new City Campus building, Ngā Wai Hono, received the Ted
McCoy Award for Educational Architecture at the New ZealandArchitecture Awards. Congratulations to all who were involvedin the design and construction ofthis quality building. In addition, I
We received a major
acknowledge the Estates group andarchitectural award for
the Emergency Management andNgā Wai Hono
Business Continuity teams for theirswift and effective response to theCity Campus fire in late 2018; we were able to contain the damage to
two buildings, and be operational in time for the first semester.
AUT is an inclusive community, where all can feel safe, welcome, andvalued. This was particularly evident in the weeks after the horrific
Christchurch terror attack in March. I was deeply moved by theoutpouring of aroha and support shown by our staff and students.
Flowers piled up at the entrance to the AUT Masjid, and many signed
the condolence books, visited the reflection spaces, and attended
the vigils held on all three campuses. My thanks to staff in Student
Services and Administration and the Emergency Management Teamfor enabling this compassionate response to an unspeakable tragedy.
CONCLUSIONAs always, I wish to thank Chancellor John Maasland and the AUT
Council for their continued contribution to AUT. We are privileged
to have such a positive and engaged Council; the University isstronger for their involvement. I thank too the members of ourStrategic Leadership Team for their dedication and insight, andfor leading many of the outstanding achievements detailed in thisAnnual Report. During the year we farewelled Professor Geoff Perryfrom his role as Deputy Vice-Chancellor. Professor Perry leaves arich legacy from his 27 years of service to AUT; he was instrumental
in the development of the Faculty of Business, Economics and Law,South Campus, AUT Millennium, and our teaching and learning
development programme. We were pleased to welcome his
replacement, Professor Kathryn McPherson, back to AUT. Professor

McPherson brings with her a wealth of academic leadershipexperience; she was previously Professor of Rehabilitation in the
Faculty of Health and Environmental Sciences, before spending
several years as the chief executive of the Health Research Councilof New Zealand. I also congratulate Professor Gayle Morris on
her appointment as Pro Vice-Chancellor (Learning and Teaching),
and thank her for her work to develop the Learning and Teaching
Roadmap to 2025, and the Exceptional Learning Experiences
framework.
I am grateful for the contribution of the AUT Students’ Association,and especially that of the Acting President, Divya Kataria, and VicePresident Angelica Tovia. We appreciate their tireless advocacy andpractical support for students.
Finally, and most importantly, I thank all AUT staff and students fortheir contribution to the University, our mission of great graduates,
and for the myriad of ways they enact tika, pono and aroha eachday. Together, we are creating a community we can be proud of, andmaking a lasting difference in our city, our country and our world.
Ko te wawata ia, he whakatinanatanga te pūrongo nei hei
whakaohooho i ō tātou hāpori, kia whakamaua Te Pūrengi –e nanao atu ai te taura o tokotū, e hiki kakau ai te hoe ki tewhakatere tōtika i te waka, kia waka eke noa ai te koke ki tua okitea.

Derek McCormack
Vice-Chancellor

132019 AUT EXCELLENCE AWARD WINNERS
UNIVERSITY MEDAL
Professor Gail Pacheco

School of Economics
In recognition of an outstanding contribution to applied econometric research, and leadership of the extensive development and advancement of the New ZealandWork Research Institute at AUT.

RESEARCH EXCELLENCE

PROFESSIONAL EXCELLENCE

Research Team: New Zealand Work Research Institute

Andrea Cu

For interdisciplinary, enquiry-driven research with social impact.

For managing resource planning priorities for the Faculty ofBusiness, Economics and Law.

Faculty of Business, Economics and Law

Emerging Researcher: Dr Nada Signal
School of Clinical Sciences

For research in innovative rehabilitation clinical practice.

Postgraduate Research Supervision: Associate Professor
Ken Hyde

AUT Business School

For supervision of graduate research students in AUT Business
School.

Faculty of Business, Economics and Law

Estates Emergency Response Team
Facilities Management

For mobilising the rapid clean-up and repair work after the
major fire at AUT City Campus in December 2018, with minimal
disruption to University operations.

Tammi Wilson Uluinayau
School of Clinical Sciences

Research Impact: Professor Valery Feigin

For exceptional leadership in promoting Māori and Pacific student
success.

For ground-breaking research in stroke epidemiology and prevention.

Ji-yeon Wi

School of Public Health and Psychosocial Studies

Individual Research Excellence: Professor Richard Siegert
School of Public Health and Psychosocial Studies

For spearheading research in goal setting in rehabilitation and themeasurement of meaningful outcomes for brain injury patients.

TEACHING EXCELLENCE
Jill Caldwell

School of Clinical Sciences

For managing the Musculoskeletal Physiotherapy app’s integration
into AUT’s physiotherapy programme.

Dr Sabrina Chong
AUT Business School

For excellence in teaching leadership in Accounting in AUT Business
SchoolSchool of Communication Studies TeamFor leading the Bachelor of Communication Studies’ innovative
curriculum redevelopment.

Todd Stretton

School of Clinical Sciences

For delivering advanced technology-based clinical learning
opportunities for physiotherapy students.

Sustainable Enterprise Teaching TeamAUT Business School

For excellence in teaching business students’ skills to work in, as wellas question, the current socio-economic system.

Strategy and Planning

For leadership in data analysis helping the AUT community unlock
critical new information about the University’s research, students
and staff.

Joanne Wilkins

Student Services and Administration

For dedication to advancing student wellbeing and prosperity, andleadership of supportive frameworks.

14

ANNUAL REPORT 2019

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

17
18
19
20
21

OFFICERS OF AUCKLAND
UNIVERSITY OF TECHNOLOGY
1 Derek McCormack 2 Professor Kath McPherson 3 Professor Kate Kearins 4 Professor Pare Keiha
5 Professor Guy Littlefair 6 Professor Max Abbott 7 Professor Nigel Hemmington 8 Professor Gayle Morris 9 Professor Desna Jury
10 Professor John Raine 11 Dr Rosanne Ellis 12 Walter Fraser 13 Dr Andrea Vujnovich 14 Lyle Williams 15 Jenny Bygrave
16 Joanna Scarbrough 17 Beth Bundy 18 Lester Khoo 19 Kim Tairi 20 Liz Gosling 21 Luke Patterson

15

OFFICERS OF AUCKLAND
UNIVERSITY OF TECHNOLOGY
As at 31 December 2019

AUT is led by the Vice-Chancellor who appoints the senior officers employed by the University. The officers are
responsible for providing the strategic direction for AUT and for ensuring that the University is well managed, its
academic standards are maintained, and the various needs of the University’s stakeholders are met.
VICE-CHANCELLOR
DEPUTY VICE-CHANCELLOR

Derek McCormack MSc, DipTchg
Professor Kathryn McPherson BA(Hons), PhD Edinburgh, RN, RM,

DipHV

PRO VICE-CHANCELLORS AND DEANS
Pro Vice-Chancellor
Dean, Faculty of Business, Economics and Law
Pro Vice-Chancellor (Māori Advancement) and Dean,
Faculty of Culture and Society and Te Ara Poutama(Māori and Indigenous Development)

Professor Kate Kearins BEd, PGDip Mgmt, MA (Hons), MMS, PhD

Waikato, DipTchg

Professor Pare Keiha QSO, MBA, MComLaw, MSc, PhD Auckland,

FRSA, MInstD, MRSNZPro Vice-Chancellor
Dean, Faculty of Design and Creative Technologies

Professor Guy Littlefair MSc, PhD Nottingham Trent (UK) , FIEAust,Pro Vice-Chancellor
Dean, Faculty of Health and Environmental Sciences

Professor Max Abbott CNZM, BA, BSc, MA (Hons), PhD Canterbury,
DipClinPsych, TColDip (Dstn), MNZCCP, MRSNZPro Vice-Chancellor (Research, Enterprise andInternational)

Professor Nigel Hemmington BSc (Hons), PhD Surrey, MRSNZ, FIH,

Pro Vice-Chancellor (Learning and Teaching)

CPEng, EngExec, NER, APEC Engineer, IntPE(Aus), CMEngNZ, MDINZ,
MRSNZ

FInstCPD, FCIM, Chartered Marketer

Professor Gayle Morris BA, GradDip, PGCertDigColLrng, MEd, PhD

Melbourne

Pro Vice-Chancellor (Student Experience and Success)Professor Desna Jury MEd (Hons), DipTchg, FDINZ, FRSAPro Vice-Chancellor in the Vice-Chancellor’s office

Professor John Raine BE (Hons), PhD Canterbury, CEng, FIMechE,

Associate Pro Vice-Chancellor (Research Engagement
and Management)

Dr Rosanne Ellis MSc, PhD Waikato

DistFEngNZ, MSAE, MASPACI, CRSNZASSISTANT VICE-CHANCELLORSAUT South
Pacific Advancement

Walter Fraser BA, PGDipCom

Corporate Development
General Counsel

Dr Andrea Vujnovich LLB (Hons), MSc (Hons), PhD Auckland

Finance and Infrastructure
Chief Financial Officer

Lyle Williams BCom, CA, CPA Fellow

Strategy, Students and Marketing

Jenny Bygrave LLB, MEdAdmin (Hons)

GROUP DIRECTORS
Student Services and Administration

Joanna ScarbroughInternational

Lester Khoo BA, LLB, GradDipBus, MMgt

People and Culture

Beth Bundy BA (Hons), MPA (Exec)

University Librarian

Kim Tairi BBus, MEd, GradDipTerEd, DipVET, AFALIA (CP), RLIANZA

Chief Information Officer

Liz Gosling BTec HND, MBA

Chief Marketing Officer

Luke Patterson MBA

16

ANNUAL REPORT 2019

WE HAVE

17schools• Art & Design• Business• Clinical Sciences• Colab: Creative Technologies• Communication Studies• Economics• Education• Engineering, Computer &Mathematical Sciences• Hospitality & Tourism• Interprofessional HealthStudies• Language & Culture• Law• Public Health &Psychosocial Studies• Science• Social Sciences & Public

Policy• Sport & Recreation• Te Ara Poutama - Māori &Indigenous Development

29,500students

3,400
staff

3

campusesacross Auckland:• Manukau• Auckland CBD• North Shore

3

specialist locations:• AUT Millennium

high performancesports centre• Warkworth Radio

Astronomical
Observatory• AUT Centre for

Refugee Education

ABOUT AUT
AUT is one of New Zealand’s largest universities. We have been auniversity since 2000, and a place of learning for 125 years.

17

WE OFFER EXCEPTIONAL LEARNING EXPERIENCES
TO DEVELOP OUTSTANDING GRADUATES

5

OUT
OF

5

for Research,
Internationalisation, Teaching,
Employability, Innovation,
Facilities, and Inclusiveness(Times Higher Education)(QS Stars)

1
th
27
st

WORLD-RANKED SUBJECTSTOP 30 SPORTS
TOP 100 ART & DESIGNTOP 150 ACCOUNTING & FINANCE
TOP 200 BUSINESS & MANAGEMENT |in New Zealand &COMMUNICATION & MEDIA

TOP 300 ECONOMICS AND ECONOMETRICS
TOP 400 COMPUTER SCIENCE & INFORMATION SYSTEMS |ELECTRICAL & ELECTRONIC ENGINEERING

in the world

TOP 500 MECHANICAL, AERONAUTICAL & MANUFACTURING

for international outlook

ENGINEERING(Times Higher Education)(QS World University Subject Rankings 2019)

1

st &

in New Zealand32

ndin the world

for global research impact(Times Higher Education)+60

research centres andinstitutes withworld-class expertise

94%

1,017
doctoral students#

16WORLDWIDEFOR

SOCIAL
IMPACT(Times Higher Education)

Students come from

141
countries

6,064International students

of available domestic graduates
employed within 9 months ofcompleting study(includes full-time and part-time work)

11% & 17%

Māori students

Pacific students

18

ANNUAL REPORT 2019

We foster new
thinking, discovery
and achievement

We have a strong
focus on students
and graduates• AUT students are taught by expert
academics who are active in advancing
their fields.

• We want our students to be challenged,
successful and engaged with thewider world. We encourage them tocollaborate, experiment and experience
working life beyond the classroom.

• We have more than 60 research
institutes and centres in diverse fields
including: radio astronomy, artificial
intelligence, tourism, data mining,
geo-informatics, forensics, nutrition,
financial forecasting, sports science,
rehabilitation, epidemiology andbiotechnology engineering.
• We collaborate with more than 5,000
industry, education and research
partners worldwide.
• AUT alumni enter the workforce able tochallenge routine thinking and provide
innovative solutions to industry andsociety. They are outstanding graduates
who are highly capable, enterprisingand ready to contribute to a changing
world.

• We provide a transformational student
experience.
• More than 90% of bachelors graduatescomplete a work placement orinternship.
• We aim for all of our students to havean international experience.
• We contribute to the social andeconomic development of Auckland,
New Zealand, and the wider world
through our graduates, research andinnovation, and our engagement withindustry and communities.

19

AUT DIRECTIONS TO 2025
In AUT Directions to 2025, we outline our vision for the coming years.

OUR
MISSION

GREAT GRADUATESOURVISION

To be a university known for the desirability of our contemporary education, built on ourcommitments to:
LEARNING & TEACHINGRESEARCH

DISTINCT CONTRIBUTIONVIBRANT COMMUNITY

Creating exceptional learning
experiences

Building our position as
New Zealand’s university oftechnology

OUR
CULTURE

Discovery and application ofknowledge for wellbeing andprosperity

OPEN-MINDEDCOURAGEOUS

COLLABORATIVEPURPOSEFUL

We are open-minded, curious and questioning

TIKA

Integrity

PONO

Respect

Responding to our placein the world

Being a place where people
love to work and learn

We are welcoming, collegial, collaborative andrepectful of others

OUR
VALUESENGAGEMENTAROHA

We think critically, listen carefully and speak
courageously

We are achievement-oriented and dedicated to thesuccess of our students and partners

Compassion

20

ANNUAL REPORT 2019

PLANNING AND MONITORINGOUR PROGRESSAUT Directions was adopted in 2017 and has one central mission: great graduates.
To achieve this mission, we offer exceptional learning experiences, conduct researchthat makes a difference, engage with our communities, and celebrate a culture thatis inclusive, vibrant and collegial. We want to increase the extent and impact of ourrelationships with industry, demonstrate technological excellence, and encourage
innovation and entrepreneurship to flourish. Our Investment Plan 2019-2020 reflects
these aims.

AUT DIRECTIONS
TO 2025

INVESTMENT
PLAN 2019-2020
Sets short-term direction andpriorities for investment

ANNUALREPORT 2019
Measures progress
towards Investment
Plan targets

GOVERNMENTPRIORITIESTERTIARYEDUCATIONSTRATEGY
2014-2019

21

THE FIVE THEMES OF AUT DIRECTIONS ARE:

Creating
exceptional
learning
experiences

1 2 3
4 5
Discovery andapplication ofknowledge
for wellbeing
and prosperity

Building ourposition as
New Zealand’s
university oftechnology

Responding
to our placein the world

Being a place
where people
love to workand learn

22

ANNUAL REPORT 2019

KEY FACTS AND FIGURESALL EFTS 1, 2
2019
Actual2019
Budget2018
Actual2017
ActualEFTS
16,032

16,241

16,131

15,888

438

356

359

339

Total SAC-funded EFTS

16,47016,597

16,49016,227

International EFTS

2,807

3,219

2,906

2,757

Other Domestic EFTS

265

239

267

287

Other International EFTS 5

313

326

313

303

Non EFTS 6

48

48

48

51

Total programme EFTS

19,903

20,42920,024

19,625

AUT International House

107

102

109

91

20,01020,531

20,133

19,71629,42829,24828,812

Domestic SAC-funded EFTS 3International EFTS receiving SAC funding 4

Total EFTS
Total number of students

EFTS BY QUALIFICATION TYPE
2019
Numbers Percentage

2018
Numbers Percentage

2017
Numbers Percentage

SAC-FUNDED EFTS
Postgraduate

2,589

16%

2,554

15%

2,390

15%

Bachelor degree and graduate programme

12,84577%

12,68077%

12,58377%

Diploma and certificate

1,163

7%

1,256

8%

1,253

8%

Total SAC-funded EFTS

16,597100%

16,490100%

16,226

100%

Postgraduate

1,417

44%

1,104

38%

985

36%

Bachelor degree and graduate programme

1,704

53%

1,672

58%

1,675

61%

Diploma and certificate

98

3%

130

4%

97

3%

Total International EFTS

3,219

100%

2,906

100%

2,757

100%

INTERNATIONAL EFTS

1 Equivalent full-time students
2 As of 2019, international postgraduate research students are no longer eligible for Student Achievement Component funding (unless enrolled in a doctorate).
These are now counted as International students; 2017 and 2018 results have been updated to ensure a consistent presentation
3 SAC-funded refers to students eligible for Student Achievement Component funding
4 Includes International SAC-funded EFTS (German academic exchange students and diplomatic staff and family), International Research SAC-funded EFTS (Onshore international PhDs), and International Exchange (SAC-funded) EFTS
5 Other International EFTS refers to International students enrolled in programmes that are not eligible for SAC funding. This includes non-credit-bearing courses
and revenue-generating activities
6 Non-EFTS refers to students who receive specific funds for enrolment in programmes that do not attract SAC funding

23

DOMESTIC SAC-FUNDED STUDENTS
2019
Numbers Percentage

2018
Numbers Percentage

2017
Numbers Percentage

STUDENTS BY ETHNICITY 7
Asian

5,564

26%

5,530

25%

5,448

25%

Māori

2,403

11%

2,435

11%

2,375

11%

New Zealand European/Pākehā

8,504

39%

8,851

41%

8,808

41%

Pacific

3,710

17%

3,575

16%

3,415

16%

Other

1,489

7%

1,480

7%

1,492

7%

63

<1%

64

<1%

98

<1%

Full-time

15,19570%

15,12669%

14,88669%

Part-time

6,538

30%

6,809

31%

6,750

31%

Under 25 years

14,84568%

14,82968%

14,641

68%

25-39 years

4,768

22%

4,827

22%

4,768

22%

40+ years

2,120

10%

2,279

10%

2,227

10%

Female13,48762%

13,581

62%

13,266

61%

Male

8,203

38%

8,323

38%

8,352

39%

43

<1%

31

<1%

18

<1%

Non-declared
STUDENTS BY MODE OF STUDYSTUDENTS BY AGE

STUDENTS BY GENDER

Gender diverse

INTERNATIONAL STUDENTS

International students were enrolled from 108 countries. The top ten are listed below.
2019
Numbers Percentage

2018
Percentage

China

2,006

42%

46%

India

952

20%

14%

Vietnam

220

5%

5%

Saudi Arabia

133

3%

3%

South Korea

122

3%

2%

Hong Kong

99

2%

2%

Malaysia

79

2%

2%

Thailand

68

1%

1%

United States of America

62

1%

1%

Taiwan58

1%

2%

Other (98 countries)

964

20%

22%

Total International students 8

4,763

100%

100%

7
8

Based on student headcount and primary self-selected ethnicity
This includes International students that are SAC-funded

24

ANNUAL REPORT 2019QUALIFICATIONS AWARDED
2019

2018

2017

Doctorates

121

128

112

Masters

872

839

769

Honours, Postgraduate Diplomas and Postgraduate Certificates

1,365

1,152

1,205

Degrees, Graduate Diplomas and Graduate Certificates

3,914

4,025

4,074

Diplomas

222

217

212

Certificates

537

821

1,070

7,031

7,182

7,442

Total qualifications awarded

STAFF
For the year ended 31 December 2019

Academic

2019
Admin

Total

Academic

2018
Admin

Total

Business, Economics and Law

184

66

250

182

70

252

Culture and Society

164

65

229

182

73

255

Design and Creative Technologies

334

120

454

325

112

437

Health and Environmental Sciences

432

147

579

418

148

566

Te Ara Poutama

29

3

32

24

4

28

Total faculty FTE

1,143

401

1,544

1,131

407

1,538

46

852

898

46

840

886

1,189

1,253

2,442

1,177

1,247

2,424

FACULTIES

Total central administration services FTE
TOTAL UNIVERSITY FTE

1,0767

1,200

6International EFTS

4,520

4,436

Taught EFTS

38,70973,632878

39,461

76,384661

Administrative costs

Total costs

354

3,041

18.5:1

2018
Actual$18,555

58,264

2,632

60,896

31,74029,156$19,530

59,3902,691

62,081

29,06033,021$1,485,719 $1,295,690

324

3,140

21.3:1

2019
Actual

3,140

3,177

61

501

2,615

2018
ActualCultureand Society

3,243

3,249

67

513

2,669

2019
ActualCultureand Society

5,981

5,622

164

992

4,466

2018
Actual672

5,762

18.4:1

2018
Actual$22,265

128,9155,330

134,245

71,321

62,924$20,344

117,224

5,643

122,867

66,08756,780$4,268,813 $3,190,769

741

5,790

18.0:1

2019
ActualDesign and Creative
Technologies

6,005

5,706

158

1,113

4,435

2019
ActualDesign and Creative
Technologies

5,854

5,621

152

311

5,158

2018
Actual826

5,604

14.0:1

2018
Actual$22,659

135,272

6,510

141,782

66,50475,278$21,658

121,369

7,382

128,751

58,11070,641$10,003,901 $9,838,008

823

5,970

14.4:1

2019
ActualHealth andEnvironmental Sciences

6,208

5,905

125

372

5,408

2019
ActualHealth andEnvironmental Sciences$18,547

7,975

288

8,263

4,374

3,889

$326,01755

430

15.4:1

2019
Actual

426

50

0

0

50

2018
Actual$17,154

7,033

398

7,431

3,605

3,826

$361,21143410

17.7:1

2018
ActualTe AraPoutama

448

94

1

1

92

2019
ActualTe AraPoutama

103

1,236

244

26

966

2018
Actual2,032

19,816

17.4:1

2019
Actual$20,589

407,985

14,886422,871

214,701

208,170$19,643

380,998

15,026

396,024

196,833

199,191$15,854,214

2,125

19,396

17.2:1

2018
ActualTOTAL UNIVERSITY

89

1,184

256

20

908

2019
ActualUniversity programmes$17,062,747

For 2019, 12.0 FTE belonging to the Centre for Refugee Education (Faculty of Culture and Society) have been removed to provide a more accurate comparison of student:staff ratios across the faculties. In 2018, 12.1 FTE were removed
The University total includes 89 EFTS that were not attributed to the University faculties in 2019. For 2018, this was 103 EFTS
Where there are multiple AUT authors in more than one faculty, an output is counted once per faculty
From 2019, International and domestic servicing fees are included in Faculty costs. 2018 figures have been updated to conform to the new presentation$16,254$17,222Net cost of service per EFTS

9
10
11
12

72,75475,723

NET COST OF SERVICE

Less recoveries

34,92336,923$964,244 $1,145,387

353

Faculty costs 12

FINANCIAL $000s

Research revenue

Research outputs 11

RESEARCH

382

4,476

4,397

MoE bulk-funded taught EFTS

24.8:1

24.1:1Student: academic staff ratio 9

10

2018
Actual2019
ActualRESEARCH AND COST OF SERVICE

Business, Economics
and Law

4,318

4,291

TOTAL PROGRAMME EFTS

Other EFTS

3,235

2018
Actual3,085

2019
ActualBusiness, Economics
and Law

SAC-funded EFTS

ENROLMENTSEFTS

KEY FACTS BY FACULTY

25

26

ANNUAL REPORT 2019

FINANCIAL REVIEWFor the year ended 31 December 2019

KEY FINANCIAL INDICATORS

University

Consolidated

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

2019
Actual$000s

Total revenue

428,821401,542

402,779

430,791

402,464

403,582

Total expenses before finance, depreciation,amortisation and impairment costs

354,984

327,413332,218

355,954

328,130

332,595

Operating surplus before finance, depreciation,amortisation and impairment costs

73,837

74,12970,561

74,83774,33470,987

Finance costs

3,560

5,716

5,250

3,560

5,716

5,250

Depreciation, amortisation and impairment costs

53,001

54,412

48,78053,001

54,412

48,780---(1,067)(1,078)628

17,276

14,001

16,531

17,20913,12817,585

Operating cash receipts

447,784

410,883

403,910448,882

413,222404,475

Operating cash payments

353,749

341,277

335,076

354,036

343,430

335,494

NET CASH FLOWS FROM OPERATIONS

94,03569,606

68,834

94,846

69,792

68,981PROPERTY, PLANT & EQUIPMENT – NET BOOK VALUE

975,908

878,009

906,080

975,908

878,009

906,080

Bank borrowings – term

96,900147,515130,100

96,900147,515130,100

Finance leases – current

6,140

5,565

5,565

6,140

5,565

5,565

Finance leases – term

13,404

15,884

14,941

13,404

15,884

14,941TOTAL DEBT

116,444

168,964

150,606

116,444

168,964

150,606

TOTAL EQUITY

771,356

654,054

673,178

804,397678,278

697,654

Net surplus/revenue

4.0%

3.5%

4.1%

4.0%

3.3%

4.4%

Cash ratio

127%

120%

121%

127%

120%

121%

Interest cover ratio

5.85

3.45

4.15

5.83

3.30

4.35

Liquidity ratio

33%

22%

22%

34%

22%

23%

Debt cover ratio

1.24

2.43

2.19

1.23

2.42

2.18

Debt/debt + equity

13%

21%

18%

13%

20%

18%

Debt/total revenue ratio

27%

42%

37%

27%

42%

37%

2019
Budget$000s

2018
Actual$000s

OPERATIONS

Share of associate and joint venture's surplus/(deficit)
NET SURPLUS
CASH FLOWS FROM OPERATIONSDEBTOPERATING RATIOSCAPITAL RATIOS27

STATEMENT OF RESPONSIBILITY
For the year ended 31 December 2019In terms of the Education Act 1989 and the Crown Entities Act 2004 we certify that:•

the Council and management of the Auckland University of Technology accept
responsibility for the preparation of these statements of service performance and financial
statements and the judgements used therein; and•the Council and management of the Auckland University of Technology accept
responsibility for establishing and maintaining a system of internal control designed toprovide reasonable assurance as to the integrity and reliability of performance reportingand financial reporting; and•the Council and management of the Auckland University of Technology are of the opinion
that these statements of service performance and financial statements fairly reflect thefinancial position for the Auckland University of Technology and Group at 31 December
2019 and the results of the operations for the year ended 31 December 2019.

John Maasland
Chancellor

6 April 2020

Derek McCormack
Vice-Chancellor

28

ANNUAL REPORT 2019

INDEPENDENT AUDITOR’S REPORTTo the readers of Auckland University of Technology and group’s
financial statements and performance information for the year
ended 31 December 2019the financial statements and performance information, we comment
on other information, and we explain our independence.

The Auditor-General is the auditor of Auckland University ofTechnology (the University) and group. The Auditor-General has
appointed me, Karen MacKenzie, using the staff and resources of
Audit New Zealand, to carry out the audit of the financial statements
and performance information of the University and group on hisbehalf.

Without modifying our opinion, we draw your attention to thedisclosures in note 29 on page 117 which outline the possible effects
to University and group as a result of the COVID-19 pandemic. It isdifficult to determine the full effect of it on the University and groupat this time.

OPINION
We have audited:••the financial statements of the University and group on pages
69 to 119, that comprise the statement of financial position as
at 31 December 2019, the statement of comprehensive revenue
and expense, statement of changes in equity and statement ofcash flows for the year ended on that date and the notes to thefinancial statements that include accounting policies and otherexplanatory information; andthe performance information of the University and group, thatcomprises the statement of service performance on pages 30
to 57, the statement of the cost of outputs on page 59 and the
key facts and figures on pages 22 to 25.

In our opinion:•

the financial statements of the University and group on pages
69 to 119:-present fairly, in all material respects:

•
•
-

•

the financial position as at 31 December 2019; andthe financial performance and cash flows for the year
then ended; andcomply with generally accepted accounting practice in
New Zealand in accordance with the Public Benefit Entity
Reporting Standards; andthe performance information of the University and group on
pages 30 to 57, 59 and 22 to 25:--

presents fairly, in all material respects, the University andgroup’s service performance achievements as comparedwith the forecast outcomes included in the investment
plan for the year ended 31 December 2019; andcomplies with generally accepted accounting practice in
New Zealand.

Our audit was completed on 6 April 2020. This is the date at which
our opinion is expressed.
The basis for our opinion is explained below, and we draw yourattention to the possible effects of COVID-19. In addition, we outline
the responsibilities of the Council and our responsibilities relating to

COVID-19

BASIS FOR OUR OPINION
We carried out our audit in accordance with the Auditor-General’s
Auditing Standards, which incorporate the Professional andEthical Standards and the International Standards on Auditing(New Zealand) issued by the New Zealand Auditing and AssuranceStandards Board. Our responsibilities under those standards arefurther described in the Responsibilities of the auditor section of ourreport.
We have fulfilled our responsibilities in accordance with the
Auditor-General’s Auditing Standards.
We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
RESPONSIBILITIES OF THE COUNCIL FOR THE FINANCIAL
STATEMENTS AND PERFORMANCE INFORMATIONThe Council is responsible on behalf of the University and groupfor preparing financial statements that are fairly presented and thatcomply with generally accepted accounting practice in New Zealand.
The Council is also responsible on behalf of the University andgroup for preparing performance information that is fairly presented
and that complies with generally accepted accounting practice in
New Zealand.
The Council is responsible for such internal control as it determines
is necessary to enable it to prepare financial statements andperformance information that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements and performance information,
the Council is responsible on behalf of the University and groupfor assessing the University and group’s ability to continue as agoing concern. The Council is also responsible for disclosing, asapplicable, matters related to going concern and using the going
concern basis of accounting, unless the Council intends to liquidate
the University and group or to cease operations, or has no realistic
alternative but to do so.
The Council’s responsibilities arise from the Crown Entities Act
2004 and the Education Act 1989.
RESPONSIBILITIES OF THE AUDITOR FOR THE AUDIT OF THE
FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION
Our objectives are to obtain reasonable assurance about whether
the financial statements and performance information, 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.

29

Reasonable assurance is a high level of assurance, but is nota guarantee that an audit carried out in accordance with the
Auditor-General’s Auditing Standards will always detect a material
misstatement when it exists. Misstatements are differences oromissions of amounts or disclosures, and can arise from fraud or
error. Misstatements are considered material if, individually or in
the aggregate, they could reasonably be expected to influence thedecisions of readers taken on the basis of these financial statements
and performance information.
For the budget information reported in the financial statements andperformance information, our procedures were limited to checking
that:

•

the University budget information in the financial statements
agreed to the Council approved budget;•the consolidated budget information in the financial
statements agreed to the budget compiled by the University;and•the information agreed to the investment plan or Council
approved budget, as applicable, for the performance
information.

We did not evaluate the security and controls over the electronic
publication of the financial statements and performance
information.
As part of an audit in accordance with the Auditor-General’s
Auditing Standards, we exercise professional judgement andmaintain professional scepticism throughout the audit. Also:•

We identify and assess the risks of material misstatement of thefinancial statements and the performance information, 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.

•

We obtain an understanding of internal control relevant to theaudit 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 and group’s
internal control.

•

We evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by the Council.

•

We conclude on the appropriateness of the use of the going
concern basis of accounting by the Council and, based on theaudit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the University and group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, weare required to draw attention in our auditor’s report to therelated disclosures in the financial statements and performance
information 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 and group tocease to continue as a going concern.

•

We evaluate the overall presentation, structure and content
of the financial statements and performance information,
including the disclosures, and whether the financial statements

and performance information represent the underlying
transactions and events in a manner that achieves fairpresentation.

•

We obtain sufficient appropriate audit evidence regarding
the financial statements and performance information of theentities or business activities within the group to express an
opinion on the consolidated financial statements and theconsolidated performance information. We are responsible forthe direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.

We communicate with the Council 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.
Our responsibilities arise from the Public Audit Act 2001.
OTHER INFORMATIONThe Council is responsible for the other information. The otherinformation comprises the information included on pages 4 to 21,
26, 27, and 60 to 68, but does not include the financial statements
and the performance information, and our auditor’s report thereon.
Our opinion on the financial statements and performance
information does not cover the other information and we do not
express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements andperformance information, our responsibility is to read the otherinformation. In doing so, we consider whether the other information
is materially inconsistent with the financial statements andperformance information or our knowledge obtained in the audit,
or otherwise appears to be materially misstated. If, based on ourwork, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing toreport in this regard.
INDEPENDENCE
We are independent of the University and group in accordance with
the independence requirements of the Auditor-General’s AuditingStandards, which incorporate the independence requirements ofProfessional and Ethical Standard 1: International Code of Ethics
for Assurance Practitioners (including International IndependenceStandards) (New Zealand) issued by the New Zealand Auditing andAssurance Standards Board.
In addition to the audit, we have provided a report on the group’s
performance-based research fund -eligible external research
income. This is compatible with those independence requirements.
Other than the audit and this assignment, we have no relationshipwith or interests in the University or any of its subsidiaries.

Karen MacKenzie
Audit New Zealand
On behalf of the Auditor-General
Auckland, New Zealand

30

STATEMENTOF SERVICEPERFORMANCETe Tauākī o ngā Paetae
The following Statement of Service Performance contains
information on the University’s KPIs. It documents the services
provided by AUT to meet stakeholder needs and to ensure theintent of AUT Directions to 2025 is fulfilled.
For an overall view of the performance of the University, thissection must be read in conjunction with the section entitled‘The Year: 2019’.

31

EDUCATIONAL PERFORMANCE INDICATORS
AUT’s provisional 2019 results are presented below. The
retention, course completion and participation statistics weretaken from TEC’s Ngā Kete data site on 25 February 2020
and reflect the data available on 31 December 2019. These
results are likely to be understated due to the timing of thesubmission. Final 2019 results will be published in Annual
Report 2020.

Educational performance indicators (EPIs) are among therange of measures the Government uses to monitor the
performance and contribution of the tertiary sector. The
EPIs include course completion, cohort-based qualification
completion, retention from first to second year, andprogression from pre-degree to degree-level programmes.
The measures and targets represented below are taken fromthe EPI Commitments submitted alongside Investment Plan
2019-2020. The course completion targets are aspirational
and were agreed with TEC as part of the sector-wide plan toachieve parity in performance and participation for Māori andPacific students by 2022.
Funding
statusLevel of
study

Target2019

Provisional
2019

Actual2018

Actual2017

Non-Māori,Non-PacificAll

7 (degree)

80.0%

81.9%

81.8%

80.6%

Māori

All

7 (degree)

73.5%

73.8%

75.7%

72.3%

Pacific

All

7 (degree)

72.0%

74.8%

69.2%

70.3%

Non-Māori,Non-Pacific

SAC-eligible

All

87.0%

85.7%

86.8%

86.7%

Māori

SAC-eligible

All

84.0%

80.7%

81.1%

82.0%

Pacific

SAC-eligible

All

71.0%

67.6%

68.5%

69.2%

Māori

All

7 (degree)

11.4%

9.8%

10.0%

10.1%

Pacific

All

7 (degree)

17.6%

17.6%

16.4%

16.0%

Māori

All

8-10

7.0%

5.0%

5.0%

5.4%

Pacific

All

8-10

10.3%

6.8%

7.2%

8.0%

INDICATOR

Target2019

Actual2019

Actual2018

Actual2017

External research income$19.3M$17.1M$15.9M$13.1M

International student EFTS

2,778

3,901

3,578

3,399

INDICATOR

Ethnicity

First-year retention

Course completion

Participation

Even with only provisional data available, AUT has met its
targets for first-year retention for all three ethnicity groups,
and is on course to record strong increases for Pacific andnon-Māori, non-Pacific students. We will use the analytics
programme discussed elsewhere in this Annual Report tointerrogate these results to ensure we can build on thissuccess more broadly. Based on 2018 results (the most recent
available), with a score of 75.7% AUT was fourth in the sector
for Māori, and comfortably above the average of 71.4%. AUT
was fifth for Pacific retention (69.2%) and below the sector
average of 73.0%.
Course completion rates remain below target, although thesewere recognised as challenging from the outset and theexperience of previous years suggests that we may anticipate
small increases from 2018 by the time final results areavailable. In comparison with the rest of the sector, in 2018

AUT was fourth for Māori course completion, and above theaverage of 80.4%. For Pacific students, we were below thesector average (71.2%) and in seventh position.
We anticipate our participation statistics to increase as
the year continues. The targets are set with reference to
Auckland’s demographic composition, and AUT’s contributionto Māori and Pacific advancement. In comparison with the restof the university sector, in 2018 AUT was below the average
participation rates for Māori undergraduate students (10.0%
compared with 10.8%), and almost doubled the participation
rate for Pacific (16.4% compared with 8.6%). At postgraduatelevel, we were well ahead of the sector average for Pacificstudents (7.2% for AUT and 4.2% for the sector), and belowthat for Māori (5.0% compared with 6.6%).

32

ANNUAL REPORT 2019

1

THEME

CREATING EXCEPTIONALLEARNING EXPERIENCES

South Campus class

DELIVERINGCOMPELLINGPROGRAMMES

Our programmes will
be high quality, relevant
and supported witheffective learning andteaching services,offering students a richeducational experienceon campus and inindustry, community andfield settings here andoverseas.

GOING BEYONDEDUCATED AND
EMPLOYABLE

We will challenge
students to becomeinquiring andagile thinkers andcommunicators with abroad understandingof their world, looking
at issues in ways thattranscend disciplines.
They will gain core andtransferable skills withwhich to navigate theshifting opportunities ofwork and enterprise andcontribute in all aspectsof their lives.

DESIGNINGSTUDENT-DIRECTEDLEARNING

Students will be able
to explore and build
programmes from both
broad curricular andco-curricular options
designed to enhancetheir sense of purpose
and confidence, andtheir employability
and enterprise skills.
Students’ options will
include modes of delivery
and engagement.

SUPPORTINGGREATTEACHING

Our teaching will becreative, interactive andresponsive, characterisedby its contemporary
approaches, technologies
and resources. Ourteachers will be active
in developing theirteaching expertise,and be at the forefrontof their disciplines as
researchers, scholars andadvanced professional
practitioners.

33

HIGHLIGHTS
AUT
ACADEMYestablished with 28
founding members

EXCEPTIONALLEARNING
Framework released

LEARNING& TEACHING
Roadmap to 2025
adopted2019 GRADUATE SURVEY

93%

felt their work
placement was good
preparation for theirchosen industry

88%

felt their qualification had
conveyed the skills required
for their current job

34

ANNUAL REPORT 2019

PERFORMANCE MEASURESKey performance indicator

1.1

 Not achieved

Increase the proportion of students who
would recommend their programme of study

Target2019

Actual2019

Actual2018

Actual
2017

82%

81%

82%

81%

This result is taken from the Annual Programme Survey conducted by AUT. The survey uses 16 five-point Likert scale items and two qualitative
questions to gather student feedback on the programmes and services we offer. The response rate for this question was 21% (5,110 respondents
out of a total population of 24,816) and the margin of error was 1.2%. The overall response rate for this survey was 21% (5,245 respondents from a
population of 24,816). Although consistent with other online surveys, this result was lower than 2018.

The proportion of students who would recommend their programme of study fell slightly to 81% in 2019. While
overall satisfaction with AUT remains high (89%), programme satisfaction is generally lower. The Learning andTeaching Roadmap, adopted in 2019, has a goal of lifting programme satisfaction to 90% by 2025 through more
flexible learning approaches, enhanced use of learning technologies, and improved teaching quality. To this end,
we introduced the Exceptional Learning Experiences framework in 2019, which guides programme leaders toincorporate critical concepts such as work and social connection, interdisciplinary collaboration, and authentic
assessment into their programme of study. All our curricula will be assessed against this framework over the
coming years.
The School of Communication Studies won a Vice-Chancellor’s Award for Teaching Excellence for their redesignof the Bachelor of Communication Studies. The new programme is founded on mātauranga Māori and fosters
adaptive and critical thinking, and storytelling capabilities through a range of media. Students master relevant
technologies, and develop self-reflection skills and collaborative work practices. According to QS, AUT is ranked
in the top 200 in the world for Communication and Media Studies.

Key performance indicator

1.2

 Not achieved

Increase the proportion of students who aresatisfied with teaching quality

Target2019

Actual2019

Actual2018

Actual
2017

85%

83%

84%

84%

This result is taken from the Annual Programme Survey conducted by AUT. The survey uses 16 five-point Likert scale items and two qualitative
questions to gather student feedback on the programmes and services we offer. The response rate for this question was 21% (5,174 respondents outof a total population of 24,816) and the margin of error was 1.2%. The overall response rate for this survey was 21% (5,425 respondents out of a total
population of 24,816). Although consistent with other online surveys, this result is lower than 2018.

The proportion of students satisfied with the quality of teaching fell slightly from the previous two years, after
five years of slow but steady growth. AUT sets high standards for teaching quality and under the Learning andTeaching Roadmap, we aim for 90% of students to be satisfied with teaching quality by 2025. In addition to
ongoing initiatives such as the Ako Aronui programme, in 2019 we held the inaugural Teaching and Learning
Conference and established the AUT Academy. The Teaching and Learning Conference focussed on authentic
assessment, which is one of the key pillars of our new exceptional learning experiences framework. The AUT
Academy is a university-wide initiative designed to enhance our collective practice and increase research inlearning and teaching, and demonstrate a commitment to leadership in the field. The 28 founding members
include academics who have been recognised for their exemplary practice, along with representatives from Estatesand Student Services.
The School of Hospitality and Tourism was awarded the United Nations Tourism World Organisation TedQual
accreditation for the Bachelor of International Tourism Management. Among other criteria, this award recognises
the quality of teaching on the programme and its relevance to industry needs. In another faculty-based initiative,
the Faculty of Business, Economics and Law introduced professional development sessions designed to support
new teachers and teaching assistants to improve their practice.

35

PERFORMANCE MEASURES (continued)
Key performance indicator

1.3
 Achieved

Percentage of bachelors graduates whocompleted work-integrated learning while
studying

 Not achieved

Actual2019

Actual2018

Actual
2017

>90%

93%

93%

93%

Work-integrated learning has been a defining feature of AUT’s degree programmes for more than 20 years. It
remains at the core of our philosophical approach to teaching and we established the WIL@AUT group as a way to
improve our practice in this field. Members of WIL@AUT share best practice, current events and relevant researchwith the leaders of work-integrated learning programmes across the University. The 2019 Graduate Survey again
confirmed the value of the work placement programme, with 93% of those respondents agreeing the placement
had prepared or enhanced their capability to work in their chosen industry. More than a quarter (26%) had
subsequently secured employment with the same organisation, and another 16% had been offered but refused acontinuing role.

Key performance indicator

1.4

Target2019

Percentage of available graduates who are
working full timeTarget2019

Actual2019

Actual2018

Actual
2017

>85%

84%

86%

85%

Results are taken from the annual Graduate Survey conducted by AUT, and refer to domestic graduates. AUT graduates from 2018 were invited toparticipate in the 2019 survey, which uses a variety of scales (ranging from yes/no questions to open-ended questions) to provide insight into theirinitial destinations upon completion of their qualification, and their experiences of transition into the workforce. The results either include each of
the responses available to the participants, or combine response options into meaningful categories. Where response options have been combined,
an explanation is included in the body of the report. In total, there were 2,233 responses from the 5,371 domestic graduates invited to participate in
the 2019 survey, with an overall response rate of 42%. There were 1,628 responses to this particular question, leading to a response rate of 30% and amargin of error of 2%. This response rate is higher than other surveys conducted by AUT in 2019.

The proportion of available graduates in full-time employment fell two points to 84% in 2019, a result that iswithin the margin of error. It is central to our ethos to prepare our students for a rewarding and meaningfulcareer. To this end we facilitate work-integrated learning, authentic assessment, and industry engagementin the classroom, supported by a comprehensive personal skills development programme run through the
Employability and Careers Office. Employability Matters is a week-long series of presentations, workshops
and panel discussions held each semester that focuses on employability skills and provides opportunities forstudents to meet with future employers. We also hold discipline-focussed careers fairs throughout the year, and a
volunteering expo each semester, which encourages students to gain experience and personal skills while givingback to the community.

36

ANNUAL REPORT 2019

Clinical Manager
Dr Brenda Flood andstudents in the AUT
Interprofessional
Health Clinic

Kimberley Ouano, Phoebe
Williams, Danielle LeGallais andSonia Broderick, from the Sunday
Blessings team

DELIVERINGCOMPELLING PROGRAMMES
AUT’s Interprofessional Health Clinic provides
specialised services to the community, and a uniquelearning opportunity for health science students.
The clinic emphasises a collaborative approach topatient care, which is shown to create better patient
outcomes, reduce errors, lower costs, and improvecustomer service. With supervision from clinicalexperts, students host courses for clients with arange of health concerns, including Type 2 diabetes
and Parkinson’s disease, or in need of cardiopulmonary rehabilitiation or hydrotherapy. Eachclient receives an individualised care plan, designedby students from a range of disciplines, including
nutrition, psychology, oral health, occupational
therapy, physiotherapy, and nursing.

GOING BEYOND EDUCATEDAND EMPLOYABLE
Sunday Blessings was established by two AUT
students to serve the local homeless community.
Around 100 people receive a delicious meal every
Sunday evening outside Auckland City Library.
Students in the first-year Social Entrepreneurship
paper, taught by Dr Smita Singh, support Sunday
Blessings by building their website, cooking andserving food, and completing assignments where
they analyse the operation and develop initiatives toexpand it further. One such initiative implemented in2019 was to involve the wider AUT community by an‘add a dollar’ opportunity to any purchase at the AUT
cafes.

37

PROFESSOR GAIL PACHECOThe New Zealand Institute for Economic Research (NZIER)
describes Professor Gail Pacheco as conducting “applied
econometric work to inform policy for a better New
Zealand.” A leader in the use of linked administrative data
to inform social policy, her contribution is sought after by
Government, social services agencies, and corporate clientsto improve the lives of ordinary New Zealanders. Her diverse
portfolio of work includes research into the effects of theminimum wage, the prevalence of in-work poverty, ethnic
differences in educational participation, and quantifying thegender pay gap and the size of the ‘motherhood penalty’ for
New Zealand women. The Ministry for Women used heranalysis to produce guidelines for employers to improve
pay equity, and to inform their policy approaches. Her
research into in-work poverty is being used by the Human
Rights Commission, the Treasury, the Child Poverty Unit,
the Ministry of Social Development, and MBIE to determine
a cross-agency approach to poverty reduction. Her
contribution is such that the NZIER presented her with their
Economics Award in 2018, citing the “diversity, quantity andquality” of her work,and her ability to communicate
with a wide public audience. In 2019 shesecured more than $4 million in funding from the
MBIE’s Endeavour Fund to explore the life pathways of New
Zealand adults living with low literacy and numeracy skills.
She gained a further $1.1 million from the Health ResearchCouncil to investigate ethnic differences in uptake ofhealthcare services in early childhood.
In her role as leader of the New Zealand Work ResearchInstitute, Professor Pacheco mentors postgraduate students
as well as her colleagues. Her students describe her as
inspirational and speak of her willingness to connect themwith career and professional development opportunities, andher genuine interest in their work. As winner of the 2019
AUT University Medal, Professor Pacheco exemplifies ouraim to engage with today’s pressing issues, and of using her
skills and inspiring others to make a difference in our world.

38

ANNUAL REPORT 20192

THEME DISCOVERY AND APPLICATION OF

KNOWLEDGE FOR WELLBEING
AND PROSPERITYADVANCING BY
COLLABORATINGINTEGRATINGTEACHING WITHRESEARCH

We will support our
staff in their work ofadvancing knowledge
and in growing thequality and value of
this work, including
its benefit to theirteaching and students

CONTRIBUTINGEXCELLENTRESEARCH

We will pursue
excellence in innovativeand relevant researchfrom fundamental
enquiry to appliedresearch and creative
practice

APPLYING OURRESEARCH

Our research will
increasingly be
project- and missionled in interdisciplinary
teams. We will shareour discoveries anddevelopments inways that allow them
to be widely used,
and will be active inresearch supporting
industry, business andgovernments.

Our collaborations withexternal partners will
enhance our researchcapability and capacity

ENHANCINGSTUDENTRESEARCH

Our research
students will be active
members of ouracademic community,
contributing toour research
programmes andteams. Opportunities
for undergraduate
students to be involved
in research will bea feature of oureducational experience39

HIGHLIGHTS

1,017 28.4M$

doctoral candidates
including

63
45
420

in research contracts signed
includingMāori$13M MBIE Endeavour Fund

Pacific$1M

Marsden Fundinternational$3M

Health Research Council

DIGITAL
DETOXING
Dr Lena Waizenegger’s
team gained international
coverage for research on
digital detoxing

40

ANNUAL REPORT 2019

PERFORMANCE MEASURESKey performance indicator

2.1

 Not achieved

Increase the number of quality-assured
outputs

 Not achieved

Increase the proportion of research-active
academic staff

 Achieved

Actual2018

Actual
2017

2,400

2,032

2,125

2,103

Target2019

Actual2019

Actual2018

Actual
2017

74%

55%

59%

64%

The proportion of academic staff defined as research active declined in 2019. AUT’s recently implemented
Academic Expectations framework sets out clear expectations and standards for research, scholarship, andadvanced professional practice across different levels of academic seniority. This framework will be used todevelop annual plans for academic staff from 2020, and we will closely monitor the impact on the breadth andspread of research activity across the University. As part of this work, we implemented a voluntary enhanced
leaving programme for staff who were not research active. Many staff members who accepted the offer completed
their employment at AUT at the end of 2019. We anticipate being able to see some impact of this initiative from2020 onwards, as we recruit new, research-active staff.

Key performance indicator

2.3

Actual2019

After several years of slow but steady growth, the number of research outputs fell from 2018 to 2019. This result
goes against the broader trend of increasing research breadth and depth at AUT, as is borne out by our PBRF
results. However, it is consistent with the pattern shown after the previous PBRF quality evaluation in 2012, where
research outputs declined the following year, before returning to an upward trend.

Key performance indicator

2.2

Target2019

Increase the value of new research contracts
signed*Target2019

Actual2019

Actual2018

Actual2017$20M$28.4M$15.9M$18.6M* This KPI measures the total value of all new contracts signed during the year. It reports the full value of all contracts signed during 2019,
including several large multi-year contracts. The external research income reported in Note 2(iii) of the Financial Statements measures the actual
income received from research during the year. This amounted to $17.1 million in 2019. In addition, the 2017 figure stated in Investment Plan
2019-2020 was an average of the previous three years’ results. The actual value of new research contracts signed in 2017 was $18.6 million.

In terms of securing new research contracts, 2019 was AUT’s most successful year to date. We signed a record$28.4 million in new contracts, including more than $13 million from the Ministry of Business, Innovation andEnterprise’s Endeavour Fund, along with another $3 million from the Health Research Council, and $1 million from
the Marsden Fund. A significant proportion of private sector funding arose from our established partnerships
with the aquaculture industry, and we conducted research for a range of not-for-profit agencies including sports,
cancer research and men’s health organisations.

41

PERFORMANCE MEASURES (continued)
Key performance indicator

2.4

 Not achieved

Increase the number of doctoral students

Target2019

Actual2019

Actual2018

Actual
2017

1,095

1,017

994

959

Although the number of doctoral candidates has grown 6% since 2017, we fell short of the target for the year. Our
doctoral programme has more than doubled over the last decade, growing from 471 candidates in 2010 to over
1,000 in 2019.
There were 63 Māori and 45 Pacific doctoral candidates in 2019, of whom many have joined the Mai ki Aronui
programme. Mai ki Aronui supports all Māori and Indigenous doctoral scholars to develop the necessary research
and academic and community leadership skills, along with the interdisciplinary networks, to become outstanding
researchers and leaders in their field. At their monthly meetings, the members discuss their work and experiences,learn from senior academic staff, and share their food and cultures.

Key performance indicator

2.5
 Achieved

Increase the proportion of outputs with aninternational co-author

Target2019

Actual2019

Actual2018

Actual
2017

62%

64%

58%

57%

*Note this result has been restated from Investment Plan 2019-2020 due to a change in the figure reported by Incites, who provide the data for this
KPI

Collaborating with international colleagues enhances AUT’s research capability, reputation and capacity. The
proportion of outputs with an international co-author has increased steadily over the past three years. As well as
contributing to the development of our individual researchers and our overall research programme, such projects
can help improve our position on international university rankings. We anticipate this growth will continue,
following on from the research collaborations signed with Shanghai Jiao-Tong, Fudan, and Xinjiang Universities,
and the Shandong Academy of Sciences in 2019.

42

ANNUAL REPORT 2019

Professor Denise Wilson,
Taupua Waiora Research Centre

Professor Michael Luck,
School of Hospitality and Tourism

CONTRIBUTINGEXCELLENT RESEARCH
A study led by Professor Denise Wilson (Ngāti
Tahinga, Tainui), of the Taupua Waiora ResearchCentre, has the potential to change the way social
services support and interact with Māori womenin violent relationships. Wāhine reported feelingmore vulnerable when asking for help than whenremaining in the relationship. Negative interactions
with agencies and social services, and a constant fearof their tamariki being taken into state care, meantthat many wāhine remained in the relationship andinstead used a range of resources and strategies
to protect their children. The final report, E Tū
Wāhine, E Tū Whānau, found these women were
frequently stigmatised, and yet were intelligent
and resourceful, and could be best supported by astrengthened cultural identity (for both wāhine andtāne), and meaningful healing pathways outside theexisting system. It called for agencies and services
to recognise and mitigate their potential to entrap
wāhine and tamariki in unsafe relationships.

APPLYINGOUR RESEARCH
Professor Michael Lück, School of Hospitality andTourism, conducts leading research on the tourism
industry and its impact on our environment. The
popularity of wildlife tourism, including activities
such as whale watching, swimming with dolphins,
and visiting albatross colonies, has the potential
to seriously harm these delicate and uniqueenvironments, and the animals they support.
Professor Lück works with operators to provide
meaningful information to their customers, helping
to reduce the impact of their activities and topromote actions that will combat climate change.

43

PROFESSOR RICHARD SIEGERT
Professor Richard Siegert is an international leader in his
field, a mentor for emerging researchers, and the founderof a new research stream in Pacific health and wellbeing.
Professor Siegert’s work focusses on measuring meaningful
outcomes for people with traumatic brain injury, stroke,and other neurological conditions. This supports a moveaway from viewing these events in terms of disability andimpairment, and towards engagement, participation, andcommunity integration.
In recent years, he has been at the forefront of developing
innovative self-management solutions for patients witha brain injury, received a Marsden Grant to study the link
between depression and inflammation in Pacific youth, andsecured Health Research Council funding to investigate
mindfulness training for stroke survivors.

His research informs,
and is informed by, his rehabilitation
practice. He works closely with Auckland’s ABI
Rehabilitation service, has a role as a clinical psychologist for
the Department of Corrections, and has spent time working
in hospitals around the world. He works closely with the
Burwood Academy of Independent Living in Christchurch,
and the New Zealand Disability and Rehabilitation
Research Alliance. He has served on committees including
the International Neuropsychological Society and theInternational Society of Physical and Rehabilitation
Medicine, and serves on the editorial board of the Disability
and Rehabilitation and Mindfulness journals. Along withmentoring emerging researchers in his field, he supervisedeight doctoral candidates during 2019. Professor Siegert
was the deserving winner of the 2019 Vice-Chancellor’sAward for Individual Academic Excellence.

44

ANNUAL REPORT 20193

THEME RESPONDING TO OURPLACE IN THE WORLD

Students in the BA (Sign Language English Interpreting) practice their skills

RESPECTINGTE TIRITI OWAITANGI

We will partner with
Māori to advanceMātauranga Māori andte reo and achieve thebenefits a university
can provide with andfor Māori.

WORKING FOROUR CITY AND
COUNTRY

We will prioritise
the needs of thepeople of Tāmaki
Makaurau Auckland,and Aotearoa New
Zealand, contributing
to social, economicand environmental
development. We will
be active in our city,
responding to its Māori
heritage and identity,
Pacific communities,
and ethnic diversity,and playing our part inits development as aworld centre.

SHARING OURKNOWLEDGE AT
HOME

Our staff members willcontribute to public
discussion on mattersof general concern andinterest in Aotearoa
New Zealand and our
region of the Pacific.

IMPROVING OURWORK THROUGHINTERNATIONALISATION

Our international
work will meet highstandards, be mutually
beneficial, and designed
to increase our student
and staff opportunities,
teaching and researchcapability, and financial
sustainability.

BEING ARESPONSIBLE
GLOBAL CITIZEN

We will recognise andrespond to our global
responsibilities andopportunities guided
by our commitment
to the United
Nations Sustainable
Development Goals,
and act on theunderstanding that
all our graduates will
be global as well as
national citizens.

45

HIGHLIGHTSTE KORAU
Māori business accelerator
launched in Hokianga

REVOLUTIONISING
ENERGY AWARD
2019 NZI Sustainable BusinessNetwork Awards

HELEN CLARK
FOUNDATION

24%

of all AUT students comefrom lower socio-economic
backgrounds.*
At South Campus, it’s

35%

Partnership* Defined as a score of 9 or 10 on the New Zealand Deprivation Index.

46

ANNUAL REPORT 2019

PERFORMANCE MEASURESKey performance indicator

3.1

 Not achieved

Increase the number of Maori graduates frombachelors degrees

Target2019

Actual2019

Actual2018

Actual
2017

340

291

306

326

The number of Māori bachelors graduates continued to decline in 2019, despite relatively static enrolments andcourse completion rates for students at this level. We have implemented a comprehensive analytics programme
focussed on understanding the key drivers of student success, and this extension in the time taken to completea degree is one of the areas under investigation. We will use these findings to tailor appropriate solutions, inaddition to our regular support services.
These services include Ngā Rā Whakatarea, which is a transition programme for first-year Māori students, andHe Korowai Mana Kē, a peer mentoring scheme where senior Māori students (Tāura Kaiwhatu) provide cultural,academic and social support for junior students (Pia Māori) through their first year. We support the greater use
and fluency of Te Reo Māori at AUT through the Reo Ora programme, which includes Tōhi Toastmasters Cluband Tupu Kupu. Tōhi Toastmasters is a bilingual group aimed at building confidence in leadership and public
speaking. Tupu Kupu is a regular, informal session designed for anyone to practice their reo. The Industry
Connections programme helps Māori students connect with Māori professionals in their chosen industry.
Students build a network that can help them learn more about their intended career, and ensure they are preparedfor future employment or work-integrated learning opportunities.
To encourage more rangatahi into higher education, we have partnerships with our surrounding iwi, including
Ngāti Whātua o Ōrakei, Ngā Puhi, and Waikato-Tainui. Together with Ngāti Whātua, we host an annual university
introduction programme for senior secondary students. We also offer 23 undergraduate scholarships to support
rangatahi who experience financial hardship through their studies

Key performance indicator

3.2
 Achieved

Increase the number of postgraduate students
that are Maori Not achieved

Actual2019

Actual2018

Actual
2017

335

365

336

317

The number of Māori postgraduate students continues to grow, up 15% since 2017. The majority of students(39%) are enrolled in health studies, followed closely by Education, Arts and Creative Arts (37%). Close to a sixth(13%) of students are enrolled in Science, Technology, Engineering or Mathematics programmes, showing strong
growth from 8% in 2017.

Key performance indicator

3.3

Target2019

Increase the number of Pacific graduates frombachelors degrees

Target2019

Actual2019

Actual2018

Actual
2017

400

383

332

369

Although the number of Pacific graduates increased considerably from the previous year, we still fell slightly
short of target. As shown earlier, AUT has achieved the challenging targets for Pacific participation set with TEC,
and has almost double the participation rate of the rest of the sector. We are working through an initial analytics
programme to better understand the drivers of success for students. With the knowledge we have gained, we
have implemented initiatives where students support their peers through weekly homework academies, exam andassignment preparation tutorials, and well-being activities and workshops. Our research has shown that socioeconomic status is a strong predictive factor in a student’s success, and have identified some practical ways we
can support students for whom finances are a challenge. These include providing subsidised healthy food options
at South Campus and child-friendly study sessions during school holidays. We will extend this programme in2020 through the South Project, which includes a formal peer mentoring system for all first-year students, alongwith an extended analytics programme that will guide our curriculum and academic support decisions over the
coming years.

47

PERFORMANCE MEASURES (continued)
Key performance indicator

3.4

 Not achieved

Increase the number of Pacific postgraduate
students

Target2019

Actual2019

Actual2018

Actual
2017

435

379

395

394

Pacific postgraduate enrolments fell from 2018 to 2019. Despite this overall trend, the doctoral programme
continues to grow steadily, up from 34 candidates in 2015 to 45 in 2019. There is a strong Pacific presence atSouth Campus, where 11% of doctoral candidates are of Pacific descent, most of whom are enrolled in the Doctorof Health Science.
AUT offers several scholarships to support postgraduate students in disciplines where Pacific peoples are
traditionally under-represented. The 2019 recipients included a group of postgraduate students pursuing theirstudies in Science.

Key performance indicator

3.5
 Achieved

Increase the proportion of international EFTS

Target2019

Actual2019

Actual2018

Actual
2017

17%

18%

17%

16%

The proportion of international EFTS continued its steady upward trend. The main growth areas for 2019 werebachelors degrees (an increase of 2% from 2018 to 1,637 EFTS in 2019), masters degrees (up 33% to 756 EFTS),
and postgraduate diplomas (up 31% to 529 EFTS). Doctoral enrolments held steady at 295 EFTS, an increase of 1%
from the previous year.

48

ANNUAL REPORT 2019

WORKING FOR OUR
CITY AND OUR COUNTRY
AUT’s Centre for Refugee Education provides the
on-arrival education programme for the 1,000
former refugees who come to New Zealand eachyear under the Government’s quota scheme.
The Centre provides early childhood, primary,secondary and adult education programmes. The
curriculum focusses on orientating students totheir new environment, building relationships withother refugees, and preparing for the challenges
of entering a new society, all the while imparting
English literacy, language and numeracy skills.
Feedback from the students is consistently positive,
and some who settle in Auckland choose to returnto the Centre as interpreters and mentors for those
who come later. The Centre’s associated charity, theAuckland Refugee Families Trust, raises funds toreunite families who have been torn apart by violencein their home countries.

Dr Jeff Seadon, School ofEngineering, Computer andMathematical Sciences

IMPROVING OUR WORKTHROUGH INTERNATIONALISATIONDr Jeff Seadon (School of Engineering, Computerand Mathematical Sciences), is working with Pacificnations and the United Nations Environment
Programme to minimise the impact of waste
generated by tourism. Currently, the average
tourist generates 7 kilograms of waste per day,in comparison to 2.5 kilograms generated by
local people. Much of this waste is burnt, buried
in illegal landfills or dumped. Approximately 80
percent ends up in the ocean, with potentiallydevastating effects on the ecosystem and the local
population. Dr Seadon’s research supports smaller
nations to implement effective waste management
strategies, efficient use of resources, and sustainableinfrastructure.

49

PROFESSOR VALERY FEIGIN
Professor Valery Feigin is helping to transform healthcare
policy and practice around the world through his research
into the epidemiology and prevention of stroke andother neurological disorders. His work on the Global
Burden of Disease (GBD) Study, and the data gathered
through his Stroke Riskometer™ app, provided evidence
that neurological disorders are now the leading causeof disability, and the second leading cause of death, inthe world. This new level of understanding of stroke
epidemiology contributed to a change in the way stroke isclassified in the World Health Organisation’s International
Classification of Diseases.
As Chairman of both the GBD’s Stroke and Traumatic
Brain Injury Panel, and the entire Neurology Section,
Professor Feigin co-ordinates the work of more than 600
international experts. He holds 16 journal editorships withinternational medical journals, including acting as editorin-chief for Neuroepidemiology, and was presented with
the World Stroke Organisation’s President’s Award for his
outstanding contribution to clinical stroke research in 2014.

He was made a
Fellow of the Royal Societyof New Zealand Te Apārangi in 2019,and received their MacDiarmid Medal in 2015.
Professor Feigin leads AUT’s National Institute for Stroke
and Applied Neurosciences, which advances our knowledgeof the prevention, impact, treatment and rehabilitationof a range of disorders, including stroke, traumatic brain
injury, and neuromuscular conditions. Over the past five
years, Professor Feigin has helped secure $5.6 million
in external research funding for AUT, including a recent$1.2 million grant from the Health Research Council tocontinue the long-running Auckland Regional Community
Stroke Study into its fifth stage. He continues to support
emerging researchers in his field, supervising three doctoralcandidates in 2019. The reach and impact of his work issuch that Professor Feigin was the most cited scientist in
New Zealand, and in the top 1% internationally, in 2019. The
Vice-Chancellor was proud to present Professor Feigin withthe 2019 Award for Excellence in Research Impact.

50

ANNUAL REPORT 2019

4
THEME

BUILDING OUR POSITION AS
NEW ZEALAND’S UNIVERSITYOF TECHNOLOGY

Students from the Bachelor ofCommunication Studies at work in thedigital media suite

INCREASING OURSTRENGTH IN
APPLICATION ANDINNOVATION

Throughout our
curriculum of social
sciences, humanities, lifeand physical sciences,engineering andinformation technology,
and creative arts, we will
pursue an emphasis on
professional preparation,refining practice, theapplication of knowledge,
and innovation

LEADING OUR
SECTOR IN
EXTERNAL IMPACT

We will aim to be theleading New Zealanduniversity in theextent and impact of
our interactions withindustry, professions,and the employment andenterprise sectors.

DEMONSTRATINGTECHNOLOGICALEXCELLENCE

All aspects of ouruniversity and its
interactions will be
distinguished andenhanced by theutility and ease of ourtechnology, digital, anddesign systems andsolutions

APPLYING SHAREDTECHNOLOGICALTHEMES

We will increasingly
work across disciplinesand develop key themes
to be expressed in allof our work, such as
design, digital andinformation science,
wellbeing, enterprise,human interaction, andsustainable development.

51

HIGHLIGHTSPROFESSOREDWINA PIO

PROFESSORDAVE TOWNS2019 Te Rangi Hiroa
Medal winner2019 Charles FlemingAward for Environmental
Achievement

PROFESSOR
VALERY FEIGIN

PROFESSOR DAMEMARILYN WARING

elected as a Fellow of
the Royal Society Te
Apārangi

BBC List of World’s Top 100
Women of Influence andInspiration

52

ANNUAL REPORT 2019

PERFORMANCE MEASURESKey performance indicator

4.1

 Not achieved

Increase the number of disciplines included in
the QS World University Rankings by Subject

Target2019

Actual2019

Actual2018

Actual
2017

13

9

13

11

QS ranked nine AUT subjects in 2019. Although this was down from the 2018 result, it still represents an
outstanding achievement. This is particularly the case for Sports subjects, where AUT is named amongst the
global elite at 30th in the world. Our other top-ranked subjects were Art and Design, Accounting and Finance,
Business and Management Studies, Communication and Media Studies, Computer and Information Systems,
Economics, Electrical Engineering, and Mechanical Engineering.
Other rankings agencies also recognise the quality of our programmes. Among other notable achievements, theAcademic Ranking of World Universities (ARWU) placed AUT’s Sport Science programme first in New Zealand and46th in the world and Hospitality and Tourism in the world’s top 75. In addition, THE ranked our Clinical, Preclinical and Health subjects first in New Zealand and in the global top 125. As has been discussed in this Annual
Report, we continue our work to improve the learning experience and relevance of all our qualifications.

Key performance indicator

4.2
 Achieved

Increase staff consultancy revenue Achieved

Actual2019

Actual2018

Actual2017$1.5M$1.75M$1.01M$1.3M

Revenue from staff consultancy activities increased strongly from the two previous years, and exceeded target for
the year by $0.25 million. While local consultancy activities provide a steady income stream, the Centre for Social
Data Analytics (CSDA) continues to make the greatest contribution to our consultancy revenue through their workwith social services agencies in Allegheny County, United States. During the year, the CSDA’s predictive risk model
was presented at the Bloomberg Data for Good Exchange event in New York.

Key performance indicator

4.3

Target2019

Contribute to the public debate

Number of media articles using AUT staff as expert voices
or highlighting AUT research

Target2019

Actual2019

Actual2018

Actual2017>1,000

2,113

3,203

1,224

Along with teaching and research, academic staff make an important contribution through their citizenshipactivities. This includes leading the public debate on matters of wider concern, and sharing their expertisethrough a range of professional, government and community forums. During 2019 there were more than 2,000
media articles that highlighted our research or sought expert opinions from our staff members, including Dr Jeff
Seadon’s expertise on waste minimisation both here and in the Pacific, Professor Sebastian Leuzinger’s workon forests as a super-organism, and Professor Denise Wilson’s ground-breaking study of family violence as
experienced by Māori women. The findings of this study are expected to influence policy and practices for social
services agencies across the country.

53

INCREASINGOUR STRENGTH IN
APPLICATION ANDINNOVATIONThe Physiotherapy team within
the School of Clinical Sciences isleading the way with technologyenabled learning. Two outstanding
teachers, Todd Stretton and Jill
Caldwell, received Vice-Chancellor’sAwards for Teaching Excellence
for their innovative and engaging
use of technology in the classroom.
Mr Stretton creates 360o virtualenvironments for students to practicetheir skills and gain confidence whenworking as part of an inter-disciplinary
health team. Ms Caldwell developed
the Musculoskeletal Physiotherapy
app, to help students learn different
techniques and apply culturally
responsive practices.

DEMONSTRATINGTECHNOLOGICALEXCELLENCE
Launched at the end of 2019, the
AUT App provides quick access to thenecessary resources and information
students need to navigate university
life. Built by an in-house development
team (most of whom are recent
graduates) along with Student Services
and Administration, the app provides
personalised class timetables andassessment results, interactive campus
maps with GPS navigation, useful
information such as support services
and library hours, and opportunities
for students to create their own
pepeha and gain confidence in te reo
Māori. Students also participate in
the app’s continued development bysuggesting new features and voting
for their preferred options. We will
use the app for Orientation and ProjectSouth, a pastoral care programme forSouth Campus students, in 2020.

APPLYING SHAREDTECHNOLOGICALTHEMES
AUT Health Futures is a new panUniversity research initiative launchedin 2019. The programme will
strengthen AUT’s contribution to abetter future by focussing research,innovative and creative capability
towards some serious challenges
faced by New Zealanders and othersaround the world. We recognisethat current health arrangements are
already dispersed inequitably, andwill be insufficient to meet future
demands. While traditional healthand clinical disciplines will clearly
be involved, potential solutions andinnovations will be drawn from acrossall disciplines. The University has
committed $20 million over the next
five years to fund projects under
the scheme, and all proposals musthave an external partner, and provide
applicable, actionable solutions.
Health Futures is expected to be thefirst of several such schemes to be
introduced over the coming years.

54

ANNUAL REPORT 20195

THEME BEING A PLACE WHERE

DESIGNING
WORK THAT ISPURPOSEFUL AND
REWARDING

We work together fora vibrant university
community in which
creativity is nurtured
and achievement
celebrated, and where
everyone’s experienceof work is purposeful,enjoyable, fair andrewarding.

PEOPLE LOVE TO WORK
AND LEARN

BEING ANINCLUSIVECOMMUNITY

We welcome people of
all ethnicities, genders,sexual orientations,religious and politicalbeliefs, socioeconomic
situations, andaccessibility needs,
by improving equity
and creating a senseof shared communityand belonging where
everyone is valued.

ACHIEVING OURGOALS THROUGHEFFECTIVE
ADMINISTRATION

Our systems,
procedures andaccountability
mechanisms will be
designed to help us
all achieve our sharedgoals effectively,
with a high trust,
light touch approachthat challenges us to
improve and supports
the creativity andcollegiality crucial for
our work

MAKING GREATSPACES AND PLACES

We will provide students
and staff with attractive,functional campuses
and facilities andinspiring work andlearning spaces

SUSTAININGOUR FUTURE

We will learn from ourstudents, prospective
students and graduates
the qualities of a desirable
university education andconsistently move towards
developing them.
We will improve ouruniversity rankings,
ratings and accreditations,and build our profile andstanding for the benefitof our students, graduatesand communities.
We will grow ourenrolment to asustainable level for astrong comprehensive,
contemporary university in
New Zealand.
We will secure ourfinancial position withdiversified revenue
streams and effective
spending.

55

HIGHLIGHTS

1

1

#

#

in New Zealand for
GLOBAL RESEARCHIMPACTin New Zealand for
INTERNATIONALOUTLOOK(Times Higher Education,
US News Global Universities Ranking)(Times Higher Education)

1

1

#

#

MILLENNIAL
UNIVERSITY
in Australasia

in New Zealand for
HEALTH SUBJECTS(Times Higher Education)

14#

TOP 30in the world

WORLDWIDE
for Sport(Times Higher Education

TOP 100

TOP 75(Times Higher Education)WORLDWIDE
for Art & Design(Times Higher Education)

16#

WORLDWIDE
for Social Impact(Times Higher Education)WORLDWIDE
for Hospitality &Leisure Management(Times Higher Education)

56

ANNUAL REPORT 2019

PERFORMANCE MEASURESKey performance indicator

5.1
 Achieved

Increase total EFTS

 Not achieved

Actual2019

Actual2018

Actual2017

20,320*20,531

20,133

19,716* 2019 Target EFTS in KPI 5.1 differ from the Budget EFTS presented in Key Facts and Figures. The target for this KPI was set in Investment Plan
2019-2020, and is based on the trajectory required to reach 25,000 EFTS by 2025. Budget EFTS are agreed annually, based on forecast revenue.

AUT continues to grow at a steady rate, towards our goal of 25,000 EFTS by 2025. Total EFTS have increased
4% since 2017, driven by strong gains in mainstream International EFTS (up 17% to 3,219), and steady growth inmainstream domestic students (up 2% to 16,241). While not the only measure of success, EFTS growth is a marker
of our relevance, desirability and excellent reputation within the domestic and international education markets.

Key performance indicator

5.2

Target2019

Increase the number of students at South
CampusTarget2019

Actual2019

Actual2018

Actual
2017

2,600

2,267

2,234

1,911

Although well below target for the year, South Campus has continued to grow steadily and continues to act
as an important gateway to other programmes offered at City and North Campuses. The campus reflects thediverse nature of its surrounding area; 13% of students are Māori and 29% are of Pacific descent. In addition,
35% of students come from low socio-economic areas (a score of 9 or 10 on the New Zealand Deprivation Index),
compared with 24% for AUT as a whole.
The 2019 University Experience Survey revealed that South Campus students are generally satisfied with AUT;
close to nine in ten (87%) were satisfied with the facilities and environment, and 88% would recommend AUT toothers. We continue to review our provision at South Campus and seek to introduce programmes that support theneeds of the surrounding community and employers.

Key performance indicator

5.3
 Achieved

Increase the proportion of students inpostgraduate study

Target2019

Actual2019

Actual2018

Actual
2017

20%

20%

19%

18%

The relative size of our postgraduate cohort has been growing steadily for several years. The number ofinternational postgraduate students grew 36% from 1,263 EFTS in 2017 to 1,712 in 2019, supported by nine percent
growth in domestic EFTS.

57

PERFORMANCE MEASURES (continued)
Key performance indicator

5.4
 Achieved

Increase staff engagement

Target2019

Actual2019

Actual2018

Actual
2017

*

*

78%

*

The staff engagement survey is held on a biennial basis, with the next one due in 2020. With no survey this year,
the University has concentrated on responding to the findings of the 2018 survey. These include further work toembed our values across the University, providing better support and training to prevent bullying and harassment,
and improving management skills at all levels.
The Our Values in Action programme has been in place for several years, providing a framework for staff on ways
to enact tika, pono and aroha in their daily work. In 2019 we re-designed the new staff orientation programme
to include our values and behaviours, and held several workshops, open to all staff, focussed on building on ourvalues.
The last staff engagement survey identified a need for clearer direction when faced with, or an observer of,bullying or harassing behaviour. Our new ‘Respect in Action’ programme is based on the concept of being SAFE:
Speak up; Ask for support; Find options; Educate. Close to 850 staff attended a Respect in Action training session
during the year, while others attended specialised workshops designed to respond to a specific concern.
Finally, we developed the Managing @ AUT programme to improve leadership and management capabilities
across the organisation. More than 200 managers (36%) from all levels attended the course in 2019,placing us well on track towards our aim for 100% of managers to have completed theprogramme within three years. Managing @ AUT covers a range of topics
including AUT’s social, financial and legislative environments,
expectations of managers, and opportunities for
personal and managerial development.

MAKING GREATSPACES AND PLACES
AUT’s newest building won top honours at the
New Zealand Architecture Awards. Ngā Wai Hono
received the 2019 Ted McCoy Award for Educational
Architecture. The jury commended the way thebuilding joins together several disparate parts of thecampus and functions as a hands-on learning andresearch environment for students in the School ofEngineering, Computer and Mathematical Sciences.
Ngā Wai Hono is also a highly efficient building, withdesign features that maximise the use of natural lightand control fluctuating temperatures.

DESIGNING WORK THAT ISPURPOSEFUL AND REWARDING
Our first analysis of AUT’s gender pay gap took placein 2019. We found that our median gap was 9.5%,
and the average gap was 12.7%. This was largely
due to occupational segregation; although women
represent 59% of all employees across the University,
they make up two-thirds (64%) of staff in the lowest
paid quartile (including customer service and lowerlevel administration), and only 46% of staff in thehighest (including managerial and professorial roles).
We will introduce a range of initiatives to mitigate
this gap, including unconscious bias training,
tracking and reporting of progression and promotion
outcomes, and reviewing our recruitment processes.

REPORTS

Ko Ngā Pūrongo

59

STATEMENT OF THE COST OF OUTPUTSThe University’s activities contribute to three broad classes of outputs. These outputs are learning and teaching, researchand scholarship, and engagement with communities. The following table outlines the cost of providing these outputs.

University
2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

Learning and teaching

302,401

288,071286,795

Research and scholarship

67,74462,27660,337Engagement with communities

41,40037,194

39,116TOTAL COST OF OUTPUTS

411,545

387,541

386,248OUTPUTS

60

ANNUAL REPORT 2019COMPULSORY STUDENT SERVICES FEES
For the year ended 31 December 2019
AUT seeks student input on the student services levy through the AUT Students’ Association (AUTSA). The consultation processincluded a question and answer session with the Vice-Chancellor, Group Director Student Services & Administration, AUTSA
President and Chief Financial Officer. The session was shared live on social media. In addition, the Group Director (Student Services
and Administration) met with the President and General Manager of AUTSA to discuss the types of services to be delivered and theapportionment of levy funding. The Compulsory Student Services Fee (CSSF) was set at $646.00 (GST inclusive) per full-time student
for 2019 and may be borrowed against a student loan. The fee is used to fund key services that assist student success, retention andoverall wellbeing while enrolled at AUT. It is compulsory for all students except those on exchange or studying by distance.

STUDENT ADVISORY COMMITTEE
AUT’s formal partnership with AUTSA is through the Student
Advisory Committee, which also provides oversight and guidanceon the allocation of the CSSF. The membership consists of equal
numbers of representatives from AUT and AUTSA. The committee
is responsible for ensuring the best value for students andpromoting student engagement with learning and with AUT. The
following report outlines the investment in service provision in
2019.

AUTSA SERVICE LEVEL AGREEMENTADVOCACY AND LEGAL ADVICEAUTSA provides AUT students with independent and confidential
support, advice and advocacy services. This includes assistancefor legal matters, disciplinary action, harassment, complaints,
employment and tenant rights, grade appeals, and general
information and translation of AUT rules and policies. Alluniversity-related issues are resolved or escalated to a higher
level to be heard and resolved.
CLUBS AND SOCIETIESAUTSA offers a range of student-run social, sustainability,
religious, academic and cultural clubs through which students
can meet new people, participate in events, and get involved incampus life.
MEDIA
AUTSA supports the production and dissemination of information
by students for students through Debate magazine and online
media.
EMPLOYMENT INFORMATIONAUTSA provides students with employment information andfunding for Student Job Search (SJS). SJS is an employment
agency targeted at finding employment for students.

AUT SERVICES
CAREERS ADVICE AND GUIDANCEAUT offers career counselling, employability development
services and job search support to prospective and current AUT
students. AUT’s career specialists provide advice and support
students to make informed decisions about their career path andstudy programme, internship opportunities and to improve theiremployability. AUT also delivers the AUT Edge Award and Beyond
AUT, which formally acknowledges students’ involvement involunteering, leadership and employability activities.

COUNSELLING AND PASTORAL CARE
AUT has a range of pastoral, mental health and counselling
services to facilitate our diverse students’ integration into
university life and provide on-going personal, spiritual,
psychological and emotional support. The University offers
specialised services to students with an impairment or disability,or who are Māori, Pacific, Chinese, international, refugees, newmigrants, elite athletes, or part of the Rainbow community. Staff
include professionals with psychosocial qualifications.
The University also operates a comprehensive orientation andtransition programme, and an early intervention service topromote the success and retention of our students.
FINANCIAL SUPPORT AND ADVICEAUT offers students information and advice to help manage theirmoney, including assistance with StudyLink issues, budgeting,and banking. In addition, the University has a fund to assist
students experiencing financial hardship.
HEALTH SERVICES
The health centres at City and North Campuses offer integrated
general practice medical, nursing, and wellbeing services tosupport students’ overall health and wellbeing. The Centres
are part of the Auckland Primary Health Organisation. Routine
consultations are free for domestic students who register with
one of the centres as their primary health care organisation. At
North Campus, the Student Medical Centre, counselling andmental health services are delivered at NorthMed, a purpose-built
integrated health clinic near the campus.
For students based at South Campus, the University offers a nurse
and mental health services, as well as access to funded doctor
consultations with four local medical practitioners.
CHILDCARE SERVICES
AUT hosts two childcare facilities – one at AUT City Campus (runby AUT) and an independently-run crèche at North Campus. Bothcentres provide excellent facilities and services, including school
holiday programmes. AUT also provide comfortable and privaterooms for breastfeeding at all three main campuses.
SPORT, RECREATION AND CULTURAL SERVICES
AUT delivers a range of recreational and competitive sport eventsand activities. Each campus has a fitness centre offering quality
fitness equipment, group classes and personalised exercise
programmes, and access to sport and exercise services.
The University also offers a wide range of cultural events anddiversity-related activities to promote diversity and inclusion on
campus, as well as to support student engagement.

61

$000s
Compulsory
student
services fee

Totalrevenue

Other

Total
expenses

Surplus/(deficit)

AUTSA SERVICE LEVEL AGREEMENT
Advocacy and legal advice

306

-

306

306

-

Advocacy

-

-

-

122

(122)

Legal advice - tenancy

-

-

-

184

(184)

134

-

134

133

1

-

-

-

11

(11)
(122)

Clubs and societies
GrantsActivities
Media

-

-

-

122

320

-

320

320

-

-

-

-

173

(173)

Print media - Debate magazine
OnlineEmployment information

-

-

-

147

(147)

15

-

15

15

(15)

Student Job Search

-

-

-

15

411

-

411

395

16

AUTSA O Week

-

-

-

145

(145)

Recreational activities and events

-

-

-

80

(80)

Student on-campus events

-

-

-

170

(170)

Financial support and advice

-

-

-

17

(17)

Sports, recreation and cultural services

Foodie Godmother
TOTAL AUTSA SERVICE LEVEL AGREEMENT

-

-

-

17

(17)

1,186

-

1,186

1,186

-

1,297

-

1,297

1,317

(20)

1,297

-

1,297

1,317

(20)

5,545

496

6,041

6,126

(85)

AUT SERVICES
Careers information, advice, and guidance
Employability lab and support
Counselling and pastoral care
Mental health and counselling services

1,143

14

1,157

1,175

(18)

Disability services

718

464

1,182

1,193

(11)

Student advisory pastoral support

893

-

893

907

(14)

Student wellbeing

1,291

-

1,291

1,311

(20)

Student conduct and support

293

-

293

297

(4)

Maori student pastoral care

513

18

531

538

(7)

Pacific student pastoral care

392

-

392

398

(6)

Orientation and transition

302

-

302

307

(5)

Financial support and advice

459

-

459

466

(7)

182

-

182

185

(3)

Financial information and advice
Financial hardship subsidy
Health services
Medical health centres
Childcare services
Childcare subsidy
Childcare centre

277

-

277

281

(4)

825

761

1,586

1,599

(13)

825

761

1,586

1,599

(13)

216

735

951

954

(3)

144

-

144

146

(2)

72

735

807

808

(1)

971

825

1,796

1,811

(15)

Competitive sports

221

49

270

273

(3)

Gyms and recreation

592

776

1,368

1,377

(9)

Diversity and cultural engagement

158

-

158

161

(3)

9,313

2,817

12,13012,273(143)

10,4992,817

13,316

13,459(143)

Sports, recreation and cultural services

TOTAL AUT STUDENT SERVICES
TOTAL

The administration of Compulsory Student Services Fees is integrated within the University’s normal operations. All income and expenditureassociated with the provision of student services is separately accounted for in the University’s accounting system.

62

ANNUAL REPORT 2019

AN INCLUSIVE COMMUNITY
AUT Directions to 2025 describes our commitment to being an
inclusive community.
We welcome people of all ethnicities, genders, sexual
orientations, religious and political beliefs, socioeconomic
situations, and accessibility needs, by improving equity andcreating a sense of shared community and belonging where
everyone is valued.

We seek to enact tika, pono and aroha through a diverse andinclusive culture, and where every member of our community has
the support necessary for their success. This includes providing
equal employment and educational opportunities, celebrating
diverse cultures and backgrounds, and promoting the wellbeing andmana of all our staff and students.

EQUAL OPPORTUNITIESThe University has identified several groups who are underrepresented at AUT, amongst both staff and students. For students,
these include Māori and Pacific peoples, learners with disabilities,
and those from refugee backgrounds. We also provide specialised
support for students from the Rainbow community. As described
previously, we have successfully removed many of the barriers forMāori and Pacific peoples to enrol at AUT; 10% of AUT students are
Māori, and 18% are of Pacific descent. However, there remains asignificant gap in achievement for these two groups.

Over the last few years, AUT has embarked on a comprehensive
analytics programme to deepen our understanding of the driversof success. We found socio-economic status to be a significant
predictive factor, and a disproportionate number of Māori andPacific students experience some degree of economic disadvantage.
As a result, we have identified a range of practical steps we cantake to better support our students, particularly at South Campus
which has a high proportion of students from lower socio-economic
backgrounds. These include subsidised healthy food options,and child-friendly study groups during holiday periods. Positive
relationships with peers and staff members were another important
contributor to students’ success, and we will pilot a new engagement
and connection project at South Campus in 2020. We continue ouranalytics work and will use this evidence base as the foundation for
future initiatives.
As described earlier in this report, AUT has implemented a rangeof support services specifically for Māori and Pacific students.
These include the Tōhi Toastmasters Club and Tupu Kupu, a weekly
conversation club for students and staff who wish to improve theirreo. He Korowai Mana Kē and Ngā Ra Whakatarea are designed tosupport the success of undergraduate Māori students, particularly inthe first year of their degree, while the wānanga series is designed
to support Māori postgraduate students. The University provides
scholarships for postgraduate students in areas where Pacificpeoples are traditionally under-represented. In 2019, this included agroup of doctoral candidates pursuing scientific studies in the Cook
Islands.

63

The Out@AUT student network supports students from the
Rainbow community, with more than 250 members across all three
campuses. AUT employs a Rainbow Community Coordinator toprovide specialist support and advice for students, and we are strong
supporters of the local Pride events. Students have the option to
identify as Gender diverse in their university records, and we provide
gender neutral bathroom facilities on all three campuses. We were
New Zealand’s first university to achieve Rainbow Tick certification,and have retained this for five years to date.
AUT offers a comprehensive support service for students withdisabilities. In addition, all new campus developments are built
to meet the gold standard set by advocacy group Be.Accessible,
and we recently achieved their full organisational accreditation.
This accreditation is based on four criteria: employment practices;
accessible experiences for students, staff and visitors; accessible
communications; and organisational strategy. Our Employability
Lab also has a partnership with Workbridge to assist students withdisabilities into meaningful employment.
AUT offers scholarships to support students from refugee
backgrounds into higher education. One such scholarship was
voluntarily established by a group of AUT students and staff, whowrote a cookbook featuring traditional recipes and the stories ofstudents and alumni who have a refugee or migrant background.
All proceeds from the book, Tastes of Home, are used to fund thescholarship.
For staff, the University has a long-term strategy to increase thenumber of Māori and Pacific academic staff, along with the numberof Māori, Pacific, and female staff in senior positions. The Early
Career Academic programme was introduced in 2015 and offers up
to six permanent, full-time research-active lecturer positions per
year to Māori and Pacific doctoral graduates. Successful applicantsjoin the network of others in the programme, are mentored throughthe process of developing their teaching skills and establishinga publication record, and receive guidance on their professional
development from a member of the Senior Leadership Team.
Another four staff were appointed in 2019 (three Māori and one
Pacific), taking the total number in the programme to 20.
The number of Māori, Pacific, and female staff in leadership
positions has remained on a steady upward trajectory for the last few
years. More than 130 women are now in leadership roles, including
84 academic staff (up from 77 in 2018). The number of Māori andPacific senior staff also increased, reaching 27 in 2019, up from 24
the previous year.
AUT researchers, including University Medal-winner Professor
Gail Pacheco, have been at the forefront of work on determining
the size and complexity of the gender pay gap in New Zealand. On
completion of the first analysis of AUT’s own pay gap, we found thatthe median gap was 9.5%, and the average was 12.7%. As AUT has
strict equal pay policies and procedures in place, this gap is largely
due to the phenomenon known as occupational segregation; female
staff members tend to be over-represented in lower-paid roles,
and less well represented at the highest levels. We have a range
of initiatives intended to address this issue, including training to
identify unconscious bias and a review of recruitment processes. We
have commenced tracking the results of applications for promotion(for academic staff) and progression (for allied staff). Promotion andprogression applications have a high standard for acceptance, and in
2019, the success rate for female allied staff applying for progression
was 100%, along with 80% for female academic staff. The successrate for Māori and Pacific staff applying for either progression or
promotion was 100%.

64

ANNUAL REPORT 2019

BEING ARESPONSIBLE GLOBAL CITIZEN
AUT, along with many others, is making the world a better place.
The depth and effectiveness of our commitment was confirmedin the inaugural THE University Impact Rankings, where AUT
placed 16th in the world. This ranking assesses the social
impact of universities against the UN Sustainable Development
Goals, and considers the effect of our research, the quality ofour teaching on sustainability, and our use of sustainabilityand wellbeing-focussed practices across the organisation. We
placed second for Sustainable Cities and Communities (Goal 11),
based on our research into issues such as affordable housing,investment in arts and heritage, and remote working practices.
AUT is ninth for Gender Equality (Goal 5), in recognition of thecontribution of our female academic staff, our equality-focussed
policies, and our outreach to female students in the traditionallymale-dominated disciplines of science, technology, engineering,and mathematics.

Through our South Campus, we continue to address inequalities
and seek to foster economic growth in one of New Zealand’s
most diverse regions. As is described earlier in this Annual
Report, South Campus attracts a high proportion of students
from low socio-economic backgrounds, and our range of

support services, university preparation courses, and social
networks are designed to help students overcome the often
formidable barriers they must face in pursuit of higher
education. As well as investing in South Auckland, the campus
acts as an important gateway to educational opportunities
across AUT’s other campuses.

The Living Laboratories project exemplifies the local and global
impact of AUT’s research. In partnership with Ngāti WhātuaŌrākei, a multi-disciplinary team from AUT are integrating
ecological science with mātauranga Māori to restore native
bush at Pourewa Creek. This initiative adapts the Nature-Based
Solutions (NBS) framework to New Zealand’s unique biodiversity
and cultural context, and contributes to the Government’s One
Billion Trees programme. Led by Associate Professor Hannah
Buckley (School of Science), the team have established soil andwater profiles, and collected baseline data on existing flora andfauna. We are planting more than 12,000 trees in experimental
plots, which over time will help determine optimal planting
regimes for trees such as tōtara, rimu, matai, tawa, and maire.
The project was part of an NBS Compendium presented at the
UN Climate Action Summit in New York in September.

65

We continue to improve biodiversity on our own land, planting
more than 600 native trees, plants and shrubs across our three
campuses during the year. As part of a class project students
planted 20 fruit trees, and vegetable and herb gardens at North
Campus, and we established another 25 plants that will provide
a winter food supply for the local bee population. There are
currently four beehives located at North campus.

AUT won the Revolutionising Energy category at the Sustainable
Business Network’s annual awards for our work in reducing
energy consumption and costs, and CO2 emissions. The award
citation described the “impressive progress” we have madetowards our goal of halving emissions by 2025. This included
a range of energy efficient measures including conversions
to LED lighting, installing energy-efficient window film andwater-cooled chillers, and using technology to manage ourbuildings more efficiently. Moreover, our electric inter-campus
shuttle bus has 80% fewer emissions per trip than a diesel
bus. Through these initiatives and others, we reduced our CO2
emissions by 181 tonnes between 2016 and May 2019, and areusing the cost savings to fund more energy efficiency projects.
The A1 building, currently under development at North Campus,
will follow the low-emissions model of Mana Hauora at South
Campus.

We aim to halve the amount of waste going to landfill by
2025 and in 2019 introduced an organic waste collection in a
City Campus administration building. We anticipate that thisinitiative will divert approximately eight tonnes of organic wastefrom landfill each year. A commercial company composts theorganic waste from City Campus, including from our cafes andrestaurants, and the new compost hub at North Campus allows
us to create and use our own compost on site.

Staff and students enthusiastically participated in our first Green
Impact challenge. In this pilot year, ten staff teams from acrossthe University competed to implement small but significant
sustainability initiatives within their own areas, and identify
opportunities for larger-scale changes. Their work was audited
by a group of students, who received training and accreditationfrom the International Society for Sustainability Professionals.
Finally, AUT and the University of Auckland jointly hosted
the New Zealand Sustainable Development Goals Summit in
September. More than 400 delegates attended the summit,
hearing from key national and international speakers including
Prime Minister Jacinda Ardern, Rt Hon Helen Clark, Dr Daniel
Hikuroa (University of Auckland), Fale Andrew Lesa (Asia
Development Bank Aotearoa), and Dewy Sacayan (Generation
Zero).

66

ANNUAL REPORT 2019

Associate Professor Barbara Bollard
on a research trip to Antarctica

SUPPORTING
GREAT TEACHING
AND EXCELLENT RESEARCHThis section looks at two key enablers of AUT’s mission: information technology and the AUT Library.

INFORMATION TECHNOLOGY
A robust, secure and fit-for-purpose virtual infrastructure
underpins all that we do. It enables exceptional learning
experiences that prepare our learners for the changing
technologies they will encounter during their working lives.
It allows our staff to collaborate with local and international
colleagues, increasing the depth and impact of their research. It
creates an efficient and effective way for students and staff tointeract with the University, improving the experience for all our
stakeholders.
More than 12,000 students are now using the AUT App, which
we launched in late 2019. The app includes personalisedclass timetables, assessment results, and interactive campus
maps, along with useful information such as support services
and Library hours. To ensure the project is student directed,
students can use the app to suggest and vote for new features tobe included in future updates. Students can also use the app toconnect with Tua, AUT’s student chatbot, for any questions they
have regarding university life.

Protecting our information security requires constant vigilanceon the part of AUT’s Information and Communication
Technology (ICT) Services. We introduced two-factor
authentication during the year to ensure the privacy andprotection of our institutional data, research, and intellectual
property. The two-factor approach also protects our financial
security by guarding against theft and damages. In addition, ICT
Services held a university-wide cyber security campaign. The
campaign included advice on maintaining personal security as
well as the University’s, and included briefings for senior leadersalong with communications and events for all staff and students.
To improve the efficiency of our administration, ICT Services
automated several processes within our student management
system and upgraded our remote desktop imaging service.
These initiatives will speed the processing of student
enrolments, and reduce workload at the start of each Semester.
We have also commenced investigations into an upgradeor replacement of two key systems, which perform research
management and learning management functions.

67

AUT LIBRARY
The Library contributes to AUT Directions by supporting ourresearch communities, encouraging the sharing of knowledge,
enhancing the research skills of our staff and students, andfostering student success.
We added another two peer-reviewed journals to Tuwhera,
our open-access research site, in 2019, taking the total
number to ten. Along with the journals, Tuwhera hosts the
Pacific Journalism monographs, and Hospitality Insights fora Sustainable Industry, an accessible summary of the latest
research for the use of industry representatives, practitioners,
and the public. The monographs and research summaries areedited and managed by AUT’s academic staff, with support fromdiscipline-led advisory groups.
We expanded and enhanced Course Resources, which is aplatform for lecturers to share readings and media and online
resources with their students, and redesigned the Librarywebsite to improve the user experience.
This year, we continued our work with faculties to embed
key skills such as information literacy and academic writing
into the curricula. In addition to a drop-in academic writing
service, general workshops, online examples and videos, we
collaborate with teaching staff to create in-class sessions for a

specific paper or programme. This approach allows Library andLearning Support staff to reach a wider range of students, someof whom may not have previously sought assistance, and toprovide a more targeted service. We also held more than 5,000
personal consultations on research and information literacy, andredeveloped the AUT Copyright app.
As well as strengthening the capabilities of other staff members,
Library staff are also committed to their own development.
This has involved professional development in a range of
topics including biculturalism, copyright and open accesstechnologies, the Green Impact challenge and sustainability
issues, metrics and measures of performance, and userexperience methodologies.

68

ANNUAL REPORT 2019

MAKING GREAT SPACES AND PLACESAUT Directions states that we will provide attractive andfunctional campuses, and create inspiring work and learning
environments. We took some important steps towards this aim
in 2019, with approval for a large-scale development at North
Campus, steady progress on a student accommodation building,and closures of older facilities at City Campus.
After several years of planning, Council approved funding for
the A1 Building at North Campus. The new building will provide
modern learning spaces, staff accommodation, social andcollaborative learning spaces, and a new student hub and café.
It will link through to the Library, and provide a much-needed
central focus point for the campus. A1 is expected to be readyfor occupation in 2022.
Construction continues on a student accommodation buildingat City Campus, in time for occupation in 2021. The building
will accommodate 700 additional students along with campus
recreation facilities and some staff offices. This will allow us tocontinue attracting more international students, in line with our
AUT Directions goals.

Architects renderingof the new A1 building

Also at City Campus, we were able to take advantage ofadditional space created by Ngā Wai Hono, and close threefloors in the WD and the WW buildings. This reflects the
University’s desire to provide more modern, fit-for-purpose
learning environments for both students and staff. It also
reduces the significant maintenance costs associated withthese older, sub-standard facilities. Our building projects
have a high focus on sustainability, which leads to significant
energy savings. More modern building management systems,
occupancy sensors, automated processes and fit-for-purpose
learning environments contribute to a significant reduction in
the University’s carbon footprint.
AUT had a total land area of 29.8 hectares and 243,237m2 inbuildings in 2019. The land area remains the same as in 2018,
while the buildings have increased from 234,250m2, due tothe inclusion of several floors in the WO building. These are
all dedicated to carparks and were not previously included in
calculations of our total space. The combined net book value ofall land and buildings owned by the University is $914 million.

FINANCIAL
STATEMENTS

70

ANNUAL REPORT 2019

STATEMENT OF FINANCIAL PERFORMANCEFor the year ended 31 December 2019

University

Note

Consolidated

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

REVENUE
Government grants

2

184,175

172,910170,218

184,175

172,910170,218

Student-derived revenue

2

193,928

179,287

180,397

193,928

179,287

180,397

Research revenue

2

17,062

13,69915,854

17,062

13,69915,854

Other revenue

2

33,65635,64636,31035,62636,56837,113428,821401,542

402,779

430,791

402,464

403,582

Total revenue
EXPENSES
Personnel costs

3

247,878

237,832

239,092

247,878

237,832

239,092

Supplies and other costs

4

107,106

89,581

93,126108,076

90,29893,503

11, 1253,001

54,412

48,78053,001

54,412

48,780Total expenses before finance costs

407,985

381,825

380,998

408,955

382,542

381,375

Operating surplus before finance costs

20,836

19,717

21,781

21,836

19,922

22,207

3,560

5,716

5,250

3,560

5,716

5,250

17,276

14,001

16,531

18,276

14,206

16,957---(1,067)(1,078)628

17,276

14,001

16,531

17,20913,12817,585

Depreciation, amortisation and impairment

Finance costs

5

Operating surplus
Share of associate and joint venture’s surplus/(deficit)

10

NET SURPLUS

Explanations of major variances against budget are provided in Note 31.
The accompanying notes form part of these Financial Statements.

71

STATEMENT OF OTHER COMPREHENSIVEREVENUE AND EXPENSE
For the year ended 31 December 2019
University

Note

2019
Actual$000s

Net surplus

Consolidated
2019
Actual$000s

2018
Actual$000s

2019
Budget$000s

2018
Actual$000s

2019
Budget$000s

17,276

14,001

16,531

17,20913,12817,585OTHER COMPREHENSIVE REVENUEAND EXPENSE
Items that may be reclassified subsequently
to surplus/(deficit)
Net gain/(loss) on other financial assets atfair value through other comprehensive
revenue and expense

20

-

-

(1)

485

-

(654)

Reclassification to surplus/(deficit) on
derecognition of other financial assets

20

-

-

40

-

-

40

Net gain/(loss) on cash flow hedges

20

(719)

-

(564)

(719)

-

(564)

20

81,621-30,29881,621-30,29810, 20

-

-

-

8,147

-

-

Total other comprehensive revenue
and expense

80,902-

29,77389,534-

29,120TOTAL COMPREHENSIVE REVENUEAND EXPENSE

98,17814,00146,304

106,743

13,12846,705Item that will not be reclassified tosurplus/(deficit)
Net gain on asset revaluations
Share of other comprehensive revenue of
joint venture

Explanations of major variances against budget are provided in Note 31.
The accompanying notes form part of these Financial Statements.

72

ANNUAL REPORT 2019

STATEMENT OF FINANCIAL POSITION
University
As at 31 December 2019
Note

2019
Actual$000s

2019
Budget$000s

Consolidated
2018
Actual$000s

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

CURRENT ASSETS
Cash and cash equivalents
Receivables

6
7

679
40,3299,486
46,546705
58,291

3,335
40,731

11,717
46,6262,850
58,355

Other financial assets

8

10,906--

11,706

600

500

132

108

135

132

108

135

5,992

2,305

2,887

5,998

2,305

2,896

-

-

102

-

-

102

58,03858,445

62,12061,902

61,356

64,838Inventories
Prepayments
Derivative financial instruments

18

Total current assets
NON-CURRENT ASSETS
Investment in subsidiaries
Investments accounted for using theequity method
Other financial assets

9

1,675

100

1,675

-

-

-

10

23,52823,52823,52852,59943,38045,519

8

91

192

191

3,064

2,498

2,117

Property, plant and equipment

11975,908

878,009

906,080

975,908

878,009

906,080

Intangible assets

12

8,971

15,445

15,9398,971

15,445

15,939Total non-current assets

1,010,173

917,274

947,413

1,040,542

939,332

969,655

TOTAL ASSETS

1,068,211

975,719

1,009,533

1,102,444

1,000,688

1,034,493

CURRENT LIABILITIESPayables13

54,48150,426

61,90755,516

51,171

62,391

Deferred revenue

14

92,66876,75894,23592,82576,75894,235

Employee entitlements

15

16,105

12,682

15,570

16,105

12,682

15,570

Provisions

16

-

34

42

-

34

42

Finance lease borrowings

17

6,140

5,565

5,565

6,140

5,565

5,565

Derivative financial instruments

18

492

101

124

492

101

124

169,886

145,566

177,443

171,078

146,311

177,927

Total current liabilities
NON-CURRENT LIABILITIES
Borrowings

19

96,900147,515130,100

96,900147,515130,100

Employee entitlements

15

11,584

9,002

9,832

11,584

9,002

9,832

Provisions

16

3,639

2,727

2,978

3,639

2,727

2,978

Finance lease borrowings

17

13,404

15,884

14,941

13,404

15,884

14,941

Derivative financial instruments

18

1,442

971

1,061

1,442

971

1,061

Total non-current liabilities

126,969

176,099

158,912

126,969

176,099

158,912TOTAL LIABILITIES

296,855

321,665

336,355

298,047

322,410

336,839

EQUITY
General equity

20

379,101

371,889

361,825

403,372

395,962

386,163

Revaluation reserves

20

392,255

282,165

311,353

401,025

282,316

311,491

771,356

654,054

673,178

804,397678,278

697,654

1,068,211

975,719

1,009,533

1,102,444

1,000,688

1,034,493

Total equity
TOTAL LIABILITIES and EQUITY

Explanations of major variances against budget are provided in Note 31. The accompanying notes form part of these Financial Statements.

73

STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2019

University

Consolidated

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

673,178

640,053625,299

697,654665,150

648,941

Net surplus

17,276

14,001

16,531

17,20913,12817,585

Other comprehensive revenue

80,902-

29,77389,534-

29,120Total comprehensive revenue

98,17814,00146,304

106,743

13,12846,705

-

-

1,575

-

-

1,575

-

-

-

-

-

433

-

-

1,575

-

-

2,008

771,356

654,054

673,178

804,397678,278

697,654

Note

Total equity at the beginning of the year
COMPREHENSIVE REVENUEOTHER EQUITY MOVEMENTS
Equity interest transferred to subsidiary
Share of joint venture's net asset changes

10

Total other equity movements

TOTAL EQUITY AT THE END OF THE YEAR

Explanations of major variances against budget are provided in Note 31.
The accompanying notes form part of these Financial Statements.

74

ANNUAL REPORT 2019

STATEMENT OF CASH FLOWSFor the year ended 31 December 2019

University

Consolidated

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

2019
Actual$000s

2019
Budget$000s

2018
Actual$000s

Receipts from government grants

184,175

172,802170,218

184,175

172,802170,218

Receipts from student-derived revenue

211,371

186,287

182,472

211,371

186,287

182,472

Receipts from service activities

43,10738,79738,36743,92940,371

38,820Interest received

36

203

201

61

229

202

Dividend received

11

-

13

11

-

13

9,084

10,065

9,953

9,335

10,834

10,076

Payments to employees(245,294)(246,045)(243,071)(245,294)(246,045)(243,071)

Payments to suppliers(104,851)(89,923)(86,755)(105,126)(92,076)(87,173)(3,560)(5,309)(5,250)(3,560)(5,309)(5,250)

(44)

2,729

2,686

(56)

2,699

2,674

94,03569,606

68,834

94,846

69,792

68,981

85

-

7,340

85

-

7,340

Purchases of property, plant and equipment(40,612)(54,463)(55,515)(40,612)(54,463)(55,515)

Purchases of intangible assets(2,844)(5,737)(1,657)(2,844)(5,737)(1,657)

Receipt on maturity/(placement) of short-term
investments(10,906)--(11,206)-

303

NET CASH FLOW FROM INVESTING ACTIVITIES(54,277)(60,200)(49,832)(54,577)(60,200)(49,529)

Proceeds from/(repayment of) borrowings(33,200)(8,209)(11,450)(33,200)(8,209)(11,450)

Proceeds from/(repayment of) finance lease(6,584)(1,057)(7,148)(6,584)(1,057)(7,148)NET CASH FLOW FROM FINANCING ACTIVITIES(39,784)(9,266)(18,598)(39,784)(9,266)(18,598)

Net increase/(decrease) in cash and cash equivalents

(26)

140

404

485

326

854

Cash and cash equivalents at beginning of the year

705

9,346

301

2,850

11,391

1,996

679

9,486

705

3,335

11,7172,850

Note
CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from other revenue

Interest paid
Net GST received/(paid)
NET CASH FLOW FROM OPERATING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment

CASH FLOWS FROM FINANCING ACTIVITIESCASH AND CASH EQUIVALENTS AT END
OF THE YEAR

6

Explanations of major variances against budget are provided in Note 31.
The accompanying notes form part of these Financial Statements.

75

STATEMENT OF CASH FLOWS (continued)
For the year ended 31 December 2019

University
2019
Actual$000s
NET SURPLUS FROM OPERATIONS

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

17,276

16,531

17,20917,58553,001

48,78053,001

48,780

Increase/(decrease) in employee entitlements - term portion

1,752

83

1,752

83

Increase/(decrease) in reinstatement provision

619

557

619

557

Net (gain)/loss on foreign currency translation

(405)

(190)

(405)

(190)

Net (gain)/loss on foreign exchange derivatives

131

(118)

131

(118)

Net (gain)/loss on financial assets

100

-

(293)

(212)

4,323

5,723

4,323

5,723

-

-

1,067

(628)

59,521

54,83560,19553,995(Increase)/decrease in receivables

17,962(13,939)

17,503(13,914)(Increase)/decrease in prepayments(3,105)

1,087(3,105)

1,080

ADJUSTMENTS FOR ITEMS NOT INVOLVING CASH
Depreciation, amortisation and impairment

Other non-cash items
Share of associate and joint venture’s (surplus)/deficit
TOTAL ITEMS NOT INVOLVING CASH
MOVEMENTS IN WORKING CAPITAL

3

53

3

53

Increase/(decrease) in payables

3,327

6,787

3,990

6,702

Increase/(decrease) in deferred revenue(1,567)

13,983(1,567)

13,983535(7,443)535(7,443)

17,155528

17,359461

Net (gain)/loss on disposal of property, plant and equipment

83(3,060)83(3,060)TOTAL ITEMS CLASSIFIED AS INVESTING ACTIVITIES

83(3,060)83(3,060)94,03568,834

94,846

68,981(Increase)/decrease in inventories

Increase/(decrease) in current employee entitlements
TOTAL MOVEMENTS IN WORKING CAPITALADD/(LESS) ITEMS CLASSIFIED AS
INVESTING ACTIVITIESNET CASH FLOWS FROM OPERATING ACTIVITIES76

ANNUAL REPORT 2019

NOTES TO THE
FINANCIAL STATEMENTS
For the year ended 31 December 2019

NOTE 1

STATEMENT OF ACCOUNTING POLICIESThe principal accounting policies applied in the preparation of these Financial Statements are set out below. The Financial Statements
comprise Financial Statements for Auckland University of Technology (the University) as an individual entity, and for the consolidated
entity consisting of the University, its subsidiaries, interest in associate and joint venture interests (the Consolidated Group).
REPORTING ENTITY

Functional and presentation currency

Auckland University of Technology is a University under the
Auckland University of Technology (Establishment) Order 1999 andis domiciled in New Zealand. The relevant legislation governing
the University’s operations includes the Crown Entities Act
2004 and the Education Act 1989. The primary objective of the
University is to provide tertiary education and research services forthe benefit of the community rather than making a financial return.
For the purposes of financial reporting, the University and theConsolidated Group are considered to be Public Benefit Entities(PBE).

The Financial Statements are presented in New Zealand dollars
and all values are rounded to the nearest thousand dollars, unlessotherwise stated. The functional currency of the University and its
subsidiaries is New Zealand dollars.
Standards issued and not yet effective and not early adopted
Standards and amendments, issued but not yet effective that havenot been early adopted, and which are relevant to the University
and the Consolidated Group are:

The Financial Statements of the University and the Consolidated
Group for the year ended 31 December 2019 were authorised for
issue by the Council of Auckland University of Technology on 6
April 2020.

PBE IPSAS 41 Financial Instruments
PBE IPSAS 41 Financial Instruments replaces PBE IPSAS 29
Financial Instruments: Recognition and Measurement and PBE
IFRS 9 Financial Instruments and is effective for financial years
beginning on or after 1 January 2022, with earlier adoption
permitted.

BASIS OF PREPARATION

The main changes compared to PBE IPSAS 29 that are relevant to
the University are:

The Financial Statements have been prepared on the going
concern basis, and the accounting policies have been appliedconsistently throughout the period.
Statement of compliance
The Financial Statements of the University and the Consolidated
Group have been prepared in accordance with the requirements of
the Crown Entities Act 2004, as referred to in section 203 of the
Education Act 1989, which includes the requirement to comply
with generally accepted accounting practice in New Zealand (NZ
GAAP). The Financial Statements have been prepared to comply
with Public Benefit Entity International Public Sector AccountingStandards (PBE IPSAS) for a Tier 1 entity.
Measurement base
The Financial Statements have been prepared on an accruals basis
and are based on the historical cost convention as modified by
the revaluation of certain assets and liabilities as identified in thesignificant accounting policies. These include the revaluation offinancial assets and liabilities (including derivative instruments) at
fair value through other comprehensive revenue and expense andcertain classes of property, plant and equipment.

• New financial asset classification requirements for determining
whether an asset is measured at fair value or amortised cost.
• A new impairment model for financial assets based on
expected losses, which might result in the earlier recognition of
impairment losses.
The University and the Consolidated Group intend to adopt PBE
IPSAS 41 for the 31 December 2022 financial year. The University
and the Consolidated Group have not yet assessed in detail theimpact of the new standard.
Amendment to PBE IPSAS 2 Statement of Cash Flows
An amendment to PBE IPSAS 2 Statement of Cash Flows requires
entities to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from financing
activities, including both changes arising from cash flows andnon-cash changes. This amendment is effective for annual periods
beginning on or after 1 January 2021, with early application
permitted. The University and the Consolidated Group do notintend to early adopt the amendment.
PBE FRS 48 Service Performance Reporting
PBE FRS 48 replaces the service performance reporting
requirements of PBE IPSAS 1 and is effective for reporting periods
beginning on or after 1 January 2021. The University and theConsolidated Group have not yet determined how application of
PBE FRS 48 will affect its statement of service performance.

77

NOTE 1

STATEMENT OF ACCOUNTING POLICIES (continued)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Budget figures

Significant accounting policies are included in the notes to which
they relate.
Significant accounting policies that do not relate to a specific noteare outlined below.

The University budget figures are those approved by the Councilof the Auckland University of Technology before the beginningof each financial year. The consolidated group budget figures
have been compiled from the Council-approved University
Budget figures and the budgets of each subsidiary. They havebeen prepared in accordance with generally accepted accounting
practice and are consistent with the accounting policies adopted by
the Council in preparing these Financial Statements.

Basis of consolidation
The consolidated Financial Statements comprise the Financial
Statements of the University, its subsidiaries, interest in an
associate and joint venture interests. The consolidated financial
statements are prepared by adding together like items of assets,
liabilities, equity, revenue, expenses, and cash flows of entities in
the Consolidated Group on a line-by-line basis. All intra-groupbalances, transactions, revenue, and expenses are eliminated on
consolidation.
The consolidated financial statements are prepared using uniform
accounting policies for like transactions and other events in similar
circumstances. The consolidation of an entity begins from the datethe University obtains control of the entity and ceases when the
University loses control of the entity.
Foreign currency translation
Transactions in foreign currencies are translated to New Zealanddollars at the foreign exchange rate ruling at the date of thetransaction. Monetary assets and liabilities denominated in foreign
currencies at the balance date are translated to New Zealanddollars at the foreign exchange rate ruling at that date. All foreignexchange differences arising on translation are recognised in thesurplus or deficit.
Goods and Services Tax (GST)
Auckland University of Technology is a GST-registered person
as defined by the Goods and Services Act 1985. The Financial
Statements have been prepared on a GST-exclusive basis withthe exception of receivables and payables, which are stated GST
inclusive. When GST is not recoverable on input tax then it isrecognised as part of the related asset or expense.
The net amount of GST recoverable from, or payable to, theInland Revenue Department at balance date is included as part ofreceivables or payables in the Statement of Financial Position.
The net GST paid to, or received from, the Inland Revenue
Department, including the GST relating to investing and financing
activities, is classified as an operating cash flow in the Statement of
Cash Flows.
Commitments and contingencies are disclosed exclusive of GST.
Income tax
The University and its subsidiaries are exempt from the payment ofincome tax as they are treated by the Inland Revenue Department
as charitable organisations for the purposes of the Income Tax Act.
Accordingly, no provision for income tax has been made.

Critical accounting estimates and assumptions
In preparing these Financial Statements, the University and theConsolidated Group have made estimates and assumptions
concerning the future. These estimates and assumptions
may differ from the subsequent actual results. Estimates andassumptions are continually evaluated and are based on historicalexperience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are:
•
•
•
•
•
•

Other financial assets – see note 8
Revaluation of land and buildings – see note 11
Depreciation and amortisation – see note 11 and note 12Long service leave and retirement leave – see note 15
Research and study leave – see note 15
Reinstatement provision – see note 16

Critical judgements in applying accounting policies
The University has made the following critical judgements inapplying accounting policies:• Research revenue recognition – see note 2• Crown-owned land and buildings – see note 11• Research and study leave – see note 15

78

ANNUAL REPORT 2019

NOTE 2REVENUE2(i) GOVERNMENT GRANTS

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Student Achievement Component (SAC) Funding

158,591

149,510

158,591

149,510

Performance Based Research Funding (PBRF) - Note (a)19,90815,203

19,90815,203Mangere Refugee Centre

2,209

2,158

2,209

2,158

Tertiary students with disabilities

464

455

464

455

Māori and Pacific Peoples

1,266

1,221

1,266

1,221

431

428

431

428

1,306

1,243

1,306

1,243

184,175

170,218

184,175

170,218

Early childhood education centre - Note (b)Other Government funding (excl. research contracts)
TOTAL GOVERNMENT GRANTS

Fees-free funding previously reported as Government grants has been reclassified to student-derived revenue in Note 2 (ii) toconform with the current year’s presentation of funding, where fees-free is considered part of tuition fees.
University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

NOTE (a): PBRF
Provisional PBRF received
Prior year PBRF final wash-up
TOTAL PBRF

19,91015,217

19,91015,217

(2)

(14)

(2)

(14)

19,90815,203

19,90815,203

University
NOTE (b): Early childhood education centre

2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Revenue
Early childhood education funding

431

428

431

428

Other revenue *

304

310

304

310

Total revenue

735

738

735

738

Operating expenses

712

722

712

722

Total expenditure

712

722

712

722

NET SURPLUS

23

16

23

16

Expenditure*Other revenue represents early childhood education fees received from parents and is reflected as part of the trading revenue in Note 2(iv).

79

NOTE 2REVENUE (continued)2(ii) STUDENT-DERIVED REVENUE

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Domestic student tuition fees

69,13766,557

69,13766,557Fees-free funding

20,156

20,652

20,156

20,652

International student tuition fees

92,89381,602

92,89381,602Compulsory student service fees

10,498

10,428

10,498

10,428Other student-related fees

1,244

1,158

1,244

1,158

193,928

180,397

193,928

180,397

TOTAL STUDENT-DERIVED REVENUE

2(iii) RESEARCH REVENUE

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Research revenue received

17,21015,821

17,21015,821

Movement in research revenue carried forward

(148)

33

(148)

33

17,06215,854

17,06215,854TOTAL RESEARCH REVENUE

2(iv) OTHER REVENUE

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Trading revenue

18,082

18,38718,082

18,387

Student accommodation revenue

5,719

5,641

5,719

5,641

Interest revenue

36

201

62

222

Dividend revenue

11

13

11

13

Net gain on foreign exchange derivatives

-

118

-

118

405

190

403

190

-

3,060

-

3,060

9,369

8,643

11,315

9,425

34

57

34

57

33,65636,31035,626

37,113

Net foreign exchange gains
Gain on disposal of property plant and equipment
Other operating revenue
Donations received
TOTAL OTHER REVENUE

80

ANNUAL REPORT 2019

NOTE 2REVENUE (continued)

ACCOUNTING POLICY
Revenue is measured at fair value. The University recognises
revenue from individual categories of transactions as follows:
Student Achievement Component (SAC) funding
SAC funding is the University’s main source of operational
funding from the Tertiary Education Commission (TEC). The
University considers SAC funding to be non-exchange in natureand thus recognises SAC funding as revenue when the course
withdrawal date has passed, based on the number of eligible
students enrolled in the course at that date and the value of thecourse.
Fees-free funding
Fees-free funding from TEC is considered to be non-exchange
in nature and is recognised as revenue when the course
withdrawal date for an eligible student has passed. The
University has presented funding received for fees-free as partof tuition fees. This is on the basis that receipts from the TEC
are for payment on behalf of the student as specified in therelevant funding mechanism.
Domestic student tuition fees
Domestic student tuition fees are subsidised by government
funding and are considered non-exchange in nature. Revenue
is thus recognised when the course withdrawal date has passed,
which is when a student is no longer entitled to a refund forwithdrawing from the course.
International student tuition fees
International student tuition fees are treated as exchangetransactions, and recognised as revenue on a course
percentage of completion basis. The percentage of completionis measured by reference to the days of the course completed
as a proportion of the total course days.
Performance-Based Research Fund (PBRF)
The University considers PBRF funding to be non-exchange
in nature. PBRF funding is specifically identified by the TEC
as being for a funding period as required by section 159YA
of the Education Act 1989. The University recognises its
confirmed allocation of PBRF funding at the commencementof the specified funding period, which is the same as the
University’s financial year. PBRF revenue is measured based on
the University’s funding entitlement adjusted for any expectedadjustments as part of the final wash-up process. Indicative
funding for future periods is not recognised until confirmed forthat future period.
Research revenue
For an exchange research contract, revenue is recognised ona percentage completion basis. The percentage of completionis measured by reference to the actual research expenditure
incurred as a proportion to total expenditure expected to be
incurred.
For a non-exchange research contract, the total funding
receivable under the contract is recognised as revenue
immediately, unless there are substantive conditions in thecontract. If there are substantive conditions, revenue isrecognised when the conditions are satisfied. A condition
could include the requirement to complete research to thesatisfaction of the funder to retain funding or return unspent
funds. Revenue for future periods is not recognised where thecontract contains substantive termination provisions for failure
to comply with the requirements of the contract. Conditions
and termination provisions need to be substantive, which isassessed by considering factors such as contract monitoringmechanisms of the funder and the past practice of the funder.
Other grants received
Other grants are recognised as revenue when they become
receivable unless there is an obligation in substance to returnthe funds if conditions of the grant are not met. If there issuch an obligation, the grants are initially recorded as grants
received in advance when received and recognised as revenue
when the conditions of the grant are satisfied.
Donations, bequests, and pledges
Donations and bequests are recognised as revenue when
the right to receive the fund or asset has been established,
unless there is an obligation in substance to return the funds
if conditions of the donation or bequest are not met. If there
is such an obligation, they are initially recorded as revenue inadvance when received and recognised as revenue when theconditions are satisfied. Pledges are not recognised as assets orrevenue until the pledged item is received.
Trading revenue
Trading revenue includes revenue from the sales of goods andservices, which is recognised when the product is sold to thecustomer, or the service provided.
Student accommodation services
Revenue from the provision of student accommodation
services is recognised on a percentage completion basis. Thisis determined by reference to the number of accommodation
days used as a proportion of the total accommodation days
contracted for with the individual.
Interest and dividends
Interest revenue is recognised by accruing on a time proportion
basis the interest due for the investment. Dividends arerecognised when the right to receive payment has been
established.

81

NOTE 2REVENUE (continued)

CRITICAL JUDGEMENTS IN APPLYING ACCOUNTINGPOLICIES• Whether the funder has substantive rights to the research
output. This is a persuasive indicator of exchange or nonexchange.

Research revenue• How the research funds were obtained. For example, whether
through a commercial tender process for specified work orfrom applying to a general research funding pool.

The University exercises its judgement in determining whether
funding received under a research contract is received in
an exchange or non-exchange transaction. In making its
judgement, the University considers factors such as thefollowing:• Nature of the funder.
• Specificity of the research brief or contract.
Judgement is often required in determining the timing ofrevenue recognition for contracts that span a balance date andmulti-year research contracts.

NOTE 3PERSONNEL COSTS

University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

ACADEMIC
Salaries and wages

128,114

124,607

128,114

124,607

Defined contribution plan employer contributions

3,479

3,381

3,479

3,381

Movement in employee entitlements

1,915

(105)

1,915

(105)

Other staff-related costs

6,000

6,210

6,000

6,210

139,508

134,093

139,508

134,093

Salaries and wages

98,236

95,821

98,236

95,821

Defined contribution plan employer contributions

2,675

2,606

2,675

2,606

(37)

(135)

(37)

(135)

7,496

6,707

7,496

6,707

108,370

104,999

108,370

104,999

247,878

239,092

247,878

239,092

ADMINISTRATION

Movement in employee entitlements
Other staff-related costs

TOTAL PERSONNEL COSTSACCOUNTING POLICYSuperannuation schemes
Defined contribution schemes
Employer contributions to KiwiSaver and two of the National
Provident Fund (NPF) Superannuation schemes, namely the
Lump Sum National Scheme and the Pension National Scheme,
are accounted for as defined contribution schemes and arerecognised as an expense in the surplus or deficit as incurred.

Defined benefit schemes
The University belongs to the Government Superannuation
Fund (GSF) scheme, which is a defined benefit scheme
managed by the Government Superannuation Fund Authority.
The University has no underwriting responsibilities as any
shortfall is met by the Government. As such, employer
contributions to the GSF scheme are accounted for as a defined
contribution scheme.

82

ANNUAL REPORT 2019

NOTE 4

SUPPLIES AND OTHER COSTS

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Faculty costs

38,23933,28538,23933,285

Occupancy/property costs

16,59015,657

16,59015,657

Operating lease costs - buildings

9,584

9,707

9,584

9,707

Operating lease costs - equipment

1,117

699

1,117

699

20,125

17,741

20,125

17,741

Financial Statements audit (*)

218

196

233

211

Performance Based Research Fund audit

20

11

20

11

Change in provision for impairment of receivables

768

(51)

768

(51)

Uncollectible receivables written off

674

311

674

311

Councillors’ fees (Note 22)

245

245

245

245

Net loss on foreign exchange derivatives

131

-

131

-

-

-

-

-

Administration expenses
Fees to principal auditor:

Provision for impairment of receivables:

Net foreign exchange losses

83

-

83

-

Other operating costs

19,312

15,325

20,267

15,687TOTAL SUPPLIES AND OTHER COSTS

107,106

93,126108,076

93,503

Loss on disposal of property plant and equipment*Includes audit fees of $10,570 (2018: $10,570) for Auckland University of Technology Foundation paid on its behalf by Auckland University of Technology.

Operating lease commitments as lessee
Auckland University of Technology leases property, plant and equipment in the normal course of its business. Most of theseleases have a non-cancellable term of 36 months. The commitments for future aggregate minimum lease payments, in relation to
non-cancellable operating leases contracted at the balance date but not recognised as liabilities, are as follows:
University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Not later than one year

5,764

6,237

5,764

6,237

Later than one year and not later than five years

16,716

21,816

16,716

21,816

-

1,823

-

1,823

22,48029,87622,48029,876Later than five years
TOTAL NON-CANCELLABLE OPERATING LEASESThe University leases 24,800 square metres (2018: 25,103 square metres) of office space in Auckland for teaching, research andadministrative purposes. Most of these leases can be renewed at the University’s option, with rents set by reference to current
market rates for items of equivalent age and condition.
Other contractual commitments
AUT has an agreement with Pramoja Investments Limited(operating as Cedar Investments NZ Limited). Under the termsof the agreement, Cedar Investments NZ Limited purchaseda parcel of land on the corner of Wakefield Street andMayoral Drive and has begun the construction of a student
accommodation facility, three additional floors of leasable

educational support spaces, a gym & recreational centre andretail space. Upon completion of the facility, the Development
Agreement requires the University to enter into an operatinglease for the educational, retail and recreational spaces for aterm of 15 years with a right of renewal for a further 15 years.

83

NOTE 4

SUPPLIES AND OTHER COSTS (continued)
The operating lease commitments figures relating to this noncancellable lease have not been included in the table above on
the basis that the lease has yet to be finalised and executed byeither party meaning there is insufficient financial information
available to reliably calculate the lease commitments at yearend.

ACCOUNTING POLICY
Operating leases
An operating lease is a lease that does not transfer substantially
all the risks and rewards incidental to ownership of an asset
to the lessee. Lease payments under an operating lease arerecognised as an expense on a straight-line basis over the lease
term. Lease incentives received are recognised in the surplus ordeficit as a reduction of rental expense over the lease term.

NOTE 5

University

FINANCE COSTS

2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Interest on bank borrowings

2,538

4,203

2,538

4,203

Interest on finance leases

1,022

1,047

1,022

1,047

TOTAL FINANCE COSTS

3,560

5,250

3,560

5,250

ACCOUNTING POLICY
Borrowing costs are expensed in the financial year in which they are incurred.

NOTE 6

CASH AND CASH EQUIVALENTS

University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Cash at bank and on hand

679

705

3,335

2,850

TOTAL CASH AND CASH EQUIVALENTS
AS PER THE STATEMENT OF CASH FLOWS

679

705

3,335

2,850

The carrying value of cash at bank and short-term deposits withmaturity dates of three months or less approximates their fairvalue.
The weighted average effective interest rate for cash and cash
equivalents was 1.07% (2018: 0.67%).
Financial assets recognised in a non-exchange transaction thatare subject to restrictions
The cash and cash equivalents balance of the Consolidated
Group includes an amount of $1.79 million (2018: $1.52 million)
that relates to unspent funds received that are subject torestrictions. These unspent funds relate to donations andbequests received by the Auckland University of Technology
Foundation. The restrictions generally specify how the funds
are required to be used for specified purposes as outlined bydonors.
ACCOUNTING POLICY
Cash and cash equivalents include cash on hand, deposits heldon call with banks, other short-term highly liquid investmentswith original maturities of three months or less, and bankoverdrafts. Bank overdrafts are shown within borrowings as
current liabilities in the statement of financial position.

84

ANNUAL REPORT 2019

NOTE 7

RECEIVABLES

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Trade receivables

1,984

4,147

2,489

4,210

Less: provision for impairment

(763)

(820)

(763)

(820)

1,221

3,327

1,726

3,390

Student fee receivables

38,70952,492

38,70952,492

Less: provision for impairment(1,055)(230)(1,055)(230)

37,65452,26237,65452,262Other receivables

507

275

507

276

Accrued revenue

732

648

732

648

-

1,727

-

1,727

215

52

112

52

40,32958,29140,73158,355

Tertiary Education Commission
Related parties
TOTAL RECEIVABLES

Student fee receivables are non-interest bearing and are generally paid in full by the course start date. Therefore, their carrying
value approximates their fair value.
Trade receivables and other receivables are non-interest bearing and are generally settled on 30-day terms. Therefore, thecarrying value of other receivables approximates their fair value.
Movements in the provision for uncollectability of trade receivables and student receivables are as follows:
University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

TRADE RECEIVABLES
Opening provisions

820

776

820

776

Provisions made/ (reversed) during the year

101

108

101

108

Trade receivables written-off during the year

(158)

(64)

(158)

(64)

CLOSING PROVISIONS FOR IMPAIRMENT OF
TRADE RECEIVABLES

763

820

763

820

Opening provisions

230

325

230

325

Provisions made/ (reversed) during the year

1,341

152

1,341

152

Student fee receivables written-off during the year

(516)

(247)

(516)

(247)

CLOSING PROVISIONS FOR IMPAIRMENT OFSTUDENT FEE RECEIVABLES

1,055

230

1,055

230

STUDENT FEE RECEIVABLES

85

NOTE 7

RECEIVABLES (continued)
The ageing profile of trade receivables and student receivables at the balance date is as follows:
University
Gross
$000s

Impairment
$000s

557

-

31 – 60 days

676

61 – 90 days
Over 90 days

Consolidated
Net
$000s

Gross
$000s

Impairment
$000s

Net
$000s

557

699

-

699

(120)

556

848

(120)

728

259

(151)

108

325

(151)

174

492

(492)

-

617

(492)

125

Total trade receivables

1,984

(763)

1,221

2,489

(763)

1,726

2018 – Under 30 days

2,646

-

2,646

2,687

-

2,687

31 – 60 days

442

-

442

448

-

448

61 – 90 days

210

(123)

87

213

(123)

90

Over 90 days

849

(697)

152

862

(697)

165

4,147

(820)

3,327

4,210

(820)

3,390

36,843-36,84336,843-36,84331 – 60 days

271

(38)

233

271

(38)

233

61 – 90 days

116

(17)

99

116

(17)

99

Over 90 days

1,479

(1,000)

479

1,479

(1,000)479

Total student fee receivables

38,709(1,055)37,65438,709(1,055)37,6542018 – Under 30 days

50,891-50,89150,891-50,891

31 – 60 days

147

(5)

142

147

(5)

142

61 – 90 days

105

(4)

101

105

(4)

101

Over 90 days

1,349

(221)

1,128

1,349

(221)

1,128

Total student fee receivables

52,492(230)

52,26252,492(230)

52,262TRADE RECEIVABLES
2019 – Under 30 days

Total trade receivables
STUDENT FEE RECEIVABLES
2019 – Under 30 days

All receivables greater than 30 days in age are considered tobe past due. There are no provisions for impairment of otherreceivables and no amounts are overdue.
Due to the large number of student fee receivables, theimpairment assessment is performed on a collective basis, basedon an analysis of past collection history and debt write-offs.

ACCOUNTING POLICY
Receivables are recognised initially at fair value andsubsequently measured at amortised cost, less any provision for
impairment.
Collectability of receivables is reviewed on an on-going basis.
Receivables which are known to be uncollectable are written off.
A provision for impairment of receivables is established when
there is objective evidence that the University will not be able
to collect all amounts due according to the original terms of
payment.

86

ANNUAL REPORT 2019

NOTE 8OTHER FINANCIAL ASSETS
University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

CURRENT PORTION
10,906-

11,706500

10,906-

11,706500

Unlisted shares (at cost, less impairment)

91

191

91

191

Unlisted shares held by subsidiaries

-

-

2,973

1,926

91

191

3,064

2,117

10,997

191

14,7702,617

Term deposits with maturities greater than 3 months

NON-CURRENT PORTIONTOTAL OTHER FINANCIAL ASSETSUNLISTED SHARESEQUITY INVESTMENTS

Unlisted shares held by the University are carried at cost lessany impairment as either the fair value of unlisted sharescannot be reliably determined using a standardised valuation
technique or due to cost not being materially different to fairvalue. There is currently no intention to dispose of theseinvestments.

Equity investments are designated at fair value through othercomprehensive revenue and expense.

Unlisted shares held by subsidiaries are carried at fair value.
The fair value of these shares is determined based on the mostrecent price of the equity investment. Adjustments are madeto the most recent price of investment when there is evidenceof events subsequent to that investment that have affected thevalue of the company.
IMPAIRMENT

After initial recognition, the shares are measured at their fairvalue, with gains and losses recognised in other comprehensive
revenue and expense, except for impairment losses, which arerecognised in the surplus or deficit. When sold, the cumulative
gain or loss previously recognised in other comprehensive
revenue and expense is transferred to the surplus or deficit.
A significant or prolonged decline in the fair value of theinvestment below its cost is considered objective evidence ofimpairment. If impairment evidence exists, the cumulative loss
recognised in other comprehensive revenue and expense istransferred from equity to the surplus or deficit.

There are no impairment provisions for other financial assets.
None of the financial assets are either past due or impaired.

Impairment losses on equity investments recognised in thesurplus or deficit are not reversed through the surplus ordeficit.

ACCOUNTING POLICY

Equity investments that do not have a quoted market pricein an active market and whose fair value cannot be reliably
determined using a standardised valuation technique arecarried at cost less impairment.

Financial assets are initially recognised at fair value plustransaction costs unless they are carried at fair value throughsurplus or deficit, in which case the transaction costs arerecognised in the surplus or deficit.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONSTERM DEPOSITS
Term deposits are initially measured at the amount invested.
Where applicable, interest is subsequently accrued and added
to the investment balance.

Unlisted equity investments are generally not publicly traded.
As there may be no open market to establish an independent
value for certain unlisted equity, there can be no assurance
that a determination of fair value for an unlisted equity will beobtainable in the market, or that there will be a market for theunlisted equity.

87

NOTE 9INVESTMENT IN SUBSIDIARIESName of entity

Ownership interest

Country ofincorporation/
operation

Nature ofbusiness

Auckland University of Technology
Foundation

New ZealandTo receive donations andendowments that are used topromote and support academic
excellence at the University

100%

100%

AUT Ventures Limited

New ZealandCommercialisation of research andprovision of consulting services.

100%

100%

2019

2018

University
2019
Actual$000s

2018
Actual$000s

INVESTMENT IN SUBSIDIARIES--

AUT Ventures Limited

1,675

1,675

TOTAL INVESTMENT IN SUBSIDIARIES

1,675

1,675

Auckland University of Technology Foundation

All subsidiaries have a balance date of 31 December.
ACCOUNTING POLICYThe University consolidates in the consolidated financial
statements those entities it controls. Control exists where theUniversity is exposed, or has rights, to variable benefits (either
financial or non-financial) and has the ability to affect the nature
and amount of those benefits from its power over the entity.

Power can exist over an entity if, by virtue of its purpose anddesign, the relevant activities and the way in which the relevant
activities of the entity can be directed has been predeterminedby the University. Investments in subsidiaries are measured atcost in the University’s financial statements.

88

ANNUAL REPORT 2019

NOTE 10INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Investment in associate

5,000

5,000

8,986

9,149

Investment in joint venture

18,52818,52843,61336,370TOTAL INVESTMENTS ACCOUNTED FOR
USING THE EQUITY METHOD

23,52823,52852,59945,519INVESTMENT IN ASSOCIATEThe University has a 15% (2018: 15%) interest in an associate, Waterfront Theatre Limited, which develops, owns and manages
the ASB Waterfront Theatre. Waterfront Theatre Limited is domiciled and operates in New Zealand. The consolidated group’s
interest in Waterfront Theatre Limited is measured using the equity method of accounting in the consolidated financial statements,
reflecting the significant influence the University has with a representative on the Board of Directors of Waterfront Theatre Limited.
Summarised financial information of the Consolidated Group’s
investment in Waterfront Theatre Limited:

Consolidated
2019
Actual$000s

2018
Actual
$000s

280

124

Non-current assets

31,72932,928Current liabilities

(476)

(433)

-

-

Net assets

31,53332,619

Share of associate’s net assets

4,730

4,893

435

431

(1,084)(171)

Other comprehensive revenue and expense--

Total comprehensive revenue and expense(1,084)(171)

Share of associate’s net surplus/(deficit)

(163)

(26)

Balance at the beginning of the year

9,149

9,175

Share of associate’s net surplus/(deficit)

(163)

(26)

CARRYING AMOUNT AT THE END OF THE YEAR

8,986

9,149

Current assets

Non-current liabilities

Revenue
Net surplus/(deficit)

RECONCILIATION OF CARRYING AMOUNT OFINVESTMENT IN ASSOCIATE:

The associate had no contingent liabilities or capital commitments as at 31 December 2019 (2018: Nil).

89

NOTE 10INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)

INVESTMENT IN JOINT VENTURE
The University has a 50% (2018: 50%) interest in AUT/Millennium Ownership Trust, a joint venture established by the University and
the North Shore Bays Community Fitness Centre Trust to promote community fitness and well-being and to support elite sport.
AUT/Millennium Ownership Trust is domiciled and operates in New Zealand.
Summarised financial information of the Consolidated Group’s
investment in AUT/Millennium Ownership Trust:

Consolidated
2019
Actual$000s

2018
Actual$000s

Current assets

2,471

2,254

Non-current assets

86,612

72,143Current liabilities(1,150)(949)

Non-current liabilities

(372)

(372)

Net assets

87,56173,076

Share of joint venture’s net assets

43,78136,538

Revenue

9,774

12,528Net surplus/(deficit)(1,808)

1,308

Other comprehensive revenue and expense

16,293-

Total comprehensive revenue and expense

14,485

1,308

Share of joint venture’s net surplus/(deficit)

(904)

654

Share of joint venture’s other comprehensive revenue/(expense)

8,147

-

Balance at the beginning of the year

36,37035,283

Share of joint venture’s net surplus/(deficit)

(904)

654

Share of joint venture’s other comprehensive revenue/(expense)

8,147

-

-

433

43,61336,370

RECONCILIATION OF CARRYING AMOUNT OF INVESTMENT
IN JOINT VENTURE:

Share of joint venture's net asset changes
CARRYING AMOUNT AT THE END OF THE YEAR
The joint venture had no contingent liabilities or capital commitments as at 31 December 2019 (2018: Nil).

90

ANNUAL REPORT 2019

NOTE 10INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)
ACCOUNTING POLICY
Associate
An associate is an entity over which the University has
significant influence and that is neither a subsidiary nor aninterest in a joint venture. Investment in associate is measured
at cost in the University’s financial statements. Investment
in associate is accounted for in the consolidated financial
statements using the equity method of accounting.
Joint venture
A joint venture is a joint arrangement whereby the parties thathave joint control of the arrangement have rights to the net
assets of the arrangement. Joint control is the agreed sharingof control of an arrangement by way of a binding arrangement,
which exists only when decisions about the relevant activities
require the unanimous consent of the parties sharing control.
Investment in joint ventures is measured at cost in the
University’s financial statements. Investment in joint venture isaccounted for in the consolidated financial statements using theequity method of accounting.

Equity method of accounting in consolidated financial
statements
Under the equity method of accounting, the investment
is initially recognised at cost and the carrying amount isincreased or decreased to recognise the consolidated group’s
share of the change in net assets of the entity after the dateof acquisition. The consolidated group’s share of the surplus
or deficit is recognised in the consolidated group surplus ordeficit. Distributions received from the investee reduce thecarrying amount of the investment in the consolidated financial
statements.
If the share of deficits of the entity equals or exceeds theinterest in the entity, the consolidated group discontinues
recognising its share of further deficits. After the consolidated
group’s interest is reduced to zero, additional deficits areprovided for, and a liability is recognised, only to the extent
that the consolidated group has incurred legal or constructive
obligations or made payments on behalf of the entity. If theentity subsequently reports surpluses, the consolidated groupwill resume recognising its share of those surpluses only
after its share of the surpluses equals the share of deficits notrecognised.

88

24,895

21,15325,337959

Computers and electronic equipment

Furniture and fittings

Leasehold improvements

2,544

Specialty electronics

46,697

182,254

Buildings

TOTAL CROWN–OWNED LAND & BUILDINGS

1,126,585

47,002TOTAL ASSETS UNDER FINANCE LEASESTOTAL PROPERTY, PLANT AND EQUIPMENT

14,49732,505Computers and electronic equipment

Buildings

ASSETS UNDER FINANCE LEASES

135,557Land

CROWN–OWNED LAND AND BUILDINGS

897,329

4,263

WIP – others

TOTAL AUT-OWNED ASSETS

8,466

WIP – buildings

427

56,715

Plant and equipment

Works of art

2,509

Office equipment

Motor vehicles

819

69,079Library collection

32,582

5,623

-

5,623

(81,761)(25,722)(56,039)

108,720

3,785

8,325

-

-

3,699

-

(515)

2,269

4,531

29,680561,251

Buildings

56,039$000s

30,421

-

-

-

3,312

(78)

3,390

27,109

-

-

-

-

-

-

-

-

-

-

-

18,259

8,850

$000s

Additions / Revaluation
reclassifica- movementstions

119,731$000s

Balance
at 1 Jan
2019

Cost / Revaluation

Land

AUT–OWNED ASSETS

2019 – University / Consolidated

PROPERTY, PLANT & EQUIPMENTNOTE 11

-

-

-

8,048

16,791427

2,544

58,7462,488

97826,156

20,076

27,06473,610609,190

184,620$000s

Balanceat 31 Dec
2019

(8,481)(6,061)-(6,061)---

1,181,107

46,56432,505

14,059103,805

20,89782,908(2,420) 1,030,738

-

-

-

-

(1,668)

(21)

(69)

-

(562)

(100)

$000s

Disposals-

220,505

31,20522,940

8,265

2,302

2,302

-

186,998

-

-

-

2,140

33,4992,495

683

19,686

16,467

24,11957,64630,263$000s

Balance
at 1 Jan
2019-

43,979

6,222

1,573

4,649

1,404

1,404

-

36,353

-

-

-

129

5,859

8

66

2,357

1,302

1,410

7,991

17,231$000s

Depreciation(59,510)(6,061)-(6,061)(1,455)(1,455)-(51,994)

-

-

-

-

(1,513)

(21)

(54)

-

(561)

(100)

-

(49,745)

-

225

-

-

-

(2,251)(2,251)

-

2,476

-

-

-

-

225

-

-

-

-

-

-

2,251

-

Disposals/ Impairment
eliminated onlosses /revaluation
reclassifications
$000s
$000s

-

-

205,199

31,366

24,513

6,853

-

-

-

173,833

-

-

-

2,269

38,0702,482

695

22,043

17,20825,42965,637$000s

Balanceat 31 Dec
2019

Accumulated Depreciation and Impairment Losses

906,080

15,797

9,565

6,232

179,952

44,395

135,557

710,331

4,263

8,466

427

404

23,216

14

276

5,651

4,686

776

11,433530,988

119,731$000s

Balance
at 1 Jan
2019

975,908

15,198

7,992

7,206

103,805

20,89782,908856,905

8,048

16,791427

275

20,676

6

283

4,113

2,868

1,635

7,973

609,190

184,620$000s

Balanceat 31 Dec
2019

Net Book Value91

2,536

Office equipment

Works of art

163,471

TOTAL CROWN–OWNED LAND & BUILDINGS

48,313TOTAL ASSETS UNDER FINANCE LEASES

1,064,739

32,505

Buildings

TOTAL PROPERTY, PLANT AND EQUIPMENT

15,808Computers and electronic equipment

ASSETS UNDER FINANCE LEASES

48,471

115,000

852,955

3,480

105,724

Buildings

Land

CROWN–OWNED LAND AND BUILDINGSTOTAL AUT–OWNED ASSETSWIP – others

WIP – buildings

42,533

3,243

-

3,243

-

-

-

39,290783(97,258)

7,010

(4)

-

17

1,057

Motor vehicles

335

410

25,101

Leasehold improvements

2,810

-

20,702

Furniture and fittings

155

2,546

24,962Computers and electronic equipment

5,843

Specialty electronics

63,236

Library collection

119,599$000s

49,968443,243

Cost / Revaluation

30,298---20,557-

20,557

9,741

-

-

-

-

-

-

-

-

-

-

-

-

9,741

$000s

Additions / Revaluation
reclassifica- movements
tions

Plant and equipment

109,990

Land

$000s

Balance
at 1 Jan
2018

Buildings

AUT–OWNED ASSETS

2018 – University / Consolidated

PROPERTY, PLANT & EQUIPMENT (continued)

NOTE 11-(10,985)(4,554)-(4,554)(1,774)(1,774)-(4,657)

-

-

-

(2)

(263)

(23)

(98)

(99)

(2,359)(222)-(1,591)$000s

Disposals

1,126,585

47,00232,505

14,497

182,254

46,697

135,557

897,329

4,263

8,466

427

2,544

56,715

2,509

959

25,337

21,15324,89569,079561,251

119,731$000s

Balanceat 31 Dec
2018-

189,451

28,77521,368

7,407

2,925

2,925

-

157,751

-

-

-

2,012

28,1472,509

674

17,536

17,18922,96550,072

16,647$000s-

41,879

6,984

1,572

5,412

1,151

1,151

-

33,744

-

-

-

130

5,497

9

71

2,249

1,637

1,376

7,574

15,201$000s

Depreciation(10,930)(4,554)-(4,554)(1,774)(1,774)-(4,602)

-

-

-

(2)

(250)

(23)

(62)

(99)

(2,359)(222)-(1,585)

-

105

-

-

-

-

-

-

105

-

-

-

-

105

-

-

-

-

-

-

-

-

Disposals/ Impairment
eliminated onlosses /revaluation
reclassifications
$000s
$000s

-

220,505

31,20522,940

8,265

2,302

2,302

-

186,998

-

-

-

2,140

33,4992,495

683

19,686

16,467

24,11957,64630,263$000s

Balanceat 31 Dec2018

Accumulated Depreciation and Impairment Losses
Balance
at 1 Jan
2018

875,288

19,538

11,137

8,401

160,546

45,546

115,000

695,204

3,480

105,724410

534

21,821

27

383

7,565

3,513

1,997

13,164

426,596

109,990$000s

906,080

15,797

9,565

6,232

179,952

44,395

135,557

710,331

4,263

8,466

427

404

23,216

14

276

5,651

4,686

776

11,433530,988

119,731$000s

Balanceat 31 Dec
2018

Net Book Value
Balance
at 1 Jan
2018

92
ANNUAL REPORT 2019

93

NOTE 11PROPERTY, PLANT & EQUIPMENT (continued)

Assets under Finance leases
Note 17 provides further information about assets under financeleases.
Non-cash transactions
During the year the University acquired $5.6 million ofcomputers and electronic equipment under finance leases (2018:$3.2 million).
Crown-owned land and buildings
On 23 July 2019, the Crown transferred legal ownership of theland and buildings on AUT North Campus to the University. A
condition has been attached to the title of the land stating that

if the land is sold within five years from the date of transfer, theUniversity shall pay 20% of the net proceeds to the Crown.
Restrictions on title
Under the Education Act 1989, the University is required toobtain consent from the Ministry of Education to dispose ofland and buildings. For plant and equipment, there is an asset
disposal limit formula, which provides a limit up to which
a Tertiary Education Institution may dispose of plant andequipment without seeking the approval from the Ministry of
Education. Detailed information on the asset disposal rules canbe found on the Tertiary Education Commission website.

CAPITAL COMMITMENTS
The amount of contractual commitments for the acquisition of property, plant and equipment are as follows:
University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

CAPITAL COMMITMENTS
Buildings

5,075

3,183

5,075

3,183

Plant and equipment

1,311

139

1,311

139

TOTAL CAPITAL COMMITMENTS

6,386

3,322

6,386

3,322

ACCOUNTING POLICY
Property, plant, and equipment consists of eleven asset classes:
land, buildings, library collection, computers and electronicequipment, furniture and fittings, leasehold improvements,
motor vehicles, office equipment, plant and equipment,
speciality electronics and works of art.
Land is measured at fair value, and buildings are measured atfair value less accumulated depreciation. All other asset classes
are measured at cost, less accumulated depreciation andimpairment losses.
Revaluations
Following initial recognition at cost, all land and buildings,
whether owned by the Crown or purchased and built out of the
University’s reserves, are shown at fair value. Revaluation ofland and buildings is carried out at least every three years byan independent Registered Valuer to ensure that their carrying
amounts do not differ materially from fair values. The carrying
values of revalued assets are assessed annually to ensurethat they do not differ materially from the assets’ fair values
at the balance date. If there is evidence supporting a material
difference, then the off-cycle asset classes are revalued.

Revaluation movements are accounted for on a class of asset
basis. The net revaluation results are credited or debited toother comprehensive revenue and expense and are accumulated
to an asset revaluation reserve in equity for that class ofasset. Where this would result in a debit balance in the asset
revaluation reserve, this balance is recognised in the surplus ordeficit. Any subsequent increase on revaluation that reverses
a previous decrease in value recognised in the surplus ordeficit will be recognised first in the surplus or deficit up to
the amount previously expensed, and then recognised in othercomprehensive revenue and expense.

94

ANNUAL REPORT 2019

NOTE 11PROPERTY, PLANT & EQUIPMENT (continued)

Depreciation

Value in use for non-cash-generating assets

Property, plant and equipment is depreciated using thestraight-line method (except for motor vehicles, which uses thediminishing value method) to allocate cost or revalued amountto residual value over their estimated useful lives, as follows:

Non-cash-generating assets are those assets that are not heldwith the primary objective of generating a commercial return.
For non-cash generating assets, value in use is determinedusing an approach based on either a depreciated replacement
cost approach, restoration cost approach, or a service units
approach. The most appropriate approach used to measurevalue in use depends on the nature of the impairment andavailability of information.

Buildings

20 - 50 years straight-line

Library collection

4 -5 years straight-line

Plant and equipment

5 - 20 years straight-line

Specialty electronics

6 years straight-line

Furniture and fittings

5 years straight-line

Leasehold improvements

5 years straight-line

Office equipment

5 years straight-line

Computers and electronicequipment

3 years straight-line

Motor vehicles
20% diminishing value		Land, works of art, and work in progress are not depreciated.
Disposals
Gains and losses on disposals are determined by comparing theproceeds with the carrying amount of the asset. Gains and losses
on disposals are reported net in the surplus or deficit. Whenrevalued assets are sold, the amounts included in revaluation
reserves in respect of those assets are transferred to generalequity.
Work in progress
Work in progress is valued on the basis of expenditure incurred
up to balance date. Financing costs have not been capitalised
during the construction of assets. The total cost of a project istransferred to the relevant asset class on completion and is thendepreciated.
Impairment of property, plant, and equipment
Property, plant, and equipment assets held at cost that have afinite useful life are reviewed for impairment whenever events orchanges in circumstances indicate that the carrying amount may
not be recoverable.
An impairment loss is recognised for the amount by which theasset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value lesscosts to sell and value in use.
If an asset’s carrying amount exceeds its recoverable amount,
the asset is regarded as impaired and the carrying amount iswritten down to the recoverable amount. The total impairment
loss is recognised in the surplus or deficit. The reversal of an
impairment loss is recognised in the surplus or deficit.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

Estimating the fair value of land and buildings
Revaluation of land and buildings
The University relies on the services of an independent
Registered Valuer to assess the carrying values of land andbuildings. In 2019, a full revaluation of land and buildings wascompleted as required every three years by AUT’s Accounting
Policy. The revaluation of land and buildings was performed
by Seagar & Partners (Auckland) Limited, an independent
Registered Valuer, at 31 December 2019, to a fair value of $898
million.
Land is valued at fair value using market-based evidence basedon its highest and best use with reference to comparable land
values. Adjustments have been made to the unencumbered land
value for campus land where there is a designation against theland or the use of the land is restricted because of reserve orendowment status. These adjustments are intended to reflect
the negative effect on the value of the land where an owner isunable to use the land more intensively.
All buildings are valued at fair value using depreciatedreplacement cost because no reliable market data is available forbuildings designed for education delivery purposes.

95

NOTE 11PROPERTY, PLANT & EQUIPMENT (continued)

Details of the land and buildings revaluation movements are as follows:

University/Consolidated

Net book
value (before
revaluation)$000s

Revaluation
movements$000s

Accumulated
depreciation
eliminated$000s

Net revaluation
movements$000s

Net book
value (after
revaluation)$000s

AUT-owned land

175,770

8,850

–

8,850

184,620

AUT-owned buildings

541,186

18,25949,74568,004609,190

Crown-owned land

79,518

3,390

–

3,390

82,908Crown-owned buildings

19,520

(78)

1,455

1,377

20,897815,994

30,421

51,20081,621

897,615

TOTAL

Depreciation and amortisation
At each balance date, the University reviews the useful lives andresidual values of its property, plant and equipment. Assessing
the appropriateness of useful life and residual value estimates ofproperty, plant and equipment requires the University to consider
a number of factors such as the physical condition of the asset,
expected period of use of the asset by the University, andexpected disposal proceeds from the future sale of the asset. An
incorrect estimate of the useful life or residual value will impact
on the depreciable amount of an asset, therefore impacting on
the depreciation recognised in the surplus or deficit, and on
the carrying amount of the asset in the Statement of Financial
Position.

CRITICAL JUDGEMENTS IN APPLYING ACCOUNTINGPOLICIES
Crown-owned land and buildings
Property in the legal name of the Crown that is occupied by
the University is recognised as an asset in the Statement of
Financial Position. The University considers that it has assumed
all the normal risks and rewards of ownership of this property
despite legal ownership not being transferred. Accordingly, it
would be misleading to exclude these assets from the Financial
Statements.
The University has secured the use of the property by means of alease from the Ministry of Education for a period of thirty -three
years from 1 November 1994 at nil rent, with rights of renewal for
two further periods of thirty-three years each.

2,596
46,770TOTAL INTANGIBLE ASSETS

455

1,496

(1,647)

420

2,723

$000s

$000s
43,719Additions /reclassifications

Cost

1,829

2,150

140

Balance
at 1 Jan2018

WIP – software

Programme development

Software

INTANGIBLE ASSETS

2018 – University / Consolidated

48,167949

WIP – software

TOTAL INTANGIBLE ASSETS

795

(461)

$000s

$000s
46,423

Additions /reclassifications

Cost

Balance
at 1 Jan2019

Programme development

Software

INTANGIBLE ASSETS

2019 – University / Consolidated

INTANGIBLE ASSETSNOTE 12

(99)

-

(80)

(19)

$000s

Disposals

(138)

-

-

(138)

$000s

Disposals

48,167949

795

46,423$000s

Balanceat 31 Dec
2018

49,8583,099

935

45,824$000s

Balanceat 31 Dec
2019

8,797

-

220

8,577

$000s

Amortisation

(138)

-

-

(138)

$000s

Disposals

$000s

-

-

-

-

Impairment
losses25,530-287

25,243$000s

Balance
at 1 Jan
2018

6,796

-

95

6,701

$000s

Amortisation

(98)

-

(80)

(18)

$000s

Disposals

$000s

-

-

-

-

Impairment
losses32,228-302

31,926$000s

Balanceat 31 Dec
2018

40,887-522

40,365$000s

Balanceat 31 Dec
2019

Accumulated Amortisation and Impairment Losses

32,228-302

31,926$000s

Balance
at 1 Jan2019

Accumulated Amortisation and Impairment Losses

8,971

3,099

21,2402,596

168

18,476$000s

Balance
at 1 Jan
2018

413

5,459

$000s

Balanceat 31 Dec
2019

15,939949

493

14,497$000s

Balanceat 31 Dec
2018

Net Book Value

15,939949

493

14,497$000s

Balance
at 1 Jan
2019

Net Book Value96
ANNUAL REPORT 2019

97

NOTE 12INTANGIBLE ASSETS (continued)
ACCOUNTING POLICY
Computer software

Programme development

Computer software licences are capitalised on the basis of
the costs incurred to acquire and to bring the software to use.
These costs are amortised on a straight-line basis over theirestimated useful lives, being three years.

Costs incurred on development of new academic programmes
are capitalised to the extent that such costs are expected to be
recovered. Capital costs are amortised from the commencementof a particular programme on a straight-line basis over theperiod of their expected benefits, being three years.

Costs associated with maintaining computer software arerecognised as an expense when incurred. Costs that are directly
associated with the development of identifiable and unique
software controlled by the University, and that will probably
generate economic benefits exceeding costs beyond one
year, are recognised as intangible assets. Direct costs include
software development, employee costs and an appropriate
portion of relevant overheads. Computer software development
costs recognised as assets are amortised on a straight-line basis
over their estimated useful lives, being three years to sevenyears.

Impairment of intangible assets
Intangible assets subsequently measured at cost that have an
indefinite useful life, or are not yet available for use, are notsubject to amortisation and are tested annually for impairment.
For further details refer to the policy for impairment of property,
plant, and equipment in Note 11. The same approach applies tothe impairment of intangible assets.

NOTE 13PAYABLES

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

PAYABLES UNDER EXCHANGE TRANSACTIONS
Trade payables

4,300

19,931

4,351

19,955Creditors accruals

26,72819,387

27,733

19,855

Sundry creditors

4,014

6,376

4,014

6,376

GST payable

9,939

9,983

9,918

9,975

Withholding tax payable

6,527

6,230

6,527

6,230

Tertiary Education Commission

2,973

-

2,973

-

TOTAL PAYABLES

54,481

61,90755,51662,391PAYABLES UNDER NON-EXCHANGE TRANSACTIONSACCOUNTING POLICY
Payables are recorded at their face value.

98

ANNUAL REPORT 2019

NOTE 14

DEFERRED REVENUE

University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Tuition fees received in advance

82,41084,27582,41084,275

Research revenue received in advance

6,213

6,137

6,213

6,137

Other revenue received in advance

4,045

3,823

4,202

3,823

TOTAL DEFERRED REVENUE

92,66894,23592,825

94,235

ACCOUNTING POLICY
Deferred revenue from tuition fees includes both liabilities
recognised for domestic student fees received for which thecourse withdrawal date has not yet passed and for international
student fees, which is based on the percentage completion of
the course.

Deferred revenue from research contracts includes both
liabilities recognised for research funding with unsatisfied
conditions (non-exchange contracts) and liabilities for exchange
research funding received in excess of costs incurred to date on
the required research.

NOTE 15EMPLOYEE ENTITLEMENTS
University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Annual leave

13,35813,535

13,35813,535Sick leave

785

667

785

667

Other employee entitlements

1,962

1,368

1,962

1,368

Total employee entitlements – current

16,105

15,570

16,105

15,570Long service leave

1,602

1,475

1,602

1,475

Retirement leave

1,561

1,466

1,561

1,466

Research and study leave

8,421

6,891

8,421

6,891

Total employee entitlements – non-current

11,584

9,832

11,584

9,832

TOTAL EMPLOYEE ENTITLEMENTS

27,68925,402

27,68925,402

99

NOTE 15EMPLOYEE ENTITLEMENTS (continued)
ACCOUNTING POLICY

Research and study leave

Short-term employee entitlements

The University accrues the liability for research and study leavebased on the following estimates and assumptions:

Employee benefits that are expected to be settled wholly before
twelve months after the end of the reporting period in which
the employees render the related service are measured basedon accrued entitlements at current rates of pay. These include
salaries and wages accrued up to balance date, annual leaveearned to but not yet taken at balance date, sick leave and other
employee entitlements.

• Probability of eligible academic staff entitled to research andstudy leave in future period.
• Historical experience on the uptake of research and study
leave by eligible academic staff.

Long-term employee entitlements

CRITICAL JUDGEMENTS IN APPLYING ACCOUNTINGPOLICIES

Employee benefits that are not expected to be settled wholly
before twelve months after the end of the reporting period inwhich the employees render the related service, such as longservice leave, retirement leave, and Research and Study leave,
have been calculated on an actuarial basis. The calculations are
based on:• likely future entitlements accruing to employees, based on
years of service, years to entitlement, the likelihood that
employees will reach the point of entitlement, and contractual
entitlement information; and• the present value of the estimated future cash flows.
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONSLong service leave and retirement leave
The present values of the long service leave and retirement leave
obligations depend on a number of factors that are determinedon an actuarial basis using a number of assumptions. Two
key assumptions used in calculating this liability include thediscount rate of 1.65% (2018: 2.38%) and the salary inflation
factor of 3.0 % (2018: 3.0%). Any changes in these assumptions
will impact on the carrying amount of the liability.
In determining the appropriate discount rate, the University
considered the interest rates on New Zealand government
bonds with terms to maturity similar to those of the estimatedfuture cash outflows. The inflation factor has been based on the
expected long-term increase in remuneration for employees.

Any changes in these estimates and assumptions will affect thecarrying amount of the liability.

Research and study leave
Some academic staff are entitled to guaranteed research andstudy leave in certain circumstances. The substance of this leaveis to enable staff to take leave from teaching duties in orderto undertake research activity, whilst continuing to earn theirsalary and other employee entitlements. The University is of theview that guaranteed research and study leave is the value of the
future benefit that academic staff have earned in return for theirservice in the current and prior periods. Accordingly, a liability
has been recognised for such leave.

100

ANNUAL REPORT 2019

NOTE 16PROVISIONS
University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

REINSTATEMENT PROVISION FOR LEASED BUILDINGS
3,020

2,463

3,020

2,463

619

557

619

557

3,639

3,020

3,639

3,020

-

42

-

42

Non-current

3,639

2,978

3,639

2,978

TOTAL PROVISIONS

3,639

3,020

3,639

3,020

Opening balance
Provision made/(reversed) during the year
CLOSING BALANCECOMPRISING
Current

The reinstatement provision represents the University’s estimated liability to reinstate leased buildings to their original state at the
expiry of the lease terms.

ACCOUNTING POLICYCRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONSProvisions are recognised when the University has a present
legal or constructive obligation as a result of past events, when
it is more likely than not that an outflow of resources will be
required to settle the obligation, and when the amount has beenreliably estimated. Provisions are not recognised for future
operating losses.

The reinstatement provision is calculated on the net present
value of the estimated liability at lease expiry using a discountrate of 1.65% (2018: 2.38%).

Where there are a number of similar obligations, the likelihoodthat an outflow will be required in settlement is determined byconsidering the class of obligations as a whole.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation using a discountrate that reflects current market assessments of the time valueof money and the risks specific to the obligation. The increase in
the provision due to passage of time is recognised in the surplus
or deficit.

101

NOTE 17

FINANCE LEASE BORROWINGS
University
2019
Actual$000s

Consolidated

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

Not later than one year

6,982

6,516

6,982

6,516

Later than one year and not later than five years

14,62014,036

14,62014,036

235

3,060

235

3,060

Total minimum lease payments

21,837

23,612

21,837

23,612Future finance charges(2,293)(3,106)(2,293)(3,106)

PRESENT VALUE OF MINIMUM FINANCE LEASE PAYMENTS

19,54420,506

19,54420,506

Not later than one year

6,140

5,565

6,140

5,565

Later than one year and not later than five years

13,17011,991

13,17011,991

234

2,950

234

2,950

19,54420,506

19,54420,506

Current

6,140

5,565

6,140

5,565

Non-current

13,404

14,941

13,404

14,941TOTAL PRESENT VALUE OF MINIMUM FINANCE LEASE PAYMENTS

19,54420,506

19,54420,506Later than five years

PRESENT VALUE OF MINIMUM FINANCE LEASE PAYMENTS PAYABLE

Later than five years
TOTAL PRESENT VALUE OF MINIMUM LEASE PAYMENTS
COMPRISING

Auckland University of Technology has entered into financeleases for various properties, computers and electronicequipment. The net carrying amount of the leased items withineach class of property, plant and equipment is shown in Note 11.
The finance leases can be renewed at the University’s option,with rents set by reference to current market rates for items ofequivalent age and condition. The University has the option
to purchase assets at the end of the lease terms. There are
no restrictions placed on the University by any of the financeleasing arrangements.
The University leases approximately 14,082 square metres (2018:14,082 square metres) of accommodation space in Auckland toprovide residential accommodation for students.
The University leases 11,486 computers and items of electronicequipment for teaching, research and administrative purposes(2018: 8,252).
ACCOUNTING POLICY
Leases where the University assumes substantially all the risks
and rewards of ownership are classified as finance leases,
whether or not title is eventually transferred.

Finance leases are capitalised at the lower of the fair valueof the leased asset or the present value of the minimum
lease payments, at inception of the lease, less accumulated
depreciation and impairment losses. The corresponding liability
to the lessor, net of finance charges, is included in the Statementof Financial Position as a finance lease obligation.
Lease payments are apportioned between finance charges andreduction of the finance lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability.
Finance charges are included in the surplus or deficit as financecosts.
Capitalised leased assets are depreciated over the estimateduseful life of the asset or the lease term, whichever is shorter.
For a lease of land and buildings in which the minimum lease
payments cannot be allocated reliably between the land and thebuilding elements in proportion to the relative fair values of theleasehold interests in the land element and buildings elementof the lease at the inception of the lease, the entire lease isclassified as a finance lease, unless it is clear that both elements
are operating leases, in which case the entire lease is classified
as an operating lease.

102

ANNUAL REPORT 2019

NOTE 18

DERIVATIVE FINANCIAL INSTRUMENTS
University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

CURRENT ASSET PORTION
Forward foreign exchange contract – Non-hedges

-

102

-

102

TOTAL DERIVATIVE FINANCIAL INSTRUMENT ASSET

-

102

-

102

Forward foreign exchange contract – Non-hedges

30

-

30

-

Interest rate swap - cash flow hedges

462

124

462

124

Total current liability portion

492

124

492

124

Interest rate swap – Cash flow hedges

1,442

1,061

1,442

1,061

TOTAL DERIVATIVE FINANCIAL INSTRUMENT LIABILITIES

1,934

1,185

1,934

1,185

CURRENT LIABILITY PORTION

NON-CURRENT LIABILITY PORTION

FAIR VALUEInterest rate swaps
The fair values of interest rate swaps have been determinedby calculating the expected cash flows under the terms of theswaps and discounting these values to present value. The inputs
into the valuation model are from independently sourced market
parameters such as interest rate yield curves. Most market
parameters are implied from instrument prices.
Forward foreign exchange contracts
The fair values of forward foreign exchange contracts have been
determined using a discounted cash flows valuation techniquebased on quoted market prices. The inputs into the valuation
model are from independently sourced market parameters suchas currency rates. Most market parameters are implied from
instrument prices.
The fair values of interest rate swaps have been determinedusing a discounted cash flows valuation technique based onquoted market prices.
NOTIONAL PRINCIPAL AMOUNTInterest rate swaps
The notional principal amounts of the outstanding interest rate
swap contracts totalled $109.5 million (2018: $102 million). The
fixed interest rates of interest rate swaps vary from 1.56% to3.25%.

Forward foreign exchange contracts
The notional principal amounts of outstanding forward foreignexchange contracts in NZ$ were $4.4 million (2018: $3.2 million).
The foreign currency principal amounts were US$2.9 million(2018: US$2.2 million).
ACCOUNTING POLICYThe University uses derivative financial instruments,
such as interest rate swaps and forward foreign exchange
contracts, to hedge its interest rate risks and foreign currency
risks respectively. In accordance with its treasury policy,
the University does not hold or issue derivative financial
instruments for trading purposes. However, derivatives that do
not qualify for hedge accounting are accounted for as trading
instruments. Derivative financial instruments are initiallyrecognised at fair value on the date a derivative contract isentered into and are subsequently remeasured at their fairvalue. The fair value of interest rate swaps and forward foreignexchange contracts are determined by reference to market
values for similar instruments.
For the purposes of hedge accounting, all the University’s
hedging instruments are designated as cash flow hedges. A
cash flow hedge is defined as that which mitigates the exposure
to variability in cash flows attributable to a particular risk
associated with a recognised asset or liability, firm commitment,or highly probable forecast transaction, which could affectsurplus or deficit. A cash flow hedge protects against the risk
caused by variable prices, costs, rates or terms which cause
uncertainty in the future.

103

NOTE 18

DERIVATIVE FINANCIAL INSTRUMENTS (continued)
The University documents, at the inception of the transaction,
the relationship between hedging instruments and hedged
items, as well as its risk management objective and strategy forundertaking various hedge transactions. The University also
documents its assessment, both at hedge inception and on
an on-going basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes
in fair value or cash flows of hedged items.
The portion of the gain or loss on the hedging instrument thatis determined to be an effective hedge is recognised directlyin Other Comprehensive Revenue and Expense, within theStatement of Other Comprehensive Revenue and Expense andthe ineffective portion is recognised immediately in the surplus
or deficit as part of the finance costs.
The gain or loss accumulated in equity is recognised in thesurplus or deficit when the hedged cash flows are settled.
Changes in the fair value of any derivative instrument that do
not qualify for hedge accounting are recognised immediately inthe surplus or deficit.

NOTE 19

BORROWINGSOn 29 September 2015, Auckland University of Technology
entered into two separate revolving advances facility
agreements (and the accompanying negative pledge deeds): one
with the ANZ Bank New Zealand Limited and one with Westpac
New Zealand Limited. These facilities have a final maturity dateof 31 January 2020.

As at 31 December 2019, the University has revolving advances
facilities for a total amount of $213 million (2018: $203 million),and $97 million (2018: $130 million) had been drawn downon these facilities. The University has complied with all thecovenants under these facilities during the financial year.

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

Opening balance

130,100

141,550130,100

141,550

Net borrowings / (repayments)(33,200)(11,450)(33,200)(11,450)

CLOSING BALANCE

96,900130,100

96,900130,100

-

-

-

-

Non-current

96,900130,100

96,900130,100

TOTAL BORROWINGS

96,900130,100

96,900130,100

COMPRISING
Current

The University uses the facility as a flexible finance facility,
seeking to minimise debt as cash flows permit. The weighted
average interest rate on the outstanding loan for the year was
2.61% (2018: 2.75%).

On 4 December 2019, the University entered into three separate
revolving advances facility agreements (and the accompanying
negative pledge deeds) with the following banks.

Name of Bank

Facility Limit

Final Maturity Date

ANZ Bank New Zealand Limited$55 million

31 January 2025

Industrial and Commercial Bank of China (New Zealand) Limited$55 million

31 January 2027

Westpac New Zealand Limited$110 million

31 January 2025

104

ANNUAL REPORT 2019

NOTE 19

BORROWINGS (continued)

These facilities have been established in accordance with theconditions of the Consent to Borrow granted by the Secretaryfor Education, under Section 192 (4)(d) and (7) of the Education
Act 1989. These are unsecured facilities with a negative pledge
arrangement that imposes certain covenants on the University.
FAIR VALUE
The carrying amounts of borrowings approximate their fair value
as interest rates on floating rate debt resetting to the market
rate every three months and the impact of discounting is not
significant.

ACCOUNTING POLICY
Borrowings are initially recognised at cost, being the fair valueof the consideration received net of transaction costs associatedwith the borrowings.
Subsequent to initial recognition, borrowings are measured atamortised cost using the effective interest method. Amortised
cost is calculated by taking into account any transaction costs,
and any discount or premium on settlement.
Gains or losses are recognised in the surplus or deficit when
the liabilities are derecognised and through the amortisation
process.
Borrowings are classified as current liabilities unless the
University has an unconditional right to defer settlement of theliability for at least 12 months after the balance date.

NOTE 20

EQUITY

GENERAL EQUITY
University

Consolidated

2019
Actual$000s

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

355,340

337,343

379,678

360,194

17,276

16,531

17,20917,585

-

585

-

585

(470)

(694)

(470)

(694)

Equity interest transferred to subsidiary

-

1,575

-

1,575

Share of joint venture's net asset changes

-

-

-

433

372,146

355,340

396,417379,678

Balance at the beginning of the year

6,485

5,791

6,485

5,791

Transfer (to)/ from general equity

470

694

470

694

Balance at the end of the year

6,955

6,485

6,955

6,485

TOTAL GENERAL EQUITY

379,101

361,825

403,372

386,163

GENERAL RESERVE
Balance at the beginning of the year
Net surplus for the year
Transfer from assets revaluation reserve on disposal of property
Transfer from/ (to) research reinvestment reserve

Balance at the end of the year
RESEARCH REINVESTMENT RESERVE

105

NOTE 20

EQUITY (continued)
REVALUATION RESERVES

University

Consolidated

2019
Actual$000s

2018
Actual$000s

2019
Actual$000s

2018
Actual$000s

155,236

125,932

155,236

125,932

Crown-owned land

3,390

20,5573,390

20,557

AUT-owned land

8,850

9,741

8,850

9,741

-

(994)

-

(994)

167,476

155,236

167,476

155,236

157,302

156,893

157,302

156,893

Crown-owned buildings

1,377

-

1,377

-

AUT-owned buildings

68,004-68,004

-

-

409

-

409

Balance at the end of the year

226,683

157,302226,683

157,302

Balance at the end of the year

394,159

312,538

394,159

312,538

Balance at the beginning of the year

-

(39)

138

752

Net fair value gains/(losses) in the year

-

(1)

485

(654)

Reclassification to surplus/(deficit) on derecognition of otherfinancial asset

-

40

-

40

Balance at the end of the year

-

-

623

138

Balance at the beginning of the year

(1,185)(621)(1,185)(621)

Net fair value gains/(losses) in the year

(719)

(564)

(719)

(564)

(1,904)(1,185)(1,904)(1,185)

Balance at the beginning of the year

-

-

-

-

Net revaluation movement in the year

-

-

8,147

-

Balance at the end of the year

-

-

8,147

-

TOTAL REVALUATION RESERVES

392,255

311,353

401,025

311,491

TOTAL EQUITY

771,356

673,178

804,397

697,654ASSET REVALUATION RESERVELand revaluation reserve
Balance at the beginning of the year
Net revaluation movement in the year

Transfers to general equity on disposal of property
Balance at the end of the year
BUILDINGS REVALUATION RESERVE
Balance at the beginning of the year
Net revaluation movement in the year

Transfers to general equity on disposal of property

FAIR VALUE THROUGH OTHER COMPREHENSIVE REVENUEAND EXPENSE RESERVECASH FLOW HEDGE RESERVE

Balance at the end of the year
SHARE OF JOINT VENTURE’S ASSET REVALUATION RESERVE106

ANNUAL REPORT 2019

NOTE 20

EQUITY (continued)
ACCOUNTING POLICY

Asset revaluation reserve

Equity is measured as the difference between total assets andtotal liabilities. Equity is disaggregated and classified into thefollowing components:

This reserve relates to the revaluation of land and buildings tofair value.

General equity• General reserve• Research reinvestment reserve
Revaluation reserve• Asset revaluation reserve• Fair value through other comprehensive revenue andexpense reserve• Cash flow hedge reserve
Research reinvestment reserve

Fair value through other comprehensive revenue and expense
reserve
This reserve comprises the cumulative net change ofother financial assets classified as fair value through othercomprehensive revenue and expense.
Cash flow hedge reserve
This reserve comprises the effective portion of the cumulative
net change in the fair value of derivatives designated as cash
flows hedges.

Research reinvestment reserve is a component of generalequity which has been created by the University. The use of
these funds is restricted to research activities.

NOTE 21

RELATED PARTY TRANSACTIONS
Related party disclosures have not been made for transactions
with related parties that are:• within a normal supplier or client/recipient relationship; and• on terms and conditions no more or less favourable thanthose that are reasonable to expect that the University would
have adopted in dealing with the party at arm’s length in thesame circumstances.

Further, transactions with government agencies (for example,
government departments and Crown entities) are not disclosed
as related party transactions when they are consistent with
the normal operating arrangements with tertiary education
institutions and undertaken on the normal terms andconditions for such transactions.

KEY MANAGEMENT PERSONNEL COMPENSATION
University
2019
ActualConsolidated
2019
Actual2018
Actual2018
Actual

COUNCILLORS
Remuneration ($000s)

245

245

245

245

Full-time equivalent members

12

12

12

12

6,199

5,674

6,199

5,674

19

18

19

18

6,444

5,919

6,444

5,919

31

30

31

30

STRATEGIC LEADERSHIP TEAM, INCLUDING THE VICE-CHANCELLOR
Remuneration ($000s)
Full-time equivalent members
TOTAL KEY MANAGEMENT PERSONNEL REMUNERATION ($000s)
TOTAL FULL-TIME EQUIVALENT MEMBERS

The Vice-Chancellor and Dean of the Faculty of Health and Environmental Sciences are Trustees of AUT/Millennium Ownership
Trust. Their fees in relation to those positions are paid directly to the University.
Due to the difficulty in determining the full-time equivalent for Councillors, the full-time equivalent figure is taken as the numberof Councillors.

107

NOTE 22

COUNCILLORS’ FEES
The following fees were paid to members of the Council of Auckland University of Technology:

University
2019
Actual$000s

2018
Actual$000s

COUNCIL MEMBERP Alley20

20

D Colbert (Appointed 4 May 2018, term expired 8 August 2019)15

15

H Gaeta

20

20

S Hayman

20

20

L Henry* (Term expired 31 January 2018)-5

D Kataria (Appointed 8 August 2019)

5

-

L Lim

20

20

J Maasland (Chancellor)

40

40

-

-

J Schofield20

20

J Smith (Appointed 10 April 2018)

20

15

S Stehlin

20

20

J Thompson

20

20

N Tupp (Appointed 18 February 2018, term expired 3 May 2018)-5

S Turner (Pro-Chancellor)

25

25

TOTAL COUNCILLORS’ FEES

245

245

D McCormack (Vice-Chancellor)*L Henry is a Trustee of AUT / Millennium Ownership Trust and received fees of $10,000 (2018: $10,000) in
relation to that position.
The Vice-Chancellor is not entitled to the Council fees.
No Council members received compensation or other benefits in relation to cessation (2018: nil).

108

ANNUAL REPORT 2019

NOTE 23

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS CATEGORIESThe accounting policies for financial instruments
have been applied to the line items below:

University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

FINANCIAL ASSETSLOANS AND RECEIVABLES
679

705

3,335

2,850

Receivables

40,32958,29140,73158,355

Other financial assets - term deposits

10,906-

11,706500

TOTAL LOANS AND RECEIVABLES

51,91458,99655,772

61,705

Cash and cash equivalents

FAIR VALUE THROUGH OTHER COMPREHENSIVE REVENUE AND EXPENSE
Other financial assets
Unlisted shares held by subsidiaries

-

-

2,973

1,926

TOTAL FAIR VALUE THROUGH OTHER COMPREHENSIVEREVENUE AND EXPENSE

-

-

2,973

1,926

Unlisted shares

91

191

91

191

TOTAL FINANCIAL ASSETS CARRIED AT COST

91

191

91

191

Forward foreign exchange contracts

-

102

-

102

TOTAL DERIVATIVES NOT DESIGNATED AS HEDGES

-

102

-

102

Forward foreign exchange contracts

30

-

30

-

TOTAL DERIVATIVES NOT DESIGNATED AS HEDGES

30

-

30

-

Interest rate swap

1,904

1,185

1,904

1,185

TOTAL DERIVATIVES DESIGNATED AS CASH FLOW HEDGES

1,904

1,185

1,904

1,185

FINANCIAL ASSETS CARRIED AT COST
Other financial assets

DERIVATIVES NOT DESIGNATED AS HEDGESFINANCIAL LIABILITIESDERIVATIVES NOT DESIGNATED AS HEDGESDERIVATIVES DESIGNATED AS CASH FLOW HEDGESFINANCIAL LIABILITIES MEASURED AT AMORTISED COST
Payables

35,042

45,69436,09846,186

Borrowings

96,900130,100

96,900130,100

TOTAL FINANCIAL LIABILITIESMEASURED AT AMORTISED COST

131,942

175,794

132,998

176,286

109

NOTE 23

FINANCIAL INSTRUMENTS (continued)
FAIR VALUE HIERARCHY DISCLOSURESFor those instruments recognised at fair value in the Statementof Financial Position, fair values are determined according to thefollowing hierarchy:• Quoted market price – financial instruments with quoted
prices for identical instruments in active markets.
• Valuation technique using observable inputs – financial
instruments with quoted prices for similar instrumentsin active markets, or quoted prices for identical or similar
instruments in inactive markets, and financial instruments
valued using models where all significant inputs areobservable.
• Valuation techniques with significant non-observable inputs– financial instruments valued using models where one ormore significant inputs are not observable..

The following table analyses the basis of thevaluation of classes of financial instruments
measured at fair value in the Statement of
Financial Position:

Valuation Technique
Quotedmarket price
$000s

Total
$000s

Observable
inputs$000s

Significant nonobservable input$000s

UNIVERSITY 2019
Financial assets
Forward foreign exchange contracts – Non-hedges

-

-

-

-

Financial liabilities
Forward foreign exchange contracts – Non-hedges

30

-

30

-

1,904

-

1,904

-

2,973

-

2,973

-

-

-

-

-

30

-

30

-

1,904

-

1,904

-

102

-

102

-

-

-

-

-

1,185

-

1,185

-

Unlisted shares held by Subsidiaries

1,926

-

1,926

-

Forward foreign exchange contracts – Non-hedges

102

-

102

-

-

-

-

-

1,185

-

1,185

-

Interest rate swap –Cash flow hedges
CONSOLIDATED 2019
Financial assets
Unlisted shares held by Subsidiaries
Forward foreign exchange contracts – Non-hedges
Financial liabilities
Forward foreign exchange contracts – Non-hedges
Interest rate swap – Cash flow hedges
UNIVERSITY 2018
Financial assets
Forward foreign exchange contracts – Non-hedges
Financial liabilities
Forward foreign exchange contracts – Non-hedges
Interest rate swap – Cash flow hedges
CONSOLIDATED 2018
Financial assets

Financial liabilities
Forward foreign exchange contracts – Non-hedges
Interest rate swap – Cash flow hedges

110

ANNUAL REPORT 2019

NOTE 24

FINANCIAL INSTRUMENT RISKS

Auckland University of Technology’s activities expose it to avariety of financial risks including market risk (interest raterisk, currency risk and price risk), credit risk and liquidity risk.
The University’s Treasury Management Policy and overall risk
management programme focuses on the unpredictability offinancial markets and seeks to minimise potential adverse
effects on the financial performance of the University. The
University uses derivative financial instruments such as interest
rate swaps and forward foreign exchange contracts to hedge
certain risk exposures.
Financial risk management is carried out under the Treasury
Management Policy approved by the Council of the University.
The Council provides written principles for overall risk
management, as well as policies covering specific areas suchas interest rate risk, credit risk, use of derivative financial
instruments and non-derivative financial instruments, andinvestment of excess liquidity.
Treasury Management Policy does not allow any transactions
that are speculative in nature to be entered into.
MARKET RISKInterest rate risk
Interest rate risk is the risk that the fair value or future cash
flows of the University’s financial instruments will fluctuate
due to changes in market interest rates. Auckland Universityof Technology is exposed to interest rate risk from its interestearning financial assets and interest-bearing liabilities.
The University is risk averse and seeks to minimise exposure
arising from its treasury activities. It does not undertake
unnecessary investment or borrowing activity, nor is it
speculative in the activity it undertakes.
The University manages its interest rate risk on borrowings
by using floating-to-fixed interest rate swaps. Such interest
rate swaps have the economic effect of converting borrowings
at floating rates and swapping them into fixed rates that are
generally lower than those available if the University borrowed
at fixed rates directly. Under the interest rate swaps, theUniversity agrees with other parties to exchange, at specified
intervals, the difference between fixed contract rates andfloating-rate interest amounts calculated by reference to theagreed notional principal amounts.

Currency risk
Currency risk is the risk that the fair value or future cash flows
of a financial instrument will fluctuate due to changes inforeign exchange rates. Auckland University of Technology has
transactional currency exposure. Such exposure arises from thepurchase of goods and services in currencies other than thelocal currency.
It is the University’s Treasury Management Policy to manage
foreign currency risks arising from contractual commitments
and liabilities that are above specified amounts by entering into
forward foreign exchange contracts, or supplier guaranteed
New Zealand Dollar purchase price contracts, to hedge theforeign currency risk exposure.
Price risk
Auckland University of Technology is exposed to equity
securities price risk. This arises from investments held by
the University and classified in the Statement of Financial
Position either as financial assets at fair value through othercomprehensive revenue and expense, or financial assets at fairvalue through surplus or deficit.
The University does not manage the price risk arising frominvestments in equity securities. The price risk for the equity
securities is immaterial in terms of the possible impact on
surplus or deficit or total equity. It has therefore not been
included in the sensitivity analysis.
Credit risk
Credit risk is the risk that a third party will default on its
obligations to the University, thereby causing the University toincur a loss. The University’s Treasury Management Policy limits
the amount of credit exposure to any one financial institution ororganisation. The University only invests funds with entities thathave a Standard and Poor’s or Moody’s long term credit rating ofA or above.
The University has no collateral or other credit enhancements
for financial instruments that give rise to credit risk.

111

NOTE 24

FINANCIAL INSTRUMENT RISKS (continued)

The maximum credit exposure for each class of financial instrument is as follows:
University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual
$000s

679

705

3,335

2,850

Other financial asset - term deposits

10,906-

11,706500

Receivables

40,32958,29140,73158,355TOTAL CREDIT RISK

51,91458,99655,772

61,705

Cash and cash equivalents

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s
credit ratings (if available) or to historical information about counterparty default rates:
University
2019
Actual$000s

Consolidated
2019
Actual$000s

2018
Actual$000s

2018
Actual$000s

COUNTERPARTIES WITH CREDIT RATINGS
Cash and cash equivalents
AA-

679

705

3,335

2,850

TOTAL CASH AND CASH EQUIVALENTS

679

705

3,335

2,850

AA-

10,906-

11,706500

TOTAL SHORT-TERM INVESTMENTS

10,906-

11,706500

Other financial asset - term deposits

Receivables arise mainly from the University’s operating activities, therefore there are no procedures in place to monitor or report
the credit quality of receivables with reference to internal or external credit ratings. The University is not exposed to any material
concentrations of credit risk. Receivable balances are monitored on an on-going basis to ensure that the exposure to bad debts is
not significant.

112

ANNUAL REPORT 2019

NOTE 24

FINANCIAL INSTRUMENT RISKS (continued)

Liquidity risk
Management of liquidity risk
Liquidity risk is the risk that the University will encounter
difficulty raising liquid funds to meet commitments as they falldue. Prudent liquidity risk management implies maintaining
sufficient cash and the availability of funding through anadequate amount of unutilised committed credit facilities.
The University manages liquidity risk by continuously
monitoring forecast and actual cash flows and matching thematurity profiles of financial assets and liabilities. To provide
flexibility in the management of the University’s liquidity, theCarrying
amount$000s

University has established revolving advance facility agreements(and the accompanying negative pledge deed) with the banks as
disclosed in Note 19.
Contractual maturity analysis of financial liabilities
The table below analyses the University’s financial liabilities into
relevant maturity groupings based on the remaining period atbalance date to the contractual maturity date. Future interest
payments on floating rate debt are based on the floating rate on
the instrument at balance date. The amounts disclosed are thecontractual undiscounted cash flows.

ContractualCash flows$000s

Less than
1 year
$000s

1-5
years
$000s

More than
5 years$000s

UNIVERSITY 2019
Payables

35,04235,04235,042--

Net settled derivative liabilities

1,934

1,934

492

1,442

-

Finance leases

19,544

21,837

6,982

14,620235

Borrowings

96,900112,105

2,971

52,70756,427

TOTAL

153,420

170,918

45,487

68,76956,66236,09836,09836,098--Net settled derivative liabilities

1,934

1,934

492

1,442

-

Finance leases

19,544

21,837

6,982

14,620235

Borrowings

96,900112,105

2,971

52,70756,427

TOTAL

154,476

171,974

46,543

68,76956,662

45,69445,69445,694

-

-

1,185

1,185

124

1,061

-

Finance leases

20,506

23,612

6,516

14,036

3,060

Borrowings

130,100

134,359

3,692

130,667-

TOTAL

197,485

204,850

56,026

145,764

3,060

46,186

46,186

46,186

-

-

1,185

1,185

124

1,061

-

Finance leases

20,506

23,612

6,516

14,036

3,060

Borrowings

130,100

134,359

3,692

130,667-

TOTAL

197,977

205,342

56,518145,764

3,060

CONSOLIDATED 2019
Payables

UNIVERSITY 2018
PayablesNet settled derivative liabilities

CONSOLIDATED 2018
PayablesNet settled derivative liabilities

113

NOTE 24

FINANCIAL INSTRUMENT RISKS (continued)

Contractual maturity analysis of financial assets
The table below analyses the University’s financial assets into relevant maturity groupings based on the remaining
period at the balance date to the contractual maturity date.
Carrying
amount$000s

ContractualCash flows$000s

Less than
1 year
$000s

1-5
years
$000s

More than
5 years$000s

UNIVERSITY 2019
Cash and cash equivalents

679

679

679

-

-

Receivables

40,32940,32940,329--Other financial assets

10,906

10,906

10,906

-

-

-

-

-

-

-

51,91451,91451,914--

Cash and cash equivalents

3,335

3,335

3,335

-

-

Receivables

40,73140,73140,731--Other financial assets

11,706

11,706

11,706

-

-

-

-

-

-

-

55,772

55,772

55,772

-

-

705

705

705

-

-

58,29158,29158,291

-

-

-

-

-

-

-

102

102

102

-

-

59,09859,09859,098--Cash and cash equivalents

2,850

2,850

2,850

-

-

Receivables

58,35558,35558,355--

Other financial assets

500

500

500

-

-

Net settled derivative assets

102

102

102

-

-

61,80761,80761,807--

Net settled derivative assets
TOTAL
CONSOLIDATED 2019

Net settled derivative assets
TOTAL
UNIVERSITY 2018
Cash and cash equivalents
Receivables
Other financial assets
Net settled derivative assets
TOTAL

CONSOLIDATED 2018

TOTAL

114

ANNUAL REPORT 2019

NOTE 24

FINANCIAL INSTRUMENT RISKS (continued)

SENSITIVITY ANALYSISThe tables below illustrate the potential effect on the surplus or deficit and equity (excluding general reserve) for
reasonably possible market movements, with all other variables held constant, based on the financial instrument
exposures at balance date.
University+100 bps

Consolidated+100bps-100 bps-100 bps

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity
$000s

7

-

(7)

-

33

-

(33)

-

109

-

(109)

-

117

-

(117)

-

-

272

-

(272)

-

272

-

(272)

Borrowings

(249)

-

249

-

(249)

-

249

-

TOTAL SENSITIVITY TO INTEREST RATE RISK

(133)

272

133

(272)

(99)

272

99

(272)

2019
INTEREST RATE RISK
Financial assets
Cash and cash equivalents
Other financial assets
Financial liabilities
Interest rate swaps

University+10%

Consolidated
+10%

-10%

-10%

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Cash and cash equivalents

(30)

-

36

-

(30)

-

36

-

Receivables

(3)

-

4

-

(3)

-

4

-

58

-

(71)

-

58

-

(71)

-

Forward foreign exchange contracts

(399)

-

487

-

(399)

-

487

-

TOTAL SENSITIVITY TO CURRENCY RISK

(374)

-

456

-

(374)

-

456

-

2019
CURRENCY RISK
Financial assets

Financial liabilities
Payables115

NOTE 24

FINANCIAL INSTRUMENT RISKS (continued)
University+100 bps

Consolidated+100bps-100 bps-100 bps

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Cash and cash equivalents

7

-

(7)

-

29

-

(29)

-

Other financial assets

-

-

-

-

5

-

(5)

-

-

249

-

(249)

-

249

-

(249)

Borrowings

(151)

-

151

-

(151)

-

151

-

TOTAL SENSITIVITY TO INTEREST RATE RISK

(144)

249

144

(249)

(117)

249

117

(249)

2018
INTEREST RATE RISK
Financial assets

Financial liabilities
Interest rate swaps

University+10%

Consolidated
+10%

-10%

-10%

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Surplus
$000s

Other
equity$000s

Cash and cash equivalents

(12)

-

15

-

(12)

-

15

-

Receivables

(49)

-

60

-

(49)

-

60

-

194

-

(237)

-

194

-

(237)

-

Forward foreign exchange contracts

(298)

-

364

-

(298)

-

364

-

TOTAL SENSITIVITY TO CURRENCY RISK

(165)

-

202

-

(165)

-

202

-

2018
CURRENCY RISK
Financial assets

Financial liabilities
Payables

EXPLANATION OF INTEREST RATE RISK SENSITIVITY
The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant,measured as a basis points (bps) movement. For example, a decrease in 100 bps is equivalent to a decrease in interest rates of 1.0%.
The sensitivity for interest rate swaps has been calculated using a derivative valuation model based on a parallel shift in interest ratesof -100bps/+100bps (2018: -100bps/+100bps).

116

ANNUAL REPORT 2019

NOTE 24

FINANCIAL INSTRUMENT RISKS (continued)

EXPLANATION OF CURRENCY RISK SENSITIVITYEXPLANATION OF EQUITY PRICE RISK SENSITIVITY

The currency sensitivity is based on a reasonable possible
movement in foreign exchange rates, with all other variables
held constant, measured as a percentage movement in theforeign exchange rate. The sensitivity for foreign exchange
derivatives has been calculated using a derivative valuation
model based on movement in foreign exchange rates of-10%/+10% (2018: -10%/+10%).

The sensitivity for listed shares has been calculated based on
a -10%/+10% (2018: -10%/+10%) movement in the quoted bid
share price at year end for the listed shares.

NOTE 25

CAPITAL MANAGEMENTThe University’s capital is its equity, which comprises retained
surpluses and reserves. Equity is represented by net assets. The
University manages its revenue, expenses, assets, liabilities, andgeneral financial dealings prudently. The University’s equity
is largely managed as a result of managing revenue, expenses,
assets and liabilities.

The objective of managing the University’s equity is to ensure
the University effectively achieves the goals and objectives forwhich it has been established, whilst remaining a going concern.

NOTE 26

SEGMENTAL INFORMATION

Auckland University of Technology operates predominantly in
one industry, tertiary education, and in one geographical area,
Auckland, New Zealand.

NOTE 27

EXCEPTIONAL RISKS OF OPERATING

There are a number of factors that could adversely affect
Auckland University of Technology’s operating surplus. Most
notably, international student revenue could be affected by asignificant change to New Zealand’s, or foreign governments’,immigration or visitors’ permits policies. 22% (2018: 20%) of
total revenue is derived from International student fees.

NOTE 28

CONTINGENCIESCONTINGENT ASSETSCONTINGENT LIABILITIESThere are no contingent assets as at 31 December 2019(2018: Nil).

There are no contingent liabilities as at 31 December 2019(2018: Nil).

117

NOTE 29EVENTS AFTER THE REPORTING PERIODOn March 11, 2020, the World Health Organisation declared theoutbreak of a coronavirus (COVID-19) pandemic and two weeks
later the New Zealand Government declared a State of National
Emergency. The country is at Alert Level 4, and in lockdown. As
a result, economic uncertainties have arisen which are likely tonegatively affect our operations and services.
The Crown have guaranteed that funding will continue at theagreed 2020 level, for both Investment Plan and fees-freefunding, regardless of the pandemic’s effects on enrolments
and educational performance indicator results. While there issome degree of certainty for this crucial income stream, we haveidentified several other possible effects on the University thatcannot be quantified at this stage. These are described below.
• Student fees and charges. There is potential for the lossof both current and prospective domestic and international
students as a result of the disruption and pressures createdby COVID-19. Flexible, accessible study options support atimely return to study for our learners and may help mitigate
the financial impact on the University. AUT will adopt a
sequential, block-mode teaching model for the remainder of2020. We expect that this approach will allow a faster return
to teaching and learning once the initial lockdown period iscomplete, and a more seamless resumption of on-campus
teaching once the crisis is averted.
• Other income. There are significant potential implications
for other income sources. This is particularly the case forresearch revenue, including that received from Government,
as the delivery of research will be affected by the current
situation. Other affected sources include student
accommodation, and some trading and other operating
revenue.

• Direct costs. The University will face a range of additionalcosts as a result of the lockdown, including staff costs due toemploying all staff on full wages, as required by the Crown.
There are also costs associated with the shifts to exclusively
on-line teaching delivery, and to intensive teaching blocks.
Equity issues present another challenge; AUT must support
our students for whom online delivery may be difficult, often
due to lack of access to devices or data. Although AUT’s
approach has yet to be determined, we anticipate an impact
from costs such as the repayment of student-related fees as aresult of withdrawals.
• Business operations. The impact on ongoing business
operations is likely to be significant in both the shortand medium-to-long term. We expect our non-teaching
functions, such as conferences, catering and accommodation
to be most affected.
• Non-financial reporting. We anticipate that our progress
towards many of the indicators reported in the Statementof Service Performance will be affected in 2020. This isparticularly the case for indicators relating to research andconsultancy income, graduate outcomes, student numbers,
and equity measures.
• Borrowings, including potential breach of covenants.
Following a period of strong financial performance, AUT
is well placed to manage the financial uncertainty that
Covid-19 has created for all tertiary institutions. During thisperiod of uncertainty AUT is considering the likelihood andconsequential impact of the pandemic on all aspects of its
financial performance targets including those related to ourborrowing contracts with the TEC and our banking partners.
At this time it is difficult to determine the full effect of the
COVID-19 pandemic, and there could be other matters that
affect the University.

NOTE 30

COMPARATIVE YEAR FINANCIAL STATEMENTS

Certain comparative figures in the prior year have been reclassified to conform with this year’s presentation.

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ANNUAL REPORT 2019

NOTE 31

EXPLANATION OF VARIANCES AGAINST BUDGET

Explanations for major variances against the consolidated group budget are as follows:
STATEMENT OF FINANCIAL PERFORMANCE

Finance costs

Government grants

Finance costs were $2.2 million below budget, mainly due tolower interest rates, improved operating cashflow, and delayed
capital expenditure.

Government grants were $11.3 million above budget. This was
mainly due to an additional in-year rebaseline of SAC funding of$4.7 million, the 2018 SAC funding washup of $1.9 million (dueto higher enrolments in that year) and an additional $4.3 million
of PBRF funding earned from the 2018 PBRF Quality Evaluation
audit.
Student-derived revenue
Student-derived revenue was $14.6 million above budget due tostrong enrolments in the year. Domestic EFTS exceeded budget
by 183 EFTS, while International EFTS were 338 higher thanbudgeted.
Research revenue
Research grants recognised in 2019 were $3.4 million above
budget driven by higher external research revenue being
generated.
Personnel costs
Personnel costs were $10 million above budget driven by thehigher staffing required to support the additional students enrolled
in 2019 and additional staffing to deliver the increased external
research income. This includes $2.6 million for the uptake of the
Voluntary Enhanced Leaving Programme (VELP), and $1.5 millionof other staff reorganisational costs incurred during the year.
Supplies and other costs
Supplies and other costs were $17.8 million above facilities
budget due to higher student support costs, higher external
research activity, and additional costs. This includes the $1.9
million reclassification of library database licences from capital
expenditure to operating expenditure. Licences are only
available for a set period, and do not secure permanent access.
Depreciation, amortisation and impairment
Depreciation, amortisation and impairment were $1.4 million
below budget . This was mainly due to delays in the purchase ofplant and equipment, and in the delivery of software projects.

Cash and cash equivalents
Cash and cash equivalents were $8.4 million below budget. Thiswas mainly due to the reclassification of a term deposit withmaturity greater than three months, for an amount of $10.9
million, to other financial assets.
Receivables
Receivables were $5.8 million below budget mainly due to thetiming of receipts compared to budget.
Other financial assets
Other financial assets were $11.1 million above budget mainly
due to the reclassification of a term deposit with maturity greaterthan three months, to the value of $10.9 million, from short-termbank deposits.
Prepayments
Prepayments were $3.7 million above budget mainly due to thereclassification of library database licences from capital costs.
Investments accounted for using the equity method
Investments accounted for using the equity method were
$9.2 million above budget, mainly due to the share of the joint
venture’s asset revaluation reserve in 2019.
Property, plant and equipment
Property, plant and equipment was $97.9 million above budget.
This was mainly due to unbudgeted increases in the revaluationof land and buildings in 2019 ($81.6 million), and land in 2018($30.3 million).
Intangible assets
Intangible assets were $6.5 million below budget, mainly due tothe delayed investment in software-related capital expenditure
projects during the year.

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NOTE 31

EXPLANATION OF VARIANCES AGAINST BUDGET (continued)

Payables

STATEMENT OF CASH FLOWS

Payables were $4.3 million above budget, mainly due to anincrease in the accrual of capital expenditure related to work-inprogress at year-end.

Operating activities

Deferred revenue
Deferred revenue was $16.1 million above budget, mainly due tothe timing of student fee invoices compared to budget.
Employee entitlements
Total employee entitlements were $27.6 million, which was $6.0
million above budget. This was mainly due to a higher provision
for research and study leave, and the accrual of other employee
entitlements, compared to budget.
Finance lease borrowings
The total finance lease borrowings were $19.5 million. This was$1.9 million below budget, mainly due to lower finance leaseborrowings for computers and electronic equipment.
Bank borrowings
Bank borrowings were $50.6 million below budget at year-end.
This was mainly due to higher-than-budgeted cash flow fromoperating activities and lower capital expenditure.
Revaluation reserves
Revaluation reserves were $118.7 million above budget. This was
mainly due to unbudgeted increases in the revaluation of landand buildings in 2019 ($81.6 million), and land in 2018 ($30.3
million).

Cash flows from operating activities are significantly higher thanbudget. This is mainly due to the following factors:• Additional unbudgeted revenues (noted above), partially
offset by higher operating expenditure.
• One-off receipts from the TEC as part of the Government’s
fees-free scheme. These will need to be refunded in 2020.
• The one-off impact of delayed invoicing of international
student fees.
Investing activities
Cash flows from investing activities are lower than budget. This
reflects deferred capital expenditure on software and the A1
development.
Financing activities
Cash flows from financing activities are higher than budget,
reflecting the repayment of bank borrowings and finance leases.

AUCKLAND UNIVERSITY OF TECHNOLOGY
Private Bag 92006, Auckland 1142
55 Wellesley Street East, Auckland, New ZealandPhone: +64 9 921 9999
www.aut.ac.nz

April 2020
AR-04/2019-250
ISSN 2537-8643