The Australian National University 1985 Report Part 2

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The Australian National University1985 Report

Part 2

Report of the Council for the period 1 January 1985 to 31 December 1985

C O M M O N W E A L T H OF AU S TR A L IAÜfeJj. AUSTRALIA ,L>-

Please quoie

F86/325

A U S TR A LIA N A U D IT OFFICE

Cnr Moore and Rjdd Streets. Canberra City A C T 2601

Address correspondence toAuditor-GeneralBo* 707. G P 0 Canberra 2601Telegrams ComauditTelex 61653 ComaudTelephone 484711

1 December 1986

The Honourable Sir Richard Blackburn O.B.E., C.St.J Chairman of the Council of the University Australian National University P.0. Box 4CANBERRA ACT 2601

Dear Sir Richard

AUSTRALIAN NATIONAL UNIVERSITY AUDIT REPORT ON FINANCIAL STATEMENTS

Pursuant to sub-section 33(2) of the Australian National University Act 1946, the Council of the University has submitted for my report its financial statements for the year ended 31 December 1985. These comprise:(a) General University Activities, Special Purpose

Activities and Ancillary ActivitiesStatement of Activity

Supporting Statements:General University Activities - Expenditure on Current OperationsAncillary Activities

Statement of Assets and LiabilitiesStatement of Capital Accumulation

. Statement of Sources and Applications of Funds(excluding Commonwealth Superannuation)

(b) Superannuation Funds. Statement of Activity. Statement of Balances. Statement of Changes in Balances(c) Endowment Trust Funds. Statement of Income and Expenditure

Statement of Balances Statement of Changes in Balances

(d) Significant Accounting Policies to and forming part of the accounts

(e) Notes on and forming part of the accountsExcept to the extent disclosed in the statement 'Significant Accounting Policies to and forming part of the accounts' and in the 'Notes on and forming part of the accounts', the statements have been prepared on an historical cost basis. The statements are in the form approved by the Minister for Finance pursuant to sub-section 33(1) of the Act except for the absence of a provision for depreciation of non-current assets.The statements have been prepared in accordance with the Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings (the Guidelines) approved by the Minister for Finance except for certain departures which are disclosed in the statement 'Significant Accounting Policies to and forming part of the accounts'. These are:. departures from Statement of Accounting Standard

AAS 10 - 'Accounting for the Revaluation of Non current Assets'; these relate to the application of current cost accounting principles in respect of certain non-current assets of the University s Housing Operation and the method of calculating gains and losses on the realisation of revalued non-current assets of the Superannuation Funds and

. departures related to the phased implementation ofthe Guidelines.

A copy of the statements is enclosed for your information.

2

The statements have been audited in conformance with the Australian Audit Office Auditing Standards.Moneys held on trustThe University administers a number of endowment funds for various purposes and also maintains several superannuation funds. Further details concerning these funds are in the statement 'Significant Accounting Policies to and forming part of the accounts'.Audit examination revealed that moneys of these funds had been deposited in a common bank account and that certain moneys belonging to a number of different funds had been combined for investment purposes. Legal advice received by the University in November and December 1984 established that moneys belonging to certain of the funds were either moneys held on a statutory trust basis or as trusts established under general law and that moneys of other funds were moneys of the University. The legal advice also indicated that, as a trustee, the University had a duty not to mix its own moneys with trust moneys and that restricted investment powers existed in respect of moneys of three of the funds which could only be invested in trustee securities.As at 31 December 1985 trust moneys totalling approximately $14.5 million and belonging to several funds had been combined for investment purposes with moneys held by the University to meet its liability to the Commonwealth Superannuation Fund (University moneys), and $2.02 million of trust moneys had been invested in other than authorised trustee investments.Because of the circumstances outlined above I am of the opinion that, during the year, the University has been in breach of the provisions of sub-section 4(3) of the Act which requires that moneys or other property held by the University upon trust shall be dealt with in accordance with the powers and duties of the University as trustee. As disclosed in the statement 'Significant Accounting Policies to and forming part of the accounts', a Statute was gazetted on 5 August 1986 giving the University prospectively the requisite powers to pool the moneys of all funds for investment purposes.ReportIn accordance with the provisions of sub-section 33(2) of the Act, I now report that the statements are in agreement with the accounts and records and, in my opinion:. the statements are based on proper accounts and

records, and

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. except to the extent referred to above in connectionwith its handling of moneys held on trust, the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the University during the year have been in accordance with the Act.

I have not audited the accounts of the subsidiary company ANUTECH Pty Ltd, but I have examined that company's accounts and the auditor's report thereon. The accounts have not been consolidated with those of the University but details are shown at Note 24 to the University's financial statements. The auditor's report on the accounts of the subsidiary company was not subject to any qualification.

Yours sincerely

J.S. O'NeillFirst Assistant Auditor-General

4

THE AUSTRALIAN NATIONAL UNIVERSITY

FINANCIAL STATE TCNTS FOR YEAR ENDED 31 DECEMBER 1985

The Accounts of The Australian National University for the year ended 31 December 1985 are presented in the following statements:

General University Activities. Special Purpose Activities and Ancillary Activities

1. Statement of ActivitySupporting Statements of Activity -

1.1 General University Activities - Expenditure on Current Operations1.2 Ancillary Activities

2. Statement of Assets and Liabilities

3. Statement of Capital Accumulation

4. Statement of Sources and Applications of Funds (excluding Commonwealth Superannuation)

Superannuation Funds

5. Statement of Activity

6. Statement of Balances

7. Statement of Changes in Balances

Endowment Trust Funds

8. Statement of Income and Expenditure

9. Statement of Balances

10. Statement of Changes in Balances

Other Hatters

11. Significant Accounting Policies

12. Notes on and forming part of the accounts

To the best of our knowledge these statements have been properly drawn up and show fairly the operations and state of affairs of The Australian National University for the year ended 31 December 1985.

The statements have been prepared in accordance with the Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings (the Guidelines). These statements comply with the Guidelines except for the accounting for depreciation of non-current assets generally, the measurement of realised capital gains and losses on a historical cost basis of revalued non- current assets, and the adoption of accrual accounting in some items of income and expenditure in the Special Purpose Activities segment. The extent of the effect of these departures from

P H Karmel Vice-Chancellor

A D Barton Treasurer

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THE AUSTRALIAN NATIONAL UNIVERSITY1. STATE 1CNT OF ACTIVITY FOR THE YEAR ENDED 31 DECEMBER 1985

1984 Notes General Special Ancillary CWealth TotalTotal University Purpose Activities SuperActivities Activities Fund$000 $000 $000 $000 $000 $000

Revenues

Commonwealth Government Appropriations132,560 - Running expenses 139,916 139,916

375 - Capital Works and Services 383 3839,325 Other Commonwealth Grants 8,562 89 8,6512,501 Other Grants and Donations 4,087 4,087

17,335 Income from Investments 10 4,397 1,873 963 11,368 18,601(9) Realised Gains (Losses) on Sales of Investments

6,467 Tariffs, Buttery and Catering 7,516 7,5162,217 Rental Income 30 138 2,361 2,5292,887 Sundry Income 1 665 1,385 852 2,902

765 General Services Fees ) 815 815(767) Less Disbursements to Student Bodies) (816) (816)

Transfers between Funds (32) (177) 209

$173,656 Total Revenues $145,359 $15,867 $11,990 $11,368 $184,584

Less Funds transferred for Capital10,664 Expenditures 2 11,835 846 12,681

Less Funds transferred to Commonwealth11,224 Superannuation Provision 11,368 11,368

$151,768 Funds Available for Operatinq Activities $133,524 $15,021 $11,990 - $160,535

Expenditures on Current Operations92,158 Salaries and Allowances 86,784 6,037 3,576 96,39719,630 Salary Oncosts 3 18,245 832 436 19,5133,839 Travel, Conferences and Fieldwork 2,840 1,345 119 4,3043,710 Scholarships 3,802 334 4,1361,151 Academic Visitors 1,007 295 5 1,3076,466 Materials and Supplies 5,778 1,487 289 7,554

Library Books and Periodicals 3,000 3,0001,690 Cost of Goods Sold 2,089 2,0893,517 Fuel and Power 2,615 190 502 3,3072,185 Maintenance of Equipment & Furnishings 1,823 32 271 2,1264,047 Maintenance of Buildings & Site Services 2,478 157 915 3,5501,275 Minor Equipment 978 174 88 1,2401,849 Postages and Telephones 1,516 142 197 1,8551,369 Occupancy Expenses 590 120 654 1,3646,407 Sundry Expenses 4 2,646 2,784 672 6,102

$149,293 Total Expenditures $134,102 $13,929 $9,813 - $157,844

Excess of Funds Available over Current2,475 Expenditures (578) 1,092 2,177 2,691

Less Charqes not requirinq Funds in3,388 Current Year 5 2,884 1,212 4,096

(913) Net Operatinq Surplus (Deficit) (3,462) 1,092 965 (1,405)

Abnormal Items 22 598 598

(913) Net Surplus (Deficit) Plus Abnormal Items (3,462) 1,092 1,563 (807)

1,640 Less Transfers to Special Reserves 15 1,559 437 1,9963,915 Add Transfers from Special Reserves 15 248 74 322

Net Surplus (Deficit) Transferred to$1,362 Capital Accumulation ($4,773) $1,092 $1,200 - ($2,481)

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THE AUSTRALIAN NATIONAL UNIVERSITY 1.1 SUPPORTING STATEMENT, GENERAL UNIVERSITY ACTIVITIES

EXPENDITURE ON CURRENT OPERATIONS FOR THE YEAR ENDED 51 DECEMBER 1985

1964

TotalIn s t itu te of Advanced Studies The Faculties

Central Areas, Co^iuter Services Centre and Library Total

$000 $000 $000 $000 $000

83,063 S a la r ie s and Allowances 45,644 22,376 18,764 86,784

18,386 S a la ry Oncosts 9,814 4,653 3,778 18,245

2,306 T ra v e l, Conferences and F ie ldw ork 2,015 577 248 2,840

3,361 S cho la rsh ips 2,416 1,386 3,802

854 Academic V is ito r s 791 212 4 1,007

5,404 M a te r ia ls & Supplies 4,174 858 746 5,778

L ib ra ry Books and P e rio d ic a ls 3,000 3,000

2,813 Fuel & Power 1,547 589 479 2,615

1,942 Maintenance o f Equipment & Fu rn ish ings 806 282 735 1,823

3,096 Maintenance o f B u ild in g s & S ite Services 184 140 2,154 2,478

1,060 Minor Equipment 580 180 218 978

1,551 Postages and Telephones 590 221 705 1,516

656 Occupancy Expenses 248 47 295 590

2,575 Sundry Expenses 626 397 1,623 2,646

$127,267 Total Expenditure $69,435 $31,918 $32,749 $134,102

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THE AUSTRALIAN NATIONAL UNIVERSITY ANCILLARY ACTIVITIES

1.2 SUPPORTING STATEMENT OF ACTIVITY FOR THE YEAR ENDED 31 DECEMBER 1985

1984Total$OOQ

HousingOperation$000

Halls of Residence* $000

Other*

$000

Total

$000

10,126 Revenues 2,943 7,457 1,590 11,990

8,413 Less Current Expenditures 1,561 6,807 1,445 9,813

1,713 Excess of Funds Available 1,382 650 145 2,177

1,042Less Charges not requiring Funds

in Current Year 622 483 107 1,212

671 Net Operating Surplus (Deficit) 760 167 38 965

Abnormal Items 309 276 13 598

671 Net Surplus (Deficit) for Year 1,069 443 51 1,563

50 Less Transfers to Special Reserves 322 13 102 437

651 Add Transfers from Special Reserves 74 74

$1,272Net Surplus (Deficit) transferred to Capital Accumulation $747 $430 $23 $1,200

* Note: "Halls of Residence" comprise University Toad Hall, Corin House/Lennox House Block

House, Bruce Hall, Burton & "A" and Graduate House.

Garran Hall >

"Other" comprises the Arts Centre, Centre for Continuing Education, Concessions Area, Siding Springs Exhibition, Siding Springs Lodge and the Staff Centre.

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THE AUSTRALIAN NATIONAL UNIVERSITY 2. STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 1983

1984 Notes General Special Ancillary C'Nealth TotalTotal University Purpose Activities Super

Funds Funds Funds Funds$000 $000 $000 $000 $000 $000

$197,029 Capital Accumulation $125,415 $14,934 $44,595 - $184,944

Current Assets9,392 Cash on Hand, at Bank & at Call 6 5,629 9,628 1,070 2,097 18,4244,495 Debtors 7 2,761 1,147 512 2,677 7,0972,392 Advances & Prepayments 405 270 66 7411,355 Materials in Store 1,304 160 1,464

465 Trading Stocks 275 27546,459 Investments 8 29,138 1,945 4,641 13,825 49,549

63 Loans to Staff 69 6964 Other Loans 107 107

$64,685 Total Current Assets $39,237 $13,097 $6,793 $18,599 $77,726

Non-Current Assets70,743 Buildings 63,202 11,180 74,38226,383 Dwellings 12 253 27,819 28,07213,334 Land 12 14,209 14,20971,790 Equipment & Furniture 12 72,775 896 35 73,7061,885 Motor Vehicles 2,054 101 2,155

19,594 Rare Library Materials 1,661 1,661106,152 Investments 8 8,921 2,512 106,726 118,159

1,792 Loans to Staff 2,010 2,010100 Shares in Anutech Pty Ltd 24 100 100229 Other Loans 182 182

$312,002 Total Non-Current Assets $149,148 $2,512 $56,215 $106,761 $314,636

$376,687 Total Assets $188,385 $15,609 $63,008 $125,360 $392,362

Less Liabilities

Current LiabilitiesIncome in Advance - Commonwealth

31,131 Government Grants 33,821 148 11 33,9807,834 Creditors and Accruals 11 7,512 527 854 359 9,252

54 Loans 65 657,931 Provisions 9 ,18 4,360 952 4,547 9,859

$46,950 Total Current Liabilities $45,693 $675 $1,882 $4,906 $53,156

648132,060

Lonq Term LiabilitiesLoansProvisions 9,18

53116,746

1,11615,415 120,454

1,647152,615

$132,708 Total Lonq Term Liabilities $17,277 - $16,531 $120,454 $154,262

$179,658 Total Liabilities $62,970 $675 $18,413 $125,360 $207,418

$197,029 Net Assets $125,415 $14,934 $44,595 - $184,944

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THE AUSTRALIAN NATIONAL UNIVERSITY

3. STATEMENT OF CAPITAL ACCUMULATION AS AT 31 DECEMBER 1985

1984 Notes General Special Ancillary TotalTotal University Purpose Activities

Funds Funds Funds$000

Accumulated Funds

$000 $000 $000 $000

163,607 Balance 1 January 1985Add Funds for Capital Expenditure

140,430 13,842 20,053 174,325

10,664 transferred from Statement of Activity 2 Add Net Surplus (Deficit) for year

12,681* 12,681

1,362 transferred from Statement of Activity (4,773) 1,092 1,200 (2,481)1,308 Less Asset Adjustments 13 25,250 34 25,284

$174,325 Balance 31 December 1985 $123,088 $14,934 $21,219 $159,241

Current Cost Reserve 14

18,561 Balance 1 January 1985 21,516 21,5162,955 Add Asset Revaluation for year 1,327 1,327

$21,516 Balance 31 December 1985 - - $22,843 $22,843

Special Reserves 15

$1,188 Balance 31 December 1985 $2,327 - $533 $2,860

Total Capital Accumulation 31 December 1985 Transferred to Statement of Assets

$197,029 and Liabilities $125,415 $14,934 $44,595 $184,944

* Note: This figure includes the amount of $846,000 transferred for capital expenditures in SpecialPurpose Activities, Statement 1.

10

1984T o ta l$000

142,26020,317

(149,371)

13,206

309

1,27514

277

1,026

$2,901

1,4024,634

$6,036

$22,143

7,568595

1,971

157

1,375572

7,156543

1,551

403229

22,120

23

$22,143

THE AUSTRALIAN NATIONAL UNIVERSITY 4 . STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS

(EXCLUDING COMMONWEALTH SUPERANNUATION)FOR THE YEAR ENDED 31 DECEMBER 1985

Sources o f Funds to the U n iv e rs ity$000

1. Revenues - Commonwealth Government Grants 148,950 - Other Revenues 24,266

Less O perating Expenditures (157,961)

Funds fro « O perations

2 . Reduction In Assets - C urrent AssetsAdvances and Prepayments M a te ria ls in S tore Trading Stocks Investments Loans

1,651

1903,754

Proceeds fro « Sale o f Non-Current Assets 351

Non-Current AssetsL ib ra ry BooksInvestmentsOther

950336

47

3. In crease In L i a b i l i t i e s -

C urren t L ia b i l i t i e sIncome in Advance 2,849C re d ito rs and A ccrua ls 1,274Loans 11

Long Ter» L ia b i l i t i e sLoans 999

T o ta l Funds Obtained

These Funds were used as fo llo w s -Increases in Assets C urrent AssetsCash on Hand, a t Bank and a t C a ll 10,100Debtors 1,647Advances and Prepayments M a te ria ls in S tore 112Trading Stocks Loans to S ta f f 6Other Loans 43

Non-Current AssetsB u ild in g s 3,507Land and D w ellings 282Eguipment and F u rn itu re 9,527Motor V ehic les 564L ib ra ry BooksRare L ib ra ry M a te ria ls 1,661Loans to S ta f f 218Other

2. Reductions in L ia b i l i t i e s Long Ter« L i a b i l i t i e sLoans

T o ta l Uses o f Funds

$000

15,255

7,279

5,133

$27,667

27,667

$27,667

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THE AUSTRALIAN NATIONAL UNIVERSITY

SUPERANNUATION FUNDS

5 . STATETCNT OF ACTIVITY FOR THE YEAR EjjjED 31 DECEMBER 1985

Co m b o n w e a lth S t a t u t o r y O th erN o te s S u p er a n n u a tio n T r u st T r u s t

Fund F unds Funds$000 $ 0 0 0 $000

I n c o a eIncome from Investm entsR ealised Gains (L osses) on Sales o f

11,368 1,397 214

Investm ents 2,259 320 37U n iv ersity C o n tr ib u tio n s to Funds 7,574 31 291C o n trib u tio n s of Members 16 2 49Other 28 8

T o ta l In c o a e $21,229 $1,758 $591

L e s s E x p e n d itu r e s

Pension PaymentsR etirem ent B e n e fits and Refund of

3,857 1,218

C o n trib u tio n s 192Management Costs 139 18 2D oubtful Debts 187 23 3

T o ta l E x p e n d itu r e s $4,183 $1,259 $197

S u r p lu s o f I n c o a e o v e r E x p e n d itu r e s

f o r Y ear b e f o r e Abnormal I t e a s 17,046 499 394

Abnormal Items 23 508 441 9

S u r p lu s o f I n c o a e f o r Y ear $17,554 $940 $403

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THE AUSTRALIAN NATIONAL UNIVERSITY

SUPERANNUATION EUNPS

6. STATEMENT OF BALANCES AS AT 31 DECEMBER 1985

Commonwealth Statutory OtherNotes Superannuation Trust Trust

Fund Funds Funds$000 $000 $000

Accumulated Funds General ReserveBalance 1 January 1985 93,388 11,099 1,513Surplus to 31 December 1985 17,554 940 403

$110,942 $12,039 $1,916

Unrealised Gains Reserve 17Balance 1 January 1985 23 12,162 2,267 369Asset R eva lua tion fo r Year 1,897 342 23

$14,059 $2,609 $392

Total Accumulated Funds $125,001 $14,648 $2,308

These Funds are Represented by

Current AssetsCash on Hand, a t Bank and a t C a ll 2,097 210 66Debtors 2,677 239 53Commonwealth Government Bonds 878 78 21Semi-Government Stock 4,325 384 105Share Options in P ub lic Companies 110 15 2Corporate Debentures and Notes 810 110 13Loans and Mortgages 12 1 1Bank Accepted B i l l s 7,690 682 187

Total Current Assets $18,599 $1,719 $448

Non-Current AssetsCommonwealth Government Bonds 10,833 961 264Semi-Government Stock 13,902 1,234 339Shares in P ub lic Companies 18,451 2,611 312Share Options in P ub lic Companies 403 57 7Corporate Debentures and Notes 4,394 594 71Loans and Mortgages 381 34 9Land and B u ild in g s 58,362 7,243 861O ffic e F u rn itu re and Equipment 35 4 1Other 241

Total Non-Current Assets $106,761 $12,979 $1,864

Total Assets $125,360 $14,698 $2,312

Less L ia b i l i t ie s

Current L ia b i l i t ie sC re d ito rs and Accrua ls 359 50 4

Total Current L ia b i l i t ie s $359 $50 $4

Net Assets $125,001 $14,648 $2,308

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THE AUSTRALIAN NATIONAL UNIVERSITY

SUPERANNUATION EUNDS

7 . STAIEFCNT OF CHANGES IN BALANCES FOR THE YEAR ENDED 31 DECEMBER 1983

Balance Balance1 January In c re a s e * Decrease 31 December1985 1985 1985 1985

$000 $000 $000 $000

1. Commonwealth S u p e ra n nu a tio n Fund 106,058 23,126 4 ,183 125,001

2. S ta tu to r y T ru s t Funds 13,807 2 ,099 1,258 14,648

3. O the r T ru s t Funds 1,892 614 198 2 ,308

* N o te : In c re a s e in c lu d e s u n re a lis e d g a in s on in v e s tm e n ts

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THE AUSTRALIAN NATIONAL UNIVERSITY

ENDOWMENT TRUST FUNDS

8. STATE>CNT OF INCO>C AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 1985

1984Total$OOG Incoae $000

9 Income from Investments 9

12 Donations during Year 10

$21 Total Incowe $19

Less Expenditures

17 Prizes 20

$17 Total Expenditure $20

$4 Net Surplus (Deficit) for Year $(1)

15

THE AUSTRALIAN NATIONAL UNIVERSITY

EWOWHENT TRUST FUNDS

9 . STATETCNT OF BALANCES FOR THE YEAR ENDED 31 DECEMBER 1983

1984T o ta l

$000 Accumulated Funds $000

96G eneral ReserveB a lance 1 January 1985 100

4 S u rp lu s ( D e f ic i t ) f o r Year (1 )— —$100 $99

— —

( 1 8 ) ((

U n rea lis ed Gains ReserveB alance 1 January 1985 (1 8 )U n re a lis e d Loss on In ve s tm e n ts (3 )

($18 ) ($ 21 )

$82 T o ta l Accumulated Funds $78

35Th is is represented by:Cash 2

38 Sem i-Governm ent S e c u r i t ie s 35

7 D ebentures 6

2 S h o rt Term Money M arket 35

$82 T o ta l Assets $78

16

THE AUSTRALIAN NATIONAL UNIVERSITY

ENDOWMENT TRUST FUNDS

10. STATEMENT OF CHANGES IN BALANCES FOB THE YEAR EMTED 31 DECEMBER 1983

Balance 1 January 1985

Incoae Expenditure Balance 31 December 1985

$ $ $ $

Endowment Trust Funds

Morrison Oration Trust Fund 3,659 406 166 3,899

A L G MacDonald Trust Fund A, 498 518 289 4,727

Lady Isaac Prize Trust Fund 108 1 50 59

George Knowles Memorial Prize Trust Fund 395 7 100 302

Tillyard Prize Trust Fund 612 73 25 660

J B Chifley Memorial Prize Trust Fund 302 39 5 336

Schlich Memorial Prize Trust Fund 1,122 76 (7) 1,205

R G Menzies Scholarship Trust Fund 67,112 17,845 21,845 63,112

Ann Downer Memorial Prize Trust Fund 3,925 395 331 3,989

Total Endowment Trust Funds $81,733 $19,360 $22,804 $78,289

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1 1 . S IG N IF IC AN T ACCOUNTING PO LIC IES TO AND FORMING

PART OF THE ACCOUNTS

B a s is o f A c c o u n tin g

These f in a n c ia l s ta te m e n ts have been p repa red under th e c o n v e n tio n o f h i s t o r i c a l c o s t a c c o u n tin g e xcep t t h a t :

( i ) c u r r e n t c o s t a c c o u n tin g p r in c ip le s have been a p p lie d in re s p e c t o f c e r ta in n o n -c u r re n t a s s e ts o f th e Housing O p e ra tio n w it h in th e A n c i l la r y A c t i v i t i e s (N ote 1 2 ) .A p p lic a t io n o f these p r in c ip le s has re s u lte d in a d e p a r tu re from A c c o u n tin g S tandard AAS 10, A cco u n tin g fo r th e R e v a lu a tio n o f N on -C u rre n t A s s e ts .

( i i ) p r o v is io n s fo r rep lacem en t fo r n o n -c u r re n t a s se ts in th e A n c i l la r y A c t i v i t i e s have been based on c u r re n t c o s ts (N ote 9 ) .

( i i i ) c a p i t a l g a in s and lo s s e s r e a l is e d on the s a le o f n o n -c u r re n t a s s e ts h e ld by th e S u p e ra n nu a tio n Funds are in c lu d e d in income and measured on a h is t o r i c a l c o s t b a s is . T h is p roce d u re in v o lv e s the w r i t in g back o f any a s s e t r e v a lu a t io n s a g a in s t th e A sse t R e v a lu a t io n Reserve a c c o u n t.

( i v ) in v e s tm e n ts d is c lo s e d in S ta te m e n ts 2, 6 and 9 fo r S u p e ra n nu a tio n and Endowment T ru s t Funds a re shown a t m a rke t va lu e a t 31 December 1985.

A c c ru a l A c c o u n tin g

P r io r to 1981 th e U n iv e r s i t y 's accou n ts fo r g e n e ra l u n iv e r s i t y fu n d s , s p e c ia l purpose fu n d s , c a p i ta l w orks and s e rv ic e s fu n d s , endowment funds and su p e ra n n u a tio n funds were p repa red on a cash b a s is . The p r in c ip le s o f a c c ru a l a c c o u n tin g a re now b e in g p ro g re s s iv e ly adopted f o r a l l o f these fu n d s .

The p r in c ip le s o f a c c ru a l a c c o u n tin g a re a p p lie d in th e A n c i l la r y A c t i v i t i e s .

Commonwealth D e p artm en t o f F in a n c e G u id e lin e s

The U n iv e r s it y i s s u b je c t to th e G u id e lin e s fo r th e Form and S tandard o f F in a n c ia l S ta tem en ts o f Commonwealth U n d e rta k in g s issue d by th e D epartm ent o f F in a n c e . These g u id e lin e s are o p e ra t iv e in re s p e c t o f a c c o u n tin g p e r io d s end ing a f t e r 1 J u ly 1983. The U n iv e r s it y has n o t been a b le to com ply f u l l y w ith th e G u id e lin e s fo r the ye a r ended 31 December 1985. However, th e U n iv e r s it y has made a rrangem ents w ith th e D epartm en t o f F inance fo r the phased im p le m e n ta tio n o f th e G u id e lin e s .

M a tte rs s t i l l s u b je c t to t h i s phased im p le m e n ta tio n in o rd e r to a ch ie ve f u l l a d o p tio n o f th e G u id e lin e s in c lu d e :

( i ) a d o p tio n o f f u l l a c c ru a l a c c o u n tin g fo r a l l ite m s o f income and e x p e n d itu re ;

( i i ) d e p re c ia t io n o f n o n -c u r re n t a s s e ts ; and

( i i i ) re -asse ssm e n t o f ite m s in th e S ta tem en t o f C a p ita l A c c u m u la tio n .

18

The exclusion of accounting for depreciation of non-current assets from the University's accounts and the realisation of revalued non-current assets for Superannuation Funds using historical cost, have resulted in departures from Accounting Standard AAS 4, Depreciation of Non-Current Assets, and Accounting Standard AAS 10, Accounting for the Revaluation of Non- Current Assets respectively. The extent of the effect of these departures from professional Accounting Standards cannot be gauged at this time.

In accordance with the Guidelines, a Statement of Sources and Application of Funds (Statement 4) is included. The Funds Statement covers all areas of activity other than the Superannuation Schemes and the Endowment Trust Funds.

Valuation of Assets

. Current Assets

Materials in store are valued at average cost except for the Ancillary Activities where they are valued at the lower of cost or net realisable value.

. Non-Current Assets

These assets are stated at cost except for certain assets in the Housing Operation within the Ancillary Activities which are stated at their estimated current cost (Note 12).

. Investments

Investments are stated at historical cost except in Statements 2, 6 and 9 for Superannuation and Endowment Trust Funds where they are shown at current market values.

. Library Books

From 1 January 1985 book purchases for the official libraries have been treated as a recurrent expense (Statement 1) with the exception of rare and valuable items which are capitalised (Statement 2). The latter are valued on the basis of approved library criteria.

Library books and periodicals purchased prior to 1985 have been written off in 1985 (Note 13).

General University Funds

These funds relate to the income and expenditure relevant to the annual operating costs of the University.

Income is derived principally from the annual government grants for general expenditure and equipment and from the interest earned from the investment of those funds.

Special Purpose Funds

These funds relate principally to the numerous grants and donations accepted by the University to finance research projects, scholarship awards and prizes.

Capital Norks and Services Funds

These funds comprise the annual government grants for building works and site services.

19

Special Reserves

Special Reserves are created for funds which are retained and earmarked for expenditure on specified items in future years.

Non-Current Assets - Special Purpose Funds

Excluding investments, all non-current assets purchased from Special Purpose Funds are recorded and disclosed in General University Funds because the grants and donations from which the assets are purchased are attributable to the various Schools that comprise the General University Funds grouping.

Ancillary Activities

A number of activities, ancillary to the main functions of the University, operate under the University's administrative control and are collectively referred to as Ancillary Activities. The main purpose of the majority is to provide accommodation for students, staff and visitors. The others include such diverse facilities as a staff club, an arts centre and a campus shopping area. Ancillary Activities generate their funds wholly or substantially from charges made for the facilities. The Ancillary Activities comprise:

. Halls of Residence

Bruce HallBurton and Garran HallCorin House/Lennox House Block "A"Graduate House Toad Hall University House

. Other Ancillary Activities

Arts CentreCentre for Continuing Education Concessions Area Housing Operation Siding Spring Exhibition Siding Spring Lodge Staff Centre

Superannuation Funds

The University maintains the following Superannuation Funds

(i) The Commonwealth Superannuation Fund(ii) Statutory Trust Funds(iii) Other Trust Funds

University and staff contributions made to these funds are in accordance with approved pre­determined formulae.

In 1985, and in previous years, the moneys of the Superannuation Funds were lodged in a common bank account, and the funds were pooled and invested in a range of securities and real

20

e s ta te p r o p e r t ie s . The U n iv e rs it y was adv ise d by th e A tto rn e y -G e n e ra l 's D epartm ent in December 1984 th a t th e p o o lin g o f t r u s t funds and t h e i r in v e s tm e n t in o th e r th a n a u th o r is e d t r u s te e s e c u r i t ie s was no t p e rm is s a b le . The U n iv e r s i t y s u b se q u e n tly p rep a re d a S u p e ra n nu a tio n Funds (In ve s tm e n t and Management) S ta tu te w h ich g iv e s th e U n iv e rs it y th e r e q u is i t e pow ers. The S ta tu te was approved by th e G o ve rn o r-G en e ra l in J u ly 1986.A l l th e S uperannua tion schemes were c lo s e d to new members as from 1 A p r i l 1983 when th e U n iv e r s i t y jo in e d th e S uperannua tion Scheme fo r A u s t r a l ia n U n iv e r s i t ie s and to w hich many members t r a n s fe r r e d . However, the above schemes a re m a in ta in e d fo r th o se members who chose to rem ain in them to g e th e r w ith r e t i r e d members on b e n e f i t s .

Coaao w e a lth Superannuation Fund

The U n iv e r s it y m a in ta in s a fund on c o n d it io n s approved by th e T re a s u re r o f the Commonwealth to meet the e m p lo y e r 's l i a b i l i t y to th e Commonwealth S u p e ra n nu a tio n Scheme.

T ra n s fe rs a re made to th e fund each f o r t n ig h t in accordance w ith a p re d e te rm in e d fo rm u la approved by C o u n c il and based on a d v ic e from th e Commonwealth A c tu a ry . The A c tu a ry , in h is re p o r t as a t 30 June 1984, adv ised th e U n iv e r s it y t h a t th e re i s an uncovered l i a b i l i t y in th e p ro v is io n o f $ 1 3 ,7 1 1 ,0 0 0 . The A c tu a ry recommended th a t to e lim in a te th e d e f i c i t th e U n iv e r s i t y in c re a s e i t s c o n t r ib u t io n ra te to 24 p er c e n t o f s a la r ie s o f Commonwealth Scheme members, o r a l t e r n a t iv e ly m a in ta in th e c o n t r ib u t io n ra te a t 20 per c e n t o f s a la r ie s o f Commonwealth Scheme members b u t add a d e f ic ie n c y c o n t r ib u t io n o f 2 p e r c e n t o f s a la r ie s o f SSAU members who under the fo rm er a rrangem ents w ou ld have jo in e d th e Commonwealth Scheme.

However, th e U n iv e r s it y dec id e d th a t in view o f th e im proved in v e s tm e n t perfo rm ance o f su p e ra n n u a tio n funds w hich sh ou ld reduce the s iz e o f th e d e f i c i t , th e c o n t r ib u t io n r a te rem ain a t 20 p er c e n t and th a t th e s i t u a t io n be re c o n s id e re d a f t e r th e n ex t a c tu a r ia l re v ie w o f th e Fund in 1987.

The incom e, e x p e n d itu re and a s s e ts o f th e Commonwealth S u p e ra n nu a tio n Fund a re shown in S ta tem en ts 5 ,6 and 7 . As w e l l , because th e Commonwealth S u p e ra n nu a tio n Fund is n o t a t r u s t fu n d , in fo rm a t io n on th e income r e a l is e d on i t s in v e s tm e n ts and th e a s s e ts o f th e Fund a re a ls o d is c lo s e d in th e p r in c ip a l U n iv e r s it y f in a n c ia l s ta te m e n ts 1 and 2.

Superannuation Scheae for Australian U n iv ers itie s

From 1 A p r i l 1983 new s t a f f members employed by th e U n iv e r s it y are e l i g ib l e to jo in one su pe ra n n u a tio n scheme o n ly , th e S u p e ra n nu a tio n Scheme fo r A u s tra l ia n U n iv e r s i t ie s . The t r a n s fe r o f some e x is t in g s t a f f to t h is scheme re s u lte d in a t r a n s fe r o f a s se ts by th e U n iv e r s it y to th e Scheme over th e p e r io d J u ly - December 1984. The U n iv e r s it y c o n t r ib u te s to th e Scheme a t the ra te o f 14 per c e n t o f members' s a la r ie s .

Endowent Trust Funds

Endowments a re re c e iv e d by th e U n iv e r s it y to fu n d re s e a rc h a c t i v i t i e s , s c h o la rs h ip s , p r iz e s and le c tu r e s . Some o f these funds a re h e ld in t r u s t and are re p o r te d on in S ta tem ent 8 .

Investment of Funds

Funds a re in v e s te d in th e fo l lo w in g c a te g o r ie s under g u id e lin e s d e te rm in e d by th e C o u n c il o f

th e U n iv e r s i t y :

21

All Superannuation Funds

listed company shares listed company debentures public securities real estate short term deposits

All Other Funds

listed company debentures public securities short term deposits

F^jloyee Benefits

Full provision has been made for recreation leave and long service leave. The amount provided is dissected between current and non-current portions, the current provision being the portion that is expected to be paid within the next 12 months.

Anutech Pty Ltd

This Company is beneficially owned on behalf of the University. The directors' report, auditors' report, directors' statement and financial statement for the Company for the year ended 31 December 1983 are shown in Note 24.

General Service Fees

The University collects fees from students to support the provision of amenities and services not of an academic nature for students.

Balances and Transactions Between Funds

Balances and transactions between the separate funds within the University have not been eliminated on consolidation. However, it is considered that the amounts and the number of items involved are not material.

Comparative Figures - Ancillary Activities

For the 1985 Financial Statements there has been a reclassification of some expenditure items pertaining to the Ancillary Activities. This has necessitated a restatement of some 1984 expenditure totals.

22

12 NOTES ON AND FORMING PART OF THE ACCOUNTS

1. Sundry Incone

The major components of Sundry Income are listed below:

General Special Ancillary TotalUniversity Purpose ActivitiesActivities Activities

$000 $000 $000 $000

Gains on Sale of Assets 13 14 27Consultancy Income 2 46 48Royalties 2 106 108Subscriptions 75 75Sales 7 317 324Membership Fees 95 95Fines 22 4 26Sundry Income 488 823 286 1,597Community Education Fees 131 471 602

$665 $1,385 $852 $2,902

Funds Transferred for Capital Expenditure

During 1985 funds were applied to capital expenditure as follows:

General Special TotalUniversity PurposeActivities Activities$000 $000 $000

Equipment 9,325 548 9,873Motor Vehicles 328 22 350Buildings 2,182 276 2,458

$11,835 $846 $12,681

3. Salary Oncosts

This item includes the University's contribution of $7,574,000 to the Commonwealth Superannuation Scheme, $31,000 to Statutory Trust Schemes, $291,000 to Other Superannuation Trust Schemes, and $5,569,000 to the Superannuation Scheme for Australian Universities.

4. Sundry Expenses

The major components of Sundry Expenses are listed below:

General Special Ancillary TotalUniversity Purpose ActivitiesActivities Activities$000 $000 $000 $000

Commercial Audit Fees 116 9 125Books Journals Newspapers 501 89 11 601Advertising 360 17 36 413Equipment Hire 338 5 16 359Publishing Costs 286 412 25 723Bad Debts 4 4Other Administrative Expenses 537 1,815 355 2,707General Expenses 508 433 229 1,170

$2,646 $2,784 $672 $6,102

5. Charges not requiring Funds in Current Year

Non-fund charges for the year have been made as follows:

GeneralUniversityActivities

AncillaryActivities

Total

$000 $000 $000

Doubtful Debts 19 6 25Depreciation 460 460Equipment Replacement 219 219Land Replacement 139 139Building Maintenance 217 217Long Service Leave 1,924 49 1,973Recreation Leave 168 79 247Profit on Sale of Assets (13) (13)Loss on Sale of Assets 786 786Other 43 43

$2,884 $1,212 $4,096

6. Cash on Hand, at Bank and at Call (excluding Cowaonwealth Superannuation)

$000

24 Hour Call Deposits 10,000 Other Deposits at Call 3,236 Cash at Call 15,256 Cash at Bank 11,061 Bank Overdraft (10,024) Cash Held in Imprests 34

Total Cash at Bank and at Call $16,327

The shares of the respective funds (ie Cash Ownership) in this total are:

$000General University Funds 5,629Special Purpose Funds 9,628Ancillary Activities Funds 1,070

$16,327

7. Debtors

The balances for Debtors disclosed in Statement 2 are net balances. Gross amounts for Debtors and Provision for Doubtful Debts are as follows:

General Special Ancillary Cowaonwealth TotalUniversity Purpose Activities SuperannuationFunds Funds Funds Fund

$000 $000 $000 $000 $000

Gross Debtors Less Provision for

2,845 1,147 527 2,864 7,383

Doubtful Debts 84 15 187 286

Net Debtors $2,761 $1,147 $512 $2,677 $7,097

24

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General University Ancillary Coanonwealth TotalFunds Activities Funds Super Fund 1985 1984

$000 $000 $000 $000 $000

Current Provisions

Commonwealth Superannuation 4,547 4,547 2,915Long Service Leave 1,566 222 1,788 1,758Maternity Leave 22Relief StaffReplacement of Furniture

30 30 148

and Equipment 97 97 87Dwelling Insurance 42Maintenance of Buildings 401 401 267Recreation Leave 2,794 143 2,937 2,626Other 59 59 66

Total Current Provisions $4,360 $952 $4,547 $9,859 $7,931

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Commonwealth Superannuation 120,454 120,454 103,143Long Service Leave 16,746 141 16,887 14,943Relief StaffReplacement of Furniture

160

& Equipment 857 857 691Dwelling Insurance 235Replacement of Land 3,301 3,301 2,946Replacement of Dwellings 10,664 10,664 9,579Maintenance of Buildings 452 452 361Other 2

Total Long Ter« Provisions $16,746 $15,415 $120,454 $152,615 $132,060

Total Provisions $21,106 $16,367 $125,001 $162,474 $139,991

26

10. Income fro« Investments

For investments held by the University during 1985 the following income was earned. The investments on which the income was earned are those listed in Note 8, and the deposits disclosed in Note 6.

General Special Ancillary TotalUniversity Funds Purpose Funds Activities Funds

$000 $000 $000 $000

Investments

Cash Deposits (707) 1,126 441 860Semi-Government Stock 23 306 329Bank Accepted Bills Corporate Debentures

3,802 53 304 4,159

and Notes 890 280 164 1,334Letters of Credit 20 24 44Fixed Deposits Commonwealth Government

1 30 31

Bonds and Treasury Notes 267 94 361Loans 101 101Equities 14 14

Total Investment Income $4,397 $1,873 $963 $7,233

11. Creditors and Accruals

The item Creditors and Accruals is summarised as below:

CreditorsAccruals

General Special Ancillary Commonwealth TotalUniversity Purpose Activities SuperannuationFunds Funds Funds Fund

$000 $000 $000 $000 $000

3,414 2 398 249 4,0634,098 525 456 110 5,189

$7,512 $527 $854 $359 $9,252

27

12. Ancillary Activities - Housing Operation Assets

Dwellings, Land, Equipment and Furniture under the control of the Housing Operation Ancillary Activities,are valued annually as part of a Current Cost Accounting system. These assets at balancedate comprised:

1985 1984$000 $000

Dwellings 27,819 26,130Land 14,209 13,334Equipment and Furniture 74 67

The properties are revalued every five years by an independent qualified valuer and are updated by the use of appropriate price indices in the intervening years. The net revaluation of these assets is credited to the Current Cost Reserve account appearing in Statement 3. The latest independent valuation was performed on 1 July 1981.

13. Asset Adjustaents - Capital

This item comprises:

Historic cost of equipment dis­posals for the current year

Historic cost of library books written off in the current year

Adjustments in asset values for the current year

General Ancillary TotalUniversityActivities

Activities

$000 $000 $000

6,804 34 6,838

18,644 18,644

(198) (198)

$23,250 $34 $25,284

14. Current Cost Reserve

The Housing Operation has adopted a Current Cost Accounting system. Net increments in the current market values of assets are credited to the Current Cost Reserve account. See Note 12 on Ancillary Activities - Housing Operation Assets.

28

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16. Contributions of Members

These are managed by the University for the trust fund schemes. The Commonwealth Superannuation Fund employees' contributions are paid directly to the Superannuation Fund Investment Trust.

17. Unrealised Gains on Investments

All investments held by the Superannuation funds are revalued annually on 31 December at current market prices, while land and buildings are revalued every two years, the date of the last revaluation being 30 June 1984. The net revaluations are credited to the Unrealised Gains on Investment account. Realised gains(losses) on the sale of assets are included in the income of the funds and are shown in Statement 5.

18. Provision for Commonwealth Superannuation

Details of investments held to meet the Provision are disclosed in Statement 6.

19. Resources Provided Free of Charge

The site of 143 hectares on which the University is located in the Australian Capital Territory is held on lease in perpetuity.

20. Contingent Liabilities

Guarantees have been given:

. under the University's Staff Members' House Purchase Scheme to secure bank loans totalling $342,464 to University employees.

. to secure a loan of $362,988 made by the Commonwealth Savings Bank to the University Sports Union for building purposes; this loan is repayable by the Sports Union in equal half year instalments until 1993 and the principal sum outstanding at 31 December 1985 was $292,695.

21. Capital Expenditure and Lease and Hire Expenditure

Amounts contracted for and payable within twelve months after the end of the financial year ending31 December 1985, and which have not otherwise been provided for, are as follows:

General AncillaryUniversity Activities Superannuation TotalFunds Funds Funds

$000 $000 $000 $000

Capital Expenditure 2,030 239 5,745 8,014Lease and Hire Expenditure 170 1 171

$2,200 $240 $5,745 $8,185

22. Abnormal Items-Ancillary Activities

A reassessment was made in 1985 of the Ancillary Activities' provisions and this resulted in some of the balances being written back.

23. Abnormal Items - Superannuation Funds

This represents a capital gain realised in 1984 not brought to account.

30

24. ANUTECH PTY LIMITED(Incorporated in the Australian Capital Territory)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 1985

31

ANUTECH PTY LIMITED

DIRECTORS’ REPORTThe directors present their report on the results of Anutech Pty. Limited for the financial year ended 31 December 1985, and the state of affairs of the company at that date.

DIRECTORS

The directors in office at the date of this report are:

Mr Arthur John Russell Yencken, (Chairman)Dr Susan Caroline Bambrick Professor Allan Douglas Barton Professor John Henry Carver Mr Alfred Charles Copeman Professor Robert Porter Professor Ian Gordon Ross Mr John Robert Thomas Professor Ralph Gerard Ward

PRINCIPAL ACTIVITIES

The principal activities of the company during the year were to undertake research and experimental work and there was no significant change in the nature of these activities during that period.

OPERATING RESULTS

The net amount of the surplus of the company for the year ended 31 December 1985 was $163,823. The company is exempt from income tax.

DIVIDENDS

Under its memorandum and articles of association the company while remaining a going concern, is precluded from paying a dividend to its members.

SHARE OPTIONS

No shares or debentures or options on shares in the company were issued during the year.

32

DIRECTORS' REPORT (continued)DIRECTORS' BENEFITS

Since the end of the previous financial year, no director of the company has received or become entitled to receive any benefit, other than:

(i) a benefit included in the aggregate amount of emoluments received or due and receivable as shown in the accounts; or

(ii) the fixed salary of a full-time employee of the company or of a related corporation,

by reason of a contract made by the company or a related corporation with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

Signed in accordance with a resolution of the directors.

WL,I.G. Ross Director

CANBERRA 8 MAY 1986

b 0 )̂t

A.D. Barton Director

33

AUDITOR'S REPORT TO MEMBERS OF ANUTECH PTY LIMITED

We have audited the accounts set out on pages 4 to 10 in accordance with Australian Auditing Standards.

In our opinion:

(a) the accounts are properly drawn up in accordance with the provisions of the Companies Act 1981, and so as to give a true and fair view of:

(i) the state of affairs of the company at 31 December 1985 and of the surplus of the company for the year ended on that date;

(ii) the other matters required by Section 269 of that Act to be dealt with in the accounts:

and are in accordance with Australian Accounting Standards and applicable approved accounting standards.

(b) the accounting records and other records, and the registers required by that Act to be kept by the Company have been properly kept in accordance with the provisions of that Act.

CANBERRA

8 MAY 1986

ERNST & WHINNEY Chartered Accountants

A.N. WANNAN Partner

34

ANUTECH PTY LIMITED

DIRECTORS' STATEMENT

In the opinion of the directors of Anutech Pty Limited

(a) The accompanying income and expenditure account is drawn up so as to give a true and fair view of the results of the company for the year ended 31 December 1985.

(b) The accompanying balance sheet is drawn up so as to give a true and fair view of the state of affairs of the company as at 31 December 1985.

(c) At the date of this statement there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due.

The accounts have been made out in accordance with applicable approvedaccounting standards.

Signed in accordance with a resolution of directors

I.G. ROSS Director

CANBERRA 8 MAY 1986

A.D. BARTON Director

35

ANUTECH PTY LIMITEDINCOME AND EXPENDITURE ACCOUNTYEAR ENDED 31 DECEMBER 1985

Income from completed projects Administration income Other operating revenue

1985Note $

TO

3,521,094545,570109,335

$4,175,999

Operating surplus before income tax 2 163,823Income tax expense 3

Operating surplus

Accumulated funds at beginning of period

Accumulated funds at end of period

163,823

51,962

$215,785

4 MONTHS 31 DECEMBER

1984 $

549,756107,62013,532

$670,908

26,726

26,726

25,236

$51,962

36

ANUTECH PTY LIMITEDBALANCE SHEET 31 DECEMBER 1985

NoteSHARE CAPITAL AND RESERVES Authorised150.000 ordinary shares at $1.00 each Issued100.000 ordinary shares fully paid Accumulated funds

TOTAL SHARE CAPITAL AND RESERVES

Represented byNON-CURRENT ASSETS 4CURRENT ASSETS Cash on hand and at bank Deposit with Macquarie Investment Management Trust (formerly Hill Samuel Cash Management Trust)Commercial bills Debtors and prepayments StockIncomplete projects expenditure

TOTAL ASSETS

LessCURRENT LIABILITIES Creditors and accrued expenses Loan from The Australian National University Provision for annual leave Provision for long service leave Incomplete projects revenue

NET ASSETS

1985 1984$ $

$150,000 $150,000

100,000 100,000215,785 51,962

$315,785 $151,962

175,564 57,505

53,211 9,657

104,274 183,949390,230 145,722448,843 227,07658,657 25,174

3,533,331 934,834

4,588,546 1,526,412

4,764,110 1,583,917

622,061 301,930- 29,600

36,263 11,2228,940 7,494

3,781,061 1,081,709

4,448,325 1,431,955

$315,785 $151,962

37

ANUTECH PTY LIMITED

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 31 DECEMBER 1985

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies adopted by the company is set out in this note. The policies adopted are in accordance with accounting principles generally accepted in Australia, and unless stated otherwise, are consistent with those applied in the previous year.

(a) Basis of the preparation of the financial statementsThe financial statements have been prepared under the convention of historical cost accounting.

(b) DepreciationDepreciation is charged on the company's non-current assets under the prime cost method so as to write off the cost of the assets over their estimated useful lives.

(c) InvestmentsInvestments are shown at cost.

(d) Project income and expenditure carried forwardIncome and expenditure on research projects is not brought to account in determining the net surplus for the year until the relevant projects have been completed.

(e) StockStock is valued at the lower of cost and net realisable value.

(f) Employee benefitsProvision is made for long service leave and annual leave, estimated to be payable to employees on the basis of statutory and contractual requirements.

38

ANUTECH PTY LIMITED

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 31 DECEMBER 1985 (continued)

NOTE 2 : REVENUE AND EXPENSES4 MONTHS

TO DECEMBER1985 1984

$ $Surplus for the year has been arrived at after:

(a) Including as income: Interest received 108,040 13,532Surplus on sale of fixed assets 1,295 -

(b) Including as expense: Depreciation of fixed assets Interest paid to The Australian

32,886 4,718

National University 1,332 1,320Provision for long service leave 6,180 1,533Provision for annual leave Auditors remuneration

25,041 3,659

- audit services 8,000 2,520- other services - -

No other benefits were received by the auditors

NOTE 3 : INCOME TAX

No provision has been raised for income tax as the company is exempt under Section 23 of the Income Tax Assessment Act 1936.

NOTE 4 : NON CURRENT ASSETS

Accumulated Written DownCost_______ Depreciation Value_____

31.12.85 31.12.84 31.12.85 31.12.84 31.12.85 31.12.84$ $ $ $ $ $

Office furniture, fittings and equipment-administration 112,363 30,796 31,747 11,846 80,616 18,950-projects 38,227 16,823 15,114 3,342 23,113 13,481Motor vehicles 72,217 25,482 382 408 71,835 25,074

$222,807 $73,101 $47,244 $15,596 $175,564 $57,505

NOTE 5: The company is wholly owned by The Australian NationalUniversity.

39

ANUTECH PTY LIMITEDSTATEMENT OF SOURCES AND APPLICATIONS OF FUNDS YEAR ENDED 31 DECEMBER 1985

$SOURCES OF FUNDS

Funds from operationsInflows of funds from operations Less: outflows of funds from operations

4,174,7043,948,069

Proceeds from sale of fixed assets226,63517,425

Decrease in current assetsDeposit with Macquarie Investment Management Trust 79,675

Increase in current liabilitiesCreditors and accrued expenses Incomplete projects revenue

320,1312,699,352

$3,343,218

APPLICATIONS OF FUNDS

Fixed assets acquired 167,075

Increase in current assets Cash on hand Commercial bills Debtors and prepayments StockIncomplete projects expenditure

43,554244,508221,76733,483

2,598,497

Reduction in current liabilitiesLoan from The Australian National University 29,600

Long service leave paid 4,734

$3,343,218

40

ANUTECH PTY LIMITED

STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS (continued)YEAR ENDED 31 DECEMBER 1985

$Reconciliation of funds from operations with net surplus:-

Funds from operations 226,635Add:Profit on sale of fixed assets 1,295

227,930

Less:Depreciation 32,886Increase, in provision for long service leave 6,180Increase in provision for annual leave 25,041

64,107

Net surplus for the year $163,823

41