annual report - cquniversity australia...higher education delivery, cquniversity continued to cement...

ANNUAL REPORT2018

25 February 2019

The Honourable Grace Grace MP

Minister for Education and

Minister for Industrial Relations

Department of Education

PO Box 15033

CITY EAST QLD 4002

Dear Minister

I am pleased to submit for presentation to the

Parliament the Annual Report 2018 and financial

statements for Central Queensland University.

I certify that this Annual Report complies with:

» the prescribed requirements of the Financial

Accountability Act 2009 and the Financial and

Performance Management Standard 2009, and

» the detailed requirements set out in the ‘Annual report

requirements for Queensland Government agencies’.

A checklist outlining the annual reporting requirements

can be found at page 114 and 115 of this annual report.

Yours sincerely

Mr John Abbott

Chancellor

OBJECTIVES OF CQUNIVERSITY’S ANNUAL REPORTThis report describes the University’s performance, achievements, outlook and financial position for the calendar year 2018. The report is also of interest to Members of Parliament, CQUniversity employees, students, prospective students, key stakeholders, other universities, researchers and other members of the community.

CQUniversity contributes to the Queensland Government’s objectives for the community through academic excellence, skills training, career pathways/development, community relationships, fiscal responsibility and new infrastructure.

ACKNOWLEDGEMENT OF COUNTRYCQUniversity recognises that its campuses are situated on Country for which Aboriginal people have been custodians for many centuries. In acknowledging this, the University pays its respects to the Elders, past, present and future, for they hold the memories, the traditions, the cultures and hopes of Indigenous Australia.

© Central Queensland University 2019

INTERPRETERCQUniversity is committed to providing accessible services to people from culturally and linguistically diverse backgrounds. If you have difficulty in understanding the Annual Report, contact CQUniversity on +61 7 4930 9777 and arrangements will be made for an interpreter to effectively communicate the report to you.

CONTACT DETAILSDetails on how to access this annual report or contact the University are published on the back cover.

CONTENTSYear in review 01

About CQUniversity 03

Organisation 04

Governance 07

Workforce people and culture 18

Strategic intent and values 20

Strategic plan 2018 – 2022 21

Performance 22

Financial summary 44

Statistics 46

Council members’ report 50

Financial statements 53

CQUniversity locations 112

Glossary 113

Compliance checklist 114

012018 ANNUAL REPORT | CQUNIVERSITY AUSTRALIA

CQUniversity continued to broaden work-integrated learning and international study opportunities for students, and focused on improving its business operations and the student experience to support success in these areas. Through increased partnerships and greater engagement with business, industry and the health and services sectors, CQUniversity created new opportunities in Australia and overseas for students to undertake work placements and study overseas to graduate with work-ready skills. Work-integrated learning and global learning experiences will enable CQUniversity to build on its ranking among the top three universities in Australia for graduate employment and starting salaries.

CQUniversity research also continued to expand and focus on delivering real outcomes with researchers contributing to hundreds of projects across Australia and the globe. The new technology-based DataMuster system for automated livestock management, showcased during Beef Week 2018, illustrates CQUniversity’s commitment to delivering real research outcomes that progress regional development. DataMuster has since been deployed internationally at two Argentinian research stations, extending the reach of this new technology. The impact of this and many other research projects is greatly enhancing CQUniversity’s reputation as a university that creates impact through engagement and collaboration.

We were pleased to see CQUniversity staff, students and graduates recognised for their outstanding achievements, highlighting the exceptional quality and commitment of our university community. Among those recognised were Professor Henrietta Marrie AM and Associate Professor Sharyn Eaton OAM, earning Australia Day Awards for significant service in their respective fields of endeavour. Distinguished CQUniversity Alumnus, the late Terry Effeney, was posthumously awarded the Order of Australia (AO) in the Queen’s Birthday Honours for his major contribution to the energy supply sector. Associate Professor Anita Bowman has again received national recognition, this year being awarded Educator of the Year as well as the Sonographer of the Year – The Pru Pratten Memorial Award from the Australasian Sonographers Association.

YEAR IN REVIEW CQUniversity experienced positive growth and ended the year in a stable financial position in 2018, with the small surplus posted being better than Council expectations after the funding changes. Exceeding expectations for increases in international students and investment in facilities to support vocational and higher education delivery, CQUniversity continued to cement its growth in other key areas, including reach, research, student experience, quality, engagement and social innovation.

CQUniversity sustained its commitment to growth despite challenges emerging in the broader higher education sector due to funding cuts to Commonwealth-supported places and research. These cuts will continue to be felt in 2019, but preparing for this has been a strong focus for CQUniversity and the sector as a whole.

CQUniversity capitalised on recent international student growth and subsequent revenue to invest in new higher and vocational education courses and infrastructure, aimed at attracting students into the future. CQUniversity took a strategic approach to this investment and worked extensively with industry to deliver courses that directly meet key skill shortages in certain markets.

As the only university with a campus presence in every Australian mainland state, CQUniversity is able to reach out to students across Australia to provide them with a variety of pathway, course and delivery modes. CQUniversity’s expansion of mixed-mode and residential delivery options in vocational education illustrates the University’s commitment and capacity to respond to regional community needs.

This reach and presence enables people from diverse backgrounds and locations at every stage of their life to access quality vocational and higher education, and short course and professional development options. Despite funding cuts to higher education and a decline in sector-wide demand in the vocational education market, CQUniversity is prepared to manage these challenges by drawing on prior-year surpluses, and has begun to see positive upward growth in vocational education.

CQUniversity’s flexible approach to learning and teaching led to the development and launch of Australia’s first online, fully self-paced Master of Business Administration. This MBA (Leadership) degree offers students maximum flexibility, enabling online study with no term-by-term assessment or exam deadlines, while meeting stringent academic quality standards. Students have five years to complete the course and the flexibility to balance study with other life commitments. Priced at just $7000, the online MBA (Leadership) is affordable and accessible. We anticipate CQUniversity and the broader tertiary education sector will continue to disrupt the status quo and innovate in learning and teaching in response to ever-changing environmental challenges.

02 2018 ANNUAL REPORT | CQUNIVERSITY AUSTRALIA

Initiated in 2017, the Joint Re-Registration Project continued through 2018. The project positioned CQUniversity to renew its registration as a higher education provider and registered training organisation with regulators, Tertiary Education Quality and Standards Agency (TEQSA) and Australian Skills Quality Authority (ASQA) respectively, and re-registration by both regulators as a CRICOS-approved provider of education and training to international students.

Since becoming a dual sector university in 2014, this was the first time CQUniversity was required to renew its registration with two regulators, and this was undertaken concurrently. Following assessment of CQUniversity’s renewal application, TEQSA and ASQA unconditionally renewed the University’s registration for the maximum allowable period of seven years. The re-registration process not only led to improved policy and practice in some areas, but also highlighted the overall strength of CQUniversity’s corporate and academic governance across higher and vocational education. We wish to acknowledge the commitment of all members of staff who contributed to this complex project.

CQUniversity finished 2018 in a stable financial position, achieving better than the budgeted position endorsed by Council, through good financial management and implementing proven business efficiencies in a difficult funding year. While the overall bottom line decreased from previous years, the net savings and cash balance have held. This strong financial position, built over a number of years, has allowed CQUniversity to meet the funding challenges in the vocational and higher education sectors over the past year.

In early 2019, CQUniversity will farewell Professor Scott Bowman as he retires from his highly successful term as Vice-Chancellor and President. An extensive recruitment campaign was undertaken in 2018, attracting high quality candidates with distinguished careers. Professor Nick Klomp from the University of Canberra was the successful appointee as the new Vice-Chancellor and President to lead CQUniversity into the next phase of its development from February 2019.

We recognise the unwavering hard work and enthusiastic support from Council and the broader community of employees and students that make CQUniversity such a great place to work and study, and look forward to many more achievements in the year ahead.

Mr John AbbottChancellor

Professor Scott BowmanVice-Chancellor and President


ABOUT CQUNIVERSITY CQUniversity Australia has been on a phenomenal trajectory in recent years, and its remarkable growth in student numbers, new courses, new campuses, infrastructure and reputation has seen it emerge as one of Australia’s truly great universities.

Founded in Rockhampton in 1967 as the Queensland Institute of Technology Capricornia, it was later granted full university status in 1992 and renamed the University of Central Queensland. The University rebranded to CQUniversity in 2009 and now has over 33 000 students. CQUniversity has firmly established itself as one of the largest universities based in regional Australia, with campuses in Adelaide, Brisbane, Bundaberg, Cairns, Emerald, Gladstone, Mackay, Melbourne, Noosa, Perth, Rockhampton, Sydney and Townsville. CQUniversity also operates study centres in Biloela, Broome, Busselton, Charters Towers, Karratha, and Yeppoon, and delivers courses in Cooma and Geraldton in partnership with the local university centres.

CQUniversity’s merger with CQ TAFE in 2014 brought together more than 175 years of combined experience in delivering education and training, establishing Queensland’s first comprehensive, dual sector university. As a result, CQUniversity now delivers over 300 education and training offerings, from short courses and certificates through to undergraduate, postgraduate and research degrees. Study areas include apprenticeships and traineeships; business, accounting and law; creative, performing and visual arts; education and humanities; engineering and built environment; health; information technology and digital media; psychology, social work and community services; science and environment; and work and study preparation.

A pioneer in distance education, CQUniversity continues to be a leader in this area with almost half of its current student cohort studying off-campus, many of whom are based in rural and remote areas. CQUniversity also offers on-campus, intensive English language courses as a pathway to tertiary studies.

CQUniversity has collaborated with stakeholders in regional Australia for over 50 years, and has become a renowned research institution in several key disciplines. Its applied research focus is oriented towards real-world outcomes aimed at solving challenges and identifying new opportunities for advancement in our regions and beyond.

In 2015, this research focus saw CQUniversity achieve Excellence in Research Australia (ERA) results of at, above or well above world standard in 14 research categories. These include mathematical sciences, applied mathematics, psychological and cognitive sciences, nursing, medical and health sciences, agriculture, environmental science, and mechanical engineering.

CQUniversity is proud to be recognised as Australia’s most inclusive university, with some of the highest percentages of students from disadvantaged, mature age, Indigenous, and first-generation backgrounds. This diversity reflects CQUniversity’s values and commitment to inclusive student access and participation in tertiary education.

CQUniversity graduates have some of the best employment outcomes. Recent data shows 80.4 per cent of domestic undergraduate students find full-time employment within three months of graduation, almost 10 per cent higher than the national average of 70.6 per cent. Also, Quality Indicators for Learning and Teaching website data shows that CQUniversity outperforms most Australian universities for study support, medium-term graduate employment, and graduate salary outcomes.

CQUniversity is strongly focussed on social innovation and global outreach, and fosters key partnerships with communities, industry and government, in Australia and overseas. This commitment to engagement and social advancement led CQUniversity to become Australia’s first and only Ashoka U-recognised changemaker campus, part of a global social innovation network aiming to overcome social disadvantage.

CQUniversity’s diversity, inclusiveness and engagement in education, training and research; its global outreach and social innovation; and its continued investment and growth has led to remarkable achievements. CQUniversity is now recognised within the top 600 universities in the world by the prestigious Times Higher Education World Rankings, and among the world’s best ‘young universities’ by the Times Higher Education and QS World University Rankings.

AT A GLANCEKey factsCourses on offer Over 300

Campuses and centres 24

Total employees Over 3 000

Total students 33 238

New students 13 033

Students studying on campus 21 319

Students studying online 12 212

Student in a pathway or enabling course 2 099

Indigenous students 1 226

International students 7 511

Regional/rural/remote area students 17 969

Students graduated 2 476

Students receiving financial/scholarship help Over 1 300

Student scholarships on offer Over $3m

Competitive research grant funding $11.4m

Facility and infrastructure investment $16.7m

New technology investment $13.1m


ORGANISATION REGIONSCQUniversity is a national university, with 24 locations grouped into 13 distinct regions across five Australian states. These regions feature a combination of one or more campuses, study centres or hubs, all of which have unique characteristics. Details of CQUniversity locations are published at the end of this annual report.

Led by an Associate Vice-Chancellor, each region contributes to the University’s growth, development and sustainability, and to achieving university-wide strategic and operational objectives. CQUniversity’s regions promote a positive and collaborative culture while seeking out and maximising ‘local’ opportunities.

Vice-Chancellor and PresidentProfessor Scott Bowman

Vice-Chancellor and President Division

Senior Deputy Vice-Chancellor

(International and Services)

Mr Alastair Dawson

International and Services Division

ProvostProfessor Helen

Huntly OAM

Tertiary Education Division

Deputy Vice-Chancellor

(Finance and Planning)

Ms Narelle Pearse

Finance and Planning Division


(Engagement, Campuses

and Mackay–Whitsunday Region)

Professor Pierre Viljoen

Engagement and Campuses Division


(Research)Professor Grant

Stanley

Research Division


(Student Experience and Governance)Mrs Joanne Perry

Student Experience and Governance

Division


(Strategic Development and

Growth)Professor Fiona

Coulson

Strategic Development and Growth Division

University Council

EXECUTIVE MANAGEMENT STRUCTURE


(From left) Professor Helen Huntly OAM, Professor Pierre Viljoen, Ms Narelle Pearse, Professor Scott Bowman, Professor Grant Stanley, Professor Fiona Coulson, Mr Alastair Dawson, Mrs Joanne Perry.

SENIOR DEPUTY VICE-CHANCELLOR (INTERNATIONAL AND SERVICES) Mr Alastair DawsonBA DDIAE, MBA CQU, MAICD, FAIM

International and Services Division

» Leadership of CQUniversity’s corporate and international services

» Marketing » Facilities Management » Information and Technology » Library Services » Student Residences » People and Culture » Commercial and retail operations » CQUEnglish—four English language centres » International student recruitment and admissions » International partnerships, business

development and projects » International operations, compliance,

and government relations » Offshore CQUniversity offices

EXECUTIVE MANAGEMENT TEAMThe Executive Management team is led by Professor Scott Bowman, the University’s Vice-Chancellor and President and Chief Executive Officer. Professor Bowman works in close cooperation with the University Council, of which he is a member, and also with a wide range of internal and external stakeholders to provide overall leadership and direction for the University.

The Vice-Chancellor and President is supported by the executive management team. Each team member leads a division with a portfolio of responsibilities across the University’s regions and national footprint. Following the retirement of Professor Andy Bridges, former Deputy Vice-Chancellor (Student Experience and Strategic Development) in 2018, the team’s divisional responsibilities were realigned to the positions of Deputy Vice-Chancellor (Student Experience and Governance) and Deputy Vice-Chancellor (Strategic Development and Growth). Executive team members and their divisional responsibilities are summarised below.

VICE-CHANCELLOR AND PRESIDENTProfessor Scott BowmanTDCR, DCR, HDCR CollRadiog, FAETC City&Guilds, MA GuildHall, MBA USC, PhD OpenUK, FAIM, FQAAS

Vice-Chancellor and President Division

» Leadership of CQUniversity’s strategic planning, finance and external affairs

» Government Relations » Development and Alumni Relations » Art Collection


PROVOSTProfessor Helen Huntly OAMDipT(HlthPhysEd) KGCAE, BEd BCAE, MEdSt, EdD CQU

Tertiary Education Division

» Leadership of CQUniversity’s higher education and VET » School of Access Education » School of Business and Law » School of Education and the Arts » School of Engineering and Technology » School of Health, Medical and Applied Sciences » School of Nursing, Midwifery and Social Sciences » Learning and Teaching » VET Operations and Growth » Flexible Learning and Innovation Projects

DEPUTY VICE-CHANCELLOR (ENGAGEMENT, CAMPUSES AND MACKAY–WHITSUNDAY REGION)Professor Pierre ViljoenBA(Hons), MA PU for CHE, PhD (Industrial Psychology) NWU, Psychologist (QLD), MAPS

Engagement and Campuses Division

» Leadership of CQUniversity’s engagement, social innovation and regional network

» Associate Vice-Chancellors » Office of Social Innovation » Office of Engagement » Office of Indigenous Engagement

DEPUTY VICE-CHANCELLOR (FINANCE AND PLANNING)Ms Narelle PearseBComm JCU, GradDipPsych CQU, EMBA, MComm QUT, FCA

Finance and Planning Division

» Leadership of CQUniversity’s financial and strategic planning, risk management and business intelligence

» Financial accounting and operations (incl. procurement) » Corporate budget » Strategic planning » Risk management » Business intelligence and analytics

DEPUTY VICE-CHANCELLOR (RESEARCH)Professor Grant StanleyBEng(Chem), PhD Melb

Research Division

» Leadership of CQUniversity’s research growth in excellence and impact

» Office of Research (grants, partnerships, ethics, legal) » School of Graduate Studies (research higher degrees) » Research engagement and stakeholder linkages » Research contracts and commercialisation » Research performance and reporting

DEPUTY VICE-CHANCELLOR (STUDENT EXPERIENCE AND GOVERNANCE) Mrs Joanne PerryAssDipBus(HospMgt) CQTAFE, MTEdMgt Melb, GAICD

Student Experience and Governance Division

» Leadership of CQUniversity’s governance and services supporting student success

» University Secretary » Corporate Governance » Vocational Governance » Student Governance » Student Experience » Internal Audit » Legal Services » Student Ombudsman » Student Representative Council » Corporate Communications » Corporate Events and Graduation

DEPUTY VICE-CHANCELLOR (STRATEGIC DEVELOPMENT AND GROWTH) Professor Fiona CoulsonBSc(Hons), PhD UQ

Strategic Development and Growth Division

» Leadership of CQUniversity’s ‘dare to be different’ agenda

» Strategic development, innovation and growth

Chancellor, Mr John Abbott (right), presented Professor Bowman with a citation on his appointment as Emeritus Professor of CQUniversity during his final graduation ceremony at Rockhampton campus in December. This appointment acknowledges Professor Bowman’s leadership of CQUniversity’s remarkable journey over the past decade.


GOVERNANCE CQUNIVERSITY COUNCILCQUniversity’s Council is the University’s governing body. Council’s functions, powers and membership are prescribed in the Central Queensland University Act 1998. Council members are duty-bound to act honestly and with integrity; exercise due care, skill and diligence in their duties; make appropriately informed decisions; and to act always in CQUniversity’s interests.

The Council Charter governs Council operations and requires members to comply with CQUniversity’s employee Code of Conduct. The Charter was updated in 2018 to align with the Council Remuneration Policy and Election of Members to Council Policy and Procedure.

COUNCIL MEMBERSHIPCouncil meetings were held on 14 February, 18 April, 1 May (Special), 27 June, 29 August, 23 October and 30 November 2018. Details of Council membership and meeting attendance are provided below.

CHANCELLOR (CHAIR) Mr John AbbottBEng(Mech) QIT, LLB QUT, CPEng, RPEQ, FIEAust, MAICD(Attended 7 of 7 meetings)

VICE-CHANCELLOR AND PRESIDENTProfessor Scott BowmanTDCR, DCR, HDCR CollRadiog, FAETC City&Guilds, MA GuildHall, MBA USC, PhD OpenUK, FAIM, FQAAS(Attended 7 of 7 meetings)

PRESIDENT, ACADEMIC BOARDProfessor Bronwyn Fredericks (resigned 6 April 2018)CertIVComCult Creative Connections, CertIVTrainAssess GladTrainServ, DipTeach(Sec) BCAE, BEd, MEd QUT, MEdSt Tas, PhD CQU(Attended 0 of 1 meeting)

Associate Professor Celeste Lawson (term began 11 April 2018)BA(Journ) USQ, GradCertTertEd CQU, GradDipProfComm(AppComm), MProfComm USQ, PhD CQU, MPRIA(Attended 6 of 6 meetings)

MEMBERS APPOINTED BY THE GOVERNOR-IN-COUNCILDr Robyn Minchinton (Deputy Chancellor)BAppSc(MLS) RMIT, GradDipScsComm CQU, PhD London(Attended 7 of 7 meetings)

Mr Graham Carpenter (term concluded 26 May 2018)GradDipMgt CIAE, MBA CQU, FCA, FAICD(Attended 3 of 3 meetings)

Ms Mary Carroll (resigned 9 February 2018)MAICD(Attended 0 of 0 meetings)

Dr Rochelle Macdonald (term began 27 May 2018)BSc(Hons) Tas, MEngMgt UTS, ProgLeadDev Harvard, PhD Curtin, GAICD(Attended 3 of 4 meetings)

Mr Ian McPhee AO PSM (term began 27 May 2018)BBus(Acct) CQU, BA(CompSt) Canberra, HonDUni CQU, FCPA, FCAANZ, FIPAA, GAICD(Attended 4 of 4 meetings)

Emeritus Professor Robert CastleMEc Syd, DLett(hon causa) UOW, Fellow UOWD(Attended 7 of 7 meetings)

Mr Peter Corones AMCompanion CQU, MAICD(Attended 7 of 7 meetings)

ADDITIONAL MEMBERS APPOINTED BY COUNCILMs Patrice BrownCertSugarTech TAFE, CertMaritimeEnvMgt Lloyds, DipBus AICD, BAppSc(Chem) CQU, MEng(Civil) UNSW, MEIANZ(Attended 6 of 7 meetings)

Mr Joel BuchholzBEd(Sec)(Hons) CQU, GradCertCS PNUE, FRSA, MACEL, MACE(Attended 7 of 7 meetings)

Mr Mark PetersBA Macq, LLB Sydney, MSc Oxf, FAICD, CMgr FIML, FAHRI(Attended 6 of 7 meetings)

Ms Shelia Houston (term began 27 June 2018)BGenBus Wichita, GAICD(Attended 4 of 4 meetings)

ELECTED STUDENT MEMBERSMr Shirish Pandey (term concluded 6 July 2018)BBusAdmin Pokhara(Attended 4 of 4 meetings)

Mr Vindhya Pokharel (term began 13 August 2018)BEng(MechEng) KU(Attended 3 of 3 meetings)

ELECTED STAFF MEMBERS Mr Bruce Young (Professional)BAppSc(Math&Comp) UCQ, APESMA, ITPA(Attended 6 of 7 meetings)

Dr Gerard Ilott (Academic) (term began 1 February 2018)BBus(IS) UCQ, MBIT USQ, PhD CQU, FCPA, CA, MACS(Attended 7 of 7 meetings)


Council is managed and supported by the following employees, respectively:

UNIVERSITY SECRETARY Deputy Vice-Chancellor (Student Experience and Governance)Mrs Joanne PerryAssDipBus(HospMgt) CQTAFE, MTertEdMgt Melb, GAICD

COUNCIL SECRETARYDirector, Corporate Governance and Council SecretaryMs Kylie WhiteCertGovPrac CSA, BMmSt CQU, GradCertQA Melb, GAICD

COUNCIL REMUNERATIONCouncil members may elect to be remunerated, in accordance with CQUniversity’s Council Remuneration Policy. Remuneration is in recognition of activities and functions related to Council membership. The University also covers out-of-pocket expenses for Council meeting attendance. Full details of remuneration and expenses paid to members are available on CQUniversity’s website (www.cqu.edu.au/about-us/structure/governance/annual-report).

COUNCIL COMMITTEESCouncil has five subcommittees, each with a specialist function that supports Council to oversee CQUniversity’s operations:

» Academic Board » Audit, Risk and Finance Committee » Ceremonial and Honorary Awards Committee » Chancellor’s Committee (acts as an executive

appointments committee, a Council membership committee, and the executive committee of Council)

» Strategic Planning and Projects Committee.

COUNCIL HIGHLIGHTS Council’s 2018 highlights include:

» appointing a new Vice-Chancellor and President for early 2019

» appointing additional Council members, renewing and finalising member appointments to Council and its subcommittees

» re-appointing the Deputy Chancellor » appointing external members to

Council subcommittees » appointing the new President of Academic Board » re-appointing the Deputy President of Academic Board » monitoring budget forecasts and

approving the 2019 budget » monitoring CQUniversity’s finances

and the impact of major projects

» considering CQUniversity’s footprint and campus directions, future major projects and blue-sky opportunities

» approving the Strategic Action Plan 2018–2019 » establishing CQUniversity’s subsidiary

company, DataMuster Pty Ltd » addressing recommendations of the 2017 External

Review of Corporate and Academic Governance, with eight out of ten recommendations completed, and

» introducing the Council Bulletin to better communicate Council’s operations and outcomes to employees.

Council held its annual planning and strategy session in February, during which it reaffirmed CQUniversity’s commitment to engagement, social innovation, and its values. Council also considered opportunities for commercial activities to support non-commercial initiatives, and education and research programs that could positively impact CQUniversity’s communities.

EVALUATION AND PROFESSIONAL DEVELOPMENTIn line with best-practice corporate governance, CQUniversity conducts coordinated committee performance evaluations. A Council member evaluates the quality, effectiveness and documentation of each meeting. For over a decade, annual online self-evaluation surveys have been conducted, which continue to indicate Council’s operations are successful.

Council members undertake professional development as a continuous improvement measure, supported by an annual professional development plan and budget. Professional development comprises regular pre-meeting briefings, focus item discussions at Council meetings, and attendance at conferences and other events.

In 2018, Council members were briefed on several significant issues, including Council’s due diligence and responsibilities for occupational health and safety; the Vice-Chancellor and President’s role (to inform the role’s recruitment process); Academic Board’s role and its academic governance processes; and a New South Wales region overview including challenges and opportunities. Members also attended the Ashoka U Exchange in Boston, the CASE Asia–Pacific Advancement Conference, the National Conference on University Governance, and the annual CQUniversity Senior Leadership Conference.


CORPORATE GOVERNANCE

UNIVERSITY ESTABLISHMENT AND FUNCTIONS The University was established by and derives its functions and powers from the Central Queensland University Act 1998 (the Act). The Act established CQUniversity as a body corporate with a seal that may sue and be sued in its corporate name. Under the Act, CQUniversity’s functions are:

a. to provide education at university standardb. to provide facilities for, and encourage,

study and researchc. to encourage the advancement and development

of knowledge, and its application to government, industry, commerce and the community

d. to provide courses of study or instruction (at the levels of achievement the council considers appropriate) to meet the needs of the community

e. to confer higher education awards

f. to disseminate knowledge and promote scholarshipg. to provide facilities and resources for the wellbeing

of the university’s staff, students and other persons undertaking courses at the university

h. to exploit commercially, for the university’s benefit, a facility or resource of the university, including, for example, study, research or knowledge, or the practical application of study, research or knowledge, belonging to the university, whether alone or with someone else, and

i. to perform other functions given to the university under this or another Act.

In conjunction with amendments to the Central Queensland University Act, the TAFE Queensland Act 2013 established CQUniversity as a dual sector university. From June 2018, the University Legislation Amendment Act 2017 required CQUniversity to implement a Council member election policy, resulting in updates to CQUniversity’s existing election procedure in 2018.

UNIVERSITY COMMITTEE STRUCTURE

Education Committee

Learning and Teaching Committee

Research Committee

Social Innovation Engagement Committee

Research Higher Degrees Committee

Academic Appeals Committee

Student Participation and Retention Committee

Academic BoardAudit, Risk and Finance

CommitteeStrategic Planning and

Projects CommitteeCeremonial and Honorary

Awards Committee

Vice-Chancellor and President

Business Continuity Planning Committee

Indigenous Employment Reference Group

Academic Promotions Committee

Vice-Chancellor's Advisory Committee

Executive Management Committee

Chancellor's Committee

Council


UNIVERSITY GOVERNANCE CODE OF PRACTICE CQUniversity reviews its corporate governance annually to comply with the Voluntary Code of Best Practice for the Governance of Australian Public Universities, as it is now called. These reviews aim to ensure Council members understand their roles and duties, foster transparency and accountability, and thereby strengthen performance evaluation and good governance practices. The revised and renamed Voluntary Code, introduced in May 2018, was adopted by Council at its August meeting. CQUniversity maintained its compliance with the Voluntary Code throughout 2018.

GOVERNANCE HIGHLIGHTS CQUniversity promotes good governance practices through its University committee structure, policy framework, and continuous improvement system. These practices are adopted by Council and CQUniversity’s decision-making and advisory committees to achieve enhanced business efficiencies, accountability and transparency.

CQUniversity has internal employee and student services feedback and evaluation measures, and complaint resolution policies and processes that support effective governance and improvement. Student services include Student Advocacy Officers and the Student Ombudsman. External scrutiny by the Queensland Ombudsman, and various independent agencies, ensure CQUniversity’s governance is accountable and transparent, and is responsive to recommendations for improvement as needed.

Continuous improvement to CQUniversity’s governance in 2018 included:

» ongoing implementation of the continuous improvement-focussed recommendations from the 2017 external review of CQUniversity’s corporate and academic governance arrangements

» re-scoping of the Student Participation and Retention Committee, responsible for the University-wide planning, direction and implementation of all projects and activities aimed at improving student participation, retention and completion

» greater delegated authorities to Academic Board subcommittees

» increased awareness of the framework and associated templates that effectively manage right to information and information privacy applications

» completion of a register of legislative compliance obligations, identifying the corresponding University policy document approved to administer the legislation and associated reporting cycles

» development and go-live of the inclusion of vocational education and training operations in CQUniversity’s academic governance enterprise system

» scoping of an electronic committee system, including a review of committee operations.

STATUTORY OBLIGATIONS

WORKING WITH CHILDREN CQUniversity complies with the Children (Risk Management and Screening) Act 2000 to promote and protect the rights, interests and wellbeing of children and young people. The Act requires all employees and volunteers working with children and young people to have a current positive notice (known as a Blue Card). CQUniversity requires all employees in certain categories (such as student counsellors) to hold Blue Cards as a condition of their employment.

OVERSEAS STUDENTS STUDYING IN AUSTRALIA ON A STUDENT VISA CQUniversity complies with the Education Services for Overseas Students Act 2000 and the National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students 2018 (National Code) to protect the rights and interests of overseas (international) students studying in Australia on a student visa. CQUniversity applies the nationally-consistent standards to its education and training of international students and registration of its courses. CQUniversity maintains relevant policies and procedures, which were updated in 2018 to align with amendments to the National Code.

FINANCIAL ACCOUNTABILITY CQUniversity continued to monitor its compliance with the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009. The Audit and Advisory team performs financial compliance reviews yearly as part of its annual Internal Audit Plan. These reviews assure Council’s Audit, Risk and Finance Committee that CQUniversity is compliant with the legislation and standard.

MANAGING PUBLIC INTEREST DISCLOSURES CQUniversity complies with the Public Interest Disclosure Act 2010 to encourage the disclosure of information about suspected wrongdoing in the University so it can be properly evaluated and, if necessary, investigated and appropriate action taken to address the issue. CQUniversity’s Public Interest Disclosure Management Policy and Procedure sets out the process of disclosures, which are first made to the University and then reported to the Queensland Ombudsman.


EMPLOYEE CODE OF CONDUCT CQUniversity reaffirms its commitment to the ethical principles prescribed in Queensland’s Public Sector Ethics Act 1994 through the Code of Conduct. The Code goes beyond the Act’s emphasis on good public administration to demonstrate how ethical principles are fundamental to CQUniversity’s operations; these principles are also reflected in CQUniversity’s values.

The Code provides guidance on appropriate conduct for employees, Council members and all individuals affiliated with CQUniversity; it embodies the ethical values of integrity and impartiality, accountability and transparency, commitment to the system of government, participation as a community of scholars, and promotion of the public good. The Code prescribes “the standards we live by” and is to be read in conjunction with CQUniversity’s policies and procedures. The requirement to comply with the Code, and the rights and obligations of individuals to whom the Code applies, are prescribed in CQUniversity’s Enterprise Agreement and relevant policies, including the Council Charter.

CQUniversity’s Corporate Induction, Corporate Refresher and Zero Tolerance programs inform and reiterate the Code’s requirements and employee obligations under the Act. All new employees must attend a Zero Tolerance training session when starting employment; existing employees must attend refresher training every two years.

DUAL SECTOR ENTITY OBLIGATIONS As a dual sector entity, CQUniversity complies with the TAFE Queensland Act 2013 by providing the relevant Minister with annual draft operational plans for agreement, complying with agreed plans, and reporting on the University’s VET operations. CQUniversity was established as a dual sector university following its merger with Central Queensland TAFE on 1 July 2014.

CQUniversity student and staff member, Ms Glenda Hobdell, won the CQU Creates 2018 Student Award with this mixed media on kraft paper entitled, Connexion: time and tide, depicting the ‘forever changing’ everyday experience of tidal forces on river, ocean and foreshore at Mackay.


INFORMATION SYSTEMS AND RECORDKEEPING CQUniversity must make and retain full and accurate records of its activities and have regard to any relevant policy, standards and guidelines made by the State Archivist regarding public records to comply with Queensland’s Public Records Act 2002. Accordingly, CQUniversity retains records for periods consistent with approved retention and disposal schedules. CQUniversity’s records are managed by appropriately skilled employees.

CQUniversity applies whole-of-government information policies and standards, including the Records Governance Policy, to ensure its records are accountable, reliable and secure. CQUniversity’s systems are also supported by internal guidelines, procedures and policies for managing information and records, and employees are informed of their roles and responsibilities as they relate to CQUniversity’s records management activities. When records management system licences are assigned, employees are trained in their records management obligations.

Following changes to its Records Management Policy and Procedure in late 2017, CQUniversity continued to reinforce the ‘born digital’ paperless office concept in practice during 2018. CQUniversity’s central and decentralised archive facilities manage archived records disposal in line with the approved retention and disposal schedules.

POLICIES AND PROCEDURESCQUniversity’s policy documents (including policies, procedures, committee terms of reference, plans and codes) are publically accessible online. The Policy Document Development and Review Procedure and associated templates prescribe the requirements for developing, reviewing and approving University policy documents, which undergo a three-yearly review cycle. CQUniversity’s template for committee terms of reference is designed to promote good governance practices. Each committee’s terms of reference are reviewed every second year, informed by annual committee self-evaluations and strategic requirements.

DELEGATIONS OF AUTHORITYThe Delegations of Authority Policy specifies the decisions and actions Council and designated CQUniversity employees have authority to carry out and for which they are accountable. Delegated authority and powers are accompanied by appropriate internal control structures and systems to enable efficient, controlled business operations. The policy and its schedules are updated as required and reviewed in accordance with CQUniversity’s policy review schedule.

RISK MANAGEMENT AND ACCOUNTABILITY

RISK MANAGEMENT Risk management is a core component of CQUniversity governance, integrating strategy and planning, management, reporting processes, values and culture. The University’s enterprise risk management policies and procedures, oversight structures, and systems form a holistic framework for managing risks effectively. This framework aims to maximise opportunities and minimise adverse risks as CQUniversity strives to implement its strategic plan. The plan’s strategic intent and objectives require CQUniversity to continue its rapid expansion, which in turn demands a risk appetite that embraces the taking and effective management of risks.

CQUniversity’s risk management framework documents management’s support for well-managed risk-taking to exploit opportunities to improve outcomes and outputs. The University’s risk registers outline risks to the achievement of strategic and University goals, and demonstrate how CQUniversity integrates risk management into its planning process. The University’s Strategic Risk Framework was reviewed monthly by the Executive Management Committee and approved by Council in November 2018.

CQUniversity’s risk appetite is the amount and type of risk it is willing to take to meet strategic objectives; it establishes the benchmark for monitoring risks and sets the boundaries of acceptable business conduct. In August, the Audit, Risk and Finance Committee endorsed the annual review of the University’s Risk Appetite Statement and Risk Hierarchy, which was subsequently approved by Council and articulated to employees.

The Risk Appetite Statement guides strategic and operational decision-making by Council, management and employees. Although CQUniversity has limited appetite for risk in many of its activities, it acknowledges the need at times to undertake activities that inherently carry greater risks. As such, the University’s risk appetite varies depending on the activity and associated potential risks and impact.

CQUniversity has seen a significant change to the operating environment through the Federal Government’s introduction of funding caps, and the potential introduction of performance funding. Inadequate government support for the regional/rural/remote areas in which the University operates also places challenges on the delivery of equitable quality education opportunities. These policy changes are increasing the financial risk to the University and mitigation strategies have been put in place to counter the effects, while still delivering good quality education outcomes and opportunities to regional Australia. The domestic student market has plateaued as a result of policy changes, and Queensland universities will also face a ‘half cohort’ of secondary school leavers in 2020 resulting in decreased revenue from this cohort.


AUDIT COMMITTEE CQUniversity’s Audit, Risk and Finance Committee assists Council to discharge its responsibilities prescribed in the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009, and other relevant legislation and prescribed requirements. The Committee assists Council to fulfil its governing responsibilities in regard to:

» frameworks for performance management, risk management and internal control

» performance of the internal audit and external audit functions

» the integrity of CQUniversity’s financial and budget information, systems, and reporting, including those of CQUniversity’s subsidiary companies

» ensuring a healthy and safe workplace » applying good corporate governance principles, and » ensuring strong compliance with legislative requirements.

The Committee meets six times a year and is responsible for reviewing, discussing and promptly reporting to Council in relation to the abovementioned responsibilities. In 2018, the Committee met on 19 February, 27 March, 12 June, 8 August, 3 October and 19 November.

Mr Graham Carpenter chaired the Audit, Risk and Finance Committee (and its predecessors) from 2013 until his retirement in May 2018. As a Chartered Accountant, former partner of BDO Australia, and former Auditor-General for the Northern Territory, Mr Carpenter provided significant leadership to the committee. Under his stewardship the committee’s role and focus on risk and finance reporting were greatly strengthened.

The increase in international students has countered the domestic student plateau; however, the over-reliance on international students is a risk that is being monitored very closely. The VET operations continue to exist in a policy environment that is not meeting the skills needs of our communities, with funding for VET decreasing. While changes are being reviewed, the uncertainty and lack of a sustainable model is something the University is focusing on to find solutions to this issue.

While the major strategic risks centre on policy issues, CQUniversity is embarking on a number of opportunities in the digital space. This will allow the University to honour its commitment to supporting regions and providing educational opportunities equal to those afforded to students living in large capital cities.

In 2018, CQUniversity updated its Risk Management Policy and Procedure and risk management staff intranet. All major operational and governance committees include risk agenda items to raise awareness and share information with employees more broadly. CQUniversity also adopted minor updates to the Risk Management Standard 31000:2018 relating to risk management principles, and a focus on top management leadership and integration of risk management. Training and development occurred across business units and key governance and operational committees to identify and assess key risks, and establish mitigation strategies that support operational activities. These actions demonstrate CQUniversity’s progress to a more mature attitude to risk management.


The Committee includes five Council members and two external members, the details of whom and meeting attendance for 2018 are provided below.

Mr Graham Carpenter (Chair) (term concluded 26 May 2018)(Attended 2 of 2 meetings)

Mr Ian McPhee AO PSM (Chair)(term began 27 May 2018)(Attended 3 of 4 meetings)

Mr John Abbott(Attended 3 of 6 meetings)

Dr Robyn Minchinton(Attended 5 of 6 meetings)

Mr Mark Peters(Attended 6 of 6 meetings)

Dr Gerard Ilott(term began 29 August 2018)(Attended 2 of 2 meetings)

Mr Peter Maundrell (external member)(Attended 5 of 6 meetings)

Mr Blake Harvey (external member)(term began 29 August 2018)(Attended 2 of 2 meetings)

University management representatives regularly attend committee meetings to provide necessary reports and briefings. Representatives include the Vice-Chancellor and President, executive management members and the Manager, Internal Audit. The University’s external auditors also have a standing invitation to discuss any matters regarding its audit of CQUniversity’s financial statements with the Committee. External committee members may elect to be remunerated in accordance with CQUniversity’s Council Remuneration Policy. Full details are available on CQUniversity’s website (www.cqu.edu.au/about-us/structure/governance/annual-report).

A review of Council and subcommittee reporting schedules was undertaken to ensure effective governance and oversight of Council and its delegated powers. The Committee operated within the framework established by its terms of reference with due regard to the Audit Committee Guidelines issued by Queensland Treasury and Trade and continued to sustain strong committee practice. The Committee also undertook a comprehensive annual self-evaluation with findings reported to Council. The evaluation survey instrument was aligned with the Committee’s terms of reference and informed by better practice guidance published by the Queensland Audit Office.

The Committee continued to focus on high priority areas with considerable success, receiving information on key risks, considering all Queensland Audit Office audit recommendations and resolving any outstanding external and internal audit recommendations, and undertaking private sessions with the external and internal audit functions as required.

Audit, Risk and Finance Committee 2018 highlights include:

» as delegated by Council, the Committee’s approval of CQUniversity’s Consolidated Financial Statements: Statutory Accounts of CQUniversity and Controlled Entities as at 31 December 2017

» monitoring CQUniversity’s financial performance against the 2018 budget

» monitoring CQUniversity’s audit and advisory annual work plan

» acquitting CQUniversity’s 2017 strategic risks and approving the 2018 risk framework against the strategic plan

» considering the impacts of the Federal Government’s Mid-Year Economic and Fiscal Outlook

» monitoring CQUniversity’s re-registration with the Tertiary Education Quality and Standards Agency as a university, re-registration with the Australian Skills Quality Authority as a registered training organisation, and re-registration by both regulators as an approved provider of education and training to overseas students via the Commonwealth Register of Institutions and Courses for Overseas Students

» monitoring the development and progress of CQUniversity’s register of legislative compliance obligations

» reviewing and recommending to Council for approval, CQUniversity’s new Procurement Policy and Procedure and new Business Continuity Planning and Incident Management Policy and Procedure, and

» induction of new external members and renewal of current members.


INTERNAL AUDIT Council established the internal audit function as a key component of CQUniversity’s governance framework. The function’s responsibilities are defined in a Council-approved charter, which requires the function to govern itself by adhering to mandatory professional guidance published by the Institute of Internal Auditors: the Core Principles, Definition of Internal Auditing, Code of Ethics and International Standards. Adherence to CQUniversity’s policies and procedures, employee Code of Conduct, and defined values is also mandated.

The Audit and Advisory team operates independently of University management, structures and systems to assist the Council and the Audit, Risk and Finance Committee to effectively discharge their oversight responsibilities. The Audit and Advisory team reports administratively to the Deputy Vice-Chancellor (Student Experience and Governance), and reports functionally to the Audit, Risk and Finance Committee. The team conducts audits and reports on the University’s financial and operational systems and controls, and reporting processes and activities, which are designed to manage risks and achieve CQUniversity’s objectives. Through its work, CQUniversity is able to ensure it is operating efficiently, effectively and ethically. In turn, the internal audit function assists management to continuously improve business performance.

Audit and Advisory’s work is guided by an approved multi-year strategy, which defines the vision, purpose, values, priorities, and challenges for the internal audit function over the next three years. Operationally, a risk-based annual plan guides the scope of audit coverage and is used to deploy resources in the most effective and efficient manner. The annual plan strives to achieve the dual objectives of assuring audit coverage of the areas identified as representing the greatest current risk, while assuring broad coverage of CQUniversity’s business operations over time.

Audit and Advisory employees apply their combined experience and judgment, consideration of the University’s documented or identified risks, and extensive consultation with CQUniversity’s executive management, other stakeholders, and external auditors to assess the overall level of risk for each area within the audit scope of responsibility. Strategic and annual plans are submitted for review to the Audit, Risk and Finance Committee, and recommended to Council for approval. The audit scope and annual plan are reviewed on a biannual basis to ensure currency and effective coverage of escalating or emerging risks.

In 2018, planning, monitoring, reporting and review processes were undertaken to ensure Audit and Advisory operated effectively, efficiently and economically. The Audit, Risk and Finance Committee, which provides guidance, ongoing monitoring, and regular reviews of audit operations, received regular reports from Audit and Advisory on performance to plan any additional special audit requests to be completed during the year. The Audit and Advisory team also supports the Committee, liaises with CQUniversity’s external auditors to ensure a properly coordinated overall assurance framework, and submits an annual report to the Committee on Audit and Advisory’s performance. In supporting the Committee’s operations, the Audit and Advisory team gives due regard to Queensland Treasury Audit Committee Guidelines.

EXTERNAL SCRUTINY In May 2018, the Queensland Audit Office (QAO) tabled its report, ‘Education: 2016–17 results of financial audits (Report 15: 2017–18)’ in the Queensland Legislative Assembly. This report summarised the results of the QAO’s financial audits of the seven Queensland public universities and their controlled entities with a financial year end of 31 December 2017. It provided an end-of-year overview of the universities’ finances and the financial accounting issues identified during the audits. The report is available on the QAO’s website (www.qao.qld.gov.au).


UNIVERSITY-CONTROLLED ENTITIESCQUniversity has a number of entities that further its functions in accord with the Central Queensland University Act 1998. Council monitors the entities’ performance through its Audit, Risk and Finance Committee, which receives quarterly financial statements, an annual report on progress, and an annual business plan. The controlled-entities’ financial information is combined with that of the University to produce a consolidated financial position. Details of these entities and their financial position are in this report’s financial statements.

AUSTRALIAN INTERNATIONAL CAMPUSES TRUST AND AUSTRALIAN INTERNATIONAL CAMPUSES PTY LTD Board members Mr Graham Carpenter (Chair)(resigned 18 April 2018)Mr John Abbott (Chair)(appointed 18 April 2018, term concluded 17 December 2018)Mr Ian McPhee AO PSM (Chair)(appointed 17 December 2018)Mrs Joanne Perry (Company Secretary)

C MANAGEMENT SERVICES PTY LTDBoard membersProfessor Scott Bowman (Chair)Mr Alastair Dawson (Company Secretary)

CQU DEVELOPMENT PTE LTDBoard membersProfessor Scott Bowman (Chair)Mr Alastair Dawson Ms Narelle PearseAssociate Professor Vincent WeeMr Oliver Quek (Company Secretary)

CQU TRAVEL CENTRE PTY LTDBoard membersProfessor Scott Bowman (Chair)Mr Alastair DawsonMs Narelle PearseMrs Joanne Perry (Member and Company Secretary)

MASK-ED INTERNATIONAL PTY LTDBoard membersProfessor Helen Huntly OAM (Chair)Ms Narelle PearseProfessor Kerry Reid-SearlMrs Joanne Perry (Company Secretary)

DATAMUSTER PTY LTD Established in 2018Board membersMs Narelle Pearse (Chair and Company Secretary)Associate Professor Dave SwainMr John Driscoll Mr Alastair Dawson

OTHER BODIES (NON-CONTROLLED ENTITIES)

HORTICAL PTY LTDHortiCal was initiated as a joint venture between CQUniversity and Colour Vision Systems (CVS) to commercialise their interests in non-invasive fruit-sorting technology. CQUniversity and CVS granted HortiCal a licence on intellectual property for its use of near infrared spectroscopy. HortiCal supports research and development, and commercialises the intellectual property it holds.

ACADEMIC GOVERNANCE

ACADEMIC BOARDAcademic Board is CQUniversity’s overarching academic governance body, with primary responsibility for academic quality assurance and resolving all academic matters relating to and impacting the University’s education, training and research activities. Academic Board provides advice and recommendations to Council and the Vice-Chancellor and President on key academic matters, particularly those regarding University strategic plans, priorities and policies; setting and maintaining academic standards; and issues of strategic academic importance.

Academic Board members are primarily academics and teachers, representative of CQUniversity’s academic and teaching diversity; it includes students as recognised colleagues in the academic enterprise and in academic decision-making. The Board is independent of but shares membership with executives, senior managers, and Council members.

ACADEMIC BOARD COMMITTEES Academic Board has seven subcommittees, as shown in the University committee structure. Each committee has delegated decision-making authority, and a specialist function to advise the Board and lead policy formulation and strategy development within their terms of reference.


ACADEMIC BOARD HIGHLIGHTS Academic Board 2018 highlights include:

» overseeing CQUniversity’s successful re-registration as a higher education and training provider, and CRICOS-registered provider

» accrediting 25 new course offerings for 2019 » inducting the newly appointed

President of Academic Board » re-appointment of the Deputy

President of Academic Board » appointing the Board’s student representatives

from the Student Representative Council » continuing to implement 2017 External Review

of Corporate and Academic Governance recommendations, including delegating authority to subcommittees to enable the Board to refocus on strategic matters

» investigating sector-wide issues such as contract cheating and student retention, and CQUniversity’s response to these issues

» continuing the Academic Board Matters newsletter to inform employees of academic governance issues and outcomes.

ACADEMIC BOARD EVALUATIONTo ensure Academic Board is functioning effectively, members participate in annual self-evaluations of the Board’s performance against its terms of reference. These reviews aim to identify performance gaps and strategies for improvement.

TERTIARY EDUCATION GOVERNANCE As a dual sector university, CQUniversity delivers higher education and vocational education and training, which are regulated by the Tertiary Education Quality and Standards Agency (TEQSA) and the Australian Skills Quality Authority (ASQA). CQUniversity maintains registration as a self-accrediting higher education provider and a registered training provider through ongoing compliance with national legislation and standards, including the Higher Education Standards Framework (Threshold Standards) 2015, the Standards for Registered Training Organisations (RTOs) 2015, and the Australian Qualifications Framework. To ensure CQUniversity’s qualifications are of the highest possible standard, they are accredited and systematically reviewed through robust academic governance processes.

In 2018, CQUniversity’s registration with TEQSA and ASQA was renewed, including registration as a course provider to international students with the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). All registered universities, higher education providers, RTOs and CRICOS providers must undergo periodic re-registration at least every seven years. Re-registration by the regulators was granted without conditions and for the maximum allowable period of seven years.

Appointed President and Chair of CQUniversity's Academic Board in 2018, Associate Professor Celeste Lawson is a Council member and the Head of CQUniversity's Professional Communication degree. Associate Professor Lawson researches and publishes in social media, communication and public relations, with a focus on pedagogy, adult learning and online education.


WORKFORCE PEOPLE AND CULTURE PEOPLE AND CULTURECQUniversity attracts, develops, rewards and retains high quality employees and provides a working environment that enables them to maximise their capacity to contribute to achieving CQUniversity’s vision. The People and Culture Directorate implemented ongoing programs and new initiatives to move CQUniversity forward in the areas of workplace health and safety, employee and industrial relations, Indigenous employment, equity, salaries, superannuation, systems, and professional development. Increasing CQUniversity’s capacity and ability to meet its current and future needs is the Directorate’s primary focus. In 2018, CQUniversity was recognised by employee survey specialists, the VOICE Project, as having Australia’s most engaged workforce.

WORKFORCE PLANNING FRAMEWORK CQUniversity’s Workforce Planning Framework comprises key activities, including accessing planning data, analysing current operations, scenario planning and forecasting, identifying planning initiatives and strategies, approving and implementing plans, and review and evaluation. In 2018, workforce planning continued to focus on CQUniversity’s strategic goals and ensuring available resources matched the organisation’s ongoing needs.

WORKFORCE ATTRACTION AND RETENTION STRATEGIES The People Capability Framework promotes the selection of candidates on merit and reinforces the behavioural characteristics required to effectively support CQUniversity’s goals and values. Position descriptions for University roles are continuously reviewed to ensure consistency across new and existing positions. CQUniversity’s new enterprise agreement, implemented this year, provides terms and conditions for all employees in a single agreement and is used as an attraction and retention tool.

PERFORMANCE MANAGEMENT FRAMEWORK The Performance Enhancement Program reinforces ongoing, meaningful two-way conversation between employees and supervisors. Designed and co-facilitated in cooperation with the Australian Higher Education Industrial Association (AHEIA), the Managing for Success program provides opportunities for supervisors to develop their skills in effective and ongoing performance discussions. This program aligns with others, including Recruit for Success, the People Capability Framework, and CQUniversity’s professional development review and leadership

development programs. Recognised as a best-practice activity, the Performance Enhancement Program was again showcased at the annual AHEIA Benchmarking Conference and is being introduced in other universities.

INDUCTION AND PROFESSIONAL DEVELOPMENTEmployees are provided ongoing, up-to-date information, such as development opportunities, new initiatives, and policies through various communication channels, including the annual corporate induction refresher: a summarised version of the induction for new employees. All employees are required to complete a refresher to meet compliance obligations and be updated about essential information such as plans, goals, policies, and systems.

CQUniversity offers diverse professional development opportunities for employees, including study support, training, and participation in conferences and social innovation events. During 2018, the annual Staff Conference was held attracting 250 employee representatives from every campus across CQUniversity’s national footprint. CQUniversity also hosted its annual Senior Leadership Conference, bringing together over 100 senior employees to discuss leadership development, strategic initiatives and the University’s future direction.

Academic and professional employees without teaching qualifications in higher education participated in the Graduate Certificate in Tertiary and Adult Education as partial preparation for a role in teaching or tertiary education. To date, 61 employees have graduated from this course.

The Graduate Certificate of Authentic Leadership comprises postgraduate units in leadership and management delivered intensively to employees across a 12-month period. Launched in June, the pilot attracted positive feedback from participating managers and will be continued in 2019.

EMPLOYEE RECOGNITIONThrough its Employee Award program, CQUniversity recognises outstanding employee achievements in diverse categories, including learning and teaching, research, research higher degree supervision, service, engagement and professional employee contribution. Further details of employee recognition are in the ‘Performance’ section.

In 2018, 19 academics were promoted through CQUniversity’s academic promotion scheme:

» Professor / Professorial Research Fellow (Academic Level E): 2 employees (2 female)

» Associate Professor / Senior Research Fellow (Academic Level D): 7 employees (4 female, 3 male)

» Senior Lecturer / Research Fellow (Academic Level C): 10 employees (5 female, 5 male)

» Lecturer / Senior Research Officer / Senior Postdoctoral Research Fellow (Academic Level B): 0 employees.


INDIGENOUS EMPLOYMENTThe Indigenous Employment Reference Group identifies strategies to promote employment and career development opportunities for students, and potential and current employees, and supports implementation of CQUniversity’s Aboriginal and Torres Strait Islander Employment and Career Development Strategy, updated in 2018. As at 1 November 2018, 54 employees self-identified as Indigenous Australians, an increase on 49 employees reported in 2017.

FLEXIBLE WORK ARRANGEMENTS CQUniversity encouraged flexible work arrangements and a healthy work–life blend, enabling employees to undertake flexible work hours in line with their work area’s operational needs and Enterprise Agreement provisions. Employees were able to work off campus in certain circumstances, and part-time and job-sharing opportunities were encouraged.

Flexible provisions include 52 weeks parental leave, comprising 26 weeks paid maternity leave; up to 20 weeks primary care-giver’s leave; up to a further 52 weeks child-rearing leave for employees to care for preschool-aged children; the option of an additional four weeks annual leave per year (flexible work year scheme 48/52); annualised hours; flexi-time; job share; part-time work; and 5.4 weeks annual leave for all employees covered by the Enterprise Agreement.

Employees experiencing the impact of domestic violence can also access two weeks domestic violence leave under the new Enterprise Agreement. Programs to increase awareness of and support employees impacted by domestic violence were also introduced.

CQUniversity’s Rehabilitation program continued to proactively manage work and non-work related injuries and illness. In 2018, the University experienced a slight increase in the Queensland premium. The number of claims lodged with the Queensland insurer, WorkCover, was steady with 32 claims in the 2016–2017 period to 31 claims in the 2017–2018 period. Employees and their immediate families also have access to an Employee Assistance program, which includes free counselling sessions via face-to-face meetings, email and telephone.

INDUSTRIAL AND EMPLOYEE RELATIONS FRAMEWORK CQUniversity’s Joint Consultative Committee is an active, robust and productive forum that contributes to effectively manage industrial relations issues. The Committee, comprising management and employee unions, met bimonthly to discuss industrial and human resource issues.

Productive negotiations with the Committee for a new enterprise agreement were completed in 2018. A key goal for CQUniversity was to secure a single agreement, covering all employees, to replace the multiple industrial instruments resulting from CQUniversity’s merger with CQ TAFE. The Fair Work Commission approved the Enterprise Agreement in March 2018.

REDUNDANCY AND VOLUNTARY EARLY RETIREMENT OR SEPARATION No offers for voluntary early retirement were paid during this period; however, 27 employees received redundancy packages at a cost of $2 722 632.

SAFETY AND WELLBEING The Occupational Health and Safety Unit works with key internal stakeholders to implement system improvements to ensure the health and wellbeing of employees, students, contractors and the public. Significant projects included implementing smoke-free campuses and a mental health strategy. The high level of occupational health and safety compliance and proactive safety culture is reflected in the 2018 VOICE employee survey data, which highlighted safety as a University strength.

In 2018, CQUniversity launched the MindWaves strategy, a mental health program. Leading the sector, the MindWaves strategy supports employees and students in creating a mentally healthy space for work and study. Informed by results from 2017, CQUniversity’s Health and Wellness strategy was continued in 2018 attracting very high employee participation. The strategy’s activities included the 10 000 Steps program, mental health training, parenting webinars, six-week fitness challenges, health checks, yoga, tai chi, nutrition advice, and participation in the RU OK? Day.

In 2018 all campuses became smoke free, following a policy change in late 2017. The Share Clean Air initiative promoted the QUIT program to support employees and students to stop smoking. Employee feedback was extremely positive, with some employees implementing major positive life changes as a result.

EMPLOYEE PROFILE For 2018, the University’s permanent retention rate was 89 per cent and its permanent separation rate was 11 per cent. Details of CQUniversity’s employee profile as at 31 December 2018 are available in Table 14 of the ‘Statistics’ section.


STRATEGIC INTENT AND VALUES OUR STRATEGIC INTENT 2017 – 2027 By 2027, CQUniversity will be a much larger university. The University will continue to increase and innovate the delivery of its online learning and on-campus courses across Australia and will continue to provide students with seamless articulation pathways.

CQUniversity will be a truly unique university that has gained its strength through power of place. This power of place will inform its activities and enable it to become a leader in the areas of research, learning and teaching, engagement, the student experience, and social innovation.

CQUniversity will also continue to be an inclusive university and a university that values diversity and giving back.

Over the coming years, CQUniversity will deliver on its 2017–2027 strategic intent through:

» engagement and social innovation » being a can-do organisation—doing not just talking » openness and transparency » leadership, and » inclusiveness.

OUR VISION CQUniversity’s vision is to be Australia’s most engaged university—one that promises to be a great university by ‘daring to be different’. CQUniversity’s vision and promise are integral to achieving its ten-year strategic intent and its shorter-term strategic goals for 2018 to 2022.

OUR VALUES

ENGAGEMENT We bring together and connect with our stakeholders, communities, the private sector, governments, organisations and the full range and resources of our networks by having strong relationships and productive partnerships which deliver mutually beneficial outcomes.

LEADERSHIPWe lead by demonstrating courage and excellence to build long-lasting sustainable advantage and enduring success with our stakeholders and communities in teaching, research, engagement and governance.

A CAN-DO APPROACHWe focus on and achieve our goals, we ‘think big’, aspire to greatness and apply innovation in everything we do.

INCLUSIVENESS We respect and seek full participation from, and engagement with, all staff, students and the community without discrimination toward any individual or group.

OPENNESS We promote transparency in processes, procedures and decision-making and emphasise courage, consistency, fairness and probity as integral to our relationships, individual and collective, with all stakeholders.

BRINGING OUR VALUES TO LIFEFor the past decade, Professor Scott Bowman has led CQUniversity as Vice-Chancellor and President on a successful journey of renewal, innovation and growth. From the outset, Professor Bowman focussed our energy on achieving a strong, sustainable financial position; renewal and infrastructure investment; and a reputation for inclusive education and research by engaging and collaborating with stakeholders and the people we serve.

A significant driving force behind our success has been our organisational values, which Professor Bowman not only helped to shape but continued to advocate through the

example of his personal style and leadership. In November 2018, the Institute of Managers and Leaders presented Professor Bowman with a prestigious Sir John Storey Outstanding Intentional Leadership Award, recognising the positive impact his values-driven leadership has achieved at CQUniversity.

As we farewell Professor Bowman on his retirement in early 2019, we can reflect with pride on the successes we achieved together with Professor Bowman at the helm. Among the many tangible achievements, becoming Queensland’s first and only dual sector university and a national university that reaches students from all walks of life in cities, rural and remote towns, and overseas, are two standout examples. Among the intangible but no less significant achievements is his legacy of our enduring culture of inclusion and ‘giving back’ to the community.


STRATEGIC PLAN 2018 – 2022 Each year, Council and the Executive review CQUniversity’s achievements and refocus its strategic goals to provide direction and drive performance to meet the challenges ahead. The current strategic plan for the period 2018 to 2022 was framed in the context of CQUniversity’s ‘daring to be different’ 10-year strategic intent, its enduring values, and anticipated challenges and opportunities.

STRATEGIC GOALS AND PRIORITIES

UNDERTAKE CHANGE-MAKER RESEARCH » Deliver practical benefit to stakeholders, partners and

the community » Focus on the excellence and output of our research » Seek opportunities for commercialisation of

our research » Build an industry-ready entrepreneurial research culture

EXPAND OUR PRESENCE AND REACH » Provide the opportunity to deliver education for all:

regional, national, international » Seek to work with communities that value our

education delivery model

DRIVE SUSTAINABLE AND RESPONSIVE CHANGES IN VET » Continue to drive to make VET sustainable

through growth in offerings and markets » Drive change and innovation to transform the whole sector » Use our comprehensive university

environment to differentiate our products and delivery from all other providers

LEAD EXCELLENCE IN HIGHER EDUCATION » Focus on being innovative and forward-thinking

ensuring that we lead market trends » Ensure engaging and transformative learning

experiences that anticipate and incorporate technological change and meet student expectations

DRIVE CHANGE AND BE A DISRUPTOR IN THE SECTOR » Do not accept status quo in anything we do by

leading change within the sector, not just adapt to it » Encourage high participation for low SES,

Indigenous, and first-in-family students

KEY PERFORMANCE INDICATORS

CQUniversity’s key performance indicators (KPIs) focus on the following five high-level factors that indicate achievement, and areas of opportunity or need for improvement. The KPIs below indicate performance across the strategic goals overall, rather than specific goals.

INDICATORS TARGET ACTUALReputational

Asia–Pacific ranking Top 50 NA 1

World University ranking 401–500 501–600

QS ranking 551–600 601–650

Research

External income $14.5m $15.552m

HDR load (EFTSL) 250 EFTSL 220 EFTSL 2

Field-weighted citations 1.55 1.61 3

Student

Student revenue $351.075m $354.552m 4

Higher education completions 44.9% 44.3% 5

QILT student satisfaction 80% 80.5% 6

NCVER graduate satisfaction 80% 86.8%

ISB student satisfaction 90% 92%

Staff

Staff–student ratio

» Academics (Higher education) 1:29.14 1:30.32

» Teachers (Vocational education) 1:13.36 1:16.84

VOICE survey: staff satisfaction 86% 94% 7

Financial

Current ratio (liquidity) 1.5 1.46 8

Surplus > 1% 0.02% 9

KPI Notes:

1. 2018 data not available at time of writing.

2. Domestic growth was at or near expectations, but a sharp decrease in international commencements contributed to the load decline. This was also combined with strong completion rates in the past two years, meaning CQUniversity is graduating candidates and losing them from load.

3. 2017 result, which exceeds the KPI target (2018 result not yet available).

4. Significant increase in international students (actual figure $354 552 663).

5. 2017 result provided (2018 result not yet available).

6. Overall quality of educational experience indicator.

7. CQUniversity’s employee engagement strategies have contributed to increased staff satisfaction, which has been recognised by the VOICE Project as having Australia’s most engaged workforce.

8. 2.67% variance is within tolerance.

9. Reduced KPI for 2018 approved by Council at Forecast.


PERFORMANCE UNDERTAKE CHANGE-MAKER RESEARCH CQUniversity engages with regional, national, and international communities, industry partners, and stakeholders to increase research activity, deliver real research outcomes, and offer outstanding research development and training programs for employees and students.

DELIVER REAL OUTCOMES

RESEARCH STRENGTHS AND PRIORITIES CQUniversity is one of Australia’s most engaged universities, undertaking globally relevant research that benefits regions and communities. To achieve this, the University builds strong links with industry, government, and the community, and collaborates with national and international researchers and research networks. Specifically, CQUniversity focuses on research that explores regional development, growth in resource industries, environmental management, issues associated with quality health care in rural and regional communities, and delivering education using modern technology.

An example of delivering real outcomes using technology to progress regional development was showcased during Rockhampton’s Beef Australia 2018 event, where CQUniversity launched its DataMuster platform. Drawing on seven years of research and development as well as extensive field-testing, the DataMuster system uses electronic identification ear tags. Around 150 Australian and international guests toured the Belmont Research Station Property and attended a DataMuster app presentation at the University’s Central Queensland Innovation and Research Precinct. CQUniversity’s Precision Livestock Management team showcased cutting-edge research technologies in use at Belmont, including the walk-over-weighing systems connected to auto-drafters and vision recognition technology.

CQUniversity’s research strengths and corresponding research foci are grouped under the following areas:

» applied medical health; agricultural systems; environmental systems; exercise and sports sciences

» health behaviours at work, rest and play; psychology and wellbeing; public health and health promotion

» creative arts; learning, equity, access and participation » domestic violence; nursing workforce, education

and health service delivery; mental health » automation; clean energy; railway

engineering; smart systems » economics; management.

These priorities are in existing and emerging areas of strength, provide direction for the research agenda and areas of engagement, and highlight CQUniversity’s research diversity.

RESEARCH COLLABORATION AND PARTNERSHIPS CQUniversity collaborates with local, national, and international communities and industry partners to strengthen research leadership, capability and impact. The following collaborations exemplify the University’s research outcomes achieved in 2018.

CQUniversity’s Centre for Railway Engineering was invited by China’s Southwest Jiaotong University to jointly establish an International Laboratory on Railway Engineering System Dynamics, with two other international universities.

Associate Professor Susan Davis successfully led a tender worth $900 000 from the Queensland Arts Council to develop and roll out a regional arts program in Wide Bay, and central and northern Queensland.

Professor Phil Brown led a successful $1.3 million project bid, funded by the Australian Centre for International Agricultural Research, to deliver the project ‘Integrating protected cropping systems into high value vegetable value chains in the Pacific and Australia’ in collaboration with community agencies in Fiji, Samoa and Tonga.

The Fight Food Waste Cooperative Research Centre (FFW CRC), in which CQUniversity is an essential stakeholder, will be one of the largest ever food and agriculture-related CRCs with funding of $133 million over 10 years. The FFW CRC involves 57 participants from Australia and overseas who collectively raised $103 million that will be matched with $30 million from the Federal Government CRC Program.

The Research Division sponsored an ongoing Lunchbox Forum seminar series throughout 2018, with over 140 participants engaging in the bimonthly seminars. The Lunchbox Forum series was created to develop a community of practice to build networks and links between researchers and innovation brokers, and with industry. Forum topics included crowdfunding, intellectual property management, and evaluating industry engagement.

INDIGENOUS COMMUNITY RESEARCH: A BETTER WAY FORWARDThe project, ‘Walk in partnership: Woorabinda’s perspectives of service provision in their community’, funded by Red Cross Australia, John Villiers Trust, and a CQUniversity Pilot Linkage Grant was completed in 2018. The project revealed that social services were considered vital to the community, indicating a need for improvement across all sectors of service provision.

In 2018, scoping work was carried out for research relating to implementing an education/social innovation business hub in the Woorabinda community. The hub concept evolved from a research relationship established between the community and CQUniversity’s Office of Indigenous Engagement in 2016. Current work with the

http://beefaustralia.com.au/

http://www.datamuster.net.au/

http://www.cqu.edu.au/about-us/structure/schools/mas/research


Woorabinda community explores the development of a community-driven and designed post-secondary education/social innovation hub, and considers the community’s role in influencing the hub’s conceptual development.

The Office of Indigenous Engagement undertook two Higher Education Participation and Partnerships Program (HEPPP) funded projects in 2018. The first project titled ‘Scholarships kept me alive: Indigenous student support, scholarships and completion’, was finalised in 2018. Findings revealed the support that assisted students towards completion included cultural and emotional support provided by the Indigenous Student Support team (for internal and external support), ITAS tutorial support, and for those who received scholarships, the subsequent financial support. The research found the need for adequate cultural support was an overarching theme. The project provided information to develop strategies for improving scholarship uptake, which include the need for a broader system for alerting potential students about scholarships before enrolment, normalising the scholarship application process, and allaying preconceived ideas about scholarships.

The second HEPPP-funded research project explored Indigenous students’ experiences in relation to space, place, and support while studying. Students study in different modes, including attending lectures on campus, online, or a mix of both. Some students access campuses, study centres, or hubs while other students may not access any of these facilities. The research sought to understand students’ study experiences and contributing factors that help students to continue with their study. The research also explored factors that particularly assisted those students who have graduated. The final report will be completed in 2019.

Two, four-year BHP research projects about future-proofing Indigenous communities engaged with BHP are in the early stages of project development:

Project 1, ‘Future-proofing Aboriginal and Torres Strait Islander communities engaged with BHP through environmental rehabilitation, conservation and enterprise creation’, will investigate factors associated with employment and enterprise development opportunities related to environmental rehabilitation and conservation that strengthen Indigenous communities.

Project 2, ‘Future-proofing Aboriginal and Torres Strait Islander communities engaged with BHP through education, employment, enterprise and/or career development opportunities’ will investigate factors associated with education, employment, enterprise and/or career development opportunities that strengthen Indigenous communities.

The research will inform development of a community-driven and designed education, employment, enterprise, and/or career transition framework. This framework aims to facilitate and strengthen capacity to realise self-determination and to create a just, equitable, and reconciled Australia.

Project results are expected to provide information and indicate action for key stakeholders and policy-makers on development pathways that contribute to quality-of-life improvement beyond the term of mining operations. Long-term investment is considered fundamental to achieve transformational change. The projects also aim to facilitate good practice across the mining industry through disseminating knowledge gained about engagement with Indigenous communities in ways that benefit and strengthen communities into the future. Both projects will continue until December 2022.

CQUniversity was the official education and research partner for Beef Australia 2018, where the DataMuster platform was launched. DataMuster uses electronic identification ear tags on livestock, pictured here with Associate Professor Mark Trotter.


RESEARCH EXCELLENCE

INCREASING RESEARCH ACTIVITYBy focussing on its research strengths and collaboration with industry and government, CQUniversity has successfully increased its research activity. In 2018, CQUniversity continued to strengthen its research performance through ongoing initiatives, and providing outstanding research development programs for employees and a highly supportive research training environment for students. CQUniversity’s revenue from total research income also increased through success in securing collaborative research grants.

In 2018, more than 130 new research projects were awarded to CQUniversity from diverse funding sources, including a number of nationally competitive grants. As data for 2018 are not yet available, 2017 data are reported to indicate the University’s performance trajectory. In 2017, although the target of $12.6 million in external research income was not met, with CQUniversity attracting $11.4 million in external research income, this represented an increase of 5 per cent on the previous year. Category 1 grant income increased by 8 per cent, with Category 4 income increasing by 23 per cent. Category 2 and 3 funding income increased by 2 per cent in 2017. Research income figures are shown in Table 1.

Table 1: Research income 2017

HERDC category external research grants

$ Amount(Reported in 2017)

1 Australian Competitive 3 146 102

2 Other Public Sector 3 884 952

3 Industry and Other 3 678 283

4 Cooperative Research Centre 706 465

Total 11 415 802

Source: Higher Education Research Data Collection (HERDC) in 2017.

CQUniversity reported a decrease in weighted publications of 9 per cent in 2017. In line with the Excellence in Research for Australia (ERA) reporting requirement, publishing in quality journals has become a priority for CQUniversity researchers. Subsequently, the number of publications decreased, and the quality has increased. Although CQUniversity’s target of 1.95 for field-weighted citations was not met in 2017 (the world benchmark for field-weighted citation impact is 1), CQUniversity attained a 1.20 field-weighted citation index in 2017 resulting in CQUniversity’s publications being cited 20 per cent above the world standard.

CQUniversity’s research training statistics show a firm position following a strong year of higher degree by research (HDR) completions in 2017. In 2018, the lack of clear growth in HDR enrolments was addressed through focussed work on a student load strategy, including a

dedicated domestic HDR marketing campaign and new course development. Research performance in terms of publications and HDR student load and completions is shown in Table 2.

Table 2: Research performance 2017

HERDC category Number(Reported in 2017)

Weighted research publications 417.2

Total HDR student load (EFTSL) 211.55

Total HDR award completions (i.e. 47 doctoral and 8 masters students)

55

Source: Publication data from the HERDC in 2017 and CQUniversity student data.

Table 3: Commonwealth Research Block Grant Funding 2017

Research Block Grant Categories $ AmountResearch Support Program 2 460 322

Research Training Program 3 344 659

Total 5 804 981

Source: CQUniversity data 2017.

In 2018, CQUniversity provided Excellence in Research for Australia (ERA) and Engagement and Impact Assessment submissions to the Australian Research Council (ARC). Assessments are benchmarked against international standards and university ratings are released nationally. CQUniversity’s ERA submission comprised data on publications; research income; applied measures, such as patents and registered designs over a number of specified years; and research employee data as at 31 March 2017. These assessments will gauge the quality of Australian institutional research and the impact this research is having on the community outside academia. Assessment results will be released in early 2019.

OUTSTANDING RESEARCH PROGRAMS FOR EMPLOYEES AND STUDENTSCQUniversity’s research performance is underpinned by investment in people and facilities, an innovative and engaged research strategy, and success in securing highly competitive national research grants. The University has established itself as a research leader in areas including psychology, agriculture and veterinary science, environmental science, mathematics, nursing, engineering, artificial intelligence, and public health and health sciences. In 2018, CQUniversity awarded research grants to 10 recent academic appointees to help establish their research profile.

CQUniversity aims to increase its research intensity and quality through programs that encourage and support researchers, such as the Early-Career and Mid-Career Researcher programs led by Professor Drew Dawson. Early-career researchers are mentored and supported


to develop their skills in research career planning, grant applications, writing for publication, and developing collaborative research opportunities. Since 2012, the 115 alumni from this innovative, award-winning program have produced more than 1500 publications and are named chief investigators on more than $18 million in external funding, including $6.5 million in nationally competitive Category 1 grant funding.

In 2018, CQUniversity continued its collaboration with Southern Cross University and the University of the Sunshine Coast to pilot a two-year Mid-Career Researcher program. This program provides emerging research leaders with mentoring, support, and development in research strategic planning, research leadership, and building and managing research teams. CQUniversity also continued to invest significant resources to support research higher degree (RHD) candidates, allocating over $515 000 to fund support for domestic and international students undertaking research projects and conference travel.

Through the Research Division, CQUniversity funds and delivers a university-wide research training program, offering participants diverse learning opportunities in thesis writing, development and communication. In 2018, the University again offered three RHD Intensive Training Programs, held online and face-to-face at the Rockhampton and Brisbane campuses. More than 130 candidates attended the Rockhampton event, with over 50 presentations, training workshops, and social events offered over the week. For the first time, the RHD Intensive included a Research Industry Partnerships Dinner attracting more than 180 people. The Research Division also delivered RHD Accelerate Supervision programs for two cohorts. Designed to advance associate supervisors to principal supervisor status, each program ran across five months, resulting in 27 research supervisors successfully completing the program in 2018.

CQUniversity continued its support of RHD candidates through scholarships to fund living allowances and tuition fees. A number of prestigious, externally-funded scholarships were awarded in 2018, some of which were through partnerships with the National Suicide Prevention Fund, the Rail Manufacturing CRC, Telstra, and Agriventis. CQUniversity also funded 11 Summer Research Scholarships across a range of discipline areas. These awards include a living stipend and dedicated project resourcing to encourage individuals with research aspirations to undertake a short-term, supervised research project in one of CQUniversity’s priority research areas.

INDIGENOUS HEALTH RESEARCHAppointed in June as the Pro Vice-Chancellor (Indigenous Engagement), Professor Adrian Miller, is also an Honorary Fellow of the Menzies School of Health Research at Charles Darwin University and Adjunct Professor at Griffith University’s Menzies Health Institute Queensland. Professor Miller is involved in new and continuing grants, which include a 2018 National Health and Medical Research Council (NHMRC) project grant; a 2018 ARC project grant for health research with Indigenous populations; and a 2019 NHMRC Centre of Research Excellence grant for work in eliminating neglected tropical diseases, specifically in Indigenous Australian populations.

CQUNIVERSITY’S RESEARCHERS RECOGNISEDCQUniversity supports research excellence in areas that contribute to industry and community needs and national research priorities. The University encourages a research culture by identifying and rewarding research leaders, promoting scholarly activities, mentoring emerging researchers, and fostering an environment of active enquiry and innovation. One way CQUniversity promotes research excellence is through award and grant schemes. In 2018, excellence in research was formally recognised at the annual Vice-Chancellor’s Awards in the following categories:

» Vice-Chancellor’s Award for Outstanding Researchers: Early-Career Research

» Vice-Chancellor’s Award for Outstanding Researchers: Mid-Career Research

» Vice-Chancellor’s Award for Excellence in Research Higher Degree Supervision

» CQUniversity Opal Award for Engaged Research and Innovation

» CQUniversity Publication Recognition Awards.

CQUniversity’s researchers were also recognised through appointments to peak research bodies. Four CQUniversity researchers joined Category 1 grant panels in 2018:

» Professor Brijesh Verma was appointed to the 2018 ARC College of Experts

» Professor Bronwyn Fredericks, former Pro Vice-Chancellor (Indigenous Engagement), was invited to become a member of the ARC College of Experts for three years

» Professor Chris Doran was invited to Chair the Clinical Research Panel for the NHMRC 2018 Centres of Research Excellence funding round, and

» Associate Professor Dana Stanley was invited to join the Scientific Grant Review Panel for the NHMRC Development Grants scheme in 2018.


Professor Denise Wood AM, Director of the Centre for Regional Advancement of Learning, Equity, Access and Participation, was appointed to the Australian Government’s Equity Research and Innovation Panel. The Panel comprises people with expertise in higher education equity research or practice and provides strategic advice on Australian Government funded research and trials on student equity in higher education conducted under the National Priorities Pool component of the HEPPP Program.

CQUniversity again participated in the national final of the 5 Minute Research Pitch (5RP) competition. The national final was hosted by the University of Southern Queensland, and brought together nine finalists across diverse disciplines from five universities. CQUniversity’s Dr Qing Wu came second in the Group One division with a presentation on ‘Making the Impossible Possible’, using supercomputers to reduce the time spent on very long train simulations. CQUniversity’s Dr Grace Vincent won the Group Two division with her presentation on ‘Sleeping on the job: improving performance when woken for work’. Dr Vincent’s research involves introducing 30 seconds of intense exercise for waking emergency services workers to initiate alertness and preparedness for work. Dr Vincent also won the overall national 5RP competition and People’s Choice Award.

EXPLORE COMMERCIALISATIONCQUniversity has committed to exploring research outcomes for commercial potential and developing resources and tools to build capacity for commercialisation. During 2018, CQUniversity continued to make available a number of new tools to assist researchers and RHD candidates to identify and seek protection for new intellectual property. This included an online Intellectual Property Training Module (mandatory for all RHD candidates), intellectual property notification and due diligence resources, and workshops offered to supervisors, researchers, and RHD candidates during the year.

ENTREPRENEURIAL RESEARCH CULTURECQUniversity’s first RHD academy, the Creative Arts Research Training Academy (CARTA), was established in 2018. CARTA is led by the School of Education and the Arts with support from the School of Graduate Research under the RHD Academies initiative. This initiative provides operational funding and scholarship support to encourage growth in RHD enrolments and development opportunities for existing candidates and their supervisors. CARTA will build on CQUniversity’s existing research strength in creative arts and writing, with key interest areas in performing arts and creative writing; film, television, and digital media; and visual arts and crafts. The Academy will bring together students, supervisors, and external experts to create a high quality, outcome-focussed culture for research training excellence.

CQUniversity also recorded its first student participant in the national Australian Postgraduate Research Internship program, which provides short-term funded placement opportunities for doctoral students. The industry partner for this internship was the Westpac Banking Corporation, with a further two CQUniversity-specific internship places allocated under the 2018 – 2019 pilot program.

The 2018 CQUniversity 5-Minute Research Pitch (5RP) competition heat attracted six academics including (left to right) Dr Grace Vincent, Dr Michael Cowling, Dr Tasadduq Imam, Dr Qing Wu, Ms Colleen Ryan, and Dr Vanessa Bochkezanian.


EXPAND OUR PRESENCE AND REACH

EDUCATION FOR ALLCQUniversity is a provider of choice and opportunity that strives to make education, training and research accessible to all—regionally, nationally, and internationally. In 2018, the majority of CQUniversity’s regions experienced an increase in overall equivalent full-time student load (EFTSL).

CQUniversity Victoria led growth with an approximate 35 per cent increase, a new high of more than 3000 EFTSL (or 4200 students). Most of these students are studying on campus, recruited from major international markets including South Asia, South-East Asia and South America. More details on student enrolment performance are in the ‘Statistics’ section.

EXPANDING EDUCATIONAL REACHCQUniversity increased its mixed-mode VET delivery during 2018 with a range of new options, including residential schools for Certificate III in Allied Health Assistance students in Bundaberg, Mackay, Noosa, and Rockhampton and an optional on-campus residential in Brisbane for students studying the Certificate IV in Workplace Health and Safety. The Diploma of Nursing increased to two intakes in 2018. The course’s February intake expanded to Bundaberg and Cairns, complementing the traditional locations of Mackay and Rockhampton, while its July intake included Noosa, Townsville, Rockhampton and Mackay.

Eleven VET courses gained CRICOS registration in 2018 and are now available to international students. Further details on vocational course developments are in the section, ‘Drive sustainable and responsive changes in VET’.

In CQUniversity’s higher education, the Bachelor of Education (Early Childhood) and the Bachelor of Education (Primary) offered Term 3 entry to students for the first time. CQUniversity also introduced new higher education intake locations for the following courses in 2018:

» Bachelor of Exercise and Sports Science (first year) in Cairns

» Bachelor of Echocardiography/Graduate Diploma of Echocardiography in Brisbane and Sydney

» Bachelor of Agriculture in Emerald, Rockhampton, Bundaberg and Hamilton, and

» Bachelor/Graduate Diploma of Medical Sonography, Bachelor/Graduate Diploma of Echocardiography in Perth.

CQUniversity’s Townsville campus (working with Townsville City Council and Dance North) began delivering the Bachelor of Creative Arts with majors in acting and dance. Tutorial support and face-to-face delivery for a number of courses were also introduced in Townsville, providing students with greater on-campus support.

In addition, CQUniversity’s Cairns campus began teaching four Aviation courses in 2018 and developing new courses for 2019 in areas including digital media and psychology, and an international Bachelor of Aviation (Flight Operations). The ‘Lead excellence in higher education’ section has more information on developments in aviation and other new higher education courses.

BROADENING ACCESSIBILITYThe Start Uni Now (SUN) program enables Year 10, 11 and 12 students to study university units while still in high school. SUN enrolments grew by 51 per cent across CQUniversity’s footprint to 321 in 2018. Endorsement of eight SUN units by the Western Australia Department of Education sparked a marked increase in SUN enrolments in that State. The Brisbane, Cairns and Sunshine Coast regions were the top three performers for growth in SUN enrolments.

In early 2018, CQUniversity’s Mackay Ooralea campus welcomed an additional 37 apprentices into the diesel fitting stream of the Certificate III in Engineering (Mechanical Trade), after introducing two new diesel fitting stages of the training package in Mackay. Extending course offerings enabled Mackay-based apprentices to study locally, no longer needing to travel south to Rockhampton. The Certificate III in Heavy Commercial Vehicle and Certificate III in Mobile Plant attracted increasing numbers in Mackay after introducing Stage 2 of the Automotive Retail, Service and Repair Training Package into the course.

CQUniversity Rockhampton hosted a second cohort of Papua New Guinea international students studying a customised Certificate IV in Business. Also in 2018, the first student cohort from the course in 2017 progressed to undergraduate studies in engineering, business and accounting.

Internships continued to attract students as a pathway to graduate employment. Enrolments in the new Master of Engineering course, introduced in Melbourne in 2016, surpassed expectations at 460 in 2018. The first student cohort graduated from the course this year, with many of the engineering graduates taking up professional roles in industry—a number of them secured through an internship undertaken during their degree. New international enrolments in the Master of Professional Accounting in CQUniversity’s New South Wales region grew by 24 per cent after an internship was introduced. Enrolment growth for this course outstripped overall growth in international commencements for the Sydney campus, which was at 13.8 per cent.

CQUniversity continued to facilitate student access to VET and higher education courses through its highly successful Skills for Tertiary Education Preparatory Studies and Tertiary Entry Program access education courses, English language courses, and study preparation courses, Skills for Education and Employment and the Adult Migrant English Program. CQUniversity also recognised students’ prior


qualifications and other learning, enabling students to gain advanced standing into their intended courses. Student access was also facilitated by articulation pathways for VET students into higher education through embedded VET diplomas in bachelor degrees and articulation arrangements between CQUniversity courses and with external education providers and partners.

The CQU Noosa Institute was registered in 2018, hosting its first executive education retreat at Peppers Resort in August. Located on the Sunshine Coast, the Institute will develop bespoke executive education retreats for large organisations in 2019 and provide opportunities for continuing professional education in business, leadership, creative arts, and technology.

EXPANDING EDUCATION FACILITIESCQUniversity expanded its facilities in 2018 to better support students and enhance their learning experience. Key facility developments across CQUniversity’s footprint included:

» new facilities installed at the Cairns campus, including music and recording studios, a digital media facility, classrooms and staff accommodations, an offsite civil engineering lab, and an offsite sports science lab. A lease on a new facility at the Cairns Airport was also signed.

» a new remedial massage facility worth $500 000, featuring 14 fully-equipped treatment areas, officially opened at the Mackay City campus to welcome new students from early 2019. This facility will offer a new two-year Diploma of Remedial Massage through mixed-mode delivery.

» the Indooroopilly Health Clinic, which opened in March enabling final-year chiropractic students to deliver supervised services to the public and CQUniversity’s employees and students.

» a newly constructed $600 000 echocardiography laboratory, opened at the Brisbane campus, began delivering echocardiography from Term 1 in 2018.

» additional teaching spaces at the Melbourne campus, including a large videoconference-enabled lecture theatre and extra computer labs and tutorial space to accommodate continued growth in student enrolments. Completed in December 2018, the classrooms will open for students in Term 1, 2019.

» the new Australia–Pacific LNG ConocoPhillips STEM Central facility, which opened on the Gladstone Marina campus in 2018 to provide a world-class learning facility accessible to all.

» renovations completed on the Rockhampton North campus library to provide access to the ground floor study spaces and facilities outside standard business hours.

INNOVATIVE SYSTEMS AND INFRASTRUCTURE CQUniversity’s growth in presence and reach, nationally and internationally, wouldn’t be possible without reliable, innovative digital systems and network infrastructure to support education, training and research. CQUniversity introduced new systems, infrastructure and services, including a high-speed 10 GB network link from CQUniversity’s new Sydney datacentre to the Rockhampton datacentre, and north to the Cairns campus, with sector telco AARNet Pty Ltd. The new network vastly improves efficiencies, transmitting massive amounts of research and business data from most of the east coast campuses to CQUniversity’s data centres and cloud providers.

The Centre for Professional Development boosted its capability with an upgrade of its learning management system platform and migration onto cloud infrastructure. The upgrade enables custom professional development products to be developed, significantly improving CQUniversity’s capability to respond to commercial opportunities.

CQUniversity’s library expanded its digital reach of services and collections, enabling increased student access regardless of location. Online video Ask-a-Librarian consultation sessions for students were introduced to complement services offered in library spaces. The size and use of the library’s electronic resource collections (over 500 000 eBooks and electronic database collections) was also increased.

With its national footprint, CQUniversity relies heavily on video conferencing for connectivity between employees, students and stakeholders. For the first time, CQUniversity used Zoom video conferencing for meetings and online live classrooms for students in 2018. Staff and students on average participate in over 3500 video conferences per month, equating to about 9.2 million minutes for the year and making CQUniversity second in the sector for Zoom usage.

ACCESSIBILITY THROUGH PARTNERSHIPS In 2018, CQUniversity focused on building pathways into the University and strengthening its position in the international market with institutions in China, and those such as Singapore Polytechnics and the Scottish Qualification Authority. CQUniversity’s Sydney campus and International Directorate succeeded in creating a continuing pathway for students from China through the Scottish Higher National Diploma (HND). Over the previous three years, new Chinese commencements in Sydney had decreased by 58 per cent year on year. In 2018, growth from China through the HND pathway led to an 83 per cent increase, delivering growth for the first time in six years.

CQUniversity’s success in building agreements and active partners over the past two years in Australia and internationally is evident from the growth in onshore and


offshore partners and agreements. The total number of active partners increased from 50 in 2017 to 73 in 2018, while the number of agreements grew to 166 in 2018, up from 109 in 2017.

In response to local community demand, CQUniversity partnered with a local registered training provider to deliver the Certificate II in Retail Skills to high school students in Busselton and Karratha, Western Australia. The initiative will be continued following its success in 2018. CQUniversity also partnered with Kawana Waters State College in the Sunshine Coast Region to deliver the Diploma of Business as a VET in Schools program to begin in 2019. Successful completion of the diploma will enable students to transition into CQUniversity’s Bachelor of Business with one year full credit.

CQUniversity continued to support the regional town of Hamilton through its ongoing partnership with the Rural Industries Skills Training College. A new partnership with the Western District Health Service in Hamilton led to student enrolments in CQUniversity’s Bachelor of Nursing degree, assisted by the Health Service to enable placements and local training support.

INTERNATIONAL ENGAGEMENT CQUniversity hosted over 20 international delegations, including the Consul General of Chengdu in the People’s Republic of China, the Argentine Ambassador to Australia, the Ministry of Public Administration Bangladesh, and the Ministry of Education Indonesia. CQUniversity facilitated discussions on transnational education, joint research programs, student and employee mobility and exchange, international articulations, and cotutelle arrangements.

CQUniversity continued to offer students opportunities to study overseas via study tours, placements, and study abroad and exchange through its CQUGlobal Outbound program. CQUGlobal Outbound participants share their knowledge and experiences with their overseas host institution and community, furthering the University’s international engagement. In 2018, CQUGlobal Outbound sponsored 348 students to travel overseas, a 49 per cent increase in two years.

CQUniversity’s School of Business and Law delivered a series of training programs on leadership development and capacity enhancement for the Ministry of Public Administration in Bangladesh. Each cohort of civil servants engaged in workshops and visited local Australian public authorities to experience how their learning applied in an Australian context.

CQUniversity continued its long-standing sponsorship of Salaam Baalak Trust’s City Walk, a guided tour through New Delhi slums led by former street children who have benefitted from the Trust’s support. This relationship exemplifies the University’s ongoing commitment to social innovation and values of engagement and giving back, locally and globally.

A Memorandum of Understanding, signed in 2018 between CQUniversity and the Bangladesh Ministry of Public Administration, is designed to strengthen collaboration in research, teaching and training. Thirty public sector managers from Bangladesh attended a 12-day program in Brisbane to focus on leadership and capacity-building skills.


COMMUNITY COLLABORATIONCommunities are integral to CQUniversity’s growth and sustainability. CQUniversity has an embedded engagement agenda that drives interaction with its many communities and stakeholders to create social, intellectual and cultural capital through education, training, research, and service. CQUniversity partially gauges its success by capturing engagement activities using its purpose-built engagement database, E-DNA. In 2018, E-DNA recorded engagement activity growth from around 9200 to nearly 11 900 activities across education, research and service from the start of the year.

RECOGNISING COMMUNITY ENGAGEMENT For the ninth consecutive year, CQUniversity’s Opal Awards for Excellence in Engagement recognised employees and students for their outstanding engagement and volunteer work with internal and external communities. In 2018, 30 employees and 22 students were recognised and rewarded with an Opal Award for their contribution in education, research, service, social innovation and service learning. Details of all winning projects and nominees can be viewed on CQUniversity’s website at www.cqu.edu.au.

INDIGENOUS LEADERSHIP AND ENGAGEMENT CQUniversity’s Office of Indigenous Engagement works collaboratively with stakeholders to build cultural capital by sharing and exchanging knowledge and progressing Indigenous cultural competency. Through his participation at Council, the Pro Vice-Chancellor (Indigenous Engagement), Professor Adrian Miller, influences the University’s strategic direction, particularly on issues such as reconciliation, Indigenisation of the curriculum, and programs to support Indigenous student engagement in university studies.

The Office of Engagement is developing the new CQUniversity Indigenous Leadership and Engagement Strategy, which will take the University forward with an innovative approach to Indigenous interaction and engagement. Founded on the principle of building a whole-of-university approach to Indigenous education, training and research, the strategy will be responsive to Indigenous Student Success Program guidelines and the Universities Australia Indigenous Strategy 2017 – 2020.

BROLGA

CQUniversity partnered with Josh Arnold from production company, Small Town Culture, to engage primary and secondary Indigenous students from Rockhampton’s local schools to promote the University’s BROLGA Program and the spirit of reconciliation through song-writing and performing. BROLGA engages with Indigenous students of all ages to build their self-confidence, cultural knowledge, leadership and understanding of the University and their options for education and training.

A class of local Rockhampton school students participate in the BROLGA program. BROLGA stands for Believe. Respect. Openness. Learn. Grow. Achieve. The program aims to inspire the future leaders of Central Queensland’s Indigenous communities.


SUPPORTING KUTTA MULLA GORINNA

Located on CQUniversity’s Mackay City campus, the Kutta Mulla Gorinna organisation provides an alternate learning path for at-risk youth and is highly successful in attracting disengaged and high-risk youth back to an education pathway. CQUniversity supported the group’s application for accreditation by the Non-State Schools Accreditation Board and donated $25 000 worth of pre-loved computer equipment for staff and student use.

WOORABINDA EDUCATION HUB

During 2018, CQUniversity and key Woorabinda stakeholders continued to advance plans to establish a Woorabinda education/social innovation business hub, first conceived in 2016 from a research relationship between the community and the Office of Indigenous Engagement. The aim is to learn from this initiative and develop a business model, strategies, and financial and risk management plan that together will inform a framework for creating more education hubs within Indigenous communities.

FIRST PEOPLES’ THINK TANK

The First Peoples’ Think Tank secured University Council support and around $485 000 in seed funding to begin implementation. Conceived by Associate Professor Henrietta Marrie AM, the think tank will influence a positive and proactive approach to reconciliation in Australia through activities including translational research; response to policy, training and development; and local, state, national and international collaborations. With plans to become a fully self-funded philanthropic and research enterprise, a critical thinkers meeting was convened in October to explore research and funding opportunities. MOUs are being negotiated with leading organisations to support the First Peoples’ Think Tank, expected to be fully active from 2019.

RESPONDING TO REGIONAL NEEDS CQUniversity continued to investigate opportunities to align with regional needs through its network of region engagement committees (RECs). These collaborative university–community groups enhance the University’s ability to link with local communities and better understand their needs. Through the REC network, CQUniversity drew on the collective expertise and connections of around 100 community leaders as well as CQUniversity employees and University Council members.

RECs played a critical role in hosting 10 ‘indabas’. These collaborative events brought CQUniversity and communities together, aiming to find common ground on addressing local issues in their region, such as Indigenous student success factors in tertiary education, mental health, loneliness, social entrepreneurship and small business, and volunteering for Australian charities.

The Noosa Education and Training Alliance (NETA) was created in 2018 as a platform for collaborative education and training in the Noosa region. Still in its infancy, membership includes local public and private schools, private RTOs, TAFE, and the University of Sunshine Coast, with CQUniversity and the Noosa Shire Council as the key founding partners. NETA aims to develop the market for edutourism, promote pathways to employment and education, and develop a collaborative training hub for the Noosa region.

Under construction this year, the Mackay Aquatics and Recreation Complex located at CQUniversity’s Mackay Ooralea campus, is due for completion in February 2019. The complex is a joint initiative of the Mackay Regional Council, Federal Government and CQUniversity. Featuring three state-of-the-art swimming pools, a synthetic athletics track and multi-use playing surface, the $23.9 million complex will cater for Mackay’s future growth and meet future planning needs for sport and recreation in the region.

SOCIAL INNOVATION IN ACTIONCQUniversity’s commitment to social innovation is about engaging with communities to address entrenched social issues. Throughout 2018, the University continued its long-term engagement and ‘giving back’ strategies to strengthen social innovation across its footprint—some examples are provided below:

» CQUniversity’s Office of Social Innovation and community partner, Multicap, collaborated in a three-day workshop in Brisbane to develop new concepts on ‘new work opportunities in a digital age’ for Multicap clients, using the collective expertise of CQUniversity staff and students, and staff and clients from Multicap.

» New partnerships with the Queensland Social Enterprise Council and the Social Enterprise Network Sunshine Coast helped to strengthen the social enterprise sector in Queensland, with over 300 people contributing to a range of initiatives, including a human-centred-design professional development session at the Noosa campus, and multiple networking and education events at the Brisbane campus through the year.

» CQUniversity participated in the city’s Melbourne Knowledge Week program with an event to raise awareness about the challenges of navigating the city with a disability. The event involved 50 participants being temporarily deprived of the ability to walk, see or hear. Aided by volunteers, participating designers, architects, engineers and planners navigated city streets, public transport and retail experiences, and later reflected on their experience through facilitated discussion to consider how to adapt future design work.


» Hundreds of students and employees across nine campuses were encouraged to get started in making social change at CQUniversity’s inaugural Festival of Change event held in July/August. The week-long celebration of social innovation showcased inspirational projects and initiatives from students, employees, alumni, and stakeholders who are making a difference.

» CQUniversity finalised a comprehensive Caregiver Curriculum to be delivered to the Nepal Youth Foundation in early 2019. The train-the-trainee package covers basic hygiene, water and sanitation; basic care of animals; child health; elderly care; emergency care and first aid; environmental and community health; maternal and infant health; and safe communication and counselling.

RECOGNISING SERVICE TO SOCIAL INNOVATIONIn December 2018, CQUniversity recognised the work of Social Innovation Engagement Committee member, Mr Jim Mullan, awarding him an Honorary Doctorate for service to the field of social innovation. Chief Executive Officer of food rescue organisation SecondBite, Mr Mullan is recognised globally for his role in developing the social enterprise sector. CQUniversity has been fortunate to benefit from his input through the Committee since 2016.

CONNECTING WITH ALUMNIThrough its 100 000 strong alumni, CQUniversity strives to encourage their continuing involvement to inspire students and graduates to achieve their potential. Events to connect with alumni were held in Australia and internationally. In 2018, over 2000 alumni engaged with CQUniversity in mutually beneficial activities, including surveys, mentoring or supervising students, serving on committees, or donating to prizes or scholarships. Growth in alumni involvement during 2018 was partially due to the introduction of six new discipline-specific newsletters, enabling teaching staff to more easily connect with alumni cohorts in their field of study.

RECOGNISING COMMUNITY SERVICE CQUniversity confers honorary awards on individuals to recognise their outstanding contributions to the Australian community. Honorary award recipients for 2018 were:

COMPANION OF THE UNIVERSITY

Reverend John ColemanGradCertMgt UWS, MLitt(CultSt) CQU, MTh CSU, JP (Qual)

Mrs Dorothy DemackDipEd, BA(Hons) Melb

Dr Victor MasonBSc(Eng), PhD Soton

Mr Brian O’NeillBEd JCU, MLMgt CQU

Ms Jenny RobertsBBusAdmin CQU, MTertEdMgt Melb, GAICD

DOCTOR OF THE UNIVERSITY

Professor David BattersbyDipTeach CQU, BEd(Hons), MHEd UNSW, PhD Waik

Professor Clifford Blake AOBSc(Ag), DocEdAdmin USYD, PhD AU, PhD(Econ) HELP, HonDUni CSU

Mr Jim MullanMBA UWS

Dr Judith WilliamsMBBS, FRACP

HONORARY DOCTOR OF CREATIVE INDUSTRIES

Mr Jandamarra CaddCertIVATP Caboolture, CertFA Nambour, BA Deakin

HONORARY DOCTOR OF HISTORY

Mrs Vanessa Seekee OAMBTeach ACU, MA CQU

HONORARY MASTER OF BUSINESS

Ms Amy TurnbullMAICD

HONORARY MASTER OF TOURISM

Ms Philippa WoodwardBN (equiv) KCH, SRN

In recognition of a decade of leadership and outstanding contribution to the University, Professor Scott Bowman was appointed an Emeritus Professor of CQUniversity during his final graduation ceremony at Rockhampton in December. The citation for the award recognised Professor Bowman’s significant and lasting contributions to the landscape of the University.

Mrs Dorothy Demack was recognised as a Companion of the University for her dedication and long-term voluntary service to the University through the Animal Ethics Committee.


DRIVE SUSTAINABLE AND RESPONSIVE CHANGES IN VET

SUSTAINABILITY THROUGH GROWTHVocational education and training (VET) delivery through CQUniversity not only enables broad presence and reach, but it also enables alternative ways of responding to changing educational and trades markets. During 2018, the new Business Development team focussed on growing bespoke commercial training across CQUniversity, particularly (but not exclusively) in VET-related areas.

The Business Development team identified and developed non-award, commercial or fee-for-service short courses and commercial opportunities that relate or provide pathways to CQUniversity’s higher and vocational education and training courses. CQUniversity now has 200 courses available through its Centre for Professional Development—a 100 per cent increase in eight months—and over 100 new courses currently in development, ranging from 1 to 150 hours duration. Vocational short courses offered in 2018 include 13 accredited courses, two skill sets, and 14 non-accredited courses.

PARTNERSHIPSCQUniversity strengthened its partnership with industry in 2018 through a range of agreements and MOUs to deliver qualifications to partner employees, including:

» PT Thiess in Indonesia (an RTO services agreement for resources qualifications)

» Rio Tinto in Weipa (an RTO services agreement for engineering qualifications)

» Programmed in Gladstone (for delivering a process plant qualification)

» Score in Gladstone (for delivering an engineering qualification to Score Pty Ltd)

» Glencore in Emerald (for dual engineering qualifications delivered to Glenore’s apprentices).

CQUniversity also secured contracts in 2018 to expand its role supporting the community through skills development. This included two successful applications with Skilling Queenslanders for Work in Gladstone, working with the community group, Welcoming Intercultural Neighbours, to deliver:

» Community Work Skills to disadvantaged jobseekers for a Certificate III in Early Childhood Education and Care, and a Certificate III in Education Support, and

» Work Skills Traineeships in a Certificate I in Construction.

Twenty-one VET in Schools agreements with high schools across Queensland were signed in 2018. In addition, 40 training service agreements were also executed this year with a range of companies and businesses across the key discipline areas of health, community services, hospitality, tourism, and trade.

VET students now have the chance to apply for CQUniversity's first VET scholarship thanks to the Sarina Community Bank® Branch of the Bendigo Bank. Pictured (from left) are Certificate III in Engineering (Mechanical Trade) students Mr Aidan Jones, Mr Brendan List, Mr Samuel Johnson, Mr Benjamin Muscat and Ms Phoebe Bailey.


TRANSFORMATIONAL VETCQUniversity expanded its vocational education and training offerings to ensure students can not only commence a career, but also improve their current capability, expand skillsets, and build competencies in key growth areas. New courses offered in 2018 include:

» Certificate III in Allied Health Assistance » Certificate IV in Crime and Justice » Certificate IV in Rail Safety Investigation » Diploma of Remedial Massage » Diploma of Public Safety (Emergency

Management), and » Advanced Diploma of Public Safety

(Emergency Management).

CQUniversity also committed to a major contract in 2018 with Suncorp to co-design, implement, facilitate and manage the Future Ready Academy involving up to 120 students annually. The Academy’s primary purpose is to re-skill Suncorp’s employees with the future capabilities required by Suncorp. CQUniversity will deliver training in:

» digital and data insights » robotics and process automation » marketplace mindset » enacting partnerships, and » exploring disruption.

INTERNATIONAL EXPANSIONCQUniversity expanded its suite of vocational education and training courses registered with CRICOS in 2018 to now include more than 14 options for international students, such as:

» Certificate II in Kitchen Operations » Certificate III in Business Administration » Certificate III in Commercial Cookery » Certificate II in Hospitality » Certificate II in Automotive Servicing Technology » Certificate II in Information, Digital

Media and Techonolgy » Certificate III in Hospitality (Restaurant Front of House) » Certificate III in Individual Support » Certificate IV in Business » Certificate IV in Commercial Cookery » Diploma of Project Management » Diploma of Hospitality Management » Diploma of Nursing (Enrolled Division 2), and » Diploma of Travel and Tourism Management.

In addition, two cohorts of international students from Papua New Guinea undertook the Certificate IV in Business in 2018.

RECOGNISING ACHIEVEMENT

AUSTRALIA DAY AWARDS

CQUniversity Visual Arts alumnus, Mr Jet James, was honoured in the Livingstone Shire Australia Day Awards, receiving a Cultural Award (Individual) for his artisic services to the region. Mr James completed his Diploma of Visual Arts at the then CQ TAFE in 2009, and has become a successful printmaker, with works being exhibited around Australia and New Zealand.

TRAINING AWARDS

Employees and students in CQUniversity’s vocational education were recognised in Queensland and at the national vocational awards in 2018. The achievements below highlight the quality and industry relevance of CQUniversity’s courses and teaching staff:

Mrs Charlie JensenHospitality Teacher, School of Education and the ArtsCentral Queensland Training Awards VET Teacher of the Year

Mr Luke SondergoldDiploma of Nursing (Enrolled/Division 2 Nursing) studentCentral Queensland Vocational Student of the Year

WORLDSKILLS NATIONAL AWARDS

CQUniversity-trained apprentices, Mr Dylan Bell and Mr Anthony Cobb, won gold at the WorldSkills Nationals competition in Sydney in June this year. The pair claimed gold after several days of competition against other apprentices around Australia. Dylan won the Electrical Control category, while Anthony won the Electrical Installation section.

BUILDING CAPABILITYCQUniversity enhances the leadership and management capacity of discipline leaders to ensure continuous improvement and capability. In 2018, all CQUniversity VET Qualifications Coordinators completed a bespoke, internally-developed leadership and management training course.

CQUniversity also launched the Get Real Education at TAFE (GREAT) program in June 2018 to enable and encourage the University’s employees to undertake vocational courses. By the September intake, CQUniversity recorded 57 approved applicants for enrolment; a further nine applicants were admitted for the October intake.


A POINT OF DIFFERENCE

VET ARTICULATION TO HIGHER EDUCATIONAs a dual sector university, CQUniversity is in the unique position of being able to offer its students vocational diploma courses that articulate into higher education degree courses. More than 12 articulations from VET into higher education were offered in 2018, including those shown below:

» Diploma of Business » Diploma of Business Administration » Diploma of Leadership and Management » Diploma of Human Resources Management » Diploma of Workplace Health and Safety » Diploma of Visual Arts » Diploma of Early Childhood Education and Care » Diploma of Accounting » Diploma of Nursing » Diploma of Paramedical Science » Diploma of Information Technology » Diploma of Travel and Tourism Management

EMBEDDED VET DIPLOMASCQUniversity also offers higher education qualifications with a VET diploma qualification embedded in the course curriculum. This enables students to complete a VET qualification as the first year of the higher education course. The following higher education courses offered an embedded articulation arrangement in 2018:

» Bachelor of Occupational Health and Safety » Bachelor of Accident Forensics » Associate Degree of Occupational Health and Safety » Bachelor of Education (Early Childhood) » Bachelor of Education (Primary) » Bachelor of Agriculture.

CQUniversity’s Hospitality Teacher, Mrs Charlie Jensen, passes her passion for hospitality and impeccable service culture to more than 100 vocational students each year. Mrs Jensen was awarded VET Teacher of the Year at the 2018 Central Queensland Training Awards.


LEAD EXCELLENCE IN HIGHER EDUCATION

INNOVATIVE HIGHER EDUCATIONIn 2018, CQUniversity streamlined its approach to work-integrated learning to provide a supportive, quality experience for students, and ultimately to increase their job-readiness and industry preparation on graduation. CQUniversity’s focus was on implementing an improvement framework, including strategies and action across five areas:

» policy, audit and risk assessment » communication and reporting strategy » organisational structure and realignment » business development and alumni engagement, and » professional development, enhancements

and improvements.

The School of Nursing, Midwifery and Social Sciences commenced a project in 2018 that blends workplace experience and social innovation. The pilot project at the Townsville Women’s Correctional Centre links pregnant incarcerated women with midwifery students as ‘continuity of care’ experiences. Correctional officers can nominate to be project champions and receive additional education about relevant topics, including imminent birth and pain relief in labour. The pilot has been extended to male prisoners as part of the ‘Midwives 2 Men’ initiative at the Capricornia Correctional Centre.

NEW COURSESGrowth in the health care and social assistance industry has led CQUniversity to develop the following range of new postgraduate courses to equip professionals to meet rising demand for increased skills:

» Graduate Certificate in Nursing Re-entry (domestic and international)

» Graduate Diploma of Positive Psychology » Master of Clinical Nursing » Master of Mental Health Nursing » Master of Domestic and Family Violence Practice » Master of Public Health » Specialisations in hospital and health services

management and public administration were added to the Master of Business Management.

As economic growth creates travel demand, a need for more pilots in the Asia–Pacific region was identified. To meet demand, CQUniversity began offering undergraduate courses in aviation in 2018, including the Bachelor of Aviation (Flight Operations) and (Commercial Pilot), and the Associate Degree of Aviation.

CQUniversity also expanded its double-degree offerings to enable graduates to apply knowledge in multiple fields in the workplace. Four new double degrees were offered:

» Bachelor of Laws and Bachelor of Information Technology

» Bachelor of Laws and Bachelor of Business » Bachelor of Laws and Bachelor of Property, and » Bachelor of Laws and Bachelor of Science (Psychology).

EXIT AWARDSExit awards are now a mandated part of all new coursework degrees, enabling students who do not complete their intended course to graduate with a lower level qualification if they have completed the qualification requirements. The School of Health, Medical and Applied Sciences offered exit awards from 15 courses in 2018, including the Bachelor of Paramedic Science from which students can exit with a Diploma of Health Sciences.

TRANSFORMATIVE LEARNING CQUniversity delivers comprehensive course content that equips students with literacies and capabilities to help them succeed in a world of technological change. For example, the School of Nursing, Midwifery and Social Sciences embedded emerging technologies in its curricula in 2018, including:

» work-on-wheels carts for clinical learning spaces that provide a complete mobile workstation solution. This technology is now being used in hospitals throughout Queensland, and CQUniversity is one of Australia’s first universities to use this technology in nursing clinical spaces.

» tag-team patient safety simulation, incorporated into the midwifery residential program to enable flexibility in terms of location and group size, and an immersive experience for all student learners. The newly-developed simulated scenarios are based on obstetric emergencies and provide all students with an opportunity to enhance their clinical competency.


STEMThe Australia–Pacific LNG Science, Technology, Engineering and Mathematics (STEM) Central Hub was officially opened at CQUniversity’s Gladstone Marina campus in August 2018. The hub is the result of a partnership with ConocoPhillips, the downstream operator of Australia–Pacific LNG. It provides educational STEM resources for the community and professional development opportunities for teachers on how to embed STEM into the primary classroom. Each school has a STEM Coordinator who work together to coordinate STEM research, courses and activities across CQUniversity.

VIRTUAL REALITYCQUniversity developed three virtual reality (VR) labs and two portable VR labs in 2018 for creating immersive experiences for students and engaging with local communities. CQUniversity has also developed capabilities for building immersive content using 360-degree video recording and streaming across six courses; digital marketing using augmented reality pop-up videos for international student recruitment; and templates for multimedia and VR content for direct inclusion in online learning.

HEPPP Higher Education Participation and Partnerships Program (HEPPP) grants from the Australian Government are for initiatives to increase access to and participation in higher education by domestic undergraduate students from low socio-economic backgrounds and to support student retention, success and course completion. In 2018, CQUniversity was funded $4 931 490, which was used to deliver 12 undergraduate and outreach programs across Australia. Initiatives managed by the Tertiary Education Division include:

» Embedding low socio-economic status (SES) undergraduate literacy: students are provided with relevant and easily accessible assistance via CQUniversity Student Advisers and access to online study resources to improve academic literacy skills.

» Community Aspiration Program in Education: an outreach program aimed at Aboriginal and Torres Strait Islanders from low SES backgrounds, who are at risk of being disengaged from high school in Years 11 to 12, or mature-aged prospective students aged 17 years and over living in low SES communities. The initiative shares knowledge and information about study pathways, builds preparedness for pathways through literacy and numeracy skills, and provides individualised support to navigate application and enrolment processes.

» Towards a five-year STEM Tertiary Education Transition and Success Plan for low SES students: a two-phase project involving collaboration with Bundaberg North State High School. The project targets Year 9 students from low SES backgrounds to provide practical experience about the mathematics skills and knowledge required for a STEM career. The second phase engages with enrolled students from low SES backgrounds to develop a range of interventions to effectively support these students to complete their studies.

OPEN COURSES The BeDifferent Open Courses platform, CQUniversity’s flexible open courses environment, was launched in 2018. BeDifferent is a custom Moodle learning management system with state-of-the-art course navigation, specialist content (including Harvard Business Review resources), and a novel light-touch enrolment and payment workflow. BeDifferent currently houses the new fully self-paced, online Master of Business Administration (Leadership) course.

Associate Professor Anita Bowman observes a CQUniversity sonography student’s scanning techniques. Associate Professor Bowman won the national Educator of the Year Award and the Sonographer of the Year – The Pru Pratten Memorial Award in 2018.


COMMUNITIES OF PRACTICECommunities of Practice (CoPs) played an important role in sharing practice among academic and professional employees in 2018. CoPs are a vehicle for input into policy and practices as well as professional development, and demonstrate increased innovation and inquiry in the context of higher education. The number of CoPs at CQUniversity in 2018 increased from five to 13.

STUDENT LEARNING ANALYTICSCQUniversity increased its focus on learning analytics in 2018 to better understand and optimise student learning and success. The predictive capability of analytics indicates a student’s likelihood of success on a weekly basis for each unit. Combined with relevant data providing context about the student, such as their engagement and progress during a unit, academics and student advisors are able to implement personalised student success strategies. The improved functionality also enabled employees across CQUniversity to facilitate student support from the Student Experience, Student Support, Course Advice and Governance teams.

ENHANCED TECHNOLOGYCQUniversity’s online learning capability was boosted during the year by migrating the Moodle learning management system to cloud infrastructure. This resulted in a much faster and responsive web experience and consistent user experience for students.

A new smart data load process was also developed to significantly reduce the time to manually load tertiary admission centre (TAC) data into CQUniversity’s StudentOne system. A new enrolment link was added to the Queensland TAC website enabling new students to easily accept their CQUniversity offer to study. Since its inception, statistics show a 25 per cent reduction in the time taken by new students from offer to acceptance.

Associate Professor Henrietta Marrie AM, a Gimuy Walubara Yidinji woman, was presented with a Queensland Great Award by Premier Annastacia Palaszczuk in Brisbane.


ACADEMIC AND ALUMNI EXCELLENCECQUniversity academics and graduates were recognised for their outstanding achievements in 2018:

AUSTRALIA DAY AWARDSAssociate Professor Henrietta MarrieMember of the Order of Australia in the General Division (AM)For services to Indigenous culture, intellectual property rights and education.

Associate Professor Sharyn EatonMedal of the Order of Australia in the General Division (OAM)For services to chiropractic medicine and education.

QUEEN’S BIRTHDAY HONOURSMr Terry Effeney, AlumnusOfficer of the Order of Australia (AO)Recognised posthumously for distinguished service to the energy supply sector, particularly in Queensland, through planning and delivery programs, to infrastructure management, and to the community.

NATIONAL AWARDSAssociate Professor Anita BowmanAwarded the Educator of the Year Award and the Sonographer of the Year – The Pru Pratten Memorial Award from the Australasian Sonographers Association 2018 Awards of Excellence.Recognised for her role in creating a new pathway for aspiring sonographers and who, by her personal efforts and desire for excellence, advances the profession of sonography.

UNIVERSITY RECOGNISING ALUMNI ACHIEVEMENTSCQUniversity’s alumni are making a significant impact on the University and their communities and regions, some of whom are recognised through honorary awards (shown in the section ‘Expand our presence and reach’). The following outstanding alumni were recognised through the University’s Alumni Awards program, receiving their awards at graduation ceremonies throughout the year:

His Honour Judge Alexander Horneman-WrenBBus CQU, 1987; HonDLaws CQU, 2016

Outstanding Alumnus of the Year Award

For his significant impact on jurisprudence in Queensland and his contributions to community development.

Mr Paul TaboneBMusTheatre CQU, 2008

Alumnus of the Year Early Career Achievement Award

For his successful operatic career and current role in Phantom of the Opera on West End.

Ms Tanya DenningBA(Comm&Jour) CQU, 1997

Alumnus of the Year Industry Excellence Award

For achievement in the media and journalism industry.

Mr Robin Man AmatyaBBus CQU, 2008

Alumnus of the Year Social Impact Award

For his leadership in helping Nepalese women empower themselves through home-based, self-sustained business.

STUDENT ACADEMIC EXCELLENCEFollowing her graduation with a Bachelor of Laws 2017, Ms Nareeta Davis was recognised for her academic achievement, receiving the Queensland Law Society’s First Nations Legal Student of the Year Award for 2018.

CQUniversity awarded a University Medal and School Medals to students who achieved an exceptionally high level of performance in their degree. Eligibility requires achievement at the distinction level in a three-year degree or first class honours level in a four-year degree. Medallists for 2017, awarded during 2018, were:

UNIVERSITY MEDAL RECIPIENTMr Steven VossBachelor of Engineering (Honours) and Diploma of Professional Practice (Co-op Engineering)School of Engineering and Technology

SCHOOL MEDAL RECIPIENTSMrs Lorraine BornmanBachelor of Education (Primary)School of Education and the Arts

Mr Dean Callaghan Bachelor of Exercise and Sport SciencesSchool of Health, Medical and Applied Sciences

Ms Hayley Erhart Bachelor of NursingSchool of Nursing, Midwifery and Social Sciences

Mr Steven Voss Bachelor of Engineering (Honours) and Diploma of Professional Practice (Co-op Engineering)School of Engineering and Technology

Miss Renee Williams Bachelor of AccountingSchool of Business and Law


DRIVE CHANGE AND BE A DISRUPTOR IN THE SECTOR

DISRUPTING THE STATUS QUO Through its ‘dare to be different’ approach, CQUniversity aims to disrupt the status quo in the sector to drive change while continuing to follow its values, to be accountable and fiscally responsible, and adopt progressive management practices. CQUniversity seeks to lead change in the sector, not just adapt to it. CQUniversity believes education is for all and actively promotes opportunity and inclusiveness for students through its many courses, support services, and innovations.

SOCIAL INNOVATION CQUniversity continued to deliver on its Social Innovation Strategy 2016–2021 in 2018. Work commenced on integrating social innovation concepts and skills into a range of undergraduate degrees. Also, the successful launch of CQUniversity’s iChange social innovation MOOC has attracted more than 1000 employees and students to participate in the ground-breaking program. Future plans to commercialise iChange will make it available at low-cost to community partners and external groups.

In partnership with Social Traders, the University began a review of its social procurement activities, and is developing a clearer view of how it can better support local businesses, social enterprise, and Indigenous businesses through regular and planned procurement opportunities.

RECONCILIATION ACTION CQUniversity’s Innovate Reconciliation Action Plan (RAP) 2016–2018 continued to influence the way the University performs its business to improve Aboriginal and Torres Strait Islander economic, health and social opportunities. CQUniversity undertook a review and evaluation of the RAP’s impact on students, employees, communities, and stakeholders following the RAP’s expiry in September 2018. All 91 action items were either completed or are on track, with many areas of success including:

» a new five-year partnership with BHP confirming the renewal of the BHP Chair in Indigenous Engagement role; 18 Community and Indigenous scholarships; two research projects; and the continuation of the Australian Indigenous Mentoring Experience (AIME) program in Rockhampton, Gladstone and Mackay, with expansion to Townsville and Cairns and outreach to Woorabinda, Emerald, Palm Island and Yarrabah.

» the highly successful, inaugural ‘Dare 2B Deadly’ Indigenous leadership forum. Aboriginal and Torres Strait Islander employees were engaged in the ‘Engoori’, a three-phase strength-based approach that encouraged conversations with structure and purpose. Employees are very motivated to continue to be connected across the University, to develop new ways of working, and to meaningfully contribute to the University. The first step is to establish an employee network and ongoing professional development in leadership.

» bilingual signage in English and Traditional Owner languages introduced at a number of campuses.

AUSTRALIAN INDIGENOUS MENTORINGIn 2018, 911 students from 22 secondary schools in the Rockhampton, Gladstone, Woorabinda and Mackay regions participated in the AIME program. The AIME team were ably assisted by 58 University student mentors. The past year saw an expansion of the program to the Townsville and Cairns regions, with 51 Year 7 and 8 students from four schools taking part in an experience day.

AIME has received a much appreciated five-year sponsorship from BHP, enabling the program not only to continue serving the Rockhampton, Gladstone and Mackay regions, but also to expand into far north Queensland and Emerald. AIME will continue to support participants graduating from Year 12 for six months to assist them to enter positive pathways such as university, further education, training or employment.

(From left) CQUniversity’s Deputy Vice-Chancellor (Engagement, Campuses and Mackay–Whitsunday Region) Professor Pierre Viljoen, Pro Vice-Chancellor (Indigenous Engagement) and BHP Chair in Indigenous Engagement Professor Adrian Miller, and BHP South Walker Creek Manager of Production Mr Matt Simpson pictured at the CQUniversity and BHP partnership event. BHP’s commitment to fund University-led programs in Central and North Queensland over the next five years was announced.


TECHNOLOGY AND INNOVATIONAn automated chat service was incorporated into CQUniversity’s Student Portal to provide an easy-to-access and always-on service for student enquiry management. The ‘chatbot’ uses an artificial intelligence engine to learn and then link to more than 800 question and answer sets to effectively answer student enquiries. This has been a well-used service with over 44 000 student interactions and 104 000 questions answered. Of these interactions, 47 per cent took place outside of University business hours, which indicates the technology is catering to currently unmet customer service demand.

As mentioned previously, CQUniversity developed three virtual reality (VR) labs and two portable VR labs for creating immersive experiences for students and engaging with local communities. The Univeristy also launched its BeDifferent platform, a flexible online environment for accessing open courses to be delivered in an innovative, fully self-paced format.

ONLINE ORIENTATIONWith a significant online student cohort, CQUniversity decided to overhaul its Orientation Online platform in 2018. The previously text-based platform is now primarily driven by short-form video content, featuring real CQUniversity students and employees advising students on key information such as navigating CQUniversity systems, participating in student mentoring, acquiring study skills, and accessing student support.

STUDENT INCLUSION

CQUNICARES CQUniversity’s annual CQUniCares Appeal, which raises funds to support the learning of disadvantaged and non-traditional students, reached a significant milestone in 2018 with more than $200 000 raised across the 25-day appeal. Notable donors included Downer, the Scott Williams Foundation, and the Kate Mullin Association. Funds raised through the appeal will benefit more than 50 CQUniversity students experiencing financial stress to support their learning aspirations.

INDUSTRY PARTNER SCHOLARSHIPSIn 2018, CQUniversity awarded three BHP Indigenous Scholarships of up to $40 000 value over four years to first-or second-year students enrolled in nursing, paramedic science, and science. A further six BHP Community Scholarships were awarded to students who will receive up to $20 000 over four years to support their studies in CQUniversity’s bachelor degrees in education, medical science, exercise and sports science, laboratory science, nursing, and occupational therapy. Nine eligible applications were received and one successful applicant studying a Bachelor of Social Work was offered a scholarship.

A new strategic community partnership between CQUniversity and BHP was launched in August heralding a $4 million commitment to fund University-led programs in central and north Queensland over the next five years. The agreement is designed to bring about key education and equity outcomes for communities, increase prosperity, and close the gap in Indigenous education attainment in these regions. The multi-million dollar investment will fund key programs delivered through the University, including Indigenous and Community scholarships, the AIME program, and engagement and research led by the Pro Vice-Chancellor (Indigenous Engagement) and BHP Chair in Indigenous Engagement, Professor Adrian Miller.

EARLY-START PROGRAMSCQUniversity’s long-running Start Uni Now (SUN) program, which allows Year 11 and 12 students to undertake up to four units of tertiary study while still at school, introduced a ‘first unit free’ initiative to incentivise the program’s uptake nationally. Units are already offered at a significant discount; however, the ‘first unit free’ initiative achieved an enrolment increase of more than 50 per cent year-on-year due to enthusiastic take-up. Students who pass at least one SUN unit are entitled to conditional direct entry into a number of CQUniversity undergraduate courses.

STUDENT PARTICIPATION

INTERNATIONAL STUDENT SATISFACTIONIn 2018, CQUniversity’s results in the internationally-benchmarked International Student Barometer survey demonstrated a marked improvement across almost all indices since 2014. Highlights of the statistically significant data include 94 per cent student satisfaction with arrival experience; 91 per cent satisfaction with learning experience; 90 per cent satisfaction with living experience; and 92 per cent satisfaction with support experience. A staggering 99 per cent of international students surveyed reported satisfaction with the University’s Research Division.

UNIVERSITY RANKINGS PERFORMANCE CQUniversity was awarded five stars over six categories in the latest Good Universities Guide, including important measures like graduate employment and starting salary. CQUniversity was also ranked in the top 2 per cent of universities worldwide in the Times Higher Education World University Rankings, and was recognised as one of the top 100 universities under 50 in the annual QS Rankings. In the Australian Government’s Quality Indicators of Learning and Teaching rankings, CQUniversity was rated in the top three universities nationally for full-time employment and salaries at the undergraduate and postgraduate levels.


THE BIG IDEA CQUniversity students again competed in ‘The Big Idea’ social enterprise competition hosted by The Big Issue street magazine. A strong field of internal teams saw an undergraduate and postgraduate team again go forward into the national semi-final, competing against students from 13 other Australian universities.

CAMPUS LIFE COMMITTEES CQUniversity has a flourishing network of campus life committees (CLCs) operating across its footprint that focus on enhancing the university experience of students (and employees) through a range of activities, events, services, and social opportunities. By engaging students and employees in this way, CLCs aim to contribute to an interactive and enjoyable campus atmosphere and improved health and wellbeing more broadly. They are also a vehicle for formal discussion on and submission of proposals for Student Services and Amenities Fee funded initiatives that further contribute to the engagement and learning journey of CQUniversity students.

Comprising employee and student members, CLCs hosted a wide variety of campus life initiatives during 2018, including pop-up lunches and pancake breakfasts; multicultural festivals; career advice and interview technique sessions; massages, yoga and self-defence classes; movie and trivia nights; orientation and end-of-term parties; and a range of local, state and national charity fundraising events.

STUDENT LEADERSHIP The Gladstone Marina Campus hosted the 2018 CQUniversity Student Leadership Conference from 29 November to 1 December. Ninety students from across the University footprint attend the three-day conference. CQUniversity collaborated with the Rotary Club of Gladstone Sunrise to bring to life the ’Bikes to Wheelchair Project’ calling it B2W@CQU. As a result, students at the conference built 20 wheelchairs to be sent overseas to developing countries helping those in need.

RESPECT. NOW. ALWAYS.CQUniversity has been working with students and staff to meet the recommendations in the 2017 Change the Course report by Universities Australia and the Australian Human Rights Commission. The University’s Respect. Now. Always. Action Plan was launched in 2018 to address and prevent sexual harassment and assault, and to help build a culture of respect more broadly in the community.

The plan is being implemented from January 2018 to December 2019, followed by a full evaluation to ensure the plan’s objectives have been met and to guide future steps. Although CQUniversity has always had a zero-tolerance approach to any form of violence, harassment, abuse, bullying or misconduct, the Respect. Now. Always. Action Plan has strengthened the University’s strategies for providing a positive, inclusive and safe learning environment for students and the wider University community.

MENTAL HEALTH PROMOTION Increased incidence of mental health issues is a recognised risk for tertiary education employees and students. In 2018, CQUniversity introduced its ‘Mind Waves’ mental health strategy to address mental health promotion in a proactive manner. By partnering with specialist services, CQUniversity is providing awareness sessions, training, and development for handling mental health in the workplace and the classroom. In a collaborative effort between CQUniversity’s Student Representative Council, People and Culture Directorate, student support staff, Indigenous representatives, and researchers, ‘Mind Waves’ will lead the sector in preventing mental health emergencies, increasing understanding of mental health, and conscientiously and sensitively managing mental health promotion in a higher education context.


STUDENT RESIDENCESCQUniversity’s student residences in Mackay and Rockhampton introduced a new student engagement model based on five pillars of activity: academic focus, community lifestyle, health and wellbeing, social and interactive activities, and life-ready skills. This initiative is intended to rejuvenate the role of student residences within CQUniversity and will underpin all activities for the next 12 months and beyond.

LIBRARY INITIATIVES CQUniversity has extended library hours at its Rockhampton North campus, with students now being able to access the library between 5am and midnight. The additional hours have resulted in a 10 per cent increase in foot traffic, with 40 000 visits measured in Term 1, 2018. The ‘LapSafe’ initiative was launched in Term 2, 2018 at the Melbourne campus, allowing students to borrow laptops on a self-service basis in a similar way to loaning books from the physical library collection. This initiative enables students to undertake computer-based work from anywhere on campus, without being confined to a designated computer lab.

The Rockhampton North campus hosted the 2018 Chancellor’s Cup, attracting 190 competitors who represented 10 CQUniversity locations. Participants combined to form five teams: North Queensland, Central Queensland, South-East Queensland, Sydney and Melbourne. The Chancellor’s Cup was conceived to celebrate sport and to create an affinity between students from across CQUniversity’s broad footprint.


FINANCIAL SUMMARY

RESULTS FOR 2018CQUniversity is reporting an operating surplus of $0.269 million at the conclusion of 2018. A change to the classification of the QIC Investment added an additional $0.930 million in expenditure, which in prior years was reflected generally as gains in the statement of comprehensive income, rather than in the income statement.

Overall revenue increased by 4.10 per cent, with expenditure increasing by 8.35 per cent. The increase in revenue is attributed to strong growth in international and full-fee paying students, resulting in a 24.1 per cent increase in student numbers. Domestic student numbers came in at 0.1 per cent above the funding cap put in place by the Federal Government in 2018. VET revenue increased by 5.45 per cent in 2018, signalling a correction in the market after the downturn in the resource industry; however, the VET operations are overall in a deficit situation of $14.486 million, with higher education contributing a surplus of $14.565 million.

The cash flow remains in a strong position ending the year with $129.496 million in cash and cash equivalents, representing a 0.65 per cent reduction in cash from the previous year. The University carried no debt at the end of 2018.

REVENUE PERFORMANCE: DOMESTIC LOAD (HIGHER EDUCATION)Commonwealth Grant Scheme income increased by 1.5 per cent to $183.476 million, reflecting a slowing increase in domestic student load due to the funding caps. Domestic student enrolments only increased by 9.2 EFTSL from 2017, representing growth of 0.1 per cent. The result was an additional $2.784 million in revenue, and total revenue of $183.476 million (see Table 4).

Table 4: Comparison of actual Australian funded load EFTSL and unearned revenue for calendar year (excluding research students and Online MBA)

Funding 2017 Actual 2018 Actual VariancePercentage

Variance

Australia funded load EFTSL 9629.8 9639.0 9.2 0.1

Australia funded load revenue ($m) $180 691 520 $183 476 294 $2 784 774 1.5

REVENUE PERFORMANCE: FEE-PAYING STUDENTS AUSTRALIAN AND INTERNATIONAL (HIGHER EDUCATION)Revenue from fees and charges show a significant increase since 2017. Student numbers increased by 1171.6 EFTSL, representing a 24.1 per cent increase. This was due to an increase in domestic full-fee paying students and international students, although international students increased significantly by 1084.6 EFTSL. The overall result was an additional $39.392 million in revenue, and a total revenue of $152.343 million, representing an increase of 34.9 per cent (see Table 5).

Table 5: Comparison of actual fee‐paying student load EFTSL and unearned revenue for calendar year (excluding research students and Online MBA)

Funding 2017 Actual 2018 Actual VariancePercentage

Variance

Fee-paying student load EFTSL 4860.4 6032.0 1171.6 24.1

Fee-paying load revenue ($m) $112 950 481 $152 343 219 $39 392 739 34.9


VET REVENUERevenue for VET increased in 2018 by 5.45 per cent compared to 2017 (excluding recoupment of the VET cash losses from the Department of Education in 2017). Total operational revenue for VET during 2018 was $36.743 million. A focus on growth and retention of student numbers continues to be a priority for the University.

EXPENDITURE PERFORMANCETotal expenditure increased by 8.35 per cent in 2018, which is in line with budget expectations for the period. VET expenses increased by 5.08 per cent, which was primarily attributable to salary increases from the new Enterprise Agreement. Higher education salary increases represented a 9.77 per cent change from 2017 relating to Enterprise Agreement increases, and additional academic staff required due to increased international student numbers. Depreciation increased by 10.31 per cent due to the significant capital growth program introduced over the past five years. Cost control and efficiency creation continues to be a major focus of the University.

BALANCE SHEETThe University held a strong position throughout the year, with a cash-at-bank balance of $129.496 million at the end of 2018, plus an additional $13.516 million in cash investments, providing a total cash position of $143.012 million. All investments have been funded from working capital, and the University held no debt at year end.

Assets decreased by 0.26 per cent from $786.965 million in 2017 to $784.924 million in 2018. This was due to a downward revaluation of land and buildings, reflecting the declining property markets primarily in Mackay and Gladstone, and the reassessment of remaining useful lives. Liabilities increased by 4.55 per cent primarily due to income received in advance with a total net asset decrease of 1.18 per cent to $652.454 million at the end of 2018. The majority of this decrease was due to a reduction in the value of land, buildings and infrastructure, which did not have a cash effect.

Overall there was a $0.845 million decrease in cash held at the end of the financial year, which was reflective of a continued capital investment program. Cash from operating activities provided a positive cash inflow of $29.062 million. Capital investment represented a $29.929 million outflow of cash for the year.

OTHER MATTERSThe $29.929 million capital investment included projects such as the expansion of the campus in Cairns, including the introduction of an aviation degree at the Cairns airport; upgrades to the Rockhampton student residences; expansion of the campus in Melbourne; IT network upgrades; and the introduction of digital media courses in Cairns, echocardiography courses in Sydney, and a new chiropractic space in Brisbane.

The funding caps introduced by the Federal Government at the end of 2017 on the domestic student market has certainly had a profound effect on growth in domestic student numbers. The University is still focused on growth, particularly on the regional campuses, with the primary objective of providing regional people with the opportunity to stay within their region and still be able to obtain a high quality education.

CQUniversity will continue to budget conservatively, manage costs responsibly, and create efficiencies. Bringing the deficit in the VET operations into a surplus remains a high priority for 2019 to ensure long-term sustainability for VET training in Central Queensland.


STATISTICS Statistics notes:

» Data in the following tables are drawn from CQUniversity’s data warehouse as at 21 December 2018.

» Totals do not always match precisely the sum of the columns due to students studying at multiple locations in a calendar year.

» Unless otherwise stated, vocational education and training (VET) student/enrolment figures are based on the year students commenced in their unit. Figures for the same period published in previous years may differ, for example, as a result of student enrolments across multiple years and students later withdrawing from their course.

» AVETMISS means Australian Vocational Education and Training Management Information Statistical Standard.

» References to equivalent full-time student load are expressed as EFTSL.

Table 6: Number of students by education sector, liability category and year

Education sector Liability category

Year

2016 2017 2018Higher Education Commonwealth Supported 13 481 13 873 13 900

Domestic Full Fee 1 121 1 255 1 613

Enabling 2 241 1 942 2 100

International 5 109 6 208 7 479

Research 315 403 462

Total 21 956 23 393 25 300

VET Certificate 3 Guarantee 1 977 1 483 1 436

Fee for Service 3 988 3 352 3 707

High Level Subsidy 546 555 598

International 82 133 32

Other 467 349 272

User Choice 2 150 2 070 2 086

VET in Schools 836 805 703

VET Revenue General 40 10 0

Total 9 601 8 371 8 478

Grand total 31 195 31 427 33 238

Table 7: Student load (EFTSL) by education sector, liability category and year

Education sector Liability category

Year

2016 2017 2018Higher Education Commonwealth Supported 8 606.0 8 817.1 8 832.8

Domestic Full Fee 314.5 365.0 577.0

Enabling 908.6 816.6 817.1

International 3 794.7 4 495.4 5 581.0

Research 170.0 211.2 224.1

Total 13 793.8 14 705.3 16 031.9

VET Certificate 3 Guarantee 678.3 439.7 447.4

Fee for Service 808.2 770.9 818.4

High Level Subsidy 251.0 287.1 335.8

International 130.3 144.5 18.9

Other 86.3 69.5 53.6

User Choice 747.6 740.1 737.9

VET in Schools 244.6 232.9 228.0

VET Revenue General 6.0 1.1 0.0

Total 2 952.4 2 685.8 2 640.0

Grand total 16 746.2 17 391.0 18 672.0


Table 8: Number of students by location, education sector and year

Location

Total Higher Education VET

Year Year Year

2016 2017 2018 2016 2017 2018 2016 2017 2018

Adelaide 134 140 132 134 140 132

Brisbane 3 362 3 483 3 731 3 340 3 310 3 357 74 241 506

Bundaberg 1 870 1 883 1 981 1 863 1 858 1 924 7 28 81

Cairns 900 1 106 1 423 900 1 076 1 311 32 141

Distance (Non-Locality) 2 293 2 291 2 343 2 293 2 291 2 343

Emerald 822 787 660 351 298 315 474 490 348

Geraldton 215 228 223 215 228 223

Gladstone* 2 308 2 339 2 224 870 835 842 1 463 1 520 1 411

Mackay* 5 036 4 692 4 645 2 035 2 143 2 177 3 049 2 603 2 534

Melbourne 2 336 3 156 4 051 2 336 3 156 4 043 8

Noosa 926 869 978 924 850 915 2 19 64

Perth 136 255 350 136 255 350

Rockhampton* 7 909 6 693 6 601 3 317 3 190 3 230 4 716 3 597 3 521

Sydney 3 001 3 407 3 586 3 001 3 407 3 586

Townsville 811 986 1 315 811 956 1 197 31 122

Grand total 31 195 31 427 33 238 21 956 23 393 25 300 9 601 8 371 8 478

Notes: * Multiple locations grouped together.

Table 9: Student load (EFTSL) by location, education sector and year

Location


Year Year Year

2016 2017 2018 2016 2017 2018 2016 2017 2018

Adelaide 68.5 74.6 63.6 68.5 74.6 63.6

Brisbane 1 993.4 1 976.0 2 153.0 1 988.5 1 937.3 2 023.3 4.8 38.7 129.7

Bundaberg 1 189.9 1 177.0 1 229.8 1 186.5 1 155.1 1 193.7 3.4 21.9 36.1

Cairns 470.1 621.8 792.7 470.1 609.6 743.7 12.2 48.9

Distance (Non-Locality) 1 094.7 1 106.3 1 082.4 1 094.7 1 106.3 1 082.4

Emerald 419.0 406.8 276.0 161.4 138.3 144.8 257.6 268.6 131.3

Geraldton 144.3 151.5 138.0 144.3 151.5 138.0

Gladstone* 873.7 874.6 836.9 425.0 423.2 427.9 448.7 451.4 409.1

Mackay* 2 213.2 2 133.6 2 125.4 1 310.0 1 386.8 1 372.9 903.2 746.7 752.5

Melbourne 1 636.5 2 187.6 2 957.1 1 636.5 2 187.6 2 953.3 3.8

Noosa 503.1 474.0 512.1 503.0 458.4 465.8 0.1 15.5 46.3

Perth 61.7 119.3 198.6 61.7 119.3 198.6

Rockhampton* 3 504.9 3 200.8 3 087.3 2 170.4 2 075.1 2 050.0 1 334.5 1 125.7 1 037.3

Sydney 2 153.7 2 369.9 2 526.1 2 153.7 2 369.9 2 526.1

Townsville 419.6 517.4 692.9 419.6 512.5 647.8 4.9 45.1

Grand total 16 746.2 17 391.0 18 672.0 13 793.8 14 705.3 16 031.9 2 952.4 2 685.8 2 640.0

Notes: * Multiple locations grouped together.


Table 10: Number of students by gender, education sector and year

Gender


Year Year Year

2016 2017 2018 2016 2017 2018 2016 2017 2018

Female 17 264 17 422 18 375 12 510 13 082 14 003 5 015 4 577 4 790

Male 13 920 13 976 14 836 9 443 10 299 11 283 4 577 3 777 3 675

Unspecified 11 29 27 3 12 14 9 17 13

Grand total 31 195 31 427 33 238 21 956 23 393 2 5300 9 601 8 371 8 478

Table 11: Number of students by course category and year

Course category

Year

2016 2017 2018

Non Award 2 631 2 317 2 520

Postgraduate (Coursework) 5 281 6 684 8 181

Postgraduate (Research) 415 403 462

Undergraduate 13 938 14 278 14 398

VET 9 601 8 371 8 478

Grand total 31 195 31 427 33 238

Table 12: Student load (EFTSL) by course category and year

Course category

Year

2016 2017 2018

Non Award 0.3 0.1 0.4

Postgraduate (Coursework) 978.9 891.1 885.6

Postgraduate (Research) 3 581.8 4 434.5 5 668.5

Undergraduate 221.0 211.2 224.1

VET 9 011.9 9 168.5 9 253.4

Grand total 2 952.3 2 685.7 2 640.0


Table 13: Number of student completions by course category, course level and year

Course category Course level

Year

2016 2017 2018Postgraduate (Coursework) Graduate Certificate 249 289 316

Graduate Diploma/Postgraduate Diploma: Extend 60 63 61

Graduate Diploma/Postgraduate Diploma: New area 232 243 125

Masters 1 333 1 245 1 552

Total 1 874 1 840 2 054

Postgraduate (Research) Masters 5 9 13

Doctorate 57 48 34

Total 62 57 47

Undergraduate Diploma (Undergraduate) 28 43 48

Advanced Diploma 56 50 49

Associate Degree 106 112 101

Bachelors Graduate Entry 0 0 15

Bachelors Pass 1 544 1 526 1 714

Bachelors Honours 217 224 244

Total 1 951 1 955 2 171

VET Certificate I 155 169 111

Certificate II 794 570 637

Certificate III 1 319 961 827

Certificate IV 153 101 75

Diploma 250 258 300

Education not elsewhere classified 1 247 745 834

Non-award course 716 627 332

Skill Set 1 271 333

Statement of attainment not identifiable by level 77 3 1

Total 4 712 3 705 3 450

Grand total 8 599 7 557 7 722

Table 14: 2018 Employee profile

Female Male Total FTE

Employee Employment FTE Per cent FTE Per centAcademic Continuing 300.5 54.3 252.5 45.7 553.0

Fixed-term 25.9 45.1 31.6 54.9 57.5

Academic total 326.4 284.1 610.5

Research Continuing 1.4 26.4 4.0 73.6 5.4

Fixed-term 34.0 60.2 22.5 39.8 56.5

Research total 35.4 26.5 61.9

VET Educator Continuing 65.1 46.2 75.9 53.8 141.0

Fixed-term 13.2 70.6 5.5 29.4 18.7

VET Educator total 78.3 81.4 159.7

Professional Continuing 608.9 72.6 229.3 27.4 838.2

Fixed-term 115.3 65.9 59.6 34.1 174.9

Professional total 724.2 288.9 1013.1

Report total 1164.2 680.9 1845.2

Notes: FTE means full-time equivalent. Data does not include casuals. Report run as at 31 December 2018.


COUNCIL MEMBERS’ REPORTThe members of the Council of Central Queensland University present their report on the consolidated entity consisting of Central Queensland University and the entities it controlled at the end of, or during, the year ended 31 December 2018.

GOVERNING BODY MEMBERSThe following persons were members of the Council of Central Queensland University during 2018 and up to the date of this report:

CHANCELLORMr John Abbott, BEng(Mech) QIT, LLB QUT, CPEng, RPEQ, FIEAust, MAICD

VICE-CHANCELLOR AND PRESIDENTProfessor Scott Bowman, TDCR, DCR, HDCR CollRadiog, FAETC City&Guilds, MA GuildHall, MBA USC, PhD OpenUK, FAIM, FQAAS (resigned 7 June 2019; on leave from 5 February 2019)

Professor Nicholas Klomp, BAppSc(Biol) Curtin, BSc(Hons) Murdoch, AdvMgtProg Harvard, PhD Glasgow (commenced 4 February 2019)

PRESIDENT, ACADEMIC BOARDProfessor Bronwyn Fredericks, CertIVComCult Creative Connections, CertIVTrainAssess GladTrainServ, DipTeach(Sec) BCAE, BEd, MEd QUT, MEdSt UTas, PhD CQU (resigned 6 April 2018)

Associtate Professor Celeste Lawson, BA(Journ) USQ, GradCertTertEd CQU, GradDipProfComm(AppComm), MProfComm USQ, PhD CQU, MPRIA (term commenced 11 April 2018)

MEMBERS APPOINTED BY THE GOVERNOR-IN-COUNCILMr Graham Carpenter, GradDipMgt CIAE, MBA CQU, FCA, FAICD (term concluded 26 May 2018)

Ms Mary Carroll, MAICD (resigned 9 February 2018)

Emeritus Professor Robert Castle, MEc Syd, DLett(hon causa) UOW, Fellow UOWD

Mr Peter Corones AM, Companion CQU, MAICD

Dr Rochelle Macdonald, BSc(Hons) Tas, MEngMgt UTS, ProgLeadDev Harvard, PhD Curtin, GAICD (term commenced 27 May 2018)

Mr Ian McPhee AO PSM, BBus(Acct) CQU, BA(CompSt) Canberra, HonDUni CQU, FCPA, FCAANZ, FIPAA, GAICD (term commenced 27 May 2018)

Dr Robyn Minchinton, BAppSc(MLS) RMIT, GradDipScsComm CQU, PhD London

ADDITIONAL MEMBERS APPOINTED BY COUNCILMs Patrice Brown, CertSugarTech TAFE, CertMaritimeEnvMgt Lloyds, DipBus AICD, BAppSc(Chem) CQU, MEng(Civil) UNSW, MEIANZ

Mr Joel Buchholz, BEd(Sec)(Hons) CQU, GradCertCS PNUE, FRSA, MACEL, MACE

Ms Shelia Houston, BGenBus Wichita, GAICD (term commenced 27 June 2018)

Mr Mark Peters, BA Macq, LLB Sydney, MSc Oxf, FAICD, CMgr FIML, FAHRI

ELECTED MEMBERSDr Gerard Ilott, BBus(IS) UCQ, MBIT USQ, PhD CQU, FCPA, CA, MACS (term commenced 1 February 2018)

Mr Bruce Young, BAppSc(Math&Comp) UCQ, APESMA, ITPA

Mr Shirish Pandey, BBusAdmin Pokhara (term concluded 6 July 2018)

Mr Vindhya Raj Pokharel, BEng(MechEng) KU (term commenced 13 August 2018)


MEETINGS OF MEMBERSThe number of meetings of the Central Queensland University Council and each Council subcommittee held during the year ended 31 December 2018, and the number of meetings attended by each Council member are provided below.

A = number of meetings attended

B = number of meetings held (including special meetings) during the time the member held office or was a member of the committee

Committee abbreviations

Council Council (Governing Body)

SPPC Strategic Planning and Projects Committee

ARFC Audit, Risk and Finance Committee

AB Academic Board

CHAC Ceremonial and Honorary Awards Committee

CC Chancellor’s Committee

Committee Member Council SPPC ARFC AB CHAC CC

A B A B A B A B A B A B

John Abbott 7 7 3 6 3 6 3 3 2 2

Scott Bowman 7 7 6 6 5 6 2 3 1 2

Bronwyn Fredericks 0 1 0 1

Celeste Lawson 6 6 2 2 5 5 3 3

Graham Carpenter 3 3 2 2 2 2 1 1

Mary Carroll 0 0

Robert Castle 7 7 5 6

Peter Corones AM 7 7 6 6 2 2

Rochelle Macdonald 3 4

Ian McPhee AO PSM

4 4 2 2 3 4

Robyn Minchinton 7 7 5 6 5 6 2 2

Patrice Brown 6 7 0 4 0 1

Joel Buchholz 7 7

Shelia Houston 4 4 2 2

Mark Peters 6 7 6 6 6 6 2 2

Gerard Ilott 7 7 2 2

Bruce Young 6 7

Shirish Pandey 4 4

Vindhya Raj Pokharel 3 3


CENTRAL QUEENSLAND UNIVERSITYAND CONTROLLED ENTITIES

ABN 39 181 103 288

General Purpose Financial Reportfor the year ended 31 December 2018

ContentsIncome StatementsStatements of Comprehensive IncomeStatements of Financial PositionStatements of Changes in EquityStatements of Cash FlowsNotes to the financial statementsManagement Certificate

REVIEW OF OPERATIONSThe 2018 year ended in a stable financial position reporting a surplus of $0.269 million for the consolidated entity. The University ended the year with an operating surplus of $0.079 which was in excess of the forecasted position for the year. The University continues to drive conservative budgets, focussing on growth and strong cost control.

The University continued its investment in new courses, with the introduction of an aviation degree on the Cairns airport, digital media courses on the Cairns campus, online MBA, and echocardigraphy course on the Sydney campus. Continuation of the Gladstone campus consolidation, expansion to the Cairns campus, and major IT upgrades were commenced and/or completed during 2018.

International student numbers continued to grow strongly in higher education, whilst domestic student numbers showed only minor growth from 2017. The VET market remained relatively stagnant, reflecting the current national trends.

Expenditure increases related primarily to staffing costs. Enterprise Agreement increases and new staff appointments were necessary due to an increased load from international students.

Capital works for the year included:

» Upgrade of Rockhampton student residences » Continuation of the Gladstone

Campus Consolidation works » New chiropractic space in Brisbane » Mackay digital media » Backup data centre and hybrid cloud » Sydney echocardigraphy teaching space expansion » Cairns campus expansion.

The University’s focus remains on growth and supporting its communities.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEARThere are no matters which have arisen subsequent to year end that significantly impact upon the operations of the University as disclosed at 31 December 2018.

INSURANCE OF OFFICERSCentral Queensland University indemnifies to the extent permitted by law, each councillor, secretary, executive officer or individuals who formerly held one of those positions, against liability incurred in, or arising out of, the conduct of the business of the University or the discharge of the duties of the councillor, secretary or executive officer. The University as a general rule will support and hold harmless an employee who, while acting in good faith, incurs personal liability to others as a result of working for the University.

Central Queensland University has paid premiums for a Directors and Officers Liability Insurance & Employment Practices Liability Insurance Policy, with Zurich Australian Insurance Limited covering the insured person which by definition under the policy shall mean any chancellor, vice-chancellor, deputy vice-chancellor, provost, pro vice-chancellor, dean, risk manager, facility member, volunteer, committee or council member, coach, consultant, contractor, assistant trainer, teacher or academic, researcher, supervisor or student and any other person for whose acts the institution is legally responsible.

This report is made in accordance with a resolution of the members of the Council of Central Queensland University.

John AbbottChancellorRockhampton Date: 19 February 2019


FINANCIAL STATEMENTS


ABN 39 181 103 288

General Purpose Financial Reportfor the year ended 31 December 2018

ContentsIncome StatementsStatements of Comprehensive IncomeStatements of Financial PositionStatements of Changes in EquityStatements of Cash FlowsNotes to the financial statementsManagement Certificate



THE ABOVE INCOME STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

NOTES 2018 2017 2018 2017Restated* Restated*

$'000 $'000 $'000 $'000

INCOME FROM CONTINUING OPERATIONSAustralian Government financial assistance

Australian Government grants 3 132,316 133,185 132,316 133,185HELP - Australian Government payments 3 77,814 77,539 77,814 77,539

HECS-HELP - Student payments 4,491 4,442 4,491 4,442State and Local Government financial assistance 4 17,337 35,727 17,337 35,727Fees and charges 5 174,865 136,232 174,813 136,191Investment income 6 6,396 4,959 6,355 4,971Consultancy and contracts 7 14,724 11,693 14,724 11,693Other revenue 8 10,299 9,767 10,009 9,497

Total revenue from continuing operations 438,242 413,544 437,859 413,245Gain on assets acquired at less than fair value 228 - 228 -Other income 125 7,782 131 7,782

Total income from continuing operations 438,595 421,326 438,218 421,027

EXPENSES FROM CONTINUING OPERATIONSEmployee related expenses 9 262,387 240,038 261,476 239,430Depreciation and amortisation 17,18 23,655 21,443 23,654 21,443Repairs and maintenance 10 12,252 13,278 12,251 13,278Finance costs 62 90 65 90Management and other fees 11 40,254 37,903 41,194 38,388Minimum lease payments on operating leases 20,771 21,111 20,705 21,067Other expenses 12 78,950 70,681 78,794 70,802

Total expenses from continuing operations 438,331 404,544 438,139 404,498Share of profit / (loss) on equity accounted investments (net of tax) 11 (6) - -

Net result from continuing operations before income tax 275 16,776 79 16,529Income tax benefit / (expense) (6) (71) - -

Net result from continuing operations after income tax 269 16,705 79 16,529

Net result attributable to members of Central Queensland University from continuing operations 269 16,705 79 16,529

*Refer to note 1(H) for details regarding the restatement as a result of error.

INCOME STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

CONSOLIDATED PARENT



THE ABOVE INCOME STATEMENTS SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.


$'000 $'000 $'000 $'000


Australian Government grants 3 132,316 133,185 132,316 133,185HELP - Australian Government payments 3 77,814 77,539 77,814 77,539

HECS-HELP - Student payments 4,491 4,442 4,491 4,442State and Local Government financial assistance 4 17,337 35,727 17,337 35,727Fees and charges 5 174,865 136,232 174,813 136,191Investment income 6 6,396 4,959 6,355 4,971Consultancy and contracts 7 14,724 11,693 14,724 11,693Other revenue 8 10,299 9,767 10,009 9,497

Total revenue from continuing operations 438,242 413,544 437,859 413,245Gain on assets acquired at less than fair value 228 - 228 -Other income 125 7,782 131 7,782

Total income from continuing operations 438,595 421,326 438,218 421,027

EXPENSES FROM CONTINUING OPERATIONSEmployee related expenses 9 262,387 240,038 261,476 239,430Depreciation and amortisation 17,18 23,655 21,443 23,654 21,443Repairs and maintenance 10 12,252 13,278 12,251 13,278Finance costs 62 90 65 90Management and other fees 11 40,254 37,903 41,194 38,388Minimum lease payments on operating leases 20,771 21,111 20,705 21,067Other expenses 12 78,950 70,681 78,794 70,802

Total expenses from continuing operations 438,331 404,544 438,139 404,498Share of profit / (loss) on equity accounted investments (net of tax) 11 (6) - -

Net result from continuing operations before income tax 275 16,776 79 16,529Income tax benefit / (expense) (6) (71) - -


Net result attributable to members of Central Queensland University from continuing operations 269 16,705 79 16,529


INCOME STATEMENTS


CONSOLIDATED PARENT


THE ABOVE STATEMENTS OF COMPREHENSIVE INCOME SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.


$'000 $'000 $'000 $'000


Other comprehensive income

Items that may be reclassified to profit or lossGain / (loss) on value of available for sale financial assets 22(A) - 5,729 - 5,947

- 5,729 - 5,947

Items that will not be reclassified to profit or lossGain / (loss) on revaluation of equity instruments at FVOCI^ 22(A) 7,536 - 7,726 -Gain / (loss) on revaluation of land and buildings 22(A) (22,164) 32,276 (22,164) 32,276Gain / (loss) on revaluation of infrastructure 22(A) 627 2,583 627 2,583Gain / (loss) on revaluation of artwork and collections 22(A) 334 - 334 -Gain / (loss) on currency translation surplus 22(A) 16 1 - -

(13,651) 34,860 (13,477) 34,859Total other comprehensive income (13,651) 40,589 (13,477) 40,806Total comprehensive income attributable to members of Central Queensland University (13,382) 57,294 (13,398) 57,335

*Refer to note 1(H) for details regarding the restatement as a result of error.^Fair Value through Other Comprehensive Income

CONSOLIDATED PARENT

STATEMENTS OF COMPREHENSIVE INCOME



CENTRAL QUEENSLAND UNIVERSITY AND CONTROLLED ENTITIES

THE ABOVE STATEMENTS OF FINANCIAL POSITION SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

NOTES 2018 2017 2018 2017*Restated *Restated

$'000 $'000 $'000 $'000

CURRENT ASSETSCash and cash equivalents 13 129,496 130,341 127,497 128,412Receivables 14 24,684 24,654 24,586 24,644Inventories 1,025 1,097 1,025 1,097Other non-financial assets 1,060 588 1,062 580

Total current assets 156,265 156,680 154,170 154,733

NON-CURRENT ASSETSOther financial assets 15 43,846 30,728 44,947 31,699Other non-financial assets 99 88 - -Investment properties 16 2,156 2,085 2,156 2,085Property, plant and equipment 17 563,267 582,674 563,256 582,662Intangible assets 18 19,224 14,663 19,224 14,663Current tax assets 23 - - -Deferred tax assets 44 47 - -

Total non-current assets 628,659 630,285 629,583 631,109TOTAL ASSETS 784,924 786,965 783,752 785,842

CURRENT LIABILITIESTrade and other payables 19 24,572 22,507 24,424 22,385Provisions 20 46,235 48,256 46,179 48,196Current tax liabilities - 22 - -Other liabilities 21 34,986 32,154 34,926 32,112

Total current liabilities 105,793 102,939 105,529 102,693

NON-CURRENT LIABILITIESProvisions 20 12,537 10,550 12,514 10,542Other liabilities 21 14,140 13,222 14,140 13,222

Total non-current liabilities 26,677 23,772 26,654 23,764TOTAL LIABILITIES 132,470 126,711 132,183 126,457

NET ASSETS 652,454 660,254 651,569 659,385

EQUITYParent entity interest

Reserves 22(A) 243,541 259,473 244,591 260,349Retained surplus 22(B) 408,913 400,781 406,978 399,036

TOTAL EQUITY 652,454 660,254 651,569 659,385


STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018

CONSOLIDATED PARENT


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257,

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THE ABOVE STATEMENTS OF CASH FLOWS SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

NOTES 2018 2017 2018 2017$'000 $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESAustralian Government grants 205,434 206,831 205,434 206,831State and local government grants received 17,710 35,725 17,710 35,725HECS-HELP - Student payments 4,578 4,674 4,578 4,674OS-HELP (net) 33.7 53 472 53 472Receipts from student fees and other customers 201,902 176,107 201,212 174,988Dividends received 3,004 1,143 3,003 1,143Interest received 3,862 3,519 3,820 3,481Payments to suppliers and employees (inclusive of GST) (419,171) (390,704) (418,639) (389,897)Interest and other costs of finance (65) (90) (65) (90)GST recovered / (paid) 11,803 10,114 11,826 10,190Income taxes paid (48) (89) - -

Net cash provided by / (used in) operating activities 30 29,062 47,702 28,932 47,517

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of property, plant and equipment 295 - 295 -Proceeds from sale of investment property - 613 - 613Proceeds from sale of financial assets - 50 - 50Payments for property, plant and equipment (21,827) (28,926) (21,827) (28,914)Payments for investment property (21) - (21) -Payments for financial assets (1,010) (588) (951) (589)Payments for intangibles (7,366) (4,951) (7,366) (4,951)

Net cash provided by / (used in) investing activities (29,929) (33,802) (29,870) (33,791)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from / (repayments of) borrowings - (3,000) - (3,000)Payments for shares (12) 6 -

Net cash provided by / (used in) financing activities (12) (2,994) - (3,000)

Net increase / (decrease) in cash and cash equivalents (879) 10,906 (938) 10,726Cash and cash equivalents at the beginning of the financial year 130,341 119,389 128,412 117,640Effects of exchange rate changes on cash and cash equivalents 33 46 23 46Cash and cash equivalents at the end of the period 13 129,496 130,341 127,497 128,412

STATEMENTS OF CASH FLOWS


CONSOLIDATED PARENT


NOTES TO THE FINANCIAL STATEMENTS


OBJECTIVES AND PRINCIPAL ACTIVITIES

The principal activities of the Group are listed in the Council Members’ Report.

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements is set out below. These policies have been consistently applied for all years reported unless otherwise stated. The financial statements include separate statements for Central Queensland University as the parent entity and the consolidated entity consisting of Central Queensland University and its subsidiaries (‘the Group’).

The principal address of Central Queensland University is Bruce Highway, North Rockhampton, Queensland.

(A) Basis of preparation

Central Queensland University is a statutory body established under the Central Queensland University Act 1998, and domiciled in Australia.

The annual financial statements represent the audited general purpose financial statements of Central Queensland University. They havebeen prepared on an accrual basis and comply with the Australian Accounting Standards.

Central Queensland University applies Tier 1 reporting requirements.

Additionally, the statements have been prepared in accordance with the following statutory requirements:• Higher Education Support Act 2003 (Financial Statement Guidelines) (Cwlth)• Central Queensland University Act 1998 (Qld)• Financial and Performance Management Standard 2009 made under the Financial Accountability Act 2009 (QLD).

Central Queensland University is a not-for-profit entity and these statements have been prepared on that basis. Some of the Australian Accounting Standards requirements for not-for-profit entities are inconsistent with the IFRS requirements.

Date of authorisation for issue

The financial statements were authorised for issue by the Council members of Central Queensland University on 19 February 2019.

Historical cost convention

These financial statements have been prepared under the historical cost convention, except for debt and equity financial assets that have been measured at fair value either through other comprehensive income or profit and loss, certain classes of property, plant and equipment and investment properties.

Critical accounting estimates

The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The estimatesand underlying assumptions are reviewed on an ongoing basis. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed below and are outlined in the following financial statement notes:

• Note 15: Other financial assets• Note 17: Property, plant and equipment• Note 20: Provisions• Note 25: Contingencies

(B) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is the Group’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

If gains or losses on non-monetary items are recognised in other comprehensive income, translation gains or losses are also recognised in other comprehensive income. Similarly, if gains or losses on non-monetary items are recognised in profit or loss, translation gains or losses are also recognised in profit or loss.





OBJECTIVES AND PRINCIPAL ACTIVITIES

The principal activities of the Group are listed in the Council Members’ Report.

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements is set out below. These policies have been consistently applied for all years reported unless otherwise stated. The financial statements include separate statements for Central Queensland University as the parent entity and the consolidated entity consisting of Central Queensland University and its subsidiaries (‘the Group’).

The principal address of Central Queensland University is Bruce Highway, North Rockhampton, Queensland.

(A) Basis of preparation

Central Queensland University is a statutory body established under the Central Queensland University Act 1998, and domiciled in Australia.

The annual financial statements represent the audited general purpose financial statements of Central Queensland University. They havebeen prepared on an accrual basis and comply with the Australian Accounting Standards.

Central Queensland University applies Tier 1 reporting requirements.

Additionally, the statements have been prepared in accordance with the following statutory requirements:• Higher Education Support Act 2003 (Financial Statement Guidelines) (Cwlth)• Central Queensland University Act 1998 (Qld)• Financial and Performance Management Standard 2009 made under the Financial Accountability Act 2009 (QLD).

Central Queensland University is a not-for-profit entity and these statements have been prepared on that basis. Some of the Australian Accounting Standards requirements for not-for-profit entities are inconsistent with the IFRS requirements.

Date of authorisation for issue

The financial statements were authorised for issue by the Council members of Central Queensland University on 19 February 2019.

Historical cost convention

These financial statements have been prepared under the historical cost convention, except for debt and equity financial assets that have been measured at fair value either through other comprehensive income or profit and loss, certain classes of property, plant and equipment and investment properties.

Critical accounting estimates

The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The estimatesand underlying assumptions are reviewed on an ongoing basis. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed below and are outlined in the following financial statement notes:

• Note 15: Other financial assets• Note 17: Property, plant and equipment• Note 20: Provisions• Note 25: Contingencies

(B) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is the Group’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

If gains or losses on non-monetary items are recognised in other comprehensive income, translation gains or losses are also recognised in other comprehensive income. Similarly, if gains or losses on non-monetary items are recognised in profit or loss, translation gains or losses are also recognised in profit or loss.





NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(B) Foreign currency translation (cont.)

(iii) Group companies

The results and financial position of all the Group’s entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the end of the reporting period,

• income and expenses for each income statement are translated at average exchange rates (unless this is not a reasonableapproximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and

• all resulting exchange differences are recognised as separate components of equity.

(C) Acquisition of assets

The acquisition method of accounting is used for all acquisitions of assets regardless of whether equity instruments or other assets areacquired. Cost is measured as the fair value of the assets given or liabilities incurred or assumed at the date of exchange plus incidentalcosts directly attributable to the acquisition.

Costs incurred on assets subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of theoriginally assessed performance of the asset will flow to the consolidated entity in future years, otherwise, the costs are expensed as incurred.

Acquisition of assets with a cost or other value equal to or in excess of the following thresholds are recognised for financial reportingpurposes in the year of acquisition:

Buildings $10,000 Land $1Infrastructure $10,000 Shares $1Plant and equipment $5,000 Other (including artworks and heritage) $1Computer software $100,000

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

(D) Taxation

Central Queensland University is exempt from Income tax by virtue of Division 50 of the Income Tax Assessment Act 1997 (ITAA).

Central Queensland University’s controlled entities, CQU Travel Centre Pty Ltd, Australian International Campuses Pty Ltd, C ManagementServices Pty Ltd, and DataMuster Pty Ltd are subject to income tax and these companies apply AASB 112 Income Taxes.

CQU Development Pte Ltd, a controlled entity of Central Queensland University, based in Singapore is subject to income tax underSingapore tax law.

The income tax expense or income for the period is the tax payable/receivable on the current period’s taxable income. This is based on thenotional income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the taxbases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recoveredor liabilities are settled. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences tomeasure the deferred tax asset or liability.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxableamounts will be available to utilise those temporary differences and losses.

The University and controlled entities are however, subject to Payroll Tax, Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or aspart of the item of expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows arepresented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.





(E) Rounding of amounts

Amounts in the financial statements have been rounded off to the nearest thousand dollars.

(F) Comparative amounts

Where necessary, comparative information has been reclassified to enhance comparability in respect of changes in presentation adopted inthe current year.

(G) Operating leases and rental expenses

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis, over the period of the lease.

(H) Correction of prior period errors

In 2018, the consolidated entity identified an under estimation of agents’ commission and bonuses payable for the 2017 reporting year. The2017 expense and current liabilties were understated. Accordingly, the 2017 comparatives have been adjusted to reflect changes in CurrentLiabilities: Trade and other payables (increase of $4.809m); and Management and other fees (increase of $4.809m) and associated retained earnings (decrease of $4.809m).

No third statement of financial position has been presented as required by AASB 101 Presentation of Financial Statements as the priorperiod error was not material to the opening balances of 2017.

Restatement of Statements of financial positionCONSOLIDATED PARENT

2017Previously

statedCorrection 2017

Restated2017

Previously stated

Correction 2017Restated

$'000 $'000 $'000 $'000 $'000 $'000

CURRENT LIABILITIES

Trade and other payables 17,698 4,809 22,507 17,576 4,809 22,385Total current liabilities 98,130 4,809 102,939 97,844 4,809 102,653

EQUITY

Retained surplus 405,590 (4,809) 400,781 403,845 (4,809) 399,036TOTAL EQUITY 665,063 (4,809) 660,254 664,194 (4,809) 659,385

Restatement of Income StatementsCONSOLIDATED PARENT

2017Previously


Restated2017

Previously stated


$'000 $'000 $'000 $'000 $'000 $'000

EXPENSES FROM CONTINUING OPERATIONS

Management and other fees 33,094 4,809 37,903 33,579 4,809 38,388Total expenses from continuing operations 399,735 4,809 404,544 399,689 4,809 404,498

Net result attributable to members of Central Queensland University from continuing operations 21,514 4,809 16,705 21,338 4,809 16,529






(B) Foreign currency translation (cont.)

(iii) Group companies

The results and financial position of all the Group’s entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the end of the reporting period,

• income and expenses for each income statement are translated at average exchange rates (unless this is not a reasonableapproximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and

• all resulting exchange differences are recognised as separate components of equity.

(C) Acquisition of assets

The acquisition method of accounting is used for all acquisitions of assets regardless of whether equity instruments or other assets areacquired. Cost is measured as the fair value of the assets given or liabilities incurred or assumed at the date of exchange plus incidentalcosts directly attributable to the acquisition.

Costs incurred on assets subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of theoriginally assessed performance of the asset will flow to the consolidated entity in future years, otherwise, the costs are expensed as incurred.

Acquisition of assets with a cost or other value equal to or in excess of the following thresholds are recognised for financial reportingpurposes in the year of acquisition:

Buildings $10,000 Land $1Infrastructure $10,000 Shares $1Plant and equipment $5,000 Other (including artworks and heritage) $1Computer software $100,000

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

(D) Taxation

Central Queensland University is exempt from Income tax by virtue of Division 50 of the Income Tax Assessment Act 1997 (ITAA).

Central Queensland University’s controlled entities, CQU Travel Centre Pty Ltd, Australian International Campuses Pty Ltd, C ManagementServices Pty Ltd, and DataMuster Pty Ltd are subject to income tax and these companies apply AASB 112 Income Taxes.

CQU Development Pte Ltd, a controlled entity of Central Queensland University, based in Singapore is subject to income tax underSingapore tax law.

The income tax expense or income for the period is the tax payable/receivable on the current period’s taxable income. This is based on thenotional income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the taxbases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recoveredor liabilities are settled. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences tomeasure the deferred tax asset or liability.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxableamounts will be available to utilise those temporary differences and losses.

The University and controlled entities are however, subject to Payroll Tax, Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or aspart of the item of expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows arepresented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.





(E) Rounding of amounts

Amounts in the financial statements have been rounded off to the nearest thousand dollars.

(F) Comparative amounts

Where necessary, comparative information has been reclassified to enhance comparability in respect of changes in presentation adopted inthe current year.

(G) Operating leases and rental expenses

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis, over the period of the lease.

(H) Correction of prior period errors

In 2018, the consolidated entity identified an under estimation of agents’ commission and bonuses payable for the 2017 reporting year. The2017 expense and current liabilties were understated. Accordingly, the 2017 comparatives have been adjusted to reflect changes in CurrentLiabilities: Trade and other payables (increase of $4.809m); and Management and other fees (increase of $4.809m) and associated retained earnings (decrease of $4.809m).

No third statement of financial position has been presented as required by AASB 101 Presentation of Financial Statements as the priorperiod error was not material to the opening balances of 2017.

Restatement of Statements of financial positionCONSOLIDATED PARENT

2017Previously


Restated2017

Previously stated


$'000 $'000 $'000 $'000 $'000 $'000

CURRENT LIABILITIES

Trade and other payables 17,698 4,809 22,507 17,576 4,809 22,385Total current liabilities 98,130 4,809 102,939 97,844 4,809 102,653

EQUITY

Retained surplus 405,590 (4,809) 400,781 403,845 (4,809) 399,036TOTAL EQUITY 665,063 (4,809) 660,254 664,194 (4,809) 659,385

Restatement of Income StatementsCONSOLIDATED PARENT

2017Previously


Restated2017

Previously stated


$'000 $'000 $'000 $'000 $'000 $'000

EXPENSES FROM CONTINUING OPERATIONS

Management and other fees 33,094 4,809 37,903 33,579 4,809 38,388Total expenses from continuing operations 399,735 4,809 404,544 399,689 4,809 404,498

Net result attributable to members of Central Queensland University from continuing operations 21,514 4,809 16,705 21,338 4,809 16,529






(I) Initial application of Australian Accounting Standards

Adoption of AASB 9 is made in accordance with the transitional provisions. The nature and effect of the changes as a result of adoption ofthis new accounting standard is described below.

AASB 9 Financial InstrumentsAASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual reporting periodsbeginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification andmeasurement; impairment; and hedge accounting.

The Group has applied AASB 9 retrospectively, with an initial application date of 1 January 2018. In accordance with the transitionalprovisions in AASB 9 (7.2.15) and (7.2.26), the Group has not restated the comparative information, which continues to be reported underAASB 139. Differences arising from the adoption of AASB 9 have been recognised directly in retained earnings and other components ofequity.

The adoption of AASB 9 Financial Instruments from 1 January 2018 resulted in changes in accounting policies (notes 14 and 15) andadjustments to the amounts recognised in the financial statements. The nature and effect of the changes as a result of adoption of AASB 9are described as follows:

Impact on the statement of financial position (increase/(decrease)):

Consolidated Parent entity Ref

adjustments 1 Jan 2018 1 Jan 2018

$’000 $’000

AssetsTrade receivables (i)(a) 32 32Non-listed equity investments (AARnet) (ii)(b) 5,550 5,550

Total assets 5,582 5.582

EquityRetained earnings

Trade receivables (i)(a) 32 32 Debt instrument (QIC Growth Fund) (ii)(c) 7,831 7,831

Total retained earnings 7,863 7,863

ReservesNon-listed equity investments (AARnet) (ii)(b) 5,550 5,550

Debt instrument (QIC Growth Fund) (ii)(c) (7,831) (7,831)Total reserves (2,281) (2,281)

Total adjustments on equity 5,582 5,582

Under AASB 9, debt instruments are subsequently measured at fair value through profit or loss (FVTPL), amortised cost, or fair value through other comprehensive income (FVOCI). The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding.

The assessment of the Group’s business model was made as of the date of initial application, 1 January 2018.

The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets.

(i) Impairment

(a) Trade receivablesTrade receivables classified as loans and receivables as at 31 December 2017 are held to collect contractual cash flows and give riseto cash flows representing solely payments of principal and interest. These are classified and measured as debt instruments atamortised cost beginning 1 January 2018.

The adoption of AASB 9 has fundamentally changed the Group’s accounting for impairment losses for financial assets by replacingAASB 139’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. AASB 9 requires the Group torecognise an allowance for ECLs for all debt instruments not held at FVTPL and contract assets. The Group has adopted the simplified approach under AASB 9 as a practical expedient to measure the provision for impairment.





(I) Initial application of Australian Accounting Standards (cont.)

Upon adoption of AASB 9, the Group recognised a reduction in impairment on the Group’s trade receivables of $0.032m, which resulted in an increase in retained earnings of $0.032m as at 1 January 2018. Impairment losses do not reduce the carrying amount of debt instruments at FVOCI in the statement of financial position, which remain at fair value.

Set out below is the reconciliation of the ending impairment allowances in accordance with AASB 139 to the opening loss allowances determined in accordance with AASB 9:

Allowance for impairment under AASB 139 as at 31

December 2017Remeasurement ECL under AASB 9 as at

1 January 2018

$'000 $'000 $'000Impaired receivables

Trade receivables 104 7 111Student debtors 541 (39) 502

645 (32) 613

Opening retained earningsRetained surplus 645 (32) 613

645 (32) 613

(ii) Classification and measurement

The following are the changes in the classification of the Group’s financial assets:

(b) Non-listed equity investments in AARnet Pty Ltd classified as Available-for-sale (AFS) financial assets as at 31 December 2017 areclassified and measured as equity instruments designated at FVOCI beginning 1 January 2018. The Group elected to classifyirrevocably its AARnet investment under this category at the date of initial application as this investment is not held for tradingpurposes. As a result of the change in classification of this investment, fair value at date of initial recognition has increased assetsand opening retained earnings by $5.550m.

As a result of the change in classification of the Group’s listed equity investments, the AFS reserve was reclassified to the fair valuereserve through OCI.

(c) The University holds investments in QIC Unit Trust. These investments were classified as AFS financial assets under AASB 139 asat 31 December 2017 and were recorded at FVOCI. From 1 January 2018, these investments were re-classified and measured asdebt instruments designated at FVTPL. As a result of the change in classification, the AFS reserve for this investment of $7.831mpreviously presented under OCI, was reclassified to retained earnings as at 1 January 2018.

(iii) Reclassifications of financial instruments on adoption of AASB 9

On the date of initial application, 1 January 2018, the financial instruments of the Group were as follows, with any reclassifications noted.

*The change in carrying amount is a result of a reduction in impairment allowance as discussed above.

AASB 9 measurement category

Fair value through profit or loss Amortised cost Fair value through

OCI

$’000 $’000 $’000 $’000AASB 139 measurement categoryLoans and receivablesTrade receivables* 24,684 – 24,716 –

Available for saleShares in listed and unlisted companies 16,884 – – 22,434Debt instrument (QIC Growth Fund) 13,884 13,884 – –






(J) New accounting standards and interpretations

The following standards have been issued but are not mandatory for 31 December 2018 reporting periods. The Group has elected not toearly adopt any of these standards. The University’s assessment of the impact of these new standards and interpretations is set out below:

Standard Title Issue date Applies to periods after

AASB 15 Revenue from contracts with customers December 2014 1 January 2019

AASB 1058 Income of Not-for-Profit entities December 2016 1 January 2019

AASB 16 Leases February 2016 1 January 2019

(i) AASB 15 Revenue from Contracts with Customers

This standard will first apply to the University financial statements for the year ended 31 December 2019.

When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principle-based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers.

The core principle of the Standard is that an entity will recognise revenue to represent the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services.

To achieve this objective, AASB 15 provides the following five step process:

• identify the contract(s) with the customer

• identify the performance obligations in the contract(s)

• determine the transaction price

• allocate the transaction price to the performance obligations in the contract(s), and

• recognise revenue when (or as) the performance obligations are satisfied.

The University has collaborated with six other Queensland universities and engaged Nexia Australia Advisory Pty Ltd for an ongoing assessment of this standard and AASB 16: Leases on their impact on the financial statements.

The standard permits either a full retrospective or a modified retrospective approach for the adoption. The University has elected to apply the modified retrospective approach and will not restate comparative financial information.






(J) New accounting standards and interpretations

The following standards have been issued but are not mandatory for 31 December 2018 reporting periods. The Group has elected not toearly adopt any of these standards. The University’s assessment of the impact of these new standards and interpretations is set out below:

Standard Title Issue date Applies to periods after

AASB 15 Revenue from contracts with customers December 2014 1 January 2019

AASB 1058 Income of Not-for-Profit entities December 2016 1 January 2019

AASB 16 Leases February 2016 1 January 2019

(i) AASB 15 Revenue from Contracts with Customers


When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principle-based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers.

The core principle of the Standard is that an entity will recognise revenue to represent the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services.

To achieve this objective, AASB 15 provides the following five step process:

• identify the contract(s) with the customer

• identify the performance obligations in the contract(s)

• determine the transaction price

• allocate the transaction price to the performance obligations in the contract(s), and

• recognise revenue when (or as) the performance obligations are satisfied.

The University has collaborated with six other Queensland universities and engaged Nexia Australia Advisory Pty Ltd for an ongoing assessment of this standard and AASB 16: Leases on their impact on the financial statements.

The standard permits either a full retrospective or a modified retrospective approach for the adoption. The University has elected to apply the modified retrospective approach and will not restate comparative financial information.





(J) New accounting standards and interpretations (cont.)

(i) AASB 15 Revenue from Contracts with Customers (cont.)

Impact:

The following sources of income will be affected and the impacts of applying the new standard on the Group’s financial statements on a modified retrospective approach are estimated as follows:

Item AASB 15New standard

Approximate $ impact on 1 January 2019

Commonwealth Grants Scheme Revenue recognised over time as the student receives the tuition services.

Deferred revenue will increase by approximately $3.112m; and Retained earnings will decrease by $3.112m.

Higher Education Loan programs

Revenue is recognised over time as the University provides the tuition services to the student.

Deferred revenue will increase by approximately $3.651m; and Retained earnings will decrease by $3.651m.

Other Australian Government grants

Revenue is recognised over time as the Universityprovides the services are provided.

Deferred revenue will increase by approximately $1.014m, and Retained earnings will decrease by $1.014mLiabilities to third parties will increase by approximately $0.140m; and Retained earnings will decrease by $0.140m

Research Grants Revenue is recognised over time as the research activities are performed.

Deferred research revenue will increase by approximately $3.501m; and Retained earnings will decrease by $3.501m

Scholarship income Revenue is recognised when the University satisfies the performance obligation by transferring a service to the customer.

Scholarship liability will increase by $0.473m; and Retained earnings will decrease by $0.473m.Deferred revenue will increase by $0.072m, and Retained earnings will decrease by $0.072m.

Contracts and Other Revenue Revenue is recognised when the University satisfies the performance obligation by transferring a service to the customer.

Deferred revenue will increase by $0.240m, and Retained earnings will decrease by $0.240m

Presentation and disclosure requirements:

The presentation and disclosure requirements in AASB 15 are more detailed than under current Australian Accounting Standards. Many of the disclosure requirements in AASB 15 are new and the Group has assessed there will be an increase in the disclosures required in the Group's financial statements. In particular, the Group expects that the notes to the financial statements will be expanded because of the disclosure of estimates and judgements that will be made when assessing the contracts where the Group has concluded that there is a significant financing component.

(ii) AASB 1058 Income of Not-for-Profit Entities


AASB 1058 supersedes all the income recognition requirements relating to private sector Not-for-Profit entities, and the majority of income recognition requirements relating to public sector not-for-profit entities, previously in AASB 1004 Contributions. When effective, this standard will defer income recognition in some circumstances for not-for-profit entities, particularly where there is a performance obligation or any other liability. In addition, certain components in an arrangement, such as donations, may be separated from other types of income andrecognised immediately. The standard also expands the circumstances in which not-for-profit entities are required to recognise income for goods and services received for consideration that is significantly less than the fair value of the asset principally to enable the entity to further its objectives, including for example, peppercorn leases.

Impact:This standard operates in conjunction with AASB 15 Revenue from Contracts with Customers. AASB 1058 will only apply where AASB 15 does not apply. Both standards supersede AASB 1004 Contributions. The main impact on adopting this standard is reflected above with the adoption of AASB 15. The Group currently has two contracts which are considered to be below-market leases (ie peppercorn leases). The AASB Board has issued an amendment to provide a temporary option for not-for-profit entities to measure a class of right-of-use (ROU) assets on initial recognition at cost. The Group’s below-market leases have not been measured at fair value and will not be recognised as a ROU asset on 1 January 2019.







(iii) AASB 16 Leases

This standard will first apply to the University financial statements for the year ended 31 December 2019. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 Leases will replace existing accounting requirements for leases under AASB 117 Leases. Under current requirements, leases are classified based on their nature as either finance leases, which are recognised on the consolidated statement of financial position, or operating leases, which are not recognised on the consolidated statement of financial position.

Under AASB 16 Leases, the Group’s accounting for operating leases as a lessee will result in the recognition of a right-of-use (ROU) asset and an associated lease liability on the consolidated statement of financial position. The lease liability represents the present value of future lease payments, with the exception of short-term and low value leases. An interest expense will be recognised on the lease liabilities and a depreciation charge will be recognised for the ROU assets. There will also be additional disclosure requirements under the new standard to enable users of the financial statement to understand the effects of transactions where an entity acquires an asset for consideration that is significantly less than fair value principally to enable the entity to further its objectives on the financial position, financial performance and cash flows of the entity. The Group’s accounting for leases as a lessor remains largely unchanged under AASB 16.

TransitionThe Group will initially apply AASB 16 on 1 January 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 January 2019, with no restatement of comparative information.

When applying the modified retrospective approach to leases previously classified as operating leases under AASB 117, the Group can elect, on a lease-by-lease basis, whether to apply a number of practical expedients on transition. The Group is assessing the potential impact of using these practical expedients.

Estimated impact of the adoption of AASB 16 Leases as at 31 December 2018

The actual impact of applying AASB 16 on the financial statements in the period of initial application will depend on future economic conditions, including the Group’s borrowing rate as at 1 January 2019, the composition of the Group’s lease portfolio, the extent to which the Group chooses to use practical expedients and recognition exemptions, and the new accounting policies which are subject to change until the Group presents its first financial statements that include the date of intial application. The Group is not required to make any adjustments for leases in which it is a lessor except where it is an intermediate lessor in a sub-lease.

The Group estimate the impact that AASB 16 would have had on its consolidated financial statements on 31 December 2018. These estimates have not yet been finalised.

Estimated impact on Consolidated Statement of Financial Position as at 31 December 2018

New lease liabilities approximately $276m New right-of-use assets approximately $280m

The net effect of the new lease liabilities and right-of-use assets and the reversal of the existing straight-line lease liability, lease incentives, provision for make good and make good assets is approximately $18m and will be recognised as an increase in retained earnings as at 1 January 2019.

Non-lease components of property leases

Under AASB 16, payments for non-lease components are excluded from the lease liability unless an election is made to combine lease and non-lease components. A material portion of the Group’s leased property portfolio has non-lease components, known as property outgoings, embedded within their respective contract.

The Group will not elect to combine lease and non-lease components for its property leases. Accordingly, the calculated lease liability for property leases with an embedded non-lease component, will exclude an estimate of the standalone price of the non-lease component.

All other Australian Accounting Standards and interpretations with future effective dates are either not applicable to the Group’s activities, or have no material impact.


NOTE 2. DISAGGREGATED INFORMATION (dual sector and operations outside Australia)

(A) INDUSTRY - PARENT ENTITYINCOME STATEMENT

HIGHER ED-UCATION VET TOTAL

PARENTHIGHER ED-UCATION VET TOTAL

PARENT*Restated *Restated

NOTES 2018 2018 2018 2017 2017 2017$'000 $'000 $'000 $'000 $'000 $'000


Australian Government grants 3 132,316 - 132,316 133,185 - 133,185HELP - Australian Government payments 3 75,440 2,373 77,814 74,989 2,550 77,539

HECS-HELP - Student payments 4,491 - 4,491 4,442 - 4,442State and Local Government financial assistance 4 233 17,103 17,337 265 35,462 35,727Fees and charges 5 158,165 16,648 174,813 121,282 14,909 136,191Investment income 6 6,355 - 6,355 4,971 - 4,971Consultancy and contracts 7 14,724 - 14,724 11,693 - 11,693Other revenue 8 9,441 568 10,009 9,107 390 9,497

Total revenue from continuing operations 401,166 36,693 437,859 359,934 53,311 413,245Gain on assets acquired at less than fair value 178 50 228Other income 131 - 131 7,782 - 7,782

Total income from continuing operations 401,475 36,743 438,218 367,716 53,311 421,027

EXPENSES FROM CONTINUING OPERATIONSEmployee related expenses 9 225,758 35,718 261,476 205,671 33,759 239,430Depreciation and amortisation 17,18 20,013 3,641 23,654 18,014 3,429 21,443Repairs and maintenance 10 9,443 2,808 12,251 10,446 2,832 13,278Finance costs 65 - 65 90 - 90Management and other fees 11 39,490 1,704 41,194 36,949 1,439 38,388Minimum lease payments on operating leases 20,687 18 20,705 21,017 50 21,067Other expenses 12 71,455 7,339 78,794 63,558 7,244 70,802

Total expenses from continuing operations 386,910 51,229 438,139 355,745 48,753 404,498Net result from continuing operations 14,565 (14,486) 79 11,971 4,558 16,529

STATEMENT OF COMPREHENSIVE INCOMEItems that may be reclassified to profit or loss

Gain / (loss) on value of available for sale financial assets 22(A)

- - - 5,947 - 5,947- - - 5,947 - 5,947

Items that will not be reclassified to profit or lossGain / (loss) on revaluation of equity instruments at FVOCI 22(A) 7,726 - 7,726 - - -Gain / (loss) on revaluation of land and buildings 22(A) (15,721) (6,443) (22,164) 15,945 16,331 32,276Gain / (loss) on revaluation of infrastructure 22(A) 806 (179) 627 1,621 962 2,583Gain / (loss) on revaluation of artwork and collections 22(A) 334 - 334 - - -

(6,855) (6,622) (13,477) 17,566 17,293 34,859Total other comprehensive income (6,855) (6,622) (13,477) 23,513 17,293 40,806Total comprehensive income 7,710 (21,108) (13,398) 35,484 21,851 57,335










(iii) AASB 16 Leases

This standard will first apply to the University financial statements for the year ended 31 December 2019. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 Leases will replace existing accounting requirements for leases under AASB 117 Leases. Under current requirements, leases are classified based on their nature as either finance leases, which are recognised on the consolidated statement of financial position, or operating leases, which are not recognised on the consolidated statement of financial position.

Under AASB 16 Leases, the Group’s accounting for operating leases as a lessee will result in the recognition of a right-of-use (ROU) asset and an associated lease liability on the consolidated statement of financial position. The lease liability represents the present value of future lease payments, with the exception of short-term and low value leases. An interest expense will be recognised on the lease liabilities and a depreciation charge will be recognised for the ROU assets. There will also be additional disclosure requirements under the new standard to enable users of the financial statement to understand the effects of transactions where an entity acquires an asset for consideration that is significantly less than fair value principally to enable the entity to further its objectives on the financial position, financial performance and cash flows of the entity. The Group’s accounting for leases as a lessor remains largely unchanged under AASB 16.

TransitionThe Group will initially apply AASB 16 on 1 January 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 January 2019, with no restatement of comparative information.

When applying the modified retrospective approach to leases previously classified as operating leases under AASB 117, the Group can elect, on a lease-by-lease basis, whether to apply a number of practical expedients on transition. The Group is assessing the potential impact of using these practical expedients.

Estimated impact of the adoption of AASB 16 Leases as at 31 December 2018

The actual impact of applying AASB 16 on the financial statements in the period of initial application will depend on future economic conditions, including the Group’s borrowing rate as at 1 January 2019, the composition of the Group’s lease portfolio, the extent to which the Group chooses to use practical expedients and recognition exemptions, and the new accounting policies which are subject to change until the Group presents its first financial statements that include the date of intial application. The Group is not required to make any adjustments for leases in which it is a lessor except where it is an intermediate lessor in a sub-lease.

The Group estimate the impact that AASB 16 would have had on its consolidated financial statements on 31 December 2018. These estimates have not yet been finalised.

Estimated impact on Consolidated Statement of Financial Position as at 31 December 2018

New lease liabilities approximately $276m New right-of-use assets approximately $280m

The net effect of the new lease liabilities and right-of-use assets and the reversal of the existing straight-line lease liability, lease incentives, provision for make good and make good assets is approximately $18m and will be recognised as an increase in retained earnings as at 1 January 2019.

Non-lease components of property leases

Under AASB 16, payments for non-lease components are excluded from the lease liability unless an election is made to combine lease and non-lease components. A material portion of the Group’s leased property portfolio has non-lease components, known as property outgoings, embedded within their respective contract.

The Group will not elect to combine lease and non-lease components for its property leases. Accordingly, the calculated lease liability for property leases with an embedded non-lease component, will exclude an estimate of the standalone price of the non-lease component.

All other Australian Accounting Standards and interpretations with future effective dates are either not applicable to the Group’s activities, or have no material impact.


NOTE 2. DISAGGREGATED INFORMATION (dual sector and operations outside Australia)

(A) INDUSTRY - PARENT ENTITYINCOME STATEMENT




NOTES 2018 2018 2018 2017 2017 2017$'000 $'000 $'000 $'000 $'000 $'000


Australian Government grants 3 132,316 - 132,316 133,185 - 133,185HELP - Australian Government payments 3 75,440 2,373 77,814 74,989 2,550 77,539

HECS-HELP - Student payments 4,491 - 4,491 4,442 - 4,442State and Local Government financial assistance 4 233 17,103 17,337 265 35,462 35,727Fees and charges 5 158,165 16,648 174,813 121,282 14,909 136,191Investment income 6 6,355 - 6,355 4,971 - 4,971Consultancy and contracts 7 14,724 - 14,724 11,693 - 11,693Other revenue 8 9,441 568 10,009 9,107 390 9,497

Total revenue from continuing operations 401,166 36,693 437,859 359,934 53,311 413,245Gain on assets acquired at less than fair value 178 50 228Other income 131 - 131 7,782 - 7,782

Total income from continuing operations 401,475 36,743 438,218 367,716 53,311 421,027

EXPENSES FROM CONTINUING OPERATIONSEmployee related expenses 9 225,758 35,718 261,476 205,671 33,759 239,430Depreciation and amortisation 17,18 20,013 3,641 23,654 18,014 3,429 21,443Repairs and maintenance 10 9,443 2,808 12,251 10,446 2,832 13,278Finance costs 65 - 65 90 - 90Management and other fees 11 39,490 1,704 41,194 36,949 1,439 38,388Minimum lease payments on operating leases 20,687 18 20,705 21,017 50 21,067Other expenses 12 71,455 7,339 78,794 63,558 7,244 70,802

Total expenses from continuing operations 386,910 51,229 438,139 355,745 48,753 404,498Net result from continuing operations 14,565 (14,486) 79 11,971 4,558 16,529

STATEMENT OF COMPREHENSIVE INCOMEItems that may be reclassified to profit or loss

Gain / (loss) on value of available for sale financial assets 22(A)

- - - 5,947 - 5,947- - - 5,947 - 5,947

Items that will not be reclassified to profit or lossGain / (loss) on revaluation of equity instruments at FVOCI 22(A) 7,726 - 7,726 - - -Gain / (loss) on revaluation of land and buildings 22(A) (15,721) (6,443) (22,164) 15,945 16,331 32,276Gain / (loss) on revaluation of infrastructure 22(A) 806 (179) 627 1,621 962 2,583Gain / (loss) on revaluation of artwork and collections 22(A) 334 - 334 - - -

(6,855) (6,622) (13,477) 17,566 17,293 34,859Total other comprehensive income (6,855) (6,622) (13,477) 23,513 17,293 40,806Total comprehensive income 7,710 (21,108) (13,398) 35,484 21,851 57,335






NOTE 2. DISAGGREGATED INFORMATION (dual sector and operations outside Australia) (cont.)

(A) INDUSTRY - PARENT ENTITY (cont.)STATEMENT OF FINANCIAL POSITION




NOTES 2018 2018 2018 2017 2017 2017$'000 $'000 $'000 $'000 $'000 $'000

CURRENT ASSETSCash and cash equivalents 13 143,612 (16,115) 127,497 131,666 (3,254) 128,412Receivables 14 21,318 3,268 24,586 21,113 3,531 24,644Inventories 1,017 8 1,025 1,094 3 1,097Other non-financial assets 1,060 2 1,062 580 - 580

Total current assets 167,007 (12,837) 154,170 154,453 280 154,733

NON-CURRENT ASSETSOther financial assets 15 44,947 - 44,947 31,699 - 31,699Investment properties 16 - 2,156 2,156 - 2,085 2,085Property, plant and equipment 17 391,720 171,536 563,256 403,542 179,120 582,662Intangible assets 18 19,006 217 19,224 14,663 - 14,663

Total non-current assets 455,674 173,909 629,583 449,904 181,205 631,109TOTAL ASSETS 622,681 161,071 783,752 604,357 181,485 785,842

CURRENT LIABILITIESTrade and other payables 19 23,137 1,288 24,424 21,574 811 22,385Provisions 20 39,289 6,889 46,179 40,890 7,306 48,196Other liabilities 21 33,347 1,579 34,926 31,257 855 32,112

Total current liabilities 95,773 9,756 105,529 93,721 8,972 102,693

NON-CURRENT LIABILITIESProvisions 20 11,711 803 12,514 9,652 890 10,542Other liabilities 21 14,140 - 14,140 13,222 - 13,222

Total non-current liabilities 25,851 803 26,654 22,874 890 23,764TOTAL LIABILITIES 121,625 10,559 132,183 116,595 9,862 126,457

NET ASSETS 501,056 150,513 651,569 487,762 171,623 659,385

EQUITYParent entity interest

Reserves 22(A) 179,274 65,317 244,591 188,409 71,940 260,349Retained surplus 22(B) 321,782 85,196 406,978 299,353 99,683 399,036

TOTAL EQUITY 501,056 150,513 651,569 487,762 171,623 659,385







(A) INDUSTRY - PARENT ENTITY (cont.)STATEMENT OF FINANCIAL POSITION (cont.)

The allocation of assets and liabilities to the Higher Education or VET division is made on the following basis:Cash and cash equivalents: All bank account balances are allocated on a proportional basis.Receivables: Receivables directly attributable to either Higher Education or VET division have been applied on that basis.

Other liabilities: Revenue in advance included in other liabilities is directly attributable to either Higher Education or VET Division.

STATEMENT OF CHANGES IN EQUITYTOTAL

PARENT

RESERVES RETAINEDEARNINGS

TOTAL HIGHER

EDUCATIONRESERVES RETAINED

EARNINGS TOTAL VET

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 January 2017 164,896 287,382 452,278 54,647 95,125 149,772 602,050

Net result from continuing operations - 11,971 11,971 - 4,558 4,558 16,529

Gain / (loss) on value of available for sale assets 5,947 - 5,947 - - - 5,947

Gain / (loss) on revaluation of land and buildings15,945 - 15,945 16,331 - 16,331 32,276

Gain / (loss) on revaluation of infrastructure 1,621 - 1,621 962 - 962 2,583Balance at 31 December 2017 188,409 299,353 487,762 71,940 99,683 171,623 659,385

Balance at 1 January 2018 188,409 299,353 487,762 71,940 99,683 171,623 659,385Effect of adoption of new accounting standards (2,281) 7,865 5,584 - (2) (2) 5,582Balance as restated 186,128 307,218 493,346 71,940 99,681 171,621 664,967

Net result from continuing operations after tax - 14,565 14,565 - (14,486) (14,486) 79

Gain / (loss) on revaluation of equity instruments at FVOCI 7,726 - 7,726 - - - 7,726

Gain / (loss) on revaluation of land and buildings(15,721) - (15,721) (6,443) - (6,443) (22,164)

Gain / (loss) on revaluation of infrastructure 806 - 806 (179) - (179) 627Gain / (loss) on revaluation of artwork and collections 334 - 334 - - 334

Balance at 31 December 2018 179,273 321,783 501,056 65,318 85,195 150,513 651,569


Provisions: Provisions have been directly attributed to either the Higher Education or the VET Division as appropriate in relation to the teaching and administrative staff operating within each Division.

HIGHER EDUCATION VET



Investment properties: The allocation of investment properties is based on whether these assets are used solely for the VET division only.Other financial assets: These are allocated between Higher Education or VET Division based on their direct relationship to the Division established at the time of acquisition of the asset.Other assets: These are allocated between Higher Education or VET Division based on the nature of the asset and its relevance to the Division.Trade and other payables: Trade payables directly attributable to either Higher Education or VET Division have been applied on that basis.




(A) INDUSTRY - PARENT ENTITY (cont.)STATEMENT OF CASH FLOWS

NOTES HIGHER ED-UCATION VET TOTAL


PARENT

2018 2018 2018 2017 2017 2017$'000 $'000 $'000 $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESAustralian Government grants 203,691 1,743 205,434 204,683 2,148 206,831State and local government grants received 607 17,103 17,710 263 35,462 35,725HECS-HELP - Student payments 4,578 - 4,578 4,674 - 4,674OS-HELP (net) 33.7 53 - 53 472 - 472Receipts from student fees and other customers 183,578 17,635 201,212 157,496 17,492 174,988Dividends received 3,003 - 3,003 1,143 - 1,143Interest received 3,820 - 3,820 3,481 - 3,481

(370,903) (47,737) (418,639) (342,257) (47,640) (389,897)Interest and other costs of finance (65) - (65) (90) - (90)GST recovered / (paid) 9,826 2,000 11,826 9,038 1,152 10,190

Net cash provided by / (used in) operating activities 30 38,188 (9,256) 28,932 38,903 8,614 47,517

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of property, plant and equipment 283 12 295 - - -Proceeds from sale of investment property - - - 613 - 613Proceeds from sale of financial assets - - - 50 - 50Payments for property, plant and equipment (18,450) (3,377) (21,827) (25,166) (3,748) (28,914)Payments for investment property - (21) (21) - - -Payments for financial assets (951) - (951) (589) - (589)Payments for intangibles (7,148) (218) (7,366) (4,951) - (4,951)

Net cash provided by / (used in) investing activities (26,266) (3,604) (29,870) (30,043) (3,748) (33,791)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from / (repayments of) borrowings - - - - (3,000) (3,000)

Net cash provided by / (used in) financing activities - - - - (3,000) (3,000)

Net increase / (decrease) in cash and cash equivalents 11,922 (12,860) (938) 8,860 1,866 10,726Cash and cash equivalents at the beginning of the financial year 131,666 (3,254) 128,412 122,761 (5,121) 117,640Effects of exchange rate changes on cash and cash equivalents 23 - 23 45 1 46

Cash and cash equivalents at the end of the period 13 143,611 (16,114) 127,497 131,666 (3,254) 128,412

(B) GEOGRAPHICAL - CONSOLIDATED ENTITY

2018 2017 2018 2017 2018 2017$'000 $'000 $'000 $'000 $'000 $'000

Australia 438,551 421,296 855 17,027 784,639 786,836Overseas 44 30 (580) (251) 285 129

Total 438,595 421,326 275 16,776 784,924 786,965



Payments to suppliers and employees (inclusive of GST)

University courses are delivered in Indonesia through a partnering arrangement. The Group commenced operations in Singapore to recruit studentsfrom South-East Asia to study at the University's Australian campuses.

TOTAL REVENUENET RESULTS BEFORE

TAX TOTAL ASSETS



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000

NOTE 3. AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE INCLUDING AUSTRALIAN GOVERNMENT LOAN PROGRAMS (HELP)

(A) COMMONWEALTH GRANTS SCHEME AND OTHER GRANTS 33.1

Commonwealth Grant Scheme #1 117,752 118,941 117,752 118,941

Access and Participation Fund 4,931 4,683 4,931 4,683

Promotion of Excellence in Learning and Teaching - 20 - 20

Disability Performance Funding #2 79 62 79 62

Indigenous Student Success Program #3 1,921 1,669 1,921 1,669

Total Commonwealth Grants Scheme and Other Grants 124,683 125,375 124,683 125,375

(B) HIGHER EDUCATION LOAN PROGRAMS (HELP) 33.2

HECS-HELP 67,059 68,613 67,059 68,613

FEE-HELP 6,332 4,196 6,332 4,196

VET FEE-HELP 57 - 57 -

VET Student Loan Program 2,317 2,549 2,317 2,549

SA-HELP 2,049 2,181 2,049 2,181

Total Higher Education Loan Programs 77,814 77,539 77,814 77,539

(C) EDUCATION RESEARCH 33.3

Research Training Program 3,406 3,344 3,406 3,344

Research Support Program 2,382 2,464 2,382 2,464

Total Education Research Grants 5,788 5,808 5,788 5,808

(D) AUSTRALIAN RESEARCH COUNCIL 33.5

Discovery 461 513 461 513

Linkages 41 48 41 48

Total ARC 502 561 502 561

(E) OTHER AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE

Non-Capital

Other non-capital 1,343 1,441 1,343 1,441

Total non-capital 1,343 1,441 1,343 1,441Total Other Australian Government financial assistance 1,343 1,441 1,343 1,441

Total Australian Government financial assistance 210,130 210,724 210,130 210,724

Accounting Policy

#2 Disability Performance Funding includes Additional Support for Students with Disabilities and Australian Disability Clearinghouse on Education & Training.



CONSOLIDATED PARENT

#1 Includes the basic CGS grant amount, Regional Loading, Enabling Loading, Allocated Places and Non Designated Courses.

#3 Indigenous Student Success Program replaced the Indigenous Commonwealth Scholarships Program and the Indigenous Support Program as of 1 January 2017.

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Group and specific criteria have been met for each of the Group's activities. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. This applies to revenue items recognised in notes 3 through 6.

Central Queensland University treats operating grants received from Australian Government entities as income in the year of receipt. A provision is recognised where there is an obligation that the University will be required to return the funds to the government in a future period.

Revenue from HELP is categorised into those received from the Australian Government and those received directly from students. Revenue is recognised and measured in accordance with the above disclosure.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 4. STATE AND LOCAL GOVERNMENT FINANCIAL ASSISTANCE

NON-CAPITAL

Higher Education

Other 10 - 10 -

VET

VET purchaser's grant and corporate operating grant 16,618 16,142 16,618 16,142

VET cash losses grant - 18,466 - 18,466

Other 485 871 485 871

Total Non-capital 17,113 35,479 17,113 35,479

CAPITAL

Higher Education

Cairns Engineering laboratory 224 248 224 248

Total Capital 224 248 224 248

Total State and Local Government financial assistance 17,337 35,727 17,337 35,727

NOTE 5. FEES AND CHARGES

COURSE FEES AND CHARGES

Fee-paying onshore overseas students 144,468 108,072 144,468 108,072

Fee-paying offshore overseas students 274 310 274 310

Continuing education 880 619 880 619

Fee-paying domestic postgraduate students 2,664 2,408 2,664 2,408

Fee-paying domestic undergraduate students 918 455 918 455

Fee-paying domestic non-award students 41 55 41 55

Other domestic course fees and charges 2,751 2,531 2,751 2,531

Student subsidies 10,926 9,785 10,926 9,785

Training services 2,729 2,483 2,729 2,483

Total course fees and charges 165,651 126,718 165,651 126,718

NON-COURSE FEES AND CHARGES

Student service and amenities fees from students 33.8 2,459 2,032 2,459 2,032

Lease fees and charges 438 1,774 447 1,791

Student accommodation 2,404 2,328 2,404 2,328

Other fees and charges 3,913 3,380 3,852 3,322

Total non-course fees and charges 9,214 9,514 9,162 9,473

Total fees and charges 174,865 136,232 174,813 136,191

Accounting Policy

In accordance with the terms of the Merger and Transfer Agreement that governs the University’s merger with the former Central Queensland Institute of TAFE, the State Government agreed to fund, subject to certain conditions, the cash losses of the VET business of CQU for a three year period, that concluded on 30 June 2017. As a result, the Queensland Department of Education and Training has provided a $18.466m grant to the University in 2017.

Fees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate to courses to be held in future periods. Such receipts (or portion thereof) are treated as income in advance in liabilities. Conversely, fees and charges relating to debtors are recognised as revenue in the year to which the prescribed course relates.

Lease income from operating leases is recognised in income on a straight-line basis over the lease term.

Revenue received prior to the delivery of goods to the customer or the delivery of services to the customer is recognised as a liability.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 6. INVESTMENT INCOME

Interest

Financial instruments at amortised cost 3,846 3,549 3,805 3,511

Dividends and trust distributions

Debt instruments designated at FVTPL# 616 646 616 646

Equity instruments designated at FVOCI - Other 2,864 764 2,864 764

Net fair value gains (losses)

Debt instruments designated at FVTPL# (930) - (930) -

Gain on sale of equity instruments at FVOCI - - - 50

Total net investment income 6,396 4,959 6,355 4,971

#Fair Value Through Profit or Loss

Accounting Policy

Interest

Dividends and trust distributions

NOTE 7. CONSULTANCY AND CONTRACTS

Research

Contracts 14,627 11,421 14,627 11,421

14,627 11,421 14,627 11,421

Other

Consultancy 97 272 97 272

97 272 97 272

Total consultancy and contracts 14,724 11,693 14,724 11,693

Accounting Policy

NOTE 8. OTHER REVENUE

Donations and bequests 1,498 662 1,498 662

Scholarships and prizes 1,564 1,565 1,564 1,565

Non-government grants 145 139 145 139

Sales of books and related student materials 3,150 3,399 3,158 3,400

Other 3,942 4,002 3,644 3,731

Total other revenue 10,299 9,767 10,009 9,497

Accounting PolicySale of goods is recognised upon delivery of goods to the customer.

For all financial instruments measured at amortised cost, interest income is recorded using the effective interest rate at the date interest income is earned.

Revenue is recognised when (a) the Group's right to receive the payment is established, which is generally when the shareholders/trustee approve the dividend, (b) it is probable that the economic benefits associated with the dividend/trust distribution will flow to the entity; and (c) the amount of the dividend/trust distribution can be measured reliably.

Consultancy and contract revenue is recognised when the service is provided in accordance with the percentage of completion method.

Other revenue is recognised when the goods or services are provided to the customer



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 9. EMPLOYEE RELATED EXPENSES

ACADEMIC

Salaries 108,795 97,895 108,795 97,895

Contribution to funded superannuation and pension schemes 17,272 15,377 17,272 15,377

Payroll tax 6,696 6,288 6,696 6,288

Worker's compensation 358 332 358 332

Long service leave expense 2,822 2,749 2,822 2,749

Annual leave 11,393 10,125 11,393 10,125

FBT expense 137 108 137 108

Total academic 147,473 132,874 147,473 132,874

NON-ACADEMIC

Salaries 83,905 77,824 83,154 77,293

Contribution to funded superannuation and pension schemes 13,473 12,529 13,392 12,479

Payroll tax 4,960 4,888 4,934 4,867

Worker's compensation 257 250 255 249Long service leave expense 2,415 2,463 2,405 2,459Annual leave 9,798 9,073 9,757 9,072FBT expense 106 137 106 137

Total non-academic 114,914 107,164 114,003 106,556Total employee related expenses 262,387 240,038 261,476 239,430

Superannuation plans

NOTE 10. REPAIRS AND MAINTENANCEBuildings and grounds 2,766 3,004 2,766 3,004

Cleaning and service contracts 2,914 2,757 2,914 2,757

Repairs and maintenance general 2,040 2,545 2,039 2,545IT maintenance 2,480 3,244 2,480 3,244Other operating expenses 2,052 1,728 2,052 1,728

Total repairs and maintenance 12,252 13,278 12,251 13,278

Accounting Policy

Central Queensland University contributes to UniSuper and QSuper under arrangements where employees are entitled to defined benefits and accumulated plan benefits on resignation, retirement, disability or death. Continuing employees may contribute to the relevant plan an amount of between 0% and 7% of their wages and salaries. The University contributes to the plan at the applicable rate for each fund ranging from 3% to a maximum of 17%. Minimum amounts of 9.50% are paid on behalf of each eligible employee in accordance with the Superannuation Guarantee Administration Act 1992 (Cwlth).

The University’s share of the superannuation plans’ assets and accrued vested benefits are not recognised in the financial statements.

The UniSuper Defined Benefit Division (DBD), which is the predominant plan within the University, is a defined benefit plan under superannuation law but is considered to be a defined contribution plan under Accounting Standard AASB 119 Employee Benefits . The DBD receives fixed contributions from the consolidated entity and the consolidated entity’s legal or constructive obligation is limited to these contributions. Additionally, any actuarial risk and investment risk falls on the consolidated entity’s employees.

The University also contributes to QSuper (the Trustee for State Public Sector Superannuation Scheme) in respect of certain employees; however, the University’s obligation is considered immaterial.

Repairs and maintenance costs are recognised as expenses as incurred, except when they relate to the replacement of a component of an asset, in which case the carrying amount of those parts that are replaced is derecognised and the cost of the replacing part is capitalised if the recognition criteria are met. Other routine operating maintenance, repairs and minor renewal costs are also recognised as expenses, as incurred.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 11. MANAGEMENT AND OTHER FEESManagement and consultant fees 1,224 1,362 2,194 1,864

Commission 15,918 15,111 15,918 15,111Copyright, royalties and patents 671 587 671 587Membership fees and subscriptions 2,569 2,415 2,563 2,409Labour services fees 10,394 8,965 10,388 8,965

Other fees 9,478 9,463 9,460 9,452

Total management and other fees 40,254 37,903 41,194 38,388

NOTE 12. OTHER EXPENSESScholarships, grants and prizes 23,319 14,377 23,319 14,377Non-capitalised equipment 8,561 10,126 8,559 10,115Advertising, marketing and promotional expenses 6,429 6,076 6,311 6,115Audit fees, bank charges, legal costs, insurance and taxes 2,948 2,484 2,871 2,432Telecommunications 3,111 2,453 3,110 2,452Staff development, training and related travel 12,812 10,430 12,885 10,575Inventories 2,219 2,240 2,219 2,240Printing, stationery, postages and freight 1,358 1,411 1,340 1,405Books and subscriptions 3,944 3,355 3,944 3,355Recovery of grants 410 5,012 410 5,012Services and utility costs 8,477 8,062 8,477 8,070Waivers 1,319 672 1,319 672Special payments (ex gratia) 512 104 512 104

Other expenses 3,531 3,879 3,518 3,878

Total other expenses 78,950 70,681 78,794 70,802

NOTE 13. CASH AND CASH EQUIVALENTSCash at bank and on hand 3,861 4,389 1,961 2,630Deposits at call 125,536 125,782 125,536 125,782Other - trust fund 99 170 - -

Total cash and cash equivalents 129,496 130,341 127,497 128,412

(A) CASH AT BANK AND ON HANDCash on hand is non-interest bearing. Cash at bank amounts are bearing a weighted average interest rate of 2.0% (2017: 2.0%).

(B) DEPOSITS AT CALL

(C) CASH AND CASH EQUIVALENTS DEFINITION

The deposits are bearing floating interest rates between 1.50% and 2.39% (2017: 1.50% and 2.49%). These deposits are held in "on-call" accountsand available daily.

For statement of cash flows presentation purposes, cash and cash equivalents include cash on hand, deposits held at call with financial institutions,other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash andwhich are subject to an insignificant risk of changes in value.



2018 2017 2018 2017

$'000 $'000 $'000 $'000NOTE 14. RECEIVABLESCURRENTTRADE AND STUDENT RECEIVABLES

Trade receivables 5,653 3,551 5,589 3,542Student fees receivable 3,668 5,312 3,668 5,312

Total trade and student receivables 9,321 8,863 9,257 8,854LESS: IMPAIRED RECEIVABLES

Trade receivables (123) (104) (123) (104)Student fees receivable (396) (541) (396) (541)

Total impaired receivables (519) (645) (519) (645)Total trade and student fees receivable less impaired receivables 8,802 8,218 8,738 8,209OTHER RECEIVABLES

Accrued revenue 2,435 848 2,400 843Prepayments 11,083 11,588 11,076 11,587Goods and Services Tax 2,364 4,000 2,372 4,005

Total other receivables 15,882 16,436 15,848 16,435Total current receivables 24,684 24,654 24,586 24,644

Receivables are non-interest bearing and are generally on terms of 30 days for trade receivables, and 14 days for student fees receivable.

Set out below is the movement in the allowance for expected credit losses of receivablesAt 1 January 645 681 645 681Remeasurement of prior year expected credit losses (32) - (32) -Provision for expected credit losses 415 252 415 252Write-off (509) (288) (509) (288)At 31 December 519 645 519 645The information about the credit exposures are disclosed in Note 31 Financial risk management.

Accounting PolicyClassification and measurement

Prepayments

NOTE 15. OTHER FINANCIAL ASSETS NON-CURRENT

Investments in debt instruments designated at FVTPL 13,516 - 13,516 -Investments in equity instruments designated at FVOCI 29,930 - 31,431 -Other financial assets at amortised cost 400 - - -Available for sale financial assets - 30,728 - 31,699

Total non-current other financial assets 43,846 30,728 44,947 31,699Total other financial assets 43,846 30,728 44,947 31,699



CONSOLIDATED PARENT

Trade receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. At initial recognition, trade receivables are measured at their transaction price and subsequently these are classified and measured as debt instruments at amortised cost. Trade receivables are due for settlement no more than 30 days (2017: 14 days) from the date of recognition. Student fees receivable are due for settlement no more than 14 days from date of recognition.

ImpairmentFor trade and student fee receivables the Group applies a simplified approach in calculating expected credit losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Group recognises prepayments as other receivables when payments for goods and services have been made in advance of the Group obtaining a right to access those goods or services.



2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 15. OTHER FINANCIAL ASSETS (cont.)Investments in debt instruments designated at FVTPL (2017: Available for sale) is represented by:

Investments funds 13,516 13,884 13,516 13,88413,516 13,884 13,516 13,884

Investments in equity instruments designated at FVOCI (2017: Available for sale) is represented by:Shares in subsidiaries - - 1,514 981Shares in listed companies 1,034 1,120 1,021 1,110Shares in unlisted companies 28,896 15,724 28,896 15,724

29,930 16,844 31,431 17,815Other financial assets at amortised cost

Term deposits 400 - - -400 - - -

Total other financial assets 43,846 30,728 44,947 31,699

Equity instruments designated at FVOCI

Equity instruments designated at FVOCIShares in subsidiaries - -Shares in listed companies 1,034 71Shares in unlisted companies 28,896 2,714

29,930 2,785

Accounting Policy (2018)

Initial recognition and measurement

For purposes of subsequent measurement, financial assets are classified in five categories:- (Other) financial assets at amortised cost- (Other) financial assets at fair value through other comprehensive income - Investments in equity instruments designated at fair value through other comprehensive income- (Other) financial assets at fair value through profit or loss- (Other) financial assets designated at fair value through profit or loss.

Financial assets at amortised cost

- The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and

Financial assetsA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets are classified, at initial recognition, and subsequently measured at amortised cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. With the exception of trade receivables that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs.

In order for a financial asset to be classified and measured at amortised cost or FVOCI, it needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Group's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

Subsequent measurement

The group measures financial assets at amortised cost if both of the following conditions are met:

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

No strategic investments were disposed of during 2018, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

At 1 January 2018, the Group designated investments shown below as equity instruments at FVOCI because these equity instruments represent investments that the Group intends to hold for the long-term for strategic purposes. In 2017, these investments were classified as available for sale.

Fair value at 31 December 2018

Income recognised in 2018



2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 15. OTHER FINANCIAL ASSETS (cont.)Accounting Policy (2018) (cont.)

Investments in equity instruments designated at fair value through other comprehensive income

Financial assets at fair value through profit or loss (including designated)

Derecognition

- The rights to receive cash flows from the asset have expired, or

Investment funds

SubsidiariesDetails of subsidiaries are set out in Note 28. Shares in subsidiaries have been valued using the net asset method when applicable.

Listed securities

Unlisted securities

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

The investment funds in the unit trust with Queensland Investment Corporation (QIC) were established to provide the University with funding capabilities.

The Group holds shares in Australian listed companies and public unit trusts, which are valued using closing market value on the last day of trade for the year.

Education Australia Ltd is owned by 38 Australian Universities and holds a 50% interest in the publicly listed company, IDP Education Ltd. IDP Education Ltd is a company offering student placement and English language testing services. The University holds less than 3% of the shareholding in Education Australia Ltd. The shares were independently valued as at 31 December 2018 by ShineWing Australia Pty Ltd at a discounted market value as there is no active market for these shares.

AARNet Pty Ltd is a not-for-profit company owned by 38 Australian Universities and the Commonwealth Scientific and Industrial Research Organisation (CSIRO), established to operate Australia's academic and research network. The University holds less than 3% of the shareholding in AARNet Pty Ltd. The shares were independently valued as at 31 December 2018 by ShineWing Australia Pty Ltd.

The University has holdings in other entities and where applicable, applies a management valuation as there is no active market for these shares.

In accordance with the requirements of AASB 9 Financial Instruments , the Group has made an irrevocable election to reclassify all available for sale assets (excluding the investment funds) to other financial assets at FVOCI, effective from 1 January 2018.

Financial assets at fair value through profit or loss (FVTPL) includes financial assets held for trading, financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as being held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at FVTPL, irrespective of business model.

Financial assets at FVTPL are carried in the statement of financial position at fair value with net changes in fair value recognised in the income statement.

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group's consolidated statement of financial position) when:

- The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the income statement when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in other comprehensive income. Equity instruments designated at FVOCI are not subject to impairment assessment.

Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group's other financial assets at amortised cost are term deposits.

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity investments designated at FVOCI when they meet the definition of equity under AASB 132 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.



2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 15. OTHER FINANCIAL ASSETS (cont.)Accounting Policy (2017)

NOTE 16. INVESTMENT PROPERTIESAt fair value

Opening balance at 1 January 2,085 2,708 2,085 2,708Change in fair value 50 (10) 50 (10)Improvements 21 - 21 -Disposals - (613) - (613)

Closing balance at 31 December 2,156 2,085 2,156 2,085

Accounting Policy

(A) AMOUNTS RECOGNISED IN PROFIT OR LOSS FOR INVESTMENT PROPERTIES

Rental income 50 49 50 49Direct operating expenses (rent generating properties) (86) (46) (86) (46)

Total recognised in profit and loss (36) 3 (36) 3(B) VALUATION BASIS

(C) LEASING ARRANGEMENTS

Rental revenue from the leasing of investment properties is recognised in the income statement in the periods in which it is receivable, as this represents the pattern of service rendered through the provision of the properties.

Investment properties at Emerald were comprehensively valued at fair value as at 21 August 2018, 22 August 2018 and 11 September 2018 by A Smith (Registered Valuer No. 2304) from Taylor Byrne, Emerald. These valuations were based on publicly available data on recent rentals and sales of similar buildings in nearby localities. Such valuations were also influenced by details supplied by the University in respect of the age, internal features/design and physical condition of each building.

Investment properties consist of properties that are leased to third parties under individually negotiated lease terms.

Investment properties exclude properties held to meet service delivery objectives of Central Queensland University and are held to earn rental income and/or for capital appreciation.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in other comprehensive income are included in the income statement as gains and losses from investment securities.

Available-for-sale financial assets are subsequently carried at fair value.

The fair values of investments and other financial assets are based on quoted prices in active market. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques that maximise the use of relevant data. These include reference to the estimated price in an orderly transaction that would take place between market participants at the measurement date. Other valuation techniques used are the cost approach and the income approach based on the characteristics of the asset and the assumptions made by market participants.

The Group assesses annually whether there is objective evidence that a financial asset or a group of financial assets is impaired. If any such evidence exists an impairment loss is recognised in the income statement.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the University. Where an investment property is acquired at no cost or for nominal consideration, its cost shall be deemed to be its fair value as at the date of acquisition.

Subsequent to initial recognition at cost, investment property is carried at fair value, which is based on active market prices of similar properties, adjusted if necessary for any difference in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods such as recent prices in less active markets or discounted cash flow projections. These valuations are reviewed annually by a registered valuer. Changes in fair values are recorded in the income statement as part of other income.

Changes in fair values of available for sale assets are recorded in other comprehensive income.

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the end of the reporting period. During the 2017 year, the University reclassified the QIC Unit Trust from current assets to non-current assets as there is no intention to dispose of this asset within 12 months of the end of the reporting period.

Purchases and sales of financial assets are recognised on trade date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.

Financial assets are de-recognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.


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6,50

535

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,846

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3,85

360

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505

35,8

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8,24

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28,5

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6,50

535

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8,57

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31,

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623

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n ch

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--

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5,16

330

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431,

378

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2428

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366,

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1 D

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--

-69

,560

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536,

357

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5,23

3V

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534,

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4,30

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--

(103

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0,40

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0,77

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-(1

72,7

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Net

boo

k am

ount

5,16

330

,410

431,

378

30,8

2428

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26,0

366,

357

4,30

356

3,25

6



NOTE 17. PROPERTY, PLANT AND EQUIPMENT

ASSETS

Freehold buildingsInfrastructure

Leasehold improvementsPlant and equipment

The useful lives of leasehold improvements and plant and equipment assets are reviewed annually, and adjusted if appropriate.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the income statement. Where revalued assets are sold, it is Group policy to transfer the amounts included in other reserves in respect of those assets to retained earnings.

USEFUL LIFE USEFUL LIFE3 to 16 years 3 to 16 years1 to 25 years 1 to 25 years

WEIGHTED AVERAGE USEFUL LIFE

WEIGHTED AVERAGE USEFUL LIFE

5 to 125 years 17 to 131 years2 to 200 years 13 to 163 years

Any accumulated depreciation at the date of revaluation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after valuation equals its revalued amount. All other property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the income statement during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of land, buildings, infrastructure, library heritage and art collections are credited to reserves in equity. To the extent that the increase reverses a decrease for that class previously recognised in profit or loss, the increase is first recognised in profit or loss. Decreases that reverse previous increases of the same asset class are first charged against revaluation reserves directly in equity of the remaining reserve attributable to the asset class; all other decreases are charged to the income statement.

Asset classes land, library heritage and art collections are not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their remaining useful lives as follows:

2018 2017

The valuation of existing land, buildings and infrastructure was independently revalued as at 31 October 2018 by APV Valuers and Asset Management. Artworks and the University Heritage Collection assessments were provided as at 31 October 2018 by J Harbeck, an Australian Government Cultural Gifts Program Valuer.



Land and buildings (except for investment properties, Note 16), infrastructure, library heritage and art collections are shown at fair value, based on periodic, but at least triennial, valuations by external independent valuers less subsequent depreciation for buildings and infrastructure. During intervening years a management assessment of fair value using indices supplied by external valuers is undertaken. This is a specifically tailored assessment of market trends occurring at the time.


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NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000NOTE 18. INTANGIBLE ASSETS (cont.)Accounting Policy

NOTE 19. TRADE AND OTHER PAYABLES

CURRENTOS-HELP liability to Australian Government 721 668 721 668Trade creditors 16,602 16,992 16,454 16,870Other creditors 7,249 4,847 7,249 4,847

Total current trade and other payables 24,572 22,507 24,424 22,385Total trade and other payables 24,572 22,507 24,424 22,385

NOTE 20. PROVISIONS

CURRENT PROVISIONSCurrent provisions expected to be settled within 12 months

Grant recovery - 4,901 - 4,901Employee benefits

Annual leave 21,325 21,929 21,300 21,906Long service leave 2,876 3,450 2,845 3,413Staff redundancies 336 - 336 -

Total current provisions expected to be settled within 12 months 24,537 30,280 24,481 30,220Current provisions expected to be settled after 12 months

Employee benefitsAnnual leave 3,388 1,806 3,388 1,806Long service leave 18,310 16,170 18,310 16,170

Total current provisions expected to be settled after 12 months 21,698 17,976 21,698 17,976Total current provisions 46,235 48,256 46,179 48,196

NON-CURRENT PROVISIONSMake good 5,471 4,260 5,471 4,260Employee benefits

Long service leave 7,066 6,290 7,043 6,282Total non-current provisions 12,537 10,550 12,514 10,542Total provisions 58,772 58,806 58,693 58,738

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Software development costs in excess of $100,000 are recognised as assets on acquisition only when the consolidated entity controls future economic benefits as a result of the costs incurred that are probable and can be measured reliably. Costs attributable to feasibility assessments are expensed as incurred. The costs capitalised include the cost of purchased software and any materials, direct labour, directly attributable overheads and other incidental costs incurred. The purchase cost of this software is amortised on a straight-line basis over the period of the expected benefit to the University, namely two to ten years.



CONSOLIDATED PARENT

Intangible assets with a cost or other value equal to or greater than $100,000 are recognised in the financial statements; items with a lesser value are expensed. Each intangible asset is amortised over its estimated useful life to the Group. The residual value is zero for all the Group’s intangible assets. It has been determined that there is no active market for any of the Group's intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses. No intangible assets have been classified as held for sale or form part of the disposal group held for sale.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 20. PROVISIONS (cont.)(A) Movements in provisionsMovements in each class of provision during the financial year, other than employee benefits, are set out below:

GRANT RECOVERY

Carrying amount at start of year 4,901 3,843Additional provisions required - 4,888Amounts used (4,901) (3,830)Carrying amount at end of year - 4,901

MAKE GOOD

Carrying amount at start of year 4,260 7,067Additional provisions required 1,242 642Change in estimated cashflows - (28)Increase/(decrease) in discounted amount (31) 122Amounts used - (308)Unused amounts reversed - (3,235)Carrying amount at end of year 5,471 4,260

Accounting Policy

Employee benefits(i) Short-term obligations

(ii) Other long-term obligations

Provision is made for estimated recovery of Australian Government financial assistance in particular Commonwealth Grants Scheme, HECS-HELP, SA-HELP and VET FEE-HELP.

Provision is made for estimated make good expenses in accordance with the terms of various lease agreements for our campuses, study hubs and training facilities in Adelaide, Brisbane, Busselton, Cairns, Gladstone, Melbourne, Noosa, Perth, Rockhampton, Sydney and Townsville. The leases have termination dates ranging from 2020 to 2033 when it is expected that these obligations will be realised.

Provisions for grant recovery and lease make good are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as a finance cost.

Liabilities for short-term employee benefits including wages, salaries and non-monetary benefits are measured at the amount expected to be paidwhen the liabilities are settled, if they are expected to be settled wholly before 12 months after the end of the reporting period, and are recognised inother payables.

The liability for other long-term employee benefits is recognised in non-current provisions if it is not expected to be settled wholly before 12 months after the end of the reporting period. Other long-term employee benefits include annual leave and long service leave liabilities.

It is measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date, in which case it would be classified as a non-current liability.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 20. PROVISIONS (cont.)Employee benefits (cont.)(iii) Sick leave

(iv) Time off in lieu

(v) Termination benefits

NOTE 21. OTHER LIABILITIES

CURRENTRevenue received in advance 32,301 29,220 32,276 29,187Building lease liability 1,296 1,355 1,296 1,355Other 1,389 1,579 1,354 1,570

Total current other liabilities 34,986 32,154 34,926 32,112

NON-CURRENTBuilding lease liability 14,140 13,222 14,140 13,222

Total non-current other liabilities 14,140 13,222 14,140 13,222Total other liabilities 49,126 45,376 49,066 45,334

Accounting Policy

NOTE 22. RESERVES AND RETAINED SURPLUSES

(A) RESERVESProperty, plant and equipment revaluation surplus 215,048 236,251 215,048 236,251Investments in equity instruments designated at FVOCI (2017: Available for salefinancial assets) 28,476 23,221 29,543 24,098Foreign currency translation surplus 17 1 - -Total reserves 243,541 259,473 244,591 260,349

MOVEMENTSProperty, plant and equipment revaluation surplus

Balance 1 January 236,251 201,392 236,251 201,392Revaluation increment/(decrement)

Land and buildings 17 (22,164) 32,276 (22,164) 32,276Infrastructure 17 627 2,583 627 2,583Artwork and collections 17 334 - 334 -

Balance 31 December 215,048 236,251 215,048 236,251

Revenue received prior to the delivery of goods to the customer or delivery of the service to the customer is recognised as a liability.

The building lease liability relates to the University's operating leases for the leased premises which are expensed on a straight-line basis over the terms of the individual leases in accordance with AASB 117 Leases . This liability is over the remaining life of the leases.

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts an offer ofbenefits in exchange for the termination of employment. The Group recognises termination benefits either when it can no longer withdraw the offer ofthose benefits or when it has recognised costs for restructuring within the scope of AASB 137 Provisions, Contingent Liabilities and ContingentAssets that involves the payment of termination benefits. Benefits falling due more than 12 months after the balance date are discounted to presentvalue.

No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement of sick leave.

Time off in lieu accrued is not recorded as a liability as it is considered immaterial, and any payment of time in lieu is recognised as an expense.


NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 22. RESERVES AND RETAINED SURPLUSES (cont.)MOVEMENTS (cont.)

Investments in equity instruments designated at FVOCI (2017: Available for sale financial assets)Balance 1 January 23,221 17,492 24,098 18,151Effect of adoption of new accounting standards 1(I) (2,281) - (2,281) -Fair value increment/(decrement) 7,536 5,729 7,726 5,947


Foreign currency translation surplusBalance 1 January 1 - - -Currency transaction differences arising during the year 16 1 - -

Balance 31 December 17 1 - -

(B) RETAINED SURPLUSMovements in retained surplus were as follows

Retained surplus at 1 January 400,781 384,076 399,036 382,507Effect of adoption of new accounting standards 1(I) 7,863 - 7,863 -Net operating result for the period end 270 16,705 79 16,529

Retained surplus at 31 December 408,913 400,781 406,978 399,036

(C) NATURE AND PURPOSE OF RESERVES

NOTE 23. KEY MANAGEMENT PERSONNEL DISCLOSURES

(A) Names of responsible persons and executive officers Appointed / (Ceased)

Mr John ABBOTT Mr Ian MCPHEE 27 May 2018Dr Robyn MINCHINTON Ms Patrice BROWNProfessor Scott BOWMAN Mr Joel BUCHHOLZ Professor Bronwyn FREDERICKS (6 April 2018) Ms Shelia HOUSTON 27 June 2018Associate Professor Celeste LAWSON 11 April 2018 Mr Mark PETERSMr Graham CARPENTER (26 May 2018) Mr Adrian MILLER 29 August 2018Ms Mary CARROLL (9 February 2018) Mr Gerard ILOTT 1 February 2018Emeritus Professor Robert CASTLE Mr Bruce YOUNG Mr Peter CORONES AM Mr Shirish PANDEY (6 July 2018)Dr Rochelle MACDONALD 27 May 2018 Mr Vindhya Raj POKHAREL 13 August 2018

Key Executive Management Personnel (Executive Officers) Appointed / (Ceased)Professor Scott BOWMAN Ms Narelle PEARSEProfessor Andrew BRIDGES (20 July 2018) Ms Joanne PERRYProfessor Fiona COULSON 23 April 2018 Professor Grant STANLEYMr Alastair DAWSON Professor Pierre VILJOENProfessor Helen HUNTLY

The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the University during 2018. Further information on these positions can be found in the body of the annual report. Professor Scott Bowman resigned from the University effective 1 February 2019 and Professor Nicholas Klomp commenced as the new Vice Chancellor and President on 4 February 2019.

The foreign currency revaluation reserve relates to the translation of the results and position of CQU Development Ptd Ltd whose functional and presentation currency is Singapore dollars into the group accounts which are presented in Australian dollars.

The property, plant and equipment revaluation surplus includes the net revaluation increments and decrements arising from the revaluation.

Investments in equity instruments designated at FVOCI (2017: Available for sale financial assets) reserve represents fair value movements in equity instruments designated at FVOCI.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 22. RESERVES AND RETAINED SURPLUSES (cont.)MOVEMENTS (cont.)

Investments in equity instruments designated at FVOCI (2017: Available for sale financial assets)Balance 1 January 23,221 17,492 24,098 18,151Effect of adoption of new accounting standards 1(I) (2,281) - (2,281) -Fair value increment/(decrement) 7,536 5,729 7,726 5,947


Foreign currency translation surplusBalance 1 January 1 - - -Currency transaction differences arising during the year 16 1 - -

Balance 31 December 17 1 - -

(B) RETAINED SURPLUSMovements in retained surplus were as follows

Retained surplus at 1 January 400,781 384,076 399,036 382,507Effect of adoption of new accounting standards 1(I) 7,863 - 7,863 -Net operating result for the period end 270 16,705 79 16,529

Retained surplus at 31 December 408,913 400,781 406,978 399,036

(C) NATURE AND PURPOSE OF RESERVES

NOTE 23. KEY MANAGEMENT PERSONNEL DISCLOSURES

(A) Names of responsible persons and executive officers Appointed / (Ceased)

Mr John ABBOTT Mr Ian MCPHEE 27 May 2018Dr Robyn MINCHINTON Ms Patrice BROWNProfessor Scott BOWMAN Mr Joel BUCHHOLZ Professor Bronwyn FREDERICKS (6 April 2018) Ms Shelia HOUSTON 27 June 2018Associate Professor Celeste LAWSON 11 April 2018 Mr Mark PETERSMr Graham CARPENTER (26 May 2018) Mr Adrian MILLER 29 August 2018Ms Mary CARROLL (9 February 2018) Mr Gerard ILOTT 1 February 2018Emeritus Professor Robert CASTLE Mr Bruce YOUNG Mr Peter CORONES AM Mr Shirish PANDEY (6 July 2018)Dr Rochelle MACDONALD 27 May 2018 Mr Vindhya Raj POKHAREL 13 August 2018

Key Executive Management Personnel (Executive Officers) Appointed / (Ceased)Professor Scott BOWMAN Ms Narelle PEARSEProfessor Andrew BRIDGES (20 July 2018) Ms Joanne PERRYProfessor Fiona COULSON 23 April 2018 Professor Grant STANLEYMr Alastair DAWSON Professor Pierre VILJOENProfessor Helen HUNTLY

The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the University during 2018. Further information on these positions can be found in the body of the annual report. Professor Scott Bowman resigned from the University effective 1 February 2019 and Professor Nicholas Klomp commenced as the new Vice Chancellor and President on 4 February 2019.

The foreign currency revaluation reserve relates to the translation of the results and position of CQU Development Ptd Ltd whose functional and presentation currency is Singapore dollars into the group accounts which are presented in Australian dollars.

The property, plant and equipment revaluation surplus includes the net revaluation increments and decrements arising from the revaluation.

Investments in equity instruments designated at FVOCI (2017: Available for sale financial assets) reserve represents fair value movements in equity instruments designated at FVOCI.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000



CONSOLIDATED PARENT

NOTE 23. KEY MANAGEMENT PERSONNEL DISCLOSURES (cont.)(B) Remuneration of council members, executives and key management personnel

Short term employee benefits 3,353 3,066 3,353 3,066Long term employee benefits 121 113 121 113Post employment benefits 523 445 523 445Performance payment - 183 - 183Total remuneration 3,997 3,807 3,997 3,807

Remuneration of council members No. No. No. No.nil to $14,999 8 6 8 6 $15,000 - $29,999 4 1 4 1 $30,000 - $44,999 4 5 4 5 $45,000 - $59,999 2 1 2 1 $75,000 - $89,999 1 1 1 1

Remuneration of executives and key management personnel$30,000 - $44,999 - 1 - 1$60,000 - $74,999 - 1 - 1$180,000 - $194,999 1 - 1 -$285,000 - $299,999 1 - 1 -$300,000 - $314,999 - 2 - 2$330,000 - $344,999 - 1 - 1$345,000 - $359,999 - 1 - 1$360,000 - $374,999 1 1 1 1 $375,000 - $389,999 3 - 3 - $390,000 - $404,999 1 1 1 1 $435,000 - $449,999 - 1 - 1$465,000 - $479,999 1 - 1 -$690,000 - $704,999 1 - 1 -$825,000 - $839,999 - 1 - 1

(C) Performance payments

(D) Loans to key management personnelNo loans were made to any key management personnel during the period.

Council members of Central Queensland University receive remuneration in accordance with the University's Council Remuneration Policy. For council members who are also staff, their remuneration payments for their substantive position have been excluded.

Remuneration policies for key executive management personnel are set by the University Council. The remuneration and other terms of employment for the key executive management personnel are specified in individual employment contracts. The contracts provide for the provision of other benefits where applicable.

Performance payments are made on achievement of pre-determined individual performance targets as agreed and approved by the relevant approving authority.

No performance payments were paid or payable during the year (2017: $0.183m paid, nil payable).



2018 2017 2018 2017

$'000 $'000 $'000 $'000

NOTE 24. REMUNERATION OF AUDITORS

During the year the following fees were paid for services provided by the auditor of the parent entity and its controlled entities.

Assurance services1. Audit servicesFees paid to the Auditor-General of Queensland:

Audit and review of financial reports under the Financial Accountability Act 2009 233 252 212 231Total remuneration for audit services 233 252 212 231

NOTE 25. CONTINGENCIES

Contingent liabilities

NOTE 26. COMMITMENTS(A) CAPITAL COMMITMENTS

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Property, plant and equipmentPayable:

Within one year 13,066 10,531 13,066 10,53113,066 10,531 13,066 10,531

IntangiblesPayable:

Within one year 130 - 130 -130 - 130 -

Total capital commitments 13,196 10,531 13,196 10,531

(B) LEASE COMMITMENTS

Operating leasesCommitments in relation to non-property leases contracted for at the reporting date but not recognised in liabilities:Payable:

Within one year 547 70 544 70Later than one year but not later than five years 917 23 910 23

1,464 93 1,454 93

Payable:

Within one year 22,420 20,095 22,420 20,095

Later than one year but not later than five years 71,896 75,885 71,896 75,885

Later than five years 87,025 91,976 87,025 91,976

181,341 187,956 181,341 187,956

Total operating lease commitments 182,805 188,049 182,795 188,049

(C) OTHER EXPENDITURE COMMITMENTS

Payable:

Within one year 31,803 30,289 31,803 30,289

Total other expenditure commitments 31,803 30,289 31,803 30,289



CONSOLIDATED PARENT

Consultation with the University's staff and insurers has indicated five (5) pending issues which may result in a claim against the University. These relate to one (1) possible personal injury claim against the University and four (4) other potential claims against the University covering a variety of issues. It is difficult to quantify the financial impact of these potential claims, as the amount payable for these claims, if any, would be reduced by any payout received from the University's insurers. No material amounts are expected to be paid in relation to these matters as at 31 December 2018.

Commitments for operating leases for leased campus buildings in existence at the reporting date but not recognised as liabilities.





NOTE 26. COMMITMENTS (cont.)

Accounting Policy

NOTE 27. RELATED PARTIES

(A) PARENT ENTITY

(B) SUBSIDIARIES

Interest in subsidiaries are set out in Note 28.

(C) KEY MANAGEMENT PERSONNEL

Disclosures relating to council members and specified executives are set out in Note 23.

2018 2017 2018 2017

$'000 $'000 $'000 $'000

(D) TRANSACTIONS WITH RELATED PARTIES

The following transactions occurred with related parties:

Revenue received from controlled entities

General - - 68 66

Return of capital - - - 50

Revenue received from other related parties

Contract research 288 319 288 319

Training revenue 27 43 27 43

General 87 54 87 54

Expenses paid to controlled entities

Commission - - 177 158

Booking fee - - 296 292

General - - 743 292

Expenses paid to other related parties

Operating lease expense 86 85 86 85

Grants expense 85 41 85 41

General 71 56 71 56

The parent entity is Central Queensland University which at 31 December 2018 owned 100% of Australian International Campuses Pty Ltd, Australian International Campuses Trust, C Management Services Pty Ltd, CQU Travel Centre Pty Ltd, DataMuster Pty Ltd, Mask-Ed International Pty Ltd andCQU Development Pte Ltd. At 31 December 2017, Central Queensland University owned 100% of the same related parties mentioned above exceptfor DataMuster Pty Ltd which was incorporated during 2018.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.

Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred.

The consolidated entity leases plant and equipment under non-cancellable operating leases expiring from 1 to 5 years. There are no provisions for contingent rentals within the existing operating leases. There are no provisions within the agreements for additional debt.

CONSOLIDATED PARENT




2018 2017 2018 2017

$'000 $'000 $'000 $'000

NOTE 27. RELATED PARTIES (cont.)(E) OUTSTANDING BALANCES

The following balances are outstanding at the reporting date in relation to transactions with related parties:

Current receivablesControlled entities (Trade receivable) - - 18 -

Non-current receivablesAssociates 85 85 - -

Current payablesControlled entities - - 71 27

(F) GUARANTEESNo guarantees have been granted in relation to any party.

(G) TERMS AND CONDITIONS

NOTE 28. SUBSIDIARIES

Basis of consolidation - subsidiaries

NAME OF ENTITY AND PRINCIPAL ACTIVITIESCOUNTRY OF INCOR-PORATION

CLASS OF SHARES

2018 2017% %

AUSTRALIAN INTERNATIONAL CAMPUSES PTY LTD Australia Ord 100 100

The principal activity of the company is to act as "Trustee" for the Australian International Campuses Trust

AUSTRALIAN INTERNATIONAL CAMPUSES TRUST Australia Ord 100 100The trust was established for the benefit of the Unitholder being, Central Queensland University, to hold in trust the shareholdings in the companies that ran the Central Queensland University Australian International Campuses.

C MANAGEMENT SERVICES PTY LTD Australia Ord 100 100

This company ceased trading as at the end of October 2013. The principal activity of the Company was to deliver Central Queensland University academic product to international students at the Sydney, Melbourne, Brisbane and Gold Coast international campuses.

CQU TRAVEL CENTRE PTY LTD Australia Ord 100 100The principal activity of the company during the financial year was a licenced international travel agency and provider of education travel in Australia.

DATAMUSTER PTY LTD Australia Ord 100 -This company was established for the purpose of commercialising Intellectual Property developed by a member of staff. The company was incorporated in 2018. It is in the early stages of commencing commercial operations.

MASK-ED INTERNATIONAL PTY LTD Australia Ord 100 100

The company was established for the purpose of commercialising Intellectual Property developed by a member of staff. The company was incorporated during 2011. It has not yet commenced commercial operations.

CQU DEVELOPMENT PTE LTD Singapore Ord 100 100

The company is domiciled in Singapore. The principle activity is the recruitment of international students from the South East Asia region to study at Central Queensland University in Australia.

EQUITY HOLDING

CONSOLIDATED PARENT

Transactions were made on normal commercial terms and conditions and at market rates.

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy noted below.





2018 2017 2018 2017

$'000 $'000 $'000 $'000

NOTE 27. RELATED PARTIES (cont.)(E) OUTSTANDING BALANCES

The following balances are outstanding at the reporting date in relation to transactions with related parties:

Current receivablesControlled entities (Trade receivable) - - 18 -

Non-current receivablesAssociates 85 85 - -

Current payablesControlled entities - - 71 27

(F) GUARANTEESNo guarantees have been granted in relation to any party.

(G) TERMS AND CONDITIONS

NOTE 28. SUBSIDIARIES

Basis of consolidation - subsidiaries

NAME OF ENTITY AND PRINCIPAL ACTIVITIESCOUNTRY OF INCOR-PORATION

CLASS OF SHARES

2018 2017% %

AUSTRALIAN INTERNATIONAL CAMPUSES PTY LTD Australia Ord 100 100

The principal activity of the company is to act as "Trustee" for the Australian International Campuses Trust

AUSTRALIAN INTERNATIONAL CAMPUSES TRUST Australia Ord 100 100The trust was established for the benefit of the Unitholder being, Central Queensland University, to hold in trust the shareholdings in the companies that ran the Central Queensland University Australian International Campuses.

C MANAGEMENT SERVICES PTY LTD Australia Ord 100 100

This company ceased trading as at the end of October 2013. The principal activity of the Company was to deliver Central Queensland University academic product to international students at the Sydney, Melbourne, Brisbane and Gold Coast international campuses.

CQU TRAVEL CENTRE PTY LTD Australia Ord 100 100The principal activity of the company during the financial year was a licenced international travel agency and provider of education travel in Australia.

DATAMUSTER PTY LTD Australia Ord 100 -This company was established for the purpose of commercialising Intellectual Property developed by a member of staff. The company was incorporated in 2018. It is in the early stages of commencing commercial operations.

MASK-ED INTERNATIONAL PTY LTD Australia Ord 100 100

The company was established for the purpose of commercialising Intellectual Property developed by a member of staff. The company was incorporated during 2011. It has not yet commenced commercial operations.

CQU DEVELOPMENT PTE LTD Singapore Ord 100 100

The company is domiciled in Singapore. The principle activity is the recruitment of international students from the South East Asia region to study at Central Queensland University in Australia.

EQUITY HOLDING

CONSOLIDATED PARENT

Transactions were made on normal commercial terms and conditions and at market rates.

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy noted below.



NOTES

2018 2017 2018 2017

$'000 $'000 $'000 $'000

NOTE 28. SUBSIDIARIES (cont.)

Basis of consolidation - subsidiaries (cont.)

NOTE 29. EVENTS OCCURRING AFTER THE END OF THE REPORTING PERIOD

There are no material matters which have arisen subsequent to year end that significantly impact upon the operations of the University.

NOTE 30. RECONCILIATION OF NET RESULT AFTER INCOME TAX TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES

Net result for the year 269 16,705 79 16,529

Depreciation and amortisation 18,19 23,655 21,443 23,654 21,443

Investment related adjustments 49 46 49 46

Fair value losses on other financial assets at FVTPL 15 930 - 930 -

Impairment of assets - 10 - 10

Net gain / (loss) on sale of non-current assets 974 396 974 396

Net gain / (loss) on sale of investment properties - 53 - 53

Net exchange differences (33) (46) (23) (46)

Share of profits of associates not received as dividends or distributions (11) 6 - -

Change in operating assets and liabilities:

(Increase) / decrease in receivables 1,177 (1,035) 1,230 (1,026)

(Increase) / decrease in inventories 72 106 72 106

(Increase) / decrease in other operating assets (2,770) (2,450) (2,743) (2,436)

Increase / (decrease) in trade creditors (388) 3,092 (415) 3,093

Increase / (decrease) in other operating liabilities 6,169 4,340 6,143 4,306

Increase / (decrease in other provisions (1,009) 5,075 (1,018) 5,043

Increase / (decrase) in provision for income tax payable (22) (39) - -

Net cash inflow / (outflow) from operating activities 29,062 47,702 28,932 47,517



CONSOLIDATED PARENT

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Central Queensland University ('parent entity') as at 31 December 2018 and all the results of all subsidiaries for the year then ended. Central Queensland University and its subsidiaries together are referred to in these financial statements as the Group or the consolidated entity.

Subsidiaries are those entities (including structured entities) over which the Group has control. The Group has control over an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Power over the investee exists when the Group has existing rights that give it current ability to direct the relevant activities of the investee. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Returns are not necessarily monetary and can be only positive, only negative or both positive and negative.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.





NOTE 31. FINANCIAL RISK MANAGEMENT

The Group's activities expose it to a variety of financial risks, as follows:

(A) MARKET RISK

(i) Foreign exchange risk

Fees charged to overseas students are denominated in Australian dollars.

(ii) Price risk

(iii) Cash flow and fair value interest rate risk.

(iv) Summarised sensitivity analysisThe following tables summarise the sensitivity of the Group's financial assets and financial liabilities to interest rate risk and other price risk. Theconsolidated entity is operating in Singapore which may result in a minimal increase in risk. As the Group is subject to negligible foreign exchangerisk, sensitivity analysis of this risk has been excluded.

Foreign currency risk arises when commercial transactions and recognised assets and liabilities are denominated in a currency that is not the entity'sfunctional currency. The consolidated entity operates internationally and is exposed to an immaterial foreign exchange risk arising from currency exposure to the Singapore dollar.

Price risk arises when the value of a financial instrument fluctuates as a result of changes in market prices. The Group prices goods and services based on a combination of cost recovery, or market forces depending on the type of item supplied. The Group's two biggest exposures to competitive market movements in price levels are for (a) its market based investment with QIC where funds are invested in the QIC Growth Fund and (b) its shareholdings in Education Australia Ltd and AARNet Pty Ltd. The Group monitors its investments and provides regular reports to management and University Council for high level review and action as required.

Interest rate risk is the risk (variability in value) borne by an interest-bearing asset due to the variability of interest rates. The Group minimises itsexposure to fluctuating market interest rates by diversifying its investments in both cash and short term funding with Queensland Treasury Corporation (QTC). It regularly reviews its investments and markets to obtain best interest rates. The Group does not have any borrowings whichare subject to interest rate risk.


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NOTE 31. FINANCIAL RISK MANAGEMENT (cont.)

(B) CREDIT RISK

CURRENT TOTAL

31 DECEMBER 2018 <30 days 31-60 days 61-74 days 75-120 days >120 days

Expected credit loss rate 0.5% 2.0% 5.0% 7.5% 10.0% 12.5%Estimated total gross carrying amount at default 2,690 1,482 642 76 853 2,767 8,510Expected credit loss 13 30 32 6 85 353 519

CURRENT TOTAL

1 JANUARY 2018 <30 days 31-60 days 61-74 days 75-120 days >120 days

Expected credit loss rate 0.5% 2.5% 5.0% 7.5% 10.0% 12.5%Estimated total gross carrying amount at default 1,136 943 4,333 76 594 2,429 9,511Expected credit loss 5 22 217 6 59 304 613

(C) LIQUIDITY RISKThe following tables summarise the maturity of the Group's financial assets and financial liabilities.

CONSOLIDATED AVERAGE INTEREST

RATE

FLOATING INTEREST

RATE

1 YEAR OR LESS

1 TO 5 YEARS

OVER 5 YEARS

NON-INTEREST BEARING

TOTAL

31 DECEMBER 2018 % $'000 $'000 $'000 $'000 $'000 $'000FINANCIAL ASSETS

Cash and cash equivalents 2.00% 129,173 - - - 323 129,496Receivables - - - - 24,684 24,684Other financial assets

Investments in debt instruments designated at FVTPL

- - - - 13,516 13,516

Investments in equity instruments designated at FVOCI

- - - - 29,930 29,930

Other financial assets at amortised cost 2.68% - - 400 - - 400

TOTAL FINANCIAL ASSETS 129,173 - 400 - 68,453 198,026FINANCIAL LIABILITIES

Payables - - - - 24,572 24,572

TOTAL FINANCIAL LIABILITIES - - - - 24,572 24,572

Net financial assets / (liabilities) 129,173 - 400 - 43,881 173,454

Financial instruments and cash depositsCredit risk from balances with banks and financial institutions is managed by the Group in accordance with Central Queensland University's investment policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Audit, Risk and Finance Committee on an annual basis, and may be updated throughout the year subject to committee approval. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through a counterparty's potential failure to make payments.

FIXED INTEREST MATURING IN:

The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions andindustries and operate in largely independent markets.

Set out below is the information about the credit risk exposure on the Group's receivables using a provision matrix:RECEIVABLES

DAYS PAST DUE

RECEIVABLESDAYS PAST DUE

The Group's maximum exposure to credit risk for the components of the statement of financial position at 31 December 2018 and 2017 is the carrying amounts as illustrated in Note 15.



Credit risk arises from the potential failure of students, other customers and other contractual counterparties to meet their obligations under therespective contracts. The Group has a collections policy in place to manage the collection of accounts receivable. A provision for impairedreceivables has been established. Detailed information on the Group's impaired receivables is contained in Note 14.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates arebased on days past due for groupings of customers with similar loss patterns (i.e., trade and student fees receivable). The calculation reflects theprobability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about pastevents, current conditions and forecasts of future economic conditions. Generally, trade receivables are written-off when recovery procedures haveproven unsuccessful and futher action is either not cost effective or highly unlikely to succeed. The maximum exposure to credit risk at the reportingdate is the carrying value of each class of financial assets disclosed in the notes above.





NOTE 31. FINANCIAL RISK MANAGEMENT (cont.)(C) LIQUIDITY RISK (cont.)

CONSOLIDATED AVERAGE INTEREST

RATE

FLOATING INTEREST

RATE

1 YEAR OR LESS

1 TO 5 YEARS

OVER 5 YEARS

NON-INTEREST BEARING

TOTAL

31 DECEMBER 2017 % $'000 $'000 $'000 $'000 $'000 $'000FINANCIAL ASSETS

Cash and cash equivalents 2.00% 130,183 - - - 158 130,341Receivables - - - - 24,654 24,654Other financial assets:

QIC Unit trust - - - - 13,884 13,884Unlisted shares - - - - 15,724 15,724Listed shares - - - - 1,120 1,120

TOTAL FINANCIAL ASSETS 130,183 - - - 55,540 185,723FINANCIAL LIABILITIES

Payables - - - - 22,507 22,507

TOTAL FINANCIAL LIABILITIES - - - - 22,507 22,507

Net financial assets / (liabilities) 130,183 - - - 33,032 163,216

FIXED INTEREST MATURING IN:



NOTE 32. FAIR VALUE MEASUREMENTS

(A) FAIR VALUE MEASUREMENTS

CONSOLIDATED

2018 2017 2018 2017NOTES $'000 $'000 $'000 $'000

OTHER FINANCIAL ASSETSInvestments in debt instruments designated at FVTPL 15 13,516 - 13,516 -

Investments in equity instruments designated at FVOCI: 15 29,930 - 29,930 -

Other financial assets at amortised cost 15 400 - 400 -

Available for sale assets 15 - 30,728 - 30,728

Total other financial assets 43,846 30,728 43,846 30,728

FINANCIAL LIABILITIESPayables 19 24,572 22,507 24,572 22,507

Total financial liabilities 24,572 22,507 24,572 22,507

▪ Financial assets at FVTPL▪ Financial assets at FVOCI ▪ Available for sale financial assets (2017)▪ Land, buildings and infrastructure▪ Artwork and collections▪ Investment properties

(i) Disclosed fair values

(B) FAIR VALUE HIERARCHYThe Group categorises assets and liabilities measured at fair value into a hierarchy based on the level of inputs used in measurement.



The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

Due to the short-term nature of the cash and cash equivalents, current receivables and payables, their carrying value approximates their fair valueand based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.

The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:

CARRYING AMOUNT FAIR VALUE

The Group measures and recognises the following assets and liabilities at fair value on a recurring basis:

The Group has assets and liabilities which are not measured at fair value, but for which the fair values are disclosed in the notes.

The fair value of assets traded in active markets (such as listed debt and listed equity instruments) as disclosed in Note 15 is based on quoted market prices for identical assets at the end of the reporting period (level 1). This is the most representative of fair value in the circumstances. In the absence of quoted market prices, the fair value of assets (such as unlisted equity instruments) as disclosed in Note 15 is determined by management valuation (level 3).

The carrying value less impairment provision of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables and payables. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rates that is available to the Group for similar financial instruments (level 3).

LEVEL 1 - quoted prices (unadjusted) in active markets for identical assets or liabilitiesLEVEL 2 - inputs other than quoted prices within level 1 that are observable for the asset or liability either directly or indirectlyLEVEL 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)





NOTE 32. FAIR VALUE MEASUREMENTS (cont.)(B) FAIR VALUE HIERARCHY (cont.)(i) Recognised fair value measurementsFair value measurements recognised in the statement of financial position are categorised into the following levels at 31 December 2018.

Fair value measurement at 31 December 2018 CONSOLIDATEDRecurring fair value measurements

2018 LEVEL 1 LEVEL 2 LEVEL 3NOTES $'000 $'000 $'000 $'000

OTHER FINANCIAL ASSETSOther financial assets at FVTPL 15 13,516 13,516 - -

Other financial assets at FVOCI 15 29,930 1,034 - 28,896

Total other financial assets 43,446 14,550 - 28,896

NON-FINANCIAL ASSETSLand, buildings and infrastructure 17 492,612 - - 492,612Artwork and collections 17 4,303 - - 4,303Investment properties 16 2,156 - 2,156 -

Total non-financial assets 499,071 - 2,156 496,915

Fair value measurement at 31 December 2017 CONSOLIDATEDRecurring fair value measurements

2017 LEVEL 1 LEVEL 2 LEVEL 3NOTES $'000 $'000 $'000 $'000

FINANCIAL ASSETSAvailable for sale financial assets 15

QIC Unit trust 13,884 13,884 - -Unlisted shares 15,724 - - 15,724Listed shares 1,120 1,120 - -

Total financial assets 30,728 15,004 - 15,724NON-FINANCIAL ASSETS

Land, buildings and infrastructure 17 514,389 - - 514,389Artwork and collections 17 3,853 - - 3,853Investment properties 16 2,085 - - 2,085

Total non-financial assets 520,327 - - 520,327

(C) VALUATION TECHNIQUES USED TO DERIVE LEVEL 2 AND LEVEL 3 FAIR VALUES(i) Recurring fair value measurements

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. For transfers in and out of level 3 measurements see (D) below.

The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

Land, buildings and infrastructure are valued independently at least every three years (comprehensive) and every year (desktop) in between comprehensive valuations. Investment properties are valued independently each year. At the end of each reporting period, the Group updates its assessment of the fair value of each property, taking into account the most recent independent valuations. The Group determines the property's value within a range of reasonable fair value estimates.




NOTE 32. FAIR VALUE MEASUREMENTS (cont.)(C) VALUATION TECHNIQUES USED TO DERIVE LEVEL 2 AND LEVEL 3 FAIR VALUES (cont.)(i) Recurring fair value measurements (cont.)

(ii) Non-recurring fair value measurements

(D) FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)The following table is a reconciliation of level 3 items for the periods ended 31 December 2018 and 2017:

SHARES IN EDUCATION AUSTRALIA

LTD

SHARES IN AARNET PTY

LTD

OTHER LEVEL 3 ASSETS

TOTAL

$'000 $'000 $'000 $'000LEVEL 3 FAIR VALUE MEASUREMENTS 2018Opening balance 15,610 1 6,140 536,142Retrospective restatements - 5,550 - 5,550Transfer to Level 2 - - (2,173) (2,173)Acquisitions - - 117 9,099Sales / Disposals - - (1) (452)Recognised in profit or loss - - - (8,773)Recognised in other comprehensive income 7,324 372 261 (13,581)Closing balance 22,934 5,923 4,344 525,812

LEVEL 3 FAIR VALUE MEASUREMENTS 2017Opening balance 11,027 - 6,455 500,583Transfer to Level 2 - - - -Acquisitions - - 306 5,693Sales / Disposals - - (613) (730)Recognised in profit or loss - - - (8,839)Recognised in other comprehensive income 4,583 - (7) 39,435Closing balance 15,610 1 6,140 536,142

- Capitalised income projections based on a property's estimated net market income, and a capitalisation rate derived from an analysis of marketevidence.

The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available the University considers information from a variety of sources, including:

- Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflectthose differences.

- Discounted cash flow projections based on reliable estimates of future cash flows.

(8,773)

All resulting fair value estimates for properties are included in level 3.

Valuations of the residential investment properties in Emerald included sales data comparisons and adjustments to reflect each property's conditions and location. Inputs for these properties have been assigned as Level 2 (2017: Level 3).

Specialised buildings were valued using the cost approach using professionally qualified Registered Valuers. The approach estimated replacement cost for each building, componentising the buildings into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on square metres could be supported from market evidence (level 2) other inputs (such as useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs.

The Group's major infrastructure assets are unique in design or there was insufficient observable market evidence to support the valuation. As a result the valuation was performed using the cost approach. The approach estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on similar capacity could be supported from market evidence (level 2) other inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs.

The University did not measure any financial assets at fair value on a non-recurring basis as at the end of the reporting period.

LAND BUILDINGS AND INFRA-STRUCTURE

514,391--

8,982(451)

(21,537)492,612

483,101-

5,387(117)

(8,839)34,859

514,391





NOTE 32. FAIR VALUE MEASUREMENTS (cont.)(C) VALUATION TECHNIQUES USED TO DERIVE LEVEL 2 AND LEVEL 3 FAIR VALUES (cont.)(i) Recurring fair value measurements (cont.)

(ii) Non-recurring fair value measurements

(D) FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)The following table is a reconciliation of level 3 items for the periods ended 31 December 2018 and 2017:

SHARES IN EDUCATION AUSTRALIA

LTD

SHARES IN AARNET PTY

LTD

OTHER LEVEL 3 ASSETS

TOTAL

$'000 $'000 $'000 $'000LEVEL 3 FAIR VALUE MEASUREMENTS 2018Opening balance 15,610 1 6,140 536,142Retrospective restatements - 5,550 - 5,550Transfer to Level 2 - - (2,173) (2,173)Acquisitions - - 117 9,099Sales / Disposals - - (1) (452)Recognised in profit or loss - - - (8,773)Recognised in other comprehensive income 7,324 372 261 (13,581)Closing balance 22,934 5,923 4,344 525,812

LEVEL 3 FAIR VALUE MEASUREMENTS 2017Opening balance 11,027 - 6,455 500,583Transfer to Level 2 - - - -Acquisitions - - 306 5,693Sales / Disposals - - (613) (730)Recognised in profit or loss - - - (8,839)Recognised in other comprehensive income 4,583 - (7) 39,435Closing balance 15,610 1 6,140 536,142

- Capitalised income projections based on a property's estimated net market income, and a capitalisation rate derived from an analysis of marketevidence.

The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available the University considers information from a variety of sources, including:

- Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflectthose differences.

- Discounted cash flow projections based on reliable estimates of future cash flows.

(8,773)

All resulting fair value estimates for properties are included in level 3.

Valuations of the residential investment properties in Emerald included sales data comparisons and adjustments to reflect each property's conditions and location. Inputs for these properties have been assigned as Level 2 (2017: Level 3).

Specialised buildings were valued using the cost approach using professionally qualified Registered Valuers. The approach estimated replacement cost for each building, componentising the buildings into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on square metres could be supported from market evidence (level 2) other inputs (such as useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs.

The Group's major infrastructure assets are unique in design or there was insufficient observable market evidence to support the valuation. As a result the valuation was performed using the cost approach. The approach estimated the replacement cost for each asset by componentising the assets into significant parts with different useful lives and taking into account a range of factors. While the unit rates based on similar capacity could be supported from market evidence (level 2) other inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition) required extensive professional judgement and impacted significantly on the final determination of fair value. As such these assets were classified as having been valued using level 3 valuation inputs.

The University did not measure any financial assets at fair value on a non-recurring basis as at the end of the reporting period.

LAND BUILDINGS AND INFRA-STRUCTURE

514,391--

8,982(451)

(21,537)492,612

483,101-

5,387(117)

(8,839)34,859

514,391



NOTE 32. FAIR VALUE MEASUREMENTS (cont.)

(D) FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) (cont.)

(i) Valuation inputs and relationships to fair value

FAIR VALUE AT

31 DEC 2018$'000 LOWER UPPER LOWER UPPER

Buildings 431,377 Relationship between asset consumption rating scale and the level of consumed service potential. -2.50% 2.50% (10,784) 10,784

Infrastructure 30,824Value derived by depreciating replacement cost taking into account age, construction, condition and estimated residual life.

-2.50% 2.50% (771) 771

Unlisted shares - Education Australia Ltd (included in Other Financial Assets)

22,933

Net assets of unlisted Education Australia Ltd, adjusted for the listed share price of IDP Australia Ltd as at 31 December 2018.

A 30% discount has been applied to shares held by Education Australia Ltd in listed equity IDP Australia Ltd to reflect the restrictive shareholder agreement and liquidity of the market should a significant number of Universities sell their shareholdings.

-2.50% 2.50% (573) 573

Unlisted shares - AARNet Pty Ltd (included in Other Financial Assets)

5,923 Net assets of AARNet Pty Ltd at 31 December 2018 based on management accounts.

-2.50% 2.50% (148) 148

*There were no significant inter-relationships between unobservable inputs that materially affects fair value.

(ii) Valuation processes

The three main level 3 inputs used are derived and evaluated as follows:

Asset condition - the nature of infrastructure assets is that there are a very large number of assets which comprise the network and as a result it is not physically possible to inspect every asset for the purposes of completing a valuation. As a consequence reliance is placed on the accuracy of data held in the asset management system and its associated internal controls. This includes regular planning inspections and updates to the system following maintenance activities and renewal treatments.



The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (C)above for the valuation techniques adopted.

DESCRIPTION UNOBSERVABLE INPUTS*

RANGE OF INPUTS (PROBABILITY

WEIGHTED AVERAGE ETC.)

RELATIONSHIP OF UNOBSERVABLE

INPUTS TO FAIR VALUE

The valuation process is managed by a team in the Group's Finance and Planning Division which engages external valuers to perform the valuations of assets required for reporting purposes. The finance team reports to the Deputy-Vice Chancellor (Finance and Planning). Discussion on valuation processes are held every 12 months including changes in level 2 and 3 fair values.

The Group engages external, independent and qualified valuers to determine the fair value of university land, buildings, infrastructure and investment properties on a regular basis (minimum three years). An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. If any variation is considered material a revaluation is undertaken either by comprehensive revaluation of by applying interim revaluation using appropriate indicies.

Buildings, infrastructure and land were last independently valued (comprehensive valuation) to fair value as at 31 October 2018 by L Black (Registered Valuer No. 2913), D Atherton (Registered Valuer No. 2962), A Ponticello (Registered Valuer No. 1816) and J Weerasinghe all from APV Valuers & Asset Management and management assessment. Artworks and collection were last independently valued (desktop valuation) to fair value as at 31 October 2018 by J Harbeck, Australian Government Cultural Gifts Program Valuer and management assessment. Assets acquired after the comprehensive revaluation by independent valuer are not revalued and are carried at cost. Therefore fair value of these additional assets are based on management assessment.

Relationship between asset consumption rating scale and the level of consumed service potential - under the cost approach, the estimated cost to replace the asset is calculated and then adjusted to take account of an accumulated depreciation. In order to achieve this, the valuer determines an asset consumption rating scale for each asset type based on the inter-relationship between a range of factors. These factors and their relationship to the fair value require professional judgement and include asset condition, legal and commercial obsolescence and the determination of key depreciation related assumptions such as useful life and pattern of consumption of the future economic benefit.

The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and were then updated to take into account the experience and understanding of the Group's own asset management and finance staff. The results of the valuation were further evaluated by confirmation against the Group's own understanding of the assets and the level of remaining service potential.

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NOTE 33. ACQUITTAL OF AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE (cont.)

PARENT ENTITY

NOTES 2018 2017$'000 $'000

33.6 Other Australian Government Financial Assistance

Cash received during the reporting period 1,343 1,441Cash spent during the reporting period (1,347) (667)Net cash received (4) 774Cash surplus / (deficit) from the previous period 842 68

Cash surplus / (deficit) for the reporting period 838 842

33.7 OS-HELP

Cash received during the reporting period 872 958Cash spent during the reporting period (819) (486)Net cash received 53 472Cash surplus / (deficit) from the previous period 668 196

Cash surplus / (deficit) for the reporting period 19 721 668

33.8 Student Services and Amenities Fee

Unspent / (overspent) revenue from previous period 8,319 7,730SA-HELP revenue earned 3(B) 2,049 2,181Student Services and Amenities Fees direct from students 5 2,459 2,032Total revenue expendable in period 12,827 11,943Student services expenses during the period (7,103) (3,624)

Unspent / (overspent) student services revenue 5,724 8,319




CENTRAL QUEENSLAND UNIVERSITYMANAGEMENT CERTIFICATE

We have prepared the annual financial statements pursuant to the provisions of the Financial Accountability Act 2009 and other prescribed requirements and we certify that –

(a) The financial statements are in agreement with the accounts and records of the Central Queensland University; and

(b) In our opinion –

i. The prescribed requirements in respect of the establishment and keeping of accounts have been compiled with in all material respects;

ii. The financial statements have been drawn up to present a true and fair value of the transactions of Central Queensland University for the period 1 January 2018 to 31 December 2018, and the financial position as at 31 December 2018 in accordance with prescribed accounting standards and conform with the Guidelines for the Preparation of Annual Financial Statements issued by the Department of Education and Training;

iii. At the time of this Certificate there are reasonable grounds to believe that the University will be able to pay its debts as and when they fall due;

iv. The amount of Australian government financial assistance expended during the year was for the purposes for which it was provided;

v. The requirements of applicable legislation, contracts, agreements and programme guidelines that apply to the Australian government financial assistance identified in these financial statements have been complied with; and

vi. Student Services and Amenities Fees have been charged strictly in accordance with the Higher Education Support Act 2003 and the Administration Guidelines made under the Act. Revenue from the fee was spent

strictly in accordance with the Act and only on services and amenities specified in subsection 19-38(4) of the Act.

Mr. J. AbbottChancellorDate: 19 February 2019

Professor N. Klomp Vice-Chancellor and President Date: 19 February 2019

Ms N. PearseDeputy Vice-Chancellor (Finance and Planning)Date: 19 February 2019


INDEPENDENT AUDITOR’S REPORT

To the Council of Central Queensland University

Report on the audit of the financial report Opinion

I have audited the accompanying financial report of Central Queensland University (the parent) and its controlled entities (the group).

In my opinion, the financial report:

a) gives a true and fair view of the parent's and group's financial position as at 31 December 2018, and their financial performance and cash flows for the year then ended

b) complies with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009, the Australian Charities and Not-for-profits Commission Act 2012, the Australian Charities and Not-for-profits Commission Regulation 2013 and Australian Accounting Standards.

The financial report comprises the statements of financial position as at 31 December 2018, the income statements, statements of comprehensive income, statements of changes in equity and statements of cash flows for the year then ended, notes to the financial statements including summaries of significant accounting policies and other explanatory information, and the management certificate given by the Chancellor, Vice-Chancellor and President, and Deputy Vice-Chancellor (Finance and Planning).

Basis for opinion

I conducted my audit in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report.

I am independent of the parent and group in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 and with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code and the Auditor-General of Queensland Auditing Standards.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key audit matters

Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial report of the current period. I addressed these matters in the context of my audit of the financial report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.


Buildings Valuation ($431.4 million)

Refer to note 17 in the financial report.

Key audit matter How my audit addressed the key audit matter

Buildings were material to Central Queensland University at balance date and were measured at fair value using the current replacement cost method. The University performs a comprehensive revaluation of all of its buildings every three years, or whenever a material variation is expected to have occurred, with desktop valuations conducted in the intervening period. A comprehensive revaluation was conducted in 2018 by a valuation specialist. The current replacement cost method comprises:

• Gross replacement cost, less

• Accumulated depreciation The University derived the gross replacement cost of its buildings at balance date through using unit prices that required significant judgements for:

• Identifying the components of buildings with separately identifiable replacement costs

• Developing a unit rate for each of these components, including:

- Estimating the current cost for a modern substitute (including locality factors and oncosts), expressed as a rate per unit (e.g. $/square metre)

- Identifying whether the existing building contains obsolescence or less utility compared to the modern substitute, and if so estimating the adjustment to the unit rate required to reflect this difference.

The measurement of accumulated depreciation involved significant judgments for forecasting the remaining useful lives of building components.

The significant judgments for gross replacement cost and useful lives are also significant for calculating annual depreciation expense.

My procedures included, but were not limited to:

• Assessing the adequacy of managements review of the valuation process.

• Obtaining an understanding of the methodology used and assessing its design, integrity and appropriateness using common industry practices.

• Assessing the competence, capability and objectivity of the valuation specialist.

• On a sample basis, evaluating the relevance, completeness, and accuracy of source data used to derive unit costs including:

- Modern substitute

- Adjustment for excess quality or obsolescence.

• Assessing the ongoing reasonableness of the buildings’ useful lives by:

- Reviewing management’s annual assessment of useful lives.

- Assessing the appropriateness of useful lives where assets were disposed of prior to the end of their useful life.

• Reviewing assets with an inconsistent relationship between condition and remaining life

• Performing reasonableness tests to confirm depreciation is calculated in accordance with the University’s accounting policies and industry standards.

Other information

Other information comprises the information included in the University’s Council Member’s Report for the year ended 31 December 2018, but does not include the financial report and my auditor’s report thereon.

Those charged with governance are responsible for the other information.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.


In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Responsibilities of the entity for the financial report

The Council is responsible for the preparation of the financial report that gives a true and fair view in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009, the Australian Charities and Not-for-profits Commission Act 2012, the Australian Charities and Not-for-profits Commission Regulation 2013 and Australian Accounting Standards, and for such internal control as the Council determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

The Council is also responsible for assessing the parent's and group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless it is intended to abolish the parent or group or to otherwise cease operations.

Auditor’s responsibilities for the audit of the financial report

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial report, 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 my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of the parent's and group's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the group.


• Conclude on the appropriateness of the parent's and group's use of the going concern

basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent's or group's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. I base my conclusions on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the parent or group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the financial report. I am responsible for the direction, supervision and performance of the audit of the group. I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements In accordance with s.40 of the Auditor-General Act 2009, for the year ended 31 December 2018:

a) I received all the information and explanations I required.

b) In my opinion, the prescribed requirements in relation to the establishment and keeping of accounts were complied with in all material respects.

21 February 2019

Michelle Reardon Queensland Audit Office as delegate of the Auditor-General Brisbane


CAIRNS AND FAR NORTH QUEENSLAND REGION CQUniversity CairnsCnr Abbott and Shields Street, Cairns QLD 4870Phone: +61 7 4037 4777

CENTRAL HIGHLANDS REGION CQUniversity EmeraldCapricorn Highway, Emerald QLD 4720Phone: +61 7 4980 4111

GLADSTONE REGION CQUniversity Gladstone City25 Derby Street, Gladstone QLD 4680Phone: +61 7 4970 7277

CQUniversity Gladstone Marina613 Bryan Jordan Drive, Gladstone QLD 4680Phone: +61 7 4970 7277

CQUniversity Biloela Study Centre64 Valentine Plains Road, Biloela QLD 4715Phone: +61 7 4992 4477

MACKAY–WHITSUNDAY REGION CQUniversity Mackay City90–92 Sydney Street, Mackay QLD 4740Phone: +61 7 4940 7577

CQUniversity Mackay Ooralea151–171 Boundary Road, Mackay QLD 4740Phone: +61 7 4940 7577

NEW SOUTH WALES REGION CQUniversity Sydney400 Kent Street,Sydney NSW 2000Phone: +61 2 9324 5000

Cooma Study Service CentreCooma Universities Centre38 Bombala Street, Cooma NSW 2630Phone: +61 2 6452 3368

ROCKHAMPTON REGION CQUniversity Rockhampton City114–190 Canning Street,Rockhampton QLD 4700Phone: +61 7 4930 9000

CQUniversity Rockhampton North554–700 Yaamba Road, Norman Gardens QLD 4701Phone: +61 7 4930 9000

CQUniversity Yeppoon Study Centre26 Tabone Street, Yeppoon QLD 4703Phone: +61 7 4930 6200

SOUTH AUSTRALIA REGION CQUniversity Adelaide44 Greenhill Road, Wayville SA 5034Phone: +61 8 8378 4523

SOUTH EAST QUEENSLAND REGION CQUniversity Brisbane160 Ann Street, Brisbane QLD 4000Phone: +61 7 3295 1188

SUNSHINE COAST REGION CQUniversity Noosa90 Goodchap Street, Noosaville QLD 4566Phone: +61 7 5440 7000

TOWNSVILLE AND NORTH WEST QUEENSLAND REGION CQUniversity Townsville538 Flinders Street, Townsville QLD 4810 Phone: +61 7 4726 5300

CQUniversity Charters Towers Study Hub Charters Towers School of Distance Education15–23 Brisk Street, Charters Towers QLD 4820Phone: +61 7 4754 6888

VICTORIA REGION CQUniversity Melbourne120 Spencer Street, Melbourne VIC 3000Phone: +61 3 9616 0555

WESTERN AUSTRALIA REGION CQUniversity Perth10 William Street, Perth WA 6000Phone: +61 8 9260 4000

CQUniversity Broome Study HubRoom 4, North Regional TAFE68 Cable Beach Road, Broome WA 6725Phone: +61 408 974 911

CQUniversity Busselton Study Centre38 Peel Terrace, Busselton WA 6280Phone: +61 8 9260 4075

CQUniversity Geraldton Study CentreGeraldton Universities Centre33 Onslow Street, Geraldton WA 6530Phone: +61 8 9920 4400

CQUniversity Karratha Study HubRoom 701, North Regional TAFELot 2598 Dampier Highway, Karratha WA 6714Phone: +61 429 007 118

WIDE BAY BURNETT REGION CQUniversity BundabergUniversity Drive (off Isis Highway),Bundaberg QLD 4670Phone: +61 7 4150 7177

CQUNIVERSITY LOCATIONS


GLOSSARY 5RP 5 Minute Research Pitch

AHEIA Australian Higher Education Industrial Association

AIME Australian Indigenous Mentoring Experience program

AM Member of the Order of Australia

AO Officer of the Order of Australia

ARC Australian Research Council

ASQA Australian Skills Quality Authority

AVETMISS Australian Vocational Education and Training Management Information Statistical Standard

BHP Broken Hill Proprietary Company Limited

BROLGA Believe Respect Openness Learn Grow Achieve

CARTA Creative Arts Research Training Academy

CASE Council for Advancement and Support of Education

CLC Campus life committee

CoP Community of Practice

CQ Central Queensland

CQ TAFE Central Queensland TAFE

CQU CQUniversity

CRC Cooperative Research Centre

CRICOS Commonwealth Register of Institutions and Courses for Overseas Students

CVS Colour Vision Systems

E-DNA CQUniversity’s engagement database

EFTSL Equivalent full-time student load

ERA Excellence in Research for Australia

FFW CRC Fight Food Waste CRC

FTE Full-time equivalent

GREAT Get Real Education at TAFE

HDR Higher degree by research

HEPPP Higher Education Participation and Partnerships Program

HERDC Higher Education Research Data Collection

HND Higher National Diploma

ISB International Student Barometer

ITAS Indigenous Tutorial Assistance Scheme

KPI Key performance indicator

LNG Liquefied natural gas

MASK-ED A trade-marked teaching method using silicone props

MBA Master of Business Administration

MOOC Massive open online course

MOU Memorandum of understanding

NETA Noosa Education and Training Alliance

NHMRC National Health and Medical Research Council

NSW New South Wales

NVCER National Centre for Vocational Education Research

OAM Medal of the Order of Australia

PSM Public Service Medal

QAO Queensland Audit Office

QILT Quality Indicators for Learning and Teaching

QLD Queensland

QS Quacquarelli Symonds World University Rankings

RAP Reconciliation Action Plan

REC Region engagement committee

RHD Research higher degree

RTO Registered training organisation

SA South Australia

SES Socio-economic status

STEM Science, technology, engineering and mathematics

STEPS Skills for Tertiary Education Preparatory Studies

SUN Start Uni Now

TAC Tertiary admissions centre

TAFE Technical and Further Education

TEP Tertiary Entry Program

TEQSA Tertiary Education Quality and Standards Agency

VET Vocational education and training

VETiS VET in Schools

VIC Victoria

VR Virtual reality

WA Western Australia


COMPLIANCE CHECKLIST Summary of requirements Basis for requirement Annual report referenceLetter of compliance

» A letter of compliance from the accountable officer or statutory body to the relevant Minister/s

ARRs – section 7 Inside front cover

Accessibility » Table of contents » Glossary

ARRs– section 9.1 Inside front coverGlossary – page 113

» Public availability ARRs – section 9.2 Back cover

» Interpreter service statement Queensland Government Language Services PolicyARRs – section 9.3

Inside front cover

» Copyright notice Copyright Act 1968ARRs – section 9.4

Inside front cover

» Information Licensing QGEA – Information LicensingARRs – section 9.5

Inside front cover

General information

» Introductory Information ARRs – section 10.1 Objectives of CQUniversity’s annual report – Inside front coverYear in review – pages 1 to 2About CQUniversity – page 3Statistics – pages 46 to 49

» Agency role and main functions ARRs – section 10.2 About CQUniversity – page 3Organisation – pages 4 to 6Governance – pages 7 to 17Strategic intent and values – page 20Strategic Plan 2018–2022 – page 21Performance – pages 22 to 43

» Machinery of Government changes ARRs – section 31 and 32 Not applicable

» Operating environment ARRs – section 10.3 About CQUniversity – page 3Organisation – pages 4 to 6 Governance – pages 7 to 17Performance – pages 22 to 43

Non-financial performance

» Government’s objectives for the community

ARRs – section 11.1 Inside front cover

» Other whole-of-government plans / specific initiatives

ARRs – section 11.2 Not applicable

» Agency objectives and performance indicators

ARRs – section 11.3 Strategic Plan 2018–2022 – page 21 Performance – pages 22 to 43

» Agency service areas and service standards

ARRs – section 11.4 Strategic Plan 2018–2022 – page 21

Financial performance

» Summary of financial performance ARRs – section 12.1 Financial summary – pages 44 to 45

Governance – management and structure

» Organisational structure ARRs – section 13.1 Organisation – pages 4 to 8

» Executive management ARRs – section 13.2 Organisation – pages 5 to 9

» Government bodies (statutory bodies and other entities)

ARRs – section 13.3 Governance – pages 7 to 17University-controlled entities – page 16Other bodies (Non-controlled entities) – page 16

» Public Sector Ethics Act 1994 Public Sector Ethics Act 1994ARRs – section 13.4

Governance – pages 7 to 17 – refer to page 11

» Queensland public service values ARRs – section 13.5 Not applicable


Summary of requirements Basis for requirement Annual report referenceGovernance – risk management and accountability

» Risk management ARRs – section 14.1 Governance – pages 7 to 17 – refer to page 12 to 13

» Audit committee ARRs – section 14.2 Governance – pages 7 to 17 – refer to page 13 to 14

» Internal audit ARRs – section 14.3 Governance – pages 7 to 17 – refer to page 15

» External scrutiny ARRs – section 14.4 Governance – pages 7 to 17 – refer to page 15

» Information systems and recordkeeping

ARRs – section 14.5 Governance – pages 7 to 17 – refer to page12

Governance – human resources

» Strategic workforce planning and performance

ARRs – section 15.1 Workforce people and culture – pages 18 to 19; Employee profile – page 49

» Early retirement, redundancy and retrenchment

Directive No.11/12 Early Retirement, Redundancy and RetrenchmentDirective No.16/16 Early Retirement, Redundancy and Retrenchment (from 20 May 2016)ARRs – section 15.2

Workforce people and culture – pages 18 to 19 – refer to page 19

Open Data » Statement advising publication of information

ARRs – section 16 Back cover

» Consultancies ARRs – section 33.1 https://data.qld.gov.au

» Overseas travel ARRs – section 33.2 https://data.qld.gov.au

» Queensland Language Services Policy

ARRs – section 33.3 https://data.qld.gov.au

Financial statements

» Certification of financial statements FAA – section 62FPMS – sections 42, 43 and 50ARRs – section 17.1

Council members’ report – pages 50 to 52Financial statements – pages 53 to 106Management certificate – page 107

» Independent Auditor’s Report FAA – section 62FPMS – section 50ARRs – section 17.2

Financial statements – pages 53 to 106Independent Auditor’s Report – pages 108 to 111

FAA Financial Accountability Act 2009

FPMS Financial and Performance Management Standard 2009

ARRs Annual report requirements for Queensland Government agencies

CRICOS: 00219C | RTO: 40939 | J_BK_190001

PUBLIC AVAILABILITY CQUniversity’s Annual Report 2018 is available for download from the CQUniversity website, or by contacting CQUniversity by email or telephone to request a hard copy.

CQUniversity website: www.cqu.edu.au

Annual Report website: www.cqu.edu.au/about-us/governance/annual-report

CONTACT OFFICERMrs Joanne PerryDeputy Vice-Chancellor(Student Experience and Governance)CQUniversity AustraliaBruce HighwayRockhampton Qld 4702 AustraliaEmail: [email protected]: +61 7 4923 2856

ISSN 1839-2636

OPEN DATAOpen data information on CQUniversity’s consultancies and overseas travel (employees and students) is accessible from the Queensland Government Open Data website https://data.qld.gov.au/ or CQUniversity’s Annual Report website: www.cqu.edu.au/about-us/structure/governance/annual-report.

CONNECTwww.cqu.edu.au/connect

@CQUniversityAustralia

@CQUni

@CQUniversity

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