2006
2006
2006
the university of auckland
private Bag 92019
the university
auckland Mail centre
auckland 1142
new Zealand
of auckland
www.auckland.ac.nz
2006 annual report
Zealand
Zealand
Zealand
New
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Auckland
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The
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Annual
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contents
chancellor's introduction
1
vice-chancellor's review
3
focus on research
7
key facts and figures
10
university governance
12
university ManageMent structure
15
coMMercialisation of research
16
acadeMic activities
18
arts
18
Business and econoMics
19
creative arts and industries
22
education
24
engineering
25
law
26
Medical and health sciences
28
science
30
liggins institute
31
auckland uniservices ltd
32
centres of research excellence
33
stateMent of service perforMance
36
international standing
36
research and creative work
38
teaching and learning
41
te tiriti o waitangi/the treaty of waitangi 43
coMMunity engageMent
43
excellent people
45
resourcing and organising for Quality
47
stateMent of resources
50
financial stateMents
51
stateMent of responsiBility
52
stateMent of accounting policies
53
stateMent of financial perforMance
56
stateMent of MoveMents in eQuity
56
stateMent of financial position
57
stateMent of cash flows
58
notes to the financial stateMents
59
cost of service suMMary
73
report of auditor-general
74
glossary
76
ChaNCEllOr'S
INTrOduCTION
ThIS aNNual rEPOrT COMPrEhENSIVEly dOCuMENTS ThE
uNIVErSITy OF auCKlaNd’S aChIEVEMENTS FOr 2006. I wIll NOT
duPlICaTE ThE VICE-ChaNCEllOr’S rEVIEw OF ThE yEar, Or ThE
MaNy SuCCESSES rECOrdEd IN ThE FaCulTy rEPOrTS aNd ThE
STaTEMENTS OF SErVICE PErFOrMaNCE. I wIll ThOugh, rECOrd My
adMIraTION FOr ThE BrEadTh aNd dEPTh OF ThE CONTINuINg
STrONg PErFOrMaNCE By ThE dIVErSE COMMuNITy ThaT MaKES uP
ThE uNIVErSITy. My CONgraTulaTIONS aNd ThaNKS gO TO ThE
VICE-ChaNCEllOr aNd all ThE gENEral aNd aCadEMIC STaFF OF
ThE uNIVErSITy, ITS dIVErSE aNd TalENTEd STudENT BOdy aNd My
COllEaguES ON COuNCIl.
I want to concentrate on the University’s future, because the future of the University is
foremost in the minds of Council members when we debate the University’s Strategic
Plan and work with the Vice-Chancel or on its implementation. The Strategic Plan
describes a future laden with chal enge and opportunity in equal measure – both for the
country and for the University.
The chal enge for the country – represented by the Government and by private
supporters and philanthropists – is to find creative ways of investing in this University
so that it can maximise its benefit to the nation by being among the world's best. The
Government took several steps during 2006 that suggest that it realises how serious are
the problems with past funding policies. At the same time as applauding these initial
steps, we have to recognise that there is much further to do.
The opportunity the country has, in strengthening Auckland's position as a world-class
university, is exciting, enormous, and worth the necessary investment many times over.
Top flight universities are powerful drivers of economic growth and social development.
A better educated population works more productively, generates more wealth and
pays more tax. Businesses and industry grow and prosper better with skil ed workers
trained to think and solve problems. The world’s best universities are by far the world’s
most productive generators of new knowledge, and also function as powerful engines
for converting ideas and innovation into real-world applications. The universities’
submissions to Government adduce convincing evidence in support of these
arguments, and prove the long term benefits of the decisions we urge the Government
to take now.
We cannot think solely in terms of how a world-class university in New Zealand benefits
New Zealand, although it is clear that addressing this country’s relatively low and slowly
growing GDP per capita wil unlock solutions to many of the
set for itself. While we are energetical y making the case for
nation’s problems. We must also look at our contribution to the
the higher levels of public funding to get there, we are equal y
world, something of which we have always been conscious on
energetical y working on how best to productively and effectively
many fronts. The world faces an array of complex and intensely
utilise that investment.
threatening chal enges, such as climate change and sustainability.
New Zealanders are proud of their country, and of their
Fundamental university research, and capable university graduates,
compatriots’ achievements on the world stage, many of which
wil be the keys to understanding issues like these, finding
are disproportionate to our population and wealth. We exult in
solutions and implementing them. We cannot leave this burden
our successes, whether they are in sport, culture or business. All
to the rest of the world, and have to make our own contribution.
of New Zealand loves and supports any Kiwi who takes on the
This means fol owing the example of leading nations which already
world and succeeds. Only a handful of New Zealand institutions
invest in research universities at a much higher level than we do,
of any type are performing as strongly on the world stage as
and in some cases are stepping up their level of investment at a
is the University. We are truly one of New Zealand's global
dramatic rate.
success stories. Our chal enge is to win stronger public and
The University already stands amongst the top 1% or 2% of
Government support for the continued success of The University
universities in the world. The chal enge it faces, to perform and
of Auckland.
to contribute at an even higher level, cannot be underestimated,
and requires energy, application, focus and determination on
our part. We need to attract and retain additional world-class
academic staff. New Zealand and Auckland offer one of the most
attractive working environments in the world, but competitive
remuneration, and a physical environment that enables outstanding
research, teaching and learning, are also necessary. We need top
quality undergraduates from throughout New Zealand and around
the world, and more students proceeding to postgraduate work
here. We need more external funding, from more sources than
we currently tap. The Strategic Plan sets out a careful y developed
hugh Fletcher
set of objectives which, taken together, detail the transition the
Chancel or
University needs to make to achieve the high standards it has
The opportunity the country has, in supporting the development of
Auckland as a world-class university, is exciting, enormous, and worth the
necessary investment many times over.
VICE-ChaNCEllOr'S
rEVIEw
Contributing as “a world-class university in New Zealand” neatly
objectives. If we achieve them, we would expect to be consistently
captures, in a simple phrase, the aspiration driving the University’s
ranked among the top 50 of the world’s 7,000 universities.
Strategic Plan. As a world-class university, The University of
The most widely-cited rankings of universities world-wide are
Auckland is not only helping New Zealand meet its national
those published annual y by the
Times Higher Education Supplement
goals, but it is also contributing to the Asia-Pacific region and the
(THES). This year The University of Auckland ranked 46th, up from
rest of the world. It is providing New Zealanders with greater
52nd in 2005 and 67th in 2004. This was a very pleasing result,
opportunities and creating the skil s and knowledge that offer our
as were our high and improving rankings in a number of discipline
country a better future.
areas: 58th in Science (up from 72nd), 43rd in Technology, including
Building on this aspiration, and looking to achieve even greater
Engineering and IT (up from 49th), 33rd in Social Sciences (up
levels of performance from the base of our current high international from 65th) and 26th in Biomedicine (up from 33rd). In the Arts
standing, the Strategic Plan develops a set of focused objectives.
and Humanities we ranked very strongly, at 29th, but were down
These relate to the University’s international standing, research
marginal y from 25th last year.
The opportunity the country has, in supporting the development of
and creative work, teaching and learning, the Treaty of Waitangi,
It is tempting to interpret these results as indicating that the
engagement with our communities, excel ent people, and resourcing
University has met its strategic benchmark, but it would be unwise
Auckland as a world-class university, is exciting, enormous, and worth the
and organising for quality. Our objectives are wide-ranging and
to do so. The
THES is only one of several ranking systems. All
necessary investment many times over.
ambitious. In current management jargon they are “stretch”
rankings systems inevitably contain substantial subjective components,
We have recently increased
marketing have been focused on diversifying the number of
countries from which we recruit students, and there are signs that
significantly the number
this is bearing fruit. Domestic student numbers have also fal en,
and value of postgraduate
to a much lesser extent – only 1,052 EFTS (4 %) over the past
three years. During 2006 we reorganised our internal and external
scholarships, reviewed
marketing and communications activities, and again increased our
postgraduate-focused
level of investment. The result has been a more active, better co-
ordinated and more effective function. This should turn around the
marketing and recruitment
decline in domestic student numbers, and increase the number of
activities and improving the
top students from outside of Auckland who recognise our leading
position and aspire to be accepted into a programme here.
handling of postgraduate
This year’s Annual Report highlights the breadth and depth of
enquiries and enrolments.
the University’s research activity. This is an area where, despite
considerable success to date, we stil have much progress to make if
we are to achieve our Strategic Plan objectives. 2006's results were
very positive in this regard. New research contracts and grants
won were $157 mil ion ($63 mil ion through the Research Office
and each year some universities’ rankings move by more than their
and $94 mil ion through UniServices). Although this was $8 mil ion
underlying performance possibly could. Breaking into the top 50
less than the record $165 mil ion figure contracted last year, this
is not the same as being there consistently. Nonetheless, doing so
figure was boosted by the mid-term re-contracting of the Centres
– and showing steady improvements each year – as wel as having a
of Excel ence. Putting this one-off amount aside, the amount
number of major discipline areas wel within or close to the top 50,
contracted in 2006 represents a continuation of the steady and
indicates that the University is fol owing the course charted in the
substantial increase in the value of research contracts won by the
Strategic Plan. It also indicates that we have a very strong platform University. The University is increasingly looking to offshore sources
on which we can build, as we pursue the substantial improvements
for increases in research revenue, given the low levels of investment
in performance that wil be required, in order to ful y achieve our
in research and development expenditure by both the private and
objectives. We have some way to go yet, particularly in the areas
public sectors in New Zealand. Greater domestic expenditure in
of postgraduate student numbers and external y-funded research
this area is vital to both the University’s and the country’s future,
activity, despite already being clear national leaders in these areas.
as is the maintenance of an emphasis on quality and contestability
Our objectives with respect to the size and composition of
in investment decisions. I recently visited a number of the leading
the student body are to hold growth to a relatively low 1% pa,
funding agencies in the United States and was struck by their
but at the same time to drive a substantial rebalancing, lowering
wholehearted commitment to investing in fundamental research
undergraduate numbers and increasing postgraduates to 22% of the and a competitive system which seeks to support preferential y
total. This wil help us to make an even greater contribution to the
the best ideas and the best people. This is an approach that New
creation of knowledge in support of New Zealand’s aspirations for
Zealand would do wel to emulate.
social, economic and cultural development.
The substantial and continual y increasing volume of research
Although postgraduate numbers are increasing slowly, and
funding that the University’s academics win attests to the
reached 17% of total EFTS in 2006, more rapid increases are
University’s position as home to the largest and highest quality
necessary. We have recently increased significantly the number and
concentration of researchers in New Zealand. Several
value of postgraduate scholarships, reviewed postgraduate-focused
prestigious awards and honours won in 2006 underline the point.
marketing and recruitment activities and improved the handling
Distinguished Professor Ted Baker won the Rutherford Medal, the
of postgraduate enquiries and enrolments. We are also looking
highest science award in New Zealand, and Distinguished Professor
at how postgraduate work is supported within each student’s
Peter Hunter was elected a Fel ow of the Royal Society of London,
department and by the University as a whole. Postgraduate space
an honour currently held by only eight other New Zealanders.
needs are a significant factor in the University’s accommodation
Professor Bruce Baguley was awarded the prestigious Sir Charles
planning. The recent Government policy of providing domestic
Hercus Medal by the Royal Society of New Zealand, and was also
funding for international PhD students enabled the University to
named New Zealander of the Year by the
New Zealand Herald.
charge only domestic fees to new international PhD candidates, and Professors Howard Carmichael, Tim Cundy, Bruce Melvil e and
is quickly proving extremely beneficial. International PhD numbers
Peter Lobie were al elected Fel ows of the Royal Society of New
are already increasing rapidly, and substantial further increases are
Zealand. Professor James Sneyd and Associate Professor Catherine
expected.
Casey were awarded James Cook Fel owships and Associate
Disappointingly, but mostly as projected, overal student numbers
Professor Penny Brothers and Dr Melanie Anae were awarded
again fel , by 4% in 2006. Over the last three years EFTS have
Fulbright Scholarships.
fal en by 1,924, or 6%. Most of this fal , 872 EFTS (19%), is in
Developing large-scale research institutes of excel ence is an
international students, and in turn most of that change is a reversal
important Strategic Plan objective, and in 2006 the Liggins Institute
of the rapid expansion in students from China experienced in the
became the University’s first such institute. While it is too early
early years of this decade. The result wil be a more sustainable
to evaluate the success of this initiative, early feedback from both
balance (by country of origin) in the international student
the Institute and the Faculty of Medical and Health Sciences, out of
population. Successive increases in the budget for international
which the Liggins grew, is very positive. Such institutes are by no
means the only location of excel ent research within a university,
The University’s financial management systems again performed
but they are an important part of any highly-ranked research
wel during the year, and saw the University meet its key financial
university and a powerful vehicle for research teams capable of
targets, despite an unexpected shortfal in EFTS and related
achieving the necessary critical mass and focus on excel ence.
revenues of $6 mil ion. Other revenues, principal y external y-
2006 was a notable year for developments relating to teaching
funded research, however, were wel ahead of budget and revenue
and the University’s academic programmes. A major restructuring
overal was $673.1 mil ion, $10.1 mil ion (15.2%) better than
of al programmes, to a 120 credit year, and the introduction of
budget. Costs were held back in a number of areas in response
a general education component in undergraduate degrees both
to lower EFTS numbers, but in other areas costs necessarily
came into effect, and did so very smoothly thanks to extensive
increased in tandem with higher research revenues. Total
planning and preparation led by Professor Raewyn Dalziel.
expenditure was $652.3 mil ion, $9.0 mil ion (1.4%) higher than
Expansion and improvement of the University’s excel ent library
budget. The net result was an operating surplus of $20.7 mil ion
facilities continued, led by the opening of a new Library and related $2.0 mil ion better than budget, and at 3.1% of revenue is at the
study facilities in the School of Engineering. A major programme
TAMU minimum and right at the bottom of the University’s target
of refits of the University’s pool lecture theatres was approved, and
operating range.
work started. The University was again successful in the National
Management of the University during the year was dominated
Tertiary Teaching Excel ence Awards, with Professor Rick Bigwood
by the need to respond to fal ing EFTS in the Faculties of Arts,
receiving an award for sustained excel ence in teaching. The close
Business and Economics and Education by reducing permanent
relationships between the University and the professions, and the
academic staff numbers. This wil always be an extremely hard
professions’ high level of confidence in the University’s degrees,
and contentious process for any university to work through, and
were evident in several successful re-accreditations, this year in
that was certainly true in our case, but at the same time it was
Engineering, Architecture and Social Work.
necessary and unavoidable, and undertaken only as a last resort.
In 2006 The University of
but smal , first step towards addressing the significant competitive
disadvantage that New Zealand faces in international markets
Auckland took a leading role
when recruiting academic staff. We hope that the Government
in preparing some of the
wil recognise the need for further, and significant, such adjustments
to academic salaries.
best-researched submissions
Under-resourcing of universities general y and systematic
on university funding issues
underindexation remain areas of very great concern that must be
that the New Zealand
addressed in the future, but the several and very favourable first
steps taken by the Government in 2006 support an optimistic
Vice-Chancel ors’ Committee
outlook. We also hope that the review of the fees maxima
has ever presented to
regime, deferred until 2007, wil result in a system that does not
expose the University to the continuing and material loss of
Government.
revenue that the fees maxima cause.
In the new system, details of which are being progressively
developed and unveiled, Government tuition funding wil be
negotiated in the context of Three Year Plans. The most significant,
and very welcome, element of this approach is a shift away from
However difficult and painful the process was for al concerned,
focusing solely on tuition costs and numbers, to considering more
and I am under no il usions as to how much that was so, the
broadly the different activities and cost structures of institutions.
consequences for the University, if it had not made necessary
This offers the University the opportunity, for the first time,
adjustments to its cost base in response to changes in EFTS and
to state its objectives, cost them, and seek funding for them
revenue, would have been even worse.
accordingly. Government may, of course, wish to provide a lesser
The past achievements of the University, and its potential to
level of funding, but wil have to expect a lower level of output
succeed in the future, are as always critical y dependent on the
from the University as a result. The new model has the potential
funding and policy settings under which the University operates.
to link what the Government wil invest in with the returns it will
Students are treated very favourably in New Zealand. They pay,
receive in a way that the EFTS funding system is incapable of doing.
on average, much lower fees than their counterparts in those
In negotiating a Three Year Plan with the Tertiary Education
nations where the great majority of top universities are located
Commission, a process that implies a move from “bulk funding”
(the US, the UK and Australia) and enjoy by far the highest level of
to more “targeted investment”, we wil have to ensure that the
Government financial support in the OECD. Funding of tertiary
University retains its autonomy. The University’s statutory role
institutions, however, suffers from three serious deficiencies. The
as a “critic and conscience of society” demands this, but so too
overal level of public funding of universities is low by international
does the need for the University to chart its own strategic course,
standards, the distribution of funding does not fairly recognise the
informed but not determined solely by government objectives.
particular cost structures of research-intensive universities as in
While the Government is an important investor in the University,
other leading nations and the annual indexation of funding levels
many other groups – staff, students, alumni, friends and the wider
fal s short of actual movements in university costs.
community – also have a stake in how the University undertakes
In 2006 The University of Auckland took a leading role in
its teaching, research, and community service, how it positions
preparing some of the best-researched submissions on university
itself international y, and how it meets the needs of its diverse
funding issues that the New Zealand Vice-Chancel ors’ Committee
stakeholders. Change always brings both opportunities and
has ever presented to Government. These submissions not only
threats, and that is certainly so of the current tertiary reform
showed convincingly the deficiencies in current funding policies,
process. Our chal enge is to ward off the threats, and maximise
but made very strongly the argument that the social and economic
the opportunities. We wil be doing this in the context of greater
returns from higher and better targeted expenditure on tertiary
opportunities, and a more favourable funding environment, than
education are high. Although we do not yet have a comprehensive
we have seen for many years. The Government’s chal enge is
response from the Government on future funding policies, there
to recognise the future value to New Zealand and al New
were some signs during 2006 that our message is being heard
Zealanders of a world-class university in this country, and to invest
and understood. Postgraduate funding rates were increased, as
accordingly.
was the PBRF. These two moves careful y targeted additional
funding to areas of the system where there is both the greatest
need for and the greatest benefit from increased resourcing. In
a similar vein, the Government carried out a review of medical
funding and responded very positively to a joint submission
from the Universities of Auckland and Otago, increasing funding
rates significantly. This wil be of substantial benefit to an area of
Professor Stuart McCutcheon
very high undergraduate quality and significant research intensity.
Vice-Chancel or
Discussions with the Government through the Tripartite forum
led to additional funding for salary increases of 1% for general
staff and 3% for academic staff, over and above those already
provided by the universities themselves. This was a very welcome,
FOCuS ON rESEarCh
A strong research and innovation culture is a key requirement for
investigation in a quest for new, fundamental, knowledge still
any modern international university. The research-teaching nexus
remains a cornerstone of university research activity. However,
ensures that undergraduate education evolves in response to new
for some time now it has no longer been good enough for
knowledge, and also ensures a ready supply of students going on
our research activities to be purely curiosity-driven. In New
to research training to become the discoverers and creators of
Zealand, funding for fundamental research has always been low by
new knowledge for the future. A vibrant multidisciplinary research
international standards, and this has been thrown into sharp relief
culture which includes creative work helps universities to attract
over the past ten years as government policies have sought to
better staff and students, and to build a culture of inquiry and
increase the direct relevance and applicability of central y funded
academic rigour that enables them to contribute more effectively
research.
to society in a rapidly changing world.
The universities have responded to this, adding much
However, the role of research in the modern university is far
strategic and applied research capability and engaging more
greater than simply providing support for teaching activities and
in entrepreneurial activities. The continuing rapid growth in
projects for graduate students. Since the middle of the 20th
research contracting and commercialisation activities with business
century most countries in the developed world have promoted
and industry (and The University of Auckland is one of the
their universities as the primary generators of new knowledge
leaders in this trend international y), and the growing number of
and technologies which drive the social, cultural, and economic
companies spun out from academia, clearly attest to the fact that
development of their societies. Teaching and the advancement
university research capability is one of the key drivers of local and
of knowledge work together synergistical y in a way not found
international innovation systems.
in any other type of organisation to provide a potent means of
As New Zealand’s leading university, The University of Auckland
maintaining creativity, innovative performance, and competitive
is committed to national advancement through continuous
edge.
improvement of research capability and focus. The University’s
As universities have become increasingly important in driving
research strategy is: to create and promote research of value to
innovation, the mix of research and knowledge-dissemination
New Zealand’s society and economy; to undertake high quality
activities they undertake have changed. Of course, “blue skies”
research which contributes to social, economic, environmental,
and cultural development; to build and consolidate areas of
acknowledge exceptional research achievement by doctoral
research excel ence in the wide range of disciplines expected in an
candidates through original contributions of high significance in
international, multidisciplinary university; to attract, encourage, and
their field of research; and The University of Auckland Distinguished
retain the best possible researchers; and to provide the appropriate Professorships which recognise outstanding research contribution
infrastructure and resources to support research. In order to
at an international level over a sustained period of time.
achieve this, the University Strategic Plan recognises the need to
The University has more than 1500 research-active staff.
continuously improve the research performance and resourcing
The University hosts four of the seven National Centres
of the institution by setting ambitious targets for research quality
of Research Excel ence, working in Molecular Biodiscovery,
improvement, postgraduate research activity, and research income
Mathematics, Growth and Development, and Ma-ori Knowledge
growth over the next seven years.
and Development. The seven Centres of Research Excel ence
In aiming to fulfil its Strategic Plan for research, the University
were established at New Zealand Universities in 2002/03 via a
starts from a strong base.
new competitive government research fund, to be world-class
In particular, the University is fortunate in having many
research centres which provide incentives for researchers in the
international y recognised, committed, and able staff engaged in
tertiary education sector to conduct research that is international y
research, including two Fel ows of the Royal Society of London, 60
acknowledged as excel ent, contributes to New Zealand's
Fel ows of the Royal Society of New Zealand, a Fields Medal ist,
future development, and incorporates knowledge-transfer
and four Rutherford Medal ists. In the 2003 PBRF research
activities.
assessment exercise, 35% of al “A”-rated researchers in New
In addition to the Centres of Research Excel ence, the University
Zealand were staff members at The University of Auckland.
has established several other world-class research institutes and
The University also has several internal schemes to recognise
centres amongst which are: the Bioengineering Institute, the
and promote outstanding research achievement by both new
Liggins Institute, the Bioinformatics Institute, the Institute of Earth
and established researchers. These include: the Early Career
Science and Engineering, the Auckland Cancer Society Research
Research Excel ence Awards which were established to recognise
Centre, the Light Metals Research Centre, the Centre for Software
and promote excel ence and research leadership potential among
Innovation and the Centre for Advanced Composite Materials.
emerging researchers; the Best Doctoral Thesis Awards which
Other less formal research groups – particularly in the Humanities,
Social Sciences, and Law - are also recognised as world-class and
brief information on some of their activities can be found in the
Teaching and Research section of this Annual Report. In addition
to these, several other research units offer international-class
services and equipment in specialist fields, and these include: the
Centre for Advanced Magnetic Resonance Imaging, the Biomedical
Imaging Research Unit, the Centre for Surface and Materials
Science, and the Clinical Trials Research Unit.
Postgraduate research activity is crucial to the success of any
research-led university, and at The University of Auckland this is
taken particularly seriously. Postgraduate research is promoted
and coordinated through the School of Graduate Studies under
the guidance of the Dean of Graduate Studies, and each faculty
has an Associate Dean (Postgraduate) who works closely with
the School of Graduate Studies and is responsible for promoting
postgraduate student research in their faculty. The University
has an extensive programme of scholarships and support for
research students, and a programme of work to ensure continual
improvement of the quality of supervision. Funding for Doctoral
and Masters Scholarships was increased in 2006.
University-wide initiatives such as Exposure (the annual
postgraduate poster and research seminar competition), Spark (the
annual business plan competition), and Chiasma (a biotechnology
networking group which runs competitions and facilitates
internships in local biotechnology industries) are run by students
with assistance from University staff and have contributed greatly
to increasing the vibrancy of the graduate research community
in recent years. As a result PhD completions grew from 107
in 2002 to 184 in 2006. Importantly there has been growth in
A vibrant research culture enables
annual doctoral enrolments from 275 in 2005 to 303 in 2006.
During the year there has been significant activity in the
universities to attract better staff
international recruitment of postgraduate research students and it
and students, and to build a culture
is anticipated that this wil have a positive flow-on effect in future
years. Recruitment of a high quality student body for the doctoral
of inquiry and academic rigour that
programme is a priority for the University.
enables them to contribute more
Research postgraduate students were successful at the
effectively to society in a rapidly
MacDiarmid Awards (promoted by the Foundation for Research,
Science and Technology) in 2006 where PhD student Claire
changing world.
French was named Young Scientist of the Year. The University
–
provides support for postgraduate students to present their
Professor Tom Barnes,
Deputy Vice-Chancel or (Research)
research findings at international conferences and encourages
them to publish in international journals. Students are now able to
submit their theses digital y which enhances the availability of their
research work.
the University, and is governed by a separate Board which includes
Specific effort is also made to engage undergraduates in the
independent directors drawn from commerce and industry. Since
research culture of the institution by providing summer research
it began operations in 1988, UniServices revenue has grown
scholarships for undergraduate students in penultimate and
rapidly from $1.1 mil ion in its first year to more than $75 mil ion
final years. These ensure that undergraduates have maximum
in 2006. While most of this comes from contract research
opportunity to attend research seminars, and encourage
through over 2000 contracts, UniServices also manages more than
prominent researchers to take active teaching roles at
180 patent families and the market capitalisation of its spin-out
undergraduate as wel as postgraduate level.
companies currently stands at some $650 mil ion.
Effective interactions with business and industry are particularly
Our strong research base is a credit indeed to the huge effort
important to the University’s drive to create research of value to
put in by col eagues at the University to advance knowledge,
the economy. The University’s commercialisation arm, UniServices,
contribute to society, and integrate ful y into the international
was established specifical y to handle commercial contract research, research community. But we know we can do better stil . Indeed,
protect and exploit the intel ectual property of the University,
we are determined to do so and look forward to the chal enges of
and stimulate entrepreneurial activity through the creation of
the future with confidence.
spin-out companies and research business opportunities for the
institution. UniServices is a whol y-owned subsidiary company of
Professor Tom Barnes
KEy FaCTS aNd FIgurES
2004
2005
2006
2004
2005
2006
Full-time equivlent stFF (Fte)
student enrolment by quliFiction
academic
1,933
1,974
1,956
(eFts)
general
2,288
2,358
2,405
doctor of Philosophy
1,102
1,158
1,143
total
,
,
,
Other doctoral degree
87
83
72
Master degree
1,794
1,537
1,228
students
Conjoint degree
3,145
3,266
3,295
Equivalent Ful -Time Students (EFTS)
,
0,00
,
Bachelor honours
391
485
507
Bachelor degree
20,405
19,947
19,188
Gender
diploma
2,782
2,725
2,530
Male
16,866
16,581
15,979
Certificate
1,427
1,421
1,367
Female
23,632
22,839
21,945
Other Programme
91
1
1
total
0,
,0
,
total
,
0, ,
Workload
Note
Full-time
24,397
23,725
22,337
EFTS from formal qualifications only included.
Part-time
16,101
15,695
15,587
total
0,
,0
,
2004
2005
2006
ethnicity
European
16,901
15,756
14,970
ProGrmme enrolment (students)
Ma-ori
2,996
2,806
2,468
Pacific Island
3,231
3,126
3,027
arts
7,268
7,233
,
asian
12,871
13,081
13,129
Business and Economics
8,191
7,804
,
Other
2,074
2,107
2,177
Creative arts and Industries
2,027
2,056
,0
No response
2,425
2,544
2,153
Education
7,428
6,250
,
total
0,
,0
,
Engineering
2,647
2,762
,0
law
1,569
1,501
,
ge Group
Medical and health Sciences
3,366
3,670
,0
18 or less
5,479
5,765
5,930
Science
7,225
7,278
,
19-20
9,235
9,335
9,168
Theology
221
201
21-23
9,008
8,960
8,999
university Programmes
2,602
2,464
,
24-29
5,698
5,224
5,011
total
,
,0
,0
30-39
5,119
4,764
4,165
40+
5,959
5,372
4,651
Note
total
0,
,0
,
Conjoint degrees, Phd and other doctoral enrolments are reported with
their sponsoring faculty. For example, a student enrolled in Ba/BSc will
be distributed between Science and arts at a ratio of 50/50.
Students enrolled in more than one qualification during the year are
counted in each qualification.
university Programmes includes inter-faculty offerings as well as
university Certificates and Tertiary Foundation Certificate.
adult and community education enrolments are not included.
0
2004
2005
2006
2004
2005
2006
underGrdute enrolment (eFts)
quliFictions Wrded by Fculty
arts
4,779
4,645
,0
arts
1,897
1,684
,0
Business and Economics
5,420
5,228
,
Business and Economics
2,011
2,205
,
Creative arts and Industries
1,255
1,269
,
Creative arts and Industries
505
549
Education
3,333
3,152
,
Education
–
1,622
,
Engineering
1,876
2,036
,
Engineering
457
576
law
1,005
987
,
law
285
334
Medical and health Sciences
1,964
1,988
,
Medical and health Sciences
916
1,023
,0
Science
5,802
5,630
,
Science
1,572
1,829
,0
Theology
130
108
0
Theology
51
65
university Programmes
685
654
total
,
,
0,
total
,
,
,
Note
2004
2005
2006
university programmes include Tertiary Foundation Certificate and
university of auckland at Manukau enrolments.
interntionl students
Only formal enrolments are included; adult and community education
China
3,024
2,744
,0
enrolments are excluded.
uSa
427
487
0
Malaysia
209
275
Korea
231
279
2004
2005
2006
germany
207
229
India
142
104
PostGrdute enrolment (eFts)
Japan
81
82
arts
825
800
hong Kong
104
84
Business and Economics
855
783
00
Vietnam
70
72
Creative arts and Industries
268
258
Canada
61
93
Education*
546
494
0
Norway
104
74
Engineering
347
352
0
united Kingdom
68
66
law
134
109
Fiji
74
61
Medical and health Sciences
801
903
russian Federation
49
57
Science
1,168
1,194
,0
Taiwan
48
61
Theology
30
33
Indonesia
63
57
0
university Programmes
France
33
42
Sweden
35
28
total
,
,
,
Singapore
35
36
* The change relates to the restructuring of the former aCE graduate
Thailand
17
18
diplomas of Teaching following the amalgamation with the university.
Tonga
0
19
Saudi arabia
–
6
Sri lanka
–
13
Other
249
254
total
,
,
,
uNIVErSITy gOVErNaNCE
The University was founded in 1883 as a constituent Col ege of
THE UNIVERSITY’S STATUTORY
the University of New Zealand. Under the University of Auckland
Act 1961 the Col ege became an autonomous University. The
ROLE
University is currently administered under the 1961 Act and the
In carrying out its functions, and particularly when considering the
Education Act 1989.
University’s Charter and Profile, Council is guided by the statutory
characteristics of universities, which are defined in the
UNIVERSITY AUTONOMY AND
Education Act 1989:
ACADEMIC FREEDOM
• They are primarily concerned with more advanced learning,
the principal aim being to develop intel ectual independence;
The Education Act 1989 gives statutory protection to the
• Their research and teaching are closely interdependent and
institutional autonomy of the University and the academic
most of their teaching is done by people who are active in
freedom of its staff and students. The Act also binds the Council,
advancing knowledge;
the Vice-Chancel or, Ministers and agencies of the Crown to act in
• They meet international standards of research and teaching;
al respects so as to preserve and enhance university autonomy
• They are a repository of knowledge and expertise;
and academic freedom.
• They accept the role as critic and conscience of society.
UNIVERSITY LEADERSHIP:
A university, according to the Act, is characterised by a wide
diversity of teaching and research, especial y at a higher level,
THE COUNCIL
that maintains, advances, disseminates and assists the application
of knowledge, develops intel ectual independence and promotes
The University’s governing body is the Council, which comprises
community learning.
elected staff, students and graduates, Council appointees and
Ministerial appointees. Two executives – the Vice-Chancel or
rESPONSIBIlITIES OF COuNCIl
and one of the Deputy Vice-Chancel ors – are also members of
Council is required, when performing its functions, to fulfil various
Council. Council is chaired by the Chancel or who is a lay member
duties. These
of Council. Under the Education Act 1989, and its amending Acts,
include:
Council has the fol owing functions:
• Striving to ensure that the University attains the highest
• Appoint a chief executive;
standards of excel ence in education, training and research;
• Prepare, negotiate and adopt the University Charter;
• Adopt the Profile;
• Acknowledging the principles of the Treaty of Waitangi;
• Ensure that the institution is managed in accordance with the
• Encouraging the greatest possible participation by the
Charter and Profile;
communities served by the University, especial y by
• Determine the policies of the institution in relation to
underrepresented groups;
the implementation of its Charter and the carrying out of
• Ensuring that the University does not discriminate unfairly
the Profile and, subject to the State Sector Act 1988, the
against any person;
management of its affairs.
Professor Stuart
lindsay Corban
Janet Copsey
hugh Fletcher
Professor raewyn dalziel
Peter Menzies
Jennifer gibbs
Kate Sutton
xavier goldie
McCutcheon
MA
BA DipNZLS
Wel ., DipBus,
MCom, MBA
Stanford. BSc
ONZM, BA (Hons) PhD
Wel .
ME
MA
MA
BSc
BAgrSc (Hons) PhD
Massey
Appointed by Minister of
FNZLIA
Chancel or
deputy Vice-Chancel or
Appointed by Council
Pro-Chancel or
Elected by Court of
Elected by Students
Vice-Chancel or
Education
Elected by General Staff
Appointed by Minister of
(academic)
Appointed by Council
Convocation
Ex officio
Education
Ex officio
• Ensuring proper standards of integrity, conduct and concern
ThE FaCulTIES
for the public interest and the wel -being of students;
Each Faculty is a Committee of Senate and is headed by a Dean
• Ensuring that systems are in place for the responsible use of
who is responsible for management of the teaching, research
resources.
and administrative activities of the Faculty. Each Faculty has
established its own structure of Associate and Assistant Deans,
ThE VICE-ChaNCEllOr
and committees. Deans have primary financial responsibility for
The Education Act 1989 entrusts the Chief Executive Officer
their Faculties.
(Vice-Chancel or) with the management of the academic and
administrative matters of the University. The Vice-Chancel or is the
employer of al staff. The Vice-Chancel or is supported by a Senior
GOVERNANCE DOCUMENTS:
Management Team comprising:
CHARTER AND PROFILE
• The Deputy Vice-Chancel ors Academic and Research;
• The Pro Vice-Chancel ors Equal Opportunities, International,
The University’s Charter is a high-level governance document
Ma¯ori and Tamaki;
that defines broad strategy and sets out the University’s mission
• The Deans;
and role. The Charter was developed after a range of meetings
• The Registrar and the Directors of Administration, Human
and forums with key groups that provided the University’s
Resources, External Relations, Systems Development, Planning,
stakeholders with the opportunity to express their views on the
Finance, Property Services, Student Administration, Information
direction of The University of Auckland.
Technology Services, and the University Librarian;
The Charter has been approved by Council and the Associate
• The Chief Executive of Auckland UniServices Ltd.
Minister of Tertiary Education until December 2011.
The University’s Charter provides the basis for the development
ThE SENaTE
of its Profile. The Profile is a rol ing annual statement describing
the University’s plans and activities for the next three years. The
On academic matters, Council is bound to consult the Senate
Profile under the Education Act 1989 is also the base document
which the Vice-Chancel or chairs. This body includes al the
which the Tertiary Education Commission must utilise to release
professors, and representatives of sub-professorial staff and
general funding.
students. The Senate takes advice from the Education and
Legislative changes signaled by the Government wil see Profiles
Research Committees and from a number of other committees.
replaced with Three-year Plans with effect from 2008.
Council has delegated to Senate the fol owing responsibilities and
functions:
• Making recommendations or reports to Council on any matter
CAPITAL PLAN AND FINANCIAL
affecting the University;
PROJECTIONS
• Furthering and coordinating the work of faculties and
departments, the Library and University Press;
The Capital Plan is updated annual y and sets out the investment
• Encouraging scholarship and research;
required to maintain and enhance the University’s infrastructure
• Appointing standing committees as required;
and resources over a ten-year period. The property capital
• Delegating authority to its committees;
expenditure programme is reviewed by the Capital Planning and
• As delegate of Council, the Senate operates as a Committee
Budgeting Committee with specific project approvals sought from
of Council.
Council. Faculty capital requirements are established subject to
an annual Asset Management Plan, the Information Technology
spending programme is reviewed by the IT Strategy and Policy
John Morris
greg Taylor
roger France
associate Professor
Justice lyn Stevens
Professor dianne
Professor richard Faul
dan Bidois
Ken larsen
McCarthy
MA
MA
BCom, CA
BCL
Oxford, BA LLB (Hons)
ONZM, BMedSc MBChB
BCom
Elected by Court of
Appointed by Minister of
Appointed by Council
PhL STL
Rome, MA PhD
Elected by Court of
BA MSc PhD
Otago, PhD DSc, FRSNZ
Elected by Students
Convocation
Education
Camb.
Convocation
Elected by Senate
Elected by Academic Staff
Elected by Lecturers
Committee before being approved by the Capital Planning and
processes and systems, and on aligning and embedding the
Budgeting Committee, and the Library Committee oversees
various processes so that risk-based decisions can be made on a
the Library’s capital expenditure al ocation. A projection of
consistent basis.
the University’s financial performance and position over ten
years is prepared as part of the Capital Plan. Projections of
operating income and expenditure are combined with the
capital requirements determined in the Capital Plan to establish
ETHICAL STANDARDS
an overal projection of the University’s financial position and
The University of Auckland maintains high ethical standards for
financing requirements over a ten-year period.
research and teaching involving animals and humans. The fol owing
three committees report directly to Council:
Animal Ethics Committee and its subcommittees ensure that
COUNCIL COMMITTEES
the protocols for use of animals in research and teaching are in
accordance with legislative requirements.
FINaNCE COMMITTEE
The Biological Safety Committee assesses applications for
This committee is appointed by Council to consider the financial
the use of genetical y modified organisms in the University
affairs of the University, both long-term and short-term. The
in accordance with the delegation by Environmental Risk
Finance Committee works closely with the Vice-Chancel or and
Management Authority (ERMA) in order to identify al potential
management to review al aspects of the financial performance of
risks to people including researchers, the community and the
the University. Council receives reports from, and relies upon the
environment. Applications are determined in accordance with the
advice of, Finance Committee in relation to financial performance.
Hazardous Substances and New Organisms (HSNO) Act and
any relevant supporting protocols issued by ERMA. In addition
audIT COMMITTEE
the Biological Safety Committee monitors ongoing work within
The members of the Audit Committee are appointed by
the University and makes recommendations on containment
Council and are chosen from the lay members of Council.
issues as appropriate. The Committee has instigated a system for
Audit Committee’s principal task is to ensure that al financial
consultation with Ma¯ori
statements released to the public, stakeholders, lenders or any
Human Participants Ethics Committee reviews proposed
regulatory body comply with accounting standards, are true and
research and teaching projects which involve human subjects,
fair, and are not misleading. The committee meets quarterly to
other than projects which require Regional Health Authority
review the effectiveness of internal controls in the University and
ethics approval, to ensure compliance with the highest ethical
the way in which they are applied. The committee also oversees
standards. In addition, this committee provides advice and
the relationship with the University’s external auditors, Deloitte.
assistance to Council and the University community with respect
Deloitte is appointed by the Office of the Auditor-General for a
to ethical standards and issues involving human subjects. The
three-year term. Audit Committee receives regular reports on
Occupational Health and Safety Advisory Committee is a forum
any matters which arise in connection with the performance of
of nominated or elected management and staff representatives
the external audit, including the adequacy of internal controls
that enables staff and unions to communicate to management
and the truth and fairness of the financial reports. Internal
issues of interest and concern related to health and safety, and
audit is an integral part of the University’s risk management
to encourage staff participation in the ongoing maintenance and
framework. Certain internal audit services are contracted in
improvement of a safe and healthy environment. The committee
from PricewaterhouseCoopers for a three-year term. To provide
reports to the Staff Advisory Committee, an advisory committee
an effective service as wel as the required level of assurance
to the Vice-Chancel or.
on a wide range of issues, a core audit programme has been
developed, consisting of financial audits and audit areas matching
the expertise of the principal audit provider. Audit requirements
BUSINESS DETAILS
not covered by the ‘core’ programme wil be resourced on a
flexible, co-sourced basis, to al ow drawing on the knowledge,
Bankers
skil s and resources of both the University staff and specialist
Bank of New Zealand
providers. Central to this approach is the development of a
business-wide ‘risk based’ audit plan, which considers al critical
Auditors
business issues, operational risks, risk management processes,
Deloitte – on behalf of the Auditor-General
compliance with key legislative requirements and the effectiveness
of internal financial and operational controls.
Valuers
DTZ New Zealand Ltd
rISK MaNagEMENT
Risk management and internal audit activities are overseen by the
Audit Committee. The University’s risk management framework
directs activities towards a high-level, process-based approach
taking into consideration the external operating environment
and including strategic, operational and financial risks. Risk
management activities focus on identifying control gaps in existing
uNIVErSITy MaNagEMENT STruCTurE
Kath Clarke
dIrECTOr
huMaN rESOurCES
COuNCIl
Tim greville
rEgISTrar
John Taylor
dIrECTOr
ExTErNal rElaTIONS
vice-chncellor
adrienne Cleland
Professor Stuart McCutcheon
dIrECTOr OF
SySTEMS dEVElOPMENT
dr Peter lee
ChIEF ExECuTIVE
uNISErVICES
dEPuTy VICE-ChaNCEllOr
dEPuTy VICE-ChaNCEllOr
dIrECTOr
FaCulTy dEaNS
(aCadEMIC)
(rESEarCh)
PrO VICE-ChaNCEllOrS
adMINISTraTION
Professor raewyn dalziel
Professor Tom Barnes
Jonathan Blakeman
Professor ralph Cooney
dr wayne Clark
Professor John Morrow
Janet Copsey
Professor gregor Coster
TaMaKI
dIrECTOr
arTS
uNIVErSITy lIBrarIaN
POSTgraduaTE dEaN
STudENT adMINISTraTION
Professor dianne McCarthy
Professor Barry Spicer
Pamela Moss
EQual OPPOrTuNITIES
Marin Matulovic
BuSINESS aNd ECONOMICS
dIrECTOr
dIrECTOr
PlaNNINg
FINaNCE
Jim Peters
Professor Sharman Pretty
-
MaOrI
CrEaTIVE arTS aNd
Professor lorraine Stefani
Stephen whiteside
INduSTrIES
dIrECTOr
dIrECTOr
CENTrE FOr aCadEMIC
associate Professor
ITS
dEVElOPMENT
Chris Tremewan
dr John langley
INTErNaTIONal
EduCaTION
Peter Fehl
Professor Elaine wainwright
dIrECTOr
SChOOl OF ThEOlOgy
Professor Peter Brothers
PrOPErTy SErVICES
ENgINEErINg
Marc Kaemper
Professor Paul rishworth
rISK MaNagEr
law
Professor Iain Martin
MEdICal aNd hEalTh
SCIENCES
Professor dick Bellamy
SCIENCE
COMMErCIalISaTION OF
rESEarCh
While no part of a successful university ever stands stil , few areas
research was reflected in a national summit,
Capitalising on
of activity have recently grown as quickly, or attracted as much
Research, organised by the Ministry of Research, Science and
attention, as the commercialisation of research. Governments are
Technology and Business New Zealand. Dr Peter Lee, CEO
increasingly seeking tangible returns on investments in research
of UniServices was a keynote speaker at the summit, reflecting
and are drawn to universities as drivers of knowledge economies.
the fact that Government agencies recognise UniServices as a
For universities, success is a virtuous circle where today’s revenue
leader in commercialisation. These organisations now col aborate
funds tomorrow’s research.
regularly with UniServices in order to increase the impact
The University of Auckland is a leader in this area. Its
research has on national outcomes. For example, FRST and
commercialisation company, UniServices, which has just marked
UniServices piloted the formation of strategic advisory groups of
its 18th year of unbroken revenue growth, is now the largest of
business people to more closely align research and commercial
its kind in Australasia. Success has been built on partnerships
opportunities. The result has been discussions to form two new
with academic staff and external clients, and an understanding of
companies based on research at the Bioengineering Institute.
how to leverage new gains from inherently valuable fundamental
UniServices also works with the University’s Centres of Research
research. 2006 also showed how further growth for UniServices
Excel ence and in 2006 was closely involved in the launch of new
wil reflect key trends in the field of commercialisation.
government-supported Partnerships for Excel ence in Health
Just as the Government is placing increased emphasis on
Informatics and Plastics.
commercial outcomes from research, large companies are
Major corporations are also looking more and more to
looking to “Open Innovation”, effectively outsourcing research
universities as research partners as the “fortress model” of
and development, in a race to secure the best expertise. In
developing research and development in-house is abandoned
addition, longstanding chal enges in finding new sources of
in favour of innovation using external sources of expertise. For
investment for viable new ventures coming from the university
example, Procter & Gamble has committed to spend half of a
sector are being addressed, and this together with increasing
$US1.8 bil ion research and development budget on external y-
contracting of universities by governments to provide consulting
sourced innovation. New Zealand is especial y wel -placed to
and other services is seeing university expertise making
benefit from this trend because of the international quality of
significant gains for the country.
much of our research capability and increasingly competitive
The Government’s commitment to innovation driven by
global pressure to access new ideas and skil s.
This makes the tyranny of distance largely irrelevant.
research with external funds and increase the number of spin-off
Importantly, open innovation is not about sel ing cheap. Indeed,
companies and related revenue-generating opportunities.
a 2006 study by the Ewing Marion Kauffman Foundation, of more
Along with the benefits research has brought private
than 200 multinationals, found that companies sourcing research
partners and clients, a final key factor to note about 2006 is the
and development away from their home base value the ability to
establishment of an impressive critical mass of national public
access intel ectual capital and university col aboration far more
good research arising out of projects undertaken for Government
highly than potential cost savings. This trend fits wel with the
agencies. Most of UniServices’ revenue comes from commercial
innovative culture at The University of Auckland. A first-mover
contracts. However, a large proportion of our income comes
in New Zealand in this area, UniServices is promoted by the
from Government contracts. Much of this work takes place
international technology exchange company, YET2.com and at the
cumulatively across scores of smal projects, with some key larger
end of 2005 it undertook a pilot project with Procter & Gamble
projects clearly demonstrating significant contributions to health
to identify new applications for University technologies. The
and education.
University of Auckland was one of five participating universities
The University's researchers were able to demonstrate the
around the world in this initiative from which two new projects
efficacy and safety of the Meningococcal B Vaccine and thereby
are now under development at Auckland.
support its rol -out by the Ministry of Health. This rol -out has
2006 also saw progress in building external support to
seen a reduction of the incidence of the disease by a factor of
address the so-cal ed “Val ey of Death”. This is the phase in
five in vaccinated groups
the development of new technologies where they move from
The Werry Centre for Child and Adolescent Mental Health
being supported by publicly-funded research to attracting
at The University of Auckland is providing first-class training and
private investment. At this critical stage, the technologies are
support for the mental health workforce. The New Zealand
typical y considered too “applied” for significant investment
Mental Health Survey has been recognised by the Minister of
by government, but too high-risk for mainstream investors.
Health as identifying key target areas for service delivery.
As a result, the development track is very fragile and many
The asTTle software teaching and assessment tools developed
promising technologies fail. UniServices has helped finance
at the University have also attracted ministerial praise, with a
many such projects (including now highly successful companies
former Minister of Education, hailing it as a “world-class resource.”
such as Proacta and Neuren) through this phase. Recognising
AsTTle is now being actively marketed overseas where it has
the potential in supporting many more technologies through
been identified as significantly helping children to learn better.
this critical stage, it has identified and met with key potential
As with other commercial research, success wil bring further
investment partners to establish a new Growth Fund to leverage
revenues to the University and its staff and new benefits to the
its own investment in the commercialisation of university
end users.
aCadEMIC aCTIVITIES
FACULTY OF ARTS
Writing Programme aimed at supporting recently enrol ed PhD
students towards academic achievement, and the development
In 2006 the Faculty of Arts continued to pursue excel ence in
of the Summer Scholarship programme aimed at supporting
teaching, research and creative works across the ful range of its
undergraduate students into postgraduate study. The Faculty has
disciplines, encompassing the study of culture, society, language
also focused on establishing a programme with low decile and
and literature.
non-traditional feeder schools in South and West Auckland to
The high standing of the Faculty in research and scholarship in
encourage and facilitate students’ progression towards tertiary
the Humanities and Social Sciences was recognised international y
study. This programme wil be developed further in 2007.
with a number of significant appointments and awards for Faculty
The Faculty wil continue its efforts to recruit international
members.
The
Times Higher Education Supplement ranked
graduate students and has formalised agreements with the
the Humanities departments 29th amongst the world’s top
Beijing Foreign Studies University and participated in efforts to
universities and Social Science departments 33rd.
recruit Government-supported PhD candidates from China and
In the face of softening undergraduate EFTS figures,
Pakistan. Target markets for recruitment of international students
recruitment of top quality students remains a priority for the
are China, the Americas and Europe; in the last of these markets
Faculty. Particular emphasis has been put on the recruitment of
opportunities to recruit MA research students through the
high quality taught and research postgraduate students so that
Erasmus Mundus programme wil be a priority.
the Faculty can sustain and increase postgraduate enrolments.
The Faculty Tua¯kana Arts Programme continued to develop
Initiatives in this area include the introduction of a PhD
innovative programmes for the recruitment and retention of
Ma¯ori and Pasifika students. The Tua¯kana Leadership Programme
is an initiative that is targeted at stage two and three Ma¯ori and
Pacific students who are achieving wel academical y. Students
attend workshops to develop both academic and leadership skil s;
the programme incorporates an internship component with public
and private entities. The programme, based on the concept of
negotiating the future with academic success, wil be developed
further in 2007.
In 2006 the Faculty considered a number of new proposals
to enhance the teaching programme. The postgraduate diploma
in Social Science Research Methods has been approved for
introduction in 2007 and a postgraduate programme in Policy
Studies is under development for introduction in 2008. A
proposal to introduce a BA in Writing Studies in 2008 has
been approved in principle by the University and the proposal
for the introduction of a major in Anthropology (Biological
Anthropology and Archaeology) in the BSc is being developed. A
proposal to introduce Criminology as a subject for the BA wil be
developed early in 2007. These initiatives are expected to involve
col aboration with other faculties.
Departments have targeted research support funding to
the completion and advancement of staff research activities.
The Faculty has also supported staff and postgraduate student
research from funds administered as part of the Faculty Research
Fund. In order to encourage participation in bids for external
funding, and to assist staff in developing the skil s necessary to
make strong applications, the Faculty set up a series of grant
writing workshops, supported by peer evaluation and mentoring.
It also established a calendar of stipendiary fel owships in overseas
institutions to broaden knowledge of the sources of external
Primatologist Dr Boubli (Anthropology) holding a baby Bearded Saki of the new
funding for work in the humanities and social sciences.
species he discovered on the Rio Negro region of Brazil. (Photo taken on Rio
A significant programme of events ran throughout the year,
Araca, a left hand tributary of Negro River, where the monkey was found.)
designed to profile the diversity of the departments and their
FACULTY OF BUSINESS AND
links to the University and the wider community. The Shakespeare
Winter Lecture Series was a particularly successful event which
ECONOMICS
showcased a series of lectures from leading academic and industry
The University of Auckland Business School aims to be recognised
experts in col aboration with the Auckland Theatre Company. The
as one of Asia-Pacific’s foremost business schools, known for
Faculty continued to develop a high profile through public lectures,
excel ence and innovation in research, learning and partnership
and a number of conferences were held over the course of the
with enterprise, and for contributions to enhancing New Zealand’s
year, attracting international y renowned scholars.
competitiveness and capacity to create wealth and prosperity. The
School is committed to educating individuals who wil contribute
Highlights included:
to the enlightened management and leadership of private and
• The Honourable Mike Rann, Premier of South Australia, gave
public sector organisations, and to the development of sound
the Chapman Lecture
“You campaign in poetry, you govern in
economic and public policy in a global y connected world. The
prose”, and journalist and columnist Gordon Campbel gave
School continues to maintain the highest entry standards in New
the Jesson Lecture which explored
“Getting personal: the trends
Zealand to its business programmes.
towards tabloidisation, personalisation, and commercialisation, and
Initiatives in teaching and learning for 2006 included a new
how they are shaping the ways that the media and politicians
Auckland MBA designed on a flexible, quarter-based calendar to
deal with each other”.
accommodate practitioners’ work schedules and place greater
• The Faculty hosted three Hood Fel ows in 2006: Professor
emphasis on value creation, innovation and leadership. An
Miles Taylor (York University), Professor Harold Lewis Dibble
initiative based on interfaculty col aboration designed to bring
(University of Pennsylvania) and Sir Geoffrey Lloyd, Emeritus
scientific ideas to the marketplace has resulted in the launch of
Professor of Ancient Philosophy and Science at Cambridge.
the Postgraduate Diploma in Bioscience Enterprise by the School
The Hood Fel ows contributed to departmental seminar
of Biological Sciences with the Business School and the Faculty of
programmes and a series of public lectures on themes as
Law. The Master of Bioscience Enterprise wil be offered in 2007.
varied as Queen Victoria in New Zealand and research on
At the undergraduate level there was further development
Neanderthal behaviour.
of the language and communication skil s programme, now
regarded as a curriculum model. A pilot programme is underway
Awards, scholarships and grants won by staff in the Faculty of Arts
using CECIL as a platform for mapping courses and curriculum
in 2006:
against the Graduate Profile to provide a more sophisticated and
• Professor Raylene Ramsay (School of European Languages
interactive version of previous curriculum grids. Digital-based
and Literatures), received the award of Chevalier de L’ Ordre
learning strategies, fast feedback student learning assessments and
des Arts et des Lettres. The honour, conferred by the French
implantation of technologies such as e-portfolio have also been
government, is one of the highest in France in the field, and
tested. Successful experimentation with voice-over PowerPoint
recognises significant contributions to the arts and literature
technology took place, al owing lecture playback on demand.
and propagation of these areas of intel ectual endeavour.
To provide learning opportunities in applied areas, the Business
• Professor James Belich (Department of History) and Professor
School continued to foster a range of successful partnerships
Andrew Sharp (Department of Political Studies) both received
with enterprises, including EXCELERATOR – The New Zealand
awards in the New Zealand Order of Merit in the Queen’s
Leadership Institute and The ICEHOUSE. The Business School
Birthday Honours.
has also pursued innovative partnerships to help develop Ma¯ori
rESEarCh INTO MEdICal aNd PuBlIC hEalTh hISTOry IN NEw ZEalaNd
Over the past decade Associate Professor Linda Bryder has
education, germ theory and psychiatric nursing. Dr Bryder’s
created and led a very successful research group within the
own research is currently focused on the history of women’s
Department of History for the study of New Zealand public
health, supported by a Marsden grant; one of the students holds
health and medical history. Members of this group include
a scholarship from this grant. Two others hold or have held Top
nine current or recently completed PhDs. Monthly two-hour
Achiever Doctoral Scholarships and two gained University of
workshops are held to discuss common issues and themes and
Auckland Senior Health Research Scholarships; others have been
to share ideas; this is additional to regular individual supervision.
awarded University of Auckland PhD Scholarships.
The students are mentored by Dr Bryder and by Dr Derek
The group was wel represented at the 2006 international
Dow, a medical historian based in the Department of General
conference of the Society for the Social History of Medicine
Practice, and an agenda is drawn up at the start of each year as a
at the University of Warwick, UK, with five attending and one
result of dialogue involving al attendees. One goal is the timely
winning the Conference Poster Prize. Almost al of the current
completion of theses, with the meetings encouraging students to
students wil be presenting papers at the biennial Australian and
remain focused and motivated. Two have recently completed and
New Zealand Society of the History of Medicine conference
one is on the point of submission. Two others completed their
in Canberra in July 2007. The students have always been
provisional year in 2006.
encouraged to engage with the discipline international y and have
Thesis topics have included the history of venereal disease,
had papers accepted for Medical History and Health and History,
immunisation, tuberculosis, hepatitis B, fluoridation, abortion, sex
two prominent journals within the field.
Winners of the McGil Management International Case Competition in Montreal (from left) – Front: Andrew Clements, Peter Smith (coach), Geoffrey Cumming.
Back: Rachael Germann, Paul Dou, Tessa Gould, Mark Russel .
business expertise and business leaders in Northland and
at the Business School, aimed at improving New Zealanders’
Auckland, and is now cooperating with the Forest Research
understanding of financial issues. Professor Jerry Bowman has
Institute to offer the Postgraduate Diploma in Ma¯ori Business in
been appointed as the first Bank of New Zealand Professor of
Rotorua, utilising video conferencing technology.
Finance.
The Business School’s strong commitment to Ma¯ori and
Professor Steven Cahan became the School’s first PhD
Pacific students and enterprise development continued. This
Programme Director and work began on implementing a PhD
year saw the first Ma¯ori Enterprise involvement in the Spark
Programme Action Plan designed to increase the number of PhD
Entrepreneurship Chal enge and participation in a nation-wide
students and completions. The first School-wide PhD conference
Ma¯ori postgraduate conference.
was held where students showcased their research.
The Business School staffing profile has been significantly
This year the School focused on optimising the outcomes
bolstered this year with the appointment of four new professors,
of the PBRF process in the current round. Marsden and FRST
each an international expert in their field. Supplementing the
applications made by Business School staff increased in numbers
School’s commitment to leadership education, Professor Brad
and sponsored research programmes were established with the
Jackson was appointed as the first Fletcher Building Education
Employers and Manufacturers Association and the Human Rights
Trust Professor of Leadership. Professor Alan Stenger became
Commission.
the inaugural Ports of Auckland Professor of Logistics and
Having achieved the “Triple Crown” of accreditations by
Supply Chain Management. Associate Professor Marie Wilson
2005, senior staff participated actively during 2006 in AACSB
was promoted to Professor of Management and Head of
International (Association to Advance Col egiate Schools of
the Department of Management and Employment Relations
Business), EQUIS (European Quality Improvement System)
and Professor Hugh Whittaker was appointed as Professor of
and AMBA (Association of MBAs) accreditation panels, review
Management.
teams and high-level committees. Accounting programmes
The Bank of New Zealand announced its intention to invest
were re-accredited by the New Zealand Institute of Chartered
$1.35 mil ion over five years to establish a Chair of Finance
Accountants for a further five years.
0
ThE MIra SZáSZy rESEarCh
A high-powered group of business leaders has joined the
Business School’s new Advisory Board. Chaired by John Hagen,
CENTrE FOr Ma-OrI
former Chairman of Deloitte in New Zealand, the 21-member
aNd PaCIFIC ECONOMIC
board has a mix of international and local members who are
dEVElOPMENT
among some of New Zealand’s most prominent business and
community leaders. Working groups were set up this year to
engage the board members’ experience and involvement on a
The Mira Szászy Research Centre was established by The
number of chal enges confronting the Business School and issues
University of Auckland Business School in 1998 and is an
critical to the fulfilment of the School’s mission.
integral part of the Business School. The Centre focuses
Fol owing continued successes in fundraising, the advancement
on Ma-ori and Pacific communities, nations and smal -
team has set a goal of building an endowment for the Business
medium enterprises. It aims to provide effective economic
School as part of the overal fundraising campaign. An
and social development support services by bringing
extraordinary gift of $10 mil ion has since been committed to
together experienced and skil ed practitioners and scholars
the Business School to establish a perpetual endowment fund.
dedicated to high quality outcomes.
The endowment fund donation is made up of $5 mil ion plus an
Dr Manuka Henare is the current and foundation
additional $5 mil ion if the Business School raises $10 mil ion from
director of the Centre, which has two other part-time
other sources, creating an initial base fund of $20 mil ion. The
administrative staff. Dr Hazel Petrie, the Centre’s first Post-
Business School wil grow the endowment from this base, with a
Doctoral Fel ow, was appointed in 2005 and leads in two
future target of $200 mil ion in mind.
current research projects. Ms June McCabe, a leader, Ma-ori
Progress continues on the construction of the Owen G Glenn
banking executive and consultant, is the Centre’s inaugural
Building, the new home of the Business School, due for completion
Businessperson-in-Residence, on a part-time appointment.
in late 2007. The building is named for the expatriate New Zealand
Together with Dr Henare they are conducting research on
entrepreneur Owen G Glenn in recognition of his generous
leadership.
donation of $7.5 mil ion to the Business School. The construction
Currently, the Centre is most closely associated with the
has reached its final height of six storeys plus a large teaching floor
Graduate School of Enterprise and the Department of
and wil open its doors to students in 2007, with the opening of the
Management and Employment Relations. It has strong links
two main lecture theatres. One wil be named the Fisher & Paykel
with other departments in the Business School including
Appliances Auditorium in honour of this significant donor. For the
the Departments of Economics, Marketing, Information
first time in its history, the entire Business School wil be brought
Systems and Operations Management and with other
under one roof and this wil al ow for the consolidation of al its
faculties in The University of Auckland including Arts,
programmes on the City Campus.
Engineering and Science. The Centre employs a number
of staff on a permanent and part-time basis and is able
Highlights included:
to access expertise in other departments in the Business
• The Mira Szászy Research Centre hosted a Symposium on
School and throughout the University.
Pacific Futures that brought together an influential cross-section
The Centre is home to some of the Business School’s
of people to discuss the impact of globalisation on the Pacific
most significant research projects, such as a major FRST-
region. Participants included Prime Ministers of island nations,
funded project to study the determinants of growth and
high commissioners, academics, religious leaders and policy-
innovation in the New Zealand seafood sector. This is a
makers.
joint Business School and National Institute of Water and
• The Dean’s Distinguished Speaker Series has enabled the
Atmospheric research programme with ten researchers in
Business School and its partners, friends and alumni to
a $1.4 mil ion multi-disciplinary study. The project identifies,
come together and share knowledge and insights concerning
through case studies, innovation along the supply chain.
important topics in business today. Prominent speakers this
The sector wil play a critical role in New Zealand and
year included Ralph Waters on the transformation of Fletcher
Ma-ori economic development, with a large representation
Building, David Skil ing on the importance of globalising the
of Ma-ori as owners and other stakeholders.
New Zealand economy, and former Vice President of the
United States Al Gore on the impact of climate change on
business and investment.
Awards won by students in the Faculty of Business and Economics
in 2006:
• Pradeep Raman and Swati Sharma won the Spark $40K
Chal enge top prize as team Myskil pool for developing an
online people market that could reinvent Internet recruitment.
• Business School teams again made the Global Business
Chal enge finals in Seattle, came second at the Montreal 2006
McGil Management International Case Competition and won
the New Zealand 2006 Business Case Competition.
NATIONAL INSTITUTE
• The Dance Studies Programme;
OF CREATIVE ARTS AND
• The Centre for New Zealand Art Research and Discovery.
In addition, NICAI offers the Bachelor of Visual Arts at the
INDUSTRIES
Manukau School of Visual Arts, Manukau Institute of
Technology.
The 2006 achievements of the National Institute of Creative Arts
and Industries (NICAI) emerge from the pursuit of its vision to
NICAI plans to use two related themes, The Scholarship of
create a national centre of innovation in contemporary creative
Studio Teaching, and Drawing and Inscriptive Practice, as major
arts and industries research, education and practice through
drivers for pan-Faculty focus, both projects being relevant
advancing excel ence in each of the disciplines represented, and
throughout the various disciplines. The Faculty’s PBRF al ocation
through the exploration and development of interdisciplinary
and a successful Hood Fel owship application are supporting these
synergies.
initiatives.
The Institute now comprises five clearly defined academic units
NICAI has been involved in a range of international
through which discipline excel ence is pursued:
benchmarking exercises in Elam and Music, looking particularly at
• The School of Architecture and Planning;
curriculum structure and assessment. An audit of the status of
• The School of Music;
al doctoral candidatures has been completed, a framework for
• The School of Fine Arts (Elam);
monitoring annual doctoral reports established, and workshops
held for al NICAI post-graduate supervisors as a “refresher” of
student body as a resource for learning, conceptual exploration
current policies and expectations.
and col aborative engagement. Further, a project engaging al first-
The merging of the former School of Architecture and
year students in Elam,
Taonga, was developed and led by Associate
Department of Planning in early 2006, to become the School of
Professor Michael Parekowhai as part of Elam’s Tuhura initiative,
Architecture and Planning, has provided an enhanced opportunity
which provides a framework for the integration and exploration
to strengthen the contribution of architects and planners to the
of Ma¯ori values and culture in the curriculum.
sustainable design, planning and development of New Zealand
NICAI has formed strong links in its international network.
communities. In 2006, the professional Architecture programmes
Elam continues to develop its important partnership with the
were the first in New Zealand to be reviewed and accredited
Glasgow School of Art, while the School of Music has established
under the recently introduced Australasian system, and received
a relationship with the University of Melbourne for the purpose
ful professional accreditation for the maximum period of five
of offering regular col aborative postgraduate conferences. The
years. Professor Peggy Deamer has been appointed as Head of
performances by the New Zealand Trio at alumni functions in
School, and wil join the Faculty from her current position at Yale
North Asia in September 2006 were warmly received, as were
in early 2007.
the Trio’s performances at Fudan University and the University of
In 2006, the fledgling Dance Studies Programme experienced
Korea as part of that tour.
significant growth, including an increase in postgraduate numbers,
Some selected staff and student successes in 2006:
and was approved as a subject for PhD study.
• Associate Professor Karen Gryl s, School of Music, won the
The Elam School of Fine Arts had an outstanding year, with
Tui award for the Best Classical Album at the New Zealand
some early outcomes of the new inter-disciplinary curriculum
Music Awards 2006 with the CD
“New Zealand Voices - Spirit
being evident in the end of year shows. Highlights in the School of
of the Land”; the New Zealand Trio was a finalist for the Best
Music included three exceptional performances by the University
Classical Album at the same Awards with its CD
“Spark”.
of Auckland Strings, two of these directed by international visiting
• Dr Michael Gunder, Senior Lecturer, School of Architecture
artists Wolfram Christ, and by Goetz Richter. These performances
and Planning, was elected President of the New Zealand
represented a significant leap forward in terms of string ensemble
Planning Institute.
performance standards in the School.
NICAI is proud of the diversity of its student body and has
• Jayani Iddawela, a fourth-year Elam School of Fine Arts
made significant progress in 2006 in establishing robust and
undergraduate, took the top prize in the Tertiary Education
sustainable Tua¯kana and Intel ectual Entrepreneurship Programmes.
Commission Student Design Award 2006 Wearable Arts for
A short documentary film of the first year Architecture project
her garment
“Un-label ed”.
“Ocean Studio” has made a major impact at the two international
• Christina Read, Elam School of Fine Arts MFA student, won
conferences at which it has been shown in 2006. The project was
the National Drawing Award 2006 from a field of over 550
recognised for its innovative approach of using the diversity of the
entrants with her drawing,
“I should have been a detective”.
rESEarCh aNd CrEaTIVE wOrK IN ThE ElaM SChOOl OF FINE arTS
Described as a “cultural ethnographer, scavenger and archivist”,
NICAI’s Elam School of Fine Arts lecturer Daniel Malone has been
working global y to produce a proliferation of outcomes from his
artistic research in 2006. From New York to Santiago via Cracow,
Berlin, Melbourne and Singapore, Malone has been investigating
New Zealand’s historical and social connections with foreign
locales.
Conceptual concerns are at the core of his practice, with
the intent often being to poke fun at dominant ideologies and
didactics. For example, when selected by renowned curator Fumio
Nanjo to present a performance at “Belief ”, Singapore's inaugural
international biennale of contemporary art in September 2006,
Heating ceramic sweet potato forms to be used in a Hangi cooking real
Malone designed an event which involved people linking hands to
sweet potato for Transversa
, Santiago, Chile, 2006.
encircle City Hal , each one wil ing it to levitate.
Invited to be part of “Transversa” in Santiago in October, Malone
work how nature met culture in the transmission of an important
came up with a root vegetable as the common link between New
food source for indigenous peoples south of the equator. By
Zealand and South America. This work capitalised on the recent
connecting the shared Gondwanaland origin of the plant with its
discovery that a wild species of Ipomoea found in Mexico has
spread by the Portuguese to the East Indies, then to Melanesia,
proved to be more closely related to the kumara than any other
and by the Spanish from their American colonies to the Philippines,
root vegetable. Malone made ceramic versions of the kumara,
Malone lobbed the hot potato of the legacy of colonisation into
fired in kilns, for the exhibition at Galeria Metropolitana, and
the midst of the art world. This work is typical of his practice
prepared a hangi pit for traditional Ma-ori steaming of the local
general y, where research is used to deploy diverse materials that
Chilean variant of the kumara for consumption at the opening.
create situations and spaces that unsettle preconceptions of social
Blending biogeography with colonisation, Malone showed in this
and cultural identity.
FACULTY OF EDUCATION
reviews related to support and service areas of the Faculty, and
the continued integration of both academic and general staff
2006 presented exciting chal enges to the Faculty, with the
members from the Faculty within the wider University.
consolidation of the Faculty’s organisational structures and the
One of the main achievements of the amalgamation was
introduction of new programmes in teacher education and
creating a comprehensive faculty that covers al aspects of
approval of those in social work and human services.
education and social work, from foundation and undergraduate
The three areas of emphasis during the year were purpose,
programmes, through to postgraduate and doctoral programmes,
place and people. The purpose is about the Faculty’s goal of
and across to professional development services.
being at the forefront of education and human services. The place
The new teacher education programmes are based on an
refers to the continued efforts of the Faculty to become ful y
evidence-informed, outcomes-focused approach to prepare
integrated with the wider University and the people are the most
students to teach diverse learners. The aim is to produce
important asset that the Faculty has.
graduates who have the research skil s, subject matter and
The Faculty is now a little over two years old and during
pedagogical understandings to enable them to teach in ways
that time much has been achieved, with a significant number of
that focus on learning methods and address current disparities in
developments in 2006. These include the consolidation of the
educational achievement.
Faculty’s organisational and committee structures, the relocation
The introduction of the new organisational structure
of al academic staff members into their new schools on the
incorporating staff within a matrix model of programmes and
Epsom Campus, the introduction of a new suite of teacher
academic schools has emphasised the importance of the effective
education programmes, approvals gained for the introduction of
delivery of programmes in a Faculty where the majority of
new degrees in social work and human services to commence
those programmes have professional requirements, and enabled
in 2007, the development of programmes in col aboration with
academic staff to be grouped in ways that support their teaching
Manukau Institute of Technology, the completion of a series of
and research interests.
During 2006 there has been a considerable consolidation in
the integration of the Faculty with the wider University. This
has occurred in several ways. One has been the completion of
systems reviews in key areas of the Faculty’s functioning such as
the Contact Centre and Marketing, completing a process that
began in 2005. Another has been the success of the Faculty’s
new committee structure and the way in which it sits alongside
that of the University. It is pleasing to see the Faculty and its staff
now ful y involved in the academic and administrative life of the
University.
The Centre for Educational Design and Development continues
to work with academic staff who are developing new and
innovative courses and teaching programmes. The main emphasis
during 2006 has been the use of the Internet to reach out to
and support off-campus learners, provide new opportunities for
campus-based students and create a learning environment that
is reflective of today's lifestyle. To date, some 180 courses have
been made available through flexible study options.
International y, the Faculty continues to make significant
advances. This has occurred in four areas. They are the successful
col aboration with the Department of Applied Language Studies
and Linguistics (DALSL) to consolidate and grow the Bachelor
of Education (TESOL) in conjunction with Malaysian tertiary
institutions; the professional development contacts that exist
between teachers and principals in various Asia-Pacific countries;
the formal links established with other tertiary organisations to
enable joint research, teaching and professional development
opportunities; and contacts with Universitas 21 partners and
other institutions for the development of mutual exchanges and
benchmarking.
In addition, a new organisation, the Asia-Pacific Education Deans
Association, was formed in October 2005 with the Dean of the
Faculty of Education as one of the inaugural members. Dr Langley
was elected Deputy-Chair.
Throughout 2006 the Faculty has undergone reviews of
staffing for both academic and general staff and it is a credit to all
involved that they have been completed successful y. The level of
commitment and professionalism demonstrated by the staff during
these processes must be commended as they have adopted a
“business as usual” approach to al of the functions of the Faculty
are encouraged to progress to the ME, thereby getting both
and have done so in a very effective manner.
degrees in the normal four years. Twenty students entered this
The relationship the Faculty enjoys with its communities of
programme, and have gone wel in their first year.
interest are a major strength. These relationships are crucial for
PhD enrolments in the Faculty over the last few years have
any faculty delivering professional qualifications and in education
risen steadily, effectively doubling over the last five years from 113
and social work. Where these communities are both complex
in 2002 to 219 in 2006.
and diverse, they are particularly important. Relationship building
International linkages continue to be a focus for the Faculty.
takes time and considerable effort, and staff undertake the
A group of researchers visited China, developing contacts at
process ably and wil ingly.
foremost Chinese universities. As a consequence of previous
visits, foreign academics from leading Chinese institutions have
Highlights included:
been able to take sabbatical leave at Auckland, postgraduate
• The Faculty organised and hosted the 125th jubilee
students may come to study here, and there are other activities
celebration of teacher education in the Auckland region.
involving cooperation at a research programme level. The China
• A notable achievement for the Faculty was a record year for
initiative is seen as a critical long-term investment for the Faculty.
doctoral completions, with 22 graduates being capped (13 in
A new connection was formed in 2006 through the generosity of
PhD and 9 in EdD) in graduation ceremonies in 2006. This
an alumnus who endowed a scholarship for Vietnamese students.
reflects a number of initiatives taken over recent years by the
Linkages with Vietnam are seen as the next step in outreach plans
former School of Education to facilitate both enrolment and
for the region.
completion of doctoral students.
Fol owing the move of Electrical and Computer Engineering to
new facilities in 2005, the expanded and refurbished Engineering
FACULTY OF ENGINEERING
Library was opened at the end of 2006. The Library has grown
by over two-thirds, contains a computer-based teaching room, and
The strength of any organisation, a university in particular, is its
a strong and steady growth in holdings. The Library is an effective
people. The Faculty of Engineering enjoys a very strong group
source of information for Engineering staff and students.
of staff and students, many of whom have received external
The roof of the Engineering tower block has been reconfigured
recognition for their achievements over the year. Of particular
as a Green Roof as part of a research project. This is a technique
note was the election of Distinguished Professor Peter Hunter
addressing stormwater pol ution issues, and has involved creating
to be a Fel ow of the Royal Society of London. This is a high
the ability to hold rainfal in a natural ecosystem on the roof itself.
honour, and is a great acknowledgement of the work of Professor
The project is valued both as a research activity and as a symbol
Hunter. A pleasingly large number of staff were successful in
of the Faculty’s commitment to the inclusion of sustainability in
competitive research funding applications and students also had
Engineering practice.
their successes.
The New Zealand Network for Earthquake Engineering
The “Accelerated Pathway” undergraduate opportunity had
Simulation (NZ-NEES) facility was created this year, and as an
its first year in 2006. This is a programme where wel -prepared
international IT link to the NEES network in the US it enables
students, who have demonstrated academic achievement at high
researchers to have a very high bandwidth connection with major
school, can gain their BE in three years as opposed to four, and
research facilities worldwide. This permits a virtual presence for
ThE lIghT METalS rESEarCh CENTrE
The Light Metals Research Centre was established in 2002 as
of the Centre is truly international with large contracts in all
a cross-faculty centre in Engineering and Science, to build on
spheres of the international light metals industry, including primary
the international reputation and expertise in aluminum smelting
aluminium producers on al continents, electrode and refractory
developed by Emeritus Professor Barry Welch and his associates
manufacturers in Europe and Asia, environmental control
over 20 years. Together with the Research Centre for Surface
companies in Scandinavia and major Australasian companies
and Materials Science, the Centre incorporates wide-ranging
and government agencies. The research team has won several
expertise in the surface science of light metals, materials
international awards for its work.
engineering, and high temperature process engineering and
The Centre’s laboratories are equipped with an extensive range
process control.
of sophisticated analysis and simulation equipment including X-Ray
The Centre is led by Professor Mark Taylor, who joined the
diffractometers, scanning electron microscopes (field emission and
University from Comalco where he held positions as General
environmental), mass spectrometers (TOF-SIMS and Quadrupole),
Manager Technical, directing Comalco's reduction research and
an X-ray photoelectron spectrometer (the only machine in
development and providing technical support to Comalco's three
New Zealand), atomic force microscope, and a number of high
operational smelters, and General Manager Operations for the
temperature furnaces and pilot scale equipment.
largest of these at Boyne Smelters in Central Queensland.
In addition to research and teaching within the University, the
The Centre has grown rapidly since establishment so that it
Centre provides specialist courses for the smelting industry, in
now has more than 30 researchers with a cohort of 19 students.
particular the Postgraduate Certificate in Light Metal Reduction
The Centre's team includes Professor John Chen, Professor Jim
Technology which is the international benchmark qualification for
Metson, and Associate Professor Margaret Hyland. The research
smelting operations.
set-up of experiments, real-time data flows, and even remote
• Professors Debes Bhattacharyya, Wei Gao and Mark Taylor,
control of the actual testing. The Auckland facility is the first
along with Drs Neil Broom, Yu Lung Chiu, Roger Dunn,
such site outside of the US. A side benefit is that the facility also
Rainer Seidel, Xun Xu, Associate Professor Margaret
permits the echoing of the Auckland Traffic Control Centre – the
Hyland and a number of other staff, received significant
col ection of al real-time data from the Auckland road network –
grants.
and hence is a great asset for the Faculty’s Transportation research
• Matthew McCormick, a graduate with a conjoint BA/BE in
and teaching programme.
Economics and Biomedical Engineering, received a Woolf
A strong focus of 2006 was the celebration of the Faculty’s
Fisher scholarship to study for a DPhil at Oxford.
Centennial. This was marked by a very successful set of Winter
• Dr Michael O’Sul ivan Jr and Dr Cameron Walker, together
Lectures, an Open Day for the community and a Centennial Week
with some of their students, won a prize in the Spark business
attended by a large number of domestic and international alumni,
case competition.
culminating in a Centennial Dinner at which the Prime Minister spoke.
One of the pleasing outcomes of the celebrations has
been the re-energisation of the Auckland University Engineers
FACULTY OF LAW
Association (AUEA). It is led by a group of able and committed
alumni, and has indicated that it is dedicated to supporting the Faculty.
The Faculty of Law continued its delivery of the undergraduate
LLB and LLB(Hons) programmes. Auckland law students continue
Highlights included:
to be highly sought after by employers and a pleasing number
• The Formula SAE (Society of Automotive Engineers) race
have been successful in scholarship applications and admission
car team placed sixth in the Australian competition. This is a
to prestigious northern hemisphere institutions for postgraduate
student-run activity. The team had a successful transition from
study.
the founding group to a second generation of leadership; a
In 2006 the Faculty’s LLM programme has a postgraduate
most important step, and a tribute to the mentorship of the
student body with approximately 40% made up of international
academics involved.
students. Teachers in the postgraduate programme have come
• A team from the Mechanical Engineering Department won
from a diverse selection of international universities, as wel as
the Warman competition. This is a student design prize which
some practising leaders of overseas and local law firms. The
is competed for against top Australian universities.
Faculty created the role of Postgraduate Manager Europe to aid
in the development of the programme’s international profile. This
Awards, grants and scholarships for staff and students in the
person attended LLM fairs throughout Germany. A Board for
Faculty of Engineering include:
Postgraduate Law and Tax was established. This board serves as
• Professor Bruce Melvil e was elected as a Fel ow of the Royal
a largely external board of reference to advise on content and
Society of New Zealand, Professor Wei Gao was awarded
delivery of the Faculty’s postgraduate courses.
a James Cook Fel owship, Professor Andrew Pul an was
2006 has been a strong year for the Faculty’s doctoral
promoted to the rank of Professor, and Professor Mick Pender
programme. At the autumn graduation we had two Law PhD
was given a University of Auckland Teaching Excel ence Award.
students graduating: senior lecturer Nin Tomas and John Bunbury;
• Dr Edmund Crampin received a Marsden Fund grant.
Eric Kwa graduated PhD in the spring ceremony.
The Law School continued to experience strong interest in
rESEarCh IN ThE FaCulTy
its international student exchange programme this year, with
OF law
25 Part IV Law students on outbound exchange. This is similar
to the number of outbound students in 2005. The number
of inbound exchange law students increased in 2006, with 26
The Faculty has a comprehensive programme of work on
students studying at Auckland. It is particularly pleasing to note
Criminal Law and Justice with several research projects
that nine of these students stayed on for a second semester.
focused on domestic and international criminal law and
The Law School concluded new law student-specific exchange
policy. The international dimension of criminal law has
agreements with Keio Law School in Japan (supplement to an
become increasingly important in recent times, with various
existing university-wide agreement), Utrecht Law School in the
tribunals now dealing with crimes against humanity and
Netherlands (new exchange agreement involving the Faculties of
the Rome Statute binding treaty parties to international
Law, Science and Arts) and the University of Ghent in Belgium
cooperation in dealing with war criminals. Several members
(supplement). The Law School is also in the process of finalising
of the group are working on aspects of these developments;
a law student-specific supplementary exchange agreement with
Kevin Hel er’s work in relation to the Saddam trial and Iraqi
Lyon 3 (Université Jean Moulin) in France.
criminal procedure was relied upon by lawyers for Saddam's
This year has seen one new appointment to the Faculty and
co-defendants before the Iraqi High Tribunal. Members of
a number of notable staff successes: American Kevin Hel er
the Faculty have been active also in evidence law research
was appointed in June as lecturer specialising in international
and criminal procedure: in 2006, Associate Professor Optican
criminal law, domestic criminal law and evidence; Peter Sankoff
was an external adviser to the Law Commission’s review of
was promoted to senior lecturer; and Dr Elsabe Schoeman was
evidence law and is completing a co-authored text on the
promoted above the senior lecturer bar. Warren Brookbanks
Evidence Act 2006, Kevin Hel er’s “Cognitive Psychology of
was appointed to a Chair and 2006 saw three staff promoted to
Circumstantial Evidence” was published in the prestigious
Associate Professorships: Scott Optican, a leading authority on
Michigan Law Review, while Peter Sankoff completed a new
criminal justice and policing issues; Paul Myburgh, a leading scholar
handbook on the law relating to witnesses in Canada along
in maritime law; and Julia Tolmie, a criminal law specialist.
with the annual update of his substantial text on that subject.
The Faculty has been keen to develop South Pacific legal
Other members of the group are engaged in important work
studies further. This year it established a Board of Reference for
on New Zealand criminal justice policy and sentencing reform,
Pasfika students and South Pacific Legal Studies. Several academic
and a third edition of Professor Brookbanks’s co-authored
staff have experience as consultants and researchers in Pacific
criminal law treatise has been completed.
legal issues, and we wil seek to work with col eagues in Pacific
Members of the Faculty also undertake extensive work
institutions to take this further.
on Public and International Law including: the role of public
Senior law students enlisted with the Law School’s Equal
interest litigation in social change, the impact of public law
Justice Project staff in a three-hour drop-in legal advice clinic
values in the private sphere, the processes of constitutional
at Waitakere. Supervised by volunteer and staff solicitors, the
change in New Zealand, constitutional dimensions of human
students gained real life experience of handling everyday queries
rights law, international liability for nuclear shipments, and
and giving practical advice.
issues concerning international trade and globalisation.
A number of alumni have achieved judicial appointment or
Professor Mike Taggart continues his research projects into the
notable successes including Judge Anand Satyanand DCNZM
legal control of vexatious litigants and public law controls on
(LLB 1970) who was appointed as Governor-General, succeeding
the use of private property.
Dame Silvia Cartwright. Judge Satyanand is the third graduate of
The Centre for Environmental Law is active in ecological
Auckland to have become Governor-General. The University of
justice, the role of international law in sustainability, and
Auckland recently awarded His Excel ency an honorary Doctor of
domestic legal issues of resource management. Te Tai Haruru,
Laws degree. The Hon Justice Lyn Stevens (LLB(Hons) 1970) has
the Faculty’s Ma¯ori section, has been working on indigenous
been appointed a judge of the High Court. Lyn is also an alumni
concepts of law and their relationship to Anglo-New
representative on the University Council. He held the office of
Zealand conceptions, and on Ma¯ori women’s experience of
Pro-Chancel or from 2001 to 2003. His elevation brings the
discrimination. A substantial text on medical law in New
number of Auckland alumni sitting on the High Court as judges to
Zealand was produced with substantial involvement of two
12, and as associate judges to four.
Faculty members, spanning issues of health regulation, capacity
and informed consent.
Highlights included:
Commercial law research focuses on the fundamentals of
• The Faculty hosted eminent visitors in 2006, among them:
private law obligations as wel as business law. That research
Hon Justice Eddie Durie, best known for his long term as
has resulted in Paul Sumpter’s text on Intel ectual Property
Chief Judge of the Ma¯ori Land Court and Chairperson of the
Law:
Principles in Practice and various local and international
Waitangi Tribunal; Professor Brian Simpson of the University of
publications on aspects of private and business law issues.
Michigan Law School, one of the pre-eminent legal historians
in the common law world; and Professor Bil Cornish, formerly
the Herchel Smith Professor of Intel ectual Property at the
University of Cambridge.
Awards, publications and grants for staff and students of the
Faculty of Law for 2006 included:
• The Rt Hon E W (Ted) Thomas was awarded the J F
strong col aborative relationships that exist across the faculties
Northey Prize for Best Published Book in 2005 by the Legal
with biomedical research capacity (Medical and Health Sciences,
Research Foundation for his book:
The Judicial Process: Realism,
Science, and Engineering).
Pragmatism, Practical Reasoning and Principles, published by
2006 marked the first year that the Liggins Institute has
Cambridge University Press.
operated as a large-scale research institute independent of the
• James Townshend, Charlotte Saunders, Jonathan Orpin
Faculty of Medical and Health Sciences. The separation has been
– Winners of the Australian Law Students’ Mooting
carried forward smoothly and both the Faculty and Liggins are
Championships held in Melbourne.
benefiting from the new arrangement.
A notable event in the research arena included the formal
• Paul Paterson, Peter Wil iams – Outstanding Participant
establishment of the National Institute for Health Innovation,
Awards, American Bar Association (ABA) National Criminal
in which the Faculty joined with 13 partner organisations, with
Justice Trial Advocacy Competition in Chicago, Il inois.
funding from the Partnerships for Excel ence scheme.
• US/NZ Fulbright Graduate Awards went to Nicole Roughan
The Faculty’s strong research performance continued with
(BA/LLB 2005) and Katherine Sanders (BA/LLB(Hons) 2004),
external research revenue of over $39 mil ion received in 2006.
who will both be studying in the LLM programme at the Yale
In this year’s HRC funding round there were three successful
University School of Law. Since graduating from Auckland,
projects including two new programmes and one programme
Nicole completed an LLM while employed as an assistant
extension, and three emerging researchers received First Grants,
lecturer in the Law Faculty at Victoria University of Wellington.
al with a total value of $11.3 mil ion. In addition to these,
Katherine worked for the New Zealand Court of Appeal, the
UniServices Ltd was awarded a number of grants for work to be
Supreme Court and, most recently, the law firm Chapman Tripp.
conducted in FMHS by Faculty and UniServices staff.
Biological imaging has been a growing strength of the Faculty
for a number of years and 2006 saw further development and
FACULTY OF MEDICAL AND
consolidation in this area. Dr Alistair Young was appointed
HEALTH SCIENCES
Director of the Biomedical Imaging Research Unit. A live cell
imaging facility was commissioned and a new transmission
The Faculty of Medical and Health Sciences aims to improve
electron microscope is currently being instal ed. This, coupled
the health of local, national and global communities through
with the continued success of the Centre for Advanced MRI,
excel ence in teaching, research and service. The University was
places the Faculty at the forefront of imaging technology.
ranked 26th in the
Times Higher Education Supplement Biomedical
In partnership with the Breast Cancer Research Trust a
University Rankings, up from 33rd in 2005, emphasising the
new Chair of Breast Cancer Research has been established with
ThE auCKlaNd CaNCEr SOCIETy rESEarCh CENTrE
The Auckland Cancer Society Research Centre (ACSRC), in the
laboratories thus requires a wil ingness to engage with industry,
School of Medical Sciences of the Faculty of Medical and Health
which can provide the complementary expertise and funding.
Sciences, celebrated its 50th anniversary in November 2006 with
These points are exemplified by the development of DMXAA
a public information day, a formal reception, and an international
and PR-104, where the early scientific discovery work on both
scientific symposium. In 50 years the ACSRC has grown from five
concepts began in the mid-1980s as grant-funded research in the
to about 100 staff and research students, but its main focus has
ACSRC, but required commercial involvement (by Antisoma and
remained the design and development of new drugs for cancer
Proacta respectively) to undergo clinical development.
therapy. Its record to date in bringing eight new cancer drugs to
The ACSRC has had such commercial col aborations since 1978
clinical trial (many of them being first in their class) has established
when its first drug, amsacrine, was brought to Phase I trial by the
it as a major academic drug development centre. The ACSRC
US National Cancer Institute and then licensed to Parke-Davis,
is also a founding member of the Maurice Wilkins Centre for
beginning a 25-year research col aboration with the company and
Molecular Biodiscovery.
its successors (Warner-Lambert and Pfizer). Current research
One major highlight for the ACSRC in 2006 was the successful
projects in the ACSRC include work on several other classes of
Phase I trial of its antivascular agent DMXAA in non-smal -cell
hypoxia-activated prodrugs apart from PR-104, on inhibitors of
lung cancer, conducted from Auckland by Associate Professor Mark
DNA methylase enzymes, on new bioreductive TB drugs and
McKeage. This has prompted the UK biotech company Antisoma
on immunosuppressive agents. Basic research on the targets and
to take the drug to Phase I I trial for this indication. A second
mechanisms of action for DMXAA and a new topoisomerase
highlight was the Phase I clinical trial of the hypoxia-activated
inhibitor SN 28049 continue, as does work on gene therapy
prodrug PR-104. Trials began at Waikato Hospital in early
approaches and on the ubiquitin/proteasome pathway in cancer.
January, and at sites in Melbourne and Los Angeles, funded by
These projects include commercial col aborations with Supergen
the company Proacta Inc that was set up by Auckland UniServices
Inc, Incitive Ltd, and the Global Al iance for Tuberculosis, in addition
in 2001.
to those with Antisoma and Proacta.
Drug development is a very multi-disciplinary endeavour,
Future goals include the development of screening technologies
requiring legal, regulatory and management skil s in addition to
to take advantage of the plethora of new molecular targets being
scientific and clinical expertise. It is also lengthy and expensive, with discovered, and a concomitant expansion in translational research
lead times in excess of ten years and a typical Phase I I trial costing
to ensure that more of the laboratory output can be trial ed in
at least US$100 mil ion. Successful drug development by academic
New Zealand.
an appointment likely in early 2007. The Neurological
• The academic achievement of the co-directors of the
Foundation has announced it wishes to fundraise for the
Auckland Cancer Society Research Centre was recognised
appointment of a Neurological Foundation Chair of Clinical
with the award of the Hercus Medal to Professor Bruce
Neuroscience – a development very strongly supported by the
Baguley and Gluckman Medals to Professor Bil Denny and
Faculty.
Professor Bruce Baguley.
FMHS provided one of three successful applications from
• A number of present and past staff of the Faculty were also
The University of Auckland in Round 3 of TEC’s Innovation and
recognised in the 2006 New Zealand Queen’s Birthday
Development Fund. Titled “Simulation Training and Research
Honours list. Professor Cynthia Farquhar, Professor of
in the Health Professions”, the project, led by Professor Alan
Obstetrics and Gynaecology and Deputy Clinical Director
Merry, provides a high fidelity human patient simulator and
of Gynaecology, was made a Member of the New Zealand
associated audio-visual equipment in the new Advanced Clinical
Order of Merit for her work in women’s health. Professor
Skil s Centre. The resources wil be used in several col aborative
Lynn Ferguson, head of the discipline of Nutrition, was made
projects to establish simulation-based courses in anaesthesia and
a Companion of the Queen’s Service Order in the recent
other acute-care specialties; to enhance the quality of training
honours list and Dr James Watson, former Professor of
in the management of critical y il patients for undergraduate
Molecular Medicine, was made a Companion of the New
and postgraduate medical and nursing students, paramedics, and
Zealand Order of Merit for services to scientific and medical
rescue workers, and develop new inter-professional courses; and
research.
for the conduct of research into human factors and patient safety
within Anaesthesia, Emergency Medicine, and other disciplines.
Awards, grants and scholarships for staff and students:
2006 saw the adoption of a new academic governance
• Professor Rod Jackson of the School of Population Health
structure for the Faculty which wil ensure a better alignment
received the Stevo Julius Award for 2006 from the
of Faculty and University processes and streamline academic
International Society of Hypertension for his work in helping
governance matters for the Faculty.
GPs assess patient risk from cardiovascular diseases.
The year finished on a high note as the Faculty celebrated
• Claire French, a PhD student in the Department of Anatomy
the successful outcome of the case presented to TEC (and then
and Radiology, was named the MacDiarmid Young Scientist of
Cabinet) for additional funding for the MBChB programme. The
the Year. Through her col aborative research with ESR, she has
increase recognises the current very significant under-funding of
developed a testing method that distinguishes mouth, vaginal
the medical programme and wil enable us to further enhance the
and skin cel s for use by forensic scientists.
already excel ent programme.
• Swati Sharma, a Year 3 PhD Student with Professor Richard
The Faculty’s general and academic staff have been active and
Faul in Anatomy and CEO of Chiasma 2006, was the winner
productive in al areas of teaching, research and service in 2006
of this year’s $40,000 Spark Entrepreneurship Chal enge.
and consequently much has been accomplished.
Working with fel ow team member Pradeep Raman, Swati’s
winning entry was the business plan for Myskil pool.com, an
Highlights for 2006 included:
online people market where skil ed professionals may create
• Professor Tim Cundy, a member of the Auckland Bone Group,
multimedia portfolios of themselves for potential employers to
was named a Fel ow of the Royal Society of New Zealand.
view.
FACULTY OF SCIENCE
Biodiscovery directed by Professor Baker, was relaunched in
August as the Maurice Wilkins Centre for Molecular Biodiscovery
2006 saw a number of important new developments in the
at a ceremony attended by the Honorable Trevor Mal ard, Minister
Faculty of Science.
of Economic Development. The late Professor Maurice Wilkins,
The Institute of Earth Science and Engineering (IESE) was
a New Zealander and co-discoverer of the structure of the
launched in November 2005 as a joint initiative with the Faculty of
DNA double helix, shared the 1962 Nobel prize for Physiology
Engineering. The Institute wil be administered through Auckland
or Medicine with Francis Crick and James Watson. The Maurice
UniServices Ltd and wil be based on the successful model
Wilkins Centre incorporates other major groups drawn from
provided by the Light Metals Centre.
the Faculty of Medical and Health Sciences and the Faculty of
The year also saw the formation of the Centre for Software
Engineering. It is intended to expand the Centre to include other
Innovation, again a joint effort of the Engineering and Science
groups from elsewhere in New Zealand, most of these having a
faculties. John Corey, a person with extensive experience in the
focus on structure and on structure-based directed drug
software industry, has been appointed to the position of Director.
design.
This Centre aims to promote better interactions between staff
The other Centre of Research Excel ence accommodated in
and industry with a view to boosting the research revenues
the Faculty is the New Zealand Institute of Mathematics and its
accessed by staff from the ICT area.
Applications. Co-directed by Professors Marston Conder and
During the closing stages of the year, a new School of
Vaughan Jones, the NZIMA involves a number of University
Geography, Geology, and Environmental Science was formed. This
researchers drawn local y, and other academics located elsewhere
move reflects the increasing need to gain economies of scale
in New Zealand. It is hoped that both these Centres wil be
from academic teaching units, and the growing importance of
successful in continuing their funding in the current CoRE round,
earth and environmental sciences and urban themes in a world
given the major positive impact they create on research and
where energy, water, climate change and environmental issues
scholarship in the Faculty of Science.
are increasingly matters central to decision-making. Associate
This year, Faculty members have also been involved in
Professor Wil ie Smith has been appointed Acting Director and a
applications for Centres of Research Excel ence that are hosted by
new School Manager is about to be appointed. The Directorship
other institutions. If successful, these wil contribute significantly to
has been advertised and it is hoped that an appointment to the
the Faculty research activities.
post wil be made in the New Year.
The Faculty participated again this year in the PBRF
In overview, the 2006 year was a chal enging one, but
assessment exercise, this being the second time that such an
nevertheless one in which there have been considerable academic
exercise has been carried out in New Zealand. Once again
achievements. As the Faculty looks forward to the 2007 year it
this exercise required a major effort and the results have
does so in the knowledge that the quality of science and the hard
already generated interest. The
Times Higher Education
work of staff wil be the foundation upon which the Faculty will
Supplement rankings for universities have been released for
continue to be based.
the 2006 year, yielding a pleasing result for the University with
the ranking received being 46th, six places up from 2005. The
Awards for staff included:
Science ranking was 58th, up from 72nd the previous year, and
• Professor Ted Baker, Director of the Maurice Wilkins Centre,
the Biomedical ranking, to which both Science and Engineering
received the prestigious Rutherford Medal of the Royal Society
contribute substantial y, together with the FMHS, yielded a very
of New Zealand. This award is given to the top scientist in
pleasing overal ranking of 26th.
New Zealand for the year and recognises both Professor
Much effort was also expended during the latter part of the
Baker’s key contribution to structural biology and the many
year on preparing reapplications for two Centres of Research
other contributions his group has made to knowledge of
Excel ence hosted by the Faculty. The Centre for Molecular
protein structure.
ThE INSTITuTE OF EarTh SCIENCE aNd ENgINEErINg
The Institute of Earth Science and Engineering (IESE) is an
Institute is part of the Institute of Earth Sciences and Engineering),
interfaculty institute which aims to capitalise on research strengths
geotechnical engineering, petroleum geophysics, coastal and
at The University of Auckland in a wide range of areas from
catchment studies and volcanic hazards. The Institute has support
geotechnical engineering to volcanic hazards, water management
from the Earthquake Commission for positions in volcanic
and geothermal energy extraction. Established and launched at
hazards, geotechnical and earthquake engineering. The IESE has
an “Underground Auckland” meeting at the end of 2005, the
sponsored an initiative to coordinate energy research across the
Institute has now completed its first year of operation. The
campus and represented the University in successful proposals for
University has been fortunate to recruit Professor Peter Malin,
research on energy. During the past year the IESE also sponsored
an international y renowned geophysicist from Duke University in
public lectures in climate change from Lord Ron Oxburgh (UK)
the US who specialises in microseism detection and application to
and Professor Geoff White (US), a one-day meeting on volcanic
geothermal energy prospecting, to direct the institute. Research
hazards, and played a key role in organising the annual Geothermal
work is already under way in geothermal energy (the Geothermal
Association Workshop.
0
ThE lIggINS INSTITuTE
The Liggins Institute holds an international reputation, and its
col aborators include:
The University of Southampton (UK): Both the Develop Mental
Origins of Health and Disease Division, lead by Professor M Hanson,
and the MRC Epidemiological Resource Centre are close col aborators
in theoretical, experimental and clinical studies. Joint intel ectual
property has been filed, and students and fel ows have been
exchanged.
The University of Cambridge (UK): In 2006 the Institute established
a smal branch within the Department of Pathology, Cambridge,
establishing there Professor S Gilmour who remains a staff member
of The University of Auckland. The aim is to raise the Institute profile,
develop new relationships, and ensure access to new technologies,
bioinformatics and funding.
National University of Singapore: A major new col aboration is
developing with the National University of Singapore (NUS) with
assistance from our diplomatic service. Several joint projects are
underway or in grant submission and a joint application is being made
for a new flagship programme on metabolic disease with Professor
Chong at NUS.
Several staff received high academic recognition this year:
• Dr Mark Vickers received the Hamilton Award of the Royal
The Prime Minister Rt Hon Helen Clark opened the Sir John Logan Campbell
Society of New Zealand for his pioneering work proving that
Classroom, June 2006.
developmental programming can be reversed.
The Liggins Institute is the first of the University’s Large Scale Research • Professor Peter Gluckman was the first New Zealander inducted
Institutes (LSRI) and thus operates outside of, but in col aboration
into the UK Academy of Medical Sciences.
with, the faculties.
• Professor Lobie was elected a Fel ow of the Royal Society New
Established in 1970 the Liggins Institute has made enormous
Zealand.
progress in 2006, in bedding down the operating processes of a LSRI
within the University framework. The move to a LSRI has involved
• The contributions of the Institute to the City were recognised by
redesign at al levels within the Institute, but particularly on the
the Auckland City Council in making Professor Gluckman only its
administrative side, and that reorganisation is largely complete.
fourth Distinguished Citizen.
The newly opened Sir John Logan Campbel classroom, the only
classroom in New Zealand located in a University and designed for
the regular provision of teaching to high school children, highlights
the innovation possible with the development of the LSRI concept.
The curriculum has focused on modern biology and biotechnology,
and a teacher has been appointed supported by a grant from TEC.
The facility is in high demand and feedback shows it to be a very
innovative and exciting development. The classroom was opened by
Prime Minister Helen Clark in June 2006.
The Institute is seen as the empirical leader in the fields of
mammalian developmental plasticity, growth and development, and the
developmental origins of health and disease. This leadership is shown
in papers, high profile invitations and visits, and in the increasingly
authoritative role we play in international col aborations. The Institute
has made very important breakthroughs in breast cancer biology, and
has continued research in areas of developmental neuroscience and
neuroprotection.
2006 has been another successful year with many research
highlights reflected in outputs from our international, national, local
and inter-group col aborations. Local y the developing relationship with
AgResearch and Landcorp has been manifested in the joint purchase
of a major genomic and epigenomic technology platform and several
other joint applications are underway.
Professor Peter Lobie (left) and Dr Mark Vickers.
auCKlaNd uNISErVICES lIMITEd
UniServices protects and commercialises the University’s
industry sectors with a broad array of technology. In 2006 the Light
intel ectual property, runs its contract research and development
Metals Research Centre’s revenue grew to over $3 mil ion.
activity, and supports an increasing number of commercial y-
focused specialist research and service centres at the University.
In the last year UniServices also:
Particularly notable in 2006 was the continued strong growth of
• Launched the Centre for Software Innovation, appointing John
spin-offs, al of which continued to license University research and
Corey as Centre Director – the Centre has already reached
raised significant capital during the year. The market capitalisation
the first $1 mil ion in contracts.
of companies based upon technology licensed by UniServices now
• Provided contract and product management support to new
stands at $650 mil ion. This figure shows the commercial sector’s
Partnerships for Excel ence in Health Informatics and Plastics.
assessment of their value. UniServices remains involved with and
• Recruited the inaugural director and supporting staff for the
owns shares in most of these companies. Proacta announced
Institute of Earth Science and Engineering and negotiated
success in Phase I trials of its novel pro-drug targeting hypoxic
the incorporation of the company SONDI, which provides
tumors and has recently closed a $35 mil ion second round of
instrumentation in the field of seismology, as an integral part of
financing. Neuren raised an additional $6 mil ion through share
the Institute.
placements. Brainz listed on the ASX and raised $14.3 mil ion.
• Provided the administrative and business support for the new
Recent additions to the family of UniServices’s spin-offs also did
Director of Food, Nutrition and Health.
wel in achieving their initial rounds of financing with CoDa and
Telemetry, raising $14 mil ion and $0.75 mil ion respectively.
Strong continued growth was experienced across a range of
UniServices has focused on identifying key investment partners
public-good contract research was undertaken for Government
to enable the development of early stage activities required to
agencies. Through projects, such as the Meningococcal B Vaccine
increase the number of spin-off companies and revenue-generating
trials programme, asTTle and the establishment of the Werry
opportunities based on research at the University.
Centre, University expertise contributed significantly to national
This year 25 patents were filed and 15 licensing deals were
gains in health and education.
signed, to reach new totals of 199 and 130 respectively. These
UniServices successful y ensured that the English Language
accomplishments lay solid foundations for future income flows.
Academy, affected by an international downturn in overseas
UniServices has developed closer relationships with key
students, met its financial forecast as a result of careful
government organisations and involvement with FRST led to
management of costs.
the joint piloting of an advisory group to bring business and
Success with new Contract Education business included the
university research closer together. The result has been ongoing
delivery of a first-ever postgraduate qualification in the Middle East
discussions to found two new companies based on research at
in 2006.
the Bioengineering Institute in the areas of medical devices and
Positive Phase I (clinical proof of efficacy in humans) clinical trial
software for medical imaging.
results for the DMXAA cancer drug licensed to Antisoma led to
2006 saw the establishment and strengthening of new
a more than doubling in Antisoma’s share price. Development
commercial hubs at the University which led to even closer
of this drug has potential for very significant flow-on benefits to
alignment of academic research directly related to external need.
the University in licensing fees and the enhanced reputation for
UniServices cooperated with the University to initiate five additional biotechnology in New Zealand.
commercially-focused centres and institutes able to interface with
Several multi-mil ion dol ar research contracts were signed with
overseas multi-national companies. For example, Genetech will
be using Zebra fish expertise to evaluate new drug targets. The
University of Auckland is now a leading scientific and commercial
centre for the use of this animal model to understand pathology
and early treatments of many important diseases.
UniServices remains focused on growing a scalable business
with systems to support future revenue targets. The company
has completed a new strategy and operating plan to align with
the University’s strategy. It has also implemented a wide range
of activities to enhance internal performance, support systems,
resources and operating procedures.
2006 saw UniServices continue its 18-year record of double
digit revenue growth. The company continues to invest in further
growth and enhanced performance by increasing its support for
the University’s specialist commercial y focused research hubs, and
advancing several key initiatives for expanding the range and scale
of opportunities available for commercial research. The continuing
outstanding support of the University’s academic community and
progress across al activities in 2006 provide confidence for a
further strong result in 2007.
CENTrES OF rESEarCh
ExCEllENCE
The Centres of Research Excel ence Fund was established by
humankind's deadliest pathogens. Within these genomes lies a
the Government in 2001 to support world-class research which
wealth of information about how these organisms survive, what
contributes to New Zealand's development. The aim of the fund
defences they present to the immune system, and what makes
is to encourage a greater concentration of research resources
them pathogenic to humans. The Centre has a large programme
(both intel ectual and financial) in the tertiary sector through the
of research dedicated to understanding the mechanisms of
creation of Centres of Research Excel ence which provide high
pathogenesis of two of the most common bacterial pathogens:
quality, innovative research and research training environments.
Mycobacterium tuberculosis and Staphylococcus aureus, which is
Funding for these Centres is al ocated on a competitive basis,
the archetypal “superbug”, able to develop resistance to al known
with rounds being held in 2001, 2002, and – most recently
antibiotics.
– 2006. Decisions on the 2006 round wil be made in the first
half of 2007.
raTIONal drug dESIgN uSINg PrOTEIN
In the first two rounds, funding was al ocated for seven Centres
STruCTurE aNalySIS.
of Research Excel ence, each hosted by a university. In each
Understanding the structure of protein targets provides a wealth
case, the host institution is responsible for management and
of information that can be used to design and develop new
co-ordination of the research plan, and support for knowledge
chemotherapeutic agents. Once the structure of a potential drug
transfer and networking activities. The University of Auckland was target is determined, in silico computer methods are employed to
successful in obtaining funding for four proposals:
model lead compounds into the protein's active site. Combined
• The Maurice Wilkins Centre for Molecular Biodiscovery;
with this in silico approach, the Centre is able to use advanced
• The National Research Centre for Growth and Development;
synthetic chemistry and protein engineering to develop a range
of compounds based on the lead compound that are then tested
• The New Zealand Institute of Mathematics and its
in assays for activity.
Applications;
• Nga¯ Pae o te Ma¯ramatanga (National Institute of Research
hIgh ThrOughPuT PrOTEOMICS FOr NOVEl
Excel ence for Ma¯ori Development and Advancement).
ThEraPEuTICS.
Funding was provided for six years, with a review after three
The Centre has an advanced proteomics programme for
years. Al Centres at the University of Auckland were successful
the identification of proteins and peptides that can either be
in the review process and now have funding until 2008.
developed as therapeutics in their own right or provide targets
for structure-based drug design. The main goal is to identify new
MAURICE WILKINS CENTRE FOR peptide therapeutics for diabetes and heart disease.
MOLECULAR BIODISCOVERY
MaThEMaTICS aNd ENgINEErINg TO MOdEl
BIOlOgICal SySTEMS.
director: university distinguished Professor ted baker
In conjunction with the Bioengineering Institute, the Centre is
The Maurice Wilkins Centre began its life in 2003 as the Centre
developing a framework for model ing cel ular and sub-cel ular
for Molecular Biodiscovery, with the coming together of five
processes using advanced mathematical and simulation techniques.
major research groups within the University. Each research group
The markup language “Cel ML” is being developed to encapsulate
had its own scientific interests and directions and independently
the mathematical descriptions of cel functions and the work has
received funds from national and international funding agencies.
stimulated international interest and col aborations with major
While there had been several successful col aborations between
institutions around the world.
the groups prior to the establishment of the Centre, the
realisation that shared interests and the combined expertise
CEll SIgNallINg PaThwayS IN dIaBETES aNd
that the groups could provide to common goals of research
METaBOlIC dISOrdErS.
excel ence in the biomedical and biotechnology field gave the
Every human cel is control ed by highly complex networks of
Maurice Wilkins Centre an international competitive advantage.
proteins cal ed signal ing molecules that work together to regulate
The Centre has gained international recognition for its work in
al the functions of a cel . Research in recent years has started to
the fol owing areas:
unravel these complex networks and this knowledge is beginning
to show that defects in these pathways can play a significant role
NEw aNTIMICrOBIalS ThrOugh gENOMICS
in the development of major diseases. In this area, the work of
aNd PrOTEIN STruCTurE.
the Centre focuses on understanding how defects in these cell
One of the most dramatic consequences of the genome
signal ing pathways contribute to diabetes and cancer.
revolution has been the completion of genomes of many of
also informs an understanding of degenerative disease in later
life. It has direct relevance to agricultural productivity and the
development of healthier foods. These strategies are based on
environmental, including nutritional, approaches rather than on
genetic manipulation.
The research ranges from theoretical through molecular
approaches to applied animal and clinical outcomes and is
designed for ultimate translation for benefit, both in terms
of social advancement through better health and through
commercial and public translation in biotechnology and
agriculture. It studies the molecular and cel ular basis of gene-
environment interactions in development, with particular
emphasis on molecular epigenetics (how patterns of gene
expression are altered without changes in the underlying
DNA sequence). Determining the mechanisms by which early
environmental cues (such as maternal nutrition or stress)
dEVElOPINg CEll BaSEd IMMuNOThEraPy
influence a range of later outcomes (such as metabolism and
FOr CaNCEr aNd OThEr dISEaSES.
cognition) has the potential to al ow application to studies in
The cel s in the immune system are key players in control ing
human populations and pastoral agriculture. A basic focus is that
infectious diseases and also cancer. The Centre is working
of developmental mismatch, a concept the NRCGD developed to
to understand how human cel s recognise infectious agents
explain how the environment at one stage of development can
and cancer cel s, especial y those invading the skin, and how
induce changes that are inappropriate at later stages. Its recent
they attack and destroy these threats. The rare immune cel s
results show that the deleterious consequences of a poor early
that carry out these functions are purified and grown in the
environment can be reversed, offering ways to improve health
laboratory, and the key molecules they use to perform their roles
and pastoral productivity by focusing on nutrition and other
are identified to help in the design of vaccines for both cancer
low-technology interventions. The Centre studies environmental
and infectious disease.
factors that can affect how individuals develop or that can
determine later changes in body function. These studies are
supported by others focused on the conceptual and theoretical
THE NATIONAL RESEARCH
underpinnings of developmental plasticity, the ability of organisms
to develop in a variety of different ways in response to different
CENTRE FOR GROWTH AND
environments. The NRCGD has a high rate of publication
DEVELOPMENT
including many very high impact papers.
The Centre also evaluates how this research can be translated
director: university distinguished Professor Peter
to policy and practice and has an additional focus on ethics,
Gluckman
economic outcomes, policy, and public education. The Centre
seeks to be a role model and innovative in developing best
Studies of the biology of growth and development are
practice in being a networked portfolio of strategical y driven
fundamental to New Zealand, both for advancing human health
and managed research of the highest international standard, in
and for enhancing agricultural productivity. The National Research training and mentoring, in interactions with young people, Ma-ori
Centre for Growth and Development (NRCGD) combines skil s
and Pasifika, and in public education. It sustains strong links to
and research from the Liggins Institute (where the Centre is
end-users, and emphasises translation for social and economic
headquartered), the Faculty of Medical and Health Sciences and
transformation of al New Zealand.
the School of Biological Sciences of The University of Auckland,
Massey University, the University of Otago, AgResearch and over
30 other national and international col aborators. The Centre
has given much attention to developing a strategic approach
THE NEW ZEALAND INSTITUTE
to managing science across these partners. The Centre now
OF MATHEMATICS AND ITS
comprises 120 staff and students with capabilities spanning
evolutionary and developmental biology, genomics, epigenetics,
APPLICATIONS
biomedical science, mammalian physiology, endocrinology,
The NZIMA is headed by Fields Medal ist and Distinguished
neurobiology, cel biology, systems biology, agricultural
Alumnus Professor Vaughan Jones from the University of
biotechnology, public health and policy research. It has an
California, Berkeley, and Professor Marston Conder, with
advanced infrastructure and has seen the formation of a strong,
involvement of the best pure and applied mathematicians and
global y linked network of researchers centred on New Zealand.
statisticians from across the country.
The Centre studies how environmental influences in early life
affect development and have long-term consequences including
The principal aims of the NZIMA are to:
increased risks of prematurity, of being born smal , of developing
• Create and sustain a critical mass of researchers in
obesity or cognitive impairment, and of later developing heart
concentrations of excel ence in mathematics and statistics and
disease, diabetes, osteoporosis or mood disorders. The research
their applications;
• Provide New Zealand with a source of high-level quantitative
structure-preserving model reduction of finite-dimensional and
expertise across a range of areas;
infinite-dimensional systems, and the inverse problem on these
• Act as a facilitator of access to new developments
systems. It particularly seeks to develop the interaction between
international y in the mathematical sciences; and
the theory of explicit reductions of partial differential equations
and the applied inverse problem.
• Raise the level of knowledge and skil s in the mathematical
sciences in New Zealand.
It is model ed on similar mathematical research institutes
NGA¯ PAE O TE MA¯RAMATANGA
in other countries, notably the Fields Institute (Canada), MSRI
ThE NaTIONal INSTITuTE OF rESEarCh
(Berkeley), and the Newton Institute (UK), and is a member of
ExCEllENCE FOr Ma¯OrI dEVElOPMENT aNd
two international consortia: IMSI (the International Mathematical
adVaNCEMENT
Sciences Institutes) and PRIMA (the Pacific Rim Mathematical
Association).
directors: Professors linda smith and michael Walker
The Institute places considerable emphasis on world-class
Nga¯ Pae o te Ma¯ramatanga works towards the transformation
research in fundamental areas of the mathematical sciences
of New Zealand society to achieve ful participation by Ma¯ori in
and the use of high-level mathematical techniques in modern
al aspects of society and the economy. In order to do this, the
application areas such as bioengineering, bioinformatics, medical
Institute seeks to grow and harness Ma¯ori research strength in
statistics, operations research, and risk assessment.
three critical enabling areas: education, health and science. The
A key activity of the Institute is the organisation of two
Institute undertakes research, capability building, and knowledge
thematic research programmes each year, in significant
transfer in each of these areas. A strong commitment to
fundamental areas of the mathematical sciences. The Institute
excel ence in this work ensures that improved socio-economic
runs workshops (for professionals and students from across New
performance by Ma¯ori wil fol ow, contributing to national goals
Zealand), brings leading experts to New Zealand, and supports
and giving the Government a strong return on its investment in
research by the programme directors, postdoctoral fel ows and
research.
graduate students in the theme areas.
The programmes of Nga¯ Pae o te Ma¯ramatanga are in three
The Institute also supports selected Maclaurin Fel ows and
broad categories, and the Institute provides a number of different
postgraduate research students, and sponsors conferences and
funding options to ensure a wide spectrum of opportunities at all
other activities such as the New Zealand Mathematical Olympiad,
levels.
and visits and public lectures by high profile mathematical
scientists.
TE PaE whErawhEra hauTuPua (rESEarCh
PrOgraMME)
New research programmes in 2006 include:
The research programme aims to generate ongoing
gEOMETrIC METhOdS IN ThE TOPOlOgy OF
transformational change through strategical y identified research
ThrEE-dIMENSIONal MaNIFOldS
projects developed under the Institute’s themes with both
contestable and commissioned research projects.
The central theme of this programme is the understanding of
three-dimensional manifolds with particular emphasis on recent
TE PaE whaKaTaIraNga hIraNga (CaPaBIlITy
progress resulting from the use of geometry. The programme
BuIldINg PrOgraMME)
concentrates especial y on the techniques and consequences of
The capability building programme aims to expand and
recent work on the geometrisation conjecture.
strengthen both Ma¯ori and national capability and capacity for
MOdEllINg INVaSIVE SPECIES aNd wEEd
transformational change through research and its applications.
IMPaCT
Activities under this programme include:
• Support and mentoring for doctoral students;
Invasive, non-native species are a major threat to indigenous
biodiversity and other conservation values in New Zealand.
• Curriculum development for Ma¯ori;
As a consequence New Zealand has become a world leader
• A series of writing retreats;
in biosecurity and weed management. There is a strong desire
• Doctoral conferences and symposia;
among New Zealand conservation organisations, environmental
• Training workshops.
managers and ecologists to determine the optimal use of
resources between the competing demands of control ing existing TE PaE whaKawhITINga Ma¯TauraNga
weeds and stopping new weeds, thus minimising the negative
(KNOwlEdgE ExChaNgE PrOgraMME)
impacts on indigenous biodiversity and ecosystem processes.
Working with mathematicians, ecologists and managers, this
The knowledge exchange activities of Nga¯ Pae o te Ma¯ramatanga
programme is progressing towards the design of a mathematical
aim to improve the uptake of research through engagement with
framework for exploring the spread and subsequent impact of
Ma¯ori, and national and international academic communities. The
invading organisms in New Zealand ecosystems.
Institute runs an acclaimed seminar series, and also publishes
an academic journal and a series of monographs. In addition,
ParTIal dIFFErENTIal EQuaTIONS:
researchers from the Institute are actively involved in events in
aPPlICaTIONS, aNalySIS aNd INVErSE
the community, presentations at hui, and policy seminars. The
PrOBlEMS
Institute also runs a biennial international conference, focused on
This programme is centred on the theory and application of
issues facing indigenous peoples worldwide.
STaTEMENT OF SErVICE
PErFOrMaNCE
Daniel Malone, lecturer from Elam School of Fine Arts, with participants in Steal this Smile!
: a performance event at the Singapore Biennale 2006.
INTERNATIONAL STANDING
OBJECTIVE 1
Establish The university of auckland, New Zealand’s premier research university, as a peer of the world’s leading autonomous
universities through association and collaboration, and by an active presence in the international academic community.
• The University organised a Universitas 21 Symposium on Internationalisation and Diversity in order to engender a new strategic
direction for the network. This Symposium involved vice-chancel ors, fund presidents, senior managers and academics from U21
universities, invited international experts and key University of Auckland staff.
• The University made significant progress in advancing its China Strategy. The Confucius Institute was established and the Director
appointed.
• The University hosted President Lu, Yong Xiang the President of the Chinese Academy of Sciences, and conferred an honorary
doctorate in engineering on him.
• The University received several requests for visits from distinguished visitors. These included the Prime Minister of Singapore, the
Minister of Science and Technology of China, the Minister of Higher Education of Saudi Arabia, the Ministers of Education of Turkey
and Jersey, a delegation of Members of the EU Parliament, the Crown Princess of Thailand, the Ambassadors of China, Germany,
Russia, UAE, the President of Tianjin University and the Chancel or of Fudan University.
• The University’s participation in the U21 Programme in Global Issues is progressing. A Certificate in Global Issues has been
approved and wil commence in 2007, hosted by the Department of International Business.
• Analysis is being completed on the audit of the University’s bilateral relationships, which began in February 2006. This audit will
al ow the University to identify its top 20 strategic relationships, thus facilitating the process of prioritising effort and al ocating
resources accordingly. It wil also highlight the relative importance to the University of its membership in Universitas 21,
Association of Pacific Rim Universities and other international networks and policy organisations.
• The Vice-Chancel or signed an agreement with the China Scholarship Council in mid-July. This wil result in the enrolment of some
20 sponsored PhD students annual y for the next five years.
• The University participated in the Chinese-Foreign Universities Presidents’ Forum in Shanghai in July as wel as the Beijing-Forum in
October.
• The University participated in the first Asian-Pacific Association for International Education (APAIE) conference in March at Korea
University and attended the APAIE Executive Committee meeting in July in Japan.
• The University sourced funding for the establishment of the New Zealand Studies Centre at Peking University from the
Government and private donors.
• The first stage of the trilateral partnership between Auckland, Tsinghua and Qinghai Universities is wel underway with approaches
made to the Government as potential partners in this programme.
• The University engages systematical y with New Zealand education counsel ors overseas.
• Generous private donor funding has been secured to support student exchanges between The University of Auckland and Fudan
University.
• The University has made progress on a joint U21 Symposium and research project with Lund University on issues related to
ethnicity, culture and politics.
• The University has implemented a U21 Solander programme to support joint research col aboration with Lund, UNSW,
Queensland and Melbourne Universities.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
The University’s position among New Zealand
First
First
First
First
universities (in international university rankings)
Membership of international associations of universities
Association of Commonwealth Universities
Yes
Yes
Yes
Yes
Universitas 21
Yes
Yes
Yes
Yes
Association of Pacific Rim Universities
Yes
Yes
Yes
Yes
OBJECTIVE 2
Create a distinctive international educational experience for our students, in auckland and overseas.
Daniel Malone, lecturer from Elam School of Fine Arts, with participants in Steal this Smile!
: a performance event at the Singapore Biennale 2006.
• The University established a new position of Associate Director, International Student Experience, and provided enhanced support
and pastoral care services to international students including the International Information Centre, the iSPACE facility and the
International Student Advisory Service.
• An expanded International Student Support Service was established with two international student advisers working with the
existing International Student Activities Officer based in iSPACE to provide a comprehensive package of pastoral care, advice,
cultural programmes and activities.
• A new Associate Director, International Mobility was appointed at the end of the year to lead the student mobility section and to
col aborate with faculties developing options for mobility outside traditional semester-based exchanges.
• The University signed new student exchange agreements with leading research intensive universities, including Utrecht University,
University of Ghent, Fudan University, and University of Bologna.
• The University’s diversification strategy is successful y compensating for the decrease in enrolments from China by building market
share in other countries. These include the USA, Korea, Malaysia and Germany, increasing the cultural diversity of the student body.
• Study Abroad numbers remain steady.
• The University strives to diversify its student body through strategic marketing. There were 12 countries with 50 plus EFTS
attending Auckland. Of these 12 countries, there has been significant growth in Malaysia, Korea and Germany.
• The University’s service agreement with overseas scholarship agencies wil fund the establishment of an international student
adviser for graduate international students, located in the Graduate Centre.
• New exchange destinations have been arranged, with others in various stages of development including King’s Col ege London. The
latter wil respond to a strong preference for a quality London destination arising from a survey of prospective exchange students
at Auckland.
• The University had 35 nominees who were successful y awarded funding in rounds one to four of the New Zealand Undergraduate
Study Abroad Awards (NZUSAA).
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Number of local students undertaking study
88
124
170
151
overseas through 360˚ Auckland Abroad
Number of incoming study abroad and exchange
718
859
1,000
890
students
Number of countries with international enrolments
13
13
14
12
of 50 EFTS or more
RESEARCH AND CREATIVE WORK
OBJECTIVE 3
achieve a PBrF ratio of a:B:C:r rated researchers working at the university of 20:50:22:8 through the development of a high quality
research environment.
• Distinguished Professor Ted Baker of the School of Biological Sciences, was awarded the Rutherford Medal, the highest science award
in New Zealand, in November. Professor Baker is Director of the Maurice Wilkins Centre for Molecular Biodiscovery, one of four
National Centres of Research Excel ence located at the University of Auckland, and has an international reputation in the field of
molecular biochemistry for his work on protein crystal ography and tuberculosis.
• Professor Bruce Baguley, of the Auckland Cancer Society Research Centre, was awarded the prestigious Sir Charles Hercus Medal by
the Royal Society of New Zealand. Professor Baguley was also named New Zealander of the Year by the
New Zealand Herald. This
was particularly fitting as the Research Centre celebrated its 50th anniversary in 2006. Professor Bil Denny and Professor Baguley
have led the Centre over 20 years as it has developed an international reputation second to none in medicinal chemistry and anti-
cancer drug development.
• Distinguished Professor Peter Hunter was elected Fel ow of the Royal Society of London in May 2006. Election as a Fel ow of the
Royal Society of London is one of the highest honours available to scientists international y, and Professor Hunter joins an outstanding
group of 1400 Fel ows and Members which includes 60 Nobel Laureates. Only 40 New Zealand born scientists (of whom eight are
currently living) have ever been elected Fel ows.
• Distinguished Professor Peter Gluckman (Director of the Liggins Institute) was elected Fel ow of the United Kingdom Academy of
Medical Sciences in May 2006. The Academy of Medical Sciences is an independent learned society which promotes advances in
medical science and campaigns to ensure these are translated into healthcare benefits for society. Fel ows are selected primarily for
their contribution to the advancement of medical science, and of a Fel owship of 800, only 22 are based outside the United Kingdom.
• Professor Andy Philpott, of the Department of Engineering Science, was awarded the Hans Dal enbach Prize by the Operations
Research Society of New Zealand. The prize is given for outstanding work in management science and operations research and
recognises Professor Philpott’s international y acclaimed work on yacht design, telecommunications network design, the analysis of
electricity markets, and the optimisation of electricity generation and transmission.
• Professor Howard Carmichael (Physics), Professor Tim Cundy (School of Medicine), Professor Bruce Melvil e (Civil and Environmental
Engineering), and Professor Peter Lobie (Liggins Institute) were elected as Fel ows of the Royal Society of New Zealand. Fel owship
of the Royal Society of New Zealand (FRSNZ) is an honour conferred for distinction in research or the advancement of science or
technology and only 12 Fel ows were elected nationwide in 2006.
• Professor James Sneyd (Mathematics) and Associate Professor Catherine Casey (Management and Employment Relations) were
awarded James Cook Fel owships by the Royal Society of New Zealand. The James Cook Research Fel owships are awarded to
"forward thinking" researchers who wil make a significant contribution to New Zealand’s knowledge base. The Fel owships al ow
them to concentrate on their chosen research for two years and are widely considered as among the most prestigious science and
technology awards in New Zealand. Of nine current James Cook Fel ows, four are staff members of The University of Auckland.
• Associate Professor Penny Brothers (Chemistry) and Dr Melanie Anae (Director of the Centre for Pacific Studies) were awarded
senior Fulbright New Zealand Scholarships. Only four scholarships were awarded nationwide. Associate Professor Brothers will
spend six months at the Los Alamos National Laboratory (LANL) in New Mexico, studying porphyrin complexes which are able to
make new materials with a number of scientific and commercial applications. Dr Anae wil spend four months at the University of
Hawai , exploring identity journeys of Samoans and the persistence of Samoan identity throughout the world.
• Dr Mark Vickers, a Research Fel ow at the Liggins Institute, was awarded the Hamilton Memorial Prize by the Royal Society of New
Zealand for his work on fetal programming. The prize recognises outstanding work by a young New Zealander in New Zealand or
the Pacific Islands.
• The University of Auckland Europe Institute was launched during a visit by a high-level delegation from the European Parliament in
March 2006. Led by Professor Cris Shore (Anthropology) and Associate Professor Maureen Benson-Rea (International Business),
the Institute wil build on the substantial volume of research on Europe being conducted at the University and wil link with other
New Zealand universities in the New Zealand European Union Centres Network. The Institute wil coordinate many aspects of the
University’s interactions with Europe, with a particular focus on new funding for research and scholarships.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual*
% of PBRF eligible staff who achieve an A Quality
10%
10%
12%
n/a
Category in the research quality evaluation report
% of PBRF eligible staff who achieve a B Quality
36%
36%
40%
n/a
Category in the research quality evaluation report
% of PBRF eligible staff who achieve an R Quality
20%
20%
16%
n/a
Category in the research quality evaluation report
* The PBRF evaluation is held every three years. The first evaluation was in 2003 with the results available in 2004. The current evaluation was in 2006 with the results
available in late March 2007. Consequently the 2004 Actuals were not remeasured in 2005.
OBJECTIVE 4
achieve 800 masters and 500 doctoral completions per annum through the development of an international quality graduate
programme.
• Claire French, a PhD student in the Faculty of Medical and Health Sciences, was named MacDiarmid Young Scientist of the Year
for 2006 in the annual MacDiarmid Awards competition run by the Foundation for Research, Science and Technology. Claire
developed a new technique, with wide application in forensic science, for determining which part of the body cel samples originate
from. Hayley Reynolds, a student in the Maurice Wilkins Centre for Molecular Biodiscovery, and Andrew Graham, who is studying
mechanical engineering, were named as runners up in the awards.
• Twenty-seven students from the University of Auckland were successful in obtaining Top Achiever Doctoral Awards in 2006, from a
total of 64 granted nationwide. The Top Achiever Doctoral Awards are the premier national y-funded scholarships in New Zealand
and provide support for students undertaking PhD study. They are granted on a competitive basis.
• Postgraduate research students make up 6.3% of the student population (on an EFTS basis).
• International recruitment has been successful in attracting new cohorts of masters and PhD students from China, Pakistan, and Saudi
Arabia, with further cohorts expected over the next five years.
• The domestic fees policy for new international students enrol ing at the University, announced by the Minister of Education in 2005,
has begun to have an impact with the number of doctoral enrolments increasing from 275 in 2005 to 303 in 2006, many of them
international students.
• The Centre for Academic Development continues to run courses for academic staff to improve the quality of supervision offered
to research postgraduate students. A suite of supervision tools has been developed to assist staff and students with the supervision
process, and to improve the probability of student success.
• In 2006 there was an increase in the number of doctoral scholarships available to students, up by 50 to 130 for domestic students,
and an increase of 12 for international students. The value of the doctoral scholarships increased to $25,000 p.a.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
% of academic staff with doctorates
n/a
70%
72%
73%
Number of postdoctoral fel owships awarded
6
6
6
6
Number of doctoral theses completed
171
228
250
190
Number of research masters theses completed
568
671
650
650
OBJECTIVE 5
Provide enhanced support for research activities by doubling external research income to $270m per annum.
• Revenue earned by the University, from external y-sponsored research projects running in 2006, reached $79 mil ion. Research
revenue from UniServices was $73 mil ion, giving a total research revenue of $152 mil ion, up from $144 mil ion in 2005.
• The value of new research contracts and grants won in 2006 was $63 mil ion from the Research Office and $94 mil ion from
UniServices, a total of $157 mil ion and down by $8 mil ion from the $165 mil ion contracted in 2005. These contracts wil go on
for typical y 2-5 years and lead to revenues through that time. Research contracting in 2005 was artificial y boostedby mid-term
re-contracting for the four Centres of Research Excel ence at the University in that year, fol owing successful review by the TEC.
• Researchers at the University were successful in gaining 18 of 56 grants awarded by the Health Research Council in 2006. Total
funding awarded to the University of Auckland was $25.7 mil ion from a total of $61.4 mil ion awarded national y – the largest
amount awarded to any university in New Zealand.
• 15 Marsden research grants were awarded to the University total ing over $6.2mil ion in research funding for the next three years.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
External research revenue earned ($m)
131
145
151
152
OBJECTIVE 6
develop large-scale research institutes of excellence.
• The Liggins Institute has been established as the first large-scale research institute. This means it is now administratively autonomous
and the Director reports to the Vice-Chancel or.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Number of Centres of Research Excel ence (CoRES)
4
4
4
4
hosted
0
TEACHING AND LEARNING
OBJECTIVE 7
achieve a high quality student body with an annual growth rate of equivalent full-time students of 1%. This student body to be
composed as follows: 78% in undergraduate, 12% in taught postgraduate and 10% in research postgraduate programmes.
• The University did not achieve a growth rate in equivalent ful -time students of 1% in 2006. It experienced a decline in international
and domestic undergraduate students and in some areas of postgraduate study.
• The composition of the student body in 2006 was as fol ows: 83% in undergraduate programmes, 11% in taught postgraduate
programmes, and 6% in research postgraduate programmes.
• The University has developed policies and processes to assist in moving toward a higher proportion of postgraduate students,
including a review of postgraduate recruitment and marketing, better processes for handling postgraduate enquiries, and increased
postgraduate scholarship provision.
• Through the restructuring of postgraduate degrees put in place in 2006, taught and research degrees are more clearly identified to
students.
• Faculties have increased initiatives to encourage able undergraduate students to continue into postgraduate study and to undertake
research training. For instance, the Faculty of Arts has used the School of Graduate Studies Market Research and Strategy Report to
improve Faculty advice and information on postgraduate programmes.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
% of total EFTS enrol ed in undergraduate programmes
84%
84%
84%
83%
% of total EFTS enrol ed in taught postgraduate
10%
10%
10%
11%
programmes
% of total EFTS enrol ed in research postgraduate
6%
6%
7%
6%
programmes
% of postgraduate EFTS contributed by international
13%
12%
15%
12%
students
OBJECTIVE 8
Create a curriculum meeting the highest standards of excellence across the university.
• The University implemented a new degree structure based on an equivalent ful time year of study of 120 points. This change
aligned the University with the National Register of Quality Assured Qualifications.
• The University introduced a General Education programme for al new undergraduate students. This programme is designed to
broaden students’ academic interests and to deepen their skil base.
• The University continues to diversify its offerings within Faculty programmes: Asian Studies, Development Studies and Languages
and Literatures were introduced as new subjects in the Bachelor of Arts (Honours) degree; Bioengineering was introduced as a
new specialisation in the Master of Engineering and Master of Engineering Studies; Physics and Geophysics, and Bioinformatics were
introduced as postgraduate programmes in the Faculty of Science; and new postgraduate qualifications were introduced in Bioscience
Enterprise. The Committee on University Academic Programmes approved the introduction in 2007 of a Postgraduate Diploma
in Social Science Research Methods, a suite of postgraduate qualifications in Clinical Education, and undergraduate Certificates in
Science and Global Issues.
• The University continues to maintain its international standing through the accreditation of its programmes. The Bachelor of
Architecture was accredited for five years by the Association of Architecture Schools of Australasia. The Bachelor of Social Work
was accredited by the Social Workers Registration Board. Accounting programmes were re-accredited by the New Zealand Institute
of Chartered Accountants for a further five years.
• The University constantly assesses and evaluates its programmes to keep a relevant portfolio of qualifications. NZQA pre-degree
qualifications offered through the former Auckland Col ege of Education, now amalgamated with the University, have been phased
out.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
% new undergraduate students re-enrol ed in the
85.5%
85.9%
90.5%
85.0%
fol owing year
Number of 1st Class bachelors honours/masters
523
576
560
629
completions
Number of departmental and programme reviews
4
2
4
4
OBJECTIVE 9
Create and maintain an outstanding teaching and learning environment.
• The Postgraduate Certificate in Academic Practice commenced in 2006 with nine staff completing the first course required for
the Certificate. The programme reflects current trends in academic development worldwide by providing a qualification for higher
education teaching.
• The University has enhanced the Library col ection substantial y through purchase of electronic resources, particularly large archival
research col ections and increased investment in other resources
• A plan for the refurbishment of lecture theatres was approved and work commenced.
• A new Library and Student Centre complex was completed for the Faculty of Engineering.
• The University approved a policy on information literacy and published a Student Information Technology Guide.
• The Centre for Professional Development, the Student Learning Centre and the Centre for Flexible and Distance Learning were
amalgamated into a Centre for Academic Development.
• Al Faculties reported to the Teaching and Learning Quality Committee on ways in which they link teaching and research in degree
teaching.
• The University held a Vice-Chancel or’s Symposium on student assessment.
• An online tutorial which assists students to make effective use of Library resources was made available.
• Usage of CECIL, the University’s online learning management system, increased.
• The University promoted excel ence in teaching through its Teaching Excel ence Awards and their presentation at graduation
ceremonies. Faculties have been encouraged to make Faculty Teaching Excel ence Awards.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Student to academic staff ratio
17.9
17.5
17.0
17.7
Number of accreditations received for degree
25
27
28
28
programmes
% of courses using the University’s online learning
60%
67%
75%
69%
management system CECIL
Number of student computer work stations
4,200
4,339
4,400
4,790
Expenditure on Library col ections ($m)
15.4
16.4
15.4
16.1
TE TIRITI O WAITANGI/
THE TREATY OF WAITANGI
OBJECTIVE 10
Fulfill the responsibilities and obligations of the university
under Te Tiriti o waitangi.
• An increased 2006 Special Supplementary Grant (SSG)
funding for Ma-ori students again underpinned the Tua-kana
(tutor mentoring) programmes.
• In 2006 the University continued to offer undergraduate
and postgraduate scholarships to Ma-ori students, which
included the Ma-ori Chancel or’s Award for Top Scholars
(CATS), Ma-ori Access Awards and the University of
Auckland Ma-ori Graduate Scholarships.
• Mr Jim Peters (left) was appointed to the position of Pro
Vice-Chancel or (Ma-ori) and commenced in the position
in October.
• Elections were held in November for the restructured
Ru-nanga.
• Applicants for the position of Director of the James
Henare Ma-ori Research Centre (JHMRC) were considered
in December. The repositioning and development of the
Centre wil proceed in 2007, the Vice-Chancel or
Mr Jim Peters, Pro Vice-Chancellor (Ma-ori)
having consulted earlier in 2006 with iwi leaders in Tai
Tokerau.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
% of total domestic EFTS who identify as Ma¯ori
6.4%
7.6%
8.0%
7.0%
Number of graduates who identify as Ma¯ori
356
623
675
553
Number of doctoral students who identify as Ma¯ori
8
10
12
9
% of al academic staff (FTE) who identify as Ma¯ori
4.8%
4.8%
4.8%
5.1%
% of al general staff (FTE) who identify as Ma¯ori
5.5%
5.3%
5.5%
5.1%
Number of MoUs signed with mana whenua, iwi Ma¯ori,
3
3
3
3
and Ma¯ori organisations
COMMUNITY ENGAGEMENT
OBJECTIVE 11
develop effective partnerships with the university’s local, national and international communities.
• The University conducted a comprehensive and successful North Asia tour, featuring the NZ Trio, in Beijing, Shanghai, Hong Kong and
Seoul, with a concert at Korea University.
• The University continued to develop key relationships with the New Zealand embassies overseas and KEA (Kiwi Expatriates Abroad).
• The University supported the Ma-ori Business Leaders’ Awards Dinner, which was held in the Alumni Marquee in September,
organised by the Faculty of Business and Economics.
• The University sponsored the 2006 Asian Students’ Association Seminar “Going Bananas”.
• The University participated for the first time in the Auckland Pasifika Festival.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Number of Adult and Community Education funded EFTS
172
162
204
120
Number of community advisory group meetings
4
4
4
4
Number of Partnerships for Excel ence awarded or
3
5
5
5
continued
OBJECTIVE 12
Engage alumni and friends in mutually
supportive and productive relationships.
• An annual programme of public lectures
is supported by the Faculty of Arts and
provides a platform for alumni events
and profile-building activities, as does the
promotion of book launches and visits
from distinguished academics.
• Alumni appointed to the Business School’s
Advisory Board included: John Hagen
(Chair) and Vincent Cheng; Mark Weldon
and David Skil ing (al Distinguished
Alumni); Bridget Liddel ; Sarah Kennedy;
Tony Falkenstein; and John Buchanan.
The Business School continued to
communicate with its alumni twice a year
through Network and the University of
Auckland Business Review which are sent
to alumni.
• The “Old A's” alumni of the Faculty of
Education (graduates of the Auckland
Training Col ege) continue to meet and
go from strength to strength. They played
a major role in the 125th celebrations of
teacher education held in September. The
celebrations also included the publication
of
Making a difference: A History of the
Auckland Col ege of Education 1881-2004 by Louise Shaw.
• Nursing and Pharmacy articles have been
included in the FMHS Alumni magazine.
Representatives from the Schools of
Nursing and Pharmacy have been invited
to participate in the Alumni Chapter and
al alumni are now on one FMHS mail list
for invitations and mailouts. The School
of Pharmacy has now formed an Alumni
Association in conjunction with the
Faculty.
• The Faculty of Science has participated in
Development Office initiatives throughout
2006, with plans now extending into 2007
Professor Peter Gluckman (centre) with the 2006 recipients of the Peter Gluckman Medal, Professors Bill
(Annual Fundraising Appeal, representation
Denny (left) and Bruce Baguley (right), in recognition of their work in cancer research.
on the VC’s visit to China, the Chancellor’s
dinner, the Distinguished Alumni Awards
dinner).
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Number of Distinguished Alumni awards
5
6
6
6
Number of editions of Ingenio and electronic alumni/friends
13
13
13
13
newsletters
Number of university-wide alumni events held in New
5
6
9
10
Zealand
Number of university-wide alumni events held overseas
6
12
13
14
EXCELLENT PEOPLE
OBJECTIVE 13
recruit and retain a high-quality staff and student body, striving to create equal opportunities for all those of ability to succeed in a
university of high international standing.
• Forty Chancel or’s Awards were made to top Ma-ori and Pacific scholars from New Zealand secondary schools. These awards aim to
improve access, increase participation, and address under-representation of Ma-ori and Pacific peoples at the University.
• The University undertook numerous recruitment and orientation programmes, focusing on Ma-ori, Pasifika, students from low socio-
economic backgrounds and attracting women into Science and Engineering, at careers expos, schools and on campus.
• The TEC introduced a new four-tier funding formula, with more financial weighting for graduate and postgraduate students, in 2006
and the University received increased SSG funding for its Ma-ori and Pacific students as a consequence. This funding was largely used
to support 47 university-wide Tua-kana Tutor-Mentoring programmes.
• The University made significant progress in providing access to printed material for blind and visual y impaired students and for
international students with disabilities.
• Equal Education Opportunity Activities have included: Enginuity Day - the main outreach for Women in Engineering; Girls into
Science 2006; WISE Futures Evening - which encourages female students to consider the physical sciences at tertiary level; Whai
Te Pae Tawhiti Programmes - a summer school outreach programme for Ma-ori Students from out of Auckland with the potential
to succeed in tertiary education; Dream Fonotaga, which targets Pasifika students from low-mid decile schools to inspire them
to pursue tertiary study; and STEAM - an innovative on-campus programme which exposes Ma-ori and Pacific students to the
opportunities that exist with a tertiary education in Science, Technology, Engineering, Architecture and Medicine.
• A new staff appointment was made in the Centre for Academic Development with responsibility for coordinating professional
development opportunities for Ma-ori academics, tutors and mentors.
• The University’s Women in Leadership programme won the Mana-ki Tangata Innovation Award at the EEO Trust Work and Life
Awards.
• A recruitment brochure focused on general staff was developed in February and has been successful y used at Pasifika and the
Careers Expo held at the University which HR Staff attended for the first time.
• The University now has access to an international quality of life/cost of living tool that generates comparisons between New Zealand
and several core countries from which we recruit academic staff.
• A new relocation policy has been approved and wil be implemented in the New Year. This wil have particular benefit for recruiting
academics in the international arena.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Equal opportunities plans reviewed and reported each year
Achieved
Achieved
Achieved
Achieved
% of total EFTS who identify as Pasifika
6.3%
7.8%
7.9%
8.1%
Number of graduates who identify as Pasifika
360
531
580
533
% of al academic staff (FTE) who identify as Pasifika
2.4%
2.4%
2.5%
2.6%
% of al general staff (FTE) who identify as Pasifika
5.7%
5.1%
5.6%
5.1%
% of academic positions (FTE) fil ed by women
42%
42%
43%
43%
% of senior academic positions (FTE) fil ed by women
20%
22%
23%
22%
% of senior general staff positions (FTE) fil ed by women
42%
41%
38%
42%
OBJECTIVE 14
Enhance and promote a student environment that is welcoming, enjoyable and stimulating, encouraging students to reach their full
potential within a climate of academic excellence.
• Students expressed a high level of satisfaction with the quality of their programmes and teaching in the annual teaching and learning
survey. 84% of al students agreed that their programme was chal enging and intel ectual y stimulating.
• A record 9,791 degrees and diplomas were awarded in 2006. The achievements of doctoral graduands were showcased with
citations and slide shows at the graduation ceremonies and in doctoral profiles published in the convocation book. The total number
of qualifications conferred/awarded in 2006 was up 13% on 2005.
• Undergraduate and postgraduate students are strongly encouraged to engage ful y with the University in order to fulfil their
academic, personal, and career development through participation in a wide range of activities.
• The School of Graduate Studies and the Postgraduate Students’ Association have hosted a number of functions to welcome and
orient new postgraduate students to the University, and to encourage them with their postgraduate academic programmes.
• The postgraduate student facilities at Strata, in the new Student Commons, are proving invaluable in enhancing students’ social and
cultural experiences at the University.
• The University encourages strong, effective and creative student leadership through the Auckland University Students’ Association,
departmental and Faculty Staff-Student consultative committees and membership of Faculty and University committees.
• Each year student success in academic, recreational and cultural activities is celebrated through the award of prizes, scholarships, and
the University Blues which are the premier sporting and cultural accolade for students. Encouragement and support is provided to
student-led initiatives such as Spark and Chiasma.
• Student teams successful y participated in national and international competitions in 2006.
• The University’s students were successful in gaining prestigious scholarships to study overseas. Matthew McCormick, a graduate with
a conjoint BA/BE in Economics and Biomedical Engineering, received a Woolf Fisher scholarship to study for a DPhil at Oxford.
• Two hundred students volunteered to be UniGuides in 2006. The programme is a conduit into University employment: students
must first be selected for progress through the UniGuide programme before they can work in the Cal Centre, the Information
Centre or as a Student Ambassador.
• Plans have been developed for an additional Student Information Centre within the main Quad area.
• Academic Administration set up a central Transition Centre to deal with issues relating to the transition to 2006 academic
programme changes and provide advice on an ongoing basis.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Number of students who take part in the UniGuide scheme
795
1,277
1,250
1,702
% of students included in university-wide survey expressing
87%
n/a
85%
93%
satisfaction with University experience*
% of new students (EFTS) who are international students
20%
18%
18%
16%
*
Includes students of al levels of degree programmes from al faculties.
OBJECTIVE 15
Create a culture that encourages academic and general staff to reach their full potential.
• Professor Peter Gluckman received a Distinguished Citizen Award from Auckland City for his promotion of New Zealand medical
research on the international stage, and commitment to developing Auckland as a centre of intel ectual excel ence.
• A review of leadership development activities offered in 2006 has been completed. The programme for 2007 is being developed
based on these recommendations.
• The University holds annual award ceremonies that recognise the achievements of both academic and general staff. The General
Staff Excel ence awards recognise the value col eagues place on staff contributions to the University. This year’s winners were
Graeme Roberts (Student Administration), Alhad Mahagaonkar (Medical and Health Sciences) and Marilyn Humphrey (Arts).
• Excel ence in teaching is recognised through the Sustained Excel ence in Teaching awards presented at Graduation. This year’s
winners were Professors Rick Bigwood (Law), Mick Pender (Engineering) and Associate Professor Raymond Mil er (Arts). The
Innovation in Teaching award was presented at Autumn Graduation to Maria Avdjieva and Lisa Cal agher (Business and Economics)
for transforming the content of two core first-year courses to include the provision of learner-centred learning skil s to students. The
Award for Excel ence in Supervision was awarded for the first time to Professor Richard Le Heron (Geography and Environmental
Science). Professor Bigwood went on to receive a National Tertiary Teaching Excel ence Award for sustained excel ence.
• Staff achievement in their fields of research were recognised through awards and honours detailed under Objective 3.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Number of staff participating in Academic Heads
149
102
100
178
development and support programme
Number of staff participating in the Women in Leadership
148
142
175
222
programmes
Number of general staff attending University-wide induction
359
414
400
332
programme
Number of staff awarded U21 fel owships
4
5
4
0
Number of scholarships provided for staff to participate in
6
6
6
8
executive management education programmes
RESOURCING AND ORGANISING FOR QUALITY
OBJECTIVE 16
Safeguard the long-term viability and autonomy of The university of auckland through excellent financial management.
• The University conducted Semestral Reviews of Faculties and Service Divisions, where departmental actual and forecast
performance were measured against budget. Corrective actions were agreed upon and implemented.
• The University completed monthly departmental reviews of financial performance and monitoring against budget and forecasts.
Variances were investigated and appropriate actions were taken.
• The University conducted robust reviews of business cases for capital expenditure proposals prior to approval.
• Delegated authorities are built into the workflow of PeopleSoft financials to enable efficient monitoring of financial transactions.
• The Vice-Chancel or approved and distributed a financial management framework outlining the responsibility of each Director and
Dean towards the management of al financial resources.
• The University provided training for tax risk management to Faculty and Service Division finance managers to minimise tax
exposures.
• Management reviewed the Capital Plan and Financial Projections, which were updated and presented to Council.
• The University ensures that internal compliance measures are monitored to maintain standards of best practice.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Total revenue ($000)
577,7
651.6
654.8
673.1
Operating surplus as a % of revenue
3.3%
3.0%
3.0%
3.1%
Operating cash receipts as a % of operating cash payments
117%
120%
116%
117%
Net equity ($000)
855.9
1,015.1
1,034.9
1,039.7
Months cash cover
21.60%
12.10%
8.70%
17.54%
OBJECTIVE 17
Increase and diversify the university’s revenue.
• The University has successful y applied for funding of research projects from external providers.
• The University is engaged by external organisations to advance their research needs.
• The University has entered into joint venture activities with other universities, local y and international y, to advance research projects
that offered opportunities to diversify funding streams.
• The Market capitalisation of companies based upon the University’s licensed technology grew to $650 mil ion in 2006. UniServices
remains involved with and owns shares in most of these companies.
• The Phase I clinical trial result for the DMXAA cancer drug licensed to Antisoma was positive indicating efficacy in humans. This led
to a more than doubling in Antisoma’s share price. Development of this drug has potential for very significant flow-on benefits to the
University in licensing fees and the enhanced reputation for Biotechnology in New Zealand.
OBJECTIVE 18
Provide an infrastructure that supports teaching, learning, research and community engagement of the highest quality.
• The University provides advanced facilities that enable state-of-the-art research projects to be conducted. For example, a Confocal
laser live cel imaging facility has been commissioned and has improved the capability and capacity of biomedical imaging at FMHS.
• The University’s record of success in Government Strategic Development Funds such as the Innovation and Development Fund has
contributed to advances in the teaching and research environment. The high fidelity human patient simulator and associated audio-
visual equipment in the new Advanced Clinical Skil s Centre and the BeSTGRID project were assisted through IDF funding.
• A comprehensive review of al teaching spaces was carried out and recommendations made for better utilisation of those spaces. A
strong emphasis continues on minimising utility costs and planning for the refurbishment of the older building stock.
• Maintenance and refurbishment work continues throughout the University; upgrading work at the Grafton Campus included the
completion and opening of the sixth floor development, two additional laboratories at the Department of Ophthalmology, and the
Auckland Clinical School, the majority of which are situated on the 12th floor of the Auckland Hospital.
• The property and facilities functions of the Epsom Campus were successful y integrated into the University’s systems through 2006,
along with the relocation from the City Campus of the School of Education staff and relocation of Epsom staff into different areas to
suit the new Schools structure.
• Several smal er refurbishment projects were successful y undertaken to provide up to date teaching and laboratory facilities at the
Grafton Campus. Consultants were appointed to undertake a comprehensive site master plan to inform future planning decisions
arising out of the FMHS Academic Plan produced early in the year. A risk identification process to identify the impact arising from
capital and infrastructure projects was initiated early in the year. Similar initiatives have been taken with the Faculties of Science and
Engineering.
• A major review of rationalising spaces for the performing arts was undertaken and is due to be completed early in 2007; the
refurbishment of studio spaces in Elam was completed.
• A contract for significant maintenance work on Old Government House is underway.
• The appointment of an Environmental Coordinator was made in the latter half of 2006 and already significant initiatives are planned
for additional power saving measures and reduction of waste.
• The University undertook surveys of al buildings and infrastructure and a 10-year maintenance plan for al campuses wil be
produced in early 2007, using that information.
OBJECTIVE 19
Promote governance and management practices consistent with the mission and values of The university of auckland.
• The Council has commenced a programme of re-evaluating its sub-committees and their terms of reference.
• The Council has received and approved a report on updating voting procedures and moving to electronic voting processes.
• The Council updated and secured the gazetting of its Constitution this year.
• Faculty and service division annual plans aligned to the University’s Strategic Plan were introduced and used as a basis for evaluating
the performance of senior managers.
• A system for more effective and earlier monitoring of EFTS through the Decision Support System was developed.
• The Vice Chancel or’s University Development Fund was repositioned as the Vice-Chancel or’s Strategic Development Fund and
realigned to support achievement of Strategic Plan objectives.
• A Strategic Investment Fund for major developments arising from the annual planning process was established through reprioritising
1% of base expenditure budgets.
• Financial management expectations of senior managers were codified.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
Report at least twice annual y to Audit Committee on key
Achieved
Achieved
Achieved
Achieved
issues in risk management
Implement annual internal audit plan and carry out
Achieved
Achieved
Achieved
Achieved
recommendations
OBJECTIVE 20
Operate planning and review processes that drive achievement of the university’s strategic objectives.
• The University undertook a review and implementation of new processes for the relocation and reporting of al University
endowments, in light of the increasing importance of endowments to universities.
• The University undertook two administrative function reviews of the Research Office and Human Resources. Reports on the
administrative reviews of ITS and Financial Services were published and their recommendations are being implemented.
• 83% of the University Faculties and Service Divisions are participating in the Continuous Improvement Programme (CIP). The
programme has initiated efficiency improvements in University processes.
Performance Indicators
2004 actual
2005 actual
2006 Target
2006 actual
% of service divisions and faculties participating in
n/a
70%
80%
84%
University-wide continuous improvement process
Number of Administrative Function Reviews
n/a
2
2
2
STaTEMENT OF rESOurCES
BUILDINGS1
PerFormnce indictors
2004
2005
2006
G
ross Area of University Buildings (m2)
424,452
425,819
422,174
LAND
The University is responsible for a total land area of 187.3ha (187.7 in 2004). This includes 18.6ha on the City Campus, 32.4ha at the
Tamaki Campus, 1.5ha at Whangarei and 122.1ha at the Leigh Marine Research Laboratory and various bush reserves.
LIBRARY RESOURCES2
2004
2005
2006
COllECTIONS
Printed books and theses
1,341,294
1,579,812
1,618,142
Printed serials (volumes)
569,094
579,002
588,742
Total printed volumes
1,910,388
2,158,814
2,206,884
Electronic books
180,942
217,191
283,997
Print serials titles
18,490
6,044
5,890
Electronic serials titles
58,884
66,063
81,699
SErVICES
Total loans
1,070,526
1,185,287
1,178,766
LEARN web sessions
3,506,000
4,204,728
5,046, 290
Library teaching sessions
1,847
2,102
1,865
Attendance at Library teaching sessions
21,702
28,125
25,081
Number of libraries/information commons
15
17
16
General Library average hours open per week
92
90
90
Information Commons average hours open per week
113
113
113
Study spaces
3,504
3,618
3,733
Study/training spaces with computer workstations
864
944
1,064
Total number of study spaces
4,323
4,562
4,797
1 Statistics in Buildings and Land from 2004 and 2005 include the Epsom Campus.
2 Statistics from 2005 include the Epsom Campus.
0
fiNaNCial
STaTEmENTS
for the year ended 31 December 2006
CONTENTS
Statement of ReSponSibility
52
Statement of accounting policieS
53
Statement of financial peRfoRmance
56
Statement of movementS in equity
56
Statement of financial poSition
57
Statement of caSh flowS
58
noteS to the financial StatementS
59
coSt of SeRviceS SummaRy
73
RepoRt of the auditoR-geneRal
74
gloSSaRy
76
51
STaTEmENT Of rESpONSibiliTy by COuNCil aND maNagEmENT
fOr ThE yEar ENDED 31 DECEmbEr 2006
• the council and management of the university of auckland accept responsibility for the preparation of the financial
Statements and the judgments used in them.
• the council and management of the university of auckland accept responsibility for establishing and maintaining a system
of internal control which has been designed to provide reasonable assurance as to the integrity and reliability of financial
reporting.
• in the opinion of the council and management of the university of auckland, the financial Statements for the year ended
31 december 2006 fairly reflect the financial position and operations of the university of auckland.
• the council of the university of auckland has reviewed these financial Statements and by resolution approved these
financial Statements for issue at its meeting of 26 february 2007.
ChaNCEllOr
ViCE-ChaNCEllOr
DirECTOr Of aDmiNiSTraTiON
hugh fletcher
Stuart mccutcheon
Jonathan blakeman
52
STaTEmENT Of aCCOuNTiNg pOliCiES
fOr ThE yEar ENDED 31 DECEmbEr 2006
RepoRting entity
the university of auckland was established by the university of auckland act 1961.
these financial statements report on the activities of the university of auckland and its subsidiaries.
the financial statements have been prepared in accordance with the requirements of Section 41 of the public finance act 1989 and Section
203 of the education act 1989, which include the requirement to comply with general y accepted accounting practice in new Zealand.
MeasuReMent Base
the financial statements have been prepared on an historical cost basis, with the exception of certain items for which specific accounting
policies are identified.
accounting policies
the fol owing accounting policies, which material y affect the measurement of financial performance and financial position, have been applied:
baSiS of conSolidation
the financial statements of subsidiary companies are consolidated in the financial statements of the university using the purchase method.
inter-entity transactions and inter-entity balances have been eliminated on consolidation.
the interest of minority shareholders is stated at the minority's proportion of the fair values of the assets and liabilities recognised.
acquiSition duRing the yeaR
where an entity becomes a part of the group during the year, the results of the entity are included in the consolidated results from the
effective date that the entity became a part of the group.
Revenue
government grants are recognised as revenue upon entitlement. unrestricted donations are recognised as revenue upon entitlement. assets
donated are recognised at fair value. where the university receives a donation with obligations, a liability is recognised. once the obligation is
discharged, the donation is recognised as revenue.
Sponsored research is recognised as revenue upon entitlement. Research contract revenue is reduced by the obligation to complete research
where bil ing entitlement is in advance of performing the research agreed in the contract.
donations received specifical y as capital contributions toward the acquisition of assets or endowments which are not available as a contribution
towards operating costs are accounted for as unusual items.
financial inStRumentS
the university is party to financial instrument arrangements as part of its everyday operations. these financial instruments include bank
accounts, short-term deposits, accounts receivable, accounts payable, long-term investments, and external y managed funds, al of which are
recognised in the Statement of financial position. Revenue and expenses in relation to these instruments are recognised in the Statement of
financial performance.
the university enters into foreign currency forward exchange contracts to hedge trading transactions, including anticipated transactions,
denominated in foreign currencies. gains and losses on contracts which hedge specific short-term foreign currency denominated transactions
are recognised as a component of the related transaction in the period in which the transaction is completed.
inveStmentS
Restricted fund investments are valued at their market value.
investments in listed equity securities are valued on the basis that the investments are available-for-sale; and the value is based on quoted
market prices.
gains and losses arising from changes in fair value are recognised directly in equity, until the security is disposed of or is determined to be
impaired, at which time the cumulative gain or loss previously recognised in equity is included in the profit or loss for the period.
impaired losses recognised in profit or loss for equity investments classified as available-for-sale are subsequently reversed through profit or
loss to the extent that they reverse losses recognised in profit or loss.
53
STaTEmENT Of aCCOuNTiNg pOliCiES (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
ReceivableS
accounts receivable are stated at their estimated realisable value after providing for amounts not considered recoverable.
inventoRieS
inventories are valued at the lower of cost and net realisable value. the weighted average method is used to determine cost.
pRopeRty, plant and equipment
Land and Buildings and Works of Art are re-valued to fair value every three years, as determined by an independent valuer. fair value for land
has been determined on its highest and best use taking into consideration restrictions over the use of the land and the likelihood of re-zoning.
for buildings, it reflects the depreciated replacement cost, and for works of art, the assessed market value.
Revaluations are transferred to the asset revaluation reserve for that class of asset. if any revaluation reserve class has a deficit, that deficit
is recognised in the Statement of financial performance in the period it arises. in subsequent periods any revaluation surplus that reverses
previous revaluation deficits is recognised as revenue in the Statement of financial performance.
al items of property, plant and equipment are initial y recorded at cost.
land in crown title is included in property, plant and equipment. the university has unobstructed control of this land and derives substantial
tangible benefits from its use. the university has sole and unrestricted use of buildings located on crown land and has assumed ownership of
these buildings. although legal title has not been transferred, the university has assumed al the normal risks and rewards of ownership.
Library Books and Periodicals held as at 31 december 1991 were valued internal y, based on the estimated volume of the col ection and weighted
average cost as at that date. al subsequent acquisitions are recorded at cost less accumulated depreciation. al permanent withdrawals from
the col ection are recorded at average cost.
Teaching and Research Equipment, Computer Equipment, Plant and Equipment and Other Fixed Assets are valued at cost less accumulated
depreciation.
Leasehold Improvements are valued at cost less accumulated depreciation.
Work in Progress is valued on the basis of expenditure incurred and certified gross progress claim certificates up to balance date. work in
progress is not depreciated.
depReciation
al items of property, plant and equipment other than freehold land are depreciated using the straight-line method (except for the library
col ection, which uses the diminishing value method) at rates that wil write off the cost or value of assets less their residual values, over their
estimated remaining useful lives. the depreciation rates used for each class of asset are:
buildings
1 - 10%
library collection
8% dv
teaching and research equipment
10 - 20%
computer equipment
33 - 50%
plant and equipment
5 - 20%
leasehold improvements
9 - 21%
other property, plant and equipment 10 - 20%
depreciation on al assets except buildings is charged to the significant activity that specifical y uses the asset. depreciation on buildings is
recognised in property Services as occupancy cost and charged to activity centres on the basis of square metres occupied.
employee entitlementS
provision is made in respect of the university’s liability for general and academic staff annual leave, long service leave and retirement gratuities.
annual leave is calculated on an actual entitlement basis at current rates of pay. long service leave and retirement gratuities have been
calculated on an actuarial basis which estimates the present value of amounts payable in respect of existing employees based on assumed rates
of death, disablement, resignation, retirement and salary progression.
pRoviSionS
all provisions are recorded at the best estimate of the expenditure required to settle the obligation at balance date. where the effect is material, the
expected expenditures are discounted to their present value using pre-tax discount rates.
ReStRuctuRing
Restructuring is a programme planned and controlled by management that materially changes the scope of a business undertaken by the university
or the manner in which that business is conducted by the university. the university recognises a provision for restructuring when the council have
54
STaTEmENT Of aCCOuNTiNg pOliCiES (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
approved a detailed formal plan, and the restructuring has commenced or a public announcement regarding the restructuring has been made. costs
and expenditures related to ongoing operations are not included in the provision for restructuring.
goodS and SeRviceS taX (gSt)
gSt is excluded from the financial statements except for accounts Receivable and accounts payable which are stated inclusive of gSt. the
balance of gSt payable to the inland Revenue department is included in accounts payable.
taXation
tertiary institutions are exempt from the payment of income tax as they are treated by the inland Revenue department as charitable
organisations. accordingly no charge for income tax is provided.
tRuSt and Special fundS
the university has established trust and Special funds for specific purposes. the conditions for use of those funds are imposed by council, deed,
gift or by the terms of endowments and bequests. the funds are transferred to general equity when no longer required for that purpose.
foReign cuRRency
foreign currency transactions throughout the year are converted into new Zealand dol ars at the exchange rate on the date of the
transaction.
Short-term transactions covered by foreign currency forward exchange contracts are measured and reported at the forward rates specified in
those contracts. foreign currency balances, as at 31 december, are valued at the exchange rates prevailing on that date.
foreign exchange gains and losses are recognised in the Statement of financial performance.
leaSeS
Operating lease rentals are recognised in equal instalments over the period of the lease.
Finance leases, which effectively transfer to the university substantial y al of the risks and benefits of ownership of the leased item, are
capitalised at the present value of the minimum lease payments. the leased assets and corresponding liabilities are recognised and the leased
assets are depreciated over the period the university is expected to benefit from their use.
Statement of caSh flowS
the fol owing are the definitions of the terms used in the statement of cash flows:
operating activities include al transactions and other events that are not investing or financing activities.
investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and of investments.
investments can include securities not fal ing within the definition of cash.
financing activities are those that result in changes in the size and composition of the capital structure. this includes both equity and debt not
fal ing within the definition of cash.
cash is defined as coins, notes, demand deposits, and other highly liquid investments which may be converted into coins and notes within no
more than two working days.
budget figuReS
the budget figures are those approved by council before the beginning of the financial year.
the budget figures have been prepared in accordance with general y accepted accounting practice in new Zealand and are consistent with
the accounting policies adopted by council for the preparation of the financial statements.
changes in accounting policies
inveStmentS
the investment policy has changed with regard to valuation of investments owned by auckland uniServices limited. in the past investments
were minimal y valued to ensure that exposure risk was minimised. however, several of the investments have reached a level of security that
requires them to be valued at market value of the shareholding. the impact of this revaluation is an increase in the value of investments
of $221,524. the market value of these investments at 31 december was $173,429 which has not been reflected in the comparative
information.
al other accounting policies have been applied on a cosistent basis with the previous year.
55
STaTEmENT Of fiNaNCial pErfOrmaNCE
fOr ThE yEar ENDED 31 DECEmbEr 2006
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
note
$000
$000
$000
$000
$000
OpEraTiNg rEVENuE
government grants
2
257,757 255,384 240,897
257,757 240,897
tuition fees
161,849 170,189 169,353
161,849 169,353
Research contracts
152,354 145,365 144,100
79,293
75,196
Service income
79,408
73,510
74,909
87,337
81,176
donations
5,465
5,039
4,242
5,465
4,242
interest
5,962
7,748
8,986
5,780
7,699
other income
10,266
4,837
9,070
10,105
8,876
total operating revenue
673,061 662,072 651,557
607,586 587,439
OpEraTiNg EXpENSES
people costs
1
386,708 378,011 362,809
344,253 330,411
operating costs
1
198,304 196,686 202,798
176,464 172,434
depreciation
1
67,334
68,688
66,234
66,300
65,239
total operating expenses
652,346 643,385 631,841
587,017 568,084
OpEraTiNg SurpluS fOr ThE yEar bEfOrE uNuSual iTEmS
20,715
18,687
19,716
20,569
19,355
uNuSual iTEmS
3
donations for capital projects
321
214
321
214
Restructuring provision
(4,517)
(4,517)
NET SurpluS TraNSfErrED TO uNiVErSiTy EQuiTy
16,519
18,687 19,930
16,373
19,569
STaTEmENT Of mOVEmENTS iN EQuiTy
fOr ThE yEar ENDED 31 DECEmbEr 2006
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
note
$000
$000
$000
$000
$000
equity at start of the year
1,015,084 925,176 855,926
1,010,718 852,595
transferred from Statement of financial performance
16,519
18,687
19,930
16,373
19,569
increase in revaluation reserve
18
4,590
139,228
4,590 138,554
increase in investment revaluation reserve
18
3,538
total recognised revenue and expenditure for the year
24,647
18,687
159,158
20,963
158,123
minority interest in subsidiary
421
EQuiTy aT END Of ThE yEar
1,040,152 943,863 1,015,084
1,031,681 1,010,718
the Statement of accounting policies on pages 53 to 55 and the notes to the financial Statements on pages 59 to 72 form part of and
should be read in conjunction with these statements.
56
STaTEmENT Of fiNaNCial pOSiTiON
aS aT 31 DECEmbEr 2006
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
note
$000
$000
$000
$000
$000
CurrENT aSSETS
cash and bank
6
11,695
1,002
3,407
7,972
1,824
Short term investments - unrestricted
6
6,005
178
61,579
6,000
43,200
Short term investments - restricted
6
193
727
109
193
109
Receivables and prepayments
7
40,444
32,950
40,538
29,537
34,558
inventories
8
8,978
7,297
6,024
3,110
4,076
total current assets
67,315
42,154 111,657
46,812
83,767
CurrENT liabiliTiES
bank overdraft
11,500
finance lease liabilities
10
726
726
726
726
726
payables
11
160,503 141,965 154,268
137,599 125,204
employee entitlements
12
21,587
11,354
16,004
21,222
15,734
provisions
13
9,359
3,608
6,164
9,359
6,164
total current liabilities
192,175 169,153 177,162
168,906 147,828
WOrkiNg CapiTal
(124,860) (126,999) (65,505)
(122,094) (64,061)
NON CurrENT aSSETS
long term investments - unrestricted
6
150
150
150
1,150
1,150
long term investments - restricted
6
21,930
15,474
14,817
15,930
14,512
loans
6
1,811
1,022
1,811
1,580
1,619
property, plant and equipment
9
1,167,900 1,080,346 1,089,173
1,161,894 1,082,860
total non current assets
1,191,791 1,096,992 1,105,951
1,180,554 1,100,141
NON CurrENT liabiliTiES
employee entitlements
12
24,963
23,225
22,820
24,963
22,820
finance lease liabilities
10
1,816
2,905
2,542
1,816
2,542
total non current liabilities
26,779
26,130
25,362
26,779
25,362
NET aSSETS
1,040,152 943,863 1,015,084
1,031,681 1,010,718
rEprESENTED by:
general equity
17
812,828 817,057 796,564
808,990 792,872
Revaluation reserves
18
206,694 110,689 202,104
206,020 201,430
investment revaluation reserve
18
3,538
minority interest
421
trust and special funds
19
16,671
16,117
16,416
16,671
16,416
TOTal EQuiTy
1,040,152 943,863 1,015,084
1,031,681 1,010,718
the Statement of accounting policies on pages 53 to 55 and the notes to the financial Statements on pages 59 to 72 form part of and
should be read in conjunction with these statements.
57
STaTEmENT Of CaSh flOWS
fOr ThE yEar ENDED 31 DECEmbEr 2006
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
note
$000
$000
$000
$000
$000
CaSh flOWS frOm OpEraTiNg aCTiViTiES
Cash was provided from:
government grants
258,041 260,069 237,613
258,041 237,613
tuition fees
168,749 175,641 171,453
168,749 171,453
dividends received
32
150
25
32
25
interest received
6,202
8,943
9,712
6,020
8,425
other operating receipts
250,436 217,374 223,650
182,594 159,204
683,460 662,177 642,453
615,436 576,720
Cash was applied to:
goods and services tax
2,332
642
1,440
2,146
1,414
payments to employees
333,113 335,238 317,509
299,724 284,888
interest paid
85
15
58
85
58
other operating payments
249,325 233,783 214,942
220,819 187,410
584,855 569,678 533,949
522,774 473,770
NET CaSh flOWS frOm OpEraTiNg aCTiViTiES
5
98,605 92,499 108,504
92,662 102,950
CaSh flOWS frOm iNVESTiNg aCTiViTiES
Cash was provided from:
investments
849
1,300
1,300
advance from subsidiary
19,700
849
1,300
19,700
1,300
Cash was applied to:
property, plant and equipment and work in progress
143,729 148,061 109,761
141,252 105,661
investments
1,378
765
1,378
804
145,107 148,061 110,526
142,630 106,465
NET CaSh flOWS frOm iNVESTiNg aCTiViTiES
(145,107) (147,212) (109,226)
(122,930) (105,165)
CaSh flOWS frOm fiNaNCiNg aCTiViTiES
Cash was applied to:
Repayment of finance lease liabilities
726
726
836
726
836
726
726
836
726
836
NET CaSh flOWS frOm fiNaNCiNg aCTiViTiES
(726)
(726)
(836)
(726)
(836)
NET iNCrEaSE / (DECrEaSE) iN CaSh hElD
(47,228) (55,439) (1,558)
(30,994) (3,051)
opening cash balance
65,095
45,844
66,644
45,133
48,175
effects of exchange rate changes on cash
26
9
26
9
ClOSiNg CaSh balaNCE
17,893
(9,595) 65,095
14,165
45,133
this is shown in the Statement of financial position as fol ows:
cash and bank
11,695 (10,500)
3,407
7,972
1,824
Short term investments - unrestricted
6,005
178
61,579
6,000
43,200
Short term investments - restricted
193
727
109
193
109
17,893
(9,595) 65,095
14,165
45,133
the Statement of accounting policies on pages 53 to 55 and the notes to the financial Statements on pages 59 to 72 form part of and
should be read in conjunction with these statements.
58
NOTES TO ThE fiNaNCial STaTEmENTS
fOr ThE yEar ENDED 31 DECEmbEr 2006
1 OpEraTiNg EXpENSES
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
$000
$000
$000
$000
$000
pEOplE COSTS
academic salaries
177,567
173,246
175,279
171,637
162,460
general salaries
154,315
162,238
140,614
126,731
121,351
other salary related expenses
54,826
42,527
46,916
45,885
46,600
386,708
378,011
362,809
344,253
330,411
OpEraTiNg COSTS
fees paid to auditors - external audit
262
234
222
195
- other services
25
22
25
14
bad debts written off
302
42
646
244
604
change in provision for doubtful debts
556
36
31
36
council members and directors fees
19
16
19
16
interest expense
172
14
1,875
836
interest on finance lease
57
57
loss on disposal of fixed property, plant and equipment
2,716
511
1,074
2,629
1,074
net foreign currency (gain) / loss
302
(9)
(26)
(9)
prizes and scholarships
19,204
19,576
17,269
19,179
17,209
operating lease cost
- properties
9,578
9,944
9,005
9,578
9,005
- equipment
8,008
9,923
9,531
7,977
9,499
other operating expenses
157,160
156,676
164,917
134,711
133,898
198,304
196,686
202,798
176,464
172,434
DEprECiaTiON
buildings and leasehold improvements
30,952
29,609
29,174
30,952
29,140
library col ection
9,343
9,348
8,967
9,343
8,967
plant and equipment
26,313
29,005
27,356
25,279
26,395
leased equipment
726
726
737
726
737
67,334
68,688
66,234
66,300
65,239
TOTal OpEraTiNg EXpENSES
652,346
643,385
631,841
587,017
568,084
59
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
2 gOVErNmENT graNTS
consolidated / univeRsity
2006
2006
2005
actual
budget
actual
$000
$000
$000
Student component funding
217,248
216,172
224,352
clinical training agency
1,876
1,878
1,855
Student stipends
2,498
3,104
1,977
other government grants
2,460
2,432
1,529
pbRf income
33,675
31,798
11,184
TOTal gOVErNmENT graNTS
257,757
255,384
240,897
3 uNuSual iTEmS
consolidated / univeRsity
2006
2006
2005
actual
budget
actual
$000
$000
$000
donations for capital projects
321
214
Restructuring provision
(4,517)
(4,196)
214
the university has prepared a detailed plan of restructuring within particular faculties. a provision has been made in the
2006 financial statements to cover the expected costs of the restructuring.
4 COST Of SErViCES STaTEmENTS
the university reports its cost of services on the basis of significant activities. the university has analysed the wide variety of activities performed
throughout the organisation into the following significant activities.
- teaching and Research
- Research programmes
- academic Services
- institutional Services
the cost of Services Summary on page 73 reconciles costs and income from significant activities to total revenue and total expenses as disclosed in the
Statement of financial performance.
60
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
5 rECONCiliaTiON Of OpEraTiNg SurpluS aND NET CaSh flOWS frOm OpEraTiNg aCTiViTiES
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
$000
$000
$000
$000
$000
net surplus for the year
16,519
18,687
19,930
16,373
19,569
add / (less) non cash items
depreciation
67,334
68,688
66,234
66,300
65,239
donated assets
(2,142)
(1,727)
(2,004)
(2,142)
(2,004)
foreign exchange fluctuation
(26)
(9)
(26)
(9)
other non cash items
(1,763)
(1,763)
65,166
66,961
62,458
64,132
61,463
add /(less) movements in working capital
decrease / (increase) in receivables
485
(85)
(4,652)
5,808
(7,664)
decrease / (increase) in inventory
7,903
2,123
3,129
179
(44)
increase / (decrease) in payables and provisions
(1,817)
5,561
16,461
15,591
17,942
increase in employee entitlements
5,584
1,770
3,676
5,488
4,210
12,155
9,369
18,614
27,066
14,444
less items classed as investing activity
Repayment of short term borrowings
(gain) / loss on sale of property, plant and equipment
2,629
511
1,074
2,629
1,074
movements in working capital relating to investing
(7)
(4,438)
2,397
(19,681)
2,369
2,622
(3,927)
3,471
(17,052)
3,443
operating expenditure relating to movements in long term provisions
2,143
1,409
4,031
2,143
4,031
NET CaSh flOW frOm OpEraTiNg aCTiViTiES
98,605
92,499
108,504
92,662
102,950
6 fiNaNCial iNSTrumENTS
consolidated
weighted
mature
mature
2006
2005
average
within
in over
fair
fair
interest
one year
one year
value
value
Rate %
$000
$000
$000
$000
cash and bank
6.09
11,695
11,695
3,407
bank deposits and bills
7.63
6,005
6,005
61,579
Receivables
29,226
29,226
30,277
payables
(81,833)
(81,833)
(86,556)
Share portfolio
5,919
5,919
305
other investments
2,042
2,042
1,961
Restricted funds – externally managed equities portfolio
193
6,716
6,909
5,768
Restricted funds – externally managed bonds and cash portfolio
9,214
9,214
8,853
TOTal fiNaNCial iNSTrumENTS - CONSOliDaTED
(34,714)
23,891
(10,823)
25,594
61
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
6 fiNaNCial iNSTrumENTS (CONTiNuED)
univeRsity
weighted
mature
mature
2006
2005
average
within
in over
fair
fair
interest
one year
one year
value
value
Rate %
$000
$000
$000
$000
cash and bank
7.14
7,972
7,972
1,824
bank deposits and bills
7.63
6,000
6,000
43,200
loans from subsidiary company
(31,700)
(31,700)
(12,000)
Receivables
18,319
18,319
24,297
payables
(64,659)
(64,659)
(71,718)
Shares in subsidiaries
1,000
1,000
1,000
other investments
1,730
1,730
1,769
Restricted funds – externally managed equities portfolio
193
6,716
6,909
5,768
Restricted funds – externally managed bonds and cash portfolio
9,214
9,214
8,853
TOTal fiNaNCial iNSTrumENTS - uNiVErSiTy
(63,875)
18,660
(45,215)
2,993
consolidated
univeRsity
DiSClOSED iN ThE STaTEmENT Of fiNaNCial pOSiTiON aS:
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
cash and bank
11,695
3,407
7,972
1,824
Short term investments – unrestricted
6,005
61,579
6,000
43,200
Short term investments – restricted
193
109
193
109
long term investments – unrestricted
150
150
1,150
1,150
long term investments – restricted
21,930
14,817
15,930
14,512
loans
1,811
1,811
1,580
1,619
DiSClOSED iN ThE NOTES TO ThE aCCOuNTS aS:
Note
Receivables
7
29,226
30,277
18,319
24,297
payables
11
(81,833)
(86,566)
(64,659)
(71,718)
loan from subsidiary company
11
(31,700)
(12,000)
TOTal fiNaNCial iNSTrumENTS
(10,823)
25,594
(45,215)
2,993
Restricted investments are held for purposes specified by endowments and Scholarships funds. they are not available for general university use.
Restricted investments include investment of endowment funds of $5.661m (2005 $6.339m) and Scholarship funds of $8.989m (2005 $8.157m).
fair ValuES Of fiNaNCial aSSETS aND liabiliTiES
the following assumptions have been used to estimate the fair value of each class of financial instrument.
Bank deposits, Bank bills, Receivables and Payables
the carrying amounts of these balances are equivalent to their fair value because of their short maturity.
Bank bonds, Commercial paper, NZ Government securities, SOE stock and Local Authority stock
the fair value of these investments is based on current market interest rates for investments of similar terms or maturities.
Share portfolio
Shares are held at fair value which is based on current market values.
Independently Managed Trust Fund Investments
the fair value of these investments is based on current market interest rates and share prices as advised by independent investment managers.
Loan from Subsidiary Company
the fair value of the loan is based on current market interest rates for a loan of similar terms and maturity.
62
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
6 fiNaNCial iNSTrumENTS (CONTiNuED)
bOrrOWiNgS
the university has an unsecured fluctuating committed cash advance facility with a maximum limit of $60m, and an expiry date of 31 march 2007. as at
31 december 2006, the university had not drawn down against this facility.
iNTErEST raTE riSk
interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. the value of the above securities is
affected by changes in interest rates. the university manages its interest rate exposure through the utilisation of fixed interest rates.
CrEDiT riSk
credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.
the university places investments with institutions which have a high credit rating. the university also reduces its exposure to risk by limiting the amount
that can be invested in any one institution. the university believes that these policies reduce the risk of any loss which could arise from its investment
activities.
there is no concentration of credit risk in Receivables.
CurrENCy riSk
currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
the university has exposure to currency risk from off shore transactions. this is mitigated through the use of forward foreign exchange contracts.
foreign currency bank balances are held to meet future payments contracted in these currencies.
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
forward foreign exchange contracts
12,081
3,527
12,044
3,010
The fair value of outstanding forward foreign exchange contracts at 31 December 2006 gives rise to a loss of $0.737m.
SharES iN SubSiDiariES
Name
interest 2006
interest 2005
principal activities
balance date
auckland uniServices limited
100%
100%
commercial research
31 december
uni-accommodation limited
100%
100%
Student accommodation
31 december
via auckland uniServices the following subsidiaries also form part of the group
neuronZ limited
89%
68%
Research
31 december
uniSports limited
100%
100%
non-trading
31 december
lifestyle compass limited
100%
100%
non-trading
31 december
new Zealand Seed fund partnership limited
100%
–
non-trading
31 december
new Zealand Seed fund management limited
100%
–
non-trading
31 december
e learnings asia pacific limited
100%
100%
non-trading
31 december
cecil limited
100%
100%
non-trading
31 march
63
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
7 rECEiVablES aND prEpaymENTS
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
note
$000
$000
$000
$000
trade receivables
31,440
31,694
15,583
19,812
less provision for doubtful debts
(2,313)
(1,757)
(1,188)
(1,157)
net receivables
6
29,127
29,937
14,395
18,655
Related company receivables
6
3,825
5,302
accrued interest
6
99
340
99
340
prepayments
11,218
10,261
11,218
10,261
TOTal rECEiVablES aND prEpaymENTS
40,444
40,538
29,537
34,558
8 iNVENTOriES
consolidated
univeRsity
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
Raw materials
339
370
339
370
Research contracts in progress
8,058
4,926
2,190
2,978
other work in progress
4
2
4
2
finished goods
577
726
577
726
TOTal iNVENTOriES
8,978
6,024
3,110
4,076
64
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
9 prOpErTy, plaNT aND EQuipmENT
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
freehold land
– at cost / valuation
163,817
163,817
163,155
163,155
net book value
163,817
163,817
163,155
163,155
buildings
– at cost / valuation
711,314
630,807
710,864
630,359
– accumulated depreciation
(55,390)
(27,105)
(55,323)
(27,071)
net book value
655,924
603,702
655,541
603,288
leasehold improvements
– at cost / valuation
20,616
20,785
18,751
19,614
– accumulated depreciation
(12,614)
(12,111)
(11,810)
(11,454)
net book value
8,002
8,674
6,941
8,160
library collection
– at cost / valuation
189,303
176,466
189,303
176,466
– accumulated depreciation
(75,954)
(66,852)
(75,954)
(66,852)
net book value
113,349
109,614
113,349
109,614
works of art
– at cost / valuation
13,095
8,509
13,095
8,509
net book value
13,095
8,509
13,095
8,509
plant and equipment
– at cost
257,008
236,040
250,309
229,285
– accumulated depreciation
(162,953) (143,579)
(159,950) (141,175)
net book value
94,055
92,461
90,359
88,110
leased plant and equipment
– at cost
3,631
3,631
3,631
3,631
– accumulated depreciation
(1,089)
(363)
(1,089)
(363)
net book value
2,542
3,268
2,542
3,268
other property, plant and equipment
– at cost
8,173
9,687
8,173
9,687
net book value
8,173
9,687
8,173
9,687
capital work in progress
– at cost
108,943
89,441
108,739
89,069
net book value
108,943
89,441
108,739
89,069
total property, plant and equipment
– at cost / valuation
1,475,900 1,339,183
1,466,020 1,329,775
– accumulated depreciation
(308,000) (250,010)
(304,126) (246,915)
prOpErTy, plaNT aND EQuipmENT – NET bOOk ValuE
1,167,900 1,089,173
1,161,894 1,082,860
all land and buildings occupied by the university as at 1 January 2005 were revalued at that date. land and building revaluations were carried out by dtZ
new Zealand ltd, Registered valuers.
works of art have been revalued by peter webb galleries, specialist valuers and auctioneers as at 1 January 2006.
acquisitions since the date of revaluation are recorded at cost.
crown land with a value of $103,273,275 is included in property, plant and equipment.
65
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
10 fiNaNCE lEaSE liabiliTiES
consolidated/univeRsity
2006
2005
actual
actual
$000
$000
due within 1 year
726
726
due within 1 to 2 years
726
726
due within 2 to 5 years
1,090
1,816
due in over five years
2,542
3,268
DiSClOSED iN STaTEmENT Of fiNaNCial pOSiTiON aS:
current liabilities
726
726
non current liabilities
1,816
2,542
TOTal fiNaNCE lEaSE liabiliTiES
2,542
3,268
11 payablES
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
note
$000
$000
$000
$000
trade payables
6
81,833
86,556
64,178
71,179
Related company payables
6
481
539
loan from subsidiary
6
31,700
12,000
Revenue received in advance
12,586
12,876
12,586
12,876
Research contract obligations
66,084
54,836
28,654
28,610
TOTal payablES
160,503
154,268
137,599
125,204
12 EmplOyEE ENTiTlEmENTS
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
CurrENT liabiliTiES
accumulated annual leave
15,410
10,838
15,045
10,568
Retirement allowance
5,580
4,625
5,580
4,625
long service leave
597
541
597
541
TOTal EmplOyEE ENTiTlEmENTS – CurrENT
21,587
16,004
21,222
15,734
NON CurrENT liabiliTiES
Retirement allowance
23,659
20,924
23,659
20,924
long service leave
1,304
1,896
1,304
1,896
TOTal EmplOyEE ENTiTlEmENTS – NON CurrENT
24,963
22,820
24,963
22,820
66
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
13 prOViSiONS
SpECial fuND prOViSiONS
2006
consolidated / univeRsity
vice-chancellor’s
academic
total
Strategic
Support
2006
development fund
fund
actual
$000
$000
$000
balance 1 January 2006
6,080
84
6,164
increase / (decrease) to provision
1,644
247
1,891
amounts incurred against provision
(2,942)
(271)
(3,213)
balaNCE 31 DECEmbEr 2006
4,782
60
4,842
2005
consolidated / univeRsity
vice-chancellor’s
emerging
academic
total
Strategic
Research areas
Support
2005
development fund
Support fund
fund
actual
$000
$000
$000
$000
balance 1 January 2005
4,245
57
118
4,420
increase / (decrease) to provision
3,549
228
3,777
amounts incurred against provision
(1,714)
(57)
(262)
(2,033)
balaNCE 31 DECEmbEr 2005
6,080
84
6,164
ViCE-ChaNCEllOr’S STraTEgiC DEVElOpmENT fuND
the fund is to enable the vice-chancellor to meet agreed strategic development opportunities that arise during the course of the year and which require
immediate funding.
these costs are all available to be incurred in the next financial year.
EmErgiNg rESEarCh arEaS SuppOrT fuND
the fund was to provide seed funding for research activities in new areas, in existing and new research centres established according to the university of
auckland policy.
aCaDEmiC SuppOrT fuND
this fund is to provide support for distinguished academics engaged in research.
these costs are expected to be incurred in the next financial year.
rESTruCTuriNg prOViSiON
the university commenced a restructuring review in march 2006. the provision includes redundancy and outplacement costs.
consolidated
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
Restructuring provision
4,517
4,517
4,517
4,517
14 CONTiNgENT liabiliTiES
no significant contingent liabilities have been identified as at 31 december 2006 (2005: nil).
67
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
15 OpEraTiNg COmmiTmENTS
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
COmmiTmENTS iN rESpECT Of OpEraTiNg lEaSES
due within 1 year
14,859
16,189
13,498
14,835
due within 1 to 2 years
10,328
11,871
9,708
10,713
due within 2 to 5 years
17,701
16,165
16,491
14,877
due in over five years
4,099
5,194
3,810
5,162
TOTal OpEraTiNg lEaSE COmmiTmENTS
46,987
49,419
43,507
45,587
OpEraTiNg lEaSE COmmiTmENTS by TypE
properties
37,960
36,886
34,648
33,437
equipment
9,027
12,533
8,859
12,150
TOTal OpEraTiNg lEaSE COmmiTmENTS by TypE
46,987
49,419
43,507
45,587
16 CapiTal COmmiTmENTS
consolidated/univeRsity
y
2006
2005
actual
actual
$000
$000
property Services projects
38,102
48,654
other capital expenditure
1,436
960
TOTal CapiTal COmmiTmENTS
39,358
49,614
17 gENEral EQuiTy
included in equity at the end of the year is a total of $36.379m (2005: $36.379m) representing accumulated capital contributions made by the crown under
s15 public finance act 1989. this funding has been made for specific capital purposes – owen g glenn building $25.000m, centres of Research excellence
$8.841m and tertiary education Strategic change fund $2.538m. all contributions were received prior to 2005.
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
balance 1 January 2006
796,564
774,596
792,872
771,265
net surplus
16,519
19,930
16,373
19,569
less net surplus transferred to trust and special funds
(255)
(814)
(255)
(814)
add Revaluation reserves transferred to retained earnings on disposal of assets
2,852
2,852
balaNCE 31 DECEmbEr 2006
812,828
796,564
808,990
792,872
68
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
18 rEValuaTiON rESErVES
consolidated
univeRsity
2006
2005
2006
2005
actual
actual
actual
actual
$000
$000
$000
$000
laND aND builDiNgS
balance 1 January 2006
199,077
62,701
198,403
62,701
transferred to retained surplus on sale of revalued assets
(2,852)
(2,852)
net revaluation of land and buildings
139,228
138,554
balaNCE 31 DECEmbEr 2006
199,077
199,077
198,403
198,403
WOrkS Of arT
balance 1 January 2006
3,027
3,027
3,027
3,027
net revaluation of works of art
4,590
4,590
balaNCE 31 DECEmbEr 2006
7,617
3,027
7,617
3,027
iNVESTmENT rEValuaTiON
balance 1 January 2006
net revaluation of investments
222
balaNCE 31 DECEmbEr 2006
222
TOTal balaNCE 31 DECEmbEr 2006
206,916 202,104
206,020
201,430
19 TruST aND SpECial fuNDS
2006
consolidated / univeRsity
Special
endowment
Scholarships
total
funds
funds
$000
$000
$000
$000
balance 1 January 2006
1,920
6,339
8,157
16,416
income
6,526
1,478
1,128
9,132
less expenditure
6,425
2,156
296
8,877
net surplus (deficit)
101
(678)
832
255
balaNCE 31 DECEmbEr 2006
2,021
5,661
8,989
16,671
2005
consolidated / univeRsity
Special
endowment
Scholarships
total
funds
funds
$000
$000
$000
$000
balance 1 January 2006
1,887
6,385
7,330
15,602
income
6,264
2,885
1,166
10,315
less expenditure
6,231
2,931
339
9,501
net surplus (deficit)
33
(46)
827
814
balaNCE 31 DECEmbEr 2006
1,920
6,339
8,157
16,416
69
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
20 rElaTED parTiES
the university enters into transactions with government departments and crown agencies. these are not considered to be related party transactions.
auCklaND uNiSErViCES limiTED
the university pays some of the salaries of auckland uniServices limited administrative staff and other administration costs which it recharges to the
company. the university also charges auckland uniServices limited for costs incurred by departments and student scholarship costs against the company’s
projects.
the value of transactions charged by the university to auckland uniServices limited during 2006 was $18.3m (2005: $16.8m).
auckland uniServices limited pays some salary costs and sundry expenses on behalf of the university and recharges these to the university. the value of
transactions charged by auckland uniServices limited to the university during 2006 was $4.2m (2005: $2.9m).
interest charged by auckland uniServices limited to the university throughout the year was $1.789m (2005: $0.836m).
balances outstanding at 31 december 2006 are :
1. Sundry debtors
$2,364,197
(2005: $4,549,057)
2. current account
$1,460,481
(2005: $752,635)
3. Sundry creditors
$480,766
(2005: $347,356)
4. loan account
$31,700,000
(2005: $12,000,000)
Sundry debtors relate to amounts owing to university departments for scholarship charges and sundry expenses paid on behalf of auckland uniServices
limited.
Sundry creditors relate to amounts owed by university departments for salaries, travel expenses and other charges paid on their behalf by auckland
uniServices limited.
the loan account represents cash advanced by auckland uniServices limited to the university.
uNi-aCCOmmODaTiON limiTED
uni-accommodation limited is a wholly owned subsidiary of the university of auckland, which leases student accommodation from investors in the Railway
campus and rents rooms to students. the university provides value added services including meal plans, telephone and laundry services to the students on
its own account. the university provides management and accounting services to uni-accommodation limited free of charge, and receives and pays money
on behalf of uni-accommodation limited.
the balance owed by the university to uni-accommodation limited at 31 december 2006 is $231,593 (2005: $192,367).
70
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
21 aDOpTiON Of iNTErNaTiONal fiNaNCial rEpOrTiNg STaNDarDS
in december 2002, the accounting Standards Review board in new Zealand announced that new Zealand equivalents to international financial
Reporting Standards (nZ ifRS) will apply to all new Zealand entities for periods commencing on or after 1 January 2007, with the option to convert
two years earlier. the university of auckland will adopt nZ ifRS for the year commencing 1 January 2007. the comparative financial statements
will be restated and an opening position prepared using nZ ifRS as at 1 January 2006. this disclosure highlights the most significant changes
to the university of auckland's opening position as well as significant changes in accounting policy on conversion to nZ ifRS.
plaNNiNg fOr ThE TraNSiTiON TO NZ ifrS
a project team of university personnel has reviewed the university's current accounting policies to identify and plan for changes required to comply
with nZ ifRS. implementation of these changes commenced during the year ended 31 december 2006 and the project is on schedule to ensure that
conversion occurs within the required timeframe of 31 december 2007.
iDENTifiED aDjuSTmENTS ON aDOpTiON Of NZ ifrS
where the financial impact of conversion can be reliably estimated, and where it is material, details are provided below. the adjustments set out
in this note are estimates based on interpretation of the currently issued standards. to the extent that these standards or their interpretation
change, the amounts quoted below may need to be adjusted prior to the publication of the university's ful ifRS-compliant financial statements as at
31 december 2007.
1. fiNaNCial iNSTrumENTS
the university of auckland maintains an off-balance sheet portfolio of forward exchange contracts to hedge currency risks associated with its committed
foreign currency transactions. under new Zealand gaap these contracts are accounted for as hedges with any gains or losses deferred and recognised
when the hedged transaction occurs.
under nZ ifRS al derivative contracts wil be recognised at fair value in the Statement of financial position. changes in the fair value of the derivatives
wil be recognised in the Statement of financial performance unless strict hedge criteria are met. this includes testing the hedging relationship both
prospectively and retrospectively for effectiveness. ineffectiveness outside the prescribed parameters precludes the use of hedge accounting and may
result in volatility in the Statement of financial performance. cash flow hedge accounting is expected to be the predominant form of hedge accounting
applied by the university. it is expected that these new rules on accounting for hedging instruments wil introduce volatility within equity reserves,
and, where hedges are deemed ineffective, the potential for some volatility within the Statement of financial performance.
the net impact on equity as at 31 december 2005 (opening balance sheet) is $22,000. this amount represents the fair value of forward
exchange contracts as at 31 december 2005 that do not meet the criteria for hedge accounting.
2. EmplOyEE bENEfiTS
iaS 19 requires employee benefits to be recognised as services are rendered as opposed to on entitlement. the university of auckland has undertaken
an actuarial valuation to determine the likelihood of employees taking more than their current year's sick leave. this adjustment wil change net equity on
adoption.
the adjustment on transition to nZ ifRS has been quantified at $1,950,000 for the university and its subsidiaries. going forward, subsequent changes to
this provision wil result in volatility in the Statement of financial performance.
3. iNTaNgiblE aSSETS
the university of auckland does not currently recognise any intangible assets. nZ iaS 38 - intangible assets (and related interpretations) require
computer software that is not an integral part of the related computer hardware to be treated as an intangible asset, provided certain criteria are met.
on conversion to nZ ifRS, such items wil be reclassified from tangible to intangible fixed assets. there wil be no net impact on equity.
71
NOTES TO ThE fiNaNCial STaTEmENTS (CONTiNuED)
fOr ThE yEar ENDED 31 DECEmbEr 2006
21 aDOpTiON Of iNTErNaTiONal fiNaNCial rEpOrTiNg STaNDarDS (continued)
4. rEVENuE ariSiNg frOm aCTiNg aS agENT
under the requirements of nZ iaS 18 Revenue, in an agency relationship amounts col ected on behalf of a principal are not revenue and the entity
acting as an agent should recognise only its commission received as revenue.
it has been identified that entities within the university of auckland group receive revenue from a number of contracts that require them to col ect
money that is then passed on to third parties. in these instances the university should recognise only the commission received as revenue as
opposed to the total revenue and total expenses.
on conversion to nZ ifRS such items wil need to be removed from the income statement for both the comparative (31/12/2006) and the current
financial year (31/12/2007). there wil be no net impact on equity.
gENEral EQuiTy rECONCiliaTiON aS aT 1 jaNuary 2006 (baSED ON CurrENT ESTimaTES aND iNTErprETaTiONS)
consolidated
general
Revaluation
trust and
total
equity
Reserves
Special funds
equity
$000
$000
$000
$000
balance reported under NZgaap as at 1 january 2006
796,564
202,104
16,416
1,015,084
Recognition of derivatives not meeting criteria for hedge accounting
22
22
increase in employee entitlements
(1,950)
(1,950)
balaNCE rESTaTED uNDEr NZ ifrS aS aT 1 jaNuary 2006
794,636
202,104
16,416
1,013,156
72
COST Of SErViCES Summary
fOr ThE yEar ENDED 31 DECEmbEr 2006
consolidated
univeRsity
2006
2006
2005
2006
2005
actual
budget
actual
actual
actual
$000
$000
$000
$000
$000
COST Of SigNifiCaNT aCTiViTiES
teaching and research
357,263 357,055 341,838
357,521 341,870
Research programmes
173,936 171,337 165,584
110,042 103,996
academic services
136,379 134,769 129,737
133,093 126,700
institutional services
131,201
121,806 125,395
132,990 126,231
total cost of significant activities
798,779 784,967 762,554
733,450 698,797
less internal transactions
(146,433) (141,582) (130,713)
(146,433) (130,713)
TOTal EXTErNal COSTS
652,346 643,385 631,841
587,017 568,084
rEVENuE frOm SigNifiCaNT aCTiViTiES
teaching and research
472,950 472,793 454,476
476,606 456,101
Research programmes
183,851 175,402 178,149
118,181 115,427
academic services
41,307
39,063
37,804
38,020
34,782
institutional services
121,386 116,396 111,841
121,212 111,842
total revenue from significant activities
819,494 803,654 782,270
754,019 718,152
less internal transactions
(146,433) (141,582) (130,713)
(146,433) (130,713)
TOTal EXTErNal rEVENuE
673,061 662,072 651,557
607,586 587,439
OpEraTiNg SurpluS frOm SigNifiCaNT aCTiViTiES
20,715 18,687 19,716
20,569
19,355
internal transactions include occupancy charges, internal al ocations of research funding, internal tuition fees and services provided within the
university.
73
rEpOrT Of ThE auDiTOr-gENEral
fOr ThE yEar ENDED 31 DECEmbEr 2006
TO ThE rEaDErS Of ThE uNiVErSiTy Of auCklaND aND grOup’S fiNaNCial STaTEmENTS
aND pErfOrmaNCE iNfOrmaTiON fOr ThE yEar ENDED 31 DECEmbEr 2006
the auditor-general is the auditor of the university of auckland (the “university”) and group. the auditor-general has appointed me, nick main,
using the staff and resources of deloitte, to carry out the audit of the financial statements and statement of service performance of the university
and group, on his behalf, for the year ended 31 december 2006.
uNQualifiED OpiNiON
in our opinion:
• the financial statements of the university and group on pages 52 to 73:
• comply with general y accepted accounting practice in new Zealand; and
• fairly reflect:
o the university and group’s financial position as at 31 december 2006; and
o the results of operations and cash flows for the year ended on that date.
o the performance information of the university on pages 36 to 49 fairly reflects its service performance achievements measured against
the performance targets adopted for the year ended on that date.
the audit was completed on 27 february 2007, and is the date at which our opinion is expressed.
the basis of our opinion is explained below. in addition, we outline the responsibilities of the council and the auditor, and explain our
independence.
baSiS Of OpiNiON
we carried out the audit in accordance with the auditor-general’s auditing Standards, which incorporate the new Zealand auditing Standards.
we planned and performed the audit to obtain al the information and explanations we considered necessary in order to obtain reasonable
assurance that the financial statements and statement of service performance did not have material misstatements whether caused by fraud or
error.
material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overal understanding of the financial
statements and statement of service performance. if we had found material misstatements that were not corrected, we would have referred to
them in our opinion.
the audit involved performing procedures to test the information presented in the financial statements and statement of service performance.
we assessed the results of those procedures in forming our opinion.
audit procedures general y include:
• determining whether significant financial and management controls are working and can be relied on to produce complete and accurate
data;
• verifying samples of transactions and account balances;
• performing analyses to identify anomalies in the reported data;
• reviewing significant estimates and judgements made by the council;
• confirming year-end balances;
• determining whether accounting policies are appropriate and consistently applied; and
• determining whether al financial statement disclosures are adequate.
74
we did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service
performance.
we evaluated the overal adequacy of the presentation of information in the financial statements and statement of service performance. we
obtained al the information and explanations we required to support our opinion above.
rESpONSibiliTiES Of ThE COuNCil aND ThE auDiTOr
the council is responsible for preparing financial statements in accordance with general y accepted accounting practice in new Zealand. those
financial statements must fairly reflect the financial position of the university and group as at 31 december 2006. they must also fairly reflect the
results of its operations and cash flows for the year ended on that date. the council is also responsible for preparing performance information
that fairly reflects the service performance achievements for the year ended 31 december 2006. the council’s responsibilities arise from the
education act 1989 and the crown entities act 2004.
we are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you. this responsibility arises
from section 15 of the public audit act 2001 and the crown entities act 2004.
iNDEpENDENCE
when carrying out the audit we fol owed the independence requirements of the auditor-general, which incorporate the independence
requirements of the institute of chartered accountants of new Zealand.
in addition to the audit we carried out assignments in the area of executive payrol services. other than the audit and this assignment, we have
no relationship with or interest in the university or any of its subsidiaries.
nicK main
deloitte
on behalf of the auditor-general
auckland, new Zealand
• this audit report relates to the financial statements of the university of auckland for the year ended 31 december 2006 included on the university
of auckland’s website. the university’s council is responsible for the maintenance and integrity of the university’s website. we have not been engaged
to report on the integrity of the university’s website. we accept no responsibility for any changes that may have occurred to the financial statements
since they were initially presented on the website. the audit report refers only to the financial statements named above. it does not provide an opinion
on any other information which may have been hyperlinked to/from these financial statements. if readers of this report are concerned with the inherent
risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit
report dated 27 february 2007 to confirm the information included in the audited financial statements presented on this website. legislation in new
Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
75
glOSSary
aCrONym
EXpaNDED mEaNiNg
asttle
assessment tools for teaching and learning
cecil
the university of auckland's learning management System
coRes
centre of Research excel ence
dalSl
department of applied language Studies and linguistics
efR
external y funded Research
eftS
equivalent ful time Student
fmhS
faculty of medical & health Sciences
fRSt
foundation for Research Science and technology
hRc
health Research council
moe
ministry of education
ndeva
the student administration system.
nicai
national institute of creative arts and industries (also referred to as faculty of)
oecd
organisation for economic co-operation and development
pbRf
performance based Research fund
pgSf
public good Service fund (crown research funder)
RSnZ
Royal Society of new Zealand
tec
tertiary education commission
teo
tertiary education organisation
teSol
teachers of english to Speakers of other languages
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2006
2006
2006
the university of auckland
private Bag 92019
the university
auckland Mail centre
auckland 1142
new Zealand
of auckland
www.auckland.ac.nz
2006 annual report
Zealand
Zealand
Zealand
New
New
New
Auckland
Auckland
Auckland
of
of
of
University
University
University
The
The
The
Report
Report
Report
Annual
Annual
Annual