Annual Report 2015 - Lincoln University

Transcription

Annual Report 2015
Feed the world
Protect the future
Live well
Lincoln University Annual Report 2015
Contents
Lincoln University – An Introduction
2
Overview from the Chancellor
and Interim Vice-Chancellor
4
Highlights 2015
9
University Governance
14
Statement of Service Performance
17
Delivering Skills for Industry
18
Getting At Risk Young People into a Career
19
Boosting Achievement of Māori and Pasifika
20
Improving Adult Literacy and Numeracy
21
Strengthening Research-Based Institutions
22
Growing International Linkages
23
Performance Commitments
24
Equity of Opportunity in Education and Employment
28
Equity of Opportunity
28
Access to Education
28
Educational and Pastoral Support
28
Equal Employment Opportunity
29
Group Financial Statements
31
Notes to the Financial Statements
37
Compulsory Student Services Fees
71
Independent Auditor's Report
72
Quick Reference Facts and Figures
75
Enrolled Students
75
Equivalent Full-time Students (EFTS)
76
Qualification Completions
76
Research Degree Completions
76
Staffing76
Group Financial Performance and Position
76
By using Cocoon Offset rather than a non-recycled paper to produce this report, the environmental impact was
reduced by:
111
kg of landfill
2,304
litres of
water
16
kg CO2 and
greenhouse
gases
212
kWh of
energy
164
km travel in
the average
European car
180
kg of
wood
Source: Carbon footprint data evaluated by Labelia Conseil in accordance with the Bilan Carbone® methodology. Calculations
are based on a comparison between the recycled paper used versus a virgin fibre paper according to the latest European BREF
date (virgin fibre paper) available. Results are obtained according to technical information and subject to modification.
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Lincoln University –
An Introduction
Lincoln University is New Zealand’s specialist landbased university and was established as the Southern
Hemisphere’s first dedicated agricultural college in 1878.
Based in Canterbury, New Zealand, the institution, which
became a university in 1990, has forged a strong connection
with the land and the productive industries that flow from it.
The University is deliberately specialised and is uniquely
positioned to work alongside industry, community, and
people from around the globe, to answer the biggest
questions facing the world today.
Lincoln University is ranked in the top 400 by QS World
Rankings, ranked in the top 100 in the world for agricultural
programmes and has a QS five-star rating.
The University has a partnership agreement with the
Euroleague for Life Sciences (ELLS), an exclusive network
of seven leading European universities, and is part of the
Global Challenges University Alliance (GCUA). The GCUA
gathers the top universities on every continent, around
issues of food security, bio-energy, sustainable urban
development and climate.
Our Teaching
We have three faculties that deliver our academic teaching
and research: the Faculty of Agribusiness and Commerce,
the Faculty of Agriculture and Life Sciences, and the Faculty
of Environment, Society and Design. Two divisions also
deliver academic programmes, University Studies and
English Language, and Lincoln-Telford.
These faculties and divisions prepare our graduates to enter
the land-based economy with the experience to negotiate
between competing interests and balance demands to
provide the best possible solutions.
Our Research
We are proud of our abilities to take research from the lab
to the field; from computer to the community; and from
theory to practice. Wherever possible, we contribute to
the development and commercialisation of products, and
engage with end-users to ensure our research remains
relevant to the needs of industry.
This research is conducted by many research centres
hosted within the faculties, and two stand-alone research
centres: the Bio-Protection Research Centre (a Centre of
Research Excellence) and the Agribusiness and Economics
Research Unit.
Our research also contributes to both local and international
communities, helping shape and inform public policy and
social development.
Our Campuses
We have two residential campuses based in the South
Island. The Te Waihora campus is located 20 minutes south
of Christchurch, on 58 hectares of picturesque and park-like
grounds. Our second and smaller campus, Telford, is located
five minutes south of Balclutha in South Otago, on the
perimeter of the famous Catlins.
Our Subsidiary Companies
Lincoln Agritech Limited is a leading-edge research and
development company applying innovative engineering and
science technologies to support agriculture, industry and
the environment.
Lincoln Hospitality Limited provides accommodation,
catering, recreation and early childhood services for the
campus and wider community.
Lincoln University Property Joint Ventures are partner
companies in a joint venture with Ngāi Tahu Property
Limited, developing former university land at Lincoln for the
benefit of the University’s core business.
Our Farms
Lincoln operates farms or blocks of properties around New
Zealand to deliver education and training, research and
development, demonstration, and scholarship support. This
land plays a vital role in ensuring we provide a platform
for better student experience, better scientific research
on productivity and the environment and, perhaps most
importantly of all, an enhanced interface between us and
New Zealand’s farmers.
The University is deliberately specialised
and is uniquely positioned to work
alongside industry, community, and people
from around the globe, to answer the
biggest questions facing the world today.
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Overview from
the Chancellor and
Interim Vice-Chancellor
Tēnā koutou, tēnā koutou, tēnā koutou katoa.
Welcome to Lincoln University’s 2015 Annual
Report.
The University prioritised effort on the key
strategies to create a sustainable institution and
enhance the University’s specialist contribution
to New Zealand’s land-based industries and
their global influence. Particular emphasis
was placed on achieving continued growth
in student numbers, advancing the Lincoln
Hub and campus rebuild, and enhancing
financial management. The University pursued
the process for settlement of its earthquake
insurance claim. At the same time, ongoing
efforts to maintain and enhance the excellence
of the University’s research and learning and
teaching continued.
Achieving student growth and improving cost effectiveness
are critical in order both to meet the growing capability
requirements of the land-based sectors for more skilled
workers and to create a more sustainable University. Various
innovative approaches have been taken to assist with
attracting and retaining students, including the reform of
the qualifications portfolio, fees packages for both domestic
and international students, marketing, and implementation
of a new student relationship system. Similarly, efforts
to enhance the student experience have been supported,
in conjunction with the Lincoln University Students’
Association. The success of the Lincoln Hub will be integral
to driving efficiencies, and in the longer term attracting
additional undergraduate and postgraduate students.
While total EFTS declined slightly in 2015, it was apparent
that the negative effect of the flow-through of smaller
cohorts in earlier years was ending. Growing new-to-Lincoln
enrolments in land-based qualifications indicated that the
University’s positioning was effective and well received.
Semester One student numbers in 2016 are positive, with an
overall rise of over 10% in new students from 2015 and total
EFTS up over 5% on 2015.
Considerable resources were devoted to advancing the
Lincoln Hub proposal, in partnership with the three Crown
Research Institutes with existing campuses in Lincoln
(AgResearch, Landcare Research, and Plant & Food
Research), plus DairyNZ. The vision is of an integrated
cluster of collaborative capability in land-based research,
education and technology transfer tasked with contributing
to New Zealand achieving the goal of doubling the value
of primary sector exports by 2025 and with improved
environmental outcomes.
The focus of the effort was on preparing two complex
Better Business Cases for submission to government. The
first presents the case for the full vision of the Hub and the
second covers how it is intended to utilise the ‘in principle’
$100m granted capital from the government. This is a
component of a total capital injection of $107.5m announced
in 2014 primarily to assist with the rebuild of the University’s
science facilities, in conjunction with insurance proceeds.
The first case was submitted to the quality assurance
process by year end and the second is to be submitted in the
first half of 2016.
The initial Hub facility is to be a new education and research
facility for the joint use of the University, AgResearch and
DairyNZ on the University campus. It will quickly have a
major impact on the scale, quality and value of education
and research for land-based sectors. The first part of the
new facility is planned to be operational in 2018.
The Hub is a key component of the overall growth strategy
for Lincoln University. The University’s future can be
expected to be substantially strengthened through the
opportunities for greater student enrolments, research
revenue and industry partnerships within the innovation
cluster. At the same time, the Lincoln Hub needs to
have a university at its core, contributing to capability
development. The campus re-build provides the once in
a lifetime chance to achieve the integration between the
Hub partners.
The University accepted an insurance progress payment
of $27.4 million, which was taken to revenue in respect of
the earthquake insurance claims. It is envisaged that a final
settlement can be concluded with the insurers in 2016.
Excluding the insurance proceeds, the University’s operating
result was a deficit. However, the emphasis placed on cost
containment was beneficial and every effort will be made to
achieve the Group surplus budgeted for 2016.
In September, Mr Jeremy Morley from PwC was appointed
by mutual agreement with the Tertiary Education
Commission to provide independent financial advice
to Council. His experience and financial rigour have
been invaluable in enhancing the University’s financial
management and reporting processes.
A key focal point for the academic work of the University
was the preparations for the 2016 Cycle 5 Academic Audit
to be conducted by the Academic Quality Agency for
New Zealand Universities. A comprehensive self-review
process was undertaken in relation to the specified audit
themes, evaluating the extent to which the University has
undertaken the expected activities and processes, and
compiling the supporting evidence.
In research, implementation continued on the universitywide, land-based research strategy. Preparations continued
towards the 2018 Performance-Based Research Fund (PBRF)
assessment. Enhancing the profitability of research was
also a key priority. Additional professorial capability was
recruited during the year and the Professorial Forum took a
greater leadership and mentoring role.
Of critical importance to New Zealand’s pest, weed and
disease management was the government’s decision
to confirm the funding for the Bio-Protection Research
Centre (BPRC) – a Centre of Research Excellence hosted
at the University – for the five years through to 2020.
A partnership between Lincoln, Massey University,
AgResearch, Plant & Food Research and Scion, the Centre
does fundamental research that underpins both plant
bioprotection and plant biosecurity for New Zealand.
The University continues to prioritise its enduring
partnership with Ngāi Tahu within our Whenua Strategy,
the University’s overall Māori strategy informing Lincoln’s
internal and external strategies for education, research
and relationships with Māori communities. The Whenua
Kura programme to support the sustainable development
of the Ngāi Tahu farming portfolio was consolidated. A
collaborative project was launched with Koukourārata
Runanga (Port Levy) to restart a market garden concept as
a catalyst for additional farming ventures and education
projects. Another highlight of engagement with Māori was
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the hosting of a very successful Tā Turi Carroll Workshop at
Taihoa Marae at Wairoa in the Hawke’s Bay in November.
The leadership of the University underwent a transition
following Dr Andrew West’s resignation as Vice-Chancellor
in June after three years in the role. During the period
of Dr West’s tenure, the University focussed on its landbased specialisation through qualification reforms and
the revitalisation of capability, secured an in-principle
investment of $107.5m by Government in rebuilding the
University, and achieved growth in student enrolments.
Dr West’s contribution in leading the University through this
period of significant change is acknowledged.
As a transitional arrangement, Dr John Hay acted as
Interim Vice-Chancellor while the international search
for a replacement Vice-Chancellor was undertaken. The
University acknowledges Dr Hay for his leadership during
the extended transitional period.
Professor Robin Pollard subsequently commenced as
Vice-Chancellor on 29 February 2016. Professor Pollard
(Canterbury raised) was previously the Deputy ViceChancellor at the University of Central Lancashire in
England, and has extensive experience in universities
around the world. We wish him every success in building
on the foundations now in place for securing the
University’s future.
The evolution of the human face of the University reached
a milestone in 2015. For the first time, female students
studying at the two campuses outnumbered male students
at both locations. At the Lincoln-Telford campus the roll has
changed from 16 per cent females in 2010 to just over 50 per
cent in 2015. Overall, with the inclusion of distance students,
there remains a small but declining majority of male
students. More students from urban backgrounds
are also being attracted to the opportunities in the landbased sectors.
The University’s infrastructure is also undergoing significant
change, both in recovery from the earthquakes and
preparing for the Lincoln Hub development. The major
project in 2015 was the completion of the demolition
of the Hilgendorf building damaged in the Canterbury
earthquakes, freeing up the site for replacement science
facilities. All involved in this large demolition project are to
be congratulated for its safe and timely completion.
Another facility created during the year to compensate
for the loss of the Hilgendorf building involved the
incorporation of four new growth chambers and a plant
science laboratory at the Field Service Centre, and an
associated seismic upgrade. The renamed Field Research
Centre was opened in March 2016.
The Workshop student space was created from an old
arts workshop. Maintaining and enhancing the student
experience during the rebuild of the campus is a key
consideration, and this new dedicated social space has
the look and feel to make students feel immediately
comfortable. The facility was opened for Semester One 2016.
An investment was required late in the year in additional
student accommodation to meet the expected increase in
demand for Semester One in 2016. By commissioning new
relocatable buildings and refurbishing existing ones, 65 new
beds are being provided.
The University also commenced the replacement of its IT
network. Replacing the existing network implemented in
2004 will enable the level of services to deliver the core
functionality expected by today’s students. It supports
a digital strategy focussed on putting the student at the
centre of a new learning experience by providing access to a
mobile environment that is always highly available. Priority
was placed on expanding wireless cover to all teaching
spaces for the 2016 academic year.
The continued importance of the University’s farms for
research and teaching was recognised with the decision
to create a new Research and Development Station at the
University’s Ashley Dene farm, funded by the University
and external sponsors. The Station will develop effective
and profitable farming systems and technologies to help
farmers to achieve sustainable production and protect
the environment.
The Lincoln University Council undertook the transition to
a new Council constitution, as required by the Education
Amendment Act 2015. The new constitution was gazetted
on 10 September and came into effect on 9 December. A
major governance reform was involved, in particular with
the membership of Council being reduced from 19 to 12
members. We thank Dr Robin Mann, former Chancellor
of the University of Canterbury, who contributed to the
governance reform process at both Universities.
The composition of Council is now: four Ministerial
appointees, the Vice-Chancellor, an elected academic staff
member, an elected general staff member, an elected
student, a member appointed after consultation with Te
Rūnanga o Ngāi Tahu, and three other members appointed
by Council (including at least one alumnus). The members
and office holders are listed in the University Governance
section later in the Annual Report. Other aspects of
governance were reformed to align with the expected
flexibility and efficiency of a smaller council.
Lincoln students shone across a range of sports,
underpinned by the successful sports scholars programme
and the quality of our recreation and sports staff and
coaches. In a notable first, the University currently holds
both the Metro Division One rugby title and the Premier
Division netball title.
Our relationship with alumni continues to be highly valued
and celebrated throughout the year, both within New
Zealand and overseas. Through the Lincoln University
Alumni Association, alumni are able to stay connected
with the University and with one another. As an example
of that tight and enduring connection, for the Diploma of
Agriculture 1951/52 Reunion in April there were nearly 20
attendees from alumni and their families over 60 years after
the course was held. Another alumni highlight of the year
was the Telford 50th Reunion held at Easter, attracting more
than 200 attendees.
The contribution made by all members of the outgoing
Council is gratefully acknowledged, especially those who
completed their service on Council in 2015 (commencing
year shown in brackets): Associate Professor Tracy Berno
(2014), Mr Royston Boot (2009), Mr Peter Chamberlain (2013),
Ms Kahlia Fryer (2014), Mrs Trisha Harrison-Hunt (2012),
Professor Sheelagh Matear (2005), Mr Ted Rogers (2002),
Ms Hiraina Tangiora (2015), Mr Christin Watson (2012),
Dr Andrew West (2012), and Mr David Yardley (2011).
Joining Council were Professor Brian Jordan, elected by
the academic staff, and Dr Hay who served on Council
from the August meeting as Interim Vice-Chancellor. With
the re-constituted Council in December 2015 the first-time
members were: Dr Peter Cook, elected by the general staff,
and Ms Puamiria Parata-Goodall, nominated by Ngāi Tahu.
Ms Aimee Kingsbury replaced Ms Fryer as the student
member on 1 January 2016.
The Lincoln University Students’ Association and Te
Awhioraki (the Māori Students’ Association) have been
active and committed in seeking to improve the student
experience and advocating for the student body. The
two Association Presidents, Ms Fryer and Ms Tangiora
respectively, are to be commended for their leadership.
We thank the management team and all the staff for their
dedication and hard work. All are to be congratulated for
the external recognition of the University’s excellence
received during the year. The University rose further in the
Quacquarelli Symonds (QS) rankings to 373 and was ranked
in the top 100 world universities in the field of agriculture
and forestry and as the 13th best ‘small university’. A fivestar rating was awarded by QS. In the International Student
Barometer survey, the University was rated number one in
the world in several categories and achieved a number of
first placings among the New Zealand universities.
In 2016, subject to the final approval of the business cases
for the Lincoln Hub, the Hub infrastructure build
will commence. That initiative will provide a major boost to
this institution and to the collaborative effort to
support the land-based industries to deliver considerably
more benefit to New Zealand and to address the pressing
global challenges.
Tom C. Lambie ONZM
Dr John Hay
Chancellor
(To April 2016)
Interim Vice-Chancellor
(July 2015 to February 2016)
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Highlights 2015
International Rankings
Quacquarelli Symonds
In 2015, the University continued to rise in the Quacquarelli
Symonds (QS) rankings, with a ranking of 373, compared to
the 411-420 bracket in 2014. The University also sustained
its ranking in the top 100 world universities in the field of
agriculture and forestry.
The QS star rating evaluates an institution against over
50 different indicators, and awards universities between
one and five + stars over eight wider fields, as well as an
overall rating.
Teaching is the University’s strongest category, with
maximum scores on three criteria — faculty student ratio,
overall student experience, and student satisfaction with
teaching – for a five-star category rating.
International Student Barometer
Lincoln University was ranked number one in the world on
several scores in the 2015 released International Student
Barometer (ISB) survey – a global study that investigates the
decision-making, expectations, perceptions and experiences
of international students.
Graduation Ceremonies
The 2015 Graduation Ceremony for the Te Waihora campus
was held in the Lincoln Event Centre on 24 April. There were
two graduation ceremonies. Students who graduated with a
degree from the Faculty of Agribusiness and Commerce were
capped in the morning, while those who graduated with a
degree from the Faculty of Agriculture and Life Sciences or
Faculty of Environment, Society and Design were capped in
the afternoon.
Six hundred and sixty-three graduands and diplomates
received degrees, diplomas and certificates in person or in
absentia at the graduation ceremonies.
An Honorary Doctor of Natural Resources was conferred on
Tā Mark Solomon, Kaiwhakahaere (chairman) of Te Rūnanga
o Ngāi Tahu. Since settlement, Ngāi Tahu has allocated over
$18 million to environmental initiatives, many of which Tā
Mark has taken a personal interest in. He chairs the Iwi
Leaders Group on Conservation and he is also a member of
the Freshwater Iwi Leaders Group. He ensures careful use of
natural resources so that each generation is catered for.
One hundred and seventy-nine universities worldwide
and all New Zealand universities participated and Lincoln
University was ranked number one in the world for helping
students choose topics, for how it runs its accommodation
office, and for helping students obtain health insurance.
An Honorary Doctor of Science was conferred on Sue
Suckling, OBE. Sue Suckling was awarded an OBE for her
contribution to New Zealand business in 1996. In April 2010,
the Council of the Royal Society of New Zealand elected her
a Companion of the Royal Society, a title which recognises
outstanding leadership in science, and contributions to the
promotion and advancement of science and technology in
New Zealand. She is chair of the Callaghan Innovation Board,
ECL Group, Barker Fruit Processors, Jacobsen Pacific, and the
New Zealand Qualifications Authority.
The University also rated first in numerous categories
among the New Zealand universities, such as the quality
of its teachers, managing research, learning support,
assessment and performance feedback, and employability
(or how much a qualification will enhance a student’s
career prospects).
The Lincoln University Bledisloe Medal was awarded to John
Acland, CNZM. Mr Acland has combined a high achieving
business career with a strong commitment to public service.
He farmed Mt Peel from 1960 until 1990. Over this period,
he was also involved with entrepreneurial leadership in the
agriculture sector in a variety of roles.
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The Lincoln Alumni International Medal was awarded to
Dr John Morris. Dr Morris is director of the Institute of Food
and Grocery Management in Australia. He has been an
international adviser to the Food Marketing Institute (FMI)
and conducted FMI operations and customer research in
many countries. He was part of the Cornell University Food
Executive Program in the United States for 28 years and has
been a Visiting Professor of Food Industry Management at
a number of international universities. Dr Morris is a proud
Lincoln alumnus and has always maintained a very close
association with Lincoln University, with significant input
into marketing courses and seminars over many years.
The Graduation Ceremony for Lincoln-Telford Division
students was held in Balclutha on 27 November, where 54
diplomates received their diplomas, certificates and awards
in person at the Balclutha War Memorial Hall.
Research, Innovation and
Extension
External Research Funding
External research funding of $21 million (GST exclusive) was
received by the University in 2015.
Examples of external and internal research projects follow:
Boosting food production through phosphorus
In January, Professor Leo Condron from the Faculty of
Agriculture and Life Sciences joined forces with the Scientific
and Technological Bioresources Nucleus (BIOREN) of the
Universidad de La Frontera in Temuco, Chile, a prominent
Chilean university research institute, to address pressing
issues involving the essential role of phosphorus in global
food production.
The productivity of ecosystems is largely determined by the
presence of phosphorus in soil. However, the world’s known
phosphorus reserves are steadily being depleted, and
demand is expected to exceed supply within 100 years.
Most phosphorus applied as fertiliser is retained in soil,
and these reserves can be used to assist with future
requirements, but a large amount of this residual
phosphorus is not readily available to plants. A major reason
for residual phosphorus being inaccessible involves the
presence of certain minerals in acid soils, particularly a clay
mineral called allophane, which is volcanic in origin.
Researchers from Chile and New Zealand are well-placed
to investigate the issue, as volcanic soils make up about 40
percent of agricultural land in Chile, while acidity severely
limits the productivity of hill and high country soils in New
Zealand, which account for 75 percent of agricultural land.
Nature of wellbeing
The Department of Conservation commissioned
Dr Lin Roberts, from the Faculty of Environment, Society
and Design, and a group of her colleagues to write a
report which raises awareness of the role ecosystems play
in our happiness.
Released in May, the report, entitled The nature of wellbeing
– how nature’s ecosystem services contribute to the wellbeing
of New Zealand and New Zealanders, promotes the message
that the environment’s contribution to our wellbeing should
play a greater role in public decision-making.
Consumption of food and drinks after a natural disaster
Lincoln University Senior Marketing Lecturer Dr Sharon
Forbes conducted a study as outlined in her paper, Postdisaster consumption: analysis from the 2011 Christchurch
earthquake, which was judged the best paper at the
International Food Research Marketing Symposium in Crete
in June.
She says it is the first real empirical study she knows of
which looked at the actual products that were purchased
following a disaster and did not rely on asking people to
recall their behaviour.
Bio-Protection Research Centre
The Bio-Protection Research Centre (BPRC) – a Centre of
Research Excellence hosted at the University – had its
funding confirmed for the next five years.
The BPRC brings together New Zealand’s leading experts
in bioprotection, and is a partnership between Lincoln
University, AgResearch, Massey University, Plant & Food
Research and Scion. It also includes collaborations with
several other national and international research institutes.
The BPRC has three main research themes focussed on
protecting the plant-based systems in New Zealand:
pests and pathogens, biological controls, and biosecurity
and invasions.
Examples of research undertaken in 2015 included
developing a weapon in the fight to stop another destructive
pest, the brown marmorated stink bug, coming into the
country; discovery of new insect species; and genes that are
important for the systemic spread of Pseudomonas syringae
pv. actinidiae (Psa) in kiwifruit.
In November, the BPRC organised a symposium that
explored the future of plant protection and biosecurity. It
brought together experts from across the country to share
their vision for tackling current and future threats from
plant diseases, insect pests and weeds.
Full details of the activities of the BPRC are outlined in its
published Annual Report available at
www.bioprotection.org.nz.
Lincoln Agritech Limited
Lincoln Agritech Limited (LAL) finished the year strongly with
the announcement of Ministry of Business Innovation and
Employment (MBIE) funding of $6.2m to Lincoln Agritech
over the next three years. This includes subcontracts to a
number of collaborating organisations.
The projects involve understanding groundwater
contaminant flows, time lags and pathways to improve
aquifer management; new science related to sensor
technologies that determine the fat depth and body
condition score in live animals; developing a non-invasive
sensor to measure dry matter in fruit and vegetables,
and producing a new nitrogen fixing mulch film for
horticultural applications.
In addition LAL is part of a new $21m wool research
programme headed by Wool Industry Research Limited
(WIRL). This is an MBIE Partnership Programme which
will look at ‘new uses for coarse wool’ and also includes
research partners from AgResearch, Otago University and
Massey University.
The IRRICAD business unit has had a busy year completing
the conversion of the computer aided drawing (CAD) engine
of IRRICAD to an AutoCad platform. Substantial effort also
went into producing a Chinese language version of IRRICAD
to support our business development activities in China.
IRRICAD is now available in eight languages.
Work continued on LAL’s internally funded development of
a low cost optical groundwater nitrate sensor. A prototype
unit has been developed and tested down a well, which once
commercialised, should help measure the nitrate discharges
from changes in land use intensity.
A Christchurch based start-up company, CertusBio, has
recently completed two technology licensing agreements
with Lincoln Agritech. The company develops innovative
process control systems to monitor industrial, agricultural
and environmental processes. The licensing deal includes
Lincoln Agritech’s lactose biosensor and Biochemical
Oxygen Demand (BOD) technologies.
LAL’s Chemical Application, Research and Training group
(CART) completed a six-year MBIE funded research
programme on agricultural chemical spray drift movements
and how to mitigate them. The project, improved models
for turbulence, drop deposition in plant canopies, drift
from ground boom sprayers and the mitigating effect of
shelterbelts in an international spray drift model.
LAL won the 2015 Ulrich L Rhode Innovative Conference
Paper award at the 2015 IEEE International Conference on
Antenna Measurements and Applications conference in
Chiang Mai, Thailand. The team beat 90 other contenders to
win the award, and it was the second consecutive year that
LAL had won this award for the best paper.
LAL’s Sensing Technologies Group was a recipient of the 2015
NZ-German Science and Technology Grant. Lincoln Agritech
will be partnering and collaborating with the Fraunhofer
Institute for Electronic Nanosystems (ENAS) for two years
on a research programme titled, ‘Smart sensors for global
agriculture’. This project will focus on transformational
sensors that enhance agricultural quality and sustainability.
LAL Boffa Miskell, Lincoln University, and AUT created an
animal monitoring system, ‘Print Acquisition for Wildlife
Surveillance’ (PAWS). Staff members at LAL designed the
PAWS electronic detector system and software; including a
highly sensitive sensor pad with the ability to record data
from animal interactions and automatically identify the type
of animal. The PAWS monitoring unit has been successfully
trialled in NZ, Australia and the UK and the technology has
featured on RadioNZ and on BBC World Service.
LAL continues its involvement as a partner with staff
written into the work programmes of two National
Science Challenges, ‘Our Land and Water’ and ‘Science for
Technological Innovation’. LAL are leading a collaborative
project with Waikato University, University of Canterbury,
University of Auckland, Otago University, GNS and Robinson
Institute, for the Science for Technological Innovation
National Science Challenge. This spearhead project for the
Agri- and Enviro-technologies portfolio is called ‘Inverting
Electromagnetics – a new way to measure groundwater
flow’. The project will promote NZ’s capacity to use physical
and engineering resources research by investigating
electromagnetic sensing to enable measurement of ground
water movement, leading to a novel large-scale sensor.
For more information about LAL’s activities, please visit
www.lincolnagritech.co.nz.
Lincoln Farms
Using the University farms as both research laboratories
and teaching environments has continued throughout 2015.
In December, the University announced the creation of a
new Research and Development Station at the University’s
Ashley Dene farm.
The Research and Development Station will develop
effective and profitable farming systems and technologies
to help farmers to achieve sustainable production and
protect the environment. Research into two dairying
systems will be conducted. One-hundred and forty hectares
will be developed as an irrigated block with 450 cows, and
50 hectares will be developed as a dryland block with
106 cows.
The important dryland sheep research that Lincoln
University conducts at Ashley Dene will continue on the
Homestead and Cemetery blocks, as well as on part of the
newly irrigated main block.
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Key Partnerships
FoodSouth
In November, the Canterbury Development Corporation
and Callaghan Innovation opened FoodSouth, the South
Island hub of the New Zealand Food Innovation Network,
with the food innovation centre and pilot production plant
based at Lincoln University. FoodSouth will provide South
Island food and beverage businesses with access to a
range of product development services, expertise and
equipment to accelerate the development of innovative new
high-value products.
Tourism Industry Association
Lincoln University and the Tourism Industry Association
(TIA) signed a Memorandum of Understanding (MOU) which
will allow the two organisations to share important industry
information and networks. The MOU will give the University
increased exposure to industry leaders and politicians,
allowing the University’s research to play a large role in
informing future policies and ensuring Lincoln’s courses are
up-to-date with current trends and issues.
External Acknowledgement,
Competitions, Conferences, Events
and Field Days
Acknowledgement of Academic Standing
A large number of academic staff members received
acknowledgement from their peers of their expertise.
Examples include:
• Professor of Systems Biology, Don Kulasiri, from the
Faculty of Agriculture and Life Sciences was made
a Fellow of the Modelling and Simulation Society of
Australia and New Zealand (MSSANZ).
• Dr Emma Stewart from the Department of Tourism,
Sport and Society joined the steering committee of the
UN's World Meteorological Organisation 'Societal and
Economic Research Applications' (SERA) group. SERA are
currently developing a concept and research plan for the
up and coming year of Polar Prediction.
• Dr Jamie Ataria from the Department of Ecology was
named Deputy Director in the successfully funded Nga
Pae o te Maramatanga Centre of Research Excellence.
• Professor Keith Cameron from the Department of Soil and
Physical Sciences was elected to the Fellowship of the
Royal Society of New Zealand. This is an honour given to
New Zealand’s top researchers for showing exceptional
distinction in research or in the advancement of science,
technology or the humanities.
Kim Hill Debate
The annual debate mediated by Kim Hill was held on
26 March 2015 and there was lively discussion on the various
aspects of the topic ‘The Great Pest Invasion’. The panellists
were: Steve Gilbert (Director Border Clearance Services MPI);
Grant Smith (Effective Detection and Response Programme
Leader, Plant & Food Research); Bill Dyck (Forest Owners
Association Biosecurity Manager); Barry O'Neil (Chief
Executive of Kiwifruit Vine Health); Lindsay Burton (Risk
Management Programme Specialist, Fonterra); and Peter
Silcock (CEO, Horticulture NZ).
International Journal of Food Science and Technology
Conference
Lincoln University hosted the International Journal of Food
Science and Technology Conference from 17 to 19 February.
The overarching theme of the conference was the future
of food innovation, nutrition and technology. It brought
together more than 250 scientists, government officials
and industry representatives from over 50 countries around
the globe.
Sporting Success
The win by Lincoln University in the 2015 Christchurch
Premier Division netball final in August marked an historic
double for the University. The University now holds the
Metro Division One rugby title and the netball title at the
same time, for the first time in its sporting history. The
rugby side earlier claimed the University’s first Division One
title in 34 years in July.
State of the Nation’s Environment Address
Sir Alan Mark, FRSNZ, KNZM from the Department of
Botany, University of Otago was the guest speaker for the
annual address on 30 September. The topic of his speech
was ‘Addressing Global Challenges In Our Own Backyard:
What can we learn from smaller-scale successes?’
Tā Turi Carroll Workshop
Lincoln University hosted a two-day event at Taihoa
Marae at Wairoa in the Hawke’s Bay on 6 and 7 November,
in recognition of distinguished alumnus Tā Turi Carroll
(1890-1975). Whānau, hapu and iwi, Māori lands trusts,
farming, industry, business leaders, Lincoln alumni and the
community attended. The focus was on the future of Māori
land development, farming and agribusiness through a
restatement of Tā Turi’s vision.
Telford Reunion
More than 200 graduates and former and current staff
attended the Telford 50th Reunion over Easter weekend.
Participants at the reunion were very impressed with the
Telford campus facilities that had been developed over the
50 years.
Lincoln University Foundation’s South Island Farmer
of the Year
The Lincoln University Foundation invests funds initially
raised from donations made in conjunction with the 1978
Lincoln College Centennial. The earnings are utilised for
grants towards student further education and running the
flagship 'Lincoln University Foundation South Island Farmer
of the Year' competition.
The South Island Farmer of the Year field day in 2015 was
held on 13 February with over 400 people attending. The
field day showcased the 2014 winner, Patoa Farms Limited,
a large scale free-farmed pig breeding and finishing
operation at Hawarden in North Canterbury. The farm has
3500 breeding sows and sells 115,000 fat pigs annually. It
employs 43 staff and has a $25 million annual turnover.
Through the field day, Lincoln University Foundation
representatives were able to promote a top farm
management and food value chain system outside the
conventional red meat sector.
The 2015 competition saw the prestigious award being
shared by two entrants for the first time: Omarama Station
(a North Otago red meat producer) and Clearwater Mussels
(a Marlborough green-lipped mussel grower).
VIP Visitors
Sri Lanka Government
On 11 February, the Honourable Navin Dissanayake, Minister
for Sport and Tourism of Sri Lanka, visited the University,
accompanied by his wife Mrs Lanka Dissanayake, Mr Michael
Appleton (New Zealand Deputy High Commissioner,
New Delhi) and Mr Aruna Abeygoonesekera (Sri Lankan
Honorary Consul).
Thailand Ambassador
Incoming Thai Ambassador to New Zealand, His Excellency
Maris Sangiampongsa, and his delegation of officials
visited in September to meet with postgraduate students
from Thailand studying PhD qualifications at Lincoln,
and to discuss agribusiness issues and water-monitoring
technologies.
Tasmania Delegation
Groups from the University of Tasmania, Tasmanian Institute
of Agriculture and a Tasmania Ministerial delegation visited
the University from 9 to 11 November. Lincoln alumnus,
the Hon. Jeremy Rockliff (Deputy Premier of Tasmania and
Minister for Primary Industries and Water) led a delegation
of seven. A Memorandum of Understanding was signed
between Lincoln University and the University of Tasmania.
Ministerial Visits
• The Hon Amy Adams, as Minister of Justice, spoke to the
SOCI 117 (Introduction to New Zealand Government and
Public Policy) class on 31 July.
• On 18 September, New Zealand First MP Richard
Prosser and Angela McLeod (Policy, Research, and
Communications Advisor) visited to discuss the current
New Zealand First Primary Industries policy and hear
of issues that face the industry from the perspective of
Lincoln University and how New Zealand First’s policy
might support that in the future.
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University Governance
As required by the Education Amendment Act 2015, a new Lincoln University Council constitution was gazetted
on 10 September 2015 and took effect from 9 December 2015. The law change involved a significant reform of the
governance of New Zealand’s universities. The maximum number of members for the Lincoln University Council
was reduced from 19 to 12 members.
Lincoln University Council to 8 December 2015
Back row from left to right: K Fryer, G Harrison, T Harrison-Hunt, E Rogers, T Lambie, J Hay, L Tame, S Matear, B Gemmell, J Wood
Front row from left to right: J Morley (Independent Advisor), B Jordan, C Watson, D Yardley, P Chamberlain, A Hall
Absent: R Boot, A Macfarlane and H Tangiora
Composition of the Lincoln University Council at
8 December 2015
the Council of Trade Unions
Tom Lambie, Chancellor, Appointed by the Council
David Yardley, Appointed by the Council
Anthony Hall, Pro-Chancellor, Appointed by the Council
John Hay, Interim Vice-Chancellor
Royston Boot, Elected by the General Staff
John Wood, Ministerial Appointment
Composition of the Lincoln University Council from
9 December 2015
Peter Chamberlain, Elected by the Court of Convocation
Tom Lambie, Chancellor, Appointed by the Council
Kahlia Fryer, Lincoln University Students’ Association
President, Student Appointment
Anthony Hall, Pro-Chancellor, Appointed by the Council
Bruce Gemmell, Ministerial Appointment
Peter Cook, Elected by the General Staff
Graeme Harrison, Ministerial Appointment
Trisha Harrison-Hunt, Nominated by Te Rūnanga o Ngāi Tahu
Kahlia Fryer, Lincoln University Students’ Association
President, Student Appointment*
Brian Jordan, Elected by the Academic Staff
Bruce Gemmell, Ministerial Appointment
Andrew Macfarlane, Ministerial Appointment
Graeme Harrison, Ministerial Appointment
Sheelagh Matear, Deputy Vice-Chancellor, Academic Quality
& Student Experience, Chair Academic Board
Puamiria Parata-Goodall, Nominated by Te Rūnanga o Ngāi
Tahu
Edward Rogers, Appointed by Council in Consultation with
the Employers’ Federation
Brian Jordan, Elected by the Academic Staff
Linda Tame, Appointed by the Council
Linda Tame, Appointed by the Council
Hiraina Tangiora, Student Appointment
John Wood, Ministerial Appointment
Christin Watson, Appointed by Council in Consultation with
* Replaced by Aimee Kingsbury from 1 January 2016.
John Hay, Interim Vice-Chancellor
Andrew Macfarlane, Ministerial Appointment
Lincoln University Council from 9 December 2015
Left to right: P Cook, L Tame, B Jordan, A Kingsbury (replacing K Fryer from 1 January 2016), G Harrison, J Hay, T Lambie, A Macfarlane,
B Gemmell, J Wood, P Parata-Goodall, A Hall
Composition of the Executive Leadership Team
Lincoln Agritech Limited Board
John Hay, Chair, Interim Vice-Chancellor
Edward Rogers, Chair
Jeremy Baker, Deputy Vice-Chancellor, International and
Business Development
Stefanie Rixecker
Alan Townsend
Hugh Bigsby, Dean, Faculty of Agribusiness and Commerce
Mary Buckley, Director, Human Resources
Lincoln Hospitality Limited Board
Murray Dickson, Group Manager Corporate Services, Deputy
Vice-Chancellor
Martin Eadie, Director, Lincoln-Telford Division
Travis Glare, Director, Bio-Protection Research Centre
Damian Lodge, Director, Learning & Teaching and University
Librarian
Sheelagh Matear, Deputy Vice-Chancellor, Academic
Programmes and Student Experience
Bruce McKenzie, Dean, Faculty of Agriculture and Life
Sciences
Stefanie Rixecker, Deputy Vice-Chancellor, Scholarship and
Research
Greg Ryan, Dean, Faculty of Environment, Society and
Design
John Hay
Andrew Macfarlane
Lincoln University Property Joint Venture Limited
and Lincoln University Property Joint Venture No.2
Limited Boards
Murray Frost
Agri One Limited Board (Lincoln University Directors)
John Hay
Jeremy Baker
Note: all lists are as at 31 December 2015.
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Statement of
Service Performance
The Statement of Service Performance, forming
part of the University’s Annual Report, is a report
against the objectives and performance indicators
outlined in the Lincoln University Investment Plan
2015-2017, compiled in 2014. It is presented in two
parts. The first reports progress on objectives in
the Investment Plan related to Lincoln University’s
contribution to the Tertiary Education Strategy.
These objectives are intended to have a multi-year
timeframe and therefore this report identifies
progress in the first year of the Investment Plan.
The second part of the Statement of Service
Performance provides performance against target
for 2015 across a range of performance indicators
from the Investment Plan. These indicators, set in
2014, also provide some continuity from previous
Investment Plans and reports.
The University has undergone significant changes since
2012 – with the background of the Canterbury earthquakes
of 2010/2011 and the immediate responses the University
put in place to ensure business continuity and focus on its
future directions. From 2013 the University has: reviewed
and modified its qualifications to align more closely with its
land-based specialty; produced a new Strategic Plan based
on a specialised and focussed approach aimed to enhance
Lincoln University’s position as a global centre of excellence
in the land based sector; actively progressed the Lincoln Hub
initiative including the rebuild of its core science buildings;
revamped its marketing approach; completed and is
implementing a Research Strategy and a Whenua Strategy;
and reduced costs in light of the circumstances, and changes
in funding.
Achieving student growth and improving cost effectiveness
is critical in order both to meet the growing capability
requirements of the land-based sectors for more skilled
workers and to create a more sustainable University. Whilst
total EFTS declined slightly in 2015, the negative effect of
the flow-through of smaller cohorts in earlier years postearthquake was ending. Growing new-to-Lincoln enrolments
in 2015 in land-based qualifications showed that the
University’s positioning was effective and well received.
Semester One student numbers in 2016 are positive, with
an overall rise of over 10% in new students from 2015 and
total EFTS up over 5% on 2015, with New Zealand student
enrolments growth against the national demographic trend.
Considerable resources have been devoted to advancing
the Lincoln Hub proposal, in partnership with the three
Crown Research Institutes with existing campuses in
Lincoln (AgResearch, Landcare Research, and Plant & Food
Research), plus DairyNZ. The aim is for an integrated cluster
of collaborative capability in land-based research, education
and technology transfer tasked with contributing to New
Zealand achieving the goal of doubling the value of primary
sector exports by 2025 and with improved environmental
outcomes. This is a component of a total capital injection of
$107.5m announced in 2014 primarily to assist with rebuild
of the University’s science facilities.
The University’s buildings are also undergoing significant
change. A major project in 2015 was the completion of
the demolition of the Hilgendorf building damaged in the
Canterbury earthquakes, freeing up the site for replacement
Lincoln Hub science facilities.
The Workshop student space was created from an old
arts workshop. Maintaining and enhancing the student
experience during the rebuild of the campus is a key
consideration, and this new dedicated social space has
the look and feel to make students feel immediately
comfortable. The facility was opened for Semester One 2016
and is proving popular.
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In 2015, the University continued to rise in the Quacquarelli
Symonds (QS) rankings, with a ranking of 373, compared to
the 411-420 bracket in 2014. The University also sustained
its ranking in the top 100 world universities in the field of
agriculture and forestry.
Lincoln University was ranked number one in the world on
several scores in the 2015 released International Student
Barometer (ISB) survey – a global study that investigates the
decision-making, expectations, perceptions and experiences
of international students.
The following sections cover aspects of Lincoln University’s
contribution to the Tertiary Education Strategy, as set out in
the Investment Plan.
Delivering Skills for Industry
Lincoln University is New Zealand’s only tertiary education
entity that combines land-based research and development
with education and training, and demonstration and
extension from certificate-based qualifications through
diploma, degrees, masters and PhDs. Its capacity to do
this is genuinely unique domestically and, indeed, rare
internationally. It is eminently placed to further raise the
performance of the country’s land-based industries.
Lincoln University has refocused on its land-based
specialisation and reviewed and dramatically reformed its
qualifications programme to support the greater numbers
of skilled and knowledgeable employees required in
the land-based sectors. The University has radically
consolidated and simplified its programmes at the
undergraduate level, and is implementing change of
similar scale for its postgraduate, diploma and certificate
level programmes. This has resulted in a critical shift in
the profile of enrolments to ‘specialised’ programmes
focussed on the land-based sectors. Further, Lincoln has
implemented three common courses which are compulsory
for all undergraduate programmes and all based on the
land-based specialty. The University can now clearly and
unambiguously promote its programmes to the student
market, both within New Zealand and internationally.
Late 2013, Lincoln launched new undergraduate
programmes designed to offer an innovative, coherent
portfolio of qualifications built around its three key domains:
Bachelor of Science – with majors in Agritech, Biosecurity
and Bio-protection, Conservation and Ecology, Food Science,
and Land, Water, Environment, and related specialist
degrees; Bachelor of Agricultural Science, Bachelor of
Agriculture, and Bachelor of Viticulture and Oenology.
Bachelor of Environment and Society – with majors in
GIS and Environmental Informatics, Land and Society,
Māori and Indigenous Environmental Management, Water
Management, and related specialist degrees; Bachelor of
Environmental Management and Planning, Bachelor of
Environmental Policy and Planning, Bachelor of Landscape
Architecture, Bachelor of Sport and Recreation and Bachelor
of Tourism Management.
Bachelor of Commerce – with majors in Accounting and
Finances, Food and Resource Economics, Information
Technology, Marketing and Supply Chain Management, and
related specialist degrees: Bachelor of Agribusiness and
Food Marketing, Bachelor of Commerce (Agriculture) and
Bachelor of Land and Property Management.
Lincoln University has in 2015 substantially completed the
reforms of its entire qualification portfolio.
Together with industry and government, Lincoln will be
able to share its expertise and capability so that the serious
shortfall of land-based sector skills can be addressed. Over
the last three decades, enrolments in subjects critical to
New Zealand’s land-based sectors have not been sufficient
either for industry need, or to enable future financial
sustainability for Lincoln University. In recent years,
however, there has been the beginning of a realisation
across New Zealand of the importance of these sectors to
the New Zealand economy, and thus the start of a shift in
student demand for these programmes.
No other New Zealand university has such a direct link
with the key drivers of the New Zealand economy and its
Business Growth Agenda, nor with the industries that drive
that economy. There is a direct relationship between Lincoln
University, its graduates, and the 70% of New Zealand’s
merchandise exports sourced from the primary industries,
plus Lincoln University’s on-going contributions to mitigate
and minimise environmental effects.
Lincoln University has the support of the land-based sectors
as demonstrated by the formal correspondence in support
in its recent Project Business Case submission and the
Qualification Reform.
In 2014 Lincoln University announced the establishment of
Global Challenge Scholarships. These Scholarships are for
first-year students only. The Global Challenge Scholarships
support a broader Global Challenges Programme that will
trial with selected secondary schools. This Programme
aims to design and prepare material that school teachers
can readily use in curricula associated with achievement
standards, and will complement Lincoln’s successful
distance education programme through Lincoln-Telford
that offers unit standards in agriculture, horticulture and
equine. The Global Challenges Programme will also include
dedicated events and outreach activities to schools.
A programme of strategic approaches to individual
land-based industry businesses with the proposal that
they contribute to the Global Challenges Programme by
themselves funding scholarships has been implemented.
This will add to the pool of the 100 scholarships created
and to date a number of businesses have committed to this
request.
The Global Challenges Programme and associated Global
Challenge Scholarship regime is a significant investment and
action by Lincoln University.
Lincoln University will continue to build on its vertically
integrated programme portfolio and tradition of
educational delivery appropriate for programmes that
prepare graduates for careers in land-based sectors, with
a strong experiential component. Laboratories, field trips,
field tours and other off-campus experiences will continue
to contribute to the attainment of the aim and objectives
of many courses, while workplace experience remains an
integral part of academic programmes.
Getting At Risk Young People into
a Career
Lincoln University seeks to contribute to the Government
priority of attracting and engaging at risk young people
primarily through its Lincoln-Telford delivery.
The Lincoln-Telford Division offers vocational (certificates
and diplomas) courses in agriculture, horticulture, forestry,
apiculture (bee), equine and rural fire and safety skills, both
at the Telford campus in Balclutha and, for the majority
of delivery, providing a distributed delivery network
throughout New Zealand. Study of these Lincoln-Telford
qualifications is delivered through a mixture of face-to-face
and qualifications by correspondence.
Lincoln-Telford delivers a focussed portfolio of qualifications
for the primary sector. It is a rationalisation of qualifications
with clear pathway and stair-casing relationships between
qualifications. The division also establishes a new set of
delivery relationships with a small number of
specialised partners.
The merger of Lincoln University and Telford Rural
Polytechnic in 2011 is serving the needs of the primary
sector for high quality graduates at all levels of the New
Zealand Qualification Framework (NZQF), with the delivery
profile changing dramatically since it became part of Lincoln
University – both as a result of revised strategic direction,
but also due to the very significant funding changes by the
TEC (for Levels 1 and 2 in particular). A commendation on
implementation of the merger was given in the 2012 Cycle 4
Academic Audit of Lincoln University.
New approaches to Lincoln from ‘elite’ training farms
(Smedley, Mendip Hills, Waipoa), and other tertiary
organisations (Aoraki Polytechnic, Te Wānanga o Aotearoa)
have established new delivery partnerships. These
organisations are choosing to align with Lincoln University
qualifications.
There is increased interest from and engagement with
schools and trades academies to deliver primary industry
courses via broadcast and face-to-face. The Lincoln-Telford
Division worked with 166 schools in 2013, a twofold increase
from 70-80 schools in 2010. With integration between NCEA
achievement standards and unit standards, Lincoln-Telford
has enabled students to attain credits towards a vocational
pathway, thereby qualifying them into Level 3 training
following departing secondary school.
A new Level 3 Certificate in Farming (Dairy) and a new
suite of Equine qualifications at levels 3 and 4 have been
introduced onto the NZQF, and the Certificate in Farming
(Dairy) provides a clear demonstration of how the University
is using its research in pastures, nutrient management and
human resources to shape workforce entry qualifications.
The Hon Bill English, Deputy Prime Minister, 'cut the ribbon'
on the Fibre Optic Installation at Lincoln-Telford’s Balclutha
campus in 2014. The fibre optic investment will allow the
University to transition its schools delivery onto a digital
platform to better support schools in delivering the
primary industries vocational pathway through the Network
for Learning (N4L). This infrastructure will also allow other
Lincoln University content to be made available for
schools, consistent with the University’s position as an open
access university.
There has been strong demand on the Telford campus for
residential programmes with 2014 enrolments being the
highest experienced in the history of Telford.
Lincoln University has formalised a collaboration between
Northland College at Kaikohe and Lincoln University,
primarily through Lincoln-Telford. At the centre of this
collaboration lies the Five Year Strategic Plan, designed
to formalise the strategy for optimising the farming and
educational opportunities from the neighbouring Northland
College Farm.
Lincoln University has been delivering NCEA Level 2 and 3
programmes to Northland College students for some time
via distance learning through Lincoln-Telford. However,
the relationship has since expanded to include a Farms
Committee, responsible for transforming the fortunes of
the dilapidated Northland College Farm. The goal is to make
it functional, high-performing and profitable, as well as an
advanced educational resource providing students with
valuable primary-sector skills conducive for securing longterm, meaningful employment in the land-based industries.
Since the expanded relationship with the University
(together with other school initiatives), student numbers
have increased by 10 percent and truancy has halved. It is
believed that improving these statistics will not just advance
the fortunes of the school, but particularly the young people
of the region as well – and therefore the regional economy.
In 2015 the University also announced a new strategic joint
venture with the New Māori Trustee (Te Tumu Paeroa) for
delivery primarily through the Lincoln-Telford Division.
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Boosting Achievement of Māori
and Pasifika
Māori are currently a large contributor to the land-based
sectors and there is potential to deliver significantly more.
Collectively Māori own over 1.5m ha of land. It is estimated
that only 20% of Māori freehold land is fully-utilised for
agricultural purposes, leaving 1.2m ha with potential for
development.1 Farm management, farming skills, access to
professionals and technical advice are limiting factors.
“… the ability to give effect to those [plans] are often
limited by available farm management and farm skills
and access to skilled professional and technical advice.”2
The tangible benefits from introducing more Māori freehold
land into production include realising an additional
nominal $8b in gross output and $3.7b in value added above
MPI baseline pastoral sector forecasts between 2013 and
2022. To achieve this return just under $3b would need to
be invested.3
Significant engagement with iwi and Māori commercial
companies as well as Pacific communities in New Zealand
and the Pacific Islands is a key strategy in our 2014 – 2018
Strategic Plan. Our teaching and research specialisations
in land and resource based production linked to sound
social, economic and environmental outcomes, provide
critical opportunities for many of these communities. The
University mechanisms to drive this engagement forward
are the Whenua Māori Strategy (approved in 2013) and
the Motu Pacific Strategy (due for approval in 2016). Both
strategies aim to better align our specialisations with Māori
and Pacific development aspirations.
To ensure the maximum performance and growth of Māoriowned land-based assets, more trained and skilled thought
leaders are needed. This will require higher participation
rates of Māori in degree and postgraduate degree level
programmes but also the creation of pathways from predegree to higher levels to improve uptake.
The Whenua Strategy has nine key pillars or focus areas
to underpin its contribution to the transformation of Māori
people and communities around the land-based industries
and aligned sectors. These are:
• Whenua Rangatira: To guide the development and
implementation of strategic relationships with Iwi and
Māori for education, training, research, professional
development and commercial engagement.
• Whenua Whanui: To guide decision-making and projects
for regional delivery of Lincoln-Telford academic
programmes (i.e. land based certificates and diplomas)
and study pathways to higher level learning for Māori.
• Whenua Whakatairanga: To ensure relevant
communication, marketing and branding to engage the
Māori community.
• Whenua Tauhere: To drive the engagement with
Māori commercial partners around key commercial,
technological, and professional activities.
• Whenua Whakaturia: To improve processes leading to
increased Māori responsiveness within the institution, and
build Māori staff capability.
• Whenua Rangahau: To define Māori research outcomes
across the University so as to facilitate Māori responsive
research and build Māori research capacity and capability.
• Whenua Whakanui: To develop learning spaces and
physical environments more welcoming to Māori students
and Māori communities.
• Whenua Arotake Akoranga: To develop academic
programmes at all levels – pre degree, undergraduate
and postgraduate while accommodating kaupapa Māori
pedagogy, content, delivery and appropriate pathways.
• Whenua Tu Tangata: To enhance Māori student experience
and achievement through good support systems for
learning, pastoral care and cultural affirmation leading to
improved retention and quality of learning.
Under this rubric the University already has significant
teaching and research relationships with Ngāi Tahu
(Whenua Kura), Te Rarawa and Ngapuhi, Ngati Apa, and Te
Runanganui o Ngati Porou (through Te Toka) with strong
1. Ministry of Agriculture and Forestry (2011), Māori Agribusiness in New Zealand: A Study of the Māori Freehold Land Resource.
2. Ministry of Agriculture and Forestry (2011), Māori Agribusiness in New Zealand: A Study of the Māori Freehold Land Resource, page 14.
3. Appendix 45: Ministry For Primary Industries (2013), Growing the Productive Base of Māori Freehold Land.
interest being shown from many other Iwi, Māori land
Trusts and Pan Tribal organisations and entities throughout
the country.
In late 2015 the University also announced a new joint
venture with the New Māori Trustee (Te Tumu Paeroa) for
delivery through the Lincoln-Telford Division. This is a
new strategic opportunity to enhance tertiary education
for Māori.
Similarly, the Motu Strategy is being developed around
six key pillars or focus areas, again to contribute to the
transformation of Pacific people and communities around
the land-based industries, aligned sectors and other areas
of Pacific social and economic advancement - both in New
Zealand and the wider Pacific. These include:
• Motu Pacific Leadership: To support the training of the
next generation of Pacific thought leaders across the land
and resource based sector, and other areas of social and
economic advancement linked to Lincoln University's
specialisations.
• Motu Pacific Community Engagement: To guide
the development and implementation of strategic
relationships with Pacific entities, organisations and
communities for education, training, research, and
professional development.
• Motu Pacific Research Excellence: To define Pacific
research needs and opportunities across the University
and facilitate Pacific responsive research, while building
Pacific research capacity and capability.
• Motu Pacific Student Access and Success: To improve
Pacific student access and success through coherent
academic pathways, adequate stair-casing from predegree qualifications to degree level study, coupled with
culturally appropriate pastoral care and academic support.
• Motu Pacific Programmes and Curricula: To work
with Pacific communities to identify programme and
curriculum needs and opportunities to advance their
social, economic, environmental and associated interests.
Under this rubric, the University has already established
teaching and research relationships with various
organisations and entities in Papua New Guinea. The aim is
to extend this approach across other Pacific nations while at
the same time providing an explicit focus on engagement
with domestic Pacific communities – particularly in the
North Island in the biological primary industries, tourism,
sport and recreation, landscape and urban environments,
nature conservation, and food science linked to improved
health outcomes.
Improving Adult Literacy and
Numeracy
Literacy and numeracy provision in Student Achievement
Component funded provision at Lincoln is confined to
the sub-degree Lincoln-Telford portfolio of programmes.
It is intended, by the end of the period covered by this
Investment Plan, that targeted learners in all Levels 2-3
programmes in this portfolio will show gains in literacy
and numeracy commensurate with the demands of the
programmes they are enrolled in and, where possible, gain
literacy and numeracy credits (via Literacy and Numeracy
Unit standards) towards NCEA, Level 2. In addition,
in selected Level 4 programmes (where stair-casing
opportunities requiring university entrance exist) English
for Academic Purposes Unit Standards and Numeracy Unit
Standards will be available to learners.
We are currently updating the Literacy and Numeracy policy
so that it incorporates the additional requirements of the
sub-degree portfolio of programmes.
Currently the Lincoln-Telford Division is using the
Assessment Tool (Reading strand only) consistently for
all on campus delivery. Learners who test at steps 1-3
are encouraged to complete an individualised reading
programme. Learners who have completed this programme
have shown gains. We are currently bedding in processes
to use the Assessment Tool (Reading or Numeracy) with
Delivery Partners and Correspondence learners in order
to meet TEC targets for assessment tool usage across all
delivery modes.
Once ascertained, information about the literacy and
numeracy demands of each Level 2-3 programme will
be incorporated into learning outcomes, used to inform
teaching and learning decisions (including the development
of individualised learning plans), and included as pre-entry
information in our marketing collateral.
At present literacy and numeracy provision is mainly
delivered by specialists separately from our mainstream
teaching. As more of our vocational staff (including delivery
partner staff) and course material writers are NCALE (VOC)
trained or attend professional development in embedding
practices course material will be embedded as programmes
and courses are reviewed. The initial iteration will be
completed in conjunction with our portfolio review by
mid-2016.
21
22
Strengthening Research-Based
Institutions
Lincoln University has a distinctive research profile,
reflecting its specialist, land-based orientation. Overall,
Lincoln University’s research revenue per academic FTE
is the highest amongst New Zealand’s universities. This
in turn means that a key feature of Lincoln University’s
distinctive pedagogy is that its students (undergraduate
and postgraduate) are learning in a research-intensive
environment.
Lincoln University’s research is focussed on the land-based
sectors and delivered across the University’s faculties and
disciplines. The majority of externally generated research
revenue has been secured through the Agriculture and Life
Sciences Faculty (AGLS) and the Bio-Protection Research
Centre (Centre of Research Excellence), both of which occupy
the facilities most affected by the Canterbury earthquakes.
Lincoln University’s farming assets are also an integral, and
unique, part of the Lincoln research programme. That land
will be a key driver for the Lincoln Hub.
Research (including scholarship, externally-funded contract
research, commercially funded technology and product
development) is a critical component of Lincoln University’s
overall activity. It is a vital dimension of the University’s
learning environment and central to the relevance and
value of the University to the land-based industries to which
it is aligned.
Consistent with its recent and wide-ranging change
programme, in early 2014, Lincoln University completed
Research for Lincoln, A Research Strategy: 2014-2018. The
research strategy is consistent with Lincoln’s overall
Strategic Plan – launched in 2013 – and specifically seeks to:
amplify the connectedness with Industry and commercial
entities, features the development of a Postgraduate
School with Lincoln Hub Partners, and provides a platform
to develop focussed Research Themes aligned to the
University’s Strategic Plan.
It is envisaged that implementation of the Research for
Lincoln Strategy will improve the quality and quantity of
research outputs by progressing the following
strategic objectives:
• Strengthen and sustain a foundation of disciplinary
excellence – to improve the University’s scores in the next
PBRF assessment.
• Develop and promote thematic priorities – to strengthen
stakeholder engagement.
• Nurture emerging researchers and teams – to build
new capability to underpin future research performance
and impact.
• Build clusters of interdisciplinary excellence – to establish
a track record and external reputation.
• Develop and strengthen strategic research partnerships –
to increase external research revenue.
• Reform research support structures and functions – to
establish fit for purpose research support functions,
structures and mechanisms.
With the arrival of the Lincoln Hub and the opportunity
for strengthened partnerships, we expect to establish or,
in some cases, strengthen already existing relationships,
to enhance the University’s professional and successful
research culture. The expected knowledge exchange with
our Hub partners, and collaboration with national and
international stakeholders, is expected to result in greater
teamwork and research specialisation and create a stronger
and more viable knowledge base. The resulting research
outputs will enhance Lincoln University’s reputation
and lift the performance capability of all participants to
produce a more highly skilled workforce and to help fill
the current capability gap nationally. It is expected that
an improvement in social, economic and environmental
outcomes will follow.
The benefits of the Lincoln Hub will include:
• Greater capacity for improved, more industry-relevant,
land-based education and training at all levels, including
postgraduate;
• Stronger and more collaborative land-based research
and development, including enhanced pathways to
commercialisation;
• Stronger demonstration, extension and technology
transfer to industry;
• Greater numbers of better skilled employees in New
Zealand’s land-based sector, enabling the growth in
productivity of that sector.
The 'Research for Lincoln' research strategy also contains
a number of objectives which build on this strength and
the relationships developed in the commercialisation and
innovation ecosystem. The specific objectives related to
this include:
• Develop and strengthen strategic research partnerships
and
• Reform research support structures and functions.
Actions associated with these objectives include the
renaming of the former Research and Commercialisation
Office to Lincoln Research and Innovation, to reflect its move
away from a largely administrative function to supporting
the whole innovation system. New positions and structures
targeted at supporting knowledge transfer, improved
commercialisation and better relationships with commercial
entities in growth industries have been implemented,
including the creation of a new position 'Research Manager
– New Funds and Innovation' and the alignment of the
University’s Business Development Managers to the
Research and Innovation team.
Lincoln University actively participated in the National
Science Challenges planning processes, playing a highly
active role in the three Challenges most closely aligned
to our land-based focus and New Zealand’s primary and
manufacturing industries, namely, 'Our Land and Water';
'New Zealand’s Biological Heritage' and 'Science for
Technological Innovation'.
Future plans include building profiles for key industry
groups, highlighting their research interests and
opportunities for Lincoln University to meet these, together
with developing plans for enhanced engagement.
Growing International Linkages
Lincoln University continues to grow strong international
linkages, reflecting growing global awareness of Lincoln
as an attractive, reputable and highly relevant academic
destination. This has a strong proven base including nearly
30% of students at the Lincoln Te Waihora campus in 2013
being international students.
International markets are a key component of Lincoln’s
marketing plans, with the strategic growth of international
linkages and international student enrolment critical to
Lincoln’s ability to deliver on its mission.
During 2015, Lincoln University enrolled international
students from 67 different countries.
Lincoln is the only university in New Zealand to be invited
to become an International Observer Partner of the
EuroLeague for Life Sciences (ELLS). This is a prestigious
network of seven leading agricultural, life sciences and
natural resources institutions in the European Union. Just
four universities have been invited to join the League from
the rest of the world: Cornell University in the USA, China
Agricultural University, Hebrew University of Jerusalem and
Lincoln University. Membership of the ELLS Network offers
promotional and brand benefits and will open opportunities
for bilateral collaboration with ELLS member institutions.
During 2013, Lincoln University also signed Memoranda of
Understanding with a number of overseas institutions in
order to foster collaborative opportunities, such as joint
research and student exchanges. These institutions include:
• China Agricultural University, Guangdong Ocean
University and Henan Agriculture University in China.
• The Indian Institute of Management.
• Institute Pertinian Bagor (IPB) (Bogor Agricultural
University) in Indonesia.
• Kasetsart Univeristy and Maejo University in Thailand.
International rankings, as well as its existing global
recognition, are key aspects for Lincoln.
Lincoln University is ranked in the top 400 by Quacquarelli
Symonds (QS) and in the top 100 in the field of agriculture
and forestry. Lincoln is now recognised as sitting in the top
five percent of world universities and the top 14 percent of
those ranked.
Lincoln’s focus on addressing some of the world’s critical
challenges had led to its knowledge and approach being
called on to support key developments in the global
management of land, food and water. This focus enables
Lincoln to continue to cultivate and grow institutional
relationships which support research and student pathways.
23
24
Performance Commitments
Note: The reported results for student related targets of course completion, qualification completion, progression and retention
are based on information currently available. The final TEC confirmed figures will not be available until mid-2016.
Performance Commitments for
Lincoln University – Levels 4 and Above
SAC Eligible EFTS:
2013
Actual
%
2014
Actual
%
2015
Actual
%
2015
Forecast
%
54.0
60.8
61.9
55.0
Participation
Under 25
The proportion of EFTS who are:
Māori
Pasifika
Level 4 and above
Level 8 and above
3.1
4.1
4.6
3.0
Level 4 and above
4.4
5.0
5.9
5.0
Level 8 and above
0.3
0.3
0.3
0.5
Level 4 and above
0.9
1.0
0.8
1.0
Level 8 and above
0.1
0.1
0.1
0.1
Level 4 and above
86.5
87.5
88.4
87.0
Level 8 and above
93.7
94.5
95.3
90.0
Level 4 and above
87.0
88.1
88.7
88.0
Level 8 and above
94.7
98.8
97.6
90.0
Level 4 and above
76.5
78.2
82.0
80.0
Level 8 and above
83.9
74.2
94.0
75.0
Level 4 and above
62.1
68.9
71.8
65.0
Level 8 and above
n/a
100.0
66.7
50.0
Educational performance
Course completion
All students
Under 25
The successful course completion
rates for:
Māori
Pasifika
Qualification completion
Level 4 and above
88.1
90.7
86.5
80.0
Level 8 and above
137.7
108.7
102.5
85.0
Level 4 and above
73.9
80.3
81.3
72.0
Level 8 and above
132.0
119.9
130.2
90.0
Level 4 and above
85.3
60.3
64.4
60.0
Level 8 and above
163.9
134.8
96.6
60.0
Level 4 and above
20.7
75.3
110.3
50.0
Level 8 and above
211.8
139.5
184.6
75.0
All students
Level 3 and above
65.1
64.6
57.3
60.0
Māori
Level 3 and above
51.6
43.8
38.0
50.0
Pasifika
Level 3 and above
48.8
40.0
41.1
45.0
25.1
23.2
28.7
20.0
26.1
28.2
22.0
20.0
23.3
23.5
44.4
20.0
All students
Under 25
The qualification completion
rate for:
Māori
Pasifika
Student retention
The student retention rate for:
Student progression
All students
The student progression rate from
Levels 1 - 3 to a higher level for:
Māori
Pasifika
Levels 1 - 3, to a higher level
Participation rate increase of under 25 years by 6.9 percent
over target can be attributed to the increase in new to
Lincoln domestic EFTS in 2015, and the slower decline in
cohort EFTS from previous years.
Student retention rate for Māori is below forecast; the
majority of these students are enrolled in qualifications at
the Levels 3 – 6 (Certificates and Diplomas). Focusing on
ensuring that these students complete their qualification
will assist in improving the retention rate of these students.
Student progression 2015 result is derived from the draft
TEC EPI results and is subject to change. However, this is
indicating an improved progression rate for students at this
level which is a positive sign for future skills enhancement.
Performance Commitments for
Lincoln University – Levels 1 and 2
SAC Eligible EFTS:
2013
Actual
%
2014
Actual
%
2015
Actual
%
2015
Forecast
%
Participation
The proportion of EFTS who are:
Under 25
Levels 1 and 2
6.3
2.3
2.0
6.0
Māori
Levels 1 and 2
2.6
0.6
0.6
3.0
Pasifika
Levels 1 and 2
0.4
0.1
0.0
0.3
All students
Levels 1 and 2
78.7
75.8
81.1
78.0
All students
Levels 1 and 2
46.8
64.7
70.9
60.0
All students
Levels 1 and 2
45.6
38.0
62.1
50.0
All students
Levels 1 and 2 to a higher
level
23.1
22.0
39.0
25.0
2013
Actual
2014
Actual
2015
Actual
2015
Forecast
Educational performance
Course completion
The successful course completion
rate for:
Qualification completion
The qualification completion rate
for:
Student retention
The student retention rate for:
Student progression
The student progression rate from
Levels 1 and 2 to a higher level for:
The Level 1 and 2 cohort has declined by over 50% since
2013 due to funding changes, consequently impacting on
the participation rates.
Student Progression 2015 result is derived from the draft
TEC EPI results and is subject to change. However, this is
indicating an improved progression rate for students at this
level which is a positive sign for future skills enhancement.
Performance Commitments for Lincoln
University – Other Commitments
The number of international student EFTS
(excluding SAC funded EFTS)
All students
All levels
549.6
532.6
564.9
551
The amount of external income earned
(University only) $000
All students
All levels
$23,663
$22,622
$21,006
$22,397
The number of research degrees completed
All students
All levels
105
72
71
78
PBRF-Participants only
Growth in international numbers following a targeted
marketing and recruitment strategy.
Variances in expected completion times have impacted on
the number of research degrees completed. Monitoring has
been established to allow for more specific planning.
25
26
Financial Performance
Detailed explanation of the financial performance of the University can be found in the Financial Statements and the Notes to
the Financial Statements. The following table summarises key measures of financial performance.
Financial Performance
2015 Full Year
Target
$000
2015 Full Year
Actual
$000
2014 Full Year
Actual
$000
2013 Full Year
Actual
$000
2012 Full Year
Actual
$000
98,572
129,012
102,059
106,386
102,921
Financial performance and position
University revenue
University expenditure
103,225
109,939
105,361
105,148
108,290
University surplus/(deficit)
(4,653)
19,073
(3,302)
1,238
(5,369)
Group revenue
119,081
140,206
115,616
122,189
116,285
Group expenditure
121,482
122,356
117,286
118,625
119,686
Group surplus/(deficit)
(2,401)
17,850
(1,670)
3,564
(3,401)
Group current assets
33,461
64,804
53,699
44,116
44,767
Group non-current assets
232,326
195,052
191,170
215,920
205,245
Group total assets
265,787
259,856
244,869
260,036
250,012
Group term liabilities
12,874
13,213
13,117
6,053
6,446
Group current liabilities
27,726
32,703
35,650
30,585
32,421
Group total liabilities
40,600
45,916
48,767
36,638
38,867
Group equity
225,187
213,940
196,102
223,398
211,145
-2.2%
12.7%
-1.4%
2.9%
-2.9%
2.1%
27.5%
14.1%
12.7%
14.1%
56.5%
82.2%
67.3%
62.5%
65.2%
-0.9%
6.9%
-0.7%
1.4%
-1.4%
Group financial ratios
- Surplus/(deficit) as % revenue
Surplus(deficit)/revenue %
- Cash cover
Cash/total operating cash inflows %
- Asset productivity
Revenue/property, plant & equipment %
- Return on total assets
Surplus(deficit)/total assets %
27
28
in Education and
Employment
Lincoln University is committed to a policy of equal
opportunity in the provision of education and employment.
The University seeks to provide equal access and
encouragement to prospective and existing students
and staff in areas of recruitment, enrolment, selection,
promotion, conditions of employment and career
development. The aim is to enable people to pursue their
educational and professional careers without being limited
by factors that are irrelevant to career aspirations.
Lincoln University’s Equal Opportunity policy seeks to:
• Provide equal access and encouragement for
staff recruitment, selection, promotion and career
development, regardless of race, gender, marital or
parental status, age, religious or political belief, country of
origin, disability or sexual orientation;
• Ensure the University complies with sections 77A and
77D of the State Sector Act 1988 and section 220 of the
Education Act 1989 by maintaining and developing equal
employment opportunities policies and programmes;
• Enhance the participation and support the progress of
disadvantaged students or students from community
groups that are traditionally under-represented in the
student body;
• Ensure the University provides equal access and
encouragement to students regardless of race, gender,
marital or parental status, age, religious or political belief,
country of origin, disability or sexual orientation;
• Ensure the University identifies and develops strategies
to overcome institutional barriers affecting equal access
and employment; and
• Monitor the progress towards realising equal
opportunity goals.
Access to Education
• Diploma in University Studies and Certificate of University
Studies – The University Studies and Preparation
programmes provide a pathway into the University for
students without a university entrance qualification.
These students undertake the Skills for Success
programme designed to target learning and study skills.
The programmes also provide opportunities for students
to improve their confidence before progressing to
undergraduate study.
• English language programmes – Courses in Academic
English are available for students who need to meet the
English Language entry requirements for pre-degree,
undergraduate or postgraduate study.
• Open entry – Lincoln University operates a 100% open
entry policy for all students who meet academic entry
requirements.
• Financial support – The University provides funds for
student scholarships and also administers applications
and payments on behalf of external scholarship providers.
The University makes monetary grants to students in
hardship through the Student Hardship Fund.
Educational and Pastoral Support
• Academic study skills courses and advice – Workshops,
written and multi-media material covering study skills
and general academic advice are provided for students
wanting to improve their performance. One-on-one advice
and assistance is also available.
• Physical and mental health – Professionals are available
on campus to provide assistance and advice to students.
• Inclusive education – Support and assistance is provided
to students with long-term and short-term impairments,
injuries or illnesses. Support services include reader/
writer support, note taking, typing, transcription,
alternative examination arrangements, support with field
trips, personal care, provision of specialist equipment and
advocacy.
• Māori students – Support services for Māori students
are in place, including a designated social and study
space in the University whare. Kaupapa Māori Units
have also been established in each of the three Faculties
to facilitate Māori capacity building in interdisciplinary
curriculum development, research, student support,
improved progression to postgraduate study and staff
development.
• Pacific Island students – Support approaches for Pacific
Island students are in place.
• International students – The University has support
services and strategies in place consistent with the Code
of Practice for Pastoral Care of International Students.
• Scholarships – Lincoln University has a wide range
of scholarship support available to students at both
postgraduate and undergraduate level. Postgraduate
scholarships offered are the Lincoln University Doctoral
Scholarship and the Lincoln University Graduate
Scholarship. Both scholarships cover tuition fees and
a stipend. The three main undergraduate scholarships
offered by Lincoln University are the Sports Scholarship,
the Future Leaders Scholarship and the Global
Challenge Scholarship, which cover tuition fees along
with either sports or leadership development. Lincoln
University also offers some scholarship support for
international students.
• Lincoln-Telford campus - students in the Lincoln-Telford
Division of the University are provided with dedicated
Learning Support staff, mechanisms, software and tools.
• Academic open door policy – Academic staff are
encouraged to have an ‘open door’ for students during
term time and immediately prior to examinations.
• Harassment – Ethical Behaviour policies and procedures
are in place to discourage and remedy harassment by
both students and staff.
• Childcare facilities – Childcare at the University is
provided through two childcare centres on site. The
University subsidise the cost of this service for staff and
student parents.
Equal Employment Opportunity
Lincoln University maintains an equal employment
opportunity programme. Specific activities and approaches
undertaken as part of that programme during 2015 included
the following:
• Information on Equal Opportunities is provided to all new
staff through orientation and induction programmes.
• Lincoln University provides equal opportunity to all
employees and prospective employees without regard to
race, colour, sex, religion, age, marital status, disability,
veteran status or national origin in the following
employment practices: recruitment; hiring; placement;
transfer; promotion; selection for training; redundancy;
termination; determination of service; rate of pay; benefit
plans; compensation; and other personnel actions.
• The University’s annual performance appraisal, salary
and promotion processes ensure all managers and
employees participate in the performance appraisal/
development process.
• There are many flexible work arrangements in place to
assist staff to balance their work with the other important
things in their lives, for example: caring for children or
older parents; working in the community; playing sport.
These arrangements are beneficial for the University in
terms of attracting and retaining staff, as they are for
the employee. These flexible work arrangements are in
line with the Employment Relations (Flexible Working
Arrangements) Amendment Act 2007 and include
providing staff with the opportunity to make changes
where practicable to the number of hours worked, time of
work or place of work.
• Lincoln University’s Parental Leave Policy contains
provisions more favourable than the legislated minimum.
For example, the policy allows staff to take shorter
periods of leave over a longer period of time and
encompasses a longer period of paid leave than the
statutory provision. This provision, in conjunction with
flexible work arrangements, has encouraged a more
family-friendly approach.
• The Employee Assistance Programme (EAP) continued in
2015, providing confidential, short term counselling at no
cost to the individual. The programme continues to
be promoted and used widely by staff and their
immediate family members. The trends and usage of
EAP services are monitored on a regular basis, and
managers are well aware of, and monitoring, their staff’s
individual circumstances.
• The Deputy Vice-Chancellor, Communities chaired the
University Ethical Behaviour Committee in 2015 which
comprises the Ethical Behaviour Co-ordinator, a University
Students’ Association representative, a Tertiary Education
Union representative and other delegates. The Ethical
Behaviour Committee is responsible for reviewing the
Ethical Behaviour Policy, considering quarterly reports
and recommendations in relation to harassment
prevention, and agreeing a course of action based on
those recommended strategies. The Committee also
ensures the Ethical Behaviour Policy and Procedures
comply with the University’s obligations under the Treaty
of Waitangi.
• The University continued to show support for the New
Zealand Women in Leadership Programme by enabling
four staff members to attend the 5 day programme in
June and August 2015.
• Good equal employment opportunities are promoted
through Human Resources to managers to:
- Remove barriers so all staff have the chance to perform
to their best
- Ensure fair treatment of everyone who is employed
- Ensure they get the best person or team on the job
- Motivate staff to be loyal and committed to Lincoln
University
- Promote understanding between their staff, supporting
a stronger and more focussed team.
29
30
Group Financial
Statements
31
32
Lincoln University Group
Group Statement of Comprehensive Revenue and Expense
For the Year Ended 31 December 2015
Group
University
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
29,090
29,329
28,331
29,090
29,329
28,331
Tertiary Education Commission PBRF funding
9,753
9,830
9,140
9,753
9,830
9,140
Domestic tuition fees
8,973
8,759
8,997
8,973
8,759
8,997
International tuition fees
12,448
11,964
11,188
12,448
11,964
11,188
Research contracts
24,640
24,703
28,324
22,357
21,006
22,622
Trading revenue
27,422
24,412
25,259
14,313
15,723
19,408
Revenue
Notes
Tertiary Education Commission grants
Grants from subsidiaries
17
0
0
0
0
3,000
0
790
656
1,299
790
656
1,299
2
113,116
109,653
112,538
97,724
100,267
100,985
Personnel expenses
6
59,917
63,284
65,110
51,366
55,119
57,306
Operating expenses
3
47,591
45,299
43,379
41,698
41,301
39,415
Depreciation
11
9,005
7,315
7,515
8,816
7,140
7,382
Amortisation of intangible assets
13
382
476
469
362
452
445
Trusts/scholarships revenue
Total revenue
Expenditure
Trusts/scholarships expenses
975
951
1,066
975
951
1,066
Total expenditure
117,870
117,325
117,539
103,217
104,963
105,614
Results from operating activities
(4,754)
(7,672)
(5,001)
(5,493)
(4,696)
(4,629)
939
1,482
1,576
848
1,079
1,074
(6)
(6)
(13)
(6)
(6)
(13)
Investment revenue
2
Interest expense
Gain (loss) on disposal of fixed assets
(2)
7
2,170
(2)
7
2,170
1,422
1,405
1,502
0
0
0
Gain (loss) in the fair value of livestock
0
(562)
(439)
0
(562)
(439)
Gain (loss) arising from movements in
exchange rates
0
232
95
0
232
95
Share of associate's surplus/(deficit)
0
(55)
0
0
0
0
(2,401)
(5,169)
(110)
(4,653)
(3,946)
(1,742)
0
27,427
0
0
27,427
0
Gain on sale of land
Surplus/(deficit) for the year before the
impact of the earthquakes
Financial impact of the earthquakes and the Hub project
Insurance recoveries
29
Building demolition expenses
0
(1,961)
0
0
(1,961)
0
Hub project expenses
0
(1,436)
0
0
(1,436)
0
Earthquake costs
0
(1,011)
(1,560)
0
(1,011)
(1,560)
(2,401)
17,850
(1,670)
(4,653)
19,073
(3,302)
0
0
(34,869)
0
0
(34,869)
Investment revaluations
0
(19)
63
0
(19)
63
Fixed asset revaluations
0
0
0
0
0
0
(2,401)
17,831
(36,476)
(4,653)
19,054
(38,108)
Surplus/(deficit) for the year after impact of
earthquakes
Other comprehensive revenue and expense
Impairment of buildings
Total comprehensive revenue and expense for
the year
11
The financial statements are to be read in conjunction with the accompanying notes.
33
Group Statement of Changes in Equity
Accumulated
Funds
$000
Asset
Revaluation
Reserves
$000
Fair Value
Through Other
Comprehensive
Revenue
and Expense
Reserves $000
Balance at 1 January 2014
88,205
117,238
935
17,019
Surplus/(deficit) 2014
(4,498)
0
0
2,828
(1,670)
0
(34,869)
63
0
(34,806)
(4,498)
(34,869)
63
2,828
(36,476)
Revaluation reserves transferred on disposal of
fixed assets
1,335
(1,335)
0
0
0
Capital contributions from Crown
7,500
0
0
0
7,500
Revaluation Lincoln Westoe Trust
0
1,681
0
0
1,681
Balance at 31 December 2014
92,542
82,715
998
19,847
196,102
17,850
0
0
0
17,850
0
0
(19)
0
(19)
17,850
0
(19)
0
17,831
Share of surplus/(deficit) to trusts
(205)
0
0
205
0
0
8
0
0
8
110,185
82,723
979
20,053
213,940
Accumulated
Funds
$000
Asset
Revaluation
Reserves
$000
Fair Value
Through Other
Comprehensive
Revenue
and Expense
Reserves $000
Trusts
$000
Total
Equity
$000
81,254
117,238
935
16,570
215,997
(6,110)
0
0
2,808
(3,302)
0
(34,869)
63
0
(34,806)
(6,110)
(34,869)
63
2,808
(38,108)
fixed assets
1,335
(1,335)
0
0
0
Capital contributions from Crown
7,500
0
0
0
7,500
623
0
0
0
623
84,602
81,034
998
19,378
186,012
19,073
0
0
0
19,073
0
0
(19)
0
(19)
19,073
0
(19)
0
19,054
Consolidated equity
Notes
2014
Trusts
$000
Total
Equity
$000
223,397
Non comprehensive items:
Total comprehensive revenue and expense for 2015
Parent equity
16
Notes
Non comprehensive items:
FarmSafe equity introduced
16
(185)
0
0
185
0
103,490
81,034
979
19,563
205,066
34
Group Statement of Financial Position
As at 31 December 2015
Group
Assets
Current assets
Cash and bank accounts
University
Notes
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
19
(1,664)
29,610
5,235
(5,332)
26,932
2,502
Short term bank deposits
19
3,000
0
1,500
0
0
0
Bank deposits for over 90 days
19
1,000
0
8,505
0
0
7,205
Trust term deposits
19
15,661
15,659
15,277
15,238
15,174
14,817
Trade and other receivables
7
8,577
13,327
16,225
21,319
26,155
29,478
1,879
2,694
2,466
1,741
2,384
2,120
Prepaid expenses
Agricultural assets
14
4,000
2,342
3,586
4,000
2,342
3,586
Inventories
8
1,008
1,172
905
900
1,057
811
33,461
64,804
53,699
37,866
74,044
60,519
Total current assets
Non-current assets
Investments
10
2,247
2,297
2,316
2,656
2,706
2,724
Inventory – land held for sale
9
13,977
14,411
13,595
0
0
0
Intangible assets
13
768
1,797
762
636
1,465
628
Property, plant and equipment
11
210,934
170,513
171,893
201,214
160,169
161,808
Assets under construction
12
4,400
6,034
2,604
4,400
6,034
2,604
Total non-current assets
232,326
195,052
191,170
208,906
170,374
167,764
Total assets
265,787
259,856
244,869
246,772
244,418
228,283
Liabilities
Long term liabilities
Employee entitlements
15
5,055
5,397
5,279
4,649
4,885
5,023
Finance lease
23
0
0
22
0
0
22
Loans and borrowings
25
Total long term liabilities
7,819
7,816
7,816
0
0
0
12,874
13,213
13,117
4,649
4,885
5,045
Current liabilities
25
0
213
106
0
0
0
Trade and other payables
15
12,448
16,480
17,620
15,428
19,410
20,566
11,693
11,376
13,771
10,761
10,832
13,017
Revenue in advance
Employee liabilities
15
3,563
4,612
4,071
3,162
4,203
3,561
Finance lease
23
22
22
82
22
22
82
27,726
32,703
35,650
29,373
34,467
37,226
Total current liabilities
Total liabilities
40,600
45,916
48,767
34,022
39,352
42,271
Net assets
225,187
213,940
196,102
212,750
205,066
186,012
Equity
Accumulated funds
16
88,392
110,185
92,542
77,096
103,490
84,602
Revaluation reserves
16
117,929
82,723
82,715
117,238
81,034
81,034
Other reserves
16
935
979
998
935
979
998
Trust funds
16
17,931
20,053
19,847
17,481
19,563
19,378
Total equity
16
225,187
213,940
196,102
212,750
205,066
186,012
The financial statements are to be read in conjunction with the accompanying notes
Group Statement of Cash Flows
Group
University
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
Tertiary Education Commission grant
29,090
29,329
28,331
29,090
29,329
28,331
Tertiary Education Commission PBRF
funding
9,753
9,830
9,140
9,753
9,830
9,140
Tuition fees
21,534
22,528
20,768
21,534
22,528
20,768
Revenue from services
54,182
44,673
48,231
36,290
33,134
40,422
Cash flows from operating activities
Notes
Cash was provided from:
Interest and dividends
0
0
0
0
3,000
0
1,227
1,687
1,580
848
1,283
1,078
115,786
108,047
108,050
97,515
99,104
99,739
112,347
107,921
106,787
96,025
95,702
99,786
294
6
13
6
6
13
Cash was applied to:
Employees and suppliers
Interest expense
Earthquake costs
0
1,011
1,560
0
1,011
1,560
Building demolition expenses
0
1,436
0
0
1,436
0
Hub project expenses
0
1,961
0
0
1,961
0
Net GST paid (received)
Net cash flows from operating activities
18
(62)
(1,094)
605
(17)
(866)
(102)
112,579
111,241
108,965
96,014
99,250
101,257
3,207
(3,194)
(915)
1,501
(146)
(1,518)
500
8,505
0
0
7,205
0
0
0
2
0
0
2
Cash flows from investing activities
Term deposits matured
Sale of investments
Sale of sections
6,757
4,906
6,921
0
0
0
Sales of fixed assets
0
7
0
0
7
0
Insurance recoveries
0
27,427
0
0
27,427
0
7,257
40,845
6,923
0
34,639
2
0
0
6,785
0
0
7,205
Increase in term deposits
Increase in trust deposits
Development of land
Purchase of investments
Purchase of intangible assets
Purchases of fixed assets
Net cash flows from investing activities
215
383
510
215
357
491
5,233
4,145
6,801
0
0
0
0
0
7
0
0
7
21
1,674
754
0
1,452
644
18,493
8,831
11,948
17,618
8,404
3,818
23,962
15,033
26,805
17,833
10,213
12,165
(16,705)
25,812
(19,882)
(17,833)
24,426
(12,163)
35
36
Group
University
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
Budget
2015
$000
Actual
2015
$000
Actual
2014
$000
FarmSafe funds introduced
0
0
0
0
0
976
Receipts from subsidiaries
0
0
0
0
0
0
Crown capital injection
0
0
7,500
0
0
7,500
0
107
7,922
0
0
0
0
107
15,422
0
0
8,476
50
0
0
0
0
0
Repayment of finance leases
82
82
75
82
82
74
132
82
75
82
82
74
(132)
25
15,347
(82)
(82)
8,402
(13,630)
22,643
(5,450)
(16,414)
24,198
(5,279)
14,966
6,735
12,090
11,082
2,502
7,686
0
232
95
0
232
95
1,336
29,610
6,735
(5,332)
26,932
2,502
Cash flows from financing activities
Net cash flows from financing activities
Total cash flows
Plus opening balances
Effects of exchange rate changes on the balance of
cash held in foreign currencies
Closing cash balances and short term bank deposits
The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department.
The GST (net) component has been presented on a net basis as the gross amounts do not provide meaningful information for
financial reporting purposes.
Notes to the Financial Statements
1. Statement of Accounting Policies for the Year Ended 31 December 2015
The Lincoln University Group is a Tertiary Educational
Institute domiciled in New Zealand and is governed by the
Crown Entities Act 2004 and the Education Act 1989.
The Lincoln University Group (the Group) consists of
Lincoln University, its wholly controlled subsidiaries
Lincoln University Property Joint Venture Limited, Lincoln
Hospitality Limited, Lincoln Agritech Limited, Lincoln
University Property Joint Venture No 2 Limited, Ivey
Hall and Memorial Hall 125th Anniversary Appeal Gifting
Trust and Ivey Hall and Memorial Hall 125th Anniversary
Appeal Taxable Activity Trust. The Group includes the
following jointly controlled entities: the Massey-Lincoln
and Agricultural Industry Trust (50%), Agri One Limited
(50%) and Farm:Skills Limited Partnership (50%) which
commenced operations in November 2015. The Group also
includes the Lincoln Westoe Trust based on deemed control
of this entity. All subsidiaries, associates, and
jointly controlled entities are incorporated and domiciled
in New Zealand.
The primary objective of the University is to provide
educational and research services for the benefit of
the community rather than making a financial return.
Accordingly, the University has designated itself and the
Group as public benefit entities (PBE) for financial
reporting purposes.
The financial statements of the University and Group are for
the year ended 31 December 2015.
The financial statements were authorised by the Council of
the University on 19 April 2016.
Basis of Preparation
The financial statements have been prepared on a going
concern basis and the accounting policies have been applied
consistently throughout the period.
Statement of Compliance
The financial statements of the Lincoln University Group
have been prepared in accordance with the requirements
of the Crown Entities Act 2004 and the Education Act 1989
which includes the requirement to comply with New Zealand
generally accepted accounting practices (NZ GAAP).
The financial statements have been prepared in accordance
with Tier 1 PBE accounting standards. These financial
statements comply with the PBE accounting standards.
These financial statements are the first financial statements
presented in accordance with the new PBE accounting
standards. There were no material adjustments arising on
transition to the new PBE accounting standards.
Accounting policies are selected and applied in a manner
which ensures that the resulting financial information
satisfies the concepts of relevance and reliability, thereby
ensuring that the substance of the underlying transactions
or other events is reported.
Measurement Base
The financial statements have been prepared on the
historical cost basis, modified by the revaluation of land
and buildings (except for certain infrastructural assets),
artworks, biological assets and financial instruments
(including derivative instruments). The preparation of
financial statements in conformity with Public Benefit
Accounting Standards requires management to make
judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets
and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience
and various other factors that are believed to be reasonable
under the circumstances, the results of which form the
basis of making the judgements about carrying values
of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these
estimates. The critical estimates and assumptions in
these financial statements are set out at the end of these
accounting policies.
Functional and Presentation Currency
The financial statements are presented in New Zealand
dollars and all values are rounded to the nearest thousand
dollars ($000). The functional currency of the University is
New Zealand dollars (NZ$).
37
38
Standards Issued and Not Yet Effective and
Not Early Adopted
Not-for-profit Enhancements
In May 2013, the External Reporting Board issued a new
suite of PBE accounting standards for application by public
sector entities for reporting periods beginning or after
1 July 2014. The University has applied these standards in
preparing the 31 December 2015 financial statements.
In October 2014, the PBE suite of accounting standards was
updated to incorporate requirements and guidance for the
not-for-profit sector. These updated standards apply to
PBE’s with reporting periods beginning on or after 1 April
2015. The University will apply these updated standards in
preparing its 31 December 2016 financial statements and it
expects there will be minimal or no change in applying these
updated accounting standards.
Disclosure Initiative
PBE IPSAS 1 ‘Presentation of Financial Statements’ has
recently been updated to address perceived impediments
to the preparers exercising their judgements in preparing
financial statements. These amendments apply to the
University and Group in preparing the 31 December 2016
financial statements. The University and Group will be
considering these amendments and reviewing how its
financial statements are presented in preparing the
31 December 2016 financial statements.
Other Amendments
While there are other amendments issued and not yet
effective, the University and Group does not consider these
to be relevant and therefore no information has been
disclosed about these amendments.
Significant Accounting Policies
Basis of Consolidation
The Group financial statements are prepared by adding
together like items of assets, liabilities, equity, income,
expenses and cash flows on a line-by-line basis. All
significant intragroup balances, transactions, income and
expenses are eliminated on consolidation.
The University’s investment in its subsidiaries, associates
and jointly controlled entities is carried at cost in the
University’s own “parent entity” financial statements.
Subsidiaries
The University consolidates as subsidiaries in the Group
financial statements all entities where the University has
the capacity to control their financing and operating policies
so as to obtain benefits from the activities of the entity.
This power exists where the University controls the majority
voting power on the governing body or where such policies
have been irreversibly predetermined by the University
or where the determination of such policies is unable to
materially impact the level of potential ownership benefits
that arise from the activities of the subsidiary.
The University measures the cost of a business combination
as the aggregate of the fair values, at the date of exchange,
of assets given, liabilities incurred or assumed, in exchange
for control of the subsidiary plus any costs directly
attributable to the business combination.
Any excess of the cost of the business combination over the
University’s interest in the net fair value of the identifiable
assets, liabilities and contingent liabilities is recognised as
goodwill. If the University’s interest in the net fair value of
the identifiable assets, liabilities and contingent liabilities
exceeds the cost of the business combination, the difference
will be recognised immediately in the surplus or deficit.
Associates
Associates are entities over which the Group has significant
influence but not control.
Investments in associates are accounted for by using the
equity method and are initially recognised at cost.
On acquisition of the investment any difference between the
cost of the investment and the Group’s share of the net fair
value of the identifiable assets and liabilities is included in
other operating income in the determination of the Group’s
share of the associate’s profit or loss when the investment
is acquired.
The Group’s share of its associates post-acquisition profits or
losses are recognised in the surplus or deficit and its share
of post-acquisition movements in reserves is recognised in
reserves. The cumulative post-acquisition movements are
adjusted against the carrying amount of the investment.
When the Group’s share of losses in an associate equals
or exceeds its interest in the associate the Group does not
recognise further losses.
Joint Ventures
A joint venture is a contractual arrangement whereby two or
more parties undertake an economic activity that is subject
to joint control.
Jointly Controlled Entities
A jointly controlled entity exists where a separate entity
is established to carry out the objectives of the joint venture.
The Venturers enter into a contractual arrangement which
establishes joint control over the economic activity of
the entity.
The Group recognises its interest in such joint ventures
using the proportionate consolidation method.
Research Revenue
The Group exercises its judgement in determining whether
funding received under a research contract is received in
an exchange or non-exchange transaction. In determining
whether a research contract is exchange or non-exchange,
the University considers factors such as the following:
• Whether the funder has substantive rights to the research
output. This is a persuasive indicator of exchange or nonexchange.
• How the research funds were obtained. For example,
whether through a commercial tender process for
specified work or from applying to a more general
research funding pool.
• Nature of the funder.
• Specificity of the research brief or contract.
Revenue
Revenue is measured at fair value. Specific accounting
policies for significant revenue items are noted below.
SAC Funding
Student Achievement Component (SAC) funding is the
University’s main source of operational funding from
the Tertiary Education Commission (TEC). The University
considers SAC funding to be non-exchange and it is
recognised when the course withdrawal date has passed.
The University has a guaranteed amount of SAC funding
agreed with TEC. The University’s SAC funding is specifically
identified by the TEC as being for a funding period as
required by section 159YA of the Education Act 1989. The
University recognises its SAC funding at the commencement
of the specified funding period, which is the same as the
University’s financial year.
Performance-Based Research Fund (PBRF)
The University considers PBRF funding to be non-exchange
in nature. PBRF funding is specifically identified by the TEC
as being for a funding period as required by section 159YA
of the Education Act 1989. The University recognises its
confirmed allocation of PBRF funding at the commencement
of the specified funding period, which is the same as the
University financial year. PBRF revenue is measured based
on the University’s funding entitlement adjusted for any
expected adjustments as part of the final wash-up process.
Indicative funding for future periods is not recognised until
confirmed for that future period.
Other Grants Received
For an exchange research contract, revenue is recognised
on a percentage completion basis. The percentage of
completion is measured by reference to the actual research
expenditure incurred as a proportion to total expenditure
expected to be incurred.
For a non-exchange research contract, the total funding
receivable under the contract is recognised as revenue
immediately, unless there are substantive conditions in the
contract, in which case the revenue is then recognised
when the conditions are satisfied. A condition could include
the requirement to complete research to the satisfaction
of the funder to retain funding or return unspent funds.
Revenue for future periods is not recognised where the
contract contains substantive termination provisions for
failure to comply with the requirements of the contract.
Conditions and termination provisions need to be
substantive, which is assessed by considering factors such
as contract monitoring mechanisms of the funder and the
past practice of the funder.
Judgement is often required in determining the timing of
revenue recognition for contracts that span a balance date
or are multi-year research contracts.
Goods Sold
Revenue from the sale of goods is measured at the fair
value of the consideration received or receivable net of
returns and allowances, discounts and rebates. Revenue
is recognised when the significant risks and rewards of
ownership have been transferred to the buyer, recovery of
the consideration is probable and there is no continuing
management involvement with the goods.
Other grants are recognised as revenue when they become
receivable unless there is an obligation in substance to
return the funds if conditions of the grant are not met. If
there is such an obligation, the grants are initially recorded
as grants received in advance when received and recognised
as revenue when the conditions of the grant are satisfied.
Services Performed
Student Tuition Fees
Commissions
Domestic student tuition fees are subsidised by government
funding and are considered non-exchange. Revenue is
recognised when the course withdrawal date has passed,
which is when a student is no longer entitled to a refund for
withdrawing from the course.
When the Group acts in the capacity of an Agent rather than
as a principal in a transaction, the revenue recognised is the
net amount of commission received by the Group.
International student tuition fees are accounted for as
exchange transactions and recognised as revenue on a
course percentage of completion basis. The percentage
of completion is measured by reference to the days of the
course completed as a proportion of the total course days.
Revenue from services performed is recognised in the
surplus or deficit in proportion to the stage of completion
of the transaction at the reporting date. Principal services
undertaken include tuition, consulting, research and student
support services.
Donations and Bequests
Unrestricted donations are recognised as revenue upon
entitlement. When the University receives a donation with
obligations, a liability is recognised. Once the obligation is
discharged, the donation is recognised as revenue.
Donated assets are recognised at fair value.
39
40
Finance Revenue
Financial Assets and Liabilities
Finance revenue comprises interest revenue on funds
invested, dividend revenue, gains on the disposal of financial
assets, and foreign currency gains. Interest revenue is
recognised as it accrues using the effective interest method.
Dividend revenue is recognised when received.
Financial assets comprise investments in equity and
debt securities, trade and other receivables, cash and
cash equivalents, loans and borrowings and trade and
other payables.
Insurance Proceeds
Insurance proceeds are recognised in the financial
statements when received or when it is virtually certain that
they will be received and can be reliably measured under
the insurance contracts in place. All insurance proceeds are
recognised in the surplus or deficit.
Expenditure
Finance Expenses
Financial expenses comprise interest expense on
borrowings, foreign currency losses, impairment losses
recognised on financial assets (except trade receivables) and
losses on the disposal of available-for-sale financial assets.
All borrowing costs are recognised in the surplus or deficit
using the effective interest rate method.
Scholarships
Scholarships awarded by the University that reduce the
amount of tuition fees payable by the student are accounted
for as an expense and not offset against student tuition
fees revenue.
Financial assets are initially recognised at fair value plus
transaction costs, unless they are carried at fair value
through surplus or deficit, in which case the transaction
costs are recognised in the surplus or deficit. Purchases
and sales of financial assets are recognised on trade-date,
the date on which the University or Group commits to
purchase or sell the asset. Financial assets are derecognised
when the rights to receive cash flows from the financial
assets have expired or have been transferred and the
University or Group has transferred substantially all risks
and rewards of ownership.
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
in an active market. They are included in current assets,
except for maturities greater than 12 months after balance
date, which are included in non-current assets. After
initial recognition, loans and receivables are measured at
amortised cost using the effective interest method, less
any provision for impairment. Gains and losses when the
asset is impaired or derecognised are recognised in surplus
or deficit.
Financial liabilities are de-recognised if the Group’s
obligations specified in the contract expire or are discharged
or cancelled.
Foreign Currency Transactions
Foreign currency transactions (including those for which
forward foreign exchange contracts are held) are translated
into New Zealand dollars (the functional currency) using
the spot exchange rate prevailing at the date of the
transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
translation at year-end rates of monetary assets and
liabilities denominated in foreign currencies are recognised
in the surplus and deficit.
Non-Current Assets Held for Sale
Non-current assets held for sale are classified as held for
sale if their carrying amount will be recovered principally
through a sale transaction, rather than through
continuing use. Non-current assets held for sale are
measured at the lower of their carrying amount and fair
value less costs to sell.
Any impairment losses for write-downs of non-current
assets held for sale are recognised in the surplus or deficit.
Any increases in fair value (less costs to sell) are recognised
up to the level of any impairment losses that have been
previously recognised.
Non-current assets (including those that are part of a
disposal group) are not depreciated or amortised while they
are classified as held for sale. Interest and other expenses
attributable to the liabilities of a disposal group classified as
held for sale continue to be recognised.
Fair Value Through Other Comprehensive Revenue
and Expense Financial Assets
The Group’s investments in equity securities, with the
exception of investments in equity securities of subsidiaries
which are measured at cost in the separate financial
statements of the University, and certain debt securities
are classified as fair value through other comprehensive
revenue and expense financial assets. Subsequent to
initial recognition, they are measured at fair value and
changes, other than impairment losses, are recognised
through other comprehensive revenue and expense. When
an asset is de-recognised, the cumulative gain or loss in
equity is transferred to surplus or deficit. The fair value of
equity investments classified as fair value through other
comprehensive revenue and expense is the market value at
the balance sheet date.
Impairment of Financial Assets
Derivative Financial Instruments
Financial assets are assessed for evidence of impairment
at each balance date. Impairment losses are recognised in
surplus or deficit.
The Group uses forward exchange contracts to hedge
exposure to foreign exchange rate movements. The
University does not hold derivative financial instruments
for trading purposes. The University has not adopted
hedge accounting.
Loans and Receivables (Including Cash and Cash
Equivalents and Other Receivables)
Impairment of a loan or a receivable is established when
there is objective evidence that the University or Group
will not be able to collect amounts due according to the
original terms of the loan or receivable. Significant financial
difficulties of the debtor, and probability that the debtor
will enter insolvency, receivership or liquidation, and default
in payments are considered indicators that the asset is
impaired. The amount of impairment is the difference
between the asset’s carrying amount and the present value
of estimated future cash flows, discounted using the
original effective interest rate. The carrying amount of the
asset is reduced through the use of an allowance account,
and the amount of loss is recognised in the surplus or
deficit. When the receivable is uncollectible, it is written off
against the allowance account. Overdue receivables that
have been renegotiated are reclassified as current (that is,
not past due).
Financial Assets at Fair Value Through Other
Comprehensive Revenue and Expense
For equity investments, a significant or prolonged decline in
the fair value of the investment below its cost is considered
to be objective evidence of impairment.
For debt instruments, significant financial difficulties
of the debtor, probability that the debtor will enter into
receivership or liquidation, and default in payments are
considered to be objective indicators that the asset
is impaired.
If impairment exists for investments at fair value through
other comprehensive revenue or expense, the cumulative
loss (measured as the difference between the acquisition
cost and the current fair value, less any impairment loss
on that financial asset previously recognised in the surplus
or deficit) recognised in other comprehensive revenue or
expense is reclassified from equity to the surplus or deficit.
Equity instrument impairment losses recognised in the
surplus or deficit are not reversed through surplus or deficit.
Derivatives are initially recognised at fair value on the date
the derivative contract is entered into and are subsequently
re-measured at fair value at each balance date. Movements
in the fair value of derivative financial instruments are
recognised in the surplus or deficit.
Cash and Cash Equivalents
Cash at banks includes cash on hand and funds on deposit
with banks with original maturities of three months or less.
Bank overdrafts which are repayable on demand and which
form an integral part of the Groups cash management are
included as a component of cash and cash equivalents for
the purpose of the statement of cash flows.
Trust term deposits represent funds held on behalf of
University controlled and administered trusts. These funds
are restricted use funds generally governed by a trust deed.
Trade and Other Receivables
Trade and other receivables are recorded at their face value,
less any provision for impairment.
Inventories
Inventories are measured at the lower of cost or current
replacement cost. The cost of inventories is based upon the
first-in-first-out principle and includes expenditure incurred
in acquiring the inventories and bringing them to the
existing location and condition. The amount of any writedown for the loss of service potential or from cost to net
realisable value is recognised in the surplus or deficit in the
year of the write-down.
Agricultural Assets
If in a subsequent period the fair value of a debt instrument
increases and the increase can be objectively related to
an event after the impairment loss was recognised, the
impairment loss is reversed in the surplus or deficit.
Biological assets are measured at fair value less point-ofsale costs with changes recognised in surplus or deficit.
Fair value is deemed to be market price. Point-of-sale costs
include all costs necessary to sell the asset. Agricultural
produce is included as part of inventory.
Interest Bearing Borrowings
Property, Plant and Equipment
Interest bearing borrowings are initially recognised at
fair value. After initial recognition, they are recognised
at amortised cost using the effective interest method.
Borrowings are classified as current liabilities unless the
Group has an unconditional right to defer settlement of the
liability for at least 12 months after balance date.
Recognition and Measurement
Items of property, plant and equipment are measured
at cost or valuation less accumulated depreciation and
impairment losses.
Cost includes expenditure which was directly attributable
to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour costs
attributable to bringing the asset to a working condition for
its intended use.
41
42
Library books and serials include paper based books and
serials along with the digital access rights to electronic
books and serials. These are valued at cost.
When parts of an item of property, plant and equipment
have different useful lives, they are accounted for as
separate components.
Revaluation
Land and buildings, with the exception of certain assets
designated as infrastructural assets, are revalued on a
three yearly cycle. The carrying values of revalued items are
reviewed at each balance date to ensure those values are
not materially different to fair value.
Infrastructural assets comprise parking areas, roads, sewers
and storm drains and are valued at historic cost.
Any revaluation increase arising on the revaluation of land
and buildings is credited to the asset revaluation reserve,
except to the extent that it reverses a revaluation decrease
for the same asset class previously recognised as an
expense in the surplus or deficit, in which case the increase
is credited to the surplus or deficit to the extent of the
decrease previously charged. A decrease in carrying amount
arising on the revaluation of land or buildings is charged
to the surplus or deficit to the extent that it exceeds the
balance, if any, held in the asset revaluation reserve relating
to a previous revaluation of that asset class.
Depreciation on revalued assets is charged to the surplus
or deficit. On subsequent sale or retirement of a revalued
asset the attributable revaluation surplus remaining in
the asset revaluation reserve is transferred directly to
accumulated funds.
Assets Under Construction
Assets under construction are carried at cost, comprising
expenditure incurred and any certified progress payment
claims up to balance date. These assets are not in use and
have not been depreciated at balance date.
Intangible Assets
Acquired software licenses are capitalised on the basis of
the costs incurred to acquire and bring in to use the specific
software. These costs are amortised over their useful
economic lives (three to five years) on a straight line basis.
The Group upgrades software and capitalises all direct costs
associated with the upgrade.
Leased Assets
Leases, where the Group assumes substantially all the risks
and rewards of ownership, are classified as finance leases.
Upon initial recognition, the leased asset is measured at an
amount equal to the lower of its fair value and the present
value of the minimum lease payments. The finance charge
is charged to the surplus or deficit over the lease period so
as to produce a constant periodic rate of interest on the
remaining balance of the liability. The amount recognised
as an asset is depreciated over its useful life. If there is no
certainty as to whether the Group will obtain ownership
at the end of the lease term, the asset is fully depreciated
over the shorter of the lease term and its useful life.
Subsequent to initial recognition, the asset is accounted for
in accordance with the accounting policy for that asset.
Subsequent Costs
The cost of replacing part of an item of property, plant and
equipment is recognised in the carrying amount of the item
if it is probable that that the future economic benefits of
the part will flow to the Group and its cost can be reliably
measured. The cost of repairs to an item of property, plant
and equipment is recognised in surplus or deficit, as they
are incurred.
Depreciation
Depreciation is provided on a straight line basis over the
estimated useful lives of each part of an item of property,
plant and equipment. Leased assets are depreciated over
the shorter of the lease term or their useful life. Land is
not depreciated.
The estimated useful lives for the current and comparative
periods are:
• Freehold buildings – structure 40-100 years
• Freehold buildings – fit out 17-75 years
• Freehold buildings – services 20-75 years
• Plant and equipment 5-10 years
• Office furniture 5-10 years
• Computer equipment and
technology systems
3-10 years
• Library books and serials
10-20 years
Depreciation methods, useful lives and residual values are
re-assessed at the reporting date. Assets under construction
are not depreciated.
Lease Payments
Payments made under operating leases are recognised in
surplus or deficit on a straight line basis over the term of
the lease.
Impairment of Property, Plant and Equipment
The carrying amounts of the Group’s assets are reviewed
at each balance date to determine whether there is any
objective evidence of impairment. Where indicators of
impairment are identified a detailed assessment is made.
An impairment loss is recognised when the carrying amount
of an asset is less than its recoverable amount or value in
use for assets valued at depreciated replacement cost.
Impairment losses directly reduce the carrying amount
of assets and are recognised in the surplus or deficit for
assets held at cost. For assets recognised at fair value any
impairment is recognised in other comprehensive revenue
and expense to the point where this equals revaluation
reserves. Any further impairment is recognised in the
surplus or deficit.
The reversal of an impairment loss for assets held at cost is
recognised in the surplus or deficit for the period.
The reversal of an impairment loss for a revalued asset is
recognised in other comprehensive revenue and expense
and increases the revaluation reserve for the class of asset.
However, to the extent that an impairment loss for a class of
assets was previously recognised in the surplus or deficit, a
reversal of an impairment loss is recognised in the surplus
or deficit.
Superannuation Schemes
Defined Contribution Schemes
Employer contributions to Kiwisaver, the Government
Superannuation Fund, and other defined contribution
superannuation schemes are accounted for as defined
contribution schemes and are recognised as an expense in
the surplus or deficit as incurred.
Defined Benefit Schemes
The Group belongs to the Defined Benefit Plan Contributors
Scheme (the scheme), which is managed by the Board of
Trustees of the National Provident Fund. The scheme is a
multi-employer defined benefit scheme.
Trade and other payables are recorded at their face value.
Insufficient information is available to use defined benefit
accounting, as it is not possible to determine from the terms
of the scheme the extent to which the surplus/deficit will
affect future contributions by individual employers, as there
is no prescribed basis for allocation. The scheme is therefore
accounted for as a defined contribution scheme.
Employee Entitlements
Goods and Services Tax (GST)
Long Term Employee Entitlements
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.
Trade and Other Payables
The Group’s net obligation in respect of long term employee
benefits is the amount of future benefit that employees
have earned in respect of the length of service in the current
and prior periods.
The obligation for non-vested long service leave and
retirement gratuities is calculated on an actuarial basis. Any
increase or decrease in the valuation is recognised in the
surplus or deficit.
Taxation
The University and its subsidiaries are exempt from the
payment of income tax. Accordingly, there is no provision for
income tax.
Termination Benefits
Termination benefits are recognised as an expense when
the Group is demonstrably committed (without realistic
possibility of withdrawal) to a formal detailed plan to
terminate employment before the usual retirement date.
Termination benefits for voluntary redundancies are
recognised if the Group has made an offer requesting
voluntary redundancy and it is probable that the offer will
be accepted and the number of acceptances can be
estimated reliably.
Short Term Employee Entitlements
Short term employee entitlements, due to be settled within
12 months of year end, are measured on an undiscounted
basis and are expensed as the related service is provided.
Long service leave and retirement gratuities are calculated
on an actuarial basis which estimates the present value of
amounts payable in respect of existing employees based
on assumed rates of disablement, resignation, demise,
retirement and salary progression.
A provision is recognised for the amount to be paid under
short term performance based bonus entitlements if the
Group has a present legal obligation to pay this amount as
a result of past service provided by the employee and this
amount can be reliably estimated.
Provisions
Provisions are recognised when the Group has a present
obligation, the future sacrifice of economic benefits is
probable, and the amount of the provision can be
measured reliably.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at reporting date, taking into account the risks and
uncertainties surrounding the obligation. Where a provision
is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value
of those cash flows.
When some or all of the economic benefits required to
settle a provision are expected to be recovered from a third
party, the receivable is recognised as an asset if it is virtually
certain that recovery will be received and the amount of the
receivable can be measured reliably.
43
44
Equity
Equity is measured as the difference between total assets
and total liabilities. Equity is disaggregated and classified
into the following components:
Accumulated Funds
This is the sum of surpluses and deficits from the current
and prior years.
Revaluation Reserves
This reserve relates to the revaluation of land and buildings
to fair value.
Trusts Reserves
This reserve comprises the value of Trusts that have been
left to Lincoln University. This includes revaluations on land
and buildings within the Trusts as well as the fair value of
investments held.
Other Reserves
Other reserves relate to all other reserves held in equity
and include movements in the valuation of investments
that are held for sale through Fair Value Through Other
Comprehensive Revenue and Expense Financial Assets.
Trust Funds
Where there is a present obligation to repay trust funds,
these amounts have been treated as liabilities. Where there
is no present obligation to repay unused funds, the trust
funds have been treated as equity.
Budget Figures
The budget figures for Lincoln University are those approved
by the Council in December 2014. The Group budget was
adopted in February 2015. The budget figures have been
prepared in accordance with NZ GAAP, using accounting
policies that are consistent with those adopted by the
Council in preparing these financial statements.
Critical Accounting Estimates and Assumptions
In preparing these financial statements, the Group has
made estimates and assumptions concerning future events.
Consequently, these assumptions may differ from the actual
results. Estimates and judgements are continually evaluated
and are based upon historical experience including
expectations of future events which are believed to be
reasonable under the circumstances.
The estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are:
Property, Plant and Equipment
• Estimates made when determining the remaining useful
life over which an asset will be depreciated. Any change
in the useful life of an asset during the year will result in
an over or under charge for depreciation. To minimise this
risk the Group engages independent valuers to undertake
the revaluation of land and buildings.
Land and Buildings
• The valuation assumes that there were no physical
consequences of the series of Canterbury Earthquakes
to land or buildings. It also assumes there are no repair
costs which are not covered by insurance and hence
no additional costs that will justify adjustments to the
valuation. The University has made impairment and other
adjustments based on advice from structural engineers,
quantity surveyors and other experts where necessary.
Note 29 further expands the reasons and approach for
this and the methodology used.
• Estimates of obsolescence or surplus capacity.
Non-Vesting Employee Entitlements
• Assumptions made relating to staff turnover, interest
rates, and length of employment.
Critical Judgements in Applying Accounting Policies
Management has exercised the following critical
judgements in applying accounting policies for the year
ended 31 December 2015.
Crown Owned Buildings
• After the merger with Telford Rural Polytechnic on
1 January 2011, Lincoln University now controls a number
of buildings on the Telford site that are in the legal name
of the Crown. Lincoln University considers it has assumed
all the normal risks and rewards of ownership of this
property despite legal ownership not being transferred
and accordingly it would be misleading to exclude these
assets from the financial statements.
Distinction Between Revenue and Capital Contributions
• Most Crown funding received is operational in nature
and is provided by the Crown under the authority of an
expense appropriation and is recognised as revenue.
Where funding is received from the Crown under the
authority of a capital appropriation, the University and
Group accounts for the funding as capital contribution
directly in equity. Information about capital contributions
in equity is disclosed in Note 16.
45
46
2. Statement of Financial Performance Disclosures
The Comprehensive Income for the period includes the following:
Group
Revenue
Revenue from the sale of goods
Revenue from the rendering of services
Donations
Total revenue
2015
$000
University
2014
$000
2015
$000
2014
$000
4,033
5,209
4,033
5,209
105,594
107,298
93,208
95,745
0
0
3,000
0
26
31
26
31
109,653
112,538
100,267
100,985
1,397
1,558
994
1,056
0
0
0
0
Investment revenue
Bank deposits
Investments
Dividends
Total investment income
85
18
85
18
1,482
1,576
1,079
1,074
2014
$000
2015
$000
3. Operating Expenses
Group
2015
$000
University
2014
$000
Operating expenses include:
Repairs & maintenance
2,181
2,031
1,792
1,705
Occupation costs
4,017
2,949
2,924
2,814
Insurances
1,186
1,457
959
1,179
Scholarships
2,848
2,263
2,848
2,263
Sub-contracts research
5,356
5,535
4,624
4,773
Contracted services
6,841
5,715
6,311
5,478
Inventories consumed
5,169
5,244
3,236
3,366
513
496
117
118
Operating lease rental expenses
4. Key Management Personnel Compensation
University
2015
$000
Council members – honoria
2014
$000
86
85
Senior Management Team, including the Vice-Chancellor – remuneration
2,963
2,708
Total key management personnel compensation
3,049
2,793
12
18
12.4
13.4
Council members at year end (head count)*
Executive Management Team, including the Vice-Chancellor:
Full time equivalent members
* Due to the wide variability of time spent by Council members in preparation for Council and associated meetings, it is difficult
to determine an accurate full-time equivalent value. A re-constituted Council of 12 members came into effect on 9 December
2015. Prior to this Council membership consisted of 18 members.
Councillors’ Fees
The following fees were paid to members of Lincoln University Council during the year. The University Council is part of the key
management personnel.
University
2015
$000
2014
$000
P Chamberlain
4
5
K Fryer
4
4
B Gemmell
4
3
T Green
0
4
A Hall
13
7
G Harrison (1)
0
0
T Harrison-Hunt
3
3
25
25
T Lambie
A Macfarlane
5
6
E Rogers
4
5
L Tame
9
9
H Tangiora
3
0
P Wardell
0
3
C Watson
3
4
J Wood
3
2
D Yardley
Total
(1) G Harrison has waived his entitlement to Council meeting fees.
6
5
86
85
47
48
5. Remuneration of Auditors
Group
Audit of the financial statements
Audit of Public Benefit Research Funding
Total
University
2015
$000
2014
$000
2015
$000
2014
$000
217
208
134
131
10
10
7
10
227
218
141
141
The auditor of the Group is Audit New Zealand on behalf of the Auditor-General. No other fees are paid to the auditor.
6. Personnel Expenses
Group
Salaries and wages
Employer contributions to defined
contribution plan
Increase (decrease) in employee entitlements
Payments to sub-contractors
Total personnel expenses
University
2015
$000
2014
$000
2015
$000
2014
$000
60,014
63,905
52,150
56,249
1,512
1,611
1,376
1,492
616
(1,386)
504
(1,415)
1,142
980
1,089
980
63,284
65,110
55,119
57,306
7. Trade and Other Receivables
Group
University
2015
$000
2014
$000
2015
$000
2014
$000
Trade and other receivables (1)
14,672
16,511
16,970
19,487
Impairment
(1,345)
(286)
(1,339)
(158)
Inter-company advances (2)
0
0
9,077
8,987
Other inter-company balances (3)
0
0
1,447
1,162
13,327
16,225
26,155
29,478
Total
(1) The average credit period on sales of goods and services is 21 days. No interest is charged on overdue trade receivables
balances.
(2) Inter-company advances includes loans by the University to Lincoln University Property Joint Venture Limited of $9.1m. (2014
$8.9m) This loan is subject to interest at the discretion of the University. The loan is repayable on demand.
(3) Other inter-company balances includes amounts owed for the supply of goods and services on normal commercial terms.
Movement in the provision for doubtful debts is:
Group
University
2015
$000
2014
$000
2015
$000
2014
$000
286
160
158
109
Additional provisions made
1,209
137
1,210
60
Receivables written off in the year
(150)
(11)
(29)
(11)
Balance at the end of the period
1,345
286
1,339
158
Balance at start of the period
As at 31 December 2015, all overdue receivables have been assessed for impairment and appropriate provisions applied.
The provision for doubtful debtors has been calculated by assessing each debtor based on current knowledge.
Group
Not past due
2015
$000
Gross
2015
$000
Impairment
2015
$000
Net
2014
$000
Gross
2014
$000
Impairment
2014
$000
Net
12,719
0
12,719
12,224
0
12,224
Past due 1-30 days
184
0
184
52
0
52
Past due 31-60 days
104
0
104
109
0
109
Past due 61-90 days
Past due over 91 days
Total
106
0
106
13
0
13
1,559
(1,345)
214
4,113
(286)
3,827
14,672
(1,345)
13,327
16,511
(286)
16,225
University
2015
$000
Gross
2015
$000
Impairment
2015
$000
Net
2014
$000
Gross
2014
$000
Impairment
2014
$000
Net
26,057
0
26,057
25,592
0
25,592
Past due 1-30 days
0
0
0
29
0
29
Past due 31-60 days
49
0
49
89
0
89
Not past due
Past due 61-90 days
Past due over 91 days
Total
47
0
47
0
0
0
1,342
(1,339)
3
3,926
(158)
3,768
27,494
(1,339)
26,155
29,636
(158)
29,478
49
50
8. Inventories
Group
Farm consumables
University
2015
$000
2014
$000
2015
$000
2014
$000
417
225
417
225
Bookshop
353
278
353
278
Sundry inventories
402
402
287
308
Total
1,172
905
1,057
811
No inventories are pledged as security for liabilities. Some inventories are subject to retention of title clauses.
9. Inventory – Land Held for Sale
Group
University
Land held for sale at cost (1)
2015
$000
2014
$000
2015
$000
2014
$000
Balance at start of the period
13,595
12,313
0
0
Additions
4,059
6,801
0
0
203
247
0
0
(3,446)
(5,766)
0
0
14,411
13,595
0
0
Gain on consolidation eliminated
Cost of sales
Balance at the end of the period
(1) The Group intends to dispose of a parcel of land it no longer utilises over the next 5-10 years. The property was previously
used in the Group’s operations. The property is being developed for sale through a Joint Venture agreement with Ngāi
Tahu Property Joint Ventures Limited. No impairment loss was recognised on reclassification of the land as held for sale
or at the reporting date.
10. Investments
Group
Investment in subsidiaries (3)
Investment in supplier companies (1) (2)
University
2015
$000
2014
$000
2015
$000
2014
$000
0
0
408
408
2,198
2,220
2,198
2,220
Investment in other companies (2)
25
21
25
21
Investment in non-quoted companies (2)
75
75
75
75
Investment in associated company (4)
Total
0
0
0
0
2,297
2,316
2,706
2,724
(1) Supplier companies are companies which require the Group to have a shareholding in that company. This shareholding is
related to the volume of purchases made by the Group from that company.
(2) Designated as fair value through other comprehensive income from 1 January 2006.
(3) The investment in subsidiaries is measured at cost.
(4) In 2015, a subsidiary acquired 22.05% of the issued shares of an associated company, through the sale to this associated
company of a license to certain intellectual property as well as its 6% shareholding in a related associated company. As
the subsidiary has director representation on the Board of the newly acquired associated company, it has been deemed to
meet the requirements of significant influence and is therefore considered to be an associated company for the purposes
of these financial statements. The shareholding in the previous associated company was 6% and was previously written
down to $0 in 2011.
11. Property, Plant and Equipment
Group
Group cost and valuation
Freehold
Land at
Fair Value
$000
Buildings
at
Fair Value
$000
Plant &
Machinery
at Cost
$000
Furniture
& Fittings
at Cost
$000
Library
Books &
Serials
at Cost
$000
Total
$000
50,700
121,765
45,787
2,762
22,903
243,916
11,074
5,551
728
242
1,204
18,799
Gross carrying amount
Additions
Reclassification
0
0
0
0
0
0
(1,335)
0
(1,323)
0
0
(2,658)
Impairment increase
0
(34,869)
0
0
0
(34,869)
Impairment reversal
0
0
0
0
0
0
Disposals
Depreciation recovered upon valuation
0
0
0
0
0
0
1,471
210
0
0
0
1,681
61,910
92,657
45,192
3,004
24,107
226,870
Additions
0
2,963
1,705
58
1,210
5,935
Disposals
0
0
(400)
0
0
(400)
Impairment increase
0
0
0
0
0
0
Impairment reversal
0
0
0
0
0
0
0
0
0
0
0
0
Net revaluation increments/(decrements)
0
0
0
0
0
0
61,910
95,620
46,498
3,062
25,317
232,405
0
334
34,947
1,650
11,878
48,809
Disposals
0
0
(1,347)
0
0
(1,347)
Reclassification
0
0
0
0
0
0
Depreciation expense
0
5,787
2,206
128
1,001
9,122
Depreciation recovered upon impairment
0
(1,607)
0
0
0
(1,607)
0
4,514
35,805
1,778
12,879
54,976
Disposals
0
0
(399)
0
0
(399)
0
3,892
2,304
124
995
7,315
0
0
0
0
0
0
0
0
0
0
0
0
0
8,406
37,710
1,902
13,874
61,892
61,910
88,143
9,387
1,226
11,228
171,893
61,910
87,214
8,787
1,160
11,443
170,513
Group depreciation
Accumulated depreciation/amortisation
and impairment
Net book value
51
52
University
Freehold
Land at
Fair Value
$000
Buildings
at
Fair Value
$000
Plant &
Machinery
at Cost
$000
Furniture
& Fittings
at Cost
$000
Library
Books &
Serials
at Cost
$000
Total
$000
50,700
121,692
44,033
2,747
22,903
242,074
Additions
3,545
5,261
506
242
1,204
10,758
Disposals
(1,335)
0
(1,304)
0
0
(2,639)
Impairment increase
0
(34,869)
0
0
0
(34,869)
0
0
0
0
0
0
0
0
0
0
0
0
University cost and valuation
52,910
92,084
43,235
2,989
24,107
215,324
Additions
0
2,651
1,582
58
1,210
5,501
Disposals
0
0
(5)
0
0
(5)
Impairment increase
0
0
0
0
0
0
Impairment reversal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
52,910
94,735
44,812
3,047
25,317
220,820
0
293
33,632
1,639
11,878
47,442
Disposals
0
0
(1,308)
0
0
(1,308)
0
5,798
2,059
131
1,001
8,989
0
(1,607)
0
0
0
(1,607)
0
4,484
34,383
1,770
12,879
53,516
Disposals
0
0
(5)
0
0
(5)
0
3,856
2,166
123
995
7,140
0
0
0
0
0
0
0
0
0
0
0
0
0
8,340
36,544
1,893
13,874
60,651
52,910
87,600
8,852
1,219
11,228
161,808
52,910
86,395
8,268
1,154
11,443
160,169
University depreciation
Accumulated depreciation/amortisation and
impairment
Net book value
Freehold Land and Buildings Carried at Fair Value
An independent valuation of the Group’s land and buildings was performed by FordBaker Valuation Limited, registered
independent valuers not related to the Group, to determine the fair value of the land and buildings as at 31 December 2013. The
valuation, which conforms to New Zealand Property Institute Practice Standard 3 - Valuations for Financial Reporting Purposes,
was determined by reference to market value for land and depreciated replacement cost for buildings. Depreciated replacement
cost is determined using a number of significant assumptions. Significant assumptions include:
• The replacement asset is based on the replacement with modern equivalent assets with adjustments where appropriate for
obsolescence due to over-design or surplus capacity.
• The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand
cost information.
• For the Institute’s earthquake prone buildings that are expected to be strengthened, the estimated earthquake
strengthening costs have been deducted off the depreciated replacement cost.
• The remaining useful life of assets is estimated.
• Straight-line depreciation has been applied in determining the depreciated replacement cost value of the asset.
Under the New Zealand Property Institute Practice Standard 1, which came into force from 1 May 2004, all valuations must
be assessed as at the date of inspection of the property, except where the valuation instructions are to assess the value at a
retrospective date. The valuation disregards earthquake damage and assumes that the buildings were in a condition similar to
that prior to the September 2010 earthquake.
An impairment of buildings has been recognised in other comprehensive income in the prior year that estimates the change in
value of the assets as a result of the earthquake damage incurred.
12. Assets Under Construction
Group
Movements
Buildings
$000
Plant
$000
Intangible Assets
$000
Total
$000
4,502
382
464
5,348
(3,563)
305
514
(2,744)
939
687
978
2,604
Movements
3,416
(148)
162
3,430
4,355
539
1,140
6,034
Total
$000
University
Movements
Buildings
$000
Plant
$000
Intangible Assets
$000
4,502
382
464
5,348
(3,563)
305
514
(2,744)
939
687
978
2,604
Movements
3,416
(148)
162
3,430
4,355
539
1,140
6,034
The capital work in progress includes replacement buildings and new kitchen facilities.
53
54
13. Intangible Assets
Group
University
Software
$000
Software
$000
8,086
7,976
Additions
315
217
Disposals
0
0
Additions
Disposals
8,401
8,193
1,511
1,289
0
0
9,912
9,482
7,170
7,120
469
445
0
0
7,639
7,565
476
452
0
0
8,115
8,017
762
628
1,797
1,465
Accumulated amortisation & impairment
Amortisation
Disposals
Amortisation
Disposals
Net book value
14. Agricultural Assets
Group
University
2015
$000
2014
$000
2015
$000
2014
$000
3,586
4,130
3,586
4,130
32
135
32
135
Decreases due to sales
(714)
(240)
(714)
(240)
Net gain/(loss) from changes in fair value less
costs to sell attributable to physical and price
changes
(562)
(439)
(562)
(439)
Carrying amount at 31 December
2,342
3,586
2,342
3,586
Carrying amount at 1 January
Increases due to purchases
Livestock
The Group owns sheep, cattle and deer. These are held at the Group’s farms in the South Island. At 31 December 2015, the Group
owned 9,352 (2014: 12,859) sheep; 1,257 (2014: 1,537) cattle and 34 (2014: 43) deer.
Independent valuers, Livestock Improvement Corporation, Les Clement Limited and PGG Wrightson Limited, all with the
appropriate knowledge and experience in valuing livestock, have valued the livestock assets at 31 December 2015. The
significant valuation assumptions adopted in determining the fair value of the livestock assets included current market values
net of the selling costs.
Financial Risk Management Strategies
The Group is exposed to financial risks arising from changes in commodity prices. The Group does not anticipate that
commodity prices will decline significantly in the forseeable future and, therefore, has not entered into derivative or other
contracts to manage the risk of a decline in commodity prices. The Group reviews its outlook for commodity prices regularly in
considering the need for active financial risk management.
The Group is exposed to financial risks arising from weather and disease. These risks are normal for the industry.
15. Trade and Other Payables and Employee Liabilities
Group
University
Trade and other payables
2015
$000
2014
$000
2015
$000
2014
$000
Trade payables (1)
11,587
13,859
14,265
16,086
Deposits held on behalf of students
2,822
3,142
2,822
3,142
Goods and Services Tax (GST) payable
2,071
619
1,981
768
Other – inter-company
Total
0
0
342
570
16,480
17,620
19,410
20,566
(1) The average credit period on purchases of certain goods is 21 days. The Group has financial risk management policies in
place to ensure that all payables are paid on time.
Group
Employee liabilities
Salary accrual
Annual leave
Long service leave
2015
$000
University
2014
$000
2015
$000
2014
$000
396
125
279
51
4,285
3,754
3,792
3,337
635
623
458
466
4,693
4,848
4,559
4,730
10,009
9,350
9,088
8,584
Employee liabilities comprising:
2015
$000
2014
$000
2015
$000
2014
$000
Current liabilities
4,612
4,071
4,203
3,561
Term liabilities
5,397
5,279
4,885
5,023
10,009
9,350
9,088
8,584
Retirement leave and other employee
entitlements
Total
Group
Total
University
The present value of retirement leave and other employee entitlements depends on a number of factors that are determined
on an actuarial basis using a number of assumptions. The key assumptions used in calculating this liability include the discount
rate and the salary growth factor. Any changes in these assumptions will impact on the carrying amount of the liability. The
valuation was carried out by an independent actuary, Eriksen & Associates Limited, as at 31 December 2015. They have based
their valuation on the model recommended by the Treasury for the reporting purposes of Crown Entities.
55
56
16. Equity
Accumulated
Funds
$000
Asset
Revaluation
Reserves
$000
Fair Value
Through
Other
Comprehensive
Revenue and
Expense
Reserves
$000
Group balances at 1 January 2014
88,205
117,238
935
17,019
223,397
(1,670)
0
0
0
(1,670)
0
0
0
0
0
(2,828)
0
0
2,828
0
Group equity
Transfer of available for sale revaluation
reserves on disposal
Land and buildings revaluation
Trusts
$000
Total
Equity
$000
0
1,681
0
0
1,681
1,335
(1,335)
0
0
0
0
(34,869)
63
0
(34,806)
7,500
0
0
0
7,500
Group balances at 31 December 2014
92,542
82,715
998
19,847
196,102
17,850
0
0
0
17,850
0
0
(19)
0
(19)
17,850
0
(19)
0
17,831
(207)
0
0
206
(1)
0
8
0
0
8
fixed assets
0
0
0
0
0
110,185
82,723
979
20,053
213,940
University balances at 1 January 2014
81,254
117,238
935
16,570
215,997
(3,302)
0
0
0
(3,302)
(2,808)
0
0
2,808
0
623
0
0
0
623
1,335
(1,335)
0
0
0
0
(34,869)
63
0
(34,806)
fixed assets
Fair value through other comprehensive
revenue and expense revaluations
Crown injection
2015
Group balances at 31 December 2015
University equity
FarmSafe equity introduced
fixed assets
Fair value through other comprehensive
revenue and expense revaluations
Crown injection
University balances at 31 December 2014
2015
University balances at 31 December 2015
7,500
0
0
0
7,500
84,602
81,034
998
19,378
186,012
0
0
(19)
0
(19)
19,073
0
(19)
0
19,054
(185)
0
0
185
0
103,490
81,034
979
19,563
205,066
17. Related Party Disclosures
(a) Parent Entity
The parent entity of the Group is Lincoln University.
(b) Equity Interests in Related Parties
Equity interests in subsidiaries:
Details of the percentage of ordinary shares held in subsidiaries are disclosed in Note 20 to the financial statements.
Equity interests and joint ventures:
Details of interests in joint ventures are disclosed in Note 24 to the financial statements.
(c) Transactions with Related Parties
Related party disclosures have not been made for transactions with related parties that are within a normal supplier or
client/recipient relationship on terms and conditions no more or less favourable than those that are reasonable to expect the
University would have in dealing with the party at arm's length. Transactions with Government agencies such as TEC, IRD and
Crown Research Institutes are not disclosed as related party transactions when they are consistent with the normal operating
arrangements with the University and are undertaken on the normal terms and conditions for such transactions.
During the year to 31 December 2015, the University had the following inter-group transactions with its wholly owned
subsidiary companies and its 50% JV partners.
57
58
Sales by Lincoln
University to:
Purchases by Lincoln
University from:
Relationship
2015
$000
2014
$000
2015
$000
2014
$000
Lincoln Hospitality Limited
Subsidiary
3,434
3,453
2,197
1,862
Support
services
Subsidiary
722
710
144
216
Support
services
Lincoln University Property Joint Venture
Limited
Subsidiary
45
42
0
0
Land
development
Lincoln University Property Joint Venture
No 2 Limited
Subsidiary
45
42
0
0
Land
development
Agri One Limited
JV Partner
25
104
150
150
Project funder
Massey-Lincoln and Agricultural Industry
Trust
JV Partner
180
184
2
0
Research
funding
Farm:Skills Limited Partnership
JV Partner
0
0
0
0
Teaching
and training
services
Transactions during the year
Nature of
transactions
In addition to the above, during 2015 Lincoln Hospitality Limited paid a $3m grant to Lincoln University, to enable Lincoln
University to enhance research and publications, and to teach, organise, establish and maintain educational and scientific
activities. In this regard, Lincoln University has obtained legal advice which confirms management's opinion that the payment
could lawfully be made.
Amounts owing to
Lincoln University:
Balances at year end
Amounts owed by
Lincoln University:
Relationship
2015
$000
2014
$000
2015
$000
2014
$000
Subsidiary
1,057
831
340
389
Subsidiary
254
284
0
181
Subsidiary
8,828
8,783
0
0
Lincoln University Property Joint Venture No 2 Limited
Subsidiary
249
204
0
0
Agri One Limited
JV Partner
26
3
0
0
Massey-Lincoln and Agricultural Industry Trust
JV Partner
4,475
4,509
5,450
5,352
JV Partner
0
0
0
0
During the financial year, the University provided accounting and administration services to some subsidiaries and Joint
Ventures for no consideration.
Directors’ Fees
The following directors’ fees were paid:
2015
$000
2014
$000
E Rogers
44
44
M Frost
22
14
C Hyland
0
14
A Townsend
0
14
66
86
Total
(d) Key Management Personnel Remuneration
Details of key management personnel remuneration are disclosed in Note 4 to the financial statements.
59
60
18. Notes to the Cash Flow Statement
Reconciliation of Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand and in bank accounts and
investments in money market instruments, net of outstanding bank overdrafts.
Group
University
Reconciliation of the surplus for the period
to net cash flows from operating activities
2015
$000
2014
$000
2015
$000
2014
$000
Surplus for the period
17,850
(1,670)
19,073
(3,302)
(Gain)/loss on sale of fixed assets
(7)
(2,170)
(7)
(2,170)
(1,405)
(1,502)
0
0
Unrealised/(gain) loss on exchange movements
(232)
(95)
(232)
(95)
Depreciation and amortisation of non-current assets
7,791
7,984
7,592
7,827
(Increase)/decrease current trade receivables
2,898
(5,171)
3,323
(5,495)
(Increase)/decrease prepaid expenses
(228)
(80)
(264)
(32)
(Increase)/decrease agricultural assets
1,244
544
1,244
544
(Increase)/decrease current inventories
(267)
163
(246)
159
(Gain)/loss on sale of land
(Increase)/decrease in assets:
Increase/(decrease) in liabilities:
Increase/(decrease) trade and other payables
(1,266)
4,251
(1,112)
4,511
Increase/(decrease) revenue in advance
(2,395)
(1,613)
(2,185)
(1,457)
Increase/(decrease) in current employee liabilities
541
(687)
642
(740)
Increase/(decrease) in term employee liabilities
118
(670)
(138)
(675)
0
0
0
(394)
129
(102)
129
(102)
Elimination of FarmSafe balances on introduction
Items classified as investing activities:
Movement in fixed asset creditors
Movement in prepaid fixed assets
Insurance recoveries classed as capital
Net cash from operating activities
(538)
(97)
(538)
(97)
(27,427)
0
(27,427)
0
(3,194)
(915)
(146)
(1,518)
19. Financial Instruments
(a) Financial Risk Management Objectives
The Group’s corporate treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, and manages the financial risks relating to the operations of the Group.
The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative
purposes. The use of financial derivatives is governed by the Group's policies approved by the University Council, which provide
principles on the use of financial derivatives.
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates.
(b) Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, and the basis of
measurement applied in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1
to the financial statements.
(c) Foreign Currency Risk Management
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations
arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
(d) Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where
appropriate, as a means of mitigating the risk of financial loss from defaults. The Group exposure and the credit ratings of its
counterparties are continuously monitored and the aggregate value of transactions concluded are spread amongst approved
counterparties.
The University and Group policy limits the amount of credit exposure to any one financial institution for call and short term
investments to no more than $15 million of total investments held. The Group invests funds only with registered banks that
have a Standard and Poor’s credit rating of at least AA- for all investments.
Trade and other accounts receivable consist of a large number of customers, spread across diverse industries and geographical
areas. On-going credit evaluation is performed on the financial condition of trade and other accounts receivable.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the
Group’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having
similar characteristics. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties
are banks with high credit-ratings assigned by international credit-rating agencies.
(e) Fair Value of Financial Instruments
The University Council considers that the carrying amount of financial assets and financial liabilities recorded in the financial
statements approximates their fair values (2014: net fair value).
The fair values of financial assets and financial liabilities are determined as follows:
• the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid
markets are determined with reference to quoted market prices. No collateral has been granted by the Group on any
financial asset.
• the fair value of financial assets not traded on active markets is estimated using various valuation techniques.
(f) Fair Value Interest Rate Risk
Fair value interest rate risk is the risk that the value of a financial instrument will change due to the movement in market
interest rates. The Group has minimal exposure to market interest rate risk by, generally, investing in fixed term deposits with
maturity dates of less than one year.
(g) Sensitivity Analysis
Investment revenue is subject to interest rate movements which are both volatile and unpredictable. If interest rates should
increase or decrease by 1% the estimated effect on the Group surplus would be $425,000 - $475,000.
(h) Cash Flow Interest Rate Risk
Cash flow interest rate risk is the risk that cash flows from a financial instrument will vary due to changes in market rates.
Investments made at variable interest rates expose the Group to cash flow interest rate risk. Cash flow interest rate risk is
minimised by the use of fixed term deposits.
(i) Credit Quality of Financial Assets
The University Group invests only in five major banking institutions. All these institutions are ranked as AA- by Standard & Poor.
(j) Liquidity Risk Management
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Liquidity risk is the risk that the University or Group will not be able to raise funds to meet commitments as they fall due.
(k) Price Risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in
market prices. This applies to listed shares held by the University totalling $2.04m (2014 $2.07m). This includes $2.02m (2014
$2.05m) of shares in supplier companies that require the Group to have a shareholding in order to engage in trading activites
with the entity.
61
62
Maturity Profile of Financial Instruments
The following table details the Group’s exposure to interest rate risk as at 31 December 2015.
Weighted
Average
Effective
Interest Rate %
Variable
Interest
rate
$000
Less than
1 year
$000
NonInterest
Bearing
$000
Total
Cash and cash equivalents
2.75%
29,610
0
0
29,610
Other financial assets
3.53%
0
15,659
0
15,659
0
0
13,327
13,327
Group 2015
Financial assets:
Trade receivables
University 2015
Financial assets:
2.75%
26,932
0
0
26,932
3.53%
0
15,174
0
15,174
0
0
26,155
26,155
Trade receivables
Group 2014
Financial assets:
2.50%
5,235
1,500
0
6,735
4.78%
0
23,782
0
23,782
0
0
16,225
16,225
0
2,502
Trade receivables
University 2014
Financial assets:
2.50%
2,502
0
4.78%
0
22,022
0
22,022
0
0
29,478
29,478
Trade receivables
2015
Group
Financial liabilities: contractual cashflows
Less than 1 year
Loans and
Borrowings
$000
Trade
Payables
$000
213
2014
Finance
Lease
Liabilities
$000
Loans and
Borrowings
$000
22
106
82
Trade
Payables
$000
Finance
Lease
Liabilities
$000
1-2 years
1,784
0
0
22
2-3 years
0
0
1,784
0
3-4 years
0
0
0
0
4-5 years
1,785
0
0
0
5+ years
4,247
0
6,032
0
Total
8,029
22
7,922
104
Weighted average effective interest %
6.25%
9.27%
6.25%
9.27%
Non-interest bearing
16,480
17,620
2015
University
Financial liabilities: contractual cashflows
Loans and
Borrowings
$000
Trade
Payables
$000
2014
Finance
Lease
Liabilities
$000
Loans and
Borrowings
$000
Trade
Payables
$000
Finance
Lease
Liabilities
$000
Less than 1 year
0
22
0
82
1-2 years
0
0
0
22
2-3 years
0
0
0
0
3-4 years
0
0
0
0
4-5 years
0
0
0
0
5+ years
0
0
0
0
Total
0
22
0
Weighted average effective interest %
Non-interest bearing
104
9.27%
19,410
9.27%
20,566
Financial Instrument Categories
The accounting policies for financial instruments have been applied to the line items below:
Group
University
2015
$000
2014
$000
2015
$000
2014
$000
29,610
6,735
26,932
2,502
Debtors and other receivables
13,327
16,225
17,078
20,491
15,659
23,782
15,174
22,022
0
0
9,077
8,987
58,596
46,742
68,261
54,002
253
246
662
654
- Listed shares
2,044
2,070
2,044
2,070
Total fair value through other comprehensive revenue and expense
2,297
2,316
2,706
2,724
Financial assets
Loans and receivables
Other financial assets:
- Term deposits
- Loans to related parties
Total loans and receivables
Fair value through other comprehensive revenue and expense
Other financial assets:
- Unlisted shares
Financial liabilities
Financial liabilities at amortised cost
Creditors and other payables
Lease liabilities
Total financial liabilities at amortised cost
8,029
7,922
0
0
16,480
17,620
19,410
20,566
22
104
22
104
24,531
25,646
19,432
20,670
Fair Value Hierarchy Disclosures
For those instruments recognised at fair value in the statement of financial position, fair values are determined according to the
following hierarchy:
• Quoted market price – Financial instruments with quoted prices for identical instruments in active markets.
• Valuation techniques using observable inputs – Financial instruments with quoted prices for similar instruments in active
markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using
models where all significant inputs are observable.
• Valuation techniques with significant non-observable inputs – Financial instruments valued using models where one or more
significant inputs are not observable.
63
64
The following table analyses the basis of valuation of classes of financial instruments measured at fair value in the statement
of financial position:
Valuation Techniques
Total
Quoted Market
Price
Observable
Inputs
Significant
Non-Observable
Inputs
2,044
2,044
0
0
2,044
2,044
0
0
2,070
2,070
0
0
2,070
2,070
0
0
Group 2015
Financial assets
- Listed shares
University 2014
Financial assets
- Listed shares
Group 2014
Financial assets
- Listed shares
University 2014
Financial assets
- Listed shares
20. Subsidiaries
Ownership Interest
Parent entity
Lincoln University
Country of Incorporation
2015
%
New Zealand
2014
%
Subsidiaries
New Zealand
100
100
New Zealand
100
100
New Zealand
100
100
Lincoln University Property Joint Venture No 2 Limited
New Zealand
100
100
The Lincoln Westoe Trust
New Zealand
Control
Control
Ivey Hall and Memorial Hall 125th Anniversary Appeal Gifting Trust
New Zealand
Control
Control
Ivey Hall and Memorial Hall 125th Anniversary Appeal Taxable
Activity Trust
New Zealand
Control
Control
Transfer of Subsidiaries
The value of the share capital of subsidiaries has been recorded by Lincoln University at cost.
Lincoln Hospitality Limited principally provides accommodation and catering services to students.
Lincoln Agritech Limited provides research, development and consultancy services to industry as well as local and
regional government.
Lincoln University Property Joint Venture Limited and Lincoln University Property Joint Venture No 2 Limited are involved with
the development of surplus University land for residential and commercial purposes.
The Lincoln Westoe Trust is a charitable trust. The primary objective of the Trust is to establish land-based agricultural training
and education facilities.
The Ivey Hall Trusts were established to raise funds for the refurbishment of Ivey Hall and Memorial Hall.
21. Commitments for Expenditure
Commitment for expenditure is the total amount of capital expenditure contracted for the acquisition of property, plant and
equipment and intangible assets which have been neither paid for nor recognised as a liability in the balance sheet.
a) Capital expenditure commitments
Group
University
2015
$000
2014
$000
2015
$000
2014
$000
2,280
1,869
2,280
1,869
197
1,432
0
0
Library books and serials
179
196
179
196
Plant and equipment
961
69
961
69
3,617
3,566
3,420
2,134
Buildings
Land development
Total
(b) Lease commitments
Finance lease liabilities and non-cancellable operating lease commitments are disclosed in Note 23 to the financial statements.
22. Contingent Liabilities and Contingent Assets
The University has a contingent asset for future insurance recoveries in relation to the earthquakes in September 2010,
February and June 2011. The University has no other contingent assets at 31 December 2015.
Subsidiaries
Lincoln University Property Joint Venture Limited, Lincoln University Property Joint Venture No 2 Limited, Lincoln Agritech
Limited, Lincoln Hospitality Limited and Ivey Hall and Memorial Hall 125th Anniversary Appeal Gifting and Taxable Activity
Trusts , have no known material contingent liabilities or assets (2014: Nil) other than those relating to the National Provident
Defined Benefit Contributors Scheme.
Superannuation Defined Benefit Plans
The University is a participating employer in the DBP Contributors Scheme (‘the Scheme’) which is a multi-employer defined
benefit scheme. If the other participating employers ceased to participate in the Scheme, the employer could be responsible
for any deficit of the Scheme. Similarly, if a number of employers cease to have employees participating in the Scheme; the
employer could be responsible for an increased share of the deficit. Insufficient information is available to use defined benefit
accounting, as it is not possible to determine, from the terms of the Scheme, the extent to which the deficit will affect future
contributions by employers, as there is no prescribed basis for allocation.
As at 31 March 2015, the Scheme had a past service surplus of $20.9 million (11.4% of the liabilities). This amount is exclusive of
Employer Superannuation Contribution Tax. This surplus was calculated using a discount rate equal to the expected return on
the assets, but otherwise the assumptions and methodology were consistent with the requirements of PBE IPSAS 25.
The Actuary to the Scheme recommended previously that the employer contributions were suspended with effect from 1 April
2011. In the 2015 annual report, the Actuary recommended employer contributions remain suspended.
Effective 1 November 2015, Lincoln University entered into a limited partnership agreement with the Māori Trustee (MT) for the
delivery of teaching and training services. In terms of the agreement, the MT has a put option which, if exercised, will oblige
Lincoln University to purchase the MT’s share of the partnership for $0.5m within 1 year of commencement, for $0.4m within
2 years, for $0.3m within 3 years, for $0.2m within 4 years, and $0.1m if exercised within 5 years of commencement. As of the
date of this report, Lincoln University has received no notice that the MT wish to exercise their option in terms hereof.
65
66
23. Leases
Disclosures for Lessees
Finance Leases
(a) Leasing Arrangements
Finance leases relate to a building with lease terms of 20 years. The Group will take unencumbered ownership at the conclusion
of the lease agreement.
(b) Finance Lease Liabilities
Minimum Future Lease Payments
Group
Not later than 1 year
University
2015
$000
2014
$000
2015
$000
2014
$000
22
88
22
88
Later than 1 year and not later than 5 years
0
22
0
22
Later than 5 years
0
0
0
0
Minimum lease payments*
22
110
22
110
Less future finance charges
0
(6)
0
(6)
22
104
22
104
22
82
22
82
0
22
0
22
22
104
22
104
Present value of minimum lease payments
Included in the financial statements as:
Current borrowings
Non-current borrowings (note 19)
Total borrowings
Present Value of Minimum Future Lease Payments
Group
Later than 5 years
Minimum lease payments*
University
2015
$000
2014
$000
2015
$000
2014
$000
22
82
22
82
0
22
0
22
0
0
0
0
22
104
22
104
*Minimum future lease payments includes the aggregate of all lease payments and any guaranteed residual.
Operating Leases
(a) Leasing Arrangements
Operating leases relate to office equipment and vehicles. All operating lease contracts contain market review clauses in the
event that the Group exercises its option to renew. The Group does not have an option to purchase the leased asset at the
expiry of the lease period.
(b) Non-cancellable Operating Lease Payments
Group
Later than five years
Total
University
2015
$000
2014
$000
2015
$000
2014
$000
513
1,075
432
117
111
316
413
8
0
0
0
0
1,588
748
530
119
24. Jointly Controlled Entities
2015
%
2014
%
Massey-Lincoln and Agricultural Industry Trust (MLAIT)
50
50
50
0
Rural Leadership Consortium
50
50
Agri One Limited
50
50
Ngāi Tahu Property Joint Venture Limited
50
50
Ngāi Tahu Property Joint Venture (No. 2) Limited
50
50
Ownership interest
The purpose of the joint venture with MLAIT is to provide research funding under the Partnership for Excellence scheme.
The purpose of Farm:Skills Limited Partnership is to develop and implement a national educational programme aimed at
reducing injury rates in the rural sector. It commenced activities on 1 November 2015.
The Rural Leadership Consortium was formed through the combination of the Nuffield Farming Scholarship Trust and the
Kellogg Rural Leaders Programme to improve leadership capability within the rural and primary sectors in New Zealand.
The purpose of Agri One Limited is to develop and hold agriculture related short courses.
The purpose of the Ngāi Tahu Property Joint Venture Limited and Ngāi Tahu Property Joint Venture (No.2) Limited is to develop
surplus land.
The following amounts are included in the consolidated financial statements under their respective categories as a result of the
proportionate consolidation of the jointly controlled entities.
Group
Current assets
Non-current assets
Current liabilities
Non-current liabilities
2015
$000
2014
$000
575
583
0
0
320
349
0
0
Net assets
255
234
Revenue
938
1,328
Expenses
915
1,321
The Group is responsible for the accounting and administration of the SIDDC, Rural Leadership Consortium, MLAIT joint ventures
and Agri One Limited.
Contingent Liabilities and Capital Commitments
The capital commitments and contingent liabilities arising from the Group’s interests in joint ventures are disclosed in Notes 21
and 22 respectively.
67
68
25. Loans and Borrowings
Group
2015
$000
2014
$000
213
106
Lincoln Westoe Trust: Rabobank New Zealand limited
4,247
4,247
Loan – Howard Family Partnership
3,569
3,569
Total term loans and borrowings
7,816
7,816
8,029
7,922
Current loans and borrowings are represented by:
Lincoln Westoe Trust: Rabobank New Zealand Limited
Term loans and borrowings are represented by:
Total loans and borrowings
Lincoln Westoe Trust has the following banking facilities with Rabobank New Zealand Limited:
Interest Rate
Current all in one variable account
6.45%
Term all in one fixed loan
6.25%
Maturity Date
Loan Facility
Limit
800,000
1 August 2017
4,250,000
Rabobank New Zealand Ltd has a registered security over the Lincoln Westoe Trust property in relation to the Rabobank
mortgage held.
The Howard Family Partnership has loaned $3,569,000 to the Trust on settlement date, 26th June 2014. This loan is to be gifted
in 2 instalments, 2.5 and 5 years on from settlement date, providing certain terms and conditions are met.
26. Subsequent Events
There have been no significant events after the balance date.
27. Capital Management
The University’s capital is its equity which comprises of accumulated funds, revaluation reserves and trust funds. Equity is
represented by net assets as disclosed by the Statement of Financial Position.
The University manages its revenues, expenses, assets and liabilities and day to day financial dealings prudently.
The purpose of managing the University’s equity is to ensure that the University achieves its goals and objectives whilst
remaining a going concern.
Trust funds comprise cash and other assets. On the cessation of the associated trusts, the funds revert to the University.
The University is subject to the financial management and accountability provisions of the Education Act 1989, which includes
restrictions in relation to disposing of assets or interests in assets, the ability to mortgage or otherwise charge assets or
interests in assets, the granting of leases of land or buildings or parts of buildings, and borrowing.
28. Explanation of Significant Variances Compared with the Group
Budget
Revenue
• Domestic and international tuition fees were down on budget by 3.2% due to total enrolments being lower and the mix of
students being different than budgeted.
• Trading income was 11% lower than budget primarily due to the FarmSafe changed ownership structure. FarmSafe was
budgeted as a JV for the 2015 financial year, but was only constituted as a JV from 1 November 2015 under the name
Farm:Skills Limited Partnership. In addition, the training conducted through the FarmSafe entity was reduced due to lower
student numbers than planned. Refer Note 24 Jointly Controlled Entities.
Expenditure
• Personnel expenses were 5.6% higher than budget due to a range of factors, including: staff recruitment costs for newly
created professional positions; unbudgeted FarmSafe salaries; Library Teaching and Learning staff exceeding budget; oneoff cessation costs for HR staff due to the restructure and replacement of most department staff; higher in-house research
personnel costs in favour of operating outsourcing costs; plus accrued leave in excess of budget.
• Operating costs were 4.8% lower than budget due to two factors: lower research operating costs due to greater
utilisation of in-house academic resources; and reduced contracted service costs for Lincoln-Telford campus due to lower
student numbers.
• Depreciation was 19% below budget due the impact of the $34.8m booked at the end of 2014 for impairment of buildings,
which was not anticipated during the 2015 budget process.
• Due to uncertainties and the nature of the items, the following were not included in the 2015 annual budget preparation
and approval process: insurance recoveries of $27.4m; building demolition expenses of $1.9m; Lincoln Science Hub project
expenses of $1.4m; and earthquake expenses of $1m.
Balance Sheet
• Cash and bank accounts were significantly impacted by the $27.4m insurance receipt during the financial year.
• While trade and other receivables are $4.7m up on budget, the $2.9m drop from 2014 shows good progress.
• The $40m reduction in the property, plant and equipment primarily reflects the impact of the $34.8m impairment not
considered as part of the budget process.
• The difference in revenue in advance at the two year ends reflects the projected phasing of research contracts.
Cash Flow Statement
• Cash flow from operating activities was impacted by: revenue from services was $9.6m lower than budget reflecting the
lower trading income referenced above as well as the impact of FarmSafe noted above; the lower cash applied to employees
and suppliers substantially relates to the lower research and Lincoln-Telford campus contracted services and the impact of
FarmSafe noted above; the earthquake expense of $1m; building demolition expenses of $1.9m; and Hub projects expenses
of $1.4m.
• The lower net cash outflow from investing activities reflects the impact of the $27.4m insurance receipts in the year and the
higher term deposits that matured in the year, as well as the lower fixed asset purchases in the year due to project delays.
29. Impact of the Earthquakes
The Event
A series of large earthquakes in September 2010, February 2011 and June 2011 caused damage to most of the
University’s buildings.
Assets affected
Land
A geotechnical investigation of the University land has taken place which supports damage reports and repair schemes being
considered by engineers.
Buildings
All Lincoln campus buildings were cleared for use following an initial assessment of the buildings by engineers.
Several major buildings were severely damaged including Hilgendorf, Union, Burns, Memorial Hall and part of the west wing
of Ivey Hall. All these buildings have been fully impaired. As a result of the decision to close certain buildings, significant
temporary buildings were constructed and opened in the 2013 academic year. In 2015, the Hilgendorf building was demolished
in preparation for campus rebuild initiatives.
Further detailed engineering assessments were undertaken during 2014 and a number of buildings were fully impaired in the
year to 31 December 2014. These include George Forbes, Hudson Hall, Colombo Hall, and Lowrie Hall. Assessments in 2015 have
not identified any further impairments required as of 31 December 2015.
Plant
No material damage to plant has been sustained. All damaged plant has been previously written off.
Impairment Provisions
Structural engineers have been continuously on site since the September 2010 earthquake.
In prior years impairment provisions were made based on engineering assessments and estimates from quantity surveyors.
The impairment provisioning is the best estimate based on the information available. Where estimates from quantity surveyors
have indicated that the cost of repair exceeded the current building valuation, the building has been impaired to nil. Where the
cost of repair is less than the current building valuation a general provision has been created. The general impairment provision
69
70
was increased at 31 December 2014 by $10.1m, bringing the total general provision to $13.6m. The impairment provision created
in 2014 relating to specific buildings was $24.7m. There have been no further impairments or changes to the general provision
in 2015.
Depreciation
Those buildings that were previously impaired to nil have had accumulated depreciation reversed up until the last valuation
date, which was 31 December 2013. The total value of depreciation previously reversed was $1.6m.
Valuation of Buildings
The revaluation of buildings was previously carried out by FordBaker Valuation Ltd at 31 December 2013. This valuation did
not take into account damage to buildings caused by the earthquakes. Loss of service potential is reflected in the charge for
impairment. The revaluation has resulted in a decrease in useful remaining lives for some buildings (related to their compliance
with current building\seismic standards) which, in turn, has increased the amount of depreciation to be charged. The next
revaluation of the buildings is scheduled for 2016.
Insurance
As disclosed in the Statement of Comprehensive Revenue and Expense, insurance reimbursements during 2015 amounted to
$27.4m, in addition to $5.2m received in 2013. Insurance reimbursements are recognised on receipt or when virtually certain.
The University remains in negotiation with insurers. Claims submitted to date are only interim claims and further claims will be
made as costs relating to the earthquakes are identified. As these costs and any future recovery cannot be reliably estimated,
no insurance reimbursement has been recognised during 2015 for any future insurance receipts.
Treatment of Repair and Other Costs
All expenditure incurred to date relating to the costs of remediating the damage caused by the earthquakes has been
recognised as an expense and separately disclosed in the Statement of Comprehensive Revenue and Expense. Any expenditure
which results in an increase in service potential has been capitalised to the relevant asset class. The University is confident that
any expenditures incurred (less insurance excesses) will be successfully claimable from the insurers.
Compulsory Student
Services Fees
Compulsory
Student
Services Fees
For the Year
Ended 31
December 2015
Advocacy
and Legal
Careers Financial
Childcare
Information Support Counselling Support
Health
Services
Sport &
Clubs & Recreational
Media Societies
Facilities
Total
Revenue
Compulsory
Student
Services Fees
177
53
30
19
39
306
77
103
423
1,226
Other income
0
2
0
0
533
361
0
0
1,058
1,954
Total income
177
54
30
19
572
667
77
103
1,481
3,180
Expenses
Expenditure
151
82
5
16
532
695
67
90
1,496
3,135
Surplus/(deficit)
26
(28)
25
2
40
(28)
10
13
(15)
45
All income and expenditure associated with the provision of student services is separately accounted for in the University's
accounting system.
For the year ended 31 December 2015:
Employment Information
The compulsory student services fee was set at $580 (GST
inclusive) per full-time student in 2015.
Providing information about employment opportunities for
students while they are studying.
The fee funds key services for students to assist their
success, retention and overall wellbeing while studying
at Lincoln, Telford campus and through further delivery
arrangements nationwide.
All students except exchange students must pay the fee and
can borrow the amount against their student loan.
Following the introduction of voluntary student unionism
and the establishment of the Student Services Fees, Lincoln
University and the Lincoln University Students’ Association
(LUSA) entered into a collaborative partnership by signing a
service level agreement in December 2013.
The service level agreement outlines the delivery and
performance of student services to ensure the services are
meeting the requirements of students as described below.
Advocacy and Legal Advice
Advocating on behalf of individual students and groups
of students and providing independent support to resolve
problems. This includes advocacy and legal advice relating
to accommodation.
Careers Information, Advice and Guidance
Supporting students transition into post-study employment.
Financial Support and Advice
Providing hardship assistance and advice to students.
Health Services
Providing health care and related welfare services.
Media
Supporting the production and dissemination of information
by students to students, including newspapers, radio,
television and internet based media.
Childcare Services
Providing affordable childcare services whilst parents are
studying.
Clubs and Societies
Supporting student clubs and societies, including the
provision of administrative support and facilities for clubs
and societies.
Sports, Recreation and Cultural Activities
Providing sports, recreation and cultural activities for
students.
71
72
Independent
Auditor’s Report
To the readers of Lincoln University’s and group’s
financial statements and statement of service
performance for the year ended 31 December 2015
The Auditor-General is the auditor of Lincoln University
(the University) and group. The Auditor-General has
appointed me, John Mackey, using the staff and resources
of Audit New Zealand, to carry out the audit of the financial
statements and statement of service performance of the
University and group on her behalf.
Opinion on the financial statements and the
statement of service performance
We have audited:
• the financial statements of the University and group
on pages 32 to 70, that comprise the statement of
financial position as at 31 December 2015, the statement
of comprehensive revenue and expense, statement of
changes in equity and statement of cash flows for the
year ended on that date and the notes to the financial
statements that include accounting policies and other
explanatory information; and
• the statement of service performance of the University
and group on pages 17 to 26.
In our opinion:
• the financial statements of the University and group on
pages 32 to 70:
– present fairly, in all material respects the University
and group’s:
⋅ financial position as at 31 December 2015; and
⋅ financial performance and cash flows for the year then ended;
– comply with generally accepted accounting practice in
New Zealand and have been prepared in accordance
with Public Benefit Entity Standards.
• the statement of service performance of the University
and group on pages 17 to 26 presents fairly, in all
material respects, the University’s and group’s service
performance achievements measured against the
proposed outcomes described in the investment plan for
the year ended 31 December 2015.
Our audit was completed on 2 May 2016. This 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 our
responsibilities, and explain our independence.
Basis of opinion
We carried out our audit in accordance with the Auditor
General’s Auditing Standards, which incorporate the
International Standards on Auditing (New Zealand).
Those standards require that we comply with ethical
requirements and plan and carry out our audit to obtain
reasonable assurance about whether the financial
statements and the statement of service performance are
free from material misstatement.
Material misstatements are differences or omissions of
amounts and disclosures that, in our judgement, are likely
to influence readers’ overall understanding of the financial
statements and the statement of service performance. If we
had found material misstatements that were not corrected,
we would have referred to them in our opinion.
An audit involves carrying out procedures to obtain
audit evidence about the amounts and disclosures in the
financial statements and the performance information. The
procedures selected depend on our judgement, including
our assessment of risks of material misstatement of
the financial statements and the statement of service
performance, whether due to fraud or error. In making those
risk assessments, we consider internal control relevant
to the preparation of the University and group’s financial
statements and statement of service performance in order
to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the University and group’s
internal control.
An audit also involves evaluating:
• the appropriateness of accounting policies used and
whether they have been consistently applied;
• the reasonableness of the significant accounting
estimates and judgements made by the Council;
• the adequacy of the disclosures in the financial
statements and the statement of service performance;
and
• the overall presentation of the financial statements and
the statement of service performance.
We did not examine every transaction, nor do we guarantee
complete accuracy of the financial statements and the
statement of service performance. Also we did not
evaluate the security and controls over the electronic
publication of the financial statements and the statement of
service performance.
We believe we have obtained sufficient and appropriate
audit evidence to provide a basis for our audit opinion.
Responsibilities of the Council
Independence
The Council is responsible for preparing financial statements
that comply with generally accepted accounting practice in
New Zealand and present fairly the University’s and group’s
financial position, financial performance and cash flows.
When carrying out the audit, we followed the
independence requirements of the Auditor-General, which
incorporate the independence requirements of the External
Reporting Board.
The Council is also responsible for preparing a statement
of service performance that presents fairly the University’s
and group’s service performance achievements measured
against the proposed outcomes adopted in the
investment plan.
In addition to the audit of the University, we have carried
out an assurance engagement to provide a report on the
University’s Performance-Based Research Fund external
research income. This engagement is compatible with those
independence requirements.
The Council’s responsibilities arise from the Crown Entities
Act 2004 and the Education Act 1989.
Other than the audits and this engagement, we have no
relationship with or interests in the University or any of
its subsidiaries.
The Council is also responsible for such internal control
as it determines is necessary to enable the preparation of
financial statements and statement of service performance
that are free from material misstatement, whether due
to fraud or error. The Council is also responsible for the
publication of the financial statements and the statement of
service performance, whether in printed or electronic form.
Responsibilities of the Auditor
We are responsible for expressing an independent opinion
on the financial statements and the statement of service
performance and reporting that opinion to you based on
our audit. Our responsibility arises from the Public Audit Act
2001.
John Mackey
Audit New Zealand
On behalf of the Auditor General
Christchurch, New Zealand
73
74
Quick Reference
Facts and Figures
Total Enrolled Students (Head Count)*
2015
2014
5,819
5,927
PhD Degrees
278
266
Master’s Degrees
231
206
54
46
Bachelor with Honours
Postgraduate Diplomas and Certificates
71
75
Graduate Diplomas and Certificates
68
77
Bachelor Degrees
1524
1644
Diplomas
369
299
1953
2327
Certificates
Certificate of Proficiency Undergraduate and Postgraduate
533
193
English Language Programmes
216
105
STAR
763
849
Full-time
1,904
2,001
Part-time
3,915
3,926
5,819
5,927
Male
3,144
3,464
Female
2,675
2,463
5,819
5,927
Domestic
4,718
4,981
International (Head Count)
1,104
954
China
506
447
Japan
98
35
United States
97
77
Current Top 10 Countries
Malaysia
43
45
India
36
26
Indonesia
28
19
Germany
22
22
Norway
22
17
Viet Nam
19
16
Papua New Guinea
18
37
215
213
Rest of the World
75
76
Equivalent Full-time Students - EFTS
2015
2014
Domestic
2,187
2,303
747
681
2,934
2,985
International
Total
2015
2014
Postgraduate
Qualification Completions
207
219
Undergraduate
439
464
Sub-Degree (Combined LU & Telford)
555
542
Entry Level (excluding English Language Qualifications)
156
182
2015
2014
71
72
$21,006
$22,622
Staffing (Full-time Equivalents)
2015
2014
Academic Staff
235.7
231.2
Research and Technical Staff
114.6
115.0
Historic figures may differ from original published figures to reflect revised data.
External Research Revenue ($000)
Trading and Operational Staff
43.5
41.4
Administrative and Support Staff
288.2
271.4
Total Staff
682.0
659.0
Group Financial Performance and Position
2015
$000
2014
$000
Total Revenue
140,206
115,616
Total Expenditure
122,375
117,286
17,831
(1,670)
259,856
244,869
45,916
48,767
213,940
196,102
Net Surplus/(Deficit)
Total Assets
Total Liabilities
Equity or Net Assets
www.lincoln.ac.nz
0800 10 60 10 in New Zealand
+64 3 423 0000 international

Annual Report 2015 - Lincoln University

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