5 December 2007 - Senate Minutes

Present:	Mr Terry Budge (Chair) Prof. John Yovich (Vice Chancellor) Mr Brian Aitken Ms Janice Bowra Prof. Stuart Bradley Ms Alison Gaines Mr Gerry Georgatos Mr Steve Harris Mr Philip Hocking Mr Garry Hunt Mr Tony Iannello Mr Lloyd Johnson Dr Marian Kemp Judge Kate O’Brien Dr Lyndy Scott Dr Stewart Washer
Secretary:	Mr Jeremy Rigg
Observers:	Mr Ian Callahan (DVC – Corporate) Prof. Gary Martin (DVC – Enterprise & International) Prof. Jim Reynoldson (DVC – Research) Prof. Jan Thomas ( DVC – Academic) Mr John Pike Mr Robin Lees Mrs Julie Keene (Item 5 only)
Apologies	Prof. Nick Costa

1. MEMBERSHIP
2. APOLOGIES
3. DECLARATIONS OF INTEREST (MURDOCH UNIVERSITY ACT s17A)
4. VICE CHANCELLOR'S REPORT
5. 2008 BUDGET
6. SUMMER COMMITTEE
7. RATIFICATION OF STATUTE AMENDMENTS
8. ANNUAL QUALITY REPORT TO SENATE
9. CONFIRMATION OF PREVIOUS MINUTES
10. ACADEMIC COUNCIL
11. AUDIT & RISK MANAGEMENT COMMITTEE
12. HONORARY AWARDS & CEREMONIAL COMMITTEE
13. LEGISLATION COMMITTEE
14. RESOURCES COMMITTEE
15. OFFICIAL SEAL
16. SENATE MEETING DATES FOR 2008

1.MEMBERSHIP

The Chancellor informed the Senate Dr Marian Kemp has been elected as a staff representative for a term of 3 years and welcomed her to the meeting. 
Senators also noted the annual student guild elections had recently concluded with Mr Gerry Georgatos re-elected for a further term and Mr Reece Harley (immediate past President of the Guild) elected with effect from 1 January 2008. Mr Harley succeeds Mr Lloyd Johnson.
The Chancellor thanked Mr Johnson for his service to the University community and Senate.  In response Mr Johnson expressed his appreciation for the help and support he had received during his tenure. His time had been both an enjoyable and eye-opening experience and revealed the many challenges facing the University. 

The Chancellor noted that it was a particularly sad occasion as Judge Kate O’Brien has also announced her retirement and this was her last meeting.  Judge O’Brien has been on Senate since her appointment (by the Governor) in May 2000.  From July 2002 to July 2006 she served as Pro-Chancellor and has Chaired the Legislation, Audit & Risk Management Committees as well as other working parties during her tenure.  She has played a significant role in improving the foundations on which the University was established and has offered tremendous support and encouragement to the University.  The Murdoch University Art Board has also prospered thanks to her help in raising the board’s profile and improving its governance structure. The board is fortunate that Judge O’Brien has decided to retain her position as a member. The Chancellor also noted that the University had recently decided to bestow an unprecedented dual Honorary Degree which demonstrated the extent to which the University is indebted to her for years of diligent service. 

Judge O’Brien expressed her regret at leaving but was buoyed by the fact the University now has a strong and capable executive management team built up in recent years by Prof Yovich.  She also expressed her thanks for the support from external members of Senate and staff over the years and wished the University well in its future endeavours.

2.APOLOGIES

Prof Nick Costa was an apology for the meeting. 

3.DECLARATIONS OF INTEREST (MURDOCH UNIVERSITY ACT s17A)

There were no declarations of interest

4.VICE CHANCELLOR'S REPORT

The Vice Chancellor noted at the commencement of his report that the recent change of Federal government may have implications for the University sector.  Senate was advised that work is already underway in relation to developing briefs on policy issues and on current projects for discussion with incoming members of government.  It is hoped that an  overview will be provided at the first Senate meeting for 2008.
The Vice Chancellor spoke to the following items in his written report:

• Mr John Stringer, a former curator of the Kerry Stokes Collection and immediate past Chair of Murdoch University Art Board passed away on 13 November 2007.  He will be sadly missed both locally and internationally and the University has passed on its condolences to his family.  The Art board will acknowledge his contribution in an appropriate manner.
• Following the retirement of Prof. Peter Newman, a new Professor of Sustainability is being recruited to continue the development of the University and its Institute of Sustainability and Technology Policy as a leader in this important and growing sustainability.  In addition, as part of the organisational changes a new Faculty of Sustainability, Environmental and Life Sciences will come into being from 1 January 2008 and a Faculty Head will be appointed in the near future. 
• It was noted that the recently signed 3 year Commonwealth funding agreement provides a measure of revenue stability and will result in an extra $6.5 million in 2008.     
• In response to a query at the October meeting of Senate, Department of Education Services statistics were tabled which detailed projected school leaver populations for the period 1998 – 2015.  It was also noted that 2006 Census information indicates the future school leaver population appears to be shifting to the northern and southern expansion corridors which may provide new catchment opportunities for ECU and Murdoch given their relative proximity to the railway corridor.  

The Vice Chancellor presented additional data to Senate detailing the top ten Universities by level of investment income, and plotting Australian universities on a grid showing investment income versus research intensivity (that is research income earned per staff member).
The Group of Eight Universities showed clear advantage in relation to investment income, based on endowment funds that had built up over their longer life spans.  However, as measured by research intensivity Murdoch featured in 9th place.  Being research intensive is expensive as research funding is increasingly subject to the provision of matching funding by the Universities.  Those universities with substantial investment income are clearly advantaged in this regard and are able to potentially dominate the allocation of funds from this finite research pool. This serves to highlight the need to grow Murdoch’s income from its endowment fund and commercial operations, and management is actively considering ways in which to achieve this goal quickly but prudently.

Student Load Trends – 2003 to 2007 inclusive  
The Deputy Vice Chancellor – Enterprise & International was invited to update members with recently compiled data on student load and student number trends for the 5 year period to end of 2007.
In overall terms student load has increased 16% over the period and 9% over the 2006 level.  By comparison, actual student number increases were 18% and 8% respectively.  Members noted that international student numbers had increased markedly albeit off a low base.

5.2008 BUDGET

Senate noted the minutes of the meeting of the Resources Committee held on 21/11/2007.  The Chair of the Committee noted the minutes that had been tabled were draft in nature.
The Deputy Vice Chancellor (Corporate) spoke to the budget papers and gave a presentation outlining the principal components and highlighting particular issues of concern.  In particular the meeting noted:

• A graphical representation of actual and projected revenue versus results figures for the period 2005-2008 inclusive.  This displayed the projected revenue growth but reducing net profits, which is not a sustainable trend;
• The consolidated 2007 budget result is expected to be in surplus, but this includes some one-off grant income (such as the $19.5m for construction of the IIID building) which are not available as cash for the University to access.  This obviously masks the actual financial outcome;
• The 2008 operating budget reveals a deficit of $440K.  This result has been arrived at following many iterations and includes significant cost reductions. It was stressed the 2008 budget is again a finely balanced one and cannot accommodate much slippage;
• The main areas of risk to the budget identified include not achieving student numbers (onshore and offshore), inability to retain key staff, insufficient external fund raising and the challenges of existing ageing infrastructure;
• The budget has allowed for a 300 ($3.3M) student shortfall under the Commonwealth Government Scheme.  Whilst management remain reasonably confident of its student load forecast, the 300 place eventuality will bring forward by a year (to 2009) the decline in performance as previously postulated to Senate and Resources Committee.
• The slight decline in relative research income performance was discussed.  It was noted that some Commonwealth grant allocations are dependent upon lagging research performance indicators, and poor reporting of 2005 publication levels will impact these in 2008. This is an area that is being addressed but the systemic and inbuilt delays in recognising improved performance means it will take some time to turn around. It was confirmed that research work is not under pressure due to other initiatives;
• The Resources Committee meeting considered liquidity issues as cash levels will be drawn down considerably in the 2008 year. This is not expected to create any problems, but will be carefully monitored by management.  The University is able to borrow funds if required, subject to its capacity to repay funds.  It was also noted that the cash forecast excluded the endowment funds; 
• Senators were taken though the planned capital works program for 2008 noting that the maintenance budget had to be significantly increased to address urgent and critical maintenance and infrastructure issues that may otherwise potentially seriously impact on its operational state;
• In response to a question, the Deputy Vice Chancellor – Corporate advised the impact on staff numbers in 2009 was unknown but the Murdoch 2010 project is designed, in part, to allow informed and considered strategic decisions to be made that will set up the University for a durable and successful future.

Staff/student ratio will be considered by the 2010 project but it is still a work in progress. Additionally the project will result in the deployment of a range of tools by which management performance can be measured as well as improve decision making processes in critical areas.  Data quality has been identified as an issue and further work is required to improve this area. 
Resources Committee have called for some definition of the costs and benefits of the 2010 project at is first meeting in 2008.  Some technology and process changes have emerged and are being installed throughout the organisation.  Focus remains on the quality of the teaching and learning experience and the overall student experience.  Sizing the University to meet the projected demand and focus on its core strengths and advantages is probably the key issue that needs to be resolved to allow the University to move forward with certainty and confidence. 

The meeting noted that Resources Committee had recommended the budget but subject to a further review in February 2008 when the 10 year forecast can be scrutinised along with other requests it has made to management.

Resolved: S/52/2007

To approve the 2008 University budget which may be further reviewed in February 2008 following receipt and in light of other financial information to be presented by University management

6.SUMMER COMMITTEE

As in previous years a Summer Committee consisting of the Chancellor, Deputy Chancellor, Vice Chancellor and two other Senators will, if necessary, exercise delegated responsibility on behalf of Senate between 05/12/2007 and the first meeting of Senate in February 2008. Senate was asked to appoint Mr Tony Iannello and Prof Nick Costa to the Summer Committee for the 2007/2008 summer period.

Resolved: S/53/2007

To appoint Mr Tony Iannello and Prof Nick Costa to the Summer Committee for the 2007/2008 summer period

7.RATIFICATION OF STATUTE AMENDMENTS

On 24/10/2007 Senate approved the amendments to Statute 8 – Interpretations (S/46/2007), Statute 23 - Student Discipline (S/46/2007) and Statute 17 – Guild of Students (S/44/2007). These statutes have been dealt with in accordance with s 25(1)(b) of the Murdoch Act and were re-presented to Senate for ratification.

Resolved: S/54/2007	(i)	To ratify the amendments to Statute 8 – Interpretations in the terms attached (changes marked up)
	(ii)	To ratify the amendments to Statute 23 - Student Discipline in the terms attached (changes marked up)
	(iii)	To ratify the amendments to Statute 17 – Guild of Students in the terms attached (changes marked up)

Resolution S/54/2007 was passed by an absolute majority of Senate, in accordance with the requirements of section 25 of the Murdoch Act 1973.  Mr Georgatos abstained from voting on the resolution.

8.ANNUAL QUALITY REPORT TO SENATE

Prof Jan Thomas spoke to the paper and briefly summarised the actions that have been initiated to monitor the implementation of the AUQA recommendations and affirmations requested by AUQA in September 2006.  Senators were also briefed, as required by AUQA, on the University’s Quality Management Framework and its rationale which was duly noted.

9.CONFIRMATION OF PREVIOUS MINUTES

The minutes of the meeting held on 24 October 2007 were approved subject to including Mr Aitken as an attendee for that meeting.

10.ACADEMIC COUNCIL

Senate noted the minutes of the Academic Council meeting held on 31/10/2007. There were no recommendations to Senate.

11.AUDIT & RISK MANAGEMENT COMMITTEE

Senate noted the minutes of the Audit Risk & Management Committee meeting held on 16/11/2007. There were no recommendations to Senate.

12.HONORARY AWARDS & CEREMONIAL COMMITTEE

Senate noted the minutes of the Honorary Awards & Ceremonial Committee held on 14/11/2007 which approved the award of Honorary degrees.  There were no recommendations to Senate.

13.LEGISLATION COMMITTEE

Senate noted the circular resolution of the Legislation Committee (LC/10/2007-LC/13/2007 inclusive) and resolved in accord with the recommendations as follows:

Resolved: S/54/2007	(i)	to approve the attached amendments to the Postgraduate Coursework Regulations Schedule 2 (Postgraduate coursework qualifications) (AC/156/2007)
	(ii)	to approve the attached amendments to the Postgraduate Coursework Regulations Schedule 2 (Postgraduate coursework qualifications) (AC/114/2007(iv))
	(iii)	to approve the attached amendments to the Intellectual Property Regulations - Schedule 1 (Dictionary) (AC/123/2007)
	(iv)	to approve the attached amendments to the Bachelor Degree Regulations and the Postgraduate Coursework Regulations Schedule 2 (Postgraduate coursework qualifications) (Ac/93/2007(iv) and AC/98/2007)

14.RESOURCES COMMITTEE

The 2008 budget resolution was considered by Senate at item 5 of the agenda. Senate resolved in accordance with the recommendations of the committee as follows:

Resolved: S/53/2007	To approve the attached payments for the period 22/09/2007 to 09/11/2007 inclusive
Resolved: S/53/2007	To recommend that Senate approves the write-off of $112,556.60 representing unrecoverable student loans and fees for the period to 30 November 2007.

15.OFFICIAL SEAL

Senate noted the official seal report provided in accordance with resolution S/54/2004 and S/51/2007.

16.SENATE MEETING DATES FOR 2008

The meeting dates for 2008 were noted.

The meeting concluded at 6:20pm