Council Meeting 5-2008

MINUTES

There were present:

Dr A Finkel AM, Chancellor, Presiding
Mr P Ramler AM, Deputy Chancellor
Dr L Rowe AM, Deputy Chancellor
Professor R Larkins AO, Vice-Chancellor and President
Professor J Godfrey, President of Academic Board
Ms L Adler AM via teleconference
Mr J Bender
Mr Y Blacher
Ms L Boston
Professor C Bourke MBE
Mr S Buggle
Dr C Curwen CVO OBE
Mr S Katariya
Mr B Maxfield
Mr I Nethercote
Mr I Pyman
Mr P Redlich
Professor T Sridhar
Dr C Williams
Dr J Zillman AO

In attendance were:

Professor S Fahey, Deputy Vice-Chancellor (International)
Professor A Shoemaker, Deputy Vice-Chancellor (Education)
Mr R Fairchild, Vice-President (Advancement)
Mr D Pitt, Vice-President (Finance)/Chief Financial Officer
Mr David Pumphrey, Partner, Heidrick & Struggles via teleconference for Item 2.1 Vice-Chancellor Search Process.

Secretary:

Mr T Calder, Director, Executive Services

Observers:

Ms L Chatfield

1 Procedural Matters

1.1 Apologies

Ms Penny Hutchinson was an apology.

Professor Edwina Cornish and Mr Peter Marshall were unable to attend the meeting.

1.2 Special Leave

Mr Yehudi Blacher and Dr Charles Curwen were granted special leave for meeting 6/2008 on 15 September 2008.

1.3 Starring of Items

Items 1.1 Apologies, 1.2 Special Leave, 1.3 Starring of Items, 1.4 Approval of Non-Starred Items, 2.1 Vice-Chancellor Search Progress, 2.2.1 Appointed Councillors whose terms of office expire on 31 December, 2.2.2 Review of the role of University staff on Committees of Council, 2.2.5 Membership of Equal Opportunity Committee, 2.3 Monash University Borrowings 2008/09, 4 State of the University, 5 Report on Monash’s International Strategies and Objectives and 7.1 Seal of the University were ‘starred’ for discussion.

1.4 Approval of Non-Starred Items

Council resolved on the motion of the Chancellor that all items on the agenda not starred be adopted without discussion, and the action recommended be taken or the information therein noted.

2 Business in-camera

2.1 Vice-Chancellor Search Progress

Mr David Pumphrey was in attendance via teleconference.

A document prepared by Heidrick and Struggles titled “Council Update” was tabled at the meeting.

Mr Pumphrey provided Council with an update on progress including:

• total number of candidates approached and applied categorised by country of domicile, gender and current position; and
• number of candidates likely to proceed to the short list stage.

The Chancellor informed Council that the search process had been very thorough and up to six high quality candidates may proceed through to the interview stage.

RESOLUTION CL5/2008/148

Council noted the advice of the Chancellor and Mr David Pumphrey.

For action or noting by: Secretary - Vice-Chancellor Search Committee.

2.2 Membership Committee Report

2.2.1 Appointed Councillors whose terms of office expire on 31 December 2008

The Chancellor introduced the item noting that the Council and Governor-in-Council appointed Councillors with terms expiring 31 December 2008 were:

Ms Penelope Hutchinson – Council appointment
Mr Ian Pyman – Council appointment
Mr Peter Redlich – Governor-in-Council appointment
Dr John Zillman – Governor-in-Council appointment

Council was advised that the Chancellor had spoken to the four Councillors and that Ms Hutchinson was not seeking another term on Council whereas Mr Pyman and Dr Zillman had indicated they would accept another term if one was offered.

Mr Redlich informed Council that he was still considering his position and would discuss the matter with the Chancellor over the coming weeks.

Mr Pyman and Dr Zillman left the meeting while Council discussed the matter.

At the conclusion of the discussion, Mr Pyman and Dr Zillman returned to the meeting and were advised that Council had considered its position and resolved to appoint Mr Pyman for a further 3 year term and recommend to the Minister that Dr Zillman be reappointed by the Governor-in-Council for a further 3 year term.

The Chancellor thanked Councillors for their contributions to the discussion and advised that he would develop a list of candidates for consideration by Membership Committee.

RESOLUTION CL5/2008/149

Council:

• approved that Mr Ian Pyman be reappointed to Council for a further 3 year term expiring 31 December 2011;
• approved that Dr John Zillman be recommended to the Minister for appointment by the Governor-in-Council for a further 3 year term expiring 31 December 2011;
• noted that Mr Peter Redlich would have further discussions with the Chancellor in relation to his membership of Council;
• noted that Ms Penelope Hutchinson would not be seeking a further term on Council; and
• noted that a list of candidates would be developed for consideration by Membership Committee.

For action or noting by: Secretary – Membership Committee.

2.2.2 Review of the role of University staff on Committees of Council

The Chancellor introduced the item noting that all Councillors had received a copy of the consultant's report and highlighted that Membership Committee had given the matter extensive consideration in formulating its recommendation to Council.

The Chancellor invited Councillors' views. Matters raised during discussion included:

• an appropriate compromise would be that members of staff be "attendees" at meetings of Committees of Council;
• that the issue of staff on Committees of a governing body was not adequately covered in the current governance literature;
• the principle of clear separation of roles was the primary issue and if Council accepted that principle then it should be adopted by Council as effective immediately - no "grandfathering".

Councillors raised a variety of related views on the matter including a supported motion that the recommendation be amended to:

• Council approve the proposal that staff, other than elected and ex-officio members of Council, not be appointed to membership of Council Committees.

That is, that the second dot point being:

• note that phasing in of revised Committee memberships, not including members of staff be completed by 2010.

be deleted.

A vote was held, the outcome as follows:

For = 10
Against = 10

In accordance with section 20(2) Decisions of Council of the Monash University Act (1958), which states that:

the Chancellor cast a second vote not supporting the motion to amend the recommendation as supplied with the agenda. 

Councillors were invited to vote on the recommendations as supplied with the agenda being:

That Council:

• approve the proposal that staff, other than elected and ex-officio members of Council, not be appointed to membership of Council Committees; and
• note that phasing in of revised Committee memberships, not including members of staff be completed by 2010.

A vote was held, the outcome as follows:

Yes - approve the supplied recommendations = 14
No - do not approve the supplied recommendations = 04
Abstentions = 02
Total = 20

The recommendations as supplied with the agenda were approved.

RESOLUTION CL5/2008/150

Council:

• approved the proposal that staff, other than elected and ex-officio members of Council, not be appointed to membership of Council Committees; and
• noted that phasing in of revised Committee memberships, not including members of staff be completed by 2010. For action or noting by: Secretaries to Committees of Council.

2.2.3 Committees of Council – length of terms of office

RESOLUTION CL5/2008/151

Council noted that Membership Committee will consider the matter at its next meeting and provide a report to Council.

2.2.4 Draft Councillor Individual Performance Development instrument

RESOLUTION CL5/2008/152

Council approved the draft Councillor Individual Performance Development instrument. For action or noting by: Secretary – Membership Committee.

2.2.5 Membership of Equal Opportunity Committee

A Councillor suggested that the proposed recommendation was ambiguous and would be improved if amended.

Council agreed and the following recommendation was approved.

RESOLUTION CL5/2008/153

Council approved:

• that the membership category for Equal Opportunity Committee be revised from "Four external members of Council" to "Six members of Council including no fewer than two external members of Council"; and
• removed the membership categories of: - Elected staff member of Council - Elected student member of Council

For action or noting by: Secretary - Equal Opportunity Committee.

2.2.6 Membership of Special Professorial Appointments Committee

RESOLUTION CL5/2008/154

Council approved the proposal that the President of Academic Board be added to the membership of Special Professorial Appointments Committee.

For action or noting by: Secretary - Special Professorial Appointment Committee and President of Academic Board.

2.3 Monash University Borrowings: 2008/09

Council was advised that this matter was considered by Resources and Finance Committee by circulation and represented the final tranche of new borrowings ($15m) with the remainder to rollover existing borrowings.

In response to questions, Councillors were advised that while the borrowing period was the financial year 2008-2009 the new funds would be drawn in 2008 and that the University’s capital adequacy ratios and requirement to meet bank covenants were all being met and improving. Further, Council was advised that none of the funding would be used as operating expenditure.

RESOLUTION CL5/2008/155

Council approved:

• that Monash University accept the offer of a 20 year loan facility offered by the National Australia Bank Limited.
• that any two of the Vice-President (Finance), the Divisional Director – Corporate Finance and/or Director, Treasury be authorised to sign all documents relating to this facility on behalf of the University.

For action or noting by: Vice-President (Finance), Divisional Director - Corporate Finance and Director - Treasury.

3 Confirmation of Minutes of Previous Meeting

3.1 Minutes of Meeting No 4/2008

RESOLUTION CL5/2008/156

Council confirmed the Minutes of Meeting No. 4/2008 held on Monday, 14 July 2008.

4 State of the University

Councillors are invited to note that the PowerPoint presentation provided by the Vice-Chancellor is available via the Council Portal.

The Vice-Chancellor highlighted the following matters:

Research

• total research revenue had remained relatively stable in the period 1994 - 1999 largely due to limited increases in government expenditure however between 2000 and 2004 funding had gradually increased with Monash achieving marked improvements in 2005, 2006 and 2007;
  
• Monash had improved its comparative performance against other Group of Eight Universities however the extent of that improvement was somewhat masked as some Group of Eight Universities included their affiliated research centre income in their total research income figures;
  
• Monash was encouraging researchers to publish in highly reputable and highly cited journals;
  
• challenges within the research portfolio included the competition for high calibre staff, the cost of infrastructure, the need to encourage government to implement full funding for research, the competition between institutes in attracting quality HDR students and the importance of extending international linkages; and
  
• in response to the challenges, Monash was focused on expanding the Monash Innovation Precinct at the Clayton campus and expanding industry engagement, increased funding for research funding via the Education Investment Fund and as an outcome of the Cutler Review, expanding research activity on our offshore campuses and in India and China and widening the catchment of HDR students particularly in countries such as Saudi Arabia, Iraq and Chile.

Education

• unit evaluations show steady improvement since 2005;
  
• Monash had continued its recent improvement in attracting its share of first and total preferences of VCE and I.B. students;
  
• whereas in 2006 Monash had improved outcomes via the Course Experience Questionnaire, 2007 had plateaued;
  
• challenges within the Education portfolio included further improvement in CEQ, MEQ and unit evaluations and to develop, badge and publicise an innovative and exciting educational program; and
  
• in response to those challenges, Monash would continue with the introduction of the Monash Passport Model to enhance the educational experience of students, continue with unit and course rationalisation where appropriate and attend to poorly performing units.

International

• Monash was seeking to maintain the current level of international student recruitment with a focus on attracting quality students rather than increasing student numbers;
  
• Monash Sunway Campus celebrated its 10th Anniversary this year and was continuing to perform well;
  
• Monash South Africa had for the last 3 years bettered budget targets and operated at a diminishing deficit. An expanded report on the campus would be presented to the next meeting of Council;
  
• Prato and the IITB-Monash Research Academy continued to expand their activities and provide important linkages for regional engagement; and
  
• Monash was continuing to focus on progressing collaborative agreements in China however the Sichuan University collaboration had been interrupted due to the recent earthquake in the Sichuan region.

Equity

• overall the number of women in senior positions has steadily increased however the number of women appointed to Level E and above (professorial) had plateaued;
  
• Monash continued to perform well in a range of student equity indicators with the exception of students from remote regions; and
  
• the number of indigenous students participating in and successfully completing Monash programs was continuing to improve.

Finance

• Monash's consolidated revenue had increased from $695m (2000) to $1,389m (2007). The consolidated operating result continued to improve;
  
• 2006 and 2007 core operating results (excluding capital grants and related depreciation) were lower than previous years due to a range of factors including restructuring of the Faculty of Information Technology, allowance for impared loans and the winding up of Monyx and Monash Property Management;
  
• of the three major streams of revenue being Commonwealth Government Operating Grants, HECS and student fee revenue (domestic full fee, international and postgraduate students), revenue from fee paying students continued as the major revenue stream;
  
• domestic fee paying places have been proscribed by government policy resulting in an estimated revenue loss in 2008 of approximately $23m to $24m however the announced replacement Commonwealth Supported Places (CSP), funded at a lower rate than the cost of the course, would result in a significant net revenue loss;
  
• challenges for the finance portfolio include ensuring sufficient cashflow to fund operational expenses and capital developments, managing a difficult budget environment and contributing to an environment where the university has an appropriate cashflow to fund a fair and balanced enterprise agreement; and
  
• other matters raised included good outcomes in student recruitment, the successful program celebrating Monash's 50th Anniversary, the steady progress with fundraising and the continuing focus on environmental sustainability.

In summary, the Vice-Chancellor noted that Monash had made excellent progress in research, education and the student experience; that international initiatives were progressing well; that the University was financially sound but cash poor however plenty of challenges remained.

In response to questions, the Vice-Chancellor agreed that financial constraints on students were impacting on the student experience and student retention however while the University had, and continued to implement, a range of student assistance schemes it would require a change of government policy to significantly improve student's financial position.

Further, the Vice-Chancellor advised that the future of the NCRIS programme was still unclear. In addition the University would need carbon offsets to achieve carbon neutrality.

Council thanked the Vice-Chancellor with acclamation for his presentation.

RESOLUTION CL5/2008/157

Council noted the advice of the Vice-Chancellor.

5 Report on Monash’s International Strategies and Objectives

Professor Stephanie Fahey, Deputy Vice-Chancellor (International), provided Council with a presentation on “The Future of International Engagement”.

Professor Fahey advised Council that notes on her presentation would be available via the Council Portal.

Matters raised by Professor Fahey included:

• The “old” international engagement landscape, characterised by recruitment of international fee paying students, off-shore campus and exchange agreements was being challenged by new trends such as the emerging Education Hubs in Malaysia, Singapore, China and India; developing countries such as India and China investing significant funds in research and research infrastructure and technology advancements such as the “open coursework initiative” at MIT.
  
• Monash’s response to the emerging trends includes establishing comprehensive university-wide international engagement partnerships with selected institutions, enabling research via agreements at a University to University, Industry, HDR and researcher mobility level; developing opportunities for staff and student collaboration and mobility in the area of Education and diversifying Monash’s engagement into regions such as the Middle East.

In conclusion, Professor Fahey advised that in the coming years international engagement would change significantly and that appropriate co-ordination and support of international activities would be needed to ensure appropriate outcomes for Monash.

The Chancellor, on behalf of Council, thanked Professor Fahey for her presentation.

RESOLUTION CL5/2008/158

Council noted the advice of Professor Stephanie Fahey.

6 Matters arising from the Minutes (not dealt with elsewhere in the agenda)

7 General Business

7.1 Use of the University Seal

In response to a question, Councillors were advised that Coles had signed a long term lease, however during the redevelopment phase the store would close for 18 months and then reopen in a new underground location.

RESOLUTION CL5/2008/159

Council noted the report of the Vice-Chancellor dated 13 August 2008 on the affixing of the Common Seal to documents executed under Seal pursuant to Statute 8.1, Section 2.1.5.

8 Next Meeting

The next meeting of Council is scheduled to be held at 4pm on 15 September 2008 in the Advancement Meeting Room, Level 9, Building H, Caulfield Campus.

Further Information Inquiries about any of the business listed above, or on Council matters in general, may be directed to Mr Tony Calder, Director, Executive Services, Room GO6, Administration Building 3a, Clayton Campus, telephone 9905-2010 or via facsimile on 9905-5342.