Items 1.1 Apologies, 1.2 Special Leave, 1.3 Starring of Items, 1.4 Approval of Non-Starred Items, 1.5.1 Reports of the Membership Committee, 2 Confirmation of Minutes of Previous Meetings, 3 Chancellor’s Business, 4 Vice-Chancellor’s Business and 5 Discussion of governance issues were starred and discussed at the meeting.

Council resolved on the motion of the Chairman:

‘that all items on the agenda not starred be adopted without discussion, and the action recommended be taken or the information therein noted’.

RESOLUTION CL5/2005/102

Council received and noted the report of meeting 1/2005 of the Membership Committee of Council held on 15 July 2005.

(File RMO1997/1107)

RESOLUTION CL5/2005/103

Council noted that Membership Committee considered impending amendments to the Monash University Act 1958 and the ramifications these amendments might have on the current and future membership of Council.

(File RMO1997/1170)

RESOLUTION CL5/2005/104

Council noted that a recommendation relating to Mr Hutchinson would be considered at meeting 2/2005 of Membership Committee.

RESOLUTION CL5/2005/105

Council noted that Dr Leanne Rowe’s initial Governor-in-Council appointment was for a term commencing 15 June 2005 and ending 31 December 2007.

RESOLUTION CL5/2005/106

Council approved the appointment of Mr Ian Pyman to fill a casual vacancy for a term expiring 31 December 2005 and re-appointment for a further term commencing 1 January 2006 and expiring 31 December 2008.

RESOLUTION CL5/2005/107

Council approved the re-appointment of Ms Penny Hutchinson for a term commencing 1 January 2006 and expiring 31 December 2008.

(File RMO1997/1107)

In response to discussion, Council noted that specific skills other than those specified in the Council Member Skills Statement could be included under the heading "Other".

RESOLUTION CL5/2005/108

Council:

• approved the document Guidelines for completion of the Summary of Council Member Skills Matrix;

• noted the supporting document Description of Skills Set;

• approved that the Secretary to Council forward to ongoing and new members of Council the document Council Member Skills Statement for completion; and

• noted that the data returned via the Council Member Skills Statement would be transcribed to the Summary of Council Member Skills Matrix.

(File RMO1997/1107)

RESOLUTION CL5/2005/109

Council noted the amended contents of the Resource Manual provided to all new members of Council.

(File RMO1997/1107)

RESOLUTION CL5/2005/110

Council received and noted the report of meeting 2/2005 of the Membership Committee of Council held on 21 July 2005.

(File RMO1997/1107)

RESOLUTION CL5/2005/111

Council approved for submission to the Minister of Education and Training, the Honourable Lynne Kosky MP, the ranked shortlist of nominees to fill the vacancy created by the retirement of Mr John Hutchinson for a term commencing 1 January 2006 and ending 31 December 2008 as detailed in the document provided to members.

(File RMO1997/1107)

The Minutes of meeting 4/2005 held on 11 July 2005 were circulated.

RESOLUTION CL5/2005/112

Council confirmed the Minutes of meeting 4/2005 held on 11 July 2005.

RESOLUTION CL5/2005/113

Council approved a change of venue for meeting 6 (26 September) from Gippsland to Clayton Campus.

(File RMO1998/2347)

The Vice-Chancellor thanked Council for the opportunity to provide a State of the University address and spoke to the following matters:

Council was advised that a range of evaluation methodologies had been implemented to obtain feedback that was then used by the University to monitor and review its activities. The Monash Experience Questionnaire, last undertaken in 2003, would be repeated in 2005 while a revised Unit Evaluation process had been implemented, with good response levels, during semester 1 (2005).

(Secretarial note: the Unit Evaluation Reports, by faculty and the unit code, are available at the following url:

http://www.adm.monash.edu.au/cheq/evaluations/Unit_Evaluations/unit-eval-reports.html )

Referring to data derived from the Course Experience Questionnaire, the Vice-Chancellor noted that while time series data indicated that Monash had progressively improved its performance to close to that of the Go8 average, Monash aspired to be better than average and was working to improve these outcomes.

In June 2005, it was announced that Monash would lead two national Centres of Excellence (funding of $24.5 million) and be a partner in another three Centres of Excellence. Further, of the twenty-four Federation Fellowships announced at the same time, three of the fellows were, or would take up positions, in faculties at Monash.

Commenting on indicators of Monash research performance over recent years, and in comparison to other Go8 universities, Council was advised that research revenue had steadily increased in the period 2000 to 2004. This improvement was achieved in an environment of both improved performance and an increase in the amount of available research funding.

Overall, research performance indicators signalled that while Monash was performing well in some areas and continuing to improve in others, strategies including mentoring, encouraging increased numbers of grant applications and improved support for researchers and the Research Office should provide improved outcomes over the coming years.

The Vice-Chancellor advised Council that the recently completed Research Review had provided a range of recommendations including increased administrative support to the Research Office, revisions to the Research and Research Training Plan, greater accountability for research performance, an emphasis on existing strengths and competitive advantages such as partnerships with hospitals and the CSIRO, maximising the benefits of the co-location of the Synchrotron and leveraging the benefits of diverse campus locations.

To maximise the benefits of Monash’s discipline mix, eight to ten "Institutes" would be established to foster and progress cross-disciplinary/faculty research.

Concluding the section on research, Council was advised that a Research Quality Framework, similar to the one introduced in the United Kingdom, would be introduced which would assess both the quality and impact of research and may result in some shift in funding between institutions.

Council noted advice that the annual cycle of planning and evaluation was now established and supporting the Monash Planning Pyramid. Other initiatives in place included a senior management development program, the incorporation of occupational health and safety requirements into the management framework and an ongoing focus on preparations for the 2006 AUQA visit.

The Vice-Chancellor also advised Council that he was optimistic that the University would achieve a Higher Education Workplace Reform Requirements (HEWRR) compliant enterprise agreement within the government-defined timeframe.

Matters discussed by the Vice-Chancellor included that the consolidated revenue of the Monash group was approaching $1 billion; the operating result, while comfortably positive, remained generally flat and while Monash had the largest borrowings of all Australian universities, it had significant current assets and a carefully maintained and monitored liquidity ratio.

Outlining the major sources of revenue, Council was informed that while student fee income was a major source of revenue, HECS contributions had gradually increased over time while Commonwealth Government Operating Grants had declined.

Elaborating on the components of student fee revenue, it was noted that while international student fee income was the major component ($171 million in 2004), domestic undergraduate student fee income had increased from $2 million in 1998 to $15 million in 2004. On the importance of fee revenue, the Vice-Chancellor noted that following a stellar year in 2004, international fee-paying enrolments declined by 18% in semester 1 2005. Remedial strategies put in place in semester 2 had largely arrested the decline in most faculties, with the exception of the Faculty of Information Technology.

Concluding the section on Finance, the Vice-Chancellor advised Council that the proposed VSU legislation preventing universities from collecting amenities/service fees would, if passed in its current form, result in $13.7 million in amenities and service fees not being collected. Monash, in consultation with student associations, would work to maintain essential services which would require the University to supplement voluntary fees by approximately $4.5 million in the 2006 budget.

The Vice-Chancellor commented on a range of indicators including the:

• continued gradual increase in the percentage of women employed in senior positions resulting in Monash being ranked 3^rd of the Go8 universities for female staff employed at Level D and above;

• increased service levels provided to the increasing number of students registered with the Disability Liaison Unit;

• disappointing level of Australian indigenous student enrolments at Monash and the strategies in place to assist indigenous students access Monash programs; and

• resulting increase in equity scholarships, bursaries and access programs funded via targeting 20% of the HECS fee increase towards equity areas.

Construction of the new campus had commenced with an expected completion date of 2007. Establishment of the Medical School was also well progressed. While commencing student numbers in 2005 were down on 2004, the projected commencing numbers for 2006 were promising.

Enrolment levels at the campus continued to be strong. Emphasising the improved relations with government and the university sector, the Vice-Chancellor informed Council that Pro Vice-Chancellor, Professor Tyrone Pretorius had been invited to the inaugural meeting of the South Africa Vice-Chancellor’s Committee (equivalent to the AV-CC).

Matters discussed included the options for STRIP 2 and 3 and the possibility of government funding to assist with the project, the concept of technology and innovation clusters in partnership with the CSIRO, industry and the Synchrotron, the need to monitor and revitalise the campus’ building stocks and centralising the Institute of Performing Arts at the campus.

With Stage 1 incorporating the new building nearing completion, a proposal for an externally funded development of the western end of the campus was under consideration. Further, the feasibility of a permanent display of the art collection was under consideration.

Major initiatives included the ongoing implementation of greater campus autonomy via greater line management and budget responsibility (faculties to retain accountability for academic standards), near completion of the Gippsland Education Precinct and an ongoing emphasis on developing the research agenda at the campus.

The campus was evolving into a centre focussing on health and well being with the addition of programs in physiotherapy, occupational therapy, social work and psychology. Noting that early childhood education had performed well at the campus and with the transfer of sport and outdoor recreation programs to the campus, the Vice-Chancellor noted that these initiatives would significantly transform the campus.

Confirming recent previous advice to Council, the Vice-Chancellor advised that the proposed joint development of the campus was still under consideration by the Department of Education and Training. Academic programs that might be developed at the campus included "built community" and "community building" themes.

Construction of the new building had been approved and funded externally via a lease back arrangement to the University. Further, the existing Manning building would be renovated.

The Vice-Chancellor outlined to Council some of the current major initiatives including the partnership between the Victorian State Government, Synchrotron, CSIRO and Monash based on the Clayton Campus, the establishment of regional advisory bodies for Gippsland, Peninsula and Berwick Campuses and regular meetings with the City of Glen Eira regarding the development of Caulfield Campus, and the role of the Pro Vice-Chancellor (Business and Industry) in improving engagement and linkages with industry.

In summary, the Vice-Chancellor advised that a wide range of initiatives were underway with real progress being made in the areas of research, education and management. Progress was also being made in renewing the supporting infrastructure, the differentiation of roles of the smaller campuses along with the ongoing development of the Malaysia and South Africa Campuses.

Concluding his presentation, the Vice-Chancellor advised members that Monash was improving its engagement with a wide range of stakeholders and ensuring that the financial position of the University was sound.

During the address to Council, members requested additional details on a number of issues. These included:

• in response to questions relating to unit evaluations and the MEQ, members were advised that the outcomes provided a signal (where statistically valid) and that unsatisfactory outcomes would be addressed. The process to achieve this would be discussed at the next meeting of the Committee of Associate Deans Teaching;

• expanding on the financial performance of the University, the Vice-Chancellor noted that whereas seventeen universities had reported deficits, Monash was performing as well as the bulk of the Go8 universities noting that several of them had larger financial reserves and therefore received a greater return on investments;

• in response to a question on areas where Monash had exposure, Council was reminded of the importance of the revenue stream generated by international fee-paying students;

• noting that the equity indicators might provide a different picture if Monash compared itself against all universities rather than the subset of Go8 universities, the Vice-Chancellor advised Council that Monash was looking to extend Monash College programs to provide additional equity-based pathways for entry to Monash; and

• responding to a question on the importance of the revenue stream via international student enrolments, Council was advised that the matter was being addressed and that a report on this would come to Council, however, it was preferred that the report await the appointment and involvement of the Deputy Vice-Chancellor (International).

Council members thanked the Vice-Chancellor, with acclamation, for his report and the Chancellor congratulated the Vice-Chancellor for his thorough and insightful State of the University address. (Secretarial note: a copy of the State of the University PowerPoint presentation is attached to the Minutes.)

RESOLUTION CL5/2005/114

Council noted the advice of the Vice-Chancellor.

(File RMO1998/2347)

The Chancellor invited the Secretary to Council to outline the changes to the Monash University Act 1958.

The Secretary outlined to Council the major changes to the Monash University Act 1958 and directed their attention to the following:

Section 6 Council responsibilities

Section 7 (4) Composition of Council

Section 8 Terms and conditions of office of Council members

Section 9 (5) Vacation of office

Section 10 Council’s power of removal

Section 19 Council member’s responsibilities

Section 19 A Declaration of Interests of Council members

RESOLUTION CL5/2005/115

Council received and discussed the amendments to the Monash University Act 1958.

(File RMO1997/1170)

The Chancellor invited the Secretary to Council to introduce discussion on the National Governance Protocols and Monash’s level of compliance with the Protocols.

Council discussed the document Compliance with the National Governance Protocols and noted those areas where Monash was deemed compliant in 2004 and those protocols where Monash would be compliant in 2005 due to the recent changes to the Monash University Act 1958.

Following discussion of Protocol 3, the Secretary referred members to Protocol 10 which states that the governing body is required to oversee controlled entities.

During discussion of Protocol 10, members noted the following:

• a document detailing those areas where Monash-controlled entities currently did not comply with some aspects or could improve on compliance with sections of this Protocol;

• the Secretary to Council would write to the Chairpersons of controlled entities re the appointment of external board members;

• the board of each controlled entity should establish and adopt an appropriate skills matrix for board members; and

• the board of each controlled entity was to ensure that its statement of governance principles included an appropriate policy on declaration of conflicts of interest.

Further, to ensure that Council fulfilled its role of providing proper stewardship of controlled entities, Council made the following resolutions:

RESOLUTION CL5/2005/116

That a register of directors of controlled entities be reviewed annually by Council.

RESOLUTION CL5/2005/117

That all periodic reporting by controlled entities to Resources and Finance Committee and Council include a listing of directors and their category of appointment.

RESOLUTION CL5/2005/118

That the following guidelines for the annual monitoring of the governance of controlled entities be adopted:

For each controlled entity Council will:

• monitor the activities of controlled entities by considering business plans, reviewing performance against budget and reviewing annual reports (including financial statements);

• consider annually whether:

1. the entity's board possesses the skills, knowledge and experience necessary to provide proper stewardship and control of the entity;

2. the entity's board has adopted and during the past 12 months has evaluated a written statement of its own governance principles;

3. the entity's board has documented a clear corporate and business strategy which reports on and updates annually the entity's long-term objectives and includes an annual business plan containing achievable and measurable performance targets and milestones; and

4. there are any material issues concerning the entity which should be drawn to the attention of Council.

• consider any other matter concerning the entity referred to it; and

• approve any proposed amendments to a controlled entity's constitution which have been submitted for approval.

RESOLUTION CL5/2005/119

Council received the document Compliance with the National Governance Protocols and discussed Council’s role in ensuring that Monash complied with the requirements detailed in the National Governance Protocols.

(File RMO2004/1412)

RESOLUTION CL5/2005/120

Council:

• accepted the offer of a twenty year loan facility offered to the University by the ANZ Banking Group Ltd; and

• authorised any two of the Vice-President (Finance), Director – Corporate Finance and/or Treasurer to sign all documents relating to this facility on behalf of the University.

(File RMO1998/0844)

RESOLUTION CL5/2005/121

Council approved Mr Peter Marshall, Vice-President (Administration) and Mr David Pitt, Vice-President (Finance) as persons who may counter-attest the affixing of the seal of Monash University in accordance with Statute 8.1 – The Seal of the University.

(File RMO1997/0889)

The next meeting of Council is scheduled to be held at 5.00 pm on Monday, 26 September 2005 however, the meeting has been relocated to the Sir George Lush Room, Clayton Campus.