Council Meeting 8-2006

Meeting 8/2006 of the Monash University Council was held between 4.00 pm and 7.00 pm on Monday, 4 December 2006 in the Devon Room, 700 Blackburn Road, Clayton.

MINUTES

There were present:

Mr J Ellis, Chancellor, Presiding
Mr P Ramler AM, Deputy Chancellor
Dr J Hearn, Deputy Chancellor
Professor R Larkins AO, Vice-Chancellor and President
Associate Professor J Hurst, Chair of Academic Board

In attendance were:

Professor S Parker, Senior Deputy Vice-Chancellor
Professor S Fahey, Deputy Vice-Chancellor (International)
Professor E Cornish, Deputy Vice-Chancellor (Research)
Mr P Marshall, Vice-President (Administration)
Mr R Fairchild, Vice-President (Advancement)
Mr D Pitt, Vice-President (Finance)/Chief Financial Officer

Secretary:

Mr Tony Calder, Director, Executive Services

Observers:

Ms L Chatfield
Ms Madeleine Soederberg
Professor Heinz Kreutz
Mr Richard Robinson
Mr Michael Barnett

PART A

1.  PROCEDURAL MATTERS

The Chancellor, on behalf of Council extended appreciation for the efforts of retiring members Ms J Samms, Ms K Banks-Smith and Mr L Whiteley with a special note of appreciation for the retiring Deputy Chancellor, Dr J Hearn, whose commitment and outstanding contribution to Monash would be celebrated at a function following the meeting.

Council approved the Chancellor’s request that the following items be added to the agenda:

3.2  Appointment of an external member to Membership Committee

3.3  Replacement Councillor for Dr Hearn

9.3  Gippsland Advisory Council Self-Review

11.4  Report of Academic Promotions 2006 (late paper)

Council noted advice that all Councillors would receive the Council Performance Evaluation instrument for completion and return to Ms Lisa Chatfield – Executive Services.

1.1  Apologies

1.2  Special Leave

Professor Sue Davis was granted special leave for meeting 8/2006.

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 Confirmation of Minutes of Previous Meeting, 3 Chancellor’s Business, 4 Vice-Chancellor’s Business, 7 Report of the Audit Committee and 10 Report of the Equal Opportunity Committee.

1.4  Approval of Non-Starred Items

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."

1.5  Confidential Items

1.5.1  Use of the University Seal

RESOLUTION CL8/2006/181

Council noted the report of the Vice-Chancellor dated 24 November 2006 on the affixing of the Common Seal to documents executed under Seal pursuant to Statute 8.1, Section 2.1.5.

For action or noting by: Vice-President (Finance) and University Solicitor.

1.6  Admission of Observers

Authorised observers were admitted to the meeting following confidential items.

2.  Confirmation of Minutes of Previous Meeting

2.1  Minutes of Meeting No 7/2006

RESOLUTION CL8/2006/182

Council confirmed the Minutes of Meeting No. 7/2006 held on Monday, 30 October 2006.

For action or noting by: Secretary to Council.

PART B STARRED ITEMS

3.  Chancellor’s Business

3.1  Chancellor’s Report to Council

RESOLUTION CL8/2006/183

Council received the oral report of the Chancellor.

3.2  Appointment of an external member to Membership Committee

RESOLUTION CL8/2006/184

Council approved that Dr June Hearn be co-opted to Membership Committee for a period ending with the appointment of the new Chancellor.

For action or noting by: Secretary to Membership Committee.

3.3  Replacement Councillor for Dr Hearn

RESOLUTION CL8/2006/185

Council noted that the appointment of a replacement Councillor for Dr Hearn would be finalised by Membership Committee over the coming weeks and submitted to the Executive Committee of Council for approval before the university closes down on the 20 December 2006.

For action or noting by: Secretary to Membership Committee.

3.4  Chancellor’s Report on the Vice-Chancellor’s performance review and objectives for 2007

Secretarial Note: this item was discussed with no observers present.

The Vice-Chancellor was not present when this item was discussed.

The Chancellor outlined to Council the previously approved 2006 performance objectives for the Vice-Chancellor and advised that, following careful consideration, it had been resolved that the Vice-Chancellor met, or exceeded, all of the set 2006 objectives.

Following an overview of the recommendations to Selection and Remuneration Committee, the Chancellor advised Council that the Vice-Chancellor had declined to accept his full performance increment instead opting to receive the average increase awarded to staff in 2006 with the remainder to be donated to the Monash University Foundation.

The Vice-Chancellor’s 2007 objectives in the areas of research, learning and teaching and internationalisation have been set at 15% above the 2006 targets.

The Vice-Chancellor was invited to attend the meeting.

The Chancellor outlined to the Vice-Chancellor Council’s discussion and commended the Vice-Chancellor for his outstanding performance in 2006.

Council congratulated the Vice-Chancellor with acclamation.

RESOLUTION CL8/2006/186

Council noted, with acclamation, the advice of the Chancellor on the outcomes of the Vice-Chancellor’s performance review and noted objectives set for the Vice-Chancellor for 2007.

4.  Vice-Chancellor’s Business

4.1  Vice-Chancellor’s Report to Council

RESOLUTION CL8/2006/187

Council received and noted the Vice-Chancellor’s Report to Council.

4.1.1  Vice-Chancellor’s End of Year Report

A Councillor, querying the number of separation packages offered to staff, suggested that the Minute for item 4.1 at meeting 6/2006 should be revised given the Vice-Chancellor’s report.

In response, the Vice-Chancellor advised that at the time the statement and minute were correct and that subsequent to that article, staff took up an offer to voluntarily leave the university. This action had now put the university in a much stronger position to face what is expected to be a difficult financial environment in 2007 and beyond.

RESOLUTION CL8/2006/188

Council received the report of the Vice-Chancellor.

4.2  Universities Australia

The Vice-Chancellor advised that this matter was submitted to Council to ensure that they were updated as events unfolded.

On the recommendation of the Vice-Chancellor to Council, the second dot point of the proposed recommendation was not considered by Council.

RESOLUTION CL8/2006/189

Council noted the advice of the Vice-Chancellor.

4.3  Annual Plan and Budget 2007

Mr D Pitt, Vice-President (Finance) introduced the discussion on the 2007 budget.

Mr Pitt provided Council with an overview of the main features of the budget including:

• the target budget operating result for 2007 being $43 million or a 4% operating margin;
• the capital expenditure budget, borrowings trajectory and revenue projections;
• faculty budgets and the impact growth in research activity and research staffing has had on budget outcomes;
• given the current borrowing program, it is expected that the university’s debt to equity ratio will hit 25% in 2007;
• given the above ratio, management is investigating ways of eliminating net new borrowings over the next two years;
• some of the major risks that could affect the outcome of the 2007 Budget
• the contribution of controlled entities to the operations of Monash;
• external risk factors and their possible impact on the budget outcome; and
• issues for management to address in the coming year.

Council was invited to note that for the first time the Budget and Annual Plan were presented as a consolidated document with the Annual Plan identifying planned resources including budget ramifications.

During discussion, Councillors discussed a range of matters including operating costs for the Prato Centre, the mechanism for determining fee increases, changes to the accounting treatment for employee entitlements, the need to include some aspects of the marketing plan for international students in the Annual Plan and aspects of the budget forecasts for the Faculty of Medicine, Nursing and Health Sciences, research activities and Gippsland campus.

At the conclusion of the discussion, Council approved the Annual Plan and adapted the 2007 Budget.

RESOLUTION CL8/2006/190

Council received and approved the Annual Plan and Budget 2007.

For action or noting by: Senior Deputy Vice-Chancellor and Vice-President (Finance).

4.4  Academic Plan

Noting advice that Council had over the past twelve months approved the Learning and Teaching, Research and Research Training Management and International Plans, Council approved the overarching Academic Plan.

RESOLUTION CL8/2006/191

Council received and approved the Academic Plan.

For action or noting by: Senior Deputy Vice-Chancellor

4.5  Progress report on the proposal to establish a joint venture Research Institute in partnership with the India Institute of Technology Bombay – the IITB and Monash University Research Academy (IMURA)

The Vice-Chancellor introduced the item noting that the matter was initially discussed at meeting 1/2006 (16-17 February) where Council was advised that a business plan would be provided to Council that included Monash’s maximum commitment ($10 million), project hurdles and a contingency exit strategy.

Professor Tam Sridhar and Ms Loren Miller provided Council with an overview of the proposed activities of the institute, strategic benefits for Monash, the financial modelling for the establishment and operating costs for the Institute, the project risk analysis and the project hurdles proposed for mitigating the risk factors.

Matters raised during discussion included the appropriateness of establishing the venture as an unincorporated joint venture as opposed to an incorporated joint venture and the financial projections for the later years of the project.

Concluding the discussion, the Chancellor noted that the meeting of each project hurdle would be presented to Council, via Resources and Finance Committee.

RESOLUTION CL8/2006/192

Council:

• noted the attached business plan; and
• authorised the Vice-Chancellor to implement the proposal as detailed in the business plan, conditional upon similar approval being granted to IITB by its Board.
• For action or noting by: Vice-Chancellor, Vice-President (Finance); Director - Business Strategy; Dean, Faculty of Engineering; Deputy Vice-Chancellor (International).

4.6  AUQA Report and University response

Council noted advice that the final AUQA report would be received on 20^th December and that the final report would be distributed to Council members as soon as practicable after that date.

RESOLUTION CL8/2006/193

Council noted the advice of Professor Stephen Parker, Senior Deputy Vice-Chancellor.

4.7  Review of Monash’s Educational Performance

Professor Parker, Senior Deputy Vice-Chancellor, provided Council with a presentation on measuring educational performance at Monash.

Professor Parker, noting that there was no one single measurement of performance, advised that the following were arguably valid measures of institutional performance:

• Input measures

- such as the number of students who chose Monash as their first preference

    - demand from the best students: top 5%

    - staff/student ratios, class sizes and others

• Output measures

- student satisfaction

- retention and progression

- employment outcomes and prospects

- graduate starting salaries

- transition to further study

• Recognition measures

- career advancement based on teaching

- success of staff in external teaching awards

- alumni giving

• Comparative measures

- performance relative to like universities

- specific benchmarking exercises

Professor Parker outlined to Council Monash’s current standing via a range of indicators noting that many of these were compiled using 1999-2004 data and were based on poor response rates. Data from the more recent Monash Experience Questionnaire and benchmarking against two other Group of Eight universities provided early signs that improvement was underway.

Improvements over the past three years could be attributed to more targeted strategic planning, a greater emphasis on course and campus planning, a revised and outcome focused Education Plan, a range of ‘educational’ reviews, the introduction of the Quality Cycle, improved feedback loops, committee restructures and analysis of KPI’s.

Concluding his presentation, Professor Parker noted that while there was still some cause for concern, signs of improvement were apparent and that the strategies detailed in the Academic Plan and the reforms introduced over the past years should continue to contribute to improved outcomes.

Following discussion, the Chancellor, and Council with acclamation, thanked Professor Parker.

RESOLUTION CL8/2006/194

Council noted the advice of Professor Stephen Parker, Senior Deputy Vice-Chancellor.

4.7.1  The Melbourne Model

Professor Parker informed Council that Monash may obtain some short term advantages by focusing on the strategy of providing prospective student with multiple entry pathways and how a medium term concern may be the increasing focus of Melbourne University on the provision of postgraduate degrees.

RESOLUTION CL8/2006/195

Council noted the advice of Professor Stephen Parker, Senior Deputy Vice-Chancellor.

4.8  Report on Offshore Campuses

The Vice-Chancellor noted that the most recent financial reports for both the Malaysia and South Africa campuses were included with the Resources and Finance Committee papers.

Informing Council that he had recently visited both campuses to attend Board meetings, the Vice-Chancellor advised that the new campus in Malaysia was nearing completion and was a vast improvement on previous facilities, that the research output of the Malaysia staff was continuing to increase, PhD student numbers were rising and the medical school in Malaysia had received AMC accreditation.

Student numbers of Monash South Africa were continuing to increase, the Secretary General of the ANC had recently visited the campus and meetings with the Minister of Education continued to be positive.

RESOLUTION CL8/2006/196

Council noted the advice of Professor Richard Larkins, Vice-Chancellor and President.

4.9  Progress report on changes to Monash Commercial’s operations

RESOLUTION CL8/2006/197

Council noted the advice of Professor Edwina Cornish, Deputy Vice-Chancellor (Research) on changes to the operations of Monash Commercial Pty Ltd.

4.10  Fundraising Progress Report

RESOLUTION CL8/2006/198

Council noted the advice of Mr Ron Fairchild, Vice-President (Advancement).

4.11  Strip 2 (Clayton) Project: Outcome of Construction Tender

Mr D Pitt, Vice-President (Finance) outlined to Council the tender process and outcomes as detailed in the agenda papers.

RESOLUTION CL8/2006/199

Council approved Monash University’s entry into a construction contract with Hooker Cockram based on the estimated Alternative Tender price and the financial arrangements offered.

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

4.12  Report on Student Services including introduction of the Monash Card

Following an introduction by the Vice-Chancellor, members raised the following concerns:

• the change of the parking area on the corner of Wellington and Blackburn Roads to blue permit parking effectively removed free parking from the Clayton campus;
   
• would student advocacy continue to be funded;
   
• that the proposed changes to parking fees were a major change to staff entitlements and should not be "approved" while the university and staff union were currently discussing the matter; and
   
• that the increase in parking fees at Clayton were excessive.

In response Council was advised that the issue of free parking at Clayton campus would be further investigated and that in the interim free parking should continue to be available at the Blackburn Road site, student advocacy would still be a required function of each of the campus based student unions and that the increase in parking fee’s was set by university management not Council, and that while the increase would be reviewed, historically parking costs had been artificially low.

RESOLUTION CL8/2006/200

Council members noted final implementation arrangements for VSU for 2007, and in particular proposed student association budget allocations for 2007, and associated service, financial reporting and legal compliance responsibilities required of them.

For action or noting by: Vice-President (Administration)

PART C ITEMS FOR APPROVAL OR INFORMATION

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

6.  Report of the Resources and Finance Committee

6.1  Receipt of Report

RESOLUTION CL8/2006/201

Council received and noted the Report of the Resources and Finance Committee meeting 6/2006 held on 22 November 2006.

6.2  2007 Annual Plan and Budget

This matter was dealt with in Item 4.3 of this Agenda

6.3  VSU Update

RESOLUTION CL8/2006/202

Council approved that the university’s Chief Financial Officer be authorised to provide loan funds of up to $3.3 m on an "at call" basis to Monyx/MONSU to support their proposed redundancy program, subject to conditions outlined in the attached document and any other conditions determined by the Chief Financial Officer.

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

6.4  Monash Property South Africa Pty Ltd: Additional Loan Funding

RESOLUTION CL8/2006203

Council approved loan funds of up to R15 million to MPSA on the conditions set out in the paper.

For action or noting by: Vice-President (Finance, Divisional Director Corporate Finance

6.5  Executive Arrangements during the University Vacation Period 2006 – 2007

RESOLUTION CL8/2006/204

Council approved the Executive arrangements detailed in the attached document.

For action or noting by: Divisional Director Corporate Finance

6.6  Ongoing Monitoring and Undertakings to Monash Companies

RESOLUTION CL8/2006/205

Council:

• approved the issuing of Letters of Support to Monash South Africa Ltd, Monash Property South Africa Pty Ltd and Monash Commercial Pty Ltd by the Vice-Chancellor and Vice President (Finance) for 2007 on behalf of Monash University.
   
• Noted that Resources and Finance Committee take over the monitoring function for all entities previously reported to Monash Commercial’s Board of Directors.

For action or noting by: Vice-President (Finance, Divisional Director Corporate Finance

6.7  IITB and Monash University Academy (IMURA)

This matter was dealt with in Item 4.3 of this Agenda

6.8  Clayton Campus – STRIP Stage 2 – Building 76 and 77

This matter was dealt with in Item 4.3 of this Agenda

6.9  Receipt of Proceedings

RESOLUTION CL8/2006/206

Council noted the proceedings of meeting 6/2006 of Resources and Finance Committee held on 22 November 2006.

7.  Reports of the Audit Committee

RESOLUTION CL8/2006/207

Council noted the confirmed Minutes of the Special Meeting of the Audit Committee

Council noted the outcome of the Special Meeting of the Audit Committee in relation to allegations made in "The Australian" newspaper regarding the misuse of student fees by Monyx.

Council noted the unconfirmed minutes of meeting 3/2006 of Audit Committee

Council noted the Annual Legal Compliance Report for 2006.

Council noted the consolidated report on the legal compliance process for the September quarter 2006.

Council noted the proposed Operational Plan for the Audit and Risk Management Office for 2007.

For action or noting by: Director, Audit and Risk Management

8.  Report of the Academic Board

8.1  Receipt of Report

RESOLUTION CL8/2006/208

Council received and noted the Report of Meeting 7/2006 of the Academic Board, held on Wednesday, 22 November 2006.

8.2  Academic Plan

This matter was dealt with in Item 4.4 of this Agenda.

8.3  Budget 2007

This matter was dealt with in Item 4.3 of this Agenda.

8.4  Annual Plan

This matter was dealt with in Item 4.3 of this Agenda.

8.5  Proposal to Establish the Monash University Academy of Performing Arts

RESOLUTION CL8/2006/209

Council approved the proposal to establish the Monash University Academy of Performing Arts.

For action or noting by: Director, Performing & Visual Arts

8.6  Proposal to Establish the Centre for Muslim Minorities & Islam Policy Studies

RESOLUTION CL8/2006/210

Council approved the proposal to establish the Centre for Muslim Minorities & Islam Policy Studies.

For action or noting by: Dean, Faculty of Arts, Dr Shahram Akbarzadeh

8.7  Proposal to Establish the Asia-Pacific Centre for Science and Wealth Creation

RESOLUTION CL8/2006/211

Council approved the proposal to establish the Asia-Pacific Centre for Science and Wealth Creation.

For action or noting by: Dean, Faculty of Medicine, Nursing and Health Sciences; Dean, Faculty of Business and Economics and Professor Nick Birrell.

8.8  Proposal to Establish the Global Terrorism Research Centre

RESOLUTION CL8/2006/212

Council approved the proposal to establish the Global Terrorism Research Centre.

For action or noting by: Dean, Faculty of Arts; Professor Gary Bouma and Dr David Wright-Neville.

8.9  Affiliation Agreement with Peter MacCallum Cancer Institute

RESOLUTION CL8/2006/213

Council approved the proposal to enter into a formal Affiliation Agreement with the Peter MacCallum Cancer Institute.

For action or noting by: University Solicitor; Dean Medicine, Nursing and Health Sciences and Deputy Vice-Chancellor (Research).

8.10  Receipt of Proceedings

RESOLUTION CL8/2006/214

Council noted the proceedings of the Academic Board meeting held on 22 November 2006.

9.  Report of the Gippsland Advisory Council

9.1  Receipt of Report

RESOLUTION CL8/2006/215

Council received and noted the report of the Gippsland Advisory Council meeting 6/2006 held on 17 October 2006.

9.2  Receipt of Proceedings

RESOLUTION CL8/2006/216

Council noted the proceedings of the Gippsland Advisory Council meeting 6/2006 held on 17 October 2006.

9.3  Gippsland Advisory Council Self-Review

RESOLUTION CL8/2006/217

Council noted the proposal for the Gippsland Advisory Council to undertake a self-review as detailed above.

For action or noting by: Secretary of Gippsland Advisory Council; Mr Ian Pyman; Pro Vice-Chancellor (Gippsland) and Associate Professor Harry Ballis.

10.  Report of the Equal Opportunity Committee

10.1  Receipt of Report

RESOLUTION CL8/2006/218

Council received and noted the Report of the Equal Opportunity Committee Meeting 04/06 held on Monday 13 November 2006.

10.2  Receipt of Proceedings

RESOLUTION CL8/2006/219

Council noted the proceedings of the Equal Opportunity Committee meeting 04/06 held on Monday 13 November 2006.

11.  General Business

11.1  Senior Appointments

11.1.1  Acceptance of Offers

RESOLUTION CL8/2006/220

Council noted:

the accepted offers of appointment as detailed in the document presented approved by the Vice-Chancellor and President.

the accepted offers of appointment as detailed in the document presented approved by the Special Professorial Appointments Committee of Council.

For action or noting by: Manager – Senior Appointments

11.2  Appointment of a director to the board of Monash College Group Pty Ltd

RESOLUTION CL8/2006/221

Council approved the appointment of Ms Loren Miller as a Director of Monash College Group Pty Ltd.

For action or noting by: Deputy Vice-Chancellor (International); Ms Loren Miller, Director, Business Strategy

11.3  Filling of vacancies on Committees of Council

RESOLUTION CL8/2006/222

Council appointed:

• Associate Professor Leanne Rowe as an alternative member of Executive Committee, replacing the retiring Dr June Hearn;
   
• Associate Professor Leanne Rowe to membership of Membership Committee replacing the retiring Dr June Hearn;
   
• Associate Professor Leanne Rowe to membership of Resources and Finance Committee replacing the retiring Dr June Hearn;
   
• Ms Mei-Leng Kok to membership of Resources and Finance Committee replacing Mr Leslie Whitely whose term expires on 31 December 2006; and
   
• Ms Zoe Edwards to membership of Equal Opportunity Committee replacing Ms Kristine Banks-Smith whose term expires on 31 December 2006.

11.4  Report of Academic Promotions 2006

11.4.1  Promotion to Associate Professor and Professor

RESOLUTION CL8/2006/223

Council noted the successful candidates for promotion to Associate Professor and Professor as detailed in the document presented.

For action or noting by: Director, Organisational Development and Policy.

11.5  Report of the Returning Officer – Council Election

• Dr Carol Williams was elected for a term commencing 1 January 2007 and ending 31 December 2008.

12.  Next Meeting

The next meeting of Council will be the Council Conference, scheduled to be held on 15 - 16 February 2007 at the Sebel Lodge, Yarra Valley.