Terms of reference for the Productivity Commissions Draft Report
University Resourcing: Australia in an International Context


The Productivity Commission is requested to undertake international comparisons of the resourcing of higher education institutions and the management of those resources.

The principal objective of the study will be to collect information for Australia and other countries on university income by source, their assets and liabilities, the management of resources, constraints on their use, and accountability mechanisms for good financial management.

In undertaking the study, the Commission is to report on the following for a selection of broadly comparable institutions in Australia and other countries:

  1. The levels and sources of university income, including the share of costs between government and students, investment and consulting revenues, donations, endowments, revenues from intellectual property and industry support;

  2. The mechanisms for the distribution of funds to universities (including any indexation arrangements and funding models), and constraints imposed by governments and the private sector on the use of those funds (including through regulation, funding conditions and performance requirements);

  3. The expenditure of university income, including the broad distribution of funds within universities to teaching, research and other activities, and the distribution of those funds between employee remuneration and other purposes;

  4. The overall financial position of universities, including their assets and liabilities, and in particular the extent and form of any investments in commercial activities; and

  5. University financial management and audit processes, broader corporate governance arrangements, the external scrutiny of financial management (particularly by government) and general financial performance reporting
    requirements.

The Commission is required to furnish a draft report for public scrutiny by the end of September 2002, with a final report to be furnished as soon as possible and within four months after releasing the draft report.

IAN CAMPBELL
5 JUNE 2002