Notes to the Financial Statements

Note 20: Employee Entitlements

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
Staff Annual and Long Service Leave vested 8,257 7,723   8,257 7,723
Sick Leave 38 16   38 16
Other Employee Entitlements 3,897 2,959   3,485 2,671
Actuarial Valuation of Anticipated Retirement Gratuities and Long Service Leave 11,898 11,170   11,898 11,170
Total Employee Entitlements 24,090 21,868   23,678 21,580
 
Current Portion 13,868 12,353   13,456 12,065
Non Current Portion 10,222 9,515   10,222 9,515
Total Employee Entitlements 24,090 21,868   23,678 21,580

The present value of the retirement obligations depends on factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability.

Expected future payments are discounted using forward discount rates derived from the yield curve of NZ government bonds. The discount rates used match, as closely as possible the estimated future cash outflows. The salary inflation factor has been determined after considering historical salary inflation patterns and after obtaining advice from an independent actuary.

The University makes contributions to defined contribution plans which include contributions to Kiwisaver, NZ Universities' Superannuation Scheme, National Provident Fund and the Government Superannuation Fund.

The following is included in the Employee Benefit Expenses - Academic and Employee Benefit Expenses General:

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
Defined contribution plan employer contributions. 4,129 3,624   4,129 3,624  

Employee Benefit Expenses - Academic and Employee Benefit Expenses - General also includes $1,107,943 in restructuring costs for the year ended 31 December 2010 (2009 : $651,500).



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