David Michael Gonski, an Australian, is a member of the Board of Directors, Singapore Airlines Ltd. He is also a member of the Board's Audit Committee.
As Chancellor of the University of New South Wales he is responsible for UNSW's financial statements, which he signs off together with the Vice-Chancellor, Fred Hilmer.
UNSW's accounts are audited by the Auditor General, State of New South Wales. His most recent audit opinion contains the following qualification:
Audit Opinions
The audits of the University and its controlled entities’ financial statements for the year ended 31 December 2010 resulted in unqualified Independent Auditor’s Reports for 12 entities (including the parent) and a qualified Independent Auditor’s Report for one entity.
I was unable to express an opinion as to whether the University of New South Wales Foundation Trust had recorded all revenues received from donations and fundraising sources in its financial statements. This is common for entities with these sources of revenue, as it is impracticable for them to maintain effective systems of internal control over the receipt of such revenues until their initial entry in the financial records. My audit report for 2009 was similarly qualified.
At the time of finalising this report, the audits of nine controlled entities in the group were incomplete.
While the Auditor General's audit opinion may not seem damning, it should be kept in mind that the UNSW would be to Singapore Airlines what a HDB provision shop is to a NTUC Fairprice.
If UNSW is considered so complex that incomplete records are acceptable, then Gonski cannot be said to have the skills required to oversee the financial statements of something as complex as Singapore Airlines.
This is not the first time that the Auditor General has raised questions about the state of UNSW's financial controls. In 2010 The Australian newspaper reported:
THE University of NSW has written off $5.35 million in debts owed by students, reflecting a history of poor financial control.
The 2009 annual report, tabled in NSW Parliament yesterday, shows a $2.9m write-off, following a $2.45m write-off the previous year.
The NSW Auditor-General raised concerns about the student money issue in five consecutive annual reports, the most recent being last year's.
(THE AUSTRALIAN, 5 JUNE 2010)
Gonski was queried about the report in THE AUSTRALIAN . His response:
........ you will be aware from the report in The Australian to which you refer that the monies which were written off arose over a lengthy period indeed between 1990 – 2006. My appointment in late 2005 as Chancellor coincided with the implementation of new and more focused accounting procedures which culminated in a decision to write off these amounts. I’m not aware of any adverse reports against me and indeed believe that one of the things that I and the present Vice Chancellor Professor Fred Hilmer have achieved since coming into office is an improvement in the financial management of the University.
SIA shareholders, Singapore taxpayers and contributors to the CPF can decide for themselves if the response is an acceptable explanation from yet another FT.
END
NOTE:
Fred Hilmer was the man the EDB accused of being "misleading" with the truth about the failed UNSW Singapore venture.It was Gonski and he who decided to end that venture:
UNSW Vice Chancellor comments to Australian paper misleading
By Foo Siew Shyan and Suzanne Ho, Channel NewsAsia | Posted: 05 July 2007 2132 hrs
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Professor Fred Hilmer, Vice-Chancellor of UNSW |
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SINGAPORE : The Economic Development Board (EDB) has written to the University of New South Wales (UNSW) to clarify comments published in The Australian newspaper.
In a letter to UNSW's Vice Chancellor, Professor Fred Hilmer, EDB said his comments were misleading.
EDB added that Professor Hilmer had laid blame for the closure of its Asia campus on EDB, rather than acknowledge that it was a business decision taken by UNSW.
The UNSW announced its decision to close its campus on May 23.
Its Vice Chancellor told The Australian newspaper that he believed he had "a workable plan for the campus' future but was rejected "at the 11th hour by the EDB".
But EDB pointed out that UNSW had concluded it would not be able to meet the deliverables expected under the EDB's support package.
In a detailed letter, the EDB's Assistant Managing Director Aw Kah Peng wrote that after one and a half years of negotiations, EDB agreed on a support package for UNSW in 2004 to set up a permanent campus in Singapore.
The student enrolment was targeted at 10,000 to 15,000 in the long term.
The deal was signed in February 2005 by the previous Vice-Chancellor.
But when Professor Hilmer came in June 2006, he requested that EDB increase the support package. EDB did so in August 2006.
Based on a revised plan, the student enrolment targets remained largely unchanged but the Changi campus was to be accelerated and there were to be additional R&D activities in Singapore.
But student intake fell short. In March 2007, 150 students enrolled, which was half of what UNSW had expected.
So Professor Hilmer asked EDB to reconsider its support package.
There were extensive discussions between EDB and UNSW between March and May.
The revised plan envisaged a considerably scaled-down operation - just 2,000 students by 2016.
That was less than half of the university's commitment agreed earlier.
EDB said it rejected the proposal since there was no assurance of the development of the new campus.
But EDB was prepared to give the university till April 2009 to decide whether to develop a new campus at Changi.
It was also prepared to continue the support given, but not to increase it.
EDB also went as far as to consider fresh funds if it received UNSW's proposal to develop the new campus.
But UNSW decided to close its venture here and EDB respects its business decision. - CNA /ls
