"I have been up front with Australia's university
leaders that in the current budget environment, new injections of
funding for universities in response to the Base Funding Review are not
realistic.
"What this report shows is that Australian universities are going from
financial strength to strength and that they are in a strong position to
consolidate these gains next year.
"It is vital universities now demonstrate that these extra resources can
produce the quality graduates Australia needs for its future workforce
and improved productivity."
According to the telegraph.com.au
The Finance 2010: Financial Reports of Higher Education Providers,
to be released today, showed NSW universities were among the wealthiest
in the country, with surpluses of more than $648 million.
The University of NSW topped the list with a surplus of $141.1 million,
followed by The University of Sydney with $113.7 million, Macquarie
University with $100.6 million and the University of Wollongong with a
$100.4 million surplus.
The University of Western Sydney had $61.4 million while other
universities in NSW reported surpluses of between $36 million and $2.3
million.
According to adelaidenow.com.au
University of Adelaide, University of South
Australia and Flinders University were all listed among the 18
Australian universities that returned surpluses of more than $50 million
this year.
University of South Australia returned the state's biggest surplus of
$70 million.
Federal Tertiary Education Minister Chris Evans said the report proved
universities had recovered from the global financial crisis and he told
uni bosses to invest more in their students.
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Surpluses versus Profits
Universities Australia has welcomed the Government's
release of Finance 2010, which provides data for the higher
education sector, and Minster Evans' statement that the figures therein
are evidence that universities are well managed and operating with
prudent margins; an outcome also reflecting three years of improved
financial support by government.
In releasing these figures the Minister emphasised how university
surpluses increased to $1.95 billion in 2010, showing that
"...Australian universities are going from financial strength to
strength."*
Universities Australia however has cautioned the Government to be very
careful indeed in interpreting this headline outcome lest it undermine
good policy.
Universities Australia CEO, Dr Glenn Withers clarified, "Especial care
needs to be taken when viewing reported surpluses. These are not
'profits'. In fact, half or more of the funds referred to relate to
future funding commitments, especially for capital works. Much of the
recent increase in university funding by government has in fact been in
infrastructure, through draw-down of the Higher Education Investment
Fund, and this has been very beneficial.
"Universities quite prudently hold monies on their books to deal with
volatile times and for future committed spending. Indeed a large share
of the 'surpluses' are matching funds raised by universities to meet
co-funding requirements set by the government. If the government says
the surpluses are evidence the recommendations of its own successive
independent inquiries in relation to base funding can be put aside, then
this would not be a positive policy development."
Dr Withers emphasised that, "The Government has done a tremendous amount
for the higher education sector since it came into office, including the
capital funding provision and the indexation, indirect grant cost and
demand -driven policies which are now being phased in. To offset such
good work by then penalising universities for meeting government
requirements through their management of surpluses would be less than
helpful.
"The 'surpluses' are evidence of complying with government policy
intention at a time when infrastructure expansion is urgently needed to
meet government participation targets. They are funds which ensure
universities are in a position to provide the resources and
infrastructure necessary to support teaching, learning and research and
to provide a rich university environment for our students.
"Universities Australia would be very willing to sit down and work with
Government to obtain more realistic estimations of the sector's true
operating surpluses, before these current conventions in financial
reporting are allowed to unreasonably dictate key policy settings, such
as the response to the Base Funding Review," Dr Withers concluded.
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