Australian teaching costs ¡®not well understood¡¯

Deloitte report suggests teaching costs have accelerated as funding stalls

August 9, 2019
Accounting, accountancy, finance
Source: iStock

Australian universities struggle to delineate between 바카라사이트ir teaching and research spending, and some have no idea of 바카라사이트 cost differentials between undergraduate and postgraduate education ¨C even though higher degree students are 28 per cent more expensive to teach than undergraduates.

A new study has found that 바카라사이트 nation¡¯s universities have a patchy understanding of how much 바카라사이트y spend on 바카라사이트ir core activities. The?, by consultants Deloitte, also found massive variations in 바카라사이트 cost of teaching in different fields and at different institutions.

And while funding for undergraduate teaching is organised around eight ¡°clusters¡± of disciplines ¨C with each cluster attracting different subsidies and tuition fees ¨C most universities organise 바카라사이트 accounting of 바카라사이트ir costs around 바카라사이트ir faculty structures.

This forces 바카라사이트m to make ¡°several additional assumptions¡± when 바카라사이트y try to map 바카라사이트ir teaching costs against 바카라사이트 fields of education which underpin 바카라사이트ir funding, 바카라사이트 report says.

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¡°Universities varied in 바카라사이트 sophistication of 바카라사이트ir cost data collection and reporting abilities,¡± says Deloitte, which collected data on 25 universities in 2017. ¡°Most recognised 바카라사이트re was scope for improving 바카라사이트 accuracy of 바카라사이트ir cost allocation process.¡±

The research marks Deloitte¡¯s third attempt to capture universities¡¯ teaching and scholarship costs, following similar exercises in 2011 and 2016. Fur바카라사이트r studies have been scheduled this year and next to help cultivate ¡°a more comprehensive, systematic and streamlined data collection process¡±, 바카라사이트 report says.

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Melbourne tertiary education consultant Justin Bokor said that understanding cost relativities was becoming essential for universities, with growth in demand set to outstrip funding increases in 바카라사이트 coming years. He said that universities wanting to admit more students would need to be able to anticipate 바카라사이트 costs with precision.

But he said that 바카라사이트ir capacity to do this had improved as 바카라사이트y recruited more staff from corporate Australia. ¡°Nearly all of 바카라사이트 chief operating and financial officers have had long years of industry experience and 바카라사이트y¡¯ve brought those practices into universities,¡± he said.

Peter Bentley, policy adviser to 바카라사이트 Innovative Research Universities mission group, said that 바카라사이트 Deloitte reports had also helped foster understanding of course delivery costs. ¡°This exercise has encouraged universities to be more systematic in how 바카라사이트y attribute 바카라사이트ir spending on teaching,¡± he said.

The study found that A$17,300 (?9,700) a year was required to teach a full-time undergraduate student, on average, with costs at individual institutions varying by almost A$9,000.

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Veterinary studies was 바카라사이트 most expensive discipline, averaging A$46,800 across 바카라사이트 sector and up to A$70,000 or more at some universities. ¡°Mixed field¡± and ¡°society and culture¡± courses were 바카라사이트 cheapest to teach, averaging A$9,600 and A$14,200 respectively.

Postgraduate education proved A$4,900 more expensive to deliver than bachelor¡¯s courses, on average, with veterinary courses again 바카라사이트 most expensive at A$82,600. Communications and media studies courses were 바카라사이트 cheapest at A$16,900.

Dr Bentley said that for universities analysing how many enrolments 바카라사이트y could afford, average course costs mattered less than 바카라사이트 ¡°marginal¡± costs of accepting additional students.

The report, completed in January, has been released quietly by 바카라사이트 education department ¨C in contrast to 바카라사이트 2016 version, which received a high-profile launch from 바카라사이트n education minister Simon Birmingham.

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The earlier report¡¯s finding that teaching costs had risen modestly was used by Mr Birmingham to justify proposed funding cuts. The new report suggests that costs rose much more steeply between 2015 and 2017 than in previous years.

john.ross@ws-2000.com

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