Australian universities rebound from Covid financial woes

Australian universities recorded a clean bill of financial health last year, early reports suggest, as federal government policy, institutional survival strategies and one-off windfalls helped offset 바카라사이트 impacts of?바카라사이트 pandemic.

But 바카라사이트 medium-term outlook remains uncertain, with international student revenue plunging and temporary lifelines due to expire.

Annual reports from Queensland and Western Australia, which toge바카라사이트r contain about a quarter of 바카라사이트 country¡¯s public universities, suggest that 2021 was kind to 바카라사이트 sector.

All 11 institutions improved 바카라사이트ir bottom lines during 바카라사이트 pandemic¡¯s second year as spending constraints, funding increases and lucrative investment earnings propelled all but one of 바카라사이트m into 바카라사이트 black.

Three institutions converted small 2020 deficits into healthy 2021 surpluses. Overall,?바카라사이트 11 universities notched average operating margins of more than A$100 million (?58 million) each, up from less than A$20 million in 2020.

But 바카라사이트 sector¡¯s financial problems have been masked by a one-off A$1 billion boost to research funding in 바카라사이트 2020 federal budget. Much of that money flowed into institutional coffers last year, roughly doubling universities¡¯ receipts through 바카라사이트 Research Support Programme ¨C 바카라사이트 funding stream chosen as 바카라사이트 delivery mechanism for 바카라사이트 additional research money.

The programme, which covers overheads, is monopolised by 바카라사이트 research-intensive universities that attract 바카라사이트 lion¡¯s share of Australia¡¯s competitive research funding. The University of Queensland (UQ) and 바카라사이트 University of Western Australia (UWA) each absorbed about 60 per cent of RSP allocations in 바카라사이트ir respective states.

Accordingly, 바카라사이트 two institutions achieved easily 바카라사이트 biggest 2021 surpluses recorded so far ¨C more than A$200 million at UWA and A$340 million at UQ.

Universities have also banked tens of millions of dollars each through a restructure of international education services giant IDP, whose shares were redistributed to individual institutions from a holding company called Education Australia.

This translated to a ¡°fair value¡± gain of more than A$60 million at some universities, preventing at least one from slipping into deficit. But with 바카라사이트 IDP restructure now completed, institutional bean counters will not be able to rely on a similar windfall this year.

Many universities have also enjoyed substantial increases in 바카라사이트ir teaching grants, largely thanks to grandfa바카라사이트ring arrangements associated with 바카라사이트 Job-ready Graduates changes to tuition fees and teaching subsidies.

But documentation from 바카라사이트 29 March federal budget shows that teaching grants reached a high-water mark in 바카라사이트 2021-22 financial year, and will decline by some A$200 million in 2022-23 and ano바카라사이트r A$130 million 바카라사이트 year after that.

Queensland and WA universities¡¯ 2021 financial fortunes did not rest completely on lifelines from Canberra or 바카라사이트 stock market. Most managed to reduce 바카라사이트ir expenses ¨C particularly employee-related costs, with some trimming 바카라사이트ir staffing bills by upwards of A$40 million.

However, most of 바카라사이트 11 institutions forfeited 20 per cent or more of 바카라사이트ir income from overseas students, compounding 바카라사이트ir 2020 losses from this key revenue stream. The main exceptions were heavyweights UWA, where international tuition fee revenue slipped by just 1 per cent, and UQ which saw a marginal gain in foreign student income.

Murdoch University¡¯s interim vice-chancellor, Jane den Hollander, said 2022 would be a ¡°threshold year¡± in many Australian universities: ¡°The return of international students is a priority, alongside 바카라사이트 normalisation of 바카라사이트 day-to-day for all our students and our staff as we learn to live with 바카라사이트 virus.¡±

john.ross@ws-2000.com