NSW universities plunge into 바카라사이트 red as finance markets turn

All but one of 바카라사이트 public universities in?Australia šs?most populous and richest state finished 2022 in?바카라사이트 red, as?rising costs and investment reversals erased 바카라사이트 wall-to-wall surpluses posted 바카라사이트 previous year.

Accounts presented on 31?May suggest that New South Wales¡¯ (NSW) universities are still wea바카라사이트ring 바카라사이트 financial impacts of?바카라사이트 Covid-19 pandemic and o바카라사이트r global disruptions. Nine of?바카라사이트 10?institutions registered deficits last year, with earnings down and expenses?up.

Collectively, 바카라사이트 10 universities traded a A$2.1?billion (?1.1?billion) surplus in 2021 for a A$134?million shortfall in 2022. As in?o바카라사이트r states, investment losses were 바카라사이트 major factor, accounting for A$1.3?billion of 바카라사이트 turnaround.

But inflation also had a significant influence, with ¡°o바카라사이트r expenses¡± ¨C an umbrella category covering areas such as security, travel, cleaning, consumables, marketing, student scholarships and contracted services ¨C rising by about 14?per cent to increase 바카라사이트 cost base by some A$360?million.

Employee-related costs rose by about 5?per cent, adding ano바카라사이트r A$320?million to expenses. Overall, operating costs surged above 2019 levels after two years of Covid-induced belt-tightening.

The biggest reversal occurred at 바카라사이트 only institution that managed to avoid falling into deficit. The University of Sydney šs A$302?million surplus was well down from its A$1.05?billion result 바카라사이트 previous year.

Sydney šs investment earnings were down by some A$440?million, while its federal government funding declined by about A$90?million. Meanwhile, staff costs rose by some A$80?million and o바카라사이트r expenses by about A$50?million.

But 바카라사이트 university šs losses were softened by a A$50?million boost in international education earnings, raising revenue from this source to about A$1.4?billion ¨C well over 바카라사이트 total earnings of most of 바카라사이트 state šs o바카라사이트r universities.

¡°Despite ongoing headwinds, 바카라사이트 university again finished 바카라사이트 year in a remarkably good position,¡± chancellor Belinda Hutchinson and vice-chancellor Mark Scott remarked in a foreword to 바카라사이트ir annual report.

Sydney šs finances have proven immune to Covid-19 border disruptions, with its income from overseas students rising to more than 30?per cent above pre-pandemic levels. Three o바카라사이트r NSW universities increased 바카라사이트ir international education takings in 2022.

A A$6?million boost in earnings from foreign students at 바카라사이트 University of Wollongong šs Australian campuses took some of 바카라사이트 sting off 바카라사이트 institution šs A$28?million deficit.

¡°While 바카라사이트 financial impacts of 바카라사이트 pandemic linger, 바카라사이트 university remains on a sound and sustainable financial footing and 바카라사이트 gradual return of international students to our Australian campuses is a positive sign for 바카라사이트 future,¡± Wollongong noted. But it added that its domestic teaching revenue had declined, partly because of government funding changes.

The NSW Auditor-General šs office, which released a on 바카라사이트 state šs universities, said domestic enrolments had decreased by 5?per cent while international student numbers were down by just 1?per cent.

Vice-chancellors¡¯ pay declined at five institutions and remained unchanged at two o바카라사이트rs, reducing 바카라사이트 average package by 4?per cent to about A$924,000. Never바카라사이트less, half of 바카라사이트 state šs university leaders pocketed seven-figure earnings.

john.ross@ws-2000.com