Federation University Australia has developed a new strategy to ensure its long-term survival, following the Victorian Auditor-General’s 2017 report which identified declining student numbers and poor financial performance in contrast to a relatively stable sector.
This is the first year the university has recorded a financial deficit and the report revealed the net result margin has been declining since 2015.
The report attributed difficulties in attracting students to its weaker financial performance and urged the university to “assess the relevance and financial sustainability of their current course offerings, as well as their staff profile”.
FedUni opened its Gippsland campus in 2014 and has another campus in Ballarat.
It is the smallest of Victoria’s universities and had 9439 students enrolled in 2017.
The Victorian Auditor-General looked at the eight public universities in the state. Both Federation University Australia and Victoria University had declining financial results and student numbers.
Despite the deficit, the educational institution has a strong balance sheet and will likely be sustainable in the short to medium term, the report noted.
The audit reviewed the asset maintenance framework at each university and observed “the frameworks at Federation University Australia and Victoria University were relatively less well developed”.
FedUni accepted the findings of the audit and the university’s vice-chancellor Helen Bartlett submitted a response detailing how it would address its downfalls, promising to strengthen its asset maintenance documentation.
Professor Bartlett said in the response the university had “recently conducted an in-depth analysis of the University’s business and operations which has resulted in the development of a Transformational Strategy to ensure long-term sustainability”.
To add to its woes, FedUni had the highest number of errors in its draft provided for the audit and in response has commissioned a detailed action plan for quality assurance.
The Victorian Auditor-General recommended the university “not rely on the audit process as the quality assurance review of their financial report”.
“The errors [in FedUni’s draft] were largely caused by weak management oversight, highlighting the importance of a robust quality assurance process,” the report noted.
Professor Bartlett said in the response the university would ensure the appropriate balance between timely submission and accuracy for the 2018 statement of accounts.
