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Statement by Vice-Chancellor on ÐÓ°ÉÖ±²¥ finances

Monday, 19 November 2001

The Vice-Chancellor of Adelaide ÐÓ°ÉÖ±²¥, Professor Cliff Blake, has issued the following statement on the ÐÓ°ÉÖ±²¥'s finances:

I have completed a budget strategy which will go to Council next week and which will provide a comprehensive resolution of the financial issues facing the ÐÓ°ÉÖ±²¥.

In developing the budget strategy I have examined the total financial position of the ÐÓ°ÉÖ±²¥. Unlike other universities in South ÐÓ°ÉÖ±²¥, Adelaide ÐÓ°ÉÖ±²¥ has substantial financial reserves, is not required to service significant debt, and has a substantial cash flow. The particular issue to which the Commonwealth has drawn attention, and which I am addressing, is the deficit that has emerged in 2001 and which will rapidly increase in 2002 and 2003 if immediate, corrective action is not taken. The budget being recommended to Council predicts a balanced budget in 2002 and significant surpluses in later years.

To achieve this, the ÐÓ°ÉÖ±²¥ had three choices: (1) to increase revenue from non-grant sources; (2) to cut costs, essentially by reducing the number of staff and putting in place robust systems of internal cost control; (3) to take a combination of these actions. I have recommended the last course of action.

I am confident that this strategy, if followed diligently and with determination over the next two years, will ensure a secure future for the ÐÓ°ÉÖ±²¥. I believe that it will win the support of the ÐÓ°ÉÖ±²¥ Council and will meet the concerns expressed by the Commonwealth. The budget strategy will bring revenues and expenditures into closer alignment, within the context of the ÐÓ°ÉÖ±²¥'s strategic priorities. In these circumstances, it is highly unlikely that the Commonwealth would even contemplate the appointment of an administrator or the amalgamation of South ÐÓ°ÉÖ±²¥n universities.

The Auditor General is the ÐÓ°ÉÖ±²¥'s auditor and undertakes an audit of our finances at the end of each calendar year. He is well aware of the financial strength of this ÐÓ°ÉÖ±²¥ but, equally, of how that strength can deteriorate if costs are not controlled appropriately or revenue targets are not met. The ÐÓ°ÉÖ±²¥ is determined to ensure that this situation does not eventuate.

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