By Cam Lucadou-Wells
Federation University has defended its financial viability after the release of a critical Victorian Auditor-General’s report on 25 May.
The report pointed to the university’s declining student numbers and financial results over the past five years, including a net deficit in 2017.
This was in the background of an otherwise financially-strong university sector in Victoria.
“It would be prudent for (Federation University) to assess the relevance and financial sustainability of (its) current course offerings,” the report stated.
In its favour were significant cash and investments and a “relatively strong balance sheet”, the VAGO found.
“As such, it is likely to be solvent for the short to medium term.
“However, such a review would enable it to improve its financial performance in the longer term.”
In its formal response to the report, Federation University accepted the recommendations.
Vice-chancellor Helen Bartlett, in a statement, said the university had invested heavily in recent years -including taking over the Berwick campus.
It impacted on short-term finances but would lead to long-term sustainability, Professor Bartlett said.
By opening new campuses, the aim was to grow student numbers outside its western Victoria heartland over the next four years.
It aimed to increase its enrolments to 28,000 – a rise of 7,000 – by 2022, Professor Bartlett said.
“The University has experienced strong demand for places at Berwick which has grown to 1400 students in just its second year of operation.
“We have already implemented changes to our academic structure, undertaken a review of all our programs and courses, and will continue to identify areas for improvement that will strengthen our financial performance and viability.”
