CDU’s deficit hit its lowest in five years in 2019 after hitting dire financial straits
IN 2019 Charles Darwin University recorded its lowest deficit in five years, according to its latest annual report
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IN 2019, Charles Darwin University recorded its lowest deficit in five years, according to its latest annual report.
CDU’s 2019 annual report showed it clocked an $8.76m deficit — a dramatic drop from its crippling shortfall of $21.38m in 2018.
The “group”, which encompasses CDU and its wholly owned subsidiaries, reduced its deficit from $19.14m in 2018 to $5.7m last year.
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CDU first plunged into deficit in 2015, after years of steady profit, with the university recording a $22.14m shortfall and the group a $13.89m deficit.
Last year, vice-chancellor Simon Maddocks pointed the finger at the federal government for the university’s struggles.
He claimed the 2017 cap on the Commonwealth Grant Scheme, which froze university funding at 2017 levels from 2018-20, was crippling the university.
He also cited the rising costs of course delivery and staff salary costs as pushing the university to financial brink.
Since recording its $21.38m deficit, CDU has made cuts to the College of Nursing and Midwifery, its libraries, and proposed to cut 35 qualifications and 16 permanent staff in its Vocational Education and Training (VET) sector.
The proposed VET cuts were put on hold due to COVID-19.
This year, the university also sold multiple interstate businesses — the Cairns Language Centre, Cairns Business College, Cairns Education Australia and the International College of Hotel Management in Adelaide, all of which went into deficit while owned by CDU. When asked what were its key strategies to reduce the deficit between 2018 and 2019, a CDU spokesman said the focus would be on “growing revenue as well as reducing operating costs”.
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“CDU will capitalise on the growing interest in the CDU brand as evidenced by an increase in domestic and international applications for Semester 2, 2020,” he said.
“We will also need to ensure that our business practices are as efficient as they could be to keep operating costs down.”
raphaella.saroukos@news.com.au
Originally published as CDU’s deficit hit its lowest in five years in 2019 after hitting dire financial straits