Email reveals CDU’s crippling $21 million deficit cut in half

AN internal email has revealed Charles Darwin University’s financial status

In an email obtained by the NT News, CDU vice-chancellor Professor Simon Maddocks has revealed the university has improved its financial position

CHARLES Darwin University is approaching “financial recovery” with its crippling $21 million deficit halved.

In an email obtained by the NT News, vice-chancellor Professor Simon Maddocks revealed the university’s overall net deficit for 2019 was $9 million, compared to its reported deficit of $21 million in 2018.

CDU had allowed a budgeted deficit of $14 million for 2019.

Prof Maddocks described the result as a “great turnaround”.

CDU Vice Chancellor reveals $21m black hole

“Our financial performance for 2019 indicates that our efforts in managing costs and growing revenue are placing the university on a path to financial recovery,” he said.

“Our aim is to operate without a deficit, so ongoing vigilance around cost management is vital. Thank you to everyone who worked so diligently last year to control expenditure and build revenue.”

In 2019 CDU made and proposed cuts to several areas in an attempt to improve its financial situation.

This year the university is expected to make cuts to its Vocational Education and Training sector.

In October it proposed to axe 16 permanent staff and 35 qualifications16 permanent staff and 35 qualifications.

CDU: The list of VET jobs and qualifications proposed to be cut

National Tertiary Education Union NT president Dr Darius Pfitzner questioned the method and sustainability of efforts to reduce the deficit.

“Unfortunately once again, for the third year running, it would seem the university is in significant deficit despite significant downsizing of the staff ... which has been blamed as being the largest overhead the university has,” he said.

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“If a reduction in staff hasn’t solved the problem, it would then indicate the university has other costs that are out of control and need to be reined in. Why hasn’t it been done already?

“In light of a number of years in deficit and turmoil around restructure, one wonders where the money that has been saved by downsizing has been sent.”