COVID expected to cost Charles Darwin University up to $30 million, report shows

DEBT-LADEN Charles Darwin University (CDU) is estimated to lose up to $30m in revenue this year largely due to the impacts of COVID-19, according to an audit report

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DEBT-LADEN Charles Darwin University (CDU) is estimated to lose up to $30m in revenue this year largely due to the impacts of COVID-19, according to an audit report.

The finding was made in a report by the NT Auditor-General, tabled in parliament on Friday, which shows CDU’s revenue was expected to take a hit this year with lower international student numbers.

“Management estimates that other revenue categories such as research, rental from student accommodation, VET fee-for-service income and other investment income will be impacted,” the report said.

“At the time of reporting, management estimates the revenue impact for the 2020 year to be a decline in the range of $20 million to $30 million.”

It comes as CDU’s proposed restructure changes are expected to begin today.

A draft of the restructure, which is being led by deputy vice-chancellor Meredith Parry, proposed to axe 77 jobs and is expected to save CDU $10m.

The Auditor-General’s report also revealed how much the university sold it’s Adelaide education businesses for this year after it went into deficit.

CDU sold its leading Adelaide hotel school, the International College of Hotel Management (ICHM), for $1.7m on February 14.

ICHM reported a total deficit of $1.1m from 2018-19 before it was eventually sold.

The NT Auditor-General’s report also showed CDU’s subsidiaries in Cairns — which included the Cairns Language Centre, the Cairns Business College and Cairns Education Australia — racked up a combined deficit of $5.2m from 2016-19 before being closed down in March.

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It also shows CDU still recorded an $8.7m net deficit last year despite receiving $66.8m in financial assistance from the NT Government and $117m in financial assistance and grants from the Commonwealth.

The audit did not identify any material weaknesses in internal controls.