Territory FM on chopping block as CDU needs to improve or ditch businesses
A REPORT into how Charles Darwin University can achieve financial sustainability says it needs to either improve turnover, outsource or ditch non-core business units
Northern Territory
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TERRITORY FM and the CDU childcare centre could be among the facilities scrapped by Charles Darwin University as it attempts to regain financial sustainability.
A report into how the university can do better financially in Vocational Education Training has suggested it either improve turnover, outsource or ditch non-core business units, and also install an effective student debt collection process.
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In the university’s draft restructure proposal, the Ernst & Young report recommended the university undertake a review of non-core business units to improve their efficiency or cease operations.
It found that last year childcare, Territory FM, accommodation services at the Casuarina, Alice Springs and Katherine campuses, and the CDU Art Gallery “collectively made a loss of $815,100 (with $406,000 of that allocated to VET)”.
“These business units should either achieve a break-even position or consider discontinuation of these operations,” it said.
The report added that UniPrint, which designs, prints and delivers materials, was a huge financial drag and “incurred an operational deficit of $1,171,100 in 2019 (with $441,600 allocated to VET)”.
It said while UniPrint was not a break-even business unit, an estimated 25 per cent potential savings could be achieved if CDU reduced printing in VET.
CDU responded that it was continuously reviewing its non-core businesses and had ceased operation of the childcare facility.
“CDU has an agreement with a childcare provider to build and operate a facility on CDU premises,” the draft restructure proposal said.
In addition, the report suggested CDU develop a student debt collection process for VET, and said VET incurred “$807,000 in bad and doubtful debts expenses in 2019”.
“VET Services does not have a student debt collection process,” the report said.
“A student debtors policy and procedures document exists, however, this is not followed in practice, and roles and responsibilities across the end-to-end process are unclear.
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“In addition there is a lack of confidence in student debt data due to system limitations presenting an added level of challenge for the VET Customer Service Team and Finance Team when following up with VET students and employers.”
CDU said a new process for student debt management was being developed and would be implemented at the start of the 2021 academic year.
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