Victorian auditor-general raises concerns about Federation University's long-term future
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A regional university could struggle to remain viable because of falling student numbers and financial results, according to a new report by the Victorian auditor-general.
Federation University is based in Ballarat with campuses in Gippsland, the Wimmera and Berwick. It went into financial deficit in 2017, after two years of declining results.
The Victorian auditor-general examined the state's eight public universities and recommended that two of them, Federation University and Victoria University, review aspects of their operations to ensure their long-term viability.
It noted that Federation University should remain viable in the medium-term because it has significant financial assets and relatively low liabilities.
"While the overall sustainability of the sector continues to be strong, the indicators for Victoria University and Federation University Australia are starting to show that they may face financial sustainability issues in the longer term," the report noted.
"It would be prudent for these two universities to assess the relevance and financial sustainability of their current course offerings, as well as their staff profile.
"This may help them address any issues early."
Problems at Federation University related to the accuracy of its financial report, its long-term financial sustainability and its asset maintenance policies.
The auditor-general noted the university had accepted the findings and provided details on how it would address them.
University confident in long-term viability
Federation University's vice-chancellor Helen Bartlett said the university was already putting in place measures to address the short-term financial strain it was experiencing.
"Those measures include new strategic plans, restructuring of our academic staffing portfolio, a lot of business development around our products, our courses and investments into the future," Professor Bartlett said.
"It came as no surprise to us.
"The university, over the course of the last couple of years, has already been working on investments for the creation of that long-term sustainability and the future's actually looking very promising.
"So it's short term stress but the long-term prospects are looking very positive to us."
Federation University Churchill campus student Josh Brown is a member of the students' society and said he was not surprised by the results.
"There's a noticeable difference to my first year, you can tell there's a lack of student numbers coming in, or moving out of classes," Mr Brown said.
"I guess it's a combination of a few things: people looking to go to Melbourne from the Gippsland area, and people dropping out and finding better alternatives."
Federation University has set a target to increase student numbers by 7,000 to 28,000 students by 2022.
Topics: university-and-further-education, education-industry, ballarat-3350, churchill-3842, berwick-3806, vic, horsham-3400
