Federation University has posted a $41.2 million loss - its first operating deficit since 2017 - as income from international students remains lower than pre-pandemic levels and student numbers fall.
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University vice chancellor Professor Duncan Bentley blamed an "unfavourable swing" of $70 million in the valuation of the university's investment holdings for the deficit and a 73 per cent drop in "partner provider income" revealed in the institution's 2022 Annual Report.
The impacts of the pandemic, volatility in global economic markets, a more restrictive approach to international student visas and high inflation also contributed to the loss.
The university is also forecasting operating losses for 2023 and 2024, but Professor Bentley said there was a four-year plan to return to surplus.
In good news for the institution, while international student revenue was still 22 per cent down compared to 2019, it was actually 61 per cent higher than expected for 2022 thanks to the quicker than anticipated return of international students to Australia.
During the depths of the pandemic when international students could not travel to study, the impact on the university was dire.
The number of local students has also fallen across both higher education and TAFE sectors in Ballarat. In 2022 there are 3877 university and 4747 TAFE students in Ballarat, compared to 4154 and 4757 respectively for the previous year.
Across all campuses, including online, and offshore international partner providers, there were 13,393 higher education students enrolled with Federation University in 2022, down 3 per cent from 2021, and 5393 TAFE students, down 1 per cent.
But the number of students starting their studies across all campuses in 2022 jumped sharply, up 22 per cent from the previous year.
Victorian Tertiary Admission Centre (VTAC) first round offers made in January were down on the previous year, as they were for the whole university sector. Federation made 1125 offers, including 1047 to domestic higher education students and 78 to TAFE students with nursing, education, criminology and criminal justice, biomedical science, veterinary and wildlife science and psychological science among the most popular courses.
As Australia's first co-operative university, we will be in a strong position to grow our university to support the regions we serve with the pipeline of skilled workers they need to succeed
- Professor Duncan Bentley
"While the annual report looks back on our 2022 results, Federation is focussed on the future - delivering a strong and sustainable university that transforms lives and enhances communities," Professor Bentley said.
"We anticipated the impacts of the pandemic and are well advanced on rolling out a comprehensive plan that will return us to surplus within the next four years and provide a solid foundation for future growth."
The Federation University 2022 Annual Report, tabled in state parliament yesterday, revealed a big increase in employee-related expenses, from $174,384,000 in 2021 to $182,899,000 in 2022.
The number of staff across all of the university's campuses increased overall from 1659 in 2021 to 1720 in 2022, but there was a small drop in full time staff from 883 to 877, an increase of six part time staff and 12.6 per cent jump in fixed term and casual staff from 482 in 2021 to 543 in 2022.
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There was a 14 per cent increase in the number of hazards/injuries staff reported and the average cost per occupational health and safety-related claim almost doubled from $94,885 in 2021 to $186,506 in 2022. Workers compensation payments in 2022 reached $1,356,000 up almost 30 per cent from $1,054,000 the previous year.
Professor Bentley said there was much to look forward to in Federation's future as it works toward becoming the first university in Australia to embed the co-operative education model across all its programs from 2025, offering significant work placements and building stronger industry connections into every course.
He said the university had anticipated the results and central to its long-term plan to return to surplus was the cooperative university model where staff and students work collaboratively with local employers to design, develop and deliver courses and programs.
"As Australia's first co-operative university, we will be in a strong position to grow our university to support the regions we serve with the pipeline of skilled workers they need to succeed," he said.
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