Federation University has recorded a massive $81 million loss during 2023 according to its annual report tabled in state parliament on May 1.
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An almost $69 million increase in spending contributed to the deficit, which was $23 million higher than its budgeted $58 million deficit and almost double its deficit in 2022.
"As with most universities across Australia and all regional universities (noted in the Universities Accord report), the University has not been attracting and retaining the new students that we must, so in 2024 we will need to look for ways that we can innovate and collaborate to grow revenue and reduce unnecessary costs," Federation University vice chancellor Professor Duncan Bentley wrote in the report.
The university's total revenue across all of its campuses of $295.6 million was more than 10 per cent below its budgeted target, mainly due to a 55.5 per cent drop in international student income from the university's overseas partner providers.
Despite the loss, the number of students at the university's Ballarat campuses actually increased from 3863 students in 2022 to 4095 in 2023, but TAFE numbers dipped slightly from 4747 in 2022 to 4529 in 2023.
"Our 2023 Annual Report highlights the challenges our university and the tertiary education sector face, which are particularly acute for regional universities," Prof Bentley said. "This underlines the importance of our Future Fed initiative which will transform the way we operate and ensure we can maintain a strong and sustainable university for future generations."
Staffing numbers across its campuses increased slightly despite the university pausing external recruitment to save money, instead focussing on internal promotion and controls.
But the $6.4 million savings this measure created, according to the annual report, has not been enough to save jobs.
In March the university announced it would slash 200 jobs in a bid to return to financial sustainability after falling student numbers left a $20 million hole in its budget.
Provost Liam Sloan said at the time that a post-COVID downturn in international and domestic students had led to two years of "significant operational deficits" putting the financial viability of the university in jeopardy.
The number of international students attending Federation fell 49 per cent between 2019 and 2023, causing a drop of $79.1 million in the university's revenue.
The job cuts, to be achieved through voluntary and forced redundancies, are part of the university's broader Future Fed plan to transform the university and bring it back to financial sustainability with an operating surplus by 2026.
The job cuts and plans have caused distress and anger among university staff, students and the community who will rally at the Mount Helen campus at 12 noon on Thursday calling on the vice chancellor to stop the devastating cuts proposed for the university that they say will destroy valued courses and further undermine already stretched student support services.
The spending increase includes a one-off $22.8 million of franking credits to the Australian Taxation Office after a ruling that impacted the sector and was required to be recorded in the annual report. A note in the report says Federation University will take legal action to recover the franking credits through the courts.
