2012 Budget for the University of Adelaide
I am pleased to present the Revised 2012 Budget for the University of Adelaide, approved by Council on 13 February 2012.
The key targets of the 2012 Budget are:
- to provide investment necessary for growth, quality and impact and reduce the backlog of maintenance through investment in the University's Great Research Strategy and the delivery of major capital works on all campuses;
- to maintain underlying operating performance relative to the Go8;
- to ensure staff costs are sustainable and taking into account the global financial crisis by maintaining salaries in line with the Go8 average; and
- to continue stability and transparency of funding allocations, with the Planning and Budget Committee considering budget submissions and targets for each Faculty and Division.
The past 12 months have been a period of consolidation for the Commonwealth Government, with the impact of new initiatives promised through the 'Education Revolution' more fully coming into play in 2012. Key to this is the full removal of undergraduate caps in 2012, heralding the move to a system that is now primarily driven by student demand. The implications of this for the University are considerable, as the removal of caps will create an increasingly competitive market for domestic students, with many universities already showing a renewed and sometimes aggressive drive for student recruitment.
The sector is also experiencing a downturn in international student numbers and revenue, due largely to the external factors that remain beyond our control. In addition, the University is also facing an environment where its costs base is growing rapidly and considerable resources are required to both maintain existing facilities and infrastructure and to invest in the ‘future proofing’ of learning and research. These demands are significant and in order for them to be met, choices will need to be made with regard to how and where the University commits its resources.
Despite these significant pressures across the higher education sector and a prudent approach to expenditure in 2012, we have successfully maintained our commitment to key strategic developments that will ensure the University is strongly positioned for the future. In 2012 we will once again commit to maximising our research profile through ongoing support for research institutes and research staff. We continue our commitment to enhancing the student experience and the improvement of learning outcomes, both face-to-face and online. Optimising service delivery and finding operational efficiencies across the organisation will ensure an adequate level of investment is available to fund these crucial strategies.
Overall, the Budget forecast is for an operating result of $40.8M in 2012, with an operating margin of 5.4%, clearly achieving the guidelines set by Council.
Professor James A. McWha
Vice-Chancellor and President
