Money, money, money: Adelaide University releases its audited 2020 financial results

Words by Lakeisha Watkins

Adelaide University’s 2020 audited financial results have been released ahead of its 2020 annual report. In an email sent by Vice-Chancellor Peter Hoj last week, it was stated that the university’s financial results looked “better than expected.”

It has been revealed that the statutory net operating surplus for the university was $40.8 million for 2020, $2.1 million less than 2019’s surplus of $42.9 million. This result includes $10 million in donations and bequests as well as $20 million of research funding from the Federal Government.

An operating surplus measures the difference between revenue and expenditure.

The university also reported an “underlying 2020 net operating result” of $9.3 million, down from 2019’s $12 million. This amount is representative of “discretionary funds” which can be reinvested within the “university’s critical operations of teaching and learning, research, and infrastructure.”

An email sent to students by the Vice-Chancellor explained the reason for these figures.

“These results are mainly due to the proactive savings measures implemented last year, record years for research revenue and philanthropy, and enrolments that were not as low as we had expected.”

A media release published on May 28 by Interim Director David Ellis revealed that international students brought a total revenue of $254 million in 2020. Research revenue also greatly contributed to the university’s finances, totalling $234 million compared to the $185 million recorded in 2019.

Yet the financial savings measures that were put into use included staff purchased leave, voluntary separation of 157 staff, and a pause on most infrastructure projects and staff hiring. This has still been felt in 2021 with the recent university shutdown.

Though the 2020 financial outcome is better than anticipated, COVID-19 still poses a challenge to the university, which was also highlighted in Hoj’s email.

“. . .Our financial result for 2020 looks better than expected, but the global pandemic continues to cause a challenging situation that is more complex for us than these numbers show.”

Ellis’ media release revealed that the university’s 2020 revenue totaled $977 million. Approximately 23,000 eligible full-time study load (EFTSL) students were enrolled, including more than 7,400 international students. The university also had 3,900 full-time equivalent (FTE) direct jobs in South Australia.

The University of Adelaide ranked as the number one university in the state and 8th in Australia in QS Universities’ measurements. On a global scale, it ranked 106th on QS World University Rankings, 118th on Times Higher Education, and 152nd on Academic Ranking of World Universities.

The University’s 2020 Annual Report will be presented to the State Parliament next month.

Annual reports enable Parliament to be informed on the performance, achievements, and financial status of Commonwealth entities, such as universities.

The Vice-Chancellor has advised that he will continue to update students on the university’s position throughout the year.