The University of Melbourne 2019 Annual Report was tabled in the Victorian Parliament on 2 June 2020. The Annual Report covers the period from 1 January to 31 December 2019 and does not include the financial impact of the COVID-19 pandemic crisis on the University. The 2019 Annual Report is available here.
As a result of years of prudent financial management, the 2019 Annual Report shows the University was in a solid financial position at the beginning of the COVID-19 pandemic.
The Annual Report shows the University recorded an underlying operating surplus of $74 million in 2019, up $16 million, and a net result of $360 million, up $291 million, as a result of new accounting standards for revenue, income and leasing. These are paper profits, not actual cash.
These results were achieved prior to the outbreak of COVID-19 which will have a significant impact on the 2020 financial results to be shown in next year’s Annual Report. We expect a revenue shortfall against budget of between $260 million and $320 million in 2020 and a higher shortfall in 2021.
University Vice-President (Administration and Finance) and Chief Operating Officer Allan Tait said prudent financial management has enabled the University to deliver multimodal learning and teaching, to continue research, and to support the University’s ongoing operations during the COVID-19 crisis.
It has also enabled the University to implement hardship support for students and staff in direct response to COVID-19 which has been greatly appreciated by students and the University community.
The University of Melbourne plays a significant role in the life and development of Melbourne and the nation and is taking the next steps to affirm its place as a university of excellence, both locally and globally. With 54,000 full time equivalent students and more than 9000 staff across metropolitan and regional campuses, the University is focused on delivering world class teaching, learning and research.
In response to the COVID-19 pandemic in 2020, the Vice-Chancellor and the University’s most senior executives have taken a 20 per cent pay cut to be reviewed after six months, and the executive and senior managers have forgone planned salary increases.