Technological University Dublin is facing a €10 million funding deficit after encountering a drop in student numbers of almost 2,500 and what its president, David FitzPatrick, has described as “significant cost increases”.
At a meeting last week, the Higher Education Authority (HEA), which had been aware of escalating financial issues at the university for a period of time, agreed an external review was required. In a message to staff on Wednesday, Mr FitzPatrick confirmed this review is likely to be completed by the middle of October.
A key issue is a drop of 2,418 in the number of full-time equivalent students this year to around 21,750 and a delay in reporting it. Because of the way public funding is provided to third level institutions, the financial impact will be felt next year when it is anticipated there will be a shortfall of around €10 million in revenue.
The scale of the deficit poses no immediate threat to the university, which is understood to have reserves of more than €100 million and it is not expected that any bailout will be required.
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There is some surprise, however, that it has suffered such a substantial drop in numbers – at almost 10 per cent of its total student body – in an expanding sector, as well as some concern that if recruitment does not recover quickly, the crisis could deepen.
A spokesperson for the HEA said, however, that it expected that “a plan can be agreed to help mitigate the deficit over the next few years”.
In his message to staff, Mr FitzPatrick also acknowledged an accounting error in which some €7 million in Government funding was allocated to the wrong financial year.
“Needless to say, we want to achieve a situation in which our accounts are error-free and our budgets are subject to less variance,” wrote Mr FitzPatrick. “I have, therefore, agreed a terms of reference with the HEA for a short, independent review to recommend actions. This review will start shortly, with the aim of completing it before the end of October.
“The financial challenges facing the University arise from a reduction in student numbers combined with significant cost increases. We have been, and are, taking actions to address these issues and return the University to a positive financial position.
“The University has been in regular contact with our colleagues in the Higher Education Authority and the Comptroller and Auditor General over these issues. We have kept them fully informed as matters have come to light and they have been supportive in helping us to address the issues arising.”
Asked about the situation in advance of Mr FitzPatrick’s statement, the Department of Higher and Further Education told The Irish Times it had been “informed that in the course of the Higher Education Authority’s routine financial oversight and monitoring of higher education institutions, it became aware of a projected deficit in TU Dublin.
“It is understood that TU Dublin has requested the HEA’s assistance. This is provided for under the HEA Act 2022. The department is liaising with the HEA with regard to next steps.”
