The Queensland Treasury Corporation (QTC) Review of the Financial Viability of CQUniversity Australia, a combined assessment conducted in partnership with the University and the Queensland and Australian departments of Education, has been presented to the University.

In it the QTC concludes that the University's operations are considered riskier than some other Universities because of its historic reliance on international student operations, diseconomies of scale associated with the University's operations across regional Queensland - which by their nature disadvantage [the university] both in terms of operations and in delivering course content - and inadequate Commonwealth funding.

Doors open and business as usual at CQUni

You may LINK to a copy of the Report here.

The QTC forecast shows there are not enough resources available to fund the University's general operations beyond 2011 or capital expenditure over the next three to four years.

"The report clearly backs-up what we've known and what we've said for a long period of time - it's extraordinarily expensive to run a regionally-based university and that we, with government, need to find additional and innovative sources of revenue so we can increase demand and deliver on customer expectations," explained CQUniversity Vice Chancellor John Rickard.

The QTC acknowledged the vital role that regional Universities, such as CQUniversity, have in Higher Education and identified many areas in which the University could work to transform the University and secure its long-term financial sustainability.

Guided by the Budget and the University's Strategic and Action plans CQUniversity will consider recommendations, in consultation with Government, to achieve shared goals such as greater student demand, tighter expense control, decreased reliance on international-student-generated revenue (which subsidizes domestic operations) and Commonwealth funding that is more responsive to the diseconomies of scale associated with conducting operations in regional Queensland.

The Review, which began in 2008, was undertaken to assess the capacity of the University to sustain operations given current finances and forecasts; respond to changes (in market demand and business models, for example); and make significant investments in capital improvements.

In 2008 CQUniversity Australia recorded an operating surplus of $6.5million.

The full Report has been made available to share with the University's stakeholders. It contains the QTC's comments on the University's strategic context as well as its assessment of the University's operating position and cash flows.