ANU, other unis using ‘custom-made’ accounting to justify cuts

Australian universities are using accounting approaches that can help sell a narrative of financial hardship that can later be used to justify work and course cuts, even if they are in good health. Universities interested in such systems include Newcastle, Monash, La Trobe and the Australian National University (ANU).

Although Australian universities are required to comply with accounting standards, some use a financial measure in their accounting known as the “core result”, which does not have a consistent legal framework. This adjusts the net financial result for one-time or non-operational items and takes into account the limited nature of investment income and philanthropic funds that are not always available to fund day-to-day operations.