Volume One 2012 Universities' funding holes for super liabilties
Auditor-General's Report to Parliament
30 May 2012
There is a critical need for NSW universities to negotiate funding arrangements for superannuation liabilities with the Australian Government as universities face increasing employee retirements.
“I have reported the need for funding arrangements between universities and the Australian Government since May 2009,” said the NSW Auditor-General, Mr Peter Achterstraat, following the release of his financial audit report to Parliament today. “In just one year, superannuation liabilities for universities have increased from $3 billion in 2010 to $4.3 billion in 2011, with the University of NSW and The University of Sydney comprising 50 per cent of this amount.”
The universities’ Vice-Chancellors’ Committee has approached the NSW and the Australian Governments to progress this issue and while the Auditor-General is encouraged by the engagement of actuaries to determine allocation of funding between the governments he urges a rapid conclusion to the matter.
“It is critical for the governments to quickly complete their negotiations and sign funding agreements with each university,” he said. “A funding timetable must be determined to enable universities to manage their cash flows and inform the superannuation schemes’ trustee.”
The Auditor-General’s Volume 2, 2012, reports on the audits of all ten NSW universities’ 2011 financial statements.
Emily Watson, on 02 9275 7408 or 0425 329 363 and email email@example.com.
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