University College Cork (UCC) has been forced to “review” capital projects after recording a €11.2 million deficit last year which has been attributed to “rising costs”.
The university’s president, Prof John O’Halloran, sent an email to staff on Monday to provide “an important finance and operational update”.
“We have identified a financial deficit in our 2022-2023 year-end accounts of €11.2 million, which represents 2.4 per cent of income. Strong income growth [5 per cent] was offset by rising costs [8 per cent],” he said.
Prof O’Halloran said he had informed the Higher Education Authority (HEA) and “we are working together to achieve our commitment to return the university to a sustainable financial position”.
The university’s leadership team had put in place a “comprehensive plan” called Project Alpha, he said, which would “identify the immediate measures necessary to address the financial position and ensure a sustainable approach to university finances, including the achievement of a surplus position”.
“UCC and the HEA have agreed to review capital projects in the context of the current work plan,” he said.
“UCC consistently shows strong income growth and the fundamentals of UCC remain strong. Our strategic plan remains our north star and we remain committed to its full implementation.”
Prof O’Halloran said further information would be provided to staff at a town-hall meeting next week.
A spokesman for UCC confirmed the deficit and said: “The fundamentals of UCC remain strong and the university is committed to returning to a surplus position.”
A spokeswoman for the HEA said it was informed of the deficit on December 20th and the university will provide a “detailed report” relating to its finances.
“In addition, capital projects have been temporarily paused to allow UCC and the HEA to agree a process for the review of capital projects. The Higher Education Authority are actively engaging with UCC on these matters,” the spokeswoman added.
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