University of Waikato finds $16.8 million deficit in 2022

The University of Waikato has revealed a 2022 deficit of $16.8 million.

The result means that 6 out of 8 universities suffered financial losses last year.

The university provided details to RNZ ahead of the publication of its annual report next month.

After a surge in registrations in 2021, it said registrations fell 4% last year.

The number of full-time equivalent students was 10,119, of which 1,637 were international students, 700 of whom lived abroad.

The university succeeded in attracting a near-normal number of dropouts last year, but found that many of the students who entered in 2021 completed a one-year master’s degree and did not readmit in 2022, the report said.

The report said the university had to repay $748,500 to the Higher Education Commission because its enrollment was 98.1% of the allocated funds, just short of the 99% threshold for avoiding repayment.

University Vice President Neil Quigley told RNZ that the $11.2 million deficit was due to one-time factors, including changes in accounting for computer software ($4.6 million), losses on investments by the university foundation ($1.3 million), increased depreciation ($2 million) and restructuring costs ($3.3 million).

“The normal operating loss for the year was $5.6 million, which is somewhat within our expectations,” he said.

“The key challenge is that there is no change in our funding, especially government funding to supplement such things,” he said.

He said the university is aiming for breakeven this year, but will likely end up with a small loss.