The Australian National University (ANU) admitted its has “much work to do” regarding its management and culture in a report it produced for the sector regulator’s ongoing investigation into its governance.
The Self-Assurance Report, completed for the Tertiary Education Quality and Standards Agency (TEQSA), is the first step in TEQSA’s current compliance assessment of the university’s leadership, council culture and financial position, which started in October, 2024.
“The report makes clear that we’re on a journey and that we still have much work to do in the areas of risk management, governance and culture,” vice-chancellor Genevieve Bell said in a statement.
“We recognise that ANU is at a critical point in its history – one where we need to reset not only our finances but also our operating and structural model.”
The university has reported an operating deficit every year since 2020, except 2021, and has forecast a $110 deficit for 2025 and a break-even for 2026.
The recurring deficits caused a major restructure, known as Renew ANU, that aims to save $250 million in yearly spending; $100 million in salary costs and $150m in non-salary costs.
There has 135 voluntary separations and 83 staff redundancies so far, which has saved $13 million, and $37 million has been saved from spending cuts.
From this point, there will be no more forced redundancies that haven’t already been announced, management has said. More salary savings will come from natural attrition.
It has also restructured its teaching operations, causing entire schools, such as its School of Music, to close.
“While the program of work has taken a strategic, phased approach to organisational change, guided by clear principles and extensive consultation, it has been a significant cultural shift and has caused anxiety and uncertainty in the university community,” the report said.
“Council has been regularly briefed about the progress of the work; and an internal governance board has maintained appropriate oversight … council has identified and is addressing the risks that led to the university’s current financial position, however, there remains work to be done to bring the whole university community along on this journey.
“Given the complexities with the university’s finances, this involves continuing to work with the university community in an enhanced way to ensure the finances are more easily understood.”
The university’s ongoing deficits were not the result of one factor, the report said, but multiple, including the 2017-2021 strategic plan that called for an overall reduced, but more diverse, student base, and a had a projected increase in philanthropic donations. There were also costs associated with hailstorm and fire damage throughout 2019 and 2020.
The strategic plan initiated an ambitious philanthropic campaign that aimed to produce $1bn in donations over 10 years, which would make up for budget shortfalls relating to the overall reduction in student headcount.
The Self-Assurance Report said the philanthropic campaign “never eventuated and was quietly abandoned in late 2022.”
Professor Bell said the university council was very open to reflecting on its own practices and culture when it was discussed at a meeting in early August.
The Cover Letter, which was submitted alongside the Self-Assurance Report, also said ANU will set up an independent investigation into matters raised by academic Liz Allen, who alleged she was bullied and intimidated by ANU chancellor Julie Bishop at the Quality of governance at Australian higher education providers inquiry.
Dr Allen initially lodged a workplace complaint about the incident and the university agreed to appoint an external investigator, who eventually terminated the investigation on ethical grounds of ANU interference.
Other ANU staff and former council members also told the inquiry of alarming bullying, intimidation and secrecy linked to the university’s governing council.
Professor Bell was absent with the flu on the day of the inquiry hearing, although she responded to the claims on the same day in a statement.
“Although we cannot address individual allegations publicly [due to ongoing investigations], I was really saddened to see members of our university in such distress, both those who appeared at the inquiry and those on our campus who have been impacted,” she said.
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“Here on campus, I have now hosted nine ‘Facing the Future’ conversations and I want to thank staff who have made themselves available … I have been encouraged that people have been frank in their feedback, and most have turned up with a spirit of optimism and passion for the university which is a wonderful thing to hear in moments of change.”
The Self-Assurance Report assured TEQSA that ANU has a competent leadership team.
“While the majority of the Executive Leadership Team are relatively new to their positions, they bring extensive experience to their roles from both within, and external to, ANU and the sector,” it said.
Only three out of nine members of its executive leadership team started their term before February, 2024.
The National Tertiary Education Union (NTEU) on Tuesday launched a petition urging the council to sack chancellor Julie Bishop and vice-chancellor Genevieve Bell and reverse the job and course cuts. It follows a vote of no confidence in the leadership pair by 800 ANU staff in March.
“We don’t need a new investigation, we need new leadership,” NTEU ACT division secretary Lachlan Clohesy said of the independent investigation into Dr Allen’s allegations.
“The matters raised during the Senate hearing are already being investigated by the regulator, TEQSA, and that is appropriate.
“This investigation is a distraction at a time when over one hundred people still face forced redundancies.”
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