Massey University financial loss not as bad as once feared
Massey University’s deficit for the year is not as bad as forecast, but it is still a multimillion-dollar loss.
The university declared a $45.5 million deficit for the 2023 year when it presented its unaudited financial statements at its council meeting on Thursday.
According to the meeting agenda, the loss was due to lower than expected student fees, student government grants, higher staff-related expenses, and higher other expenditure. This was partially offset by higher research income and consultancy, conference, trading, and other income.
The year’s income of $537.2m was $12m above what had been budgeted for because of lower government grants and student fees. Expenses for the year of $582.7m were $57.5m above budget due to delays in achieving savings targets in staff-related expenses and other expenditure and restructuring costs.
The year’s loss included about $19m of restructuring costs.
Outgoing chancellor Michael Ahie said that despite the deficit, Massey’s balance sheet continued to be strong, and the university was debt-free.
His replacement, Alistair Davis, said it was a terrible result, but better than the council was expecting a few months ago, when the predicted loss had been more than $50m.
Other members of the council echoed their comments and said it was a bad financial result. Ahie acknowledged the hard work done by staff to achieve a better-than-expected result.
Ahie’s term has ended. He served 12 years on the council, and eight as chancellor. His successor Davis has been the pro chancellor since November 2023, and a council member since 2018.
Davis previously served on the then Massey College of Business Advisory Board, including being chairman, was the chief executive of Toyota New Zealand and the chairman of the organisation, and was also a director of Toyota Australia and Toyota Finance.
Davis said it was the council’s job to balance the interests of students, academics, professional staff, taxpayers, funders, the environment and society.
He would like to see Massey become more resilient and able to operate with less reliance on constrained government funding, and be able to continue to contribute consistently to New Zealand.
“We are in extremely difficult times, but the university has a variety of plans to respond to these challenges, and over time I am confident that we can return to a healthy position,” he said.
Angela Hauk-Willis was appointed as pro chancellor, who stands in for the chancellor when required.
Appointed to the council in 2022, she has experience in public sector management and administration, having held several senior management roles, including serving as Treasury deputy secretary for 12 years.