Unitec Institute of Technology has released its Annual Report 2016 which highlights significant investment in the institute’s transformation.
Unitec Institute of Technology has released its Annual Report 2016 which highlights significant investment in the institute’s transformation, creating new facilities and programmes which will position the organisation as a true 21st century educator, investing in staff development and future-proofed to meet the needs of students and employers.
The report shows the financial commitment made by Unitec with one-off costs associated with the transformation playing a major role in the $24m deficit. Significant deficit was anticipated in 2016 and for the next few years as transformation costs are absorbed.
The final deficit was larger than originally budgeted for due to two factors, one was a drop in enrolments, driven by Auckland’s growing economy and strong employment market. An immediate focus on trimming any discretionary spend significantly reduced the impact of this reduction in revenue. The other factor was the decision by Unitec’s Council to accelerate investment in the transformation, bringing forward some costs anticipated to be incurred during 2017.
With the approval of the Tertiary Education Commission, Unitec has adopted EBITDAR (earnings before interest, taxation, depreciation, amortisation and restructuring) as the key financial indicator of Unitec’s financial health during the transformation as it is a better measure of underlying financial sustainability of its core educational activities and is not influenced by these one-off transformation costs.
Overall Unitec is in a financially stronger position than a year ago. A significant part of this related to the underlying value of our land, which increased $107 million to $212 million. This asset is helping to underwrite and eventually fund the redevelopment.
The full Annual Report 2016 can be viewed here.