The Australian National University (ANU) has vowed never to embark on a major restructure without a “documented business case” outlining the reason and “realistic” alternatives, following a damning audit of its A$250 million (£133 million) “Renew ANU” savings programme.
The Australian National Audit Office (ANAO) has found that the ANU council approved the savings target without clear evidence it was needed or achievable. The university spent A$35 million making people redundant and A$1.2 million for advice from consultants Nous to achieve A$75 million in annual savings, the report says.
The audit found that financial pressures had built up over years due to “optimistic revenue assumptions and limited spending control”, raising questions over whether ANU’s financial model was sustainable in the long term. Nevertheless, the institution was “not in immediate financial crisis”.
“The ANU Council approved Renew ANU without a clear understanding of the problem, the options available, implementation risks or the expected impact,” the report says. “Council’s decision-making should have considered additional information, options and perspectives, including alternative[s].
“The Renew ANU programme has delivered some savings, but with significant risks. Major risks remain, particularly around staff impacts and reliance on future growth in international student numbers.”
