The Parliamentary Secretary to the Treasurer, Senator Ian Campbell, and the Minister for Education, Science and Training, Dr Brendan Nelson, today announced that the Productivity Commission will undertake an international comparative study of the resourcing of higher education institutions and the management of those resources.
The Commission will report on levels and sources of university income, the distribution of funds to universities, university expenditure, financial management and accountability, and university investments in commercial activities.
"The study will seek information about the income, assets and liabilities of universities in Australia and comparable countries, the management of those resources and accountability mechanisms for good financial management," said Senator Campbell.
The Commission will release a draft report for public consideration by the end of September this year and a final report within the following four months.
This will enable public discussion of the draft report ahead of the Government's consideration of policy options as part of its current review of higher education.
"The international comparisons developed by the study will make a useful contribution to the higher education debate and will inform the range of options for consideration. The research will be valuable as we look at ways to ensure that Australia's higher education system remains internationally competitive," said Dr Nelson.
Dr Nelson announced the review of higher education earlier this year and recently released the first in a series of discussion papers to stimulate debate on the range of possible policy options.
The terms of reference for the Productivity Commission study are attached.
Further information:
Senator Campbell's office - Wayne Grant 08 9421 1755 or 0407 845 280
Dr Nelson's office - Ross Hampton 02 6277 7460 or 0419 484 095
INTERNATIONAL COMPARISONS OF THE RESOURCING OF UNIVERSITIES AND THE MANAGEMENT OF THOSE RESOURCES
PRODUCTIVITY COMMISSION ACT 1998
The Productivity Commission is requested to undertake international comparisons of the resourcing of higher education institutions and the management of those resources.
The principal objective of the study will be to collect information for Australia and other countries on university income by source, their assets and liabilities, the management of resources, constraints on their use, and accountability mechanisms for good financial management.
In undertaking the study, the Commission is to report on the following for a selection of broadly comparable institutions in Australia and other countries:
1. The levels and sources of university income, including the share of costs between government and students, investment and consulting revenues, donations, endowments, revenues from intellectual property and industry support;
2. The mechanisms for the distribution of funds to universities (including any indexation arrangements and funding models), and constraints imposed by governments and the private sector on the use of those funds (including through regulation, funding conditions and performance requirements);
3. The expenditure of university income, including the broad distribution of funds within universities to teaching, research and other activities, and the distribution of those funds between employee remuneration and other purposes;
4. The overall financial position of universities, including their assets and liabilities, and in particular the extent and form of any investments in commercial activities; and
5. University financial management and audit processes, broader corporate governance arrangements, the external scrutiny of financial management (particularly by government) and general financial performance reporting requirements.
The Commission is required to furnish a draft report for public consideration by the end of September 2002, with a final report to be furnished as soon as possible and within four months after releasing the draft report.