University College Cork set to record €7m surplus
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University College Cork (UCC) looks set to record a €7m surplus less than a year after it posted an €8m deficit.
Details of the remarkable financial turnaround were outlined to university staff at a town-hall style briefing by UCC president Professor John O’Halloran on Thursday.
A cost cutting plan, an unexpected increase in income, and the government's budget announcement of multi-annual funding for universities all contributed to the turnaround.
In a statement, UCC confirmed that staff were informed of draft financial results “which indicate that the university has returned to a surplus" for the financial year to September 2024.
Staff were told the draft surplus is €6.9m.
“UCC is optimistic that the hard work and endeavours of staff has placed the university on a path to a sustainable financial position,” a spokesman said.
“This in turn will enable progress on key capital projects.
“UCC president Prof John O’Halloran today acknowledged it was a challenging year for the university, and thanked all staff, governing authority and other internal and external stakeholders for their efforts which led to this positive development.”
It is understood that the university expects to make significant progress early in the new year towards delivery of its proposed new business school which has planning on a prime site in Cork city centre; on the expansion of the Tyndall national research institute; and on the development of a new dental school, all of which are of both regional and national strategic importance.
The first reported details of UCC's deficit problems last January when draft figures showed it was on course to record an €11.2m shortfall.
The Higher Education Authority was informed, leading to a temporary pause on and review of all of UCC's capital projects, and the launch of UCC's cost-containment plan, Project Alpha.
Staff were told the university’s income had grown by 14% since covid but that its costs had risen by 17%, and that if it was not addressed, the deficit could spiral to over €20m.
A surge in inflation, interest rate rises, losses on investment funds and crucially, structural funding deficits in pay awards, research overheads, and capital funding, were also to blame.
Under Project Alpha, all discretionary expenditure was scrutinised and only essential expenditure was approved.
Spending on new mobile phones or contracts, on IT, stationery and furniture was paused, and a revised policy on travel and expenses was developed.
Within months, there were signs of progress with the deficit finally reported as €8m.
Staff said the plan caused some pain but there was an acceptance that it had to be done. They also said there was surprise on Thursday at the speed and scale of the financial turnaround.
There was more good news for UCC on Thursday as it was ranked amongst the world’s most environmentally friendly universities, placing fourth in the UI GreenMetric World University Rankings, announced in Brazil, its eighth consecutive year in the top 10.