3 weeks ago
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A leading university has said it is in a "strong" financial position despite a report pointing to a projected 2023–24 deficit of £53m.
Internal Cambridge University scrutineers stated in an annual report that there was no "clear understanding of what had happened or why" regarding the deficit.
The report by the university's Board of Scrutiny said the deficit put "in doubt" some "longer-term aims".
A university spokesman said costs had risen and "efficiencies" were being sought, but argued that finances were "robust" and Cambridge research contributed billions of pounds to the economy.
The report said figures showed that the "projected deficit for 2023–24 is now £53m".
It said there had been a "predicted deficit of £47m for 2024–25".
The report said the board had "sought explanations for the deficit".
But it added: "Worryingly this has not been fully traced to source with the result that there is no clear understanding of what has happened or why".
The report said there was an implication of a "lack of budgetary control", which was "not in the long-term best interests" of the university.
It said concerns about the "state of the university’s finances" and the need for "rapid action" had been expressed to university heads.
"The continued deficit puts in doubt some of the longer-term aims of the university," the report added.
"A more strategic, planned approach to priorities is surely required."
A university spokesperson said: "The university continues to be in a strong and robust financial position."
"World-leading Cambridge research contributes around £30bn per year to the UK economy.
"As with other institutions, costs have risen in recent years, largely due to inflation."
And they added: "The focus of reducing costs will be on finding efficiencies and reducing duplication across our operations to allow funds to invest to maintain our position as a world-leading university.”
