A Comptroller and Auditor General special report on a variety of matters arising from recent audits of financial statements of higher education institutions was published earlier this year. The report noted that universities and Institutes of Technology (IOTs) had cash balances of €706 million at the end of the 2010/11 academic year. When account is taken of restricted reserves and other capital funding requirements, and pension reserves, the cash balance for recurrent purposes was €568 million which also included private sources of income.
This matter has been discussed in detail by my Department with the Higher Education Authority (HEA). I am seeking more prudent management of existing cash balances by the Higher Education Institutions by reducing their allocation in 2013 on a one off basis by €25 million. I have requested the HEA to ensure this measure will not impact on frontline student services. The breakdown of the €25 million by institution has not been determined as yet. This will be a matter for the HEA as it allocates the recurrent grant over the coming year.
