Written answers

Wednesday, 7 November 2018

Department of Education and Skills

Fiscal Data

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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67. To ask the Minister for Education and Skills the deficit accumulated at Waterford Institute of Technology; his plans to address the deficit; the measures that may be considered in relation to same; and if he will make a statement on the matter. [46016/18]

Photo of Joe McHughJoe McHugh (Donegal, Fine Gael)
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The audited accounts for 2015/16 for Waterford Institute of Technology (WIT)  has a significant accumulated deficit (€4.4m deficit after FRS 102 adjustments).  The draft accounts for 2016/17 and projections for 2018/19 continue to show an operating deficit which will further impact on the accumulated deficit position of the institute. 

In order to address these financial issues the HEA is liaising closely with WIT and has agreed a financial plan to bring the institute back into a balanced budget. The plan includes new programme development linked to industry engagement, restructuring of campus companies, recruitment strategy to return student base to 2012 levels and the implementation of a plan to address retention weaknesses.

A quarterly financial report is submitted to the HEA by the President in relation to the financial position. The issues which have affected WIT financial position are a continued reduction in student numbers, reduction in completion rates, restructuring costs, on-going cashflow issues, a reliance on research income and repayment of a capital loan to DES.

My Department has agreed to defer repayments of the WIT loan in 2018 to aid the financial situation at the institute. The HEA is receiving quarterly reports and monitoring the situation closely in consultation with my officials.

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