ANU council approved massive savings ‘without evidence of need’

The Australian National University (ANU) has vowed never to embark on a major restructure without a “documented business case” outlining the reason and “realistic” alternatives, following a damning audit of its A$250 million (£133 million) “Renew ANU” savings programme.

The Australian National Audit Office (ANAO) has found that the ANU council approved the savings target without clear evidence it was needed or achievable. The university spent A$35 million making people redundant and A$1.2 million for advice from consultants Nous to achieve A$75 million in annual savings, the report says.

The audit found that financial pressures had built up over years due to “optimistic revenue assumptions and limited spending control”, raising questions over whether ANU’s financial model was sustainable in the long term. Nevertheless, the institution was “not in immediate financial crisis”.

“The ANU Council approved Renew ANU without a clear understanding of the problem, the options available, implementation risks or the expected impact,” the report says. “Council’s decision-making should have considered additional information, options and perspectives, including alternative[s].

“The Renew ANU programme has delivered some savings, but with significant risks. Major risks remain, particularly around staff impacts and reliance on future growth in international student numbers.”

The university has accepted all of the ANAO’s recommendations, including that the council must seek better and “readily understood” financial advice. But the council rejected the accusation that it had approved the savings “without an understanding of the nature, scale or urgency of the financial challenge”.

The financial pressures “developed over an extended period, reflecting structural changes in the university’s revenue and cost base”, the council said, in a response to the audit’s findings. “The programme was developed in a dynamic environment with analysis, options, risks and impacts refined iteratively…and subject to ongoing governance and oversight.”

Australian Capital Territory senator David Pocock said the report showed how a “swathe of failings” had led to “the expense, uncertainty and ongoing reputational and cultural damage” inflicted by the “ill-conceived” programme.

“It justifies the community’s outrage at the manufactured financial crisis and highlights how much anguish could have been avoided with better leadership and governance.”

The ANAO recommended that the university establish a “documented methodology” for calculating and using “non‑audited financial measures” such as “underlying operating result” and “management operating result”, and that council reports “clearly identify which measure is being used and why”.

ANU’s 2025 annual report lists an underlying operating deficit of A$29 million, even though the audited accounts show that the university posted a A$117 million surplus – 7 per cent of its earnings – despite the redundancy bill, a A$54 million downturn in investment income and flat earnings from international students. Expense management and a A$48 million increase in federal funding helped better the 2024 financial margin by A$27 million.

In a one-page foreword to the annual report, interim vice-chancellor Rebekah Brown said Renew ANU was “nearing completion towards the end of 2026. We recognise that these events were felt deeply across our community,” the message says. “We remain committed to rebuilding confidence through clear governance, open communication and steady leadership.”

The report was approved by the ANU Council about a fortnight after the resignation of long-serving chancellor Julie Bishop. It was signed off by Brown and acting chancellor Andrew Metcalfe.

In an address to staff days after Bishop’s departure, Metcalfe gave a frank appraisal of the council’s performance. He said the role of governing body members was to “learn from each other and work hard to ensure the best possible outcomes for our organisations, our staff and the people and communities we serve.

“The ANU Council I joined…sadly did not often display those virtues. Amongst many other issues, there have been several leaks of highly confidential material that clearly related to individuals, and which have clearly and understandably caused great distress.”

Five appointed members resigned from the council in the days following Bishop’s departure. The governing body currently consists of Metcalfe, Brown, interim chancellor Larry Marshall, the chair of the academic board, a research school head and five elected staff and student representatives.

Metcalfe said the remaining council members had “full confidence” in Brown, and that the behaviour of the elected members had been exemplary. “They have worked very constructively and respectfully throughout a very challenging and difficult period.”

He said “mishandling” of complaints by former elected staff representative Liz Allen had been deemed “so egregious” that former public servant Vivienne Thom had found it amounted to maladministration. Thom’s report has not been released publicly.

The annual report shows that former vice-chancellor Genevieve Bell received A$424,000 in termination benefits and A$915,000 overall last year, despite forfeiting A$266,000 in leave allowances following her “resignation” last September.

john.ross@timeshighereducation.com