Trinity College posts ‘planned’ €24.1m deficit in 2015

Trinity College, Dublin, recorded its biggest deficit in five years in 2015, despite also recording its highest income level over the same period.

The latest annual accounts for the year to September 2015 show the university posted a deficit of €24.1m last year — up from €21.8m in the previous 12-month period.

Trinity’s chief financial officer, Ian Mathews, said the deficit was planned, and reflected the university’s provision for “infrastructural renewal”. The university is expected to report smaller deficits for the next three to four years with the aim of returning to a surplus by 2018/19.

Income grew by 2.1% to €321.2m, which was largely attributable to an increase in academic fees — up €4.7m to €128.9m — and research grants and contracts up €7.2m to €85.2m.

However, such growth was offset by a reduction in grants from the State which are now 33% lower than 2011 levels. Last year, they were reduced by €2.8m to €44.5m.

Mr Mathews said Trinity continued to face a number of challenges because of the significant decline in State funding for higher education in recent years, although he welcomed the fact that the position appeared to have stabilised last year.

Although the core recurrent grant to universities has decreased by over 50% since 2008, Mr Mathews said the impact had been offset by increased student contribution charges and reduced pay rates.

Mr Mathews said the research environment remained competitive. Current projections for research income to remain at around €85m over the next three to four years was dependent on the continuing success of Trinity’s research diversification strategies which focus on securing EU, industry and non-Exchequer funding.

Trinity’s expenditure rose by 3.2% to €325.2m primarily due to an increase in staff costs which were up €5m to €230.7m. Mr Mathews said Trinity had an operating deficit before depreciation and interest cost of €4m, reflecting the college’s “upfront investment in approved income generating strategies.”

The university’s net assets were valued at €887.2m — down €22.1m on the previous year. Trinity also revealed it paid €966,000 to 16 suppliers for goods and services not compliant with national and EU procurement guidelines.