ENHANCING FINANCIAL HEALTH A significant contributory factor to the deficit in 2020 was the cost of post-employment benefits (pension supplementation and medical benefits) for all Campuses
programmes contributed to 32% of its total income. This supported the operations of the University, which continues to experience shortfalls in government funding. Due to the onset of the COVID-19 pandemic, the University experienced loss of revenues from its commercial operations. Halls of Residence and conference facilities were closed in the last quarter of the academic year. A deficit of BDS$6.3 million arose from these operations compared with a surplus of BDS$9.5 million in 2019. Other income-generating sources are being explored. In March 2020, the Government of Barbados paid to the University the final tranche of BDS$51.1 million, as settlement for a Bond issued under the debt restructuring programme, in exchange for government contributions and tuition fees due to the University. For early settlement of the Bond, payment of tuition fees from the Government of Barbados to the Cave Hill Campus was restricted to amounts in excess of BDS$20 million for fiscal years 2019 and 2020. APPROVAL OF THE BUDGETS FOR THE BIENNIUM 2020/2021 and 2021/2022 The Budgets for the Biennium 2020/2021 and 2021/2022 of the University’s five Campuses, the University Centre and the University Hospital of the West Indies (UHWI)
Enhancing financial health to The University of the West Indies (The UWI) is one of the objectives of “Agility”. During the academic year 2019/2020, the Office of Finance and the Campus Bursaries continued to effectively manage the financial affairs of The UWI to achieve this objective. The funding challenges faced by the University were exacerbated in the fourth quarter of the academic year by the onset of the COVID-19 pandemic. The contributing Governments which provide the largest portion of income in the form of contributions to economic cost, experienced challenges in honouring their financial obligations to the University. Responding to the demands of their own health care systems, meant that some Governments were not able to make their usual contributions on time. The value of tuition fees collected was also reduced. To maintain financial viability, the University pivoted to remote learning at all Campuses. By continuing to exercise fiscal prudence, the University remained viable without sacrificing the quality of teaching, learning and research. The draft audited Financial Statements for the financial year 2019/2020, show that the operations of the University resulted in a deficit of BDS$66.5 million (Restated 2019: BDS$82 million deficit).
and the University Centre and the costs associated with the defined benefit scheme for administrative and technical staff at the St Augustine Campus. The total expenditure recorded for these arrangements was BDS$43.2 million in 2020 (2019: BDS$57.8 million). The pension supplementation element of the Federated Superannuation Scheme for Universities (FSSU) is unfunded. Impairments recorded in accordance with the International Financial Reporting Standard No.9 (IFRS9) accounted for BDS$22.6 million of the deficit in 2020 (2019: BDS$17.2 million). Impairments were recorded primarily on student and government receivables outstanding for several years as well as on investments. These two items of expenditure which continue to influence the results adversely each year are being reviewed by a Special Committee comprising Government representatives, members of the private sector and the University leadership. This Committee will make recommendations to reduce the associated cost to the University.
The University’s engagement in income-generating activities, including the offering of full fee- paying
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