Banks pay colleges €9.9m for branches on campus

THIRD-LEVEL institutions were paid €9.9 million during the year 2010-2011 by banks that wanted to set up branches on their campuses.

The banks were frequently given exclusive rights to operate on the university or institute of technology campus, according to the latest report of the Comptroller and Auditor General.

Universities received €6.4 million in rent and concession fees from banks while the institutes received €3.5 million in 2010-2011.

The report, by John Buckley, who has since retired, suggests that there be a review of how such income is used to ensure it is in accordance with the State’s wider education objectives.

The comptroller said the Higher Education Authority had told him that from December 2008 to December 2010 staff numbers in the higher education sector had fallen by 7.3 per cent, while the number of full-time students had risen 10.5 per cent.

An employment control framework was introduced for the sector in July 2009 and the fall in the numbers employed has exceeded the target (6 per cent).

In January 2011 Trinity College Dublin promoted 27 academic staff despite being told by the Higher Education Authority that this was not permitted under the framework. The promotions may have an effect on the grant the university receives for 2012.

A review of payments to academic staff that were in excess of approved rates found €7.8 million in such payments occurred in the period June 2005 to February 2011. Of this figure, €3.58 million occurred at UCD. The authority may now take steps to reallocate or attach conditions on the use of an appropriate level of funding in each institution, the report says.

Mr Buckley found that at the end of the 2011 academic year universities and institutes of technology had cash of €706 million. He noted that the Department of Finance is proposing to set up shared banking arrangements in the public sector, beginning with government departments.

The report examined the finances of a number of subsidiary companies at Dublin City University, including UAC Management Ltd, which is associated with the Helix theatre on campus. The university made a contribution of €1 million to the company over the two years 2008 and 2009, and the company’s accumulated losses of €7.4 million were cleared by the university in 2010.

The university is also funding the DCU Ryan Academy Ltd, which operates the Tony Ryan Academy for Entrepreneurship in the Citywest Business Campus.