Statement from Chief Operating Officer to Senate Inquiry into quality of governance at Australian higher education providers

Statement from Jonathan Churchill, the University’s Chief Operating Officer.

Thank you Chair and Senators for the opportunity to appear before the hearing today.

I am the Chief Operating Officer of The Australian National University.

I am joined by the staff members who hold responsibility for the functions of our University which best meet the Terms of Reference for this Committee – Kate Witenden, the Chief People Officer and Michael Lonergan, the Chief Financial Officer.

The Chancellor Ms Bishop is engaged in other business today in her capacity as the UN Secretary-General’s Special Envoy on Myanmar.

The Vice-Chancellor Professor Bell is on sick leave with the flu and sends her apologies.

We have listened carefully to the proceedings from earlier today and the allegations made against the University. We take what has been said very seriously. On a preliminary view, a number of statements are not correct but we will examine all of the statements made and respond with particularity and in writing to those assertions. 

In relation to Dr Liz Allen, I draw the Committee’s attention to the fact that there is a current grievance procedure against the University initiated by Dr Allen which makes it impossible for me to comment while the grievance procedure is on foot, without compromising those current proceedings.

The ANU is one of 22 universities who made submissions to this Inquiry and we welcome the opportunity to appear before this Inquiry into this important issue and share our experience. As a university we are on a journey to financial sustainability, and we acknowledge that change is difficult.

As we have reflected in previous Parliamentary hearings, the ANU is unique in the higher education sector as we are the only university established, almost eight decades ago, under federal legislation.

We have vigorous and transparent reporting mechanisms in place because we are a Commonwealth entity, including the tabling of our Annual Report in Federal Parliament, the annual auditing of our finances from the Australian National Audit Office, and our Vice-Chancellor’s salary is benchmarked by and set in consultation with the Commonwealth Remuneration Tribunal.

Today, the ANU is a $1.25 billion organisation, with approximately 22,000 students and 4,500 staff.

We have the highest concentration in the Australian higher education sector of students living on campus here in Canberra and we place the highest priority on their safety and wellbeing.

We are the primary recipient of the National Institutes Grant (NIG), which is around 17 per cent of our operational revenue and provides us with long-term and stable funding to undertake research of national importance.

Every academic unit of the University is a beneficiary of the NIG and our University has been at the forefront of research breakthroughs and the creation of impactful public policy.

There is constant tension between our role as a great university that fosters research and education of the highest order and our role as an institution that operates responsibly with the public funds we receive.

Our financial situation is in need of urgent repair. Since 2022, the ANU has been spending over $2 million per week more than we earn, and our deficits are not sustainable.

Our leadership, supported by our Council, has worked with our community to implement and mature our financial controls to address the University’s financial position. While these are not popular, they are necessary and responsible interventions.

Our University is not alone, for we are joined by two-thirds of the Australian higher education sector who have also posted operational deficits in recent years.

We are on a challenging but necessary journey, and difficult choices are being proposed. Our community is experiencing significant change, but over the coming months the ANU will emerge as a more sustainable institution with a brighter future, ensuring that we can continue to deliver on our national mission.

Our reform programme ‘Renew ANU’ is a considered, whole-of-university approach designed to address our budget deficits, our operations and our systems. We are re-structuring and re-configuring our organisation to make it fit-for-purpose with the ability to best meet the needs of a modern-day university, not only in our academic enterprise but also in our professional streams of work.

At every step we have released draft plans and proposals for consultation with our community and we have taken on board the feedback we have received over the past 10 months. That feedback has been extensive. Some of it has been hostile, as one would expect; the point of the process is to hear all points of view. The ANU has been on a journey. We know that this involves difficult decisions, particularly when it comes to efficiencies, and not all of those necessary decisions are easy for some to accept. As Honourable Senators know, change can sometimes be painful, but it is also necessary for any longstanding institution to refresh itself so as to be in the best possible position for the future.  

The ANU Council, our governing body, has 15 members. In addition to the Chancellor and Vice-Chancellor, we have six members who are elected from within ANU. These include internal academic and professional staff and our postgraduate and undergraduate student body, and seven external members who are appointed by the Federal Minister for Education. Our internal representation on the ANU Council is amongst the highest in the university sector.

Our external Council members bring considerable expertise and diversity. That diversity includes a range of opinions – sometimes strongly held, as you have heard this morning from the personal perspectives of some current and former Council members. Those views are personal to them. Members of Council have a deep commitment to the highest standards of governance, accountability and adherence to their legal obligations, both statutory and fiduciary, as well as ethical obligations.

I should advise the Committee of the recent appointment to Council of two eminent new members, the Hon Wayne Martin, the former Chief Justice of Western Australia, and Mr Andrew Metcalfe AO, the former Secretary of the Department of Immigration and holder of numerous other senior roles in the Australian Public Service.

We are committed to continuous improvement in our governance framework, and our work continues to evolve. For example, we have renewed the membership of Council and sub-committees, streamlined reporting, ensured Council papers are clear and concise, implemented informal briefings for members to ensure strong financial literacy, especially for those members without budgetary or complex organisation management experience, expanded the remit for the Student Safety and Wellbeing Committee to include staff, and transitioned to a dedicated Board Management Software system.

We aim for the highest standards and are committed to listening and learning from our peers, our community and other relevant sectors to determine best practice for higher education.

Thank you. 

Jonathan Churchill

Chief Operating Officer