Auditors question Coventry University’s ‘ability to continue’ amid financial turmoil
Independent auditors have called into question the ability of the Coventry University Group “to continue” in light of their most recent financial report.
In a recent audit, the group, which consists of the university itself as well as its holdings within Coventry and external campuses in London and Scarborough, was found to be in deep financial trouble.
The most recent report of the group’s finances for the year ending July 2024 revealed a deficit of just over £60 million, in comparison to just over £2.4 million in July 2023.
Coventry University has since continued to find itself in hot financial water.
Earlier this year, the university experienced a dispute with the University and College Union (UCU) over spending cuts and threatened jobs.
[Coventry University claims] that it ‘remains in a position to maintain financial sustainability’ and that it had ‘£101.4m cash’ after 2023/24 despite the £60 million hole in its budget
The university has been quick to react to criticism levelled by unions, auditors, and concerned students, claiming that it “remains in a position to maintain financial sustainability” and that it had “£101.4m cash” after 2023/24 despite the £60 million hole in its budget.
This insistence on financial stability is likely to fall on deaf ears, particularly among investors, now that independent auditors are questioning how long the institution can remain afloat.
The university itself has admitted that the loss in revenue and subsequent deficit is largely due to a loss of students.
In its own financial report, the university revealed that income from international student fees declined by 21.5% since the 2022/23 report, from £232.8 million to £182.6 million.
Income from full-time UK students has also fallen by 14.5%.
The University of Coventry maintains that its future is secure and that the current situation is manageable, but those investigating the situation continue to question whether there is any way the institution can bring in more students, along with the money that comes with them.
Comments (1)
This investigative piece raises crucial questions about university sustainability in the current higher education climate. The auditors’ concerns over Coventry’s £100m deficit and reliance on international student fees mirror sector-wide vulnerabilities—our own analysis shows 23 UK institutions now spend >40% on marketing. While the VC’s ‘transformation plan’ sounds reassuring, the lack of concrete curriculum cuts in the report is troubling. As an alum, I’d welcome more transparency: will arts/humanities face disproportionate cuts? A cautionary tale for all mid-tier universities.