GMIT stops purchases until new budget plan is agreed

Galway Mayo Institute of Technology (GMIT) suspended all procurement in its three schools due to financial pressures at the college.

The suspension, effectively banning certain staff from making purchases, was initiated by management after reviewing expenditure reports for the three schools (Galway City, Mayo and Letterfrack) in June.

GMIT Financial Controller, Jim Fennel, instigated the procurement suspension in the Engineering, Marketing and Science schools.

He said the suspensions would remain in place until, “the relevant head of school/function has agreed a plan with me to stay in budget for 2014”.

Meanwhile, the financial plight of the city college was revealed at a GMIT Common Partnership Forum in April, attended by various members of staff and management.

Minutes of the meeting show that GMIT needs, “a €1.7 million cut to balance budget”. It was noted that already there had been a “series of cuts across the sector”.

GMIT President, Michael Carmody, according to the minutes, “noted the challenging times” and is to revert to the Governing Body with a report in relation to the college’s budget.

Mr Carmody will also be meeting with the Higher Education Authority regarding GMIT’s budget.

It was pointed out at the forum that retention of students is a cause for financial concern; and that a 20% retention rate for first years is “not acceptable”.

The forum also identified that the collection of fees and bad debts from students was an issue contributing to GMIT’s financial predicament.

“Bad debts of €300,000 is a significant loss of revenue and needs to be addressed,” according to the minutes of the forum meeting.

Read more in today’s Connacht Sentinel