Following reports in the press regarding comments made by the National Audit Office (NAO) in its Annual Report 2013, the University of Malta said in a statement this evening it wishes to clarify that it is not facing a cash-flow crisis, and that its state of finance is stable and healthy despite the ongoing challenges and the ambitious expansion programme underway.

The NAO comments being referred to in the press, refer to a specific period in 2013 during which the University was experiencing some cash-flow shortages as a result of the significant capital projects that were underway, and which resulted in expenditure that had to be paid before cash was made available by the Ministry of Finance through the normal channels.

The NAO report looked at the snapshot of the year-end financial statements of the University which year ends on the 30th September but did not highlight that the balances due to the University had been settled shortly after the said year-end.

At present, the situation is completely different to that reported as all dues from and to Government have been long settled. Following the NAO's constructive comments, the University and Government have since agreed on a better way of synchronizing cash transfers to avoid transitory cash-flow glitches such as that experienced in 2013.

The NAO also commented on the purchase of property adjacent to the University. The University would like to make clear that the negotiating team appointed by Council, which included one of the non-executive Government appointed members of Council, who was present throughout the negotiation process, was fully authorized to conduct and conclude negotiations and did keep both Council and Government informed of the outcome.  

Government continues to support and work closely with the University as more projects are embarked upon in line with the University's Master Plan.