International student programs in universities
Overview
In a very short period of time, the Australian education export industry has grown rapidly and is now recognised as a significant export activity. Aggregate income from enrolment fees charged to international students and expenditure by students on goods and services is estimated to be $1.1 billion a year. The principal benefit derived to date by universities from their involvement in the delivery of programs to international students has been a capacity to generate significant additional revenue to support both recurrent and capital needs.
Two Victorian universities, Monash and RMIT, generated fee income onshore from international students in excess of $100 million in the period 1990–92. The audit review has identified several areas where the four universities selected for audit examination need to improve strategic and operational processes relating to the management of their international student programs. Some practices of the universities outlined in this Report, if continued, pose risks to the safeguarding of academic standards. Also, the universities need to upgrade the quality of their marketing strategies, particularly in respect of the engagement and monitoring of overseas agents, and their financial administration of programs. The most significant deficiency in the universities' financial management procedures was their inability to determine total costs incurred in the provision of services to international students.
The audit suggestions mainly deal with actions which have potential to strengthen, from a national perspective, the future administration of international student programs. Finally, the education export industry offers huge tourism potential. Surprisingly, to date, virtually no action has been taken at state government level in Victoria to systematically capitalise on this potential.