Universities: NAO warns cuts pose bankruptcy risk

More universities in England could be put at risk of bankruptcy as a result of cuts and changes to funding, the National Audit Office (NAO) has warned.

A report from the financial watchdog says some universities will benefit from the changes but some will have less money.
It says the public might need to be told more about universities at risk.
Universities minister David Willetts says the changes will increase universities' cash funding by 2014.
Grants cut The NAO report says the sector has seen "strong growth in its income" in recent years.
But it says: "The new funding framework, coupled with the squeeze in public funding, is likely to increase the level of risk within the sector.
"While there are a number of financially strong institutions, there is wide variation in institutions' financial performance."
It notes: "The transition and the new environment itself will increase the risk within the sector, potentially raising the number of institutions at high risk of failing".
Teaching grants to universities are being cut and universities will be expected to fund their courses from higher tuition fees, which are being raised in 2012 from just over £3,000 a year to a maximum of £9,000.
The government has said it will protect funding for science-based courses and research.
The NAO examined the regulation of the financial health of England's universities by the Higher Education Funding Council for England (Hefce).
About one in 10 institutions had been in the red in at least two of the past three years, it said.
And a quarter of England's universities fell below at least one benchmark designed to check an institution's finances in 2009-10.
Transition The auditors said that as of last December, Hefce classified seven universities as being "at higher risk" .
The length of time that a university was in this category had grown, the report found.
One institution, Thames Valley University, had been "at higher risk" for 12 years.
NAO head Amyas Morse said: "The funding council has performed well during a benign environment for higher education.

"However, the sector is now facing a period of transition to a very different financial environment, increasing financial and management pressures on our higher education institutions."

Chairman of the Committee of Public Accounts, Labour MP Margaret Hodge, said: "Ongoing reforms towards a market-based system open up higher levels of risk for the financial viability of institutions."
Mr Willetts said: "I welcome the report's finding that our higher education sector has 'increasing robustness in its financial stability'.
"However, we are not complacent about the challenge ahead. We are clearly moving into a changing financial environment, but it should provide our universities with access to 10% more cash funding overall by 2014-15."
'Informed decisions' The NAO report says Hefce should consider giving the public more information about universities judged to be at risk.
At the moment, the funding council waits at least three years before naming institutions thought to be at risk and then only does so if it considers there would be no harm to current students or the institution.
The report says: "As a greater proportion of funding begins to follow the student, the funding council should consider whether the current arrangements strike the right balance between protecting institutions and their students, on the one hand, and enabling prospective students to take more informed decisions on where to study, on the other."
Sally Hunt, general secretary of the lecturers' union UCU, said the report "lifted the lid on the financial health of higher education and the likely consequences of the government's proposals".
"The worrying conclusions are that, while there might be a handful of winners, many institutions will struggle to cope financially with the new regime," she said.
"We believe that our universities do an excellent job and letting them fail would be an act of academic barbarity."

Seven universities were classed as being at "high risk" last December

Alex Ferguson charged over ref rant

Charged ... Sir Alex Ferguson. Photo: Getty Images

Manchester United manager Sir Alex Ferguson was charged with improper conduct by the Football Association following his criticism of referee Martin Atkinson in the defeat at Chelsea.
Ferguson appeared to question Atkinson's impartiality following United's 2-1 loss at Stamford Bridge on Tuesday, which saw the Red Devils manager hit out at Atkinson's failure to dismiss Blues defender David Luiz.
"The FA has today charged Manchester United manager Sir Alex Ferguson with Improper Conduct relating to media comments," an FA statement said.

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Ferguson has until 4pm on Tuesday, March 8 to respond to the charge, which could lead to a fine or a touchline ban.
In a scathing post-match tirade broadcast on Manchester United's official television channel, Ferguson gave a damning verdict on Atkinson's display.
"You want a fair ref. I don't know how he got this game. I must say, when I saw who it was, I did fear that," Ferguson told MUTV.
"It's three years in a row that decisions have changed the game here. It was incredible.
"Luiz had done [Javier] Hernandez off the ball and nothing was done. Then he does [Wayne] Rooney, clear as day.
"You are talking about what changed the game in the second half. These are decisions that change the game and he is going to be refereeing every week!
"I'm proud of my players. They endured a lot of bad decisions against them and they have done their best.
"They [Chelsea] got a lot of decisions that surprised me in a major game like that."

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Crusaders crush the Waratahs

Sonny Bill Williams and his Crusaders side overcame a error-riddled start on an emotional night to smash the NSW Waratahs 33-18 in their Super Rugby clash in Nelson on Friday.
It was the first defeat in three games for NSW, whose woes were compounded by injuries to centre Rob Horne and hooker Tatafu Polota-Nau.
Playing their first match since the earthquake wrecked their home city, the Crusaders trailed 13-6 early on, but hit back to lead 26-13 at the break.

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The match, which was switched from Christchurch, was also played in memory of the 29 miners who died in the Pike River disaster last year.
Both teams scored three tries, with centre Tom Carter and halfback Luke Burgess crossing early for the visitors.
Three missed kicks from five-eighth Daniel Halangahu kept the Crusaders within reach.
Former Bulldogs league star Williams, who was playing his first Super game despite already representing the All Blacks, threw a couple of wild passes in the first eight minutes.
However, the strapping back and his centre partner Robbie Fruean were prominent in a storming comeback, which produced 27 unanswered points.
Williams crossed for a try less than two minutes into the second half and set up Fruean for one of his two five-pointers.
Williams also displayed some sublime running and passing skills before being replaced after 66 minutes.
The Waratahs were clearly outpointed in the scrums and at the breakdown, though they held their own in the lineouts.
They hadn't conceded any tries in their first two games, but missed too many tackles as the Crusaders poured the pressure on.
NSW couldn't have started better, with Carter crossing after a beautiful Polota-Nau pass.
Two penalties to five-eighth Dan Carter gave the Crusaders a 6-5 lead.
Burgess, who was everywhere early on, then combined with No.8 Ben Mowen to score the second try.
Fullback and replacement goalkicker Kurtley Beale added a penalty to stretch the NSW lead to seven points.
The game tilted towards the Crusaders after they scored 20 points in the final 10 minutes of the first half.
Carter kicked a penalty and then converted two tries in four minutes from Fruean.
The first came after he raced almost 50 metres after intercepting a Burgess pass, while Carter added another penalty just before the break.
The prolific goalkicking All Black converted Williams' try as the Crusaders started the second half the way they finished the first.
Reserve back Afa Pakalani scored a consolation try for NSW with eight minutes remaining.

Liverpool may unleash Carroll against Man U

Andy Carroll may play his first game for Liverpool. Photo: AP

Liverpool may try to take advantage of Manchester United's defensive crisis by handing record signing Andy Carroll his debut in Sunday's highly anticipated northwest derby.
United, which leads the Premier League by four points despite having lost two of its last four matches, go into the game at Anfield without central defenders Nemanja Vidic, Rio Ferdinand and Jonny Evans.
A thigh injury has prevented Carroll from playing for Liverpool since his 35 million pound ($56 million) move from Newcastle on January 31 but this could be the perfect occasion for the England striker to make his debut.

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"Whether he will be involved on Sunday, I'm sure Fergie (United manager Alex Ferguson) would love to know," Liverpool manager Kenny Dalglish said.
"We have said all along we have been delighted with his progress and what he has done. There has not been anything which he has done which has not been encouraging."
United's first stumble of the season has coincided with the absence of key defensive players.
Ferdinand and Evans have missed the last few weeks through injury, while Gary Neville retired last month. Fellow right back Rafael has been absent through a mixture of injury and suspension.
To make matters worse ahead of this weekend, Vidic is suspended after receiving a red card in the 2-1 defeat at Chelsea on Tuesday. Left back Patrice Evra is an injury doubt.
A central-defensive combination of the rarely used Wes Brown and the inexperienced Chris Smalling could struggle if Carroll is chosen to play up front with Luis Suarez, another recent Liverpool signing.
"Obviously the Carroll-Suarez (partnership) is something everyone's been talking about since the January window when we brought them both in, and it will be nice to see them as a partnership sometime in the future," Liverpool assistant manager Steve Clarke said.
United have played a game more than second-placed Arsenal, who host Sunderland on Saturday.
Ferguson's team is looking to bounce back from the defeat to Chelsea, the defending champions who are still not out of the title race.
"At this club, you have to recover," Ferguson said.
"That result's put us back but we have to recover for Sunday's game against Liverpool. We didn't deserve to lose (at Chelsea)."
Arsenal were beaten 2-1 by Birmingham in last Sunday's League Cup final but are still involved in three competitions as they look to end a six-year trophy drought.
Arsenal manager Arsene Wenger acknowledged United's recent defeats to Wolverhampton Wanderers and Chelsea have left the door open.
"For us, it keeps us in the race. If we win our games it just depends on us," said Wenger, whose side will hosts United in the run-in.
"It's down to our results and it depends how consistent we can be. What's important for us now is to be strong at home. We dropped points at home at the start of the season but since December, we have been strong at home and that will be vital for us."
Third-place Manchester City host bottom side Wigan in one of six other games on Saturday.
Birmingham are at home to West Bromwich Albion in a central England derby match, second-bottom West Ham host Stoke, Aston Villa travel to Bolton, Blackburn visit Fulham and Newcastle host Everton.
On Sunday, fifth-place Tottenham are at Wolves and Chelsea look to build on their morale-boosting win over United when they go to Blackpool on Monday.

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Alan Hansen on Liverpool-Manchester United

Manchester United's defeat at Chelsea makes losing at Liverpool - never the most welcoming of arenas for Sir Alex Ferguson and his players - unthinkable.

If Sir Alex was taking positives from Tuesday's 2-1 loss at Stamford Bridge, they will focus on a first 45 minutes that was the best I have seen them play this season. Ferguson will believe if United replicate that form at Anfield on Sunday it will be good enough to come away with something.

It was followed, however, by a second half, in which United lost their grip on the game in a manner that would not have happened under other Ferguson teams that have won Premier League crowns.

Many things have changed in football over the last 30 years but one thing that has stayed resolutely the same is that away form dictates title campaigns. You win titles with your away form and United's has been unimpressive as they have dropped 22 points, hence the fact that the championship race is still wide open.

United saw decisions go against them at Stamford Bridge but a look back over their form this season reveals they have also had the benefit of similar situations.

They won 2-1 at West Bromwich Albion but could have had Gary Neville sent off when he brought down Graham Dorrans. They got a good draw at Tottenham but when they won 3-2 at Blackpool they were fortunate when Rafael brought Luke Varney down in the penalty area with the score 2-0 but referee Peter Walton did not give the spot kick.

United lost at Wolves and even when they won 4-0 at Wigan last Saturday they were under the cosh for the first 20 minutes and Wayne Rooney should have been sent off for his elbow on James McCarthy.

Liverpool's season hardly hinges on beating United but there is little doubt they will be as desperate as ever to do so Alan Hansen

This is all part of winning titles. Not many teams have claimed the big prizes without enjoying some luck along the way with decisions, but it all underlines the uncertainty of United's form away from Old Trafford this season.

Now they face one of their sternest tests of the season; in front of The Kop and against a Liverpool side showing encouraging signs under Kenny Dalglish despite their loss at West Ham United on Sunday.

Liverpool have the added incentive of knowing victory may just put an obstacle in the way of United's attempt to claim a record 19th title and overhaul their own record - although that will not register for a second in the minds of Dalglish and his players.

Certainly, United must not lose. Arsenal have the easier run-in and of course the two teams meet at The Emirates on Sunday 1 May. While I do not think United's season will go into freefall if they are beaten by Liverpool there is always the possibility that self-doubt could surface.

That said, what no-one can doubt about this United team is the inner strength that has seen them through a season when they have not hit the heights. It is this resilience that sets them apart. They fight all the way and have a team spirit that serves them well in tight situations.

The other major blow at Chelsea, aside from defeat, was the sending off of defender Nemanja Vidic, who now misses the game at Liverpool. I make no secret of my admiration for United's captain - he is a magnificent defender who has been sensational for them this season.

Chris Smalling has done incredibly well in his short spell in the time, but how Ferguson would love Vidic alongside him on Sunday. Smalling is a real talent in the making, but he is inexperienced and, with Rio Ferdinand still out, you could now be looking at a United back four of Patrice Evra (if he's fit), Smalling, Wes Brown and John O'Shea.

They are decent players but I regard the defensive triumvirate of Vidic, Ferdinand and goalkeeper Edwin van der Sar as the best combination of its type in the last decade. You could make a strong case for John Terry, Ricardo Carvalho and Petr Cech at Chelsea, but I would go with that United trio.

United will need to be very strong mentally as well as physically at Anfield with Ferdinand and Vidic out on Sunday and no doubt this is something that will encourage Liverpool.

Man United will be without the suspended Vidic against Liverpool

Liverpool's season hardly hinges on beating United but there is little doubt they will be as desperate as ever to do so. It will increase the feeling of optimism engendered by Dalglish since he returned, even after losing to West Ham.
There is much work to do, that much is obvious, but they had produced a run of clean sheets and decent results before last Sunday and there is a different atmosphere about the place these days - although Manchester United always brings out great fervour from Liverpool's fans whatever the situation.
Andy Carroll, Liverpool's record £35m buy from Newcastle United, has yet to make his debut because of injury, but there is talk of an increased temptation for Dalglish to turn to his height and sheer physical presence to prey on United's under-strength rearguard.
This speculation is understandable but let me assure you Dalglish will only play Carroll if he is fully fit. He will not take risks and why should he? As he said, he has signed Carroll to serve Liverpool for the next few years, not gamble on him when he is not fully fit for the sake of one game.
Luis Suarez will be another key figure on Sunday. He is quick, hard to handle, gets goals and loves to turn defenders in dangerous areas, although he was quiet at West Ham.
Liverpool and Dalglish will have their sights firmly set on victory on Sunday. The picture for United is even bigger because it takes in the Premier League title - and this is a game they cannot afford to lose.
Alan Hansen was talking to BBC Sport's Phil McNulty.

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