Unisel in the red

Unisel is losing more and more money every year, largely due to its PIYSB managers, the Auditor-General's report said.

PETALING JAYA: Pendidikan Industri YS Sdn Bhd (PIYSB), the Selangor government-owned company managing Unisel -University of Selangor- is losing more and more money every year.

According to the 2011 Auditor-General’s report, PIYSB experienced a pre-tax loss of RM37.63 million in 2010; nearly 200% increase from 2009.

In 2009, the company lost as much as RM12.62 million pre-tax. It only appeared to gain profits in 2008; with RM5.97 million by the end of that year.

The growing losses, the report added, were largely due to Unisel’s shrinking student population.

“The main revenue over the past three consecutive years from 2008 to 2010 was caused by the decreasing number of student entries,” the report said.

It added that PIYSB’s expenses were growing as well. In 2008, it spent RM83.53 million. The next two years after that, recorded a total of RM95.78 million and RM102.87 million respectively.

“The rise in expenses were caused by the payment of wages and allowances, asset depreciation, upgrading, management bond fees, utility fees, Employees Provident Fund contributions and the high rental fees,” it said.

It added that PIYSB’s management styles were at fault as well. The report defined PIYSB’s deficiencies as:

• student intakes did not meet their targets

• the increase in fee arrears

• some university facilities were mismanaged

• an internal audit process that did not work

• the lack of a Auditing and Inspection Committee

• no Annual General Meetings

• the lack of Standard Operating Procedures approved by its Board of Directors

According to a chart in the report, Unisel did not meet its student registration targets in 2010, receiving only 9,933 entries out of a target of 11,895. It however met 2009 and 2011′s targets respectively with 11,128 out of 6,864 and 10,083 out of 5,290 respectively.

With this, the Auditor-General’s report stated: “PIYSB’s financial performance is not satisfactory as the pre-tax losses, accumulated losses and its liabilities have increased in 2010.”