The Ministry of Education, Culture, Sports, Science and Technology has informed private universities whose management has deteriorated that they will take strict measures such as suspending student recruitment, abolishing schools, and dissolving school corporations if it is confirmed that there is a possibility of insolvency. In response to the forecast that it will be difficult to secure new students due to the declining 18-year-old population, we are calling for more efforts to improve fiscal health.
According to the Ministry of Education, the notice was a document in the name of Hiroshi Yoshimoto, the director of the Higher Education Bureau, and was sent to the president of all school corporations under the jurisdiction of the Minister of Education, Culture, Sports, Science and Technology.
The notification is a guideline that there is room for improvement if measures are taken immediately even if the business situation is deteriorating.
■ "Assets under management (* 1) -External liabilities (* 2)" on the balance sheet has been negative in the latest settlement of accounts.
■ The current balance of payments (* 3) on the business activity balance statement has been negative for the last three years in a row.
-I mentioned.
If it is determined that there is a problem in the school corporation management survey, intensive guidance will be given for management improvement in about 3 years.As a result, for corporations whose management improvement has not been effective, it is also considered that the contents of the review considered necessary will be to give a big deal such as suspension of recruitment of departments, abolition of established schools, dissolution of school corporations, etc. ..
In addition to the rapid population decline in rural areas, the 18-year-old population, which had been flat once, began to decline again from 2018.For this reason, it is expected that the number of students will be reduced and management will deteriorate, especially in small local universities.Even at present, 4% of private universities are under capacity, so the Ministry of Education, Culture, Sports, Science and Technology is requesting each school corporation to take measures to prepare for the decrease in enrollment at an early stage.
* 1 Assets under management This is an asset that can be converted into cash immediately, and refers to the total of specified assets, securities, and current assets, cash deposits and securities, among the fixed assets of the accounting standards of school corporations.
* 2 External liabilities Borrowings that are required to be repaid from outside, such as long-term debt, school bonds, long-term accounts payable, short-term debt among current liabilities, school bonds scheduled to be redeemed within one year, and bill debt. , Refers to the total of accounts payable
* 3 Current balance of payments Balance of payments excluding special balance of payments, which is an extraordinary factor such as the sale of assets
