The success of the University of Otago's Leading Thinkers funding programme has helped the institution reach a budget surplus of $26 million for the 2007 year.
The surplus was almost $3 million more than budgeted, and almost $10 million more than the surplus achieved in 2006.
Over four years, the university secured funding of more than $50 million from the Government and private donors, with most of the money being invested to fund 27 long-term research projects.
Much of that money had been paid to the university last year, which enhanced the university's financial result, university chancellor Lindsay Brown said at a university council meeting yesterday.
However, the money was tied up for specific projects and did not mean the university had more money than usual available for discretionary spending, he said.
In almost every revenue area, income for 2007 was higher than for the previous year, the 2007 financial statements showed.
Government grants totalled $218.5 million (up $45 million on 2006), while donations and other income totalled $24.2 million (up $22 million).
Tuition fees of $71.1 million were received from domestic students (up $5.5 million), while $72.6 million came from externally funded research (up $5.4 million) and $6.6 million came from investments (up $1.6 million).
Tuition fees from international students dropped $1.1 million, to $30.5 million. There was also a $10.8 million drop in income from consulting fees and commercial income.
Expenditure totalled $451.3 million, $7.5 million more than budgeted, and $5.8 million more than in 2006.
Salaries and staff-related costs were by far the biggest expense, totalling $268.6 million. That was $35.3 million more than was spent during 2006, but it was $8.3 million less than forecast.
The university met or surpassed most of its major performance targets for 2007, the statement of service performance document presented to the university council showed.
Equivalent full-time student (Efts) enrolments reached 18,287, just eight more than forecast, but 838 more than the 2006 total. Pass rates and the three-year average pass rate remained static at around 88%.
One of the university's key goals is to increase the number of Maori and Pacific Island students.
The service performance document showed enrolment targets had been exceeded for both groups.