University of Otago research-income predictions for the year may have been optimistic, the university council was told this week.
Externally funded research-income for the first three months of the 2009 financial year was $19.8 million, $2.25 million less than budgeted.
The variance was caused by less research being carried out in the health sciences division than expected, financial services director Grant McKenzie said in his monthly financial report.
"Early indications are that the budget for . . . health sciences was too optimistic and [the] division is likely to use similar levels of research revenue as last year.
This could reduce the university's income [this year] by $3.7 million."
The drop in income was "nothing to worry about", research and enterprise deputy vice-chancellor Prof Harlene Hayne said, as the health of the university's research funding account was still good.
The financial report showed the university had budgeted for research income of $91.8 million this year, just under $5 million more than last year.
Even if the income drop of $3.7 million was realised, income this year would still be $1.29 million higher than last year.
