A challenging tertiary education environment means the University of Otago will need to find new revenue streams if it wants to fund more than just ''business as usual'', vice-chancellor Prof Harlene Hayne says.
Prof Hayne made the comments in the university's recently-released 2012 report, saying the university faced challenges she could not have anticipated when she took up the job.
''[Last year] was my first full year as vice-chancellor ... a position I took over in the wake of a global financial crisis and the devastating Christchurch earthquakes. These two events - one with worldwide ramifications and the other, one of the worst natural disasters to befall New Zealand - have presented challenges that I could not have predicted,'' she said in the report.
Given the financial crisis, it was ''inevitable'' the Government would ''redefine its financial priorities'' and this, compounded by declining student numbers, had put ''growing pressure on the sector as a whole''.
This environment meant new sources of revenue became more important, she said.
''In the current economic climate, we can fund `business as usual', but to do more we will need to find additional avenues of support.''
This included new commercialisation opportunities through Otago Innovation Ltd.
''There will also be a growing emphasis on fundraising and we will be relying on the support of our alumni to help us fund new initiatives.''
Chief operating officer John Patrick said in the report ''it will be essential for the university to pursue other income streams, improve efficiency and manage costs so it can generate the additional funds necessary for the large projects''.
''Steps are already under way to do this,'' he said.
However, despite the challenging tertiary education environment Prof Hayne said 2012 was ''yet another good year for the university''.
She praised the staff for performing ''outstandingly well'', singling out its researchers for continuing to earn ''highly competitive'' research funds, including getting the largest share of the Marsden Fund.
The university had also worked hard to reduce alcohol-related harm on campus and had built on its relationship with the Otago University Students' Association - which had seen a ''fundamental shift'', with the passing of the Education (Freedom of Association) Amendment Bill in 2011.
She also thanked staff for helping the University Group achieve a surplus of $32.1 million last year, which met its internal target.
''It would not have been possible to achieve this sound result without careful budgeting and a concerted effort across the university to be prudent in respect of expenditure,'' she said.
