Despite warnings 2009 might be a tough year financially for the University of Otago, the institution ended the year in a strong position.
The operating surplus was 83% higher than budgeted, enrolments reached a record high, international students began to return, and income from most sources was better than expected.
Among the few negatives were poorer-than-anticipated results for university-owned trading companies and the startup companies supported by its Centre for Innovation.
The university also froze distributions from its Otago Foundation Trust investment fund for five months because of falling interest rates.
The balance sheet for the university (excluding trading companies) showed an operating surplus of $21.23 million, 83% higher than the budgeted surplus of $11.59 million, financial services director Grant McKenzie said in a report to the university council yesterday.
Among the reasons for the difference were salary savings of $3.7 million because of vacancies or delays in new appointments, an unexpected $5.4 million from the Government to fund wage and salary increases, and investment income being $3 million more than expected.
The surplus was not far below the 2008 surplus of $24.67 million.
The largest sources of income for the university were Government funding ($195.65 million), research funding ($137.13 million) domestic tuition fees ($82.68 million), international tuition fees ($35.52 million) and consulting and commercial income ($65.38 million).
The major expenses were academic salaries ($181.44 million), general salaries ($126.36 million), consumables and general ($230.74 million) and depreciation ($47.77 million).
Total capital expenditure for the year was $92.53 million, just $600,000 more than had been budgeted.
The major project for the year was construction of the $25 million psychology building, while just over $12.08 million was spent on property purchases.
In his report, Mr McKenzie said the university's overall cash flow last year was negative because of the large capital-expenditure programme.
"Nevertheless, the university's financial position at year end was solid, with a satisfactory level of cash on hand and no debt."
Vice-chancellor Prof Sir David Skegg said the university had met Government financial targets for the year.
"Looking back, it has been quite a satisfactory year."
