Costs have risen sharply, but the University of Otago's operating surplus for the first eight months of the year is much healthier than expected.
The surplus to the end of August was $15.03 million, $3.88 million or 34.8% higher than budgeted, chief operating officer John Patrick said at a university council meeting this week.
The year-to-date-surplus was $9.72 million less than for the same period last year, but up on the expected figure.
Salary savings of $1.97 million and an extra $833,000 from international student fees contributed to this year's result, he said.
Operating expenditure for the period was $342.77 million, $1.63 million or 0.6% more than budgeted, and $27.03 million or 8.6% higher than the same period last year.
At the start of the year, the university budgeted for a full-year operating surplus of $19.6 million.
In the middle of the year, the figure was revised downwards to $11.59 million, but Mr Patrick said it appeared the full-year surplus would now be closer to the original figure.
Surpluses are used to fund capital expenditure and other developments.
Capital expenditure for the eight months to the end of August was $46.96 million, $11.48 million less than budgeted.
Capital expenditure significantly increased over the past four years and totalled more than $520 million over the past decade, a report to the meeting showed.
Actual expenditure since the start of 2000 was $58.2 million in 2000, $50 million in 2001, $36.37 million in 2002, $48.31 million in 2003, $43.25 million in 2004, $60.26 million in 2005, $64.11 million in 2006, $69.48 million in 2007 and $92.41 million last year.
So far, the university has been able to fund all its capital development programme from surpluses, depreciation and working capital, avoiding taking out loans.
