The University of Otago continues to build its cash reserves in anticipation of a major spending programme.
Monthly financial statements tabled at this week's university council meeting showed that as of the end of July it had $141.739 million in cash on hand, which was $21.050 million higher than budget and $22.449 million more than at the corresponding time last year.
Financial services director Grant McKenzie said the increase was part of a ''planned build-up of cash which will be required to fund a number of major projects that are in the planning and design phase''.
The variance was partly due to delays in capital expenditure. Several projects which were part of the $358 million priority development plan were taking longer than expected, Mr McKenzie said.
''All of the cash savings will be needed when the major projects on the priority development plan move into the construction phase.''
The financial statements also showed the university's operating surplus for the year to the end of July was $16.716 million, $4.545 million higher than budget and $3.243 million greater compared with the corresponding period last year.
''The university's financial position continues to be very sound,'' Mr McKenzie said.
He also noted that savings were being made in anticipation of a tight funding environment next year.
''It is clear that some academic departments and a number of the service divisions are taking steps to reduce their costs in anticipation of a tight budget situation in 2014.''
At the end of July a total of 18,531 equivalent full-time students (EFTS) were enrolled at the university, which was 343 EFTS (1.8%) less than at the corresponding time last year.
