The University of Otago has blown its scholarship budget as competition for first-year enrolments heats up.
The university's latest finance report shows 390 new undergraduate excellence scholarships were awarded, pushing the scholarship fund $1.104million (10.3%) over budget.
The new scholarships forced the university to report an operating deficit of $230,000 for the first two months of the year.
The operating deficit, which ended on February 29, was the first time the university had recorded a shortfall this early in the year.
The deficit was $1.455million better than the forecast deficit of $1.685million, the financial review said.
A university spokeswoman said the new scholarships were created "partly'' in response to lower first-year enrolments in 2015.
"The tertiary environment has changed, becoming much more competitive, and well-qualified school leavers are expecting more support in the form of scholarships than ever before.''
The Otago New Frontiers Scholarship was worth $5000 to recipients who had gained NCEA level 2 and 3 excellence endorsements and $2500 to those with excellence endorsed at one level, she said.
Vice-chancellor Prof Harlene Hayne said the new scholarships had contributed to the increase in the "academic calibre of our first-year domestic cohort in 2016''.
Enrolment figures released last week revealed first-year domestic enrolments were up 6.7% on the same time last year.
A total of $11.558million had been spent on scholarships, $1.104million (10.3%) over budget.
Chief financial officer Sharon Van Turnhout said expenditure on scholarships was more than budgeted for because the number and calibre of students applying for the new scholarships were higher than anticipated.
The budgeted deficit was a "timing issue only'', because the scholarships were awarded at the start of the year, Ms Van Turnhout said.
It was not yet known how many scholarships would be awarded next year.
