University of Otago finances among country's best, meeting told

National figures show the University of Otago has continued to perform well financially, achieving the lowest debt-to-equity level in the country's university sector last year.

Positive financial outcomes for Otago are evident in a study, analysing the accounts of the country's eight universities last year, and tabled at an Otago finance and budget committee meeting last week.

In respect of assets, excluding trusts, Otago University had the country's lowest university debt-to-equity level, at 14.1%; Massey University having the next lowest, at 15.2%, and Auckland University of Technology having the highest (45.1%).

The report, prepared by Otago financial services, showed Otago achieved a $4670 net operating cash flow per equivalent full-time student (EFTS), by far the highest in the country.

This was followed by Auckland University ($3460) and AUT ($3105). All other universities being below $3000.

Otago financial services director Grant McKenzie told the committee Otago University was in a sound financial position and the university sector had generally performed well last year.

The university's net operating cash flow reflected not only the many relatively costly health science courses offered at Otago, and the associated student tuition fee and Vote Education funding, but also other diverse sources of income, including from commercial activities and research funding.

Otago University, which last year had a student roll amounting to 19,918 EFTS, had somewhat increased its share of the overall national student body (137,408 EFTS) to 14.5%, from 14.2% the previous year, he said.

The Auckland University student roll was 32,654 EFTS, Massey 20,119 and Lincoln University the lowest (2654).

Otago University had the second highest total income per EFTS: $28,830, ahead of Auckland University ($27,210) and behind only Lincoln University ($36,357).

The figures show Otago University as consistently among the country's top two or three highest-achieving universities.

If trusts are excluded, Otago University had the second-highest operating surplus, of $22,422,000, behind Auckland ($27,284,000), with other universities recording smaller surpluses, and Lincoln a $3,878,000 deficit.

Otago University chancellor John Ward said the Otago operating surplus had been reinvested to meet university needs.

Otago University's total Government grant ($259,458,000) was second only to Auckland University's $351,077,000, with Massey third ($180,827,000).

Otago's $132,529,000 tuition fee income was second only to that of Auckland ($200,917,000).

Mr McKenzie said in an interview that Otago University faced continuing cost pressures, but through sound management had continued to add significant assets over the years, such as the St David lecture complex, while maintaining relatively low debt levels.

- john.gibb@odt.co.nz