The University of Otago's financial position has been described as "sound" despite lower-than-budgeted student numbers.
The university's financial review for the year until the end of March - tabled at a university council meeting yesterday - outlined the cost of the drop in both domestic and international student numbers. This comes after vice-chancellor Prof Harlene Hayne last month revealed student numbers were down on last year.
Domestic student numbers for the full year were expected to be 294 equivalent full-time students (EFTS) less than budget, which is forecast to cost the university $1.29 million in tuition fees this year.
International student numbers were forecast to be 92 EFTS lower than budgeted, which meant international tuition fees were $385,000 less than budget in the year to March.
Despite the drop in student numbers financial services director Grant McKenzie told the council the university's financial position was "sound".
The surplus for the first three months of this year was $5.18 million, which was $381,000 higher than budgeted, but $5.22 million less than at the same time last year.
External income for the year to date was $147.92 million, which was $1.06 million higher than budgeted and expenditure was $142.74 million, which was $677,000 higher than budgeted, in part due to the cost of earthquake repairs to the Christchurch campus.
In a report to this week's university council meeting, financial services director Grant McKenzie described its financial position as "sound with no real long-term debt".