General manager Darel Hall said the biggest reason why OUSA ran a deficit last year was because it had overestimated the value of its share in the recreation facility Unipol by more than $650,000.
OUSA sold its share of the facility for $666,000 last month, which was less than half the $1.3 million it was valued at in its accounts before the sale.
OUSA president Logan Edgar said the difference came about because the original $1.3 million valuation of Unipol reflected what the OUSA's share could be sold for on the open market, when in fact the contract allowed it to be sold only to the university.
OUSA sold its share of Unipol last month because it was faced with having to spend at least $1 million in extra capital to meet its share of the cost of shifting Unipol into the University Plaza at Forsyth Barr Stadium.
Mr Edgar said it was happy that it had sold its share of the facility to the university.
"It's absolutely fine by us that the university have it because ... they have got the best interests of the students at heart," he said.
The OUSA also wrote down close to $500,000 off the value of the University Book Shop, which it owns.
The total deficit for last year was $824,028 compared with a surplus of just over $1 million in 2010.
However, despite the deficit, the OUSA was in a good financial position and with almost $13 million in assets it was "one of the better placed" student associations in the country, Mr Edgar said.
OUSA had the perfect mix between commercial interests and delivering student services and representation, he said.
With the passing of the voluntary student membership (VSM) Bill at the end of last year, 2011 was the last time the OUSA received money from student levies. This meant the services it provided were now funded by the university, through a contract called the "service levy agreement".
Mr Edgar said the amount it received from the university this year would be similar to what it received from students last year.
He was confident the university would not cut funding to OUSA in future years, but because of the VSM Act the "ball was in their court" when it came to what they wanted to fund.
