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A University of Otago spokeswoman said the proctor had found against the three students from a Cumberland St flat involved in the incidents over the weekend of competition late last month.
All were referred to university provost Prof Ken Hodge for further consideration under the student code of conduct and ethical behaviour policy.
They face disciplinary action ranging from community service to exclusion from the university.
A member of the North Island pipe band earlier said her group was pelted with bottles and subjected to repeated vulgar and homophobic abuse from young men at a student flat in Cumberland St.
A man partying at the flat, who was described as "lanky" with long scruffy hair, dropped his pants and exposed his genitals to a group of band members including children, she said.
She complained to the university and supplied a video, also seen by the Otago Daily Times, in which a man at the property is heard unleashing a torrent of homophobic and racist slurs at passers-by.
The woman said yesterday she was pleased the students had been found to be at fault.
"I've seen students behaving badly before but nothing like this ... It was really disgraceful."
"Slurs and indecent exposure should never be tolerated."
The incident had not put her off visiting Dunedin, which she praised for its "rich cultural roots to Scotland", but she would think twice about staying in the student area in future, she said.