It ended the year with an operating surplus of just over $22 million and no debt, a position financial services director Grant McKenzie described this week as "solid".
The surplus was close to the $21.9 million which had been budgeted and was $806,000 greater than the 2099 surplus, he said in a report to this week's university council meeting.
Enrolments have been steadily growing for the past decade.
Last year's total of 19,661 equivalent full-time students (efts) was a 1.7% increase on the figure budgeted for the year and a 4% increase on 2009.
Increased domestic enrolments attracted $206.88 million in base government "Vote Education" and "Vote Heath" funding - $2.5 million more than budgeted.
Full-fee international enrolments rose by 105 efts, or 7.4%, reversing a three-year trend of decline.
Total income for last year was $574.19 million, of which $258.49 came from various Government funding sources, $127.26 from student tuition fees, $91.99 million from external research grants, and $67.17 million from consulting and commercial income.
Total expenditure reached $552.16 million last year. Of that, $336.75 million - 61% - was spent on salaries and staff-related costs.
The percentage of expenditure on salaries and staff-related costs had changed little over the past five years, despite the university's roll growing significantly over that period, Mr McKenzie said.
The university uses operating surpluses to pay for capital works such as new buildings, land purchases, building refits, library books, computer equipment, and furniture and fittings.
In 2004, the university increased its operating surplus target from $10 million annually to 2% of net assets annually - around $21 million - to fund campus improvements and expansion.
In the five years from 2006 to the end of last year, capital expenditure totalled $391.3 million, Mr McKenzie said. That included $228.5 million on land and buildings. Expenditure on land and buildings last year was $45.57 million - $15.76 million, or 25%, less than budgeted. The main reason for the difference was almost $10 million less than budgeted being spent on the university's building at the Forsyth Barr Stadium site, Mr McKenzie said. The variance was a timing issue relating to a longer-than-anticipated design and tender process. The rest of the money set aside for construction would be spent this year.
The building will house a Unipol student gymnasium and recreation centre, the Foundation Studies language centre and foundation year programme, and a public cafe. It is attached to the western wall of the stadium and provides a public entrance from Anzac Ave to the stadium's western stand. Until now the university has declined to say how much it is spending on the project because of commercial sensitivities while tenders were being called.
But yesterday it confirmed the budget was $51.8 million - $46.2 million for the building and its interior fit-out and $5.6 million for the land.
The shell of the building is due to be completed by August, in time for the Rugby World Cup, with the interior completed by December.
"We are pleased with the progress and the project is advancing well. It is within budget and is on time," property services director Barry MacKay said in a brief statement.
Operating surpluses
• 2010 $22.04 million
• 2009 $21.24 million
• 2008 $24.68 million
• 2007 $26.35 million
• 2006 $16.64 million
• 2005 $16.98 million
• 2004 $16.35 million
• 2003 $3.1 million
• 2002 $8.93 million
• 2001 $18.3 million
Five-year rolling average $22.48m
Source: University of Otago
