The operating surplus to the end of June was $12.07 million, $2.66 million higher than forecast, financial services director said in a report to the university council's August meeting yesterday.
Initially, the university planned for a surplus of $19.5 million for the full 2009 financial year, but the figure was revised downwards by 40% to $11.5 million in June because of a combination of a drop in income from investments and research and a rise in salary costs and general expenses.
Operating surpluses are used to fund capital improvements such as buildings, scientific equipment, library materials and computer software.
Although the result for the first six months of the year was better than anticipated in the revised budget, it was still $8.55 million below the corresponding period last year, Mr McKenzie said.
Looking back at January-June results over the past decade, surpluses ranged from about $6 million to about $26 million. The surplus for the first half of this year was in line with those achieved in the early 2000s, he said.
"The years between 2004 and 2008 is the period in which the university received additional funding from the performance-based research fund and an increase in funding for medical and dental students. The university's activities and cost structure have now caught up with this additional funding, with the result that the surplus is declining again."
Capital expenditure for the first six months of this year was $37.41 million, $5.11 million less than budgeted.
