The University of Otago's combined trusts recorded an operating surplus of $9.56 million last year, but only because distributions from its main trust fund were all but suspended for the year.
Payments from the University of Otago Foundation Trust last year totalled $127,000 - $6.2 million less than budgeted, a report to the university council said.
The foundation trust was established in 2002 to administer donations, bequests and sponsorship money. It distributes most of its surpluses to university activities such as fellowships, scholarships, research projects, student services and some salaries.
In 2009, falling returns forced the university to freeze distributions for the last five months of the year to protect the fund's capital base. Just over $3.4 million was distributed between January and the end of July that year, $1.79 million less than budgeted.
Distributions resumed on January 1 last year, but in August it was decided to freeze distributions again for the rest of the year, university financial services director Grant McKenzie said on Friday.
It was also decided to replenish the trust's capital by repaying the $4.11 million distributed between January and the end of July using money drawn from other parts of the university budget.
At year's end the trusts had $140.99 million invested in equities, properties, bonds and cash, Mr McKenzie said his report to the university council.
The "satisfactory" return for the year was assisted by a significant improvement in equity markets in the last quarter, he said. However, returns were likely to continue to fluctuate.
Distributions resumed in January this year, and by the end of February, $926,000 had been committed. Total distributions this year were expected to reach $6.2 million.
