News

A number of major forthcoming projects have seen the University pump up its cash reserves and produce an operating surplus significantly above budget, according to monthly financial statements presented at last week’s University Council meeting. The statements revealed that as of the end of July, the University had $141.739 million in cash on hand, $21.050 million more than budgeted and an increase of $22.449 million on the same period last year.

The increase in cash on hand is part of an intentional build-up of cash that “will be required to fund a number of major projects that are in the planning and design phase,” according to the Director of Financial Services, Grant McKenzie.

The operating surplus for the year to date was $16.716 million, $4.545 million higher than budgeted and $3.243 million greater than at the same time last year. This “abnormally high” amount of cash on hand is the result of delays in capital projects, and the variance from the budget has been attributed to timing factors as well as savings in consumables and scholarship expenditure.

While the statements did not indicate specifications for any of the planned projects, they noted that “all of the cash savings will be needed when the major projects on the priority development plan move into the construction phase.”

Although the University’s financial position “continues to be very sound,” McKenzie also noted that the savings were indicative of a tighter budget situation next year. “It is clear some academic departments and a number of the service divisions are taking steps to reduce their costs in anticipation of a tight budget situation in 2014.”

The total income for the seven months ended 31 July 2013 was $355.796 million, $235,000 greater than budgeted and $6.726 million higher than this time last year. External revenue for the last few months has been less, but the current month has seen a reversal in this trend. Income is expected to drop below budget again by the year-end, however.

The report also indicated that the full-year budget review target for Equivalent Full-time Students (EFTS) enrolled is 18,577. An additional 46 EFTS must enroll between now and the end of the financial year to meet that figure. This year’s total of 18,531 EFTS is 343 fewer than the corresponding time last year, but the report indicates it is likely the University will reach the budget review EFTS target.