Financial result leaves ‘no room for complacency’

26 June 2006

‘Steady’ financial result leaves ‘no room for complacency’

A surplus of $3.8 million on an income of $82.9 million is reported by Lincoln University in its Group statement of accounts for 2005.

The figures cover the University’s core activities of teaching and research and its trading, contract and other commercial activities.

“It is a steady and encouraging result,” says Vice-Chancellor Professor Roger Field, “but there is no room for complacency.

“The tertiary sector is subject to numerous external pressures and even though Lincoln University has a strong asset base, good cash flow and virtually no debt we have to exercise the utmost prudence in managing our finances now and into the future.

“We cannot anticipate the situation getting any easier.

“For example, international enrolments, which have been positive for New Zealand’s tertiary institutions to date, are now changing in number and country of origin and that’s an issue the sector as a whole has to face.

“However, on a positive note, the Government has signalled a new look at the way the tertiary sector is funded and ultimately this might be advantageous to universities in terms of a more realistic acknowledgement of our operating costs.”

The contribution from Government to Lincoln University’s income for teaching (based on EFTS returns) was 21.2 percent of total income, the lowest of any of New Zealand’s eight universities.

“While this reflects Lincoln University’s diversified income streams - in other words almost 80 percent of Lincoln’s income is derived from sources other than direct Government EFTS funding - exposure to the vicissitudes of commercialism and marketplace competition brings its own pressures.

“It is however pleasing to note a 9 percent increase in external research revenue over 2004 to a new total of $13.1 million.

“The University has consistently increased external research revenue every year for the past 11 years and earnings in the past five years have more than doubled,” says Professor Field.

“In summary, Lincoln University’s financial performance in 2005 has been positive despite the pressure generated by continual cost increases.”

ENDS

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