IN SURPLUS: Canterbury University Vice-Chancellor Rod Carr says the institute's $9.5 million surplus is boosted to $30.9m once insurance proceeds from the earthquakes are factored in.
The University of Canterbury recorded a $9.5 million surplus last year, but reduced income and increased spending because of the region's earthquakes means the institution will continue to face significant challenges, the vice-chancellor says.
The university released its annual financial results for 2011 yesterday, showing a $9.5m surplus, which was boosted to $30.9m once insurance proceeds from Canterbury's earthquakes were factored in.
However, Vice-Chancellor Rod Carr said the $30.9m figure did not take into account earthquake-related costs, such as building repairs and the construction of temporary buildings.
The results also failed to take into account the future costs of the earthquakes, with the university's 2012 budget already at a loss before insurance proceeds of $17.4m were added, he said.
"We face the very real and imminent prospect of a significant drop in income from tuition fees, particularly from international students. This will have an impact on our operational budget over coming years."
Savings had been made by reducing fulltime equivalent staff by about 170 through retirements and voluntary and compulsory redundancies.
Insurance premiums had, however, increased, along with the cost of damage that was no longer covered by insurance, Carr said.
It is expected to cost $120m to bring the university's buildings back to their pre-earthquake standard and up to the Building Code.
Carr said the university had performed well under difficult circumstances.