Balance sheets at tertiary institutions are looking increasingly healthy thanks to increasing student enrolments and government funding.
Tertiary Education Minister Steven Joyce said universities, polytechs and wananga were continuing to record strong financial positions, with surpluses rising year-on-year since 2008.
A Tertiary Education Commission (TEC) report released this week showed all subsectors had surpluses well above the 3 percent TEC guideline – 8 percent for polytechs, 4 percent for universities and 7 percent for wananga.
Joyce said institutions were responding strongly to the government's focus on value for money and fiscal responsibility.
“While the government’s budget remains limited, it’s good to see tertiary institutions managing their finances and assets responsibly and positioning themselves to continue to make a strong contribution to New Zealand’s educational needs.”
Government investment in the tertiary sector grew by 11 percent between 2008 and 2010. International student tuition fees and research revenues increased by 15 percent and 9 percent respectively.
Total revenue for all institutions stood at $4.4 million last year; almost half of that was made up from state funding.
Non-government revenue recorded a 14 percent increase to $2.2 million, including domestic student fees ($834 million); international student fees ($361 million); non-government research income ($490 million); and other sources ($536 million).
Surpluses in 2010 vs 2008
- Universities had a combined surplus of $126 million (up from $75 million)
- Polytechnics had a combined surplus of $90 million (up from $25m)
- Wānanga had a combined surplus of $15 million (up from $11m)
Net assets in 2010 vs 2008
- • Universities from $5.6 billion to $5.9 billion
• Polytechnics from $1.4 billion to $1.7 billion
• Wananga from $147 million to $256 million