13 June 2001 Operating surplus a highlight of Lincoln's Annual Report

An operating surplus of $346,000 for the year ending 31 December 2000 is announced by Lincoln University in its latest Annual Report, now available.

The surplus stands against a budgeted deficit of $194,000.

"An improvement of over $500,000 in the face of reduced income would not have been possible without a combination of good management and innovative approaches to dealing with the financial constraints experienced during the year," says Vice-Chancellor Dr Frank Wood.

The overall position reported for the University group of a $1.151 million deficit reflects a one-off adjustment to expenditure of $1.497 million, to recognise the value of staff long service leave and retirement gratuities. This change in reporting of employee entitlements has been requested of all public sector organisations, by the Office of the Controller and Auditor General.

"The year 2000 was a very challenging one, but the University was able to meet those challenges and maintain its positioning strategies for the 21st century," says Dr Wood.

Highlights of Lincoln University's performance in 2000 recorded in the Annual Report include -

• research income of $4.712 million, an increase of 16.8% on 1999;
• graduating students being the highest ever reported at Lincoln with 1102 students receiving awards in ceremonies held in New  Zealand and overseas;
• postgraduate enrolments being up 3.5% on the target figure;
• an excellent Academic Audit report  commending  Lincoln  University on a number of aspects of its teaching and research performance.

"The effectiveness of the University's positioning for the future will be measured over the next one to two years," says Dr Wood.

"Lincoln will be influenced by the direction of Government policy, the strength of its relationships with key sectors, and the advancement of international activity.

"In common with other tertiary institutions Lincoln has felt the impact of the 2000 fee stabilisation policy. As a small university we will have real difficulty in dealing with the continuation of this policy in 2002. The combined effect of two years under the fee stabilisation regime is about $2 million, or over 12% of our Vote Education income," says Dr Wood.

"Signals like these provide support for the widely held view that it is time to look carefully at the sustainability of the current funding models. Under-funding in technology and science is becoming critical."

Dr Wood speaks positively about the Tertiary Education Advisory Commission (TEAC) direction.

"If the current thrust of the TEAC is accepted, then Lincoln University has positioned itself well. Our relationships with New Zealand business sectors are the best they have been for many years. The strong student culture at Lincoln is as healthy as it has ever been. Work done over the year, in particular to reinforce the core business, themes, research centres and programme delivery models must stand us in good stead."

Dr Wood ends his introduction to the Annual Report by acknowledging the contribution and support of staff and students.

"The Lincoln spirit is as strong as it has ever been," he says.

Ian Collins, Journalist, Lincoln University, Canterbury, New Zealand.

(Copies of the Annual Report available by contacting the above.)