Finance and Budget Committee Part 1...Finance and Budget Committee Part 1 Venue - Council Chamber, First Floor, Clocktower Building 02 July 2020 04:00 PM - 05:00 PM Agenda Topic Page

Finance and Budget Committee Part 1Venue - Council Chamber, First Floor, Clocktower Building

02 July 2020 04:00 PM - 05:00 PM

Agenda Topic Page

1. Minutes 2To receive Part 1 of the Minutes of the meeting of the Finance and Budget Committee held on 27 May 2020.

2. Financial Review - May 2020 4To receive the Part 1 Financial Review for the May 2020 period.

3. Exclusion of the Public 24To approve a motion under Section 48 of the Local Government Official Information and Meetings Act 1987, that the public be excluded from the specified proceedings of this meeting.

Finance and Budget Committee Part 1 - Agenda

1

FINANCE AND BUDGET COMMITTEE

Minutes of a meeting of the Finance and Budget Committee 27 May 2020

Present The Pro-Chancellor (Convener), the Chancellor,

Mr J P Manning, Associate Professor C R Pigden and Mr M A Wong.

Apologies The Vice-Chancellor and Ms S L Ellison.

In attendance Miss S A van Turnout (Chief Financial Officer), Mr S W Willis (Chief

Operating Officer), Ms J A Thompson (Executive Officer) and the Registrar

and Secretary to the Council.

Part 1 - Open Committee

1. Minutes Part 1 of the Minutes of the meeting of the Finance and Budget Committee

held on 2 April 2020 were confirmed.

2. Terms of Reference

The Committee received the updated Finance and Budget Committee’s

Terms of Reference which were approved by the University Council at its

meeting on 21 April 2020.

3. Financial Review – Part 1 – April 2020

The Committee received a Financial Review Part 1 for the period ended 30

April 2020.

4. Exclusion of the Public

The Committee

APPROVED a motion, under Section 48 of the Local Government Official Information

and Meetings Act 1987, that the public be excluded from the remaining

parts of the proceedings of the meeting as appended to these minutes.

Finance and Budget Committee Part 1 - Minutes

2


The Convener moves that the public be excluded from the whole of the proceeding of this meeting/the

following parts of the proceedings of this meeting, namely,—

Item 5 Part 2 of the Minutes of the Meeting of the Finance and Budget Committee

held on 2 April 2020

Item 6 Financial Review Part 2

Item 7 Treasury Dashboard

Item 8 Group Financial Report

Item 9 Borrowing Consent

Item 10 Investment Policy

The general subject of each matter to be considered while the public is excluded, the reason for passing

this resolution in relation to each matter and the specific grounds under Section 48(1) of the Local

Government Official Information and Meetings Act 1987 for the passing of this resolution are as

follows:-

General Subject Reason for passing this Ground under Section

resolution 48(1)(a) for the passing

of this resolution

Items 5 - 10 Good reason for withholding Section 48(1)(a)(ii)

Confidential Minutes information under the Official

and Reports Information Act

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information

and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that

Act or Section 6 or Section 7 or Section 9 of the Official Information Act 1982 as the case may require.

The interests which would be prejudiced by the holding of the whole or the relevant part of the

proceedings of the meeting in public are as follows (all references are to Section 9 of the Official

Information Act):

Items 5 – 8,10 9(2)(i)

Item 9 9(2)(i) and (j)

AND THAT Miss S van Turnhout and Mr S Willis be permitted to remain at this meeting after the public

has been excluded because of their knowledge of the matters to be discussed. This knowledge, which

will be of assistance in relation to the matters to be discussed, is relevant to those matters because it

relates to aspects of the administration of the University of Otago for which these people are responsible.

The Registrar and Secretary to the Council and Ms J Thompson are also permitted to remain at the

meeting so as to provide secretarial support and advice.

Finance and Budget Committee Part 1 - Minutes

3

FINANCIAL REVIEW

For the Period Ended 31 May 2020

Executive Summary

The operating surplus for the period ended 31 May 2020 was $127.2 million, which was $5.2 million

greater than the budgeted surplus of $122.0 million. This favourable variance was mainly driven by

savings caused by the COVID-related reduction of activity on campus ($14.4 million) offset by reduced

tuition related-income ($4.8 million) and residential college, food outlet, dental and physiotherapy

patient income ($6.9 million).

The financial impact of COVID-19 on the remainder of the year cannot yet be reliably estimated, as a

number of factors are still uncertain and the environment continues to change rapidly. However the

full financial impact of reduced international enrolments will not be reflected in the University’s

finances until later in the year, and with no incoming international students now anticipated for

semester 2, this will be substantial. The economic situation for our domestic students and their

families has changed dramatically in many cases, and this may impact a small number of semester 2

domestic enrolments, despite our best endeavours to mitigate this with hardship support.

Liquidity was strong and cash reserves were sufficient to meet the planned significant expenditure on

major projects until November 2020, at which point borrowing will be required. The financial impact of

COVID-19 will put pressure on operating cash flows for 2020 and savings will be required to ensure

the University is well placed for recovery.

Finance and Budget Committee Part 1 - Financial Review - May 2020

4

Tuition-related income is largely recognised in March and July at the time of first and second semester

enrolments, rather than evenly throughout the year. This shows the impact of enrolment numbers as

early as possible, allowing time for decisions to be made about the consequences of variances against

income budgets. This phases the University surplus as shown in the graph above, with income being

recognised early in the year.

Year to date surplus/(deficit) by function ($ million):


5

Divisional Operating Contribution Summary

Year to date ($ millions) Commentary

Academic Divisions Actual Budget Variance

Commerce (8.0) (7.5) (0.5)

Health Sciences 15.9 14.8 1.2 Significant travel and other consumables savings

have been offset by lower income due to dental

and physiotherapy patient clinics being closed

during lock down.

Humanities (7.5) (7.2) (0.3)

Sciences (6.9) (8.2) 1.3 Travel and other consumables savings have been

partially offset by lower tuition-related income.

Total Academic

Divisions

(6.5) (8.1) 1.6

Other Divisions

Academic & Student

Services

25.9 25.5 0.4

Campus & Collegiate

Life Services

3.5 6.9 (3.4) Lower occupancy in the residential colleges and

University owned or head leased flats due to

COVID-19 lockdown. Food outlets on campus

were closed during level 3 and 4

Committees 14.8 11.3 3.5 Favourable variances largely due to scholarships

being deferred. In addition government, staff and

alumni support was received for the student

financial relief fund

External Engagement 12.9 11.3 1.6 Favourable variances in travel, catering,

entertainment, marketing and postage all due to

COVID-19 lockdown

Corporate 9.5 8.4 1.0 Additional investment income due to higher cash

balances

Financial Services 4.3 4.2 0.0

Human Resources 2.6 2.8 (0.2)

Information

Technology Services

18.8 18.7 0.1

Operations 2.6 3.1 (0.4)

Property Services 1.4 (0.3) 1.6 Favourable variances in cleaning, energy and

external contractors due to COVID-19 lock down

Research 3.6 3.6 0.1

Shared Services 30.2 31.2 (0.9) Unfavourable variance due to additional

resourcing needed to support the COVID-19

response, particularly within Ask Otago

Vice Chancellor's

Office

3.5 3.3 0.2

Total Other Divisions 133.7 130.0 3.6

Grand Total

(Surplus/(Deficit)

127.2 122.0 5.2


6

Treasury

Investment Income

Investment income was $1.1 million year to date, which was $0.8 million higher than budget as a

result of higher cash balances caused by delayed capital expenditure.

Cash balance

Cash on hand was $66.2 million greater than budget. This resulted mainly from slower spend on

capital projects and consumables and travel savings.

The anticipated date when borrowing will be required is currently November 2020.

Cash flow from operations was $135.5 million year to date, this was $19.3 million higher than budget

as a result of reduced consumable and travel expenditure and higher research income received in

advance. Due to forecast decreased income related to the impact of COVID-19, cash flow from

operations is expected to be significantly reduced by the end of the year.

Net cash outflow from investing was $55.1 million year to date. This was $23.4 million less than

budget as a result of delays in expenditure on capital projects.


7

Capital

Total capital expenditure year to date was $46.9 million. This was $31.9 million less than budget.

Capital Projects

Major (project budget $10 million +) capital project variances were:

Manukau Dental Facility ($1.2 million underspend YTD)

Main works complete. Building in the standard defect liability period.

Music & Theatre Relocation ($2.4 million overspend YTD)

Stage 2 teaching wing, music suite and tower block ground floor delayed by Covid-19. Project

currently targeting 6th July hand-over for remaining teaching spaces.

Tenders closed 8 June 2020 for demolition of 180 Albany Street.

Time and cost variations for the lockdown period expected and will take some time to assess

and agree.

Te Rangi Hiroa Replacement ($7.9 million underspend YTD)

Project in design phase with 60% of developed design stage complete.

Site investigations (geotechnical) completed.

Full Year

Project

Life to

Date

Project Actual Budget Var Actual Budget % spent%

complete

$m $m $m $m $m

Manukau Dental Facility 4.6 5.8 1.2 22.7 28.3 80% 95%

Music and Theatre Relocation 7.8 5.4 (2.4) 28.7 30.2 95% 94%

Te Rangi Hiroa Replacement 1.5 9.4 7.9 1.9 101.7 2% 8%

Eccles Building 6.5 12.3 5.8 48.8 49.3 99% 80%

School of Dentistry Upgrade 7.5 12.4 4.8 121.5 131.7 92% 75%

Christchurch Health Precinct 0.9 3.4 2.5 6.0 178.3 3% 3%

Other projects 11.0 17.3 6.3

Total Major Projects 39.7 65.8 26.1

Annual Capital Pools 7.1 12.9 5.8

TOTAL CAPITAL 46.9 78.7 31.9


8

Eccles Building ($5.8 million underspend YTD)

Levels 1 and 2 near completion.

Targeting project completion in October 2020. Early project budget overrun as a result of

ground conditions and related delays compounded by COVID-19 lockdown.

Time and cost variations for the lockdown period expected and will take some time post

lockdown to assess and agree.

Christchurch Health Precinct ($2.5 million underspend YTD)

Currently in design phase with developed design stage due to be complete in November

2020.

Council has approval in principle the UOC business case subject to appropriate stage gates.

School of Dentistry Upgrade ($4.8 million underspend YTD)

Facade install has progressed well and is almost complete.

Current completion date is January 2021.

The project has established a worst case budget forecast of $11.5 million overspend, and this

is expected to increase due to COVID-19.


9

MONTHLY FINANCIAL STATEMENTS31 May 2020

CONTENTS PAGE

Monthly Overview 1

Statement of Financial Performance 2

Analysis of Consumables 3

Statement of Financial Position 4

Statement of Cash Flows 5

Statement of Cost Services Commerce 6 Health Sciences 7 Humanities 8 Sciences 9 Service Divisions 10

Statement of Capital Expenditure 11

Statement of Capital Works, SignificantEquipment & Other Projects 12


10

Actual Budget Last Year($,000's) ($,000's) ($,000's)

Surplus Year to Date 127,171 121,979 128,079

Total Cash Flow 80,404 37,731 69,439116,914 50,732 153,862

Total Assets 2,218,238 2,291,350 2,127,701

MONTHLY OVERVIEWFor the period ended 31 May 2020

-100,000

-50,000

0

50,000

100,000

150,000

200,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$ ('0

00's

)

University of Otago Actual and Budgeted Surplus

2020 Actual 2020 Budget 2019 Actual 2018 Actual

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

($,0

00's

)

University of Otago Monthly Cash on Hand

2020 Actual 2020 Budget 2019 Actual 2018 Actual

1


11

31 May 2020

Last Year Budget Actual Budget Variance Last Year$000's $000's $000's $000's $000's $000's

INCOME244,859 253,010 Vote Education 181,669 184,261 (2,592) 180,030

62,234 62,493 Performance Based Research Funding 26,102 26,039 63 26,5472,640 2,057 Vote Health 460 266 194 955

116,840 120,601 Domestic Tuition Fees 82,046 82,987 (941) 80,95548,669 51,549 International Tuition Fees 32,813 34,093 (1,280) 32,009

3,929 384 Investment Income 1,137 308 829 2,05925,039 25,507 Sundry Income 16,703 15,732 971 16,189

137,673 144,867 Externally Funded Research 59,215 59,552 (337) 54,28010,333 11,816 Distribution from Trusts 5,928 4,761 1,167 3,18081,549 84,328 Consulting & Commercial Income 28,584 35,511 (6,927) 33,843

1,950 193 Intellectual Property 100 38 62 933,593 6,283 Capitalisation of internal costs 2,207 2,799 (592) 1,232

739,308 763,088 Total Income 436,964 446,347 (9,383) 431,372

EXPENDITURE219,873 225,727 Salaries - Academic 93,922 92,021 (1,901) 89,698171,189 175,906 Salaries - Professional 72,862 72,955 93 69,548

32,832 26,854 Staff Related Costs 10,481 11,314 833 11,15927,498 30,341 Subcontracted Services 14,491 12,058 (2,433) 9,969

114,201 121,417 Consumables & General 36,923 51,355 14,432 43,24445,418 44,786 Occupancy Costs 16,875 18,083 1,208 18,06570,244 80,783 Depreciation 31,007 32,078 1,071 28,27250,415 50,864 Scholarships 33,232 34,504 1,272 33,338

731,670 756,678 Total Expenditure 309,793 324,368 14,575 303,293

7,638 6,410 Operating Surplus / (Deficit) 127,171 121,979 5,192 128,079

University of OtagoStatement of Financial Performance

Period Ended 31 May 2020

Full Year Year to Date

2


12

31 May 2020

Last Year Budget Actual Budget Variance Last Year$000's $000's $000's $000's $000's $000's4,240 4,238 Administration Expenses 1,153 1,793 640 1,8522,366 2,454 Communications Expenses 998 1,020 22 1,0397,932 7,631 Equipment Expenses 3,373 3,663 290 3,550

12,453 14,842 Laboratory Expenses 3,918 5,616 1,698 4,14610,340 11,198 Computing Expenses 9,677 8,389 (1,288) 6,37613,825 13,917 Reference Material Costs 2,314 1,935 (379) 2,00817,129 17,116 Travel & Accommodation Expenses 2,486 6,950 4,464 6,474

4,653 4,078 Advertising & Promotion 963 1,436 473 1,2829,278 9,032 Professional, Consulting & Affiliation 3,640 4,025 385 3,9074,179 4,942 Student Related Expenses 1,394 2,218 824 1,5292,959 2,310 Corporate Expenses 396 772 376 848

11,054 10,946 Goods For Resale & Catering Expenses 2,773 4,522 1,749 4,31313,793 18,713 Other Expenses 3,838 9,016 5,178 5,920

114,201 121,417 Total Consumables & General 36,923 51,355 14,432 43,244

University of OtagoAnalysis of Consumables and General



3


13

31 May 2020


ASSETS

CURRENT ASSETS16,555 - Cash and Bank 37,959 5,000 32,959 2,92620,000 - Bank Term Deposits 79,000 45,732 33,268 151,00045,827 30,779 Accounts Receivable 115,674 106,106 9,568 110,62312,544 12,011 Prepayments 6,359 6,612 (253) 6,165

1,044 1,218 Inventory 1,096 1,299 (203) 1,270

95,970 44,008 Total Current Assets 240,088 164,749 75,339 271,984

INVESTMENTS5,354 7,566 Loans and Advances 5,259 7,853 (2,594) 5,685

32,558 33,053 Investments 32,922 33,053 (131) 33,012

37,912 40,619 Total Investments 38,181 40,906 (2,725) 38,697

1,924,205 2,126,228 FIXED ASSETS 1,939,969 2,085,695 (145,726) 1,817,020

2,058,087 2,210,855 TOTAL ASSETS 2,218,238 2,291,350 (73,112) 2,127,701

LIABILITIES

CURRENT LIABILITIES31,206 45,150 Accounts Payable 20,978 29,647 (8,669) 32,96331,626 31,827 General Accruals 33,399 34,386 (987) 32,48350,686 52,600 Employee Entitlements 54,437 53,108 1,329 50,23826,757 18,348 Student Fees Received in Advance 45,343 47,516 (2,173) 45,97848,549 46,690 Research Funds Received in Advance 58,649 46,545 12,104 46,411

4,025 3,590 Other Income Received in Advance 12,991 10,254 2,737 10,577

192,849 198,205 Total Current Liabilities 225,797 221,456 4,341 218,650

TERM LIABILITIES53,481 49,631 Employee Entitlements 53,505 49,631 3,874 44,891

- 58,325 Bank Loans - - - -

53,481 107,956 Total Term Liabilities 53,505 49,631 3,874 44,891

EQUITY602,393 609,737 General Reserve 605,145 609,737 (4,592) 604,431

34,354 34,354 Capital Injections 34,354 34,354 - 34,354108,029 108,191 Carry Forwards 112,923 108,191 4,732 104,765

1,059,343 1,146,002 Property Revaluation Reserve 1,059,343 1,146,002 (86,659) 992,5317,638 6,410 Operating Surplus/(Deficit) 127,171 121,979 5,192 128,079

1,811,757 1,904,694 Total Equity 1,938,936 2,020,263 (81,327) 1,864,160

2,058,087 2,210,855 TOTAL LIABILITIES AND CAPITAL 2,218,238 2,291,350 (73,112) 2,127,701

University of OtagoStatement of Financial Position

As at 31 May 2020

Full Year

4


14

31 May 2020


OPERATING ACTIVITIESCash was provided from:

313,462 317,560 Income from Government Grant 128,926 131,724 (2,798) 131,528181,690 185,685 Income from Student Fees 146,280 152,439 (6,159) 150,996249,603 254,232 Income from Services 123,267 113,506 9,761 110,822

4,530 604 Interest & Dividends Received 584 313 271 1,164

749,285 758,081 399,057 397,982 1,075 394,510Cash was applied to:

385,600 394,777 Paid to Employees 155,664 154,106 (1,558) 150,784274,975 267,233 Paid to Suppliers 107,889 127,682 19,793 119,291

660,575 662,010 263,553 281,788 18,235 270,075

88,710 96,071 Net Cash Flows from Operating Activities 135,504 116,194 19,310 124,435

INVESTING ACTIVITIESCash was provided from:

749 338 Investments 95 51 43 54102 18 Disposal of Fixed Assets 19 - 19 37

851 356 114 51 62 91

Cash was applied to:- - Investments 364 - (364) -

137,493 167,753 Purchase of Fixed Assets 54,850 78,514 23,664 55,087

137,493 167,753 55,214 78,514 23,300 55,087

(136,642) (167,397) Net Cash Flows from Investing Activities (55,100) (78,463) 23,363 (54,996)

FINANCING ACTIVITIESCash was applied to:Loans / Advances

- - - - - -

- - Net Cash Flows from Financing Activities - - - -

(47,932) (71,326) Total Cash Flows 80,404 37,731 42,673 69,439

84,487 13,001 Opening Balance 36,555 13,001 23,554 84,487

36,555 (58,325) Closing Balance 116,959 50,732 66,227 153,926

Represented by:16,555 - Cash and Bank 37,959 5,000 32,959 2,92620,000 - Bank Term Deposits 79,000 45,732 33,268 151,000

- (58,325) Bank Loans - - - -

36,555 (58,325) 116,959 50,732 66,227 153,926

University of OtagoStatement of CashflowsPeriod Ended 31 May 2020


5


15

31 May 2020


INCOME16,979 17,477 Vote Education 9,391 9,443 (52) 9,179

2,282 2,582 Performance Based Research Funding 1,076 1,076 - 98013,196 13,688 Domestic Tuition Fees 7,139 7,138 1 6,919

8,700 9,034 International Tuition Fees 4,302 4,876 (574) 4,608145 16 Sundry Income 48 6 42 53

2,068 1,329 Externally Funded Research 728 527 201 1,107465 413 Distribution from Trusts 150 157 (7) 163413 543 Consulting & Commercial Income 91 168 (77) 136

3,420 2,176 Internal Income 1,216 920 296 1,312

47,668 47,258 Total Income 24,141 24,311 (170) 24,457

EXPENDITURE16,551 16,765 Salaries - Academic 6,840 6,802 (38) 7,000

1,223 1,180 Salaries - Professional 507 430 (77) 4941,281 1,242 Staff Related Costs 498 531 33 562

48 290 Subcontracted Services 2 119 117 154,803 3,004 Consumables & General 1,206 1,042 (164) 1,704

435 8 Occupancy Costs 7 4 (3) 1771,450 2,976 Internal Rent 1,242 1,240 (2) 599

21,764 22,174 Service Division Costs 22,174 22,174 - 21,764(3,528) (4,629) Subventions (4,629) (4,629) - (3,528)3,875 3,892 Interest on Capital 3,892 3,892 - 3,875

134 120 Depreciation 53 51 (2) 56374 236 Scholarships 319 144 (175) 188

48,410 47,258 Total Expenditure 32,111 31,800 (311) 32,906

(742) - Net Surplus / (Deficit) (7,970) (7,489) (481) (8,449)

Division of CommerceStatement of Cost of Services



6


16

31 May 2020


INCOME136,451 140,524 Vote Education 112,550 113,948 (1,398) 112,475

35,640 36,863 Performance Based Research Funding 15,360 15,360 - 15,1322,640 2,057 Vote Health 460 266 194 955

53,415 55,248 Domestic Tuition Fees 42,389 43,025 (636) 42,04821,054 22,252 International Tuition Fees 18,187 17,357 830 16,182

5,475 6,261 Sundry Income 2,230 2,888 (658) 3,13497,517 103,390 Externally Funded Research 39,176 41,769 (2,593) 38,730

5,029 5,085 Distribution from Trusts 2,685 1,586 1,099 1,34314,671 17,284 Consulting & Commercial Income 4,471 7,062 (2,591) 6,224

189 184 Intellectual Property 59 33 26 8782,117 73,934 Internal Income 34,498 32,396 2,102 33,718

454,198 463,082 Total Income 272,065 275,690 (3,625) 270,028

EXPENDITURE130,121 136,076 Salaries - Academic 55,505 55,519 14 52,880

28,080 27,497 Salaries - Professional 11,535 11,137 (398) 11,64611,283 11,353 Staff Related Costs 4,458 4,863 405 4,78215,391 17,468 Subcontracted Services 6,593 6,057 (536) 5,668

109,274 105,300 Consumables & General 39,347 44,729 5,382 43,5086,033 784 Occupancy Costs 252 298 46 2,345

19,572 29,526 Internal Rent 11,722 11,900 178 8,144102,093 106,046 Service Division Costs 106,046 106,046 - 102,093

(550) (6,427) Subventions (6,427) (6,427) - (550)19,448 19,654 Interest on Capital 19,654 19,654 - 19,448

9,542 10,030 Depreciation 4,029 4,050 21 3,4615,971 5,775 Scholarships 3,434 3,097 (337) 3,390


(2,060) - Net Surplus / (Deficit) 15,917 14,767 1,150 13,213

Division of Health SciencesStatement of Cost of Services



7


17

31 May 2020


INCOME36,099 37,344 Vote Education 22,460 23,297 (837) 22,432

7,694 7,016 Performance Based Research Funding 2,923 2,923 - 3,28324,728 25,406 Domestic Tuition Fees 15,512 15,957 (445) 15,530

7,999 8,439 International Tuition Fees 3,871 4,536 (665) 4,288559 319 Sundry Income 144 126 18 205

6,922 6,180 Externally Funded Research 4,574 2,465 2,109 2,5982,615 3,249 Distribution from Trusts 1,417 1,084 333 6073,976 3,529 Consulting & Commercial Income 1,609 1,547 62 1,223

8 6 Intellectual Property 3 3 - 15,814 5,676 Internal Income 2,670 2,769 (99) 2,494

96,414 97,164 Total Income 55,183 54,707 476 52,661

EXPENDITURE38,432 37,339 Salaries - Academic 16,022 15,008 (1,014) 15,416

2,372 2,119 Salaries - Professional 891 1,031 140 1,5492,946 2,765 Staff Related Costs 1,176 1,248 72 1,1841,234 1,259 Subcontracted Services 2,309 612 (1,697) 5368,311 9,705 Consumables & General 2,684 4,159 1,475 2,7571,313 97 Occupancy Costs 27 40 13 5173,886 5,487 Internal Rent 2,064 2,243 179 1,629

41,642 43,481 Service Division Costs 43,481 43,481 - 41,642(11,798) (13,957) Subventions (13,957) (13,957) - (11,798)

7,355 7,331 Interest on Capital 7,331 7,331 - 7,355797 778 Depreciation 297 331 34 304908 760 Scholarships 363 338 (25) 457

97,398 97,164 Total Expenditure 62,688 61,865 (823) 61,548

(984) - Net Surplus / (Deficit) (7,505) (7,158) (347) (8,887)

Division of HumanitiesStatement of Cost of Services



8


18

31 May 2020


INCOME54,445 56,335 Vote Education 36,690 37,019 (329) 35,69416,515 15,813 Performance Based Research Funding 6,589 6,589 - 7,02825,469 26,255 Domestic Tuition Fees 16,958 16,863 95 16,43010,907 11,824 International Tuition Fees 6,453 7,324 (871) 6,815

1,861 875 Sundry Income 288 344 (56) 98131,033 33,845 Externally Funded Research 14,679 14,708 (29) 11,357

585 598 Distribution from Trusts 263 262 1 3431,048 901 Consulting & Commercial Income 472 427 45 477

2 3 Intellectual Property 1 3 (2) 234,589 31,342 Internal Income 12,664 11,376 1,288 12,539

176,454 177,791 Total Income 95,057 94,915 142 91,666


9,151 8,816 Salaries - Professional 3,339 3,537 198 3,9193,977 3,667 Staff Related Costs 1,427 1,519 92 1,6836,903 7,339 Subcontracted Services 3,718 3,413 (305) 1,981

41,920 40,146 Consumables & General 12,391 14,230 1,839 14,7903,599 181 Occupancy Costs 23 71 48 1,3489,891 13,638 Internal Rent 5,608 5,682 74 4,172

48,912 51,516 Service Division Costs 51,516 51,516 - 48,912(13,059) (12,422) Subventions (12,422) (12,422) - (13,059)14,465 14,083 Interest on Capital 14,083 14,083 - 14,465

3,598 3,609 Depreciation 1,520 1,505 (15) 1,4773,416 3,204 Scholarships 1,572 1,591 19 1,795


251 - Net Surplus / (Deficit) (6,933) (8,192) 1,259 (7,801)

Division of SciencesStatement of Cost of Services



9


19

31 May 2020


INCOME885 1,329 Vote Education 579 554 25 250102 219 Performance Based Research Funding 154 91 63 124

32 4 Domestic Tuition Fees 48 4 44 289 - International Tuition Fees - - - 116

3,929 384 Investment Income 1,137 308 829 2,05916,999 18,035 Sundry Income 13,992 12,368 1,624 11,816

133 124 Externally Funded Research 58 82 (24) 4881,639 2,471 Distribution from Trusts 1,412 1,672 (260) 725

61,443 62,071 Consulting & Commercial Income 21,940 26,306 (4,366) 25,7821,750 - Intellectual Property 37 - 37 3

107,523 133,303 Internal Income 52,803 55,593 (2,790) 44,036

194,444 217,940 Total Income 92,160 96,978 (4,818) 85,427


132,082 138,339 Salaries - Professional 57,209 57,669 460 52,67714,232 8,710 Staff Related Costs 3,309 3,548 239 3,316

3,922 3,984 Subcontracted Services 1,870 1,857 (13) 1,76986,233 87,205 Consumables & General 36,032 39,746 3,714 35,14158,105 50,479 Occupancy Costs 19,002 20,452 1,450 23,23019,996 42,615 Internal Rent 17,598 17,371 (227) 8,026

(214,411) (223,217) Service Division Costs (223,217) (223,217) - (214,411)28,935 37,435 Subventions 37,435 37,435 - 28,935

(45,142) (44,959) Interest on Capital (44,959) (44,959) - (45,142)56,173 66,245 Depreciation 25,108 26,141 1,033 22,97539,746 40,888 Scholarships 27,544 29,335 1,791 27,508

183,271 211,532 Total Expenditure (41,497) (33,068) 8,429 (54,576)

11,173 6,408 Net Surplus / (Deficit) 133,657 130,046 3,611 140,003


6,683 2,731 Campus & Collegiate Life Services 3,536 6,926 (3,390) 8,037(3,435) (3,345) Academic & Student Services 25,904 25,516 388 25,160

(626) - Committees 14,792 11,340 3,452 11,35611,753 10,823 Corporate 9,491 8,447 1,044 18,426

1,358 - External Engagement 12,938 11,344 1,594 12,883(67) - Financial Services 4,257 4,211 46 4,070

437 - Human Resources 2,604 2,763 (159) 3,0252,165 - Information Technology Services 18,804 18,682 122 18,756

(1,031) (1,736) Operations 2,623 3,071 (448) 4,740(3,287) - Property Services 1,375 (255) 1,630 (1,773)

(482) (450) Research 3,641 3,552 89 3,526(1,282) - Shared Services 30,231 31,179 (948) 28,654(1,013) (1,615) Vice Chancellor's Office 3,461 3,270 191 3,143

11,173 6,408 Net Surplus / (Deficit) 133,657 130,046 3,611 140,003


Service DivisionsStatement of Cost of Services



10


20

31 May 2020


LAND AND BUILDINGS

100,813 110,275 Capital Works Programme 35,548 57,398 21,850 44,398

Divisional Land & Buildings444 - Service Divisions 28 - 28 409

1,385 306 Campus & Collegiate Life Services 187 164 (23) 548205 30 Division of Health Sciences 23 - (23) 10

2 - Division of Sciences 47 - (47) -

2,036 336 Total Divisional Land and Buildings 285 164 (121) 967

102,849 110,611 Total Land & Buildings 35,833 57,562 21,729 45,365

FURNITURE AND EQUIPMENT

618 1,200 Equipment Committee 151 1,200 1,049 6403,662 6,404 Capital Works Programme 440 3,341 2,901 228

Divisional Furniture & Equipment5,257 11,285 Service Divisions 1,703 2,682 979 1,0051,184 2,752 Campus & Collegiate Life Services 506 882 375 522

154 160 Division of Commerce 59 78 20 588,141 9,324 Division of Health Sciences 1,812 2,076 264 2,457

578 736 Division of Humanities 141 456 315 1663,234 3,306 Division of Sciences 855 2,398 1,542 1,085

22,828 35,167 Total Furniture & Equipment 5,667 13,113 7,446 6,161

SOFTWARE & SYSTEMS

6,357 12,242 Capital Works Programme 3,759 5,101 1,341 2,577

Divisional Software & Systems2,620 6,813 Service Divisions 169 1,748 1,579 313

70 103 Division of Health Sciences 19 40 21 228 - Division of Humanities - - - 8

22 31 Division of Sciences - 14 14 14

9,077 19,189 Total Software & Systems 3,947 6,903 2,956 2,934

LIBRARY BOOKS AND PERIODICALS2,653 2,936 Academic & Student Services 1,387 1,124 (262) 1,180

75 85 Division of Health Sciences 16 44 28 19

2,728 3,021 Total Library Books & Periodicals 1,403 1,168 (235) 1,199

137,482 167,988 TOTAL CAPITAL EXPENDITURE 46,850 78,746 31,896 55,659

University of OtagoStatement of Capital Expenditure



11


21

31 May 2020

Last Year Budget Actual Budget Variance$000's $000's $000's $000's $000's

CDC Capex - Approved Building Projects7 - 180 Albany St - Hazard Mitigation - - - - - Adams Building 1 - (1)

2,659 - Adams Building - Pharmacy Accreditation (17) - 17141 - All Other SSR Hubs 28 - (28)

(2) 3,000 Arana Seismic & Fire 60 - (60)- - Auckland Centre Refurbishment 15 - (15)

16,204 5,753 Auckland Dental Facility 4,589 5,753 1,164(3) 1,650 Caps / Gregory Project - 495 495

494 - Castle St Landscaping Projects 26 - (26)31 - Centralised and Consistent Accommodation Management 257 - (257)

2,876 12,000 Christchurch University of Otago 875 3,352 2,4771,627 400 Clock Tower Refurbishment 368 400 32

61 - Commerce Renovation Project - - - 26 - Generator Replacement at 444 350 - (350)59 1,995 H¿kitekura 318 350 32

4,211 - Hayward Seismic / Fire 6 - (6)- - Interprofessional Learning Centre 1 - (1)

1,148 - Invercargill Learning Centre - Health Sciences - - -11 - ISB Ask Otago Fitout - - -

16,145 5,375 Music and Theatre Studies 7,750 5,375 (2,375)- 32,000 New College - Te Rangi Hiroa Replacement 1,518 9,417 7,899

175 - ORC Leith Union St to Leith St Landscaping - - - (3) 1,500 Physical Education - 450 450

44 - Portobello - Aquarium - - - 18,055 12,500 Research Support Facilities Stage 2 & 3 6,508 12,259 5,75122,214 18,233 School of Dentistry Upgrade & Extension 7,530 12,361 4,831

- 1,936 Science III Fire 7 807 8003,789 - Science Precinct - Laboratory Redevelopment 117 - (117)

133 1,258 Slips and Trips (3) 1,258 1,261(13) - St David II General Fit-Out 5 - (5)

(1) - Studholme Seismic & Fire - - -(1) - Union Court 48 - (48)

335 - University Plaza Building One 90 - (90)(1) 2,400 UOW Project 56 720 6648 - Wickliffe Block - Demolition & Car Parking - - -

90,429 100,000 30,503 52,997 22,494CDC Capex - New Buildings

- - Property Purchases - - -

- - - - - CDC Capex - Approved IT Projects

11 - Aconex - Implementation & Integration 2 - (2)- 263 Ascender v19 Upgrade 13 23 10

5 - CCTV - - -- 653 CI Anywhere - Finance one 86 109 23

1 - Clocktower ICT 123 - (123)- 3 Configuring Agency Portal - 3 3

652 483 Customer Relationship Mgt - Phase One 426 264 (162)- 2,755 Customer Relationship Mgt - Phase Two 41 215 174

644 525 Dental ICT Requirements 158 250 92- 1,050 Digital Exams 386 350 (36)- 1,261 Energy Efficiency - ICT and Analytics 39 158 119

5 - Event Management 33 - (33)1,287 - Exodus Upgrade - Network Internet Edge Replacement 62 - (62)3,008 1,870 Network Upgrade Project - Phase 2 2,019 1,199 (820)

212 - Oracle Service Cloud phase I enhancements 16 - (16)42 - Placement Administration System - - -

1 - Principal Investigator Reporting 5 - (5)126 - Professional Development ¿ Learning Deployment - - -

- 364 Room Booking Consolidation 1 45 443 - Service Delivery Management - - -

196 - Student Management System Enhancements 295 - (295)61 - Student Mobile App - - - 57 - Student Placement ¿ Stage 3 172 - (172)

6,311 9,227 3,877 2,616 1,261Property Services - Capital Portion of R & M Budgets

2,114 2,500 Statutory Projects 472 1,042 570

University of OtagoStatement of Capital Works, Significant Equipment and Other Projects



12


22

31 May 2020

Last Year Budget Actual Budget Variance$000's $000's $000's $000's $000's

University of OtagoStatement of Capital Works, Significant Equipment and Other Projects



2,742 2,000 Adaption Projects 1,255 833 (422)9,246 11,922 Preventative Maintenance 3,639 5,761 2,122

- - Energy Infrastructure Maintenance - - - - - Compliance Remedial Works - - -

14,102 16,422 5,366 7,636 2,270

110,842 125,649 TOTAL 39,746 63,249 23,503

Available Funding for Projects not yet Approved- 3,274 CDC - ICT Projects available funds - 2,592 2,592

- 3,274 - 2,592 2,592

110,842 128,923 CAPITAL WORKS ADDITIONS TO FIXED ASSETS 39,746 65,841 26,095

13


23


The Convener moves that the public be excluded from the whole of the proceeding of this meeting/the following

parts of the proceedings of this meeting, namely,—

Item 4 Part 2 of the Minutes of the Meeting of the Finance and Budget Committee held

on 27 May 2020

Item 5 Financial Review Part 2

Item 6 Treasury Dashboard

Item 7 Borrowing Facility

Item 8 Comparison Information – NZ Universities

The general subject of each matter to be considered while the public is excluded, the reason for passing this

resolution in relation to each matter and the specific grounds under Section 48(1) of the Local Government

Official Information and Meetings Act 1987 for the passing of this resolution are as follows:-

General Subject Reason for passing this Ground under Section

resolution 48(1)(a) for the passing

of this resolution

Items 4 - 8 Good reason for withholding Section 48(1)(a)(ii)

Confidential Minutes information under the Official

and Reports Information Act

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and

Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act or

Section 6 or Section 7 or Section 9 of the Official Information Act 1982 as the case may require. The interests

which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in

public are as follows (all references are to Section 9 of the Official Information Act):

Items 4 – 6,8 9(2)(i)

Item 7 9(2)(i) and (j)

AND THAT Miss S van Turnhout and Mr S Willis be permitted to remain at this meeting after the public has

been excluded because of their knowledge of the matters to be discussed. This knowledge, which will be of

assistance in relation to the matters to be discussed, is relevant to those matters because it relates to aspects of

the administration of the University of Otago for which these people are responsible. The Registrar and

Secretary to the Council and Ms J Thompson are also permitted to remain at the meeting so as to provide

secretarial support and advice.

Finance and Budget Committee Part 1 - Exclusion of the Public

24

AgendaMinutesFinancial Review - May 2020Exclusion of the Public

Finance and Budget Committee Part 1...Finance and Budget Committee Part 1 Venue - Council Chamber, First Floor, Clocktower Building 02 July 2020 04:00 PM - 05:00 PM Agenda Topic Page

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