Operating surplus for 2009 signals growth
La Trobe University records operating surplus for financial year 2009: AA- rating affirmed
La Trobe University and its consolidated entities have recorded an operating surplus of $54.8 million for the year ended 31 December 2009. This is a good result and compares well with the operating surplus of $19.2 million for 2008 and is due to increased revenue streams and the effective management of costs.
After removing the effect of one-off items the operating surplus was $33.6 million, which is an underlying operating surplus of 6.5 per cent.
‘The good news is that University is returning to financial health’, said La Trobe University Chief Financial Officer, Pranay Lodhiya.
‘It’s an important step because the University needs to build strong surpluses in order to have the capacity to invest in our neglected infrastructure as well as spend on teaching and research if we are to develop and grow in the newly competitive environment of higher education. We still have a way to go before we can ensure long term financial sustainability,’ he said.
Combined operating revenue for the University was $542 million, up from $483 million in 2008, an increase of 12 per cent.
‘I want to thank La Trobe University staff for the tireless work they have done to achieve this surplus,’ said Vice Chancellor Professor Paul Johnson.
‘The changes I have introduced since becoming Vice Chancellor are building a new La Trobe University, and I am delighted that in 2009 we exceeded our target surplus range for the year.
‘La Trobe needs to be healthy financially if we are going to realize the ambitious plans we have for the University, we have a long way to go, but I am proud to say we are making excellent progress,’ said Professor Johnson.
Income from Australian Government Grants and HECS increased $20.7 million (up 7 per cent), consulting and contracts research increased $1.43 million (up 3 per cent), overseas full fee-paying student income and domestic student course income increased $19.9 million (up 19 per cent) and state and local government financial assistance increased by $2.7 million (up 47 per cent).
Last December Standard and Poors Rating Services has also affirmed its AA-/A-1+ ratings on La Trobe University.
The assessment reflects the University’s solid reputation for teaching and quality research in areas of excellence such as social sciences, humanities and science.
La Trobe’s Financial Statements for 2009 were presented to the Victorian Parliament on 5 May 2010.
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