Financial results show solid progress
La Trobe University and its consolidated entities recorded an operating surplus of $101 million for the year ended 31 December 2010 which is an operating margin of 15 per cent.
After removing the effect of one-off capital contributions the operating surplus was $34.9 million, which is an underlying operating surplus of 5.1 per cent. This result compares well with the operating surplus of $33.6 million for 2009, and is due to increased revenue streams and the effective management of costs.
‘The good news is that, despite a very challenging environment, the University is continuing towards financial health,’ said La Trobe University Vice-President (Finance & Resources), 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 core teaching and research initiatives that will better position us in the increasingly competitive environment of higher education.
‘The next few years are going to be more challenging, so financial health will be more important than ever,’ said Mr Lodhiya.
Combined operating revenue for the University in 2010 was $618 million, up from $542 million in 2009, an increase of 15 per cent.
The University’s Vice-Chancellor and President, Professor Paul Johnson said, ‘Once again I want to thank La Trobe University staff for the tremendous efforts they have made to achieve this surplus.
‘The changes I have introduced since becoming Vice-Chancellor are building a new La Trobe University, and I am delighted that in 2010 we completed and opened the new $11 million Shepparton campus building and moved towards construction of the La Trobe Rural Health School in Bendigo.
‘Progress has also been made on our other major projects, the $288 million Agribio centre for agricultural bioscience, and the $94.1 million La Trobe Institute for Molecular Science, both at the Melbourne campus in Bundoora.
‘La Trobe needs to be healthy financially if we are going to realise the ambitious plans we have for the University, and I am proud to say we are making excellent progress,’ said Professor Johnson.
Income from Australian Government Grants and HECS increased $68.11m (up 23 per cent), research and contracts decreased $0.44 million (down 1 per cent), overseas full fee-paying student income and domestic student course income increased $8.17 million (up 7 per cent) and state and local government financial assistance decreased by $2.81 million (down 33 per cent).
On 2 February 2011, Standard and Poors Rating Services 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 University’s main Melbourne campus is located in Bundoora in Melbourne’s north. The University is a multi-campus institution with major educational facilities in northern Victoria, at Bendigo, Albury-Wodonga, Mildura and Shepparton plus a Melbourne city campus. In 2010, there were more than 32,000 students and 2500 staff.
La Trobe’s Financial Statements for 2010 were presented to the Victorian Parliament on 5 May 2010.
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