UTech profits up on fee increases

The University of Technology Jamaica saw its surplus rise by $261 million or 45 per cent on the back of increases in income from tuition and accommodation fees and an expanding student population during its last financial year.

That was achieved despite a reduction in government subvention and a 15 per cent spike in staff costs as well as hikes in utility expenses, repairs and maintenance, and travel and subsistence allowances.

The Papine, St Andrew-headquartered university had a surplus of J$314.3 million at the end of its 2010 financial year, rising to J$575.3 million at the end of its financial year ended March 2011, according to information gleaned from its audited results released recently.

J$1 billion increase

Income from tuition fees rose by just under J$1 billion from J$1.76 billion in the 2010 financial year to J$2.71 billion in 2011, while hostel fees rose to J$44 million from $34.1 million during the same period as it saw an upward movement in the student population to 12,162 from 11,409.

Government subvention stood at J$1.68 billion in 2011, down from J$1.79 billion the previous year.

UTech also earned income from long investments in bonds, equities and unit trusts, as well as short-term investments in Bank of Jamaica certificates of deposit, the total book value of which rose just over 30 per cent or J$301 million in the year to 2011, from almost J$693 million to J$994.6 million.

On the expenditure side, payroll costs totalled J$3.2 billion at the end of the last financial year compared with J$2.7 billion in 2010, partly explainable by an increase in employees to 1,444 or 70 more than the 1,374 in the university's employment in 2010.

Electricity, telephone and water accounted for J$257.8 million in expenses in 2011, almost J$58 million more than the previous year. Repairs and maintenance costs increased to $208.4 million in 2011 compared with $151.5 million a year earlier.

J$103.5 million bank overdraft

The university's cash and equivalents at the end of the year totalled $296.8 million compared with J$25.1 million last year, partly because of a provision made in 2010 for a J$103.5 million bank overdraft, reduced to J$24.7 million at the end of the 20111 financial year.

However, in the notes to the financial statements, UTech explained that the overdrafts "do not represent actual overdrafts at the bank but issued cheques, net of deposits in transit that will be covered by timely transfers of funds in the normal course of the university's treasury management".

Unexpended grants for specified projects from, among others, the European Commission, Canadian International Development Agency, the Environmental Foundation of Jamaica and Mustard Seed totalled J$169.8 million.

At financial year end, the university had a loan balance of J$32.4 million. This represents the amount due on the Jamaican dollar equivalent of a US$2.4-million loan drawn down under a contract between the Government and the Caribbean Development Bank and on-lent to UTech.

According to the notes on the financial report, under the terms of the agreement no collateral is required and interest is payable quarterly at 2.5 per cent on the amount of loan drawn down and outstanding.

The principal is repayable in 40 equal, consecutive quarterly instalments starting April 1, 2005, with the final instalment due on January 1, 2015. It said that since the loan was on-lent in Jamaica dollars, the Government assumed all foreign-exchange adjustments related to it.

UTech endowment fund grew marginally to just over J$16 million at March 2011, up from J$15.2 million the previous year, while receipts from the Students' Loan Bureau to be paid to or on behalf of students was J$24.5 million.

mcpherse.thompson@gleanerjm.com