University ends 2005 with a surplus but at what cost?

The financial legacy outgoing rector Roger Ellul Micallef will leave at University is a positive surplus of Lm338,000 for 2005 against a deficit of Lm280,000 a year before.
The accounts, which form part of the annual report published by the University, contain no notes and are not audited. This makes it difficult to understand whether the improved financial results came about because of money-making or cost-cutting initiatives.
The turnaround is positive but the lack of capital expenditure leaves much to be desired.
The income for 2005 stood at Lm15.5 million against Lm14.5 million registered in the previous year. What brought about this one million pound increase is not explained.
When it comes to costs, the payroll bill has marginally increased while the costs associated to operating expenses have increased by over Lm300,000.
On the basis of these improved financial results the shortfall of the equity fund has decreased.
Of concern, however, is the low level of capital expenditure at Lm0.5million over a student population of 10,000.