2020 Operating Result
2020 Profit and Loss Statement including 2020 Budget, and 2019 Results
amounts x €1,000 | |||
|---|---|---|---|
Realised in 2020 | Budgeted for 2020 | Realised in 2019 | |
Income | |||
Government funding (excl. workplace function) | 338,120 | 328,553 | 319,939 |
Tuition, course, lecture, and examination fees | 45,077 | 44,000 | 42,252 |
Income from third-party work | 191,303 | 207,543 | 193,823 |
Other third-party income | 40,276 | 46,932 | 48,004 |
Total income | 614,776 | 627,028 | 604,018 |
Expenses | |||
Personnel expenses | 464,787 | 454,361 | 426,221 |
Depreciation | 31,414 | 28,403 | 32,165 |
Accommodation expenses | 28,794 | 20,229 | 25,407 |
Other expenses | 90,748 | 132,301 | 109,226 |
Total expenses | 615,743 | 635,295 | 593,019 |
Balance of income and expenses | -967 | -8,267 | 10,999 |
Financial income and expenditures | -112 | 0 | -40 |
Corporation tax | 0 | 0 | |
Result from participating interests | -143 | 0 | 76 |
Operating Result | -1,222 | -8,267 | 11,035 |
Normalised Results for 2020 and 2019
amounts x €1 million | ||||
|---|---|---|---|---|
2020 | 2019 | |||
Operating Result | -1.2 | 11.0 | ||
Temporary and one-off outlays | ||||
- unused sector plan funding | -3.0 | -3.6 | ||
- adjustment of the estimates for WNU facility | 0.0 | -0.7 | ||
- provision for demolition and asbestos removal | -0.3 | 0.3 | ||
- provision for building maintenance | 0.0 | 1.6 | ||
- non-capitalised small works | 1.8 | 1.4 | ||
- underspending on additional government funding | 0.0 | -2.2 | ||
- underspending on personnel and material costs | -3.8 | 0.0 | ||
- underspending on travel and accommodation costs | -3.4 | 0.0 | ||
- effects of coronavirus | 8.1 | 0.0 | ||
- correction of previous years’ BACOM obligation | 0.0 | -0.5 | ||
- rationalisation of the obligation for leave days | 0.0 | -0.5 | ||
- correction of the obligation for support foundations | 0.0 | -0.5 | ||
-0.6 | -4.7 | |||
Normalised Operating Result | -1.8 | 6.3 |
Explanation of the Most Important Developments in the 2020 Result Compared to the 2019 Result
The main reason for the decline in the result from 2019 (€11.0 million positive) to 2020 (€1.2 million negative) is the increase in personnel costs, mainly due to a higher staffing level aimed at reducing workload, which could not be fully covered by the increase in income.
Direct government funding rose by €18.2 million due to wage and price adjustments and transfers from NWO (for STEM and SEO funds). Tuition fee income rose by €2.8 million due to an increase in the number of students and higher tuition fees. The income from ‘work commissioned by third parties’ decreased slightly (€2.5 million) and ‘other third-party income’ decreased by €7.7 million, mainly as a result of the coronavirus crisis.
Personnel costs rose by €38.6 million, mainly due to higher staffing levels (200 FTE on average), an increase in leave liability and an increase in the collective labour agreement. Depreciation remained roughly the same.
The new Maria Montessori building will be in use from 1 January 2021. Accommodation costs will increase by €3.4 million compared to 2019. This is largely explained by higher rental costs due to the rent of temporary corona-proof lecture halls (€0.7 million), other accommodation costs (an increase of €5.6 million) due to improved cost accounting minus a lower allocation to the provision for other accommodations (€1.6 million).
Other institutional costs decreased by €18.5 million. The decrease was mainly attributable to:
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Consumption of raw materials and consumables (€5.7 million) due to reduced catering activities as a result of the lockdown.
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Outsourced third-party services (€8.7 million) due to lower charges at the medical faculty (€4.7 million) and €3.7 million due to better accounting for accommodation costs by the Department of Property Management (UVB). This was offset by higher ICT expenditures of €1.9 million.
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Travel and accommodation expenses (€5.2 million), mainly due to less travel as a result of the lockdown.
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Other expenses (€2.6 million), mainly due to lower expenses at Radboud Services (cancellation of the Radboud Summer School and the orientation week) and at the Faculty of Science (lower catering expenses and project-related costs for degree programmes and contributions).
Interest charges were higher than in 2019 because banks are charging more ‘negative interest’ and doing so more quickly. In mid-2020, we switched to treasury banking.
Explanation of the Most Important Developments in the 2020 Result Compared to the 2020 Budget
Compared to the 2020 budget, there are positive differences due to unused sector plan funds (€3.0 million), higher government contributions (€3.6 million) and underspends at the faculties (€7.2 million, partly due to lower travel and accommodation costs of €3.4 million and partly due to lower personnel and material costs of €3.8 million). Furthermore, income rose by € 1.7 million due to more grants from the Reinier Post Foundation. The coronavirus crisis is the main reason for the negative differences: a deviation of €8.1 million, mainly due to lost income from the catering facilities run by Radboud Services.
