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Treasury

In 2020, Radboud University switched to ‘treasury banking’, whereby surplus funds are held at the Ministry of Finance. A major advantage of this is that there is no negative interest. Partly for this reason, and because of the unbundling of the university and Radboud university medical center as of 1 January 2021, a start was made on amending the treasury charter in 2020.

The starting point for the process of controlling, managing and monitoring current and future cash flows is the creation of strategic plans for education and research and the future property investments based on it. The statutes explicitly state which guidelines Radboud University follows in its investment policy, financing policy, participation in legal entities, and loans to legal entities. Furthermore, the statute’s basic principles are in line with the Ministry of Education, Culture and Science’s ‘Regeling beleggen, lenen en derivaten OCW 2016’ (regulation on investing, borrowing, and derivatives). The university is registered as a non-professional investor in its banking relationships. In addition, the internal decision-making process on taking out a current account credit (of up to €32 million) was completed in 2020. This means that if the minimum required funds fall below the limit of €20 million in the future, the university can take out a short-term loan from the Ministry of Finance.

Detailed, weekly-updated liquidity statements are used to continuously monitor liquidity flows within the university. In the year under review, the treasury activities consisted of switching to treasury banking and, until that time, making the best possible allocation of surplus cash and cash equivalents. Limited use was made of fixed deposits with three-month maturity. A large part of the funds is held in flexible savings accounts. The funds have been deposited with large Dutch banks that have at least an A-rating. There are no investments or derivatives.

With regard to financing risks, Radboud University:

  • only operates in the Netherlands, which means that incoming financial transactions have no currency risk and outgoing financial transactions have a limited and occasional currency risk;

  • does not have securities and, therefore, does not run a price risk;

  • has no material interest-bearing receivables and, therefore, no interest risk;

  • has no significant concentrations of credit risk;

  • has no liquidity risk in the first year and can finance investments for current investment plans from its own funds. In the longer term, the university foresees borrowing.