2021 operating result
2021 profit and loss statement including 2021 budget, and 2020 results [1]
amounts x €1,000 | |||
|---|---|---|---|
Income | Realisatie 2021 | Begroting 2021 | Realisatie 2020 |
Government funding (excl. workplace function) | 379,167 | 349,394 | 338,120 |
Other government contributions and grants | 1,836 | 0 | 0 |
Tuition, course, lecture and examination fees | 40,370 | 47,133 | 45,077 |
Income from third-party work | 217,175 | 221,157 | 191,303 |
Other third-party income | 40,337 | 43,594 | 40,276 |
Total income | 678,885 | 661,278 | 614,776 |
Expenses | |||
Staff expenses | 503,913 | 493,857 | 464,787 |
Depreciation | 34,343 | 34,726 | 31,414 |
Accommodation expenses | 33,217 | 30,245 | 28,794 |
Other expenses | 112,445 | 114,044 | 90,747 |
Total expenses | 683,918 | 672,872 | 615,743 |
Balance of income and expenses | -5,033 | -11,594 | -967 |
Financial income and expenses | -175 | -10 | -112 |
Corporation tax | 0 | 0 | 0 |
Result from participating interests | -71 | 0 | -143 |
Operating result | -5,279 | -11,604 | -1,222 |
- 1 The financial statements include a further explanation of each item.
Normalised results for 2021 and 2020
in € x million | 2021 | 2020 | ||||
|---|---|---|---|---|---|---|
Realised operating result | -5.3 | -1.2 | ||||
Temporary and one-off outlays | ||||||
- unused sector plan funding | -2.9 | -3.0 | ||||
- continued development of Radboud Services | 1.8 | 0.0 | ||||
- structural NPO funding | -5.0 | 0.0 | ||||
- additional support for top research | 1.9 | 0.0 | ||||
- additions to provision for accommodation | 2.0 | -0.3 | ||||
- digital assessment | 1.0 | 0.0 | ||||
- non-capitalised small works | 2.8 | 1.8 | ||||
- other | -0.1 | 0.0 | ||||
1.5 | -1.5 | |||||
Effects of coronavirus | ||||||
- Radboud Services (catering and sport) | 4.7 | 3.1 | ||||
- other units (underspending on material costs) | -2.1 | -4.5 | ||||
- underspending on travel and accommodation expenses | -1.6 | -4.3 | ||||
- higher hiring costs | 1.8 | 0.4 | ||||
- addition to provision for project losses | 0 | 1.5 | ||||
- increase in leave liability | 0 | 2.1 | ||||
- loss of rent and reduced revenues | 0 | 1.4 | ||||
- other | 0 | 1.2 | ||||
2.8 | 0.9 | |||||
Normalised operating result | -1.0 | -1.8 | ||||
Explanation of the most important developments in the 2021 result compared to the 2020 result
The main reason for the decline in the result from 2020 (€1.2 million negative) to 2021 (€5.3 million negative) lies in the deliberate choice to increase expenses by €68.2 million, which is greater than the increase in income (€64.1 million).
Government funding increased by €41.0 million due to wage and price adjustments and especially the NPO resources (€25.5 million). Other government contributions increased by €1.8 million due to the income received from the Dutch Research Council (NWO) in relation to the extension of employment contracts because of COVID-19. Tuition fee income decreased by €4.7 million due to a temporary reduction in tuition fees as a concession to students. The Ministry of Education, Culture and Science compensated for this decrease in the government funding. The ‘income from third-party work’ increased by €25.9 million due to a catch-up effect with respect to 2020. The amount of ‘other third-party income’ was almost the same as in 2020.
Personnel costs rose by €39.1 million, mainly due to higher staffing levels (as of 31 December 2021, 283 FTEs more than in 2020), an increase in leave liability and an increase in the collective labour agreement. Depreciation rose by €2.9 million because the new Maria Montessori building of the Faculty of Social Sciences was commissioned on 1 January 2021. Accommodation costs in 2021 increased by €4.4 million compared to 2020. This is largely explained by higher rental costs due to a higher addition to the provision for other accommodations (€1.7 million) and the provision for demolition costs/asbestos remediation (€1.0 million). Energy and water costs were also €1.0 million higher because of higher gas and electricity prices, an increase in the volume of gas (+8%) because of colder days, and a higher energy tax.
Other costs increased by €21.7 million. That increase was mainly due to:
-
Consumption of raw materials and consumables (€ 6.4 million) as a result of more R&D projects, mainly due to a catch-up in relation to 2020.
-
Outsourced third-party services (€11.0 million). This was mainly the result of more ICT projects (€3.1 million) and the model-based allocation of more costs at the medical faculty (€6.4 million).
This was offset by lower costs due to a €2.0 million decrease in the allocation to other provisions. Interest charges were €0.1 million higher than in 2020 because banks are charging more ‘negative interest’ and doing so more quickly. The university is taking steps to further maximise the benefits of treasury banking.
Explanation of the most important developments in the 2021 result compared to the 2021 budget
General
In 2021, more was spent on quality agreements than budgeted. The overrun was partly due to ICT in education and partly to more intensive and smaller-scale education.
For further clarification, see Chapter 2, ‘Education that makes a difference’.
Specific
The main reason for the less negative result in 2021 (€5.3 million negative) compared to the 2021 budget (€11.6 million negative) is the €17.6 million increase in the income, mainly because of the additional allocated NPO resources. However, these funds could not be used in full because some vacancies were not filled or were filled only later. The overrun of the budget for personnel costs came to €10.1 million.
Government funding increased by €29.8 million due to wage and price adjustments and especially the NPO funding (€25.5 million). Other government contributions increased by €1.8 million due to the income received from the Dutch Research Council (NWO) in relation to the extension of employment contracts because of COVID-19. Tuition fee income decreased by €6.8 million due to a reduction in tuition fees that the ministry compensated for in the government funding. The ‘income from third-party work’ decreased slightly by €4.0 million to €217.2 million. The ‘other third-party income’ was €3.3 million lower than the 2021 budget.
Personnel costs rose by €10.1 million, mainly due to higher staffing levels (average number of FTEs was 5,745 in 2021, budgeted average was 5,619). Depreciation remained approximately equal to the budget. The new Maria Montessori building was commissioned in line with the budget in the beginning of January 2021. Accommodation costs were €3.0 million higher due to higher allocations to provisions (€2.3 million) and higher energy costs. Other expenses fell slightly (€1.6 million), partly as a result of less R&D work commissioned by third parties.
