It was to be expected that the UT was heading for a deficit of millions in 2023. A deficit of 15 million was budgeted; Last December, it was estimated that the deficit would go towards 8.7 million euros due to some financial windfalls. According to the financial statements, the actual result now amounts to minus 10.8 million euros.
Red figures
How that deficit came about: the faculties in particular were in the red last year, more than double the budget: almost 22 million euros. On the other hand, the support services posted a less substantial deficit and the university's affiliated companies and participations accounted for a plus of 2.2 million euros. But above all: at the central level, the UT has recorded a substantial gain of almost 14 million euros.
According to the annual report, underlying the financial results include higher wage costs (8.3 million euros higher than budgeted), a lower inflow (approximately 10 million euros less income), the purchase of new inventory and equipment (6.5 million euros more costs) and higher travel and accommodation costs (2.8 million euros more). On the other hand, the UT received slightly more income from interest (+3.1 million euros) and energy costs were 4 million euros lower than expected.
But the 14 million euros for the central UT unit in particular means that the UT ended up with a smaller deficit than budgeted. But that actually paints a distorted picture. If you look at the UT's so-called normalised operating result – the effect of revenues and expenses that are not part of the actual business operations – the UT writes a deficit of 24.2 million euros.
Incidental windfalls mask deficit
It is mainly incidental windfalls that disguise the UT's deficit. For example, the university received almost 11 million euros back from the Tax and Customs Administration. It concerns the reclamation of VAT between the years 2016 and 2021. In addition, the old ITC building at the Hengelosestraat was sold to the Central Government Real Estate Agency for 6.4 million euros. On the other hand, there are two financial setbacks: an extra one and a half million euros will go to the vitality pact – a provision that enables employees to work less towards retirement. And the UT is spending 3.8 million euros more than expected on 'leave capitalisation', i.e. the reservation for payment of unused leave hours to employees who leave the UT.
2024: Sharper deficit expected
The UT wants to end up with a deficit of up to 7.5 million euros this calendar year. The most recent management report showed that the UT seems to be heading for a deficit of roughly 14 million euros. This does not yet include wage increases due to the new collective labour agreement. Since labour costs are by far the largest cost item for the university, this can have a significant effect.
