About 2.5 years ago, the President decided on a balanced budget project that would run through the end of 2023. It was initiated in response to a strained financial situation that required action. We have all worked hard to achieve the goal of this decision. The work has been challenging in many ways, but has also produced results. The 2019 financial result of an SEK 223 million deficit has been converted to a deficit of SEK 11 million in 2022.
The initial forecasts for 2023 pointed to a balanced budget for the year, but now, after quadrimester 2, the forecasts indicate a deficit of SEK 10 million for the full year in the university’s current operations. The President has therefore written to the academic areas and the Management Team to encourage them to take the measures possible to improve the financial result. To use the expression that was put to heavy use during the pandemic, it is now a matter of “holding on and persevering”. With joint efforts, I am convinced that we can achieve a break-even result for 2023.
There is strength in working together to achieve a goal. A contribution we can all make is to keep costs down where possible, such as by postponing purchases, considering whether it is possible to replace budget appropriation-funded travel with digital meetings, and avoiding bringing in consultants unless absolutely necessary. In terms of revenue, measures can include ensuring that costs in grant-funded projects are correctly posted against the funding body, encouraging students to retake examinations, and being diligent about reporting activities in the right financial year. Each year, we usually see “December activities” amounting to about SEK 5 million. These are activities that are carried out during the current year, but not posted until the next year. As a result, the compensation does not benefit the department.
Our efforts to maintain a balanced budget will not stop when the project comes to an end. There will still be major challenges due to the high inflation, with the increased costs and rising rent levels that come with it. In the long term, we are working to optimise our use of premises, with the aim of reducing the rented area we have at our disposal so that we can limit our premises costs and thus be able to use a greater proportion of our funds education and research, which I wrote about in my editorial ”Premises of the future” in the spring.
But as I said – with joint efforts, it is important that we persevere to the last few months of the year to take the balanced budget project 2023 to the finish line, by ending up with a break-even result in 2023.
This text is written by Åsa Borin, University Director. It appears in the section ”Words from the University’s senior management team”, where the management team take turns to write about topical issues. The section appears in every edition of News for staff.