University Board approves interim financial statement and discusses operating and financial framework

At its meeting on 20 October 2022, the Board of Directors of the University of Oulu approved the university’s interim financial statement 2/2022 for January–August.

The accounting income from the university’s operations for January–August 2022 shows a loss of EUR –6.2 million and the corrected operating result shows a profit of EUR 0.7 million. The accounting income from investment operations is EUR –22.6 million and the overall result shows a loss of EUR –21.1 million, taking into account the financing of the fund-raising result in the restricted reserve.

The forecasted accounting income from operations for the whole of 2022 is EUR –11.3 million, and the corrected operating result shows a loss of EUR –1.1 million (adjustment items include investment income, use of fundraising and SYK dividends), taking account of the decisions concerning the use of the balance sheet and the use of investment income included in the forecast.

The university’s balance sheet position is stable and its equity ratio remains good, although it weakened during the year due to the net loss. At the end of August, the balance sheet total was EUR 321.6 million (346.3 on 31 December 2021), of which investments amounted to EUR 259.3 million (286.6) or 81%.

In accordance with the Rules of Procedure for Finances approved by the University’s Board of Directors, the profit centres report on achieving the set targets in conjunction with the interim and annual financial statements. The interim financial statements are prepared at the end of April and August.

The Board of Directors also discussed the financial and operational plan that will be carried forward at the university.

The preliminary financing calculation is in line with the decision on spending limits and includes the VAT adjustments reported by universities. Based on preliminary information provided by the Ministry of Education and Culture, total funding for the University of Oulu in 2023 is currently estimated to increase by approximately EUR 5.9 million from 2022. The final amounts will be determined once the completed calculations are received from the Ministry of Education and Culture. Factors that will increase the university's cost level from 2022 to 2023 include salaries, rents, prices of purchase services and the price of electricity.

The planning of the university’s operations and finances is based on the strategy approved by the Board of Directors. The agreement between the Ministry of Education and Culture and the university sets common and university-specific goals and the level of state funding for the university.

Last updated: 20.10.2022