Administration budget still needs to be tightly controlled
The administration is implementing a cost reduction of DKK 100 million; a process which was launched in early 2015. But the cutbacks provided for in the Finance Act 2016 require that the possibilities of new revenues as well as cost reductions be explored in the course of the spring. All employees are encouraged to submit proposals.
Dear member of administrative staff,
Before summer, the university must draw up a financial plan to mitigate the effects of the Finance Act 2016 for the university. This plan must also take the administration’s financial situation into account.
Together with the Finance Act’s so-called reallocation contribution, cuts to competitive research funding will mean that the university must expect a total drop in income of at least DKK 300 million in the period 2016–2019. As a result of the study progress reform, the university also risks a significant fine if students’ time to degree is not markedly reduced.
The administrative budgets have already been carefully scrutinised in recent years, particularly in connection with extensive cost reductions in 2014. At the beginning of 2015, the senior management team further decided that the university’s administration costs had to be reduced by DKK 100 million in the 2015–2019 period. The administrative divisions and administration centres have already come a long way towards implementing these cost reductions, with the involvement of the local liaison committees, and these efforts will continue unchanged in the period ahead.
Due to the financial measures we have launched already, we expect to be able to maintain balance in the university’s accounts in 2016. However, the drop in income introduced in the government’s latest Finance Act requires that the administration, like the faculties, spend the next few months considering how the financial challenges can best be tackled in 2017 and the following years. At present, it is uncertain how the administration’s finances will be affected, as this is closely associated with the budget plans currently being prepared by the faculties. We will therefore first and foremost focus on the efforts to realise the current cost reductions, and subsequently explore the possibilities of further initiatives to ease the pressure on the finances.
The senior management team is convinced that we as university will get the best results by working together. In LEA (the administration’s management team), we have therefore decided to continue the process of local discussions about cost reductions and efficiency improvements, so that we together choose the right priorities going forward. Because we will have to prioritise if we are to maintain the quality in the work we do – and that is a must. In the coming months, deputy directors, administrative centre managers and local managers will therefore keep the financial situation on the agenda in the liaison committees and at staff meetings in the administrative units. Proposals from the local discussions will be included in the preparation of the university’s overall budget plan in the course of April and May, which will be presented to the board in mid-June.
It is not necessary to have been here for a long time to realise that you are all making professional and dedicated efforts despite the difficult financial conditions in both past and coming years. This is testimony to a high level of commitment, which is an important prerequisite for having a well-functioning administration. I hope you will all continue to participate in the local discussions, and I look forward to working with you on finding solutions that ensure that Aarhus University will also be a strong university in future, with high quality in the administration which is to support research and education and, not least, be a good workplace for all of you.
Kind regards,
Arnold Boon
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