6.12 Consolidation and Related Parties
The consolidation includes the financial data of the Tilburg University Foundation (Stichting Katholieke Universiteit Brabant) hereinafter referred to as the “Consolidated Group,” together with those related parties in which there is a majority interest or decisive control, as well as the proportional share of joint operations.
In addition to the Tilburg University Foundation, the following parties are involved in the Consolidated Group:
TiU Holding B.V., Tilburg, 100%, director of Tilburg University Foundation
Tilburg University Career Services B.V., 100%, director of Tilburg University Foundation
TiU Knowledge Transfer B.V., 100%, director of Tilburg University Foundation
TIAS Business School B.V., Tilburg, 80%
Tilburg University Fund Foundation, Tilburg, 100%, partial personal union between the Tilburg University Executive Board and the Tilburg University Fund Foundation.
In the event of a majority interest of less than 100%, a minority interest is included separately in both the result and in group equity.
The minority stake of TiU Holding B.V. in Starterslift Investments B.V. was transferred to TiU Knowledge Transfer B.V. in 2021. This minority participation is not included in the consolidated financial statements of the Tilburg University Foundation.
A Related Companies Policy is used for the purposes of administrative management and governance. The Related Companies Policy corresponds to the recommendations in Section 8 of the Good Governance Code for Universities (UNL, 2019).
Proportional share in Joint Operations
Tilburg University Foundation has a multi-year cooperation agreement with Eindhoven University of Technology, the province of Noord-Brabant, and the municipality of ’s-Hertogenbosch regarding the joint graduate school in ’s-Hertogenbosch (JADS), as well as the joint Bachelor’s program in Data Science with Eindhoven University of Technology. The Tilburg University Foundation’s contribution is €10 million in kind. The subsidy contribution from the province and the municipality (€20 million combined) was used in full by the end of 2020.
The JADS is recognized proportionately. This implies that Tilburg University and Eindhoven University of Technology recognize the joint assets, liabilities, income, and expenses of the JADS in their annual statements of accounts proportionate to their interest in the JADS (50% each). A joint arrangement as referred to in Article 8.1 of the Higher Education and Research Act was agreed between Tilburg University and Eindhoven University of Technology in 2019. In addition to tuition fees and the variable funding from the national government related to funded students, degrees, PhD theses, and designer’s certificates, the universities contributed a fixed base of €0.5 million collectively in 2021. Surpluses and deficits from this collaboration are shared between Tilburg University (50%) and Eindhoven University of Technology (50%). The deficit for 2021 was €2,508 million.
The legal entity L-Logic B.V., whose significance in relative financial terms is negligible, is not included in the annual statements of account of Tilburg University Foundation. This legal entity is being dissolved.
Related parties and strategic cooperation partners
Related parties are defined as all legal entities over which dominant control, joint control, or significant influence can be exercised.
Furthermore, there are related parties in which there is a minority interest and/or a partial personal union at the management level without decisive managerial control. These legal entities are not included in the consolidation. In particular, this concerns the following legal entities, which are not to be included in the consolidation:
Foundation for Endowed Chairs
Tilburg Orientation Program Foundation
Starterslift Investments B.V.
Midpoint Brabant Foundation
Brabant Foundation for Higher Education for Older People (HOVO) Brabant Senior Academy
Furthermore, there are three “support foundations”:
Tilburg University Fund Foundation (component of the Consolidated Group)
Foundation for the Support of Catholic Higher Education (not a related party)
Professor Cobbenhagen Foundation (not a related party)
Transactions of significance with related parties are explained if they were not entered into under normal market conditions. Of these, the nature and size of the transaction and other necessary explanatory information are explained.
In addition to its the cooperation with related parties, the Tilburg University Foundation cooperates strategically and to a greater or lesser extent administratively with various other legal entities. In particular, these include student organizations, collaborative research and education partners, industry organizations (e.g., UNL, SURF), and regional governments. Individuals who are to a greater or lesser extent involved administratively and/or substantively with these legal entities on behalf of the Tilburg University Foundation are accountable: To their supervisors and, ultimately, to the EB in respect of their functional duties.
The functioning and management of the legal entities that are part of the Consolidated Group and the cooperation with related parties and strategic cooperation partners is the subject of periodic consultation between the EB and the Board of Governors.
Entering into and continuing strategic partnerships and connections is always done in the interest of Tilburg University’s perceived societal mission. In line with Section 8 of the Good Governance Code for Universities (UNL, 2019), in the decision-making of the EB on the entry of Tilburg University into new financial and/or managerial involvement in other legal entities and/or partnerships, it is clear how this contributes to the implementation of the University-wide strategy. Furthermore, in 2021 the EB initiated a process focusing on the account management of the various strategic collaborations and connections, the professionalization of this account management in light of the Strategy 2027, and the drafting of guidelines for entering into and dealing with strategic and contractual collaborations. The challenge is always to be open to new research (or other) collaborations and the corresponding requests for customization. In practice, the intrinsic need for collaboration among our researchers and Schools sometimes raises questions about how to make the various collaborations sustainable, which collaborations can count on additional attention due to the University-wide strategy, and how to organize financial and personnel administration.