8.1 Main Points of the Annual Statement of Accounts

These notes relate to the consolidated annual statements of account for the Tilburg University Foundation and the following related parties: the University Fund Foundation, the TIAS Business School B.V., and TiU Holding B.V. The operations for 2021 are presented below, in comparison to the previous year’s budget and realization.

Table 8.1 Main points of operations (in €1,000)

Tilburg University closed 2021 with a consolidated surplus of €4.1 million, against the budgeted amount of -/- €7.8 million. The difference from the budget is greater than it was in 2020. This is related to the accelerated compensation of student growth (€6.2 million) through the NPO.

Income

• Funding from the national government amounted to €173 million (2020: €146 million). The difference from the budget amounted to nearly €16 million. This is related to the NPO: in addition to the accelerated compensation of student growth, an incidental allocation of €9.5 million was made. The amount of €3.3 was allocated for salary and price compensation in 2021.

• In 2021, Tilburg University received more funding for the Quality Agreements than it had in 2020 (+€2.8 million). Due to the higher-than-average growth in the number of enrolled students, Tilburg University received a larger share of the increasing study advance funds.

• The higher-than-average growth in the number of enrolled students and degrees is also reflected in student-based funding. The surplus relative to 2020 is greater than €7 million. Although this seems like a lot, it is insufficient to maintain the student-to-staff ratio after the 20% reduction of the student-related tuition rates starting in 2019 as a result of the Van Rijn Commission.

• The number of enrolled students grew by 4.7% in 2021. This volume growth was offset by a fee reduction of €1,071 for full-time students in the 2021/2022 academic year in relation to COVID-19. This reduction was compensated through the NPO. On balance, tuition fees were almost €5 million lower than the budget.

• Due to COVID-19, income commissioned by third parties (contract research and contract teaching) was €7.5 million (more than 13%) less than budgeted. In 2020, the difference was nearly 18%.

• Other income (mainly grants and income from secondments) amounted to more than €3.4 million above budget. The realization was at the level of 2020.

Expenses

• Personnel expenses were 0.7% above budget (€0.9 million). For external employees, €0.9 million (+5%) more was spent than budgeted. The staffing level increased by 54 FTE, but this was €2.0 million (1.1%) less than budgeted, due to a reduction in international intake as a result of COVID-19, as well as to the strained Dutch labor market. Due to higher staffing levels and higher wages in the Collective Labor Agreement, personnel expenses were €12 million higher than in 2020. An amount of €1.6 million more than budgeted was added to personnel provisions. For social benefits, €0.9 more than budgeted was received.

• Miscellaneous expenses amounted to €61.9 million in 2021. This was 9% less than budgeted, and it was largely associated with COVID-19. The difference was less than it had been in 2020, when it was 17%. COVID-19 had a particularly heavy impact on travel and accommodation expenses, representation expenses, scholarships, and office and consumption expenses.

• The balance of financial income and expenses was lower, due to the unbudgeted cost of the early repayment of two long-term loans.

As in 2020, COVID-19 affected operations in 2021. The number of enrolled students grew to 20,254 (2020: 19,334). Tilburg University has invested heavily in online instruction. The operating result for 2021 amounted to €4.1 million (2020: -/- €2.0 million). The difference relative to 2020 is not as large when adjusted for special items.

Table 8.2 Result adjusted for special items (in €)

Balance sheet developments in 2021 are presented in the table below:

Table 8.3 Size and composition of the balance (in €1,000)

• Intangible fixed assets include goodwill on the acquisition of the Nimbas Business School by TIAS, which has been amortized on a straight-line basis through 2026.

• Tangible fixed assets include buildings, land, grounds development, inventory, and equipment. In 2021, an investment of €11 million was offset by depreciation of €11.4 million, resulting in a year-end book value of €153.2 million.

• Financial fixed assets included only fixed interest bonds. Due to revaluation and drawdown of one bond, the value decreased by €500,000. All investments of Tilburg University comply with the Ministry of Education, Culture and Science Regulations on Investments, Loans, and Derivatives.

• Liquid assets decreased by €15.5 million to €66.5 million. Cash flow from operational activities was positive at €13.6 million. Due to higher investments in tangible fixed assets, the cash flow from investment activities decreased more than in 2020: a decrease of -/- €12.8 million in 2021, as compared to -/- €9.0 million in 2020. A negative cash flow of €16.3 million remains on balance from financing activities. This is more than last year, due to the early repayment of two long-term loans.

• Provisions decreased on balance by €0.3 million and amounted to €7.8 million. Personnel provisions for reorganization and excess WGA deductibles decreased. Personnel provisions for long-term savings leave, anniversaries, redundancy pay, long-term illness, and the other provisions for asbestos have increased.

• Long-term debt was repaid early in 2021.

• The decrease in current liabilities to €93 million at the end of 2021 was for the most part (€4.7 million) related to the lower tuition fees due to NPO, as reflected in the tuition fees received in advance.

Equity (excluding third-party share) increased to €143 million. Solvency increased in 2021, due in part to the early repayment of long-term loans, and the current ratio decreased to 0.95. Tilburg University closely monitors its positions in relation to the Netherlands Inspectorate of Education’s signaling limits for solvency, current ratio, resilience, profitability, and housing ratio. Tilburg University thus also remained well within the signal boundaries.