8.1 Outline financial statements

These explanatory notes concern the consolidated financial statements of the Tilburg University Foundation (Stichting Katholieke Universiteit Brabant) and the related parties: the University Fund Foundation, TIAS Business School BV, and TiU-Holding BV. The operating results for 2022are presented below and compared to the previous year's budget and realization.

Table 8.1 The operating result in outline (in €1,000)

Tilburg University closed 2022 with a consolidated surplus of €6.3 million against -/- €3.3 million budgeted.

The main differences between the budget and financial statements are explained below.

Government contribution

• Tilburg University received additional compensation in 2022 through the government contribution for loss of revenues following the introduction of the halving the tuition fees for first-year Bachelor’s students (€3.0 million). This after external research showed that Tilburg University had been insufficiently compensated due to its growth in recent years.

• In July 2022, the Administrative Agreement was concluded between universities and the OCW, which resulted in an additional government contribution. Tilburg University received funds for the Sector Plans and starter and incentive grants as a result. The allocation of Sector Plan funds and starter and incentive grants is not normative, which means that the unspent portion of these revenues may be placed on the balance sheet and, therefore, has no impact on the result. At the end of 2022, €11.3 million of the government contribution received has been placed on the balance sheet.

Tuition fees

• Revenues from tuition fees are almost in line with the budget. The limited plus on this item is related to higher revenues from institutional tuition fees, due to a higher intake of non-EEA students than anticipated in the budget.

Revenues on behalf of third parties

• Schools indicate that the tight labor market also affects externally funded research projects. As a result, projects start later or are delayed. This translates into lower revenues.

Personnel expenses

• The picture in terms of personnel expenses is mixed. On the one hand, there is an increase in expenses as a result of the Collective Labour Agreement (CLA) concluded. On the other hand, Schools and Divisions are facing outflow and vacancies that have been open longer and/or are more difficult to fill. On balance, the academic staff workforce increased by 55 FTEs in 2022. In 2021, it was 18 FTEs on balance. Of the 195 academic staff vacancies in 2022, 44 were not (yet) filled; by comparison, in 2021, 168 academic staff vacancies were posted of which 20 could not be filled. This confirms the observation that the labor market has become tighter. At an overall level, this translates into lower personnel expenses than budgeted.

Depreciation

• Depreciation charges are lower than budgeted. This is mainly due to lower investment amounts for recently activated projects and delays in some ongoing projects, as a result of which they were no longer activated in 2022 and no depreciation charges were realized for these.

Other charges

• Compared to the budget, other chargers were lower. The not fully realized utilization of the Decentralized Employment Conditions Funding for at Board Positions is part of the explanation. Completion of part of the budgeted spending was to follow after adoption of the new Strategy and was ultimately not adopted by the Labor Representation Board until July 2022, so underspending could not be avoided. Underspending in the realization of the strategic projects is additionally part of the explanation.

The operating result for 2022 arrived at a surplus of €6.3 million (2021: €4.1 million). Adjusted for special items, the result is €3.3 million, which puts the positive difference from the budget in line with the differences in previous years.

Table 8.2 Results adjusted for special items (in €)

The following table shows the balance sheet development in 2022:

Table 8.3 Size and composition of the balance sheet (amounts x €1,000)

• Intangible fixed assets relate to goodwill on TIAS's acquisition of Nimbas Business School; this will be depreciated on a straight-line basis up to and including 2026. The goodwill is assessed annually through an impairment test.

• Tangible fixed assets relate to buildings, grounds, site furnishings, and inventory and equipment. In 2022, an investment of €13.7 million is offset by depreciation of €14.7 million, resulting in a book value of €152.3 million at year-end.

• The financial fixed assets concern only fixed-interest bonds. Due to revaluation, the value decreased by €38K. No bonds were purchased or sold. All Tilburg University investments comply with the OCW’s Investment, Borrowing, and Derivatives Regulations.

• Liquid assets increased by €31.6 million to €98.1 million partly as a result of funds received under the Administrative Agreement, therefore, cash flow from operating activities was €45 million positive. Due to higher investments in tangible fixed assets, cash flow from investing activities decreased slightly more than in 2021 , by -/- €13.3 million in 2022 compared to -/- €12.8 million in 2021. Cash flow from financing activities is 0 due to no more long-term debt in 2022.

• Provisions decreased on balance by €0.1 million and amounted to €7.7 million. The personnel provisions for reorganization and severance pay decreased and the WGA self-insurance, anniversaries, and long-term illness increased. The provision for long-term savings leave has remained virtually unchanged. The other provision for asbestos also remained at the 2021 level.

• The increase in current liabilities at the end of 2022 to €118 million is related to unspent funds from the Administrative Agreement (€8 million). These funds have not been normatively allocated and have been placed on the balance sheet as revenues received in advance. These funds are, therefore, available for spending in later years. In addition, tuition fees received in advance increased by €9.4 million on the balance sheet.

Equity (excluding third-party share) increased to €150 million. Solvency decreased slightly in 2022 due to the increase in amounts received in advance on the balance sheet, and the current ratio improved to 1.03 due mainly to liquidity development. Tilburg University closely monitors its positions relative to the Education Inspectorate signal value limits regarding solvency, current ratio, resilience, profitability, and housing ratio.