A deviation of roughly 30 million euros. How is that possible?
‘We are back in the black figures after four years of substantial deficits. These figures do not appear out of thin air. The cost-cutting measures are paying off financially, but they do put pressure on the organisation. And our budgets tend to contain a degree of caution, whereas in the past we were sometimes overly ambitious.’
Have ‘we’ all been too cautious in our budgeting?
‘We see that units tended to budget conservatively. The contribution margin, for instance, deviated significantly. We mainly need to learn from this, starting immediately for 2026: ensuring a realistic budget and reliable year-end projections. At the same time, it is also a combination of factors, which makes the result not always easy to explain to the community.’
What kind of factors?
‘Sometimes it is a matter of timing, a shift between financial years. It is a bit technical, but for example, late last year we received government funds for workload reduction and talent policy. We also had to set up an employability fund from our own resources, mandated by the collective labour agreement. Altogether this amounted to nearly 5 million euros in surplus for 2025. But the associated costs will only be incurred in 2026. That creates distortions. It does not explain the entire deviation, but it accounts for part of it.’
Last week’s news prompted reactions, including questions on whether the reorganisations and other budget cuts were necessary…
‘I completely understand that sentiment. And it is not easy to explain, aside from the fact that almost every unit performed slightly better than budgeted. In some cases, there were plans but not the means to execute them, partly due to the budget cuts.
There is, however, a difference between UT‑wide finances and those at unit level. As an institution, we keep in mind that from 2028 onwards we expect to be back in the red figures, that we need to invest heavily to achieve our strategic goals, and that the outside world and political landscape is uncertain – and sometimes extremely volatile. Besides that, there are costs and incomes that may be highly specific or earmarked.’
The term ‘grip’ is often mentioned regarding UT finances. Do you feel the UT currently has that grip?
‘We are working hard to strengthen the financial function. As I said in my interview last autumn: it is a matter of collaboration. As Finance director I can centrally lead the team, but the financial administration in the faculties is hierarchically placed under the managing directors. Gaining more grip is something we must do together. Partly by improving various work processes, but grip also largely comes down to behaviour and culture. That means increasing financial awareness across the board, right down to the hours written on projects. And budgeting realistically, which is the explicit message for this year.’
Which ‘levers’ are currently being pulled?
‘There are some items that come from what we call non‑standard operations. For example, a tax refund the UT receives annually, and interest income. As of 2026, that money will go to the units because we will offset the additional funds against housing costs, among other things. That gives them a bit more room to achieve their goals. Another change in 2026 is that the social charges of employees will be allocated to each unit based on actual costs, rather than via a surcharge percentage. This provides an incentive for units to be more conscious of their actual expenditure.’
To conclude, this 27.5 million euro surplus – where will it go?
‘For the employability fund I mentioned earlier, we will establish a designated reserve. The UT intends to set aside part of the funds to invest in activities linked to the institutional plan. The remainder will go into the general reserves. And regarding the sentiment I mentioned earlier: I understand it extremely well. That is why it is important to use this result carefully, so that we strengthen our financial foundation while maintaining the capacity to invest in the UT’s future.’
