The management report, which includes figures up to and including April, paints a more favourable financial picture than anticipated at the start of the year. UT initially budgeted for a surplus of 5 million euros in 2026. Those expectations have now been exceeded. Based on current figures, the university is on track to end the calendar year with a surplus of 16.7 million euros.
Too cautious
According to the report, the financial deviation does not come as a surprise, unlike the situation at the end of last year. Part of the improved outlook stems from lower personnel costs, due to staff departures and unfilled vacancies, as well as ‘delayed spending’.
However, the most significant factor behind the additional income is a higher-than-expected contribution margin. Faculties had been too cautious in their budgeting.
Almost all faculties are reporting a higher contribution margin than forecast, owing to what the report describes as a ‘cautious approach during the budgeting process’. As a result, the report identifies this issue as ‘an important university-wide point of attention’. Faculties are now being asked to revise their forecasts upwards to ensure a more realistic estimate for the remainder of the year. Traditionally, contribution margins tend to increase sharply during the final months of the year, yet they are already relatively high at this stage.
Finance investigation
In addition, the Finance department has launched an investigation into the ‘project management’ of second- and third-stream funding at UT.
As the report states: ‘The positive forecast should not only be interpreted as an improved financial result, but also as a signal that the quality of project forecasts, estimates of contribution margins, and timely financial steering throughout the year remain important.’
While faculties are outperforming expectations, the university's service departments are facing setbacks. They are struggling to achieve their savings targets. Together, the departments were expected to cut costs by 3 million euros, but are likely to realise savings of no more than 300,000 euros.
Executive Board wants to invest
Overall, the Executive Board sees the university's financial recovery from 2025 continuing this year and believes UT staff are managing costs effectively.
For the time being, acute cost-cutting measures, such as restrictions on vacancies and student assistant positions, will remain in place. However, UT is expected to move towards a ‘new normal’ regarding the deployment of student assistants. The report does not specify what that entails.
According to the Executive Board, the university now has room to make strategic investments. One proposal is to allocate funding to establish a support unit for lifelong learning. This is one of the key priorities in the university's institutional plan. Earlier, rector magnificus Tom Veldkamp described lifelong learning as the university's ‘essential fourth leg under the table’.
