We have now finalised the accounts for 2023. the financial performance for Umeå University shows a deficit of SEK 186 million, which I must say is rather positive under the circumstances. I'd like to issue a sincere thank you to the Financial Office and all financial officers at Umeå University who have done a remarkable job in closing the accounts.
It's positive that the University – for the second consecutive year – manages to achieve the target set by the University Board to attempt to make use of available resources each year to conduct high-quality education and research. Another good result is that we are approaching the target of our overall agency capital equalling 9–12 per cent of the costs for the year. Our agency capital has reduced and is now SEK 817 million, which equals 15.3 per cent of the costs for 2023.
Per Ragnarsson, Assistant University Director
Photo: Mattias Pettersson
It's rewarding that both grant income (+3.3 per cent) and income from commissions and fees (+6.5 per cent) have increased compared to the previous year's figures. When it comes to costs, inflation over the last two years has exceeded 8 per cent per year, which has given rise to significant cost increases to our rental agreements, purchase of goods and services, and to the 2023 salary review. Our costs have increased by 6.9 per cent in 2023 compared to the year before.
Reaching the so-called funding cap for the number of full-time equivalents and annual performance equivalents is a challenge. The funding cap is set by the Swedish Government and is the maximum number of undergraduate and Master's level students the University can receive compensation for to educate. The University Management as well as all faculty, the Umeå School of Education and department managements have all been clearly focused on increasing the number of students and student completion without lowering the standards of teaching. Regretfully, we do not reach the funding cap for 2023, but our negative deviation in 2023 (SEK –60 million) compared to 2022 (SEK –71 million) has reduced. This development is very positive in my mind and shows that our efforts are taking us in the right direction. Falling short of the funding cap means that we miss out on those SEK 60 million. Consequently, work to increase the number of students and student completion to bring us closer to the funding cap continues.
All in all, I'm optimistic about Umeå University's final accounts for 2023 under the current circumstances – the high inflation and our challenge to achieve the funding cap, for instance. Naturally, the financial situation differs greatly between faculties, departments and offices. It is critical to adapt your strategy based on the current financial situation and the desired future. For Umeå University overall, and from 2025 onwards, I think it will be important to attempt to reduce the difference between annual income and costs. The idea of that is to achieve a controlled and balanced process without the need to make sudden cutbacks that could cause problems for faculties, departments and offices.