Annual report of the University Board | 2011
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Annual report of the University Board for 2011
Notable Events of the Fiscal Year Continuing to implement its strategy, the University of Oulu proceeded to align its practices with the reforms and process improvements required by the new Universities Act. A review of the strategy was started in the spring of 2011. In the updated version, focus and development areas remained unchanged: Biosciences and Health, Information Technology, Cultural Identity and Interaction, as well as Environment, Natural Resources and Materials. Special development areas within the last area are Steel Research, and Mining and Mineral Engineering. O ther such areas are Business Adminis tr ation and Economics, as well as Research-Based Teacher Training. Measures to carry out the action plans for research and education and to implement strategic development initiatives were launched as planned. Open University, continuing education, employment services, as well as language and communication education were strengthened by bringing them under the umbrella of Extension School. At the same time, student services were concentrated in a new Student Center. To pull together different strands of postgraduate education, the university set up the University of Oulu Graduate School (UniOGS), comprising the focus and development areas and international Master’s programmes. UniOGS started its activities in August 2011, and gained full speed as 2012 rolled around. Essential elements of the reform include achieving a four-year graduation time and lowering the average graduation age. In conjunction with the founding of UniOGS, acceleration measures were launched to sharpen 2
the doctoral thesis writing process. Thanks to these newly instituted PhD support measures, a record number of doctorates, 182 in all, were awarded during the reporting year. This brought the threeyear average (2009—2011) up to the target level, increasing the university’s proportion of all PhDs awarded in Finland from 8.9 % to 9.9 % . Moreover, a total of 1314 Master’s degrees were completed in 2011. As a result, Oulu’s output, relative to all completed Master’s degrees during the threeyear period in Finland, rose from 9.3 % in 2010 to 10.4 % in 2011. In addition, 1177 students earned a Bachelor’s degree. During the year the university has continued the measures of balancing its economy according to plan. One step in this effort, discontinuing the activities of the Kajaani Depar tment of Teacher Education, has entered a transition phase, and all remaining measures will be implemented in 2013. By the end of the 2012—2013 academic year, teacher training will be concentrated in Oulu. This will bring the students within the scope of a multidisciplinar y scientif ic community and its suppor t services. At the same time, foundations for strong pedagogical research will be strengthened. Strategic cooperation has been intensified. Part of this effort is the launching of five innovation centres, a process that started in 2008, and which reached its full scale in 2011. Another example is the concentration of several research institutes operating in the natural resources and environment sector under the roof of the Building for Environmental Sciences. Feedback received from the Finnish Ministry of Education and Culture was largely positive. The
ministry was particularly impressed with the revised strategy and the attendant measures to strengthen education and research and to raise their overall quality, together with the structural development initiatives designed to support these objectives. That these effor ts have borne fruit is evidenced by the number of scientific publications, which continued to grow in 2011. Moreover, the number of completed doctoral degrees experienced a marked upturn, lifting Oulu above the national average for the past three-year period. In addition, Oulu-based research proved highly successful in acquiring competitive research funding. In terms of completed Master’s degree, the target figure was not attained but, relative to other Finnish universities, the position of the university improved distinctly. Also on the increase is the number of foreign students, and Oulu has done well in the FiDiPro programme. Other acclaimed measures include the university’s role in promoting innovation cooperation within the Oulu Region and its intense contacts to leading research institutes. And last but not least, the university has been able to balance its economy.
EDUCATION During the past year, the University of Oulu continued implementing its strategic policy programme to enhance its international scope, improve the fluency of studies and facilitate the acquisition of degrees. At the same time, profound changes have been wrought in educational administration to better delineate responsibilities and streamline common services, based on a one-stop concept. Also ties between continuing education and basic education have been further deepened. Freshman year has a huge impact on student retention, achievement rate and degree completion time. As a result, all degree programmes and subjects were placed under obligation to assign students a personal teacher tutor for at least the freshman year. Training for these teacher tutors has been offered on a regular basis. An audit was conducted on the first-year implementation of each degree programme to identify best practices. Four of the top ranked programmes received an achievement award. At university level, a push is on to adopt curricula based on centrally planned, typical study paths that enable the majority of students to make good progress. Another initiative includes launching student-centred information systems, such as a course por tal, personal timetable and electronic publication of theses and dissertations. To promote the fluency of studies and lengthen the annual study period, a so-called summer school was held in collaboration with the Summer University of Nor thern Ostrobothnia. Offering mainly common arrears courses, the school produced good results in its first year of operation, and its activities will be continued and developed in the years to come. About half of all programmes offer flexible study paths, which entails that having completed a Bachelor’s degree, students have the option to transfer to another programme, even in another field, without complementary studies. These paths were audited in 2011, and the number of students selecting them is expected to increase significantly by 2014. These efforts have improved the university’s prospects of obtaining an ECTS label. Students nearing the end of their studies were able to speed up their progress by suppor t measures, helping the university to substantially increase its proportion of completed Master’s degrees. Although falling short of the target value, 1570, a total of 1314
Master’s degrees were awarded by the University of Oulu in 2011. The university supported the establishment of three new international Master’s programmes as well as the expansion of six existing ones. As a consequence, the number of degrees completed by foreign students is expected to double in 2012. This will inevitably be reflected in the number of postgraduates of foreign origin. All international Master’s programmes were assessed at the end of 2011. Open University, continuing education, employment services, as well as language and communication education were strengthened by bringing them under the umbrella of Extension School. An overarching goal was to increase the working life relevance of the various programmes for both under- and postgraduate students. Simultaneously, a feedback channel was built between working life and education planning. Yet another initiative launched in 2011 involved concentrating student services in a new Student Center. Operating on the one-stop concept, the center makes its processes transparent and provides a framework for efficient staff rotation and training.
R esearch Further progress was made in 2011 in implementing the university’s research action plan along the lines outlined in the strategic funding plan prepared by the Research Council and approved by the Board. Implementing the policy plan is a key aspect of the units’ operational and financing plans as well as budget preparations. University of Oulu Graduate School (UniOGS) that consist of the focus and development areas and international Master’s programmes, started its activities on 1 August 2011, and gained full speed as 2012 rolled around. UniOGS is managed by a dean and three doctoral training committees, who define its policy outline, determine student intake figures, approve education plans and award degrees. In comparison to the earlier, faculty-driven model, UniOGS provides a valuable opportunity to harmonize relevant processes, promote the equal treatment of students and plan doctoral education with a view to obtaining strategic objectives.Achieving a four-year graduation time and lowering graduation age are other essential elements of the reform. UniOGS also serves to facilitate potential later restructuring of schools.
UniOGS has adopted selected unified policies and seeks to standardize student intake, educational aspects, study counselling and legal protection. The school is headed by a Dean, who has the right to award degrees. Granting permission to defend dissertation and selecting Opponent and Custos are the responsibility of the doctoral training committees, each chaired by a PhD-level coordinator. The scientific purviews of the committees (Human Sciences, Technology and Science, as well as Health and Biosciences) do not adhere to faculty organization. Research infrastructures, identif ied by focus and development area, have been allocated strategic funding. Infrastructure development has progressed along the lines laid down in the Infrastructure Report with the aim of bringing them to a nationally and internationally competitive level. For the second year in a row, three MEUR were directed to this effor t. This money will be allocated on the basis of competitive tendering in each focus area and, in accordance with the matching funding principle, the applicants must use their own resources or acquire supplementary funding for at least 25 % of the expenses. To foster research and international contacts in key focus area, 13 so-called recruitment packages were introduced to enable the establishment of junior research groups with an active publishing record. Successful completion of this programme will result in the addition of about 30 research personnel. Of these, 11 will be university researchers and 2 parttime professors, who may use the available funding to employ PhDs or postgraduates in their groups. On top of this, there will be five targeted professor recruitments. To obtain strategic funding for a three-year period, the receiving unit must commit itself to self-financing for a year. Approximately 80 % of the recruited personnel came from outside the University of Oulu, more than half from abroad. Plans were laid to set up a tenure track programme in the course of 2012. This five-year programme, based on the principle of matching funding, follows the framework laid down by Aalto University and ETH Zürich. Activities of the successful Centre for Wireless Communication (CWC) were extended by setting up a research unit, CWC Nippon, in Yokohama, Japan. According to plan, its operation will star t during 2012.
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Research on wireless communications reached a new milestone with the founding of the WiFiUS Institute (Vir tual Institute for Wireless Research between Finland and USA). Operating under the auspices of the Centre for Wireless Communications (CWC), the institute derives its funding from the Academy of Finland, Finnish Funding Agency for Technology & Innovation and National Science Foundation. WiFiUS, coordinated by the University of Oulu, is one three vir tual institutes set up by the National Science Foundation, and the only one in which Finland is involved. In terms of research, the most notable achievement was the selection of the Cell-Extracellular Matrix Research Group as a Centre of Excellence in Research or 2012–2017. In addition, two Oulu-based researchers participated in research conducted by the University of Helsinki under the umbrella of the Finnish Centre of Excellence in Inverse Problems. A breakthrough was made in microelectronics and material physics research as the University of Oulu received an Advanced Grant from the European Research Council.
I nnovat ion act i v i t ies To promote innovation activities, the University of Oulu has entered into strategic par tnerships with representatives of business and economic life, VTT Technical Research Centre of Finland and other research institutes, the City of Oulu and the Oulu University of Applied Science. Members of the formed Innovation Alliance are committed to setting up suppor t structures for innovationoriented cooperation, to create and strengthen jointly defined innovation centers and to enhance their international scope. They will also provide the necessary infrastructure and other basic facilities and services. Resourcing will be provided on the basis of cooperation agreements among the parties. Current innovation centres are active in the following fields: internet research (Center for Internet Excellence CIE), printable electronics (Center for Printed Intelligence PrintoCent) and international business (Martti Ahtisaari Institute MAI). The university aims to utilize the commercial potential of research that is likely to provide economic gain both to the researcher and the university. In view of this, the university regards the productive use of research findings and professional competence as an important merit. Having provided commercial
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application services to its researchers since 1999, the university concentrates these efforts on its focus areas. Utilization of research findings offers a number of benefits to research, not least as a source of supplementary funding. In terms of development and commercialization of inventions, the university’s project flow is in good shape. During the reporting year, 53 invention disclosures were filed at the university, 50 of them on innovations and 3 on computer programmes. This figure is about par for the course, as the number has shifted between 50 and 80 in the past few years. Of the filed inventions, 20 progressed to an evaluation of commercial potential via the TULI programme of the Finnish Funding Agency for Technology and Innovation (Tekes). A majority of the inventions were created through projects in which their protection and commercial promotion came within the purview of the collaboration partners. Six priority patent applications and one utility model application were made under the name of the university. On average, three research-based spin-off companies are established each year. In addition, 3–4 companies are established with no direct connection to research. In accordance with the new strategy University of Oulu may be part owner in the established spin-off companies. At the end of 2011, the university held 21 patent families consisting of priority patents or patents pending. In addition, the university has 68 licencing, option, transfer or technology sale contracts. A total of 6 new contracts were signed in 2011. One spin-off company, based on ideas hatched in the Faculty of Technology, was established during the year. In September, the university launched the so-called IKK Developing Innovation Abilities project. Its main aim is to accelerate the processing of innovations and business ideas to enable an efficient creation and development of spin-off companies.
Fundr a isi ng Completing its first fundraising campaign on 30 June 2011, the University of Oulu collected 11.4 MEUR for the benefit science and the future of Northern Finland. As private capital raised by the university was matched by government co-financing by a factor of 2.5, another 23.1 MEUR was put into the coffers. The matching fund period ended on 30 June 2011.
Donations received after the campaign closed brought in 68,200 euro. Thus, the total value of assets held in the University Fund amounted to 34.6 MEUR at the end of the year. Most of these assets are invested in funds, bonds and shares. To ensure the continuity of fundraising, it was incorporated into the university organization as a function of external relations. In order to develop closer links to all donors, a donator’s club was established by the university.
Pr emises 2011 was the second year of operation of University Properties of Finland Ltd. During the year, the company structure was finalized, and jointly negotiated policies and contractual practices were adopted. At the end of the year, leased premises covered an aggregate area of about 226 000 m 2 . Lease contracts were terminated for premises (4000 m2 ) located in Kajaani and in Kastelli Research Center. An environmental survey was conducted on the premises located in the Linnanmaa and Kontinkangas campus areas. Renovations or alterations to property or facilities rented by the university affected an area of about 9000 m2 . Renovation work was conducted in the Faculty of Medicine, Inorganic Chemistry Laboratory, Systems and Control Engineering Laborator y, Department of Information Processing Science and Department of Mathematical Sciences. Alteration work was carried out in the Geo- and Water Engineering Laboratory and Student Center. Still undergoing alteration work is the Lynet Laboratory of the Research Consortium for Natural Resources and the Environment. A number of subtenants moved under the roof of Tietotalo 2, including MTT Agricultural Research Finland, Game and Fisheries Research Institute and Finnish Environment Institute. In consequence, the building was renamed Building of Environmental Sciences. Campus improvement was initiated and implemented in several other places in cooperation with University Proper ties of Finland Ltd. Thus, the university’s working, learning and research environments are constantly evolving to stay in stride with the world around us. Campus improvement was begun in Linnanmaa by conducting an initial survey during the autumn term. In addition, an indoor air quality and renovation project carried out in the Department of Biology piloted the so-called workplace model in planning.
Since campus improvements tend to raise the rent, the adverse effect must be counterbalanced by enhanced functionality and efficiency of use of space.
Economy and i nv estments Since the outset of 2010, Finnish universities have been responsible for maintaining their liquidity and f inancial solvency. With a gross income of 237.3 million euro (226.4 MEUR in 2010) and a profit of 3.9 MEUR (1.9 MEUR), the economy of the university was well balanced in 2011. Solvency remained strong, as the university’s equity ratio rose from 79.1 % to 83.1 % . Also liquidity stayed at good level. Core funding for 2011, agreed-on between the University of Oulu and the Ministry of Education and Culture, was 144.9 MEUR (139.0 MEUR). On top this, 4.9 MEUR was added to equity in the form liquidity funding. In addition, the university also received 10.9 MEUR (10.1 MEUR) from the state on the basis of the so-called VAT compensation agreement. Supplementary and amending budget brought in another 0.1 MEUR in Vat compensation and 0.9 MEUR were added to long-term receivables. In the profit and loss statement, VAT was managed using the gross method, whereas the net method was applied to the calculation of VAT on fixed assets. In 2012, the net method will be applied to the profit and loss statement. Income from ordinary operations was 80.4 MEUR (76.5 MEUR), consisting of income of grants 66.5 MEUR (63.1 MEUR), income from business activities of 7.8 MEUR (7.2 MEUR) and other income of 6.2 MEUR (6.1 MEUR). Received subsidies include compensations paid to teacher training school, amounting to 4.9 MEUR (4.9 MEUR). Competitive research funding totalled 71.8 MEUR (71.7 MEUR), corresponding to 30.3 % of total funding. This funding came chiefly from the Finnish Funding Agency for Technology and Innovation, Academy of Finland and EU project funding. Expenses from the ordinary operatios for the fiscal year were 231.8 MEUR (224.9 MEUR), of which personnel expenses accounted for 145.8 MEUR (143.0 MEUR), corresponding to 62.9 % of overall expenditure (63.6 The cost impact of the contractual pay increase of 2.1 % in 2011 (general increase of 1.2 % and sectorial allowance of 0.9 %) and general pay increase in November 2010 (0.9 %) had a major
impact in the personnel expenses in 2011. Another contributing factor was the performance appraisal assessment that was performed in accordance with the salary system. The average number of employees on the university payroll in 2011 was 2980 (3045 in 2010). Rent expenses totalled 34.3 MEUR (34.9 MEUR), which is 14.8 % of operational expenditure. Deficit from ordinary operatios was -151.4 MEUR (-148.4 MEUR), which was covered by received government grants (core funding and VAT compensation). The balance sheet value of University of Oulu totalled 176.5 MEUR (135.1 MEUR). Fixed assets amounted to 69.9 MEUR and current assets to 106.7 MEUR (67.8 MEUR). The shares of University Properties of Finland Ltd and funds collected by the university’s first ever fundraising campaign, including government co-financing account for most of the total balance sheet value. Transferring the assets of the fundraising campaign to equity increased the balance sheet total by 26.4 MEUR in 2011. At the end of the year, the total equity amounted to 134.8 MEUR (98.9 MEUR), of which shares of University Properties equalled 54.2 MEUR and assets acquired via fundraising 34.6 MEUR. Shor t-term liabilities amounted to 41.2 MEUR (36.2 MEUR) and obligatory reserves to 0.5 MEUR (0.0 MEUR).
Management of the investment portfolio was outsourced to three financial institutions with full power of attorney. The institutions were selected on the basis of competitive tendering. The university’s investment policy, endorsed by the board on 17 March 2011, is geared to producing a good total return in the long run. In compliance with this policy, investments were diversified in terms of instruments and geographical areas. The book value of the portfolio is 63.9 MEUR (32.1 MEUR), of which fundraising accounted for 34.6 MEUR. At the minimum the goal is to preserve the real value of the outsourced investment portfolio. The market value of the investment portfolio amounted to 65.0 MEUR. At the balance sheet date, investments to shares accounted for 10.4 % of market value, investment funds 55.1 % , and bonds and commercial papers 34.5 %. In addition, the balance sheet included assets held in tied-up funds for value of 3.3 MEUR. Moreover, there were cash deposits on bank accounts for the worth of 17.8 MEUR. As stated in the investments policy, these assets must be invested in a safe and productive way and only for a year at a time.
Total investments recorded in the balance sheet were 10.5 MEUR (MEUR 59.2). Investments in tangible and intangible assets amounted to 10.5 MEUR (MEUR 3.8), while placements in investments were 0.0 MEUR (MEUR 55). A total of 4.9 MEUR (MEUR 1.0) was received in investment subsidies. University of Oulu currently owns 10.4 % of the company stock of University Properties of Finland Ltd. A notable amount of investments associated with research and education infrastructures were transferred from 2011 to 2012. The objective of the investment policy of University of Oulu is to gain a good total return in the long run at an acceptable risk level. In 2011, investment and financial activities generated a net profit of -0.9 MEUR (0.8 MEUR), which includes unrealized losses wor th 3.7 MEUR (with tied-up funds accounting for 0.1 MEUR). Dividend income included a divided of 1.1 MEUR from University Properties of Finland Ltd. When excluding unrealized losses on financial assets, investment and financial activities produced an overall profit of 2.8 MEUR.
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For ecast of futur e per for m ance
R isk m anagement
Entering the agreement negotiations of spring 2012 will be much easier for the university than the previous round two years earlier. To keep momentum, initiatives must be continued to strengthen research performance and raise the university’s profile as an internationally recognized scientific community. Commitment to improve graduation rates and study processes must be sustained, publications activities must be intensified and all functions must have a clearer international focus.
Risk management is an integral part of the university’s management system. Risk management is geared toward ensuring that risks that may affect the activities of the university will be identified, assessed and monitored. The management system, on the other hand, is aimed at enhancing the university’s capacity to carry out its core functions, to profile itself in the international higher education sector, to implement the chosen strategy and realize the goals defined therein and to protect students, personnel and property from risks and hazards. Risk management ensures continuous operation at a high standard and in a cost-effective manner. To that end, it must also take account of the most important external service providers.
Success in carrying out the university’s core functions is the single most important factor in determining funding for the next few years. The main indicators are the obtained results both in education and research relative to those of other universities and the objectives set by the Ministry of Education and Culture. Together, the ministry and university negotiate and agree on qualitative and quantitative targets to be achieved within each contract period. The current funding model for universities, with well-known determinants of core funding level, will be in use until the end of 2012. However, the Ministry of Education and Culture has star ted making preparations for the introduction of a new model, which it is expected to roll out in 2012. This new model offers both opportunities and threats, depending on possible changes being considered. Apar t from performance, core funding is also affected by the national economic situation. Thus, distribution of the austerity measures proposed for 2013 will be pivotal to university financing. If the government seeks to balance the economy by relying mainly on cuts, it poses an imminent danger to the core funding level over the next few years. Prospects for 2012 look fairly promising with the stability and performance of the university remaining at a good level. Nevertheless, domestic and international competition will stiffen for funding, students, personnel, resources and visibility.
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Risk management and exploitation of opportunities are conducted in accordance with the university’s governing principles, development initiatives and strategy-based policy plans. Its goal is to guarantee that planning, decision making and management processes are based on sufficient and reliable information. For efficient operation, the board, rector, faculty councils, deans and other unit heads must have access to up-to-date information on risks and opportunities relating to education and research. Supervision refers to monitoring of activities and risks, conducted by the university board, rector, research and education councils, faculty councils, deans, research and education committees, unit heads and the boards and heads of separate departments, which is used to coordinate personnel and activities toward goals and approved practices. The aforementioned actors are also charged with the responsibility of organizing adequate risk management. Risks, whether they are internal or external, may involve research and education activities, decision making, economy, funding, students, personnel, property or interest groups. They may hinder the implementation of strategy, legitimacy of activities or good governance, adherence to good scientific practice, productivity, appropriate management of assets and property, safety and health of students and personnel, as well as the adequacy or reliability of management information.
Strategic risks: l status of university in the operating environment (reputation, collaboration relationships, size of age groups, attractiveness) l dependence on externally allocated funding l level of national infrastructure funding l changes in student and researcher populations l changes in funding sources and in financing conditions and criteria l future funding model of the Ministry of Education and Culture l state economy and core funding allocated to universities Operational risks: l performance in education and research relative to other universities and set targets l dependence on professional competence of personnel l compensatory recruitment to replace retiring personnel l funding risks Damage risks: l protection of property and personnel through insurance l lesser has insurance for university premises Internal supervision and comprehensive risk management are an integral part of the university’s management system, which promotes the successful performance of core tasks, the management of strategic risks and the systematic monitoring and evaluation of performance and productivity. An internal audit was conducted at the University of Oulu in 2011 by a leading CPFA corporation, Oy Audiator Ab. Specific emphasis was placed on auditing the implementation of the strategy and the associated policy programmes, the faculties’ profile management effor ts, their success in acquiring competitive research funding and their performance level.
Personnel
Av e r ag e c h a n g e i n p e r s o n n e l n u m b e r s f ro m 2 010 t o 2 011
On average, the university employed 2980 persons (3045 in 2009) in 2011, and they put in a total of 2790 person years of work (2868 in 2009). These figures represent a reduction of 65 staff and about 78 person years of effort from the previous year. The person year count includes hourly instruction, which amounted to 77 person years (74 in 2010).
31.12.2011 31.12.2010
Pe r s on y e a r s of wor k by pe r s on n e l grou p 2007
2008 2009 2010
2011
Teaching and research personnel 1536 1562 1577 1617 1588 1406 1327 1292 1141 1095 Other personnel 116 113 115 110 107 Teacher training schools 3058 3002 2984 2868 2790 Total To balance the economy, the board decided on necessary measures in 2010, followed by co-operation negotiations on the necessary structural and other changes. Work to carry out these measures continued in 2011. The impact of the undertaken action on human resources was most acutely felt in Kajaani-based units of the Faculty of Education and in Administrative Ser vices. Hence, 7 teachers from the Kajaani Department of Teacher Education moved to Oulu during the year. As for administrative services, restructuring efforts include the transformation of IT Administration Services into a more centralized mode of operation and the outsourcing of the university’s telephone exchange to an ex ternal service provider. Measures to balance the economy will continue to affect personnel in years to come. However, it is expected that the number of personnel will settle at roughly the current level in the near future. Changes in personnel structure will be effected to direct resources on the university’s focus and development areas and its core functions. Reductions during the past couple of years have mainly concerned support staff, while the number of teaching and research personnel has remained at previous years’ level. Potential future reductions are also likely to affect mainly support staff (including laboratory personnel). A slight increase was noted in the propor tion of fixed-term employees, which increased to 60.7 % from 59.8 % in 2010. Together with the units, Human Resources reviewed the number of f ixed-term employees in each unit, as well as the rationale behind their contracts with a view to making more
Change
Change %
Faculty of Humanities
141
142
-1
-1 %
Faculty of Education
265
267
-2
-1 %
Faculty of Science
496
531
-35
-7 %
Faculty of Medicine
453
452
1
0%
94
87
7
8%
686
719
-33
-5 %
Total faculties
2135
2198
-63
-3 %
Separate departments
527
530
-3
-1 %
Administrative Services
207
210
-2
-1 %
Service points
111
106
4
4%
2980
3045
-65
-2 %
Faculty of Economics and Business Administration Faculty of Technology
Total
positions permanent. As a result, 83 employees, 61 suppor t staff and 22 teaching staff had their employment relationships converted to permanent ones. This contrasts with the corresponding figure for 2010, which was 33. However, effects of these changes will only become visible in statistics for 2012. This process will be continued in the years to come. Of all personnel, women constituted 48.2 % , with the lowest percentage found among professors and IT staff. A Master’s degree was held by 61.8 % (62.4 %) of employees and a Doctoral degree by 29.6 % (29.0 %).
for development was management, which included strategy awareness and communication. On the positive side, the role and behaviour of immediate supervisors was positively valued, as well as work content and demand level. All units have reviewed the results of the survey and will take appropriate measures to improve wellbeing. Funding to these initiatives will be channelled via the wellbeing fund of Varma Mutual Pension Insurance Company.
The average age of personnel was 43.0 years. In the course of the reporting year, 48 staff retired, of whom 2 retired on disability pension (a decrease of 10 persons from the previous year). About 160 employees will reach retirement age by the end of 2016. Despite the profound changes of the past year, sick absences, amounting to 3.9 days/person year (3.8), did not increase.
Transformation of the university’s employment relationship structure and the new collective labour agreement warranted the development of guidelines and provision of training particularly for unit heads and human resources staff. Guidelines for HR management were updated and translated into English. Services for foreign staff were improved by strengthening international service resources and by creating a common international affairs team involving all the service points. At the turn of the year, international staff numbered 252 (216).
In autumn 2011, a survey on wellbeing at work was conducted simultaneously at all Finnish universities. Results of this survey turned out to be practically identical across the nation. A specific area with room
In the autumn of 2011, the second collective agreement for universities was concluded in keeping with the national framework agreement. Included in the previous agreement, the job demand component 7
came into use in the autumn. The university, for its part, introduced an incentive bonus system with the intension of rewarding individuals or groups for achieving particularly good results. Specific systems with distinct criteria were devised for teaching and research personnel and for other staff. Bonuses of this type will be paid out for the first time in spring 2012. Reorganizing the task structure of research and teaching personnel continued all through the year. A working group on research careers defined criteria for the different career levels and made plans to pilot a new tenure track model. This model, approved by the board in June 2011, forms the framework for the HR plans of the departments. Piloting the tenure track systems, financed by strategic funds, begins under guidance of the university’s Research Council. In the same vein, the Equal Opportunities Working Group completed the process of revising the university’s equal opportunities programme, which the Rector then approved. Applying the measures proposed in the plan started immediately across board. Another major initiative undertaken during the year was salary benchmarking, the results of which indicate that salary differences between men and women on the university payroll are very narrow, the largest being found in the teacher training schools. Completed in 2010, the university’s wellbeing plan emphasizes management and wellbeing of work community. One practical initiative of the plan that is currently being implemented is the early intervention model. To facilitate the introduction of the model, training, targeted at heads of units, has been provided in collaboration with occupational health services. A solid foundation for practical measures to improve wellbeing at work was provided by funding offered by Varma Mutual Pension Insurance Company. This funding has been used to offer wellbeing-oriented training to unit heads, as well as consultation and training for process development. All in all, about 250 staff participated in this training in 2011, while a total of 426 unit heads took part in all types of training events. The number and structure of personnel will be described in more detail in the personnel report.
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Boar d and audi tors Chairman of the Board during the financial year 2011 was Hans Söderlund and board members were Pekka Erkkilä, Lea Kauppi, Leena Mör ttinen, Erkki Ormala, Sanna Järvelä, Markku Mäkivuoti, Markku Savolainen, Milja Seppälä and Raija Ukkola. PricewaterhouseCoopers Oy served as the auditor, with certified public accountants Pertti Tarvainen and Outi Kirvesoja as the auditors in charge.
Proposal of the Uni v ersi t y Boar d concer ni ng the r esult of the fiscal year The board proposes that the result of the fiscal year, amounting to 3,879,866.25 euro, be recorded in the balance sheet as unrestricted equity under the retained earnings from previous fiscal years.
Income Statement Ordinary operations Income Income from grants Income from business activities Other income Expenses Personnel expenses Depreciations Other expenses Surplus/deficit from ordinary operations FUNDRAISING Income Donations Expenses Other fundraising expenses Surplus/deficit from fundraising INVESTMENT AND FINANCIAL ACTIVITIES Income Dividend income Interest income Profit on sale of investment Other income Expenses Interest expences Unrealized losses from investments Other expences Investment and financing activities total GENERAL GRANTS Government funding as per Universities Act Other general subsidies RESULT OF THE FINANCIAL YEAR APPROPRIATION Adjustment in tied-up funds Other direct taxes Net Profit (loss) for financial year
1.1.-31.12.2011 66 456 159,85 7 794 343,37 6 155 298,57 -145 774 369,95 -3 655 270,28 -82 362 062,34 -151 385 900,78 68 194,93 -67 991,62 203,31
Supplementary funding (expenditure-based), MEUR 2009 2010 2011 Supplementary funding 67,3 69,1 72,3 29,8 30,7 31,2 %, total expenditure National competitive research funding, MEUR 2009 2010 2011 Academy of Finland 14,6 17,5 18,6 Tekes 11,6 14,0 13,0 International competitive research funding, MEUR 2009 2010 2011 Framework programmes of the EU 3,7 3,9 4,1 Other international funding 2,4 1,9 1,4
1 299 304,75 1 157 560,60 1 368 150,21 41 531,62 -100,15 -3 694 063,40 -1 027 652,90 -855 269,27 144 856 000,00 12 040 633,45 4 655 666,71 -766 137,37 -9 663,09 3 879 866,25
Realized outcomes of quantitative targets 2008–2011
Doctoral degrees Master’s degrees Bachelor’s degrees Foreign degree students Pupils in training schools Amount of tutored teacher training, credits
2008
2009
2010
123 1932 1246 331 1074 6337
154 1108 875 419 1064 5546
141 1452 1062 568 1045 5780
avg.
20082010 139 1497 1061 439 1061 5888
2011 182 1314 1177 662 1006 5566
target
20102012 158 1570 1280 600 1120 6100
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BALANCE sheet
31.12.2011
Assets
Distribution of operating expenses (MEUR)
FIXED ASSETS Intangible assets Intangible rights
3%
78 383,57
Other long-term procurements
297 875,55
Advance payments
336 097,84
712 356,96
5%
15 %
Tangible assets Machinery and equipment Other tangible assets Advance payments and incomplete procurements
10 058 151,57
6%
23 828,50 764 053,48
10 846 033,55
5% 2%
Investments Shares in associated companies
54 992 875,18
Assets in tied-up funds
54 992 875,18
Personnel expenses Depreciations Materials and commodities Purchase of services Rental expenses Travel expenses Other expenses
145,8 3,7 13,3 14,4 34,3 6,4 13,9
231,8
64 %
3 303 050,45
CURRENT ASSETS
Distribution of revenue (MEUR)
Inventories Other inventories
13 732 702,29
13 732 702,29
Receivables Other receivables
Core funding 144,9 Compensation by home municipality to other service provider 4,9 Other general subsidies 12,0 Supplementary funding 75,5
32 %
Long-term receivables 881 687,45
881 687,45
Current receivables Sales receivables Other receivables Prepaid expenses and accrued income
6 506 111,90 480 290,70 3 333 396,31
5%
Securities Other stocks and holdings Other securities
10 319 798,91
2%
6 563 407,35 57 331 564,73
Cash and bank
61 %
63 894 972,08 17 778 298,43
Total assets
237,3
Number of personnel
176 461 775,30
Equity and liabilities EQUITY Basic capital
88 496 469,90
Tied-up funds
3 360 244,85
unrestricted reserves
1 927 586,34
2011 2010
Other equity Operating equity
35 268 582,32
Retained earnings
1847 619,61
Net profit (loss) for financial year
3 879 866,25
Total equity
2009 40 996 068,18 134 780 369,27
2008
OBLIGATORY RESERVES Other provisions
510 000,00
510 000,00
134,90
134,90
2007
LIABILITIES Liabilities in tied-up funds
Liabilities in tied-up funds
Short-term liabilities Advances received
14 327 304,84
Accounts payable
4 482 308,71
Other liabilities
5 328 803,03
Accrued expenses Total equity and liabilities
10
17 032 854,55
Number of personnel (total) 31.12 Number of personnel (p-y) 41 171 271,13 176 461 775,30
Number of personnel (avg)
CASH FLOW STATEMENT 1.1.-31.12.2011 Operational cash flow Cash flow from primary operations Operating deficit Depreciation Change in operating capital Change in current assets Change in interest-free receivables Change in interest-free short-term liabilities Adjustment for other items Cash flow from primary operations Fundraising cash flow Extraordinary items (+/-) Received subsidies Direct taxes paid Cash flow from tied-up funds Operational cash flow (A) Cash flow from investments Investments in tangible and intangible assets Received investment subsidies Capital gains on intangible and tangible assets Placements in investments Capital gains from other investments Other net income from investments Loans approved Refund of loans receivable Money flow from investments in tied-up funds Cash flow from investments (B) Cash flow from financing Increases in equity Change in stock of loans Short-term loans drawn Repayment of short-term loans Long-term loans drawn Repayment of long-term loans Income from financing Interest and other financial expenses Cash flow from financing in tied-up funds Cash flow from financing (C) Change in liquid assets (A+B+C) increase (+) / decrease (-) Liquid assets at start of fiscal year Liquid assets at end of fiscal year Cash and cash equivalents in tied-up funds at start of fiscal year Cash and cash equivalents in tied-up funds at end of fiscal year Change in liquid assets
Personnel expenses
-151 385 901 3 655 270 894 301 3 374 424 4 338 423 -492 055 -139 615 539 203 0 156 896 633 0 766 137 18 047 435 -10 494 854 4 867 078 60 077 -35 542 605 1 104 717
Personnel expenses €1000 Personnel expenses €/p-y
-40 005 587 31 312 380
2 761 831 -1 027 753 -628 468 32 417 989 10 459 837 7 371 277 17 778 298 10 407 021 99 582 46 766 52 816 10 459 837
Financial performance measures Operating income/ Operating expenses, % Operating profit (without depreciations)/ depreciations, % Internal financing of investments, % Equity ratio, % Return on equity, % Quick ratio Current ratio Cash adequacy, days
102,4 % 250,8 % 162,9 % 83,1 % 2,9 % 2,02 2,61 127
Formula for calculation of indicators:
Operating income/ operating expenses, % = 100 * (core funding + subsidies + operating revenue + other revenue)/ operating expenditure Operating profit / depreciations, % = 100 * operating profit (without depreciations)/ depreciations Internal financing of investments, % = 100 * operating profit (without depreciations)/ investment acquisition cost Equity ratio, % = 100 * total assets/ (total assets – advances received) Return on equity, % = 100 * profit or loss for the financial year/ total equity Quick ratio = liquid assets/ current liabilities Current ratio = (liquid assets + inventories)/ current liabilities Cash adequacy ratio, days = 365 * cash and cash equivalents 31.12/ payments made in the financial period
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