Tampere University’s financial statements 2023: Continued growth in competitive research funding, major increase in graduate numbers
Important events in 2023 included strategy update early in the year, and the passing of the quality assurance system audit conducted by the Finnish Education Evaluation Centre (FINEEC). Keijo Hämäläinen took up his appointment as the new President in June. Other key appointments to academic leadership roles, effective in January 2024, were also announced in late 2023.
Strong growth in competitive research funding
The upward trajectory in competitive research funding continued in 2023. The number of research grants awarded through international competition grew by nearly 20% from the previous year. The amount of funding received from the EU’s framework programmes has doubled in the years following the establishment of the University. Grants awarded by national research funding bodies, especially Business Finland and Finnish foundations, also increased, with awards growing by more than 30% from the previous year.
“The challenges of Finland’s public finances create uncertainty for the University’s financial outlook and further highlights the importance of competitive research funding. The doctoral education pilot launched in 2024 will increase the amount of funding for research, development and innovation activities. It is important we succeed in this pilot,” President Keijo Hämäläinen says.
At the end of 2023, there were 11 projects funded by the European Research Council (ERC) underway at Tampere University. The University coordinated four Centres of Excellence funded by the Research Council of Finland and was a partner in further six. The University coordinated one Finnish Flagship Programme funded by the Research Council of Finland (Flagship on Photonics Research and Innovation PREIN) and participated in four other flagships, two of which were selected in 2023.
The total number of peer-reviewed scientific publications has remained steady, while the quality of published research outputs has increased. Finland has a three-tier Publication Forum system (JUFO) for ranking publication channels based on their quality, and in 2023 the University saw a 5% increase in the number of articles that appeared in channels assigned to the highest two JUFO levels. The share of international co-authored articles that appeared in peer-reviewed publication channels assigned to the highest two JUFO levels grew by 7% from the previous year. The proportion of open-access publications grew to 84%.
Still catching up to do in graduate numbers and the share of students who graduate on time
The number of applicants applying for degree programmes as their first choice remained stable and totalled 11,843. The number of applicants applying for English-language BSc or MSc programmes more than doubled compared to 2022.
A total of 4,408 degrees were completed nine fields of study, 208 of which were doctoral degrees. Degree numbers increased at every award level. By far the largest increase was recorded in the number of master’s degrees. The highest growth rate of degree conferrals was in computer sciences and communications engineering, and in engineering. In 2023, 37% of all degrees were completed within the normative timeframe, which is slightly below the 40% target set by the Ministry of Education and Culture.
“We are pleased with the increase in the number of degrees, but we, like all the universities in Finland, still have work to do if we are to achieve the 50% national target for people going into higher education. It is also important to support timely graduation, and not only because universities have a financial incentive to do so,” Hämäläinen says.
Based on the number of degrees completed in different fields of study, the University’s education profile has remained unchanged. The largest number of master’s degrees was completed in engineering (750) and social sciences (568). 245 master’s degrees were completed in computer sciences and communications engineering, and 213 in medicine and health and well-being sciences.
International graduates accounted for 13.5% of all master’s degree recipients and almost one-third of all doctoral degree recipients.
Increase in operating costs due to growth in competitive research grants and high inflation
Funding received from the government totalled €204.3 million, which is €9.2 million more than in 2022. Funding from the government increased because of a rise in the university index and additional funding from the Ministry of Education and Culture for strategic development. The growth of competitive research funding continued. The University’s total income in the financial year 2023 was €354.1 million, which is €8.9 million more than in 2022.
Operating expenses amounted to €364.7 million, an increase of €13.8 million from the previous year. Personnel expenses increased by €10.4 million to €233.2 million. This increase is attributed to the growth in competitive research grants and subsequent growth in personnel. Payroll costs were further increased by across-the-board increases and an additional lump-sum payment as set out in the collective agreement for Finnish universities. As travel bounced back from the pandemic slump, travel expenses increased by €2.9 million from the previous year. Rental costs grew €1.7 million from 2022 following an index increase in rental prices.
The University reported an operating deficit of €10.6 million for 2023, or €14.1 million when adjusted with non-recurring items which in 2023 included one-time compensatory damages. The operating results, when adjusted with the use of revenue generated by the capital, show a deficit of €7.5 million in 2023.
“The University’s operating deficit adjusted with non-recurring items was larger than what we originally budgeted for. Inflation remained high and expenses grew faster than revenue. The University is working to address the deficit and break even in 2024. Closing the deficit requires that the university community is committed to the strategy and working towards our common goals,” President Hämäläinen says.
The results for the financial year show a surplus of €36.8 million when investment income is factored in. What also improves the results is the €3.5 million non-recurring compensatory damages and the €2.7 million raised through fundraising. The combined results from investments and financial activities stand at €45.3 million. Investments generated an annual return of 10.4%. Since the new Tampere University was established on 1 January 2019, the investment portfolio has generated an average return of 7.4% a year (annualised nominal yield).
The corporate group’s total income in the financial year was €428.6 million, and expenses totalled €436.6 million. The corporate group reported an operating deficit of €7.6 million in 2023. When investments and financial activities are factored in, the corporate group shows a surplus of €41.2 million in 2023. The consolidated financial statements of Tampere University Foundation include the results of its subsidiaries, namely Tampere University of Applied Sciences Ltd (87.0% ownership), Campusta Oy (100% ownership) that provides facility services, and Radio Moreeni Oy (100% ownership) until 30 April 2023.
Financial indicators for Tampere University Foundation
|
|
University, |
Budget |
University, |
|
Turnover |
354.1 M€ |
|
345.2 M€ |
|
change % |
+2.6% |
|
+2.8% |
|
Operating results without |
-14.1 M€ |
-11.0 M€ |
-9.8 M€ |
|
Adjusted operating results |
-7.5 M€ |
-4.2 M€ |
-4.6 M€ |
|
Financial results for the year |
36.8 M€ |
|
-40.0 M€ |
|
Investment income (%) |
+10.6% |
Target return: |
-7.5% |
|
Investments |
7.2 M€ |
8.5 M€ |
9.7 M€ |
|
Balance sheet total |
704.8 M€ |
|
664.7 M€ |
*In addition to the results reported in the financial statements, the University publishes the operating results adjusted with non-recurring items and the results adjusted with the use of revenue generated by the capital.
Financial indicators for the corporate group
|
|
Corporate group, |
Corporate group, |
|
Turnover |
428.6 M€ |
416.2 M€ |
|
change % |
+3.0% |
+3.7% |
|
Operating results |
-7.7 M€ |
-5.6 M€ |
|
Financial results for the year |
41.2 M€ |
-41.2 M€ |
|
Consolidated balance sheet total |
722.4 M€ |
678.7 M€ |
