Changes in the financial model at Aarhus BSS from budget 2024

During autumn 2022/spring 2023, the faculty management team discussed whether the allocation of basic research funds between the departments at Aarhus BSS should be changed. The reason for the discussion was firstly a very different development in the attraction of external funds across the departments at Aarhus BSS, which has led to a correspondingly different development in the amount of basic research funds allocated to each department. Secondly, the university’s senior management team decided to change the allocation of costs to faculties for the university-wide administration, meaning that the costs for the common AU services are now distributed according to the faculties’ external research funds as well.

As a result, the faculty management at Aarhus BSS decided to maintain the 45:20:25:10 distribution model, which implies that all basic research funds are allocated to the departments based on the following indicators: 45 per cent according to student FTE, 20 per cent according to external funds, 25 per cent according to BFI and 10 per cent according to number of PhD graduates (the 25 per cent indicator (BFI) is currently locked in). Instead, the desired objectives will be promoted by changing the contribution to AU's common area (common expenses and joint administration) as well as the contribution to the school’s common area (common expenses and administration center).

The faculty management team decided that, in the future, the departments' contribution should be calculated using the same cost drivers as imposed on faculties’ by the AU. This is a change compared to the previous internal Aarhus BSS distribution model, in which i.a. student FTE was included in the departments’ contribution calculation. The change thus entails an increased taxation based on the external funds and a lower taxation based on student FTE.

The changes will be implemented from the budget 2024, taking into account other relevant matters relating to the budget, e.g. the Finance Act 2024 in which the taximeter increase is made permanent.