2024 annual report: AU consolidates its sound financial footing
Aarhus University achieved a budget surplus in 2024, and its continued financial stability is welcomed by the senior management team and AU Board.
Stability and soundness. These are the key words in the 2024 annual report, which the Aarhus University Board has just approved.
The results show a budget surplus of DKK 42 million on operations and a return of DKK 142 million on the university’s financial items. Seen in the context of revenues of more than DKK 8 billion, the overall result for the year is very positive, and chair of the board Birgitte Nauntofte emphasises that the university’s operations remain in balance.
“There will always be unforeseen fluctuations in the finances of a large organisation, and we managed these well at Aarhus University throughout 2024. Our main focus on the board is whether our foundation is sound – whether there is a balance between our revenues and our costs. And there is. We were hit by an unexpected financial blow in 2022, but we managed to stabilise our finances the following year. This stability continued throughout 2024, and the board is delighted with the result.”
The chair of the board points out that the positive result strengthens the university’s financial position ahead of a few years of significant investments in areas such as campus development, which is part of the university’s upcoming strategy (link), and a new studies administration IT system. In addition, the long-term financial impact of the Master’s reform on the university’s finances remains unknown.
More research than expected
The university’s total costs are approximately three per cent higher than budgeted for, but revenues have increased by a corresponding amount. This is primarily due to a rise in the use of external grants, which is welcome news for Rector Brian Bech Nielsen:
“It’s always encouraging when positive fluctuations in our budget result from increased research activity. Our researchers look set to continue the excellent trend we’ve seen in recent years when it comes to attracting more external funding. For example, we’ve managed to secure several grants from the EU’s Horizon Europe framework programme. We should be very proud of this, and I believe there is every reason to be optimistic about the level and scope of our research in the coming years.”
Investments have contributed to budget surplus
A significant part of AU’s budget surplus for 2024 was driven by the university’s statutory financial investments, which yielded good returns. The university budgeted for a return of DKK 75 million on its financial items, but this return ended up being almost twice as high at DKK 142 million.
“In general, we’re investing our money a lot more cautiously than we did five years ago, and over time, this will probably mean that our returns will be slightly lower. So while we’re pleased that the market smiled on us in 2024, the development of our financial items is something we’ll continue to monitor over the years ahead,” explains University Director Kristian Thorn.
- See the annual report (only Danish version available)