New board decision regarding budget and administrative capital
The process for operational planning is now changing in order to create a process where the university's supporting functions within Professional Services can better meet the Faculties' need for support for the next three years.
"In the new process, the board's decision on appropriations allocation for education and research per Faculty and the dimensioning of resources for Professional Services is moved forward. The idea is to create better conditions for Faculties and units to plan and dimension their work," said Magnus Bergenholtz, Controller.
This means that at the June meeting, the Governing Board of the University of Borås decided on the framework for the allocation of appropriations for 2022-2024 and that it will then be the Vice-Chancellor who will decide on the final budget per Faculty and unit during the autumn.
New guidelines for administrative capital
At the board meeting, it was also decided that the guidelines for the university's administrative capital are to be 10–14 per cent of the total costs.
Administrative capital refers to the university's saved resources in the form of the accumulated surplus that has arisen as a result of a higher education institution not using all the resources for research and education as well as the results from the university's holding company.
"There has been a need to review the guidelines for the university's administrative capital. The purpose of the university is not to generate profits, but rather its financial resources should be a means of conducting high-quality work. The university must have saved capital to counteract the consequences of unforeseen events and at the same time be able to encourage strategic investments. Therefore, the board also decided that the Vice-Chancellor, regarding administration capital, can decide on investments that are in accordance with the university's goals and strategies," explained Magnus Bergenholtz.
"This is a good decision that relates to a sufficient amount of administrative capital but not too much. This affirms the possibility that administrative capital is not built up unnecessarily, but we use it to do good things for the university," said Mats Tinnsten, Vice-Chancellor at the University of Borås.
Read the decision via the Registrar's Office: Allocation of appropriations for education and research by Faculty and dimensioning of resources for higher education and Professional Services, 2022-2024, Reg. no. 401-21 (link to Swedish page)
Johanna Avadahl / Translation: Eva Medin