Inflation has an impact on KTH’s finances, particularly when it comes to our premises, as our rental agreements are index linked and increase annually. The higher costs remain in place also after inflation comes down again. In the run-up to 2023, rent costs for premises increased by around SEK 80 million due to inflation, and we expect further increases ahead of 2024.
KTH’s opportunities and continued development as a leading technical university depend on good, stable long-term finances. In February, the university’s President decided on measures for balanced finances. Some of the results of this were the campus review, a cost-cutting requirement of SEK 50 million for the University Administration in 2024, and a request for heads of school to identify opportunities to increase income in education, and to consider possible ways of reducing costs or increasing earnings in operational planning for 2024.
This is the time of year when operational planning for the next year is under way. As well as measures for balanced finances, the process is influenced by a new internal price model for premises, as well as plans for revised allocation of GRU (first-cycle) funding. KTH will now see what challenges lie ahead as regards a balanced budget, and how we can find solutions together. Here at the Finance Office, we are contributing to the ongoing process in various ways like for instance calculations and documentations.
Meanwhile, efforts continue to streamline and coordinate financial administration in order to free up resources for education and research. The University Director therefore recently made a decision to coordinate the sub-ledger function (which works with KTH’s flow of payments) within the Finance Office.
Development of KTH’s financial control is under way, as are efforts to ensure efficient project management. The key here is to harmonize processes and utilize system support. Procurement of system support for operational planning and financial control is awaiting the green light.
Susanne Odung, Head of Finance