university of copenhagen A nnua l R e p o rt 2021 university of copenhagen A nnua l R e p o rt 2021 Ta b l e o f c o n t e n t s Review, Management s statement and Auditors report 3 Company information 3 Management s statement 4 Independent auditor s report 5 UCPH financial highlights 8 Management report 2021 9 Reporting Reporting on the strategic framework contract Financial statemen R e v i e w, M a n a g e m e n t s s t a t e m e n t a n d A u d i t o r s r e p o r t Company information Company Auditors University of Copenhagen Nørregade 10 DK-1165 Copenhagen K Local authority: City of Copenhagen CVR no.: 29 97 98 12 Danish National Audit Office Landgreven 4 DK-1301 Copenha Management statement The Board and Executive Management have today considered and approved the Annual Report of the University of Copenhagen for 2021. The Annual Report has been prepared in accordance with the Danish State Accounting Act, Executive Order no. 116 of 19.02.2018 on state accounting et I n d e p e n d e n t a u d i t o r s r e p o r t The University of Copenhagen Board has appointed Deloitte as institutional auditors of University of Copenhagen pursuant to Section 28(3) of the Danish University Act. Rigsrevisionen - the Danish National Audit Office is responsible for the overall Auditors responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reas In connection with our audit of the financial statements, our responsibility is to read the management report and, in doing so, consider whether the management report is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially 2: Student enrolment and graduates 3: Revenue, current prices in DKK m 1: Number of publications 9,000 2:10,000 Student enrolment and graduates 12,000 8,000 3.4 10,000 7,000 3.0 3.2 2.8 6,000 8,000 2.6 2.4 5,000 6,000 2.2 4,000 2.0 4,000 1.8 3,000 1.6 2021 1.4 2013 2,000 2015 2 Management report 2021 Long live research and public/private collaboration. Long live science. The words are those of our Prime Minister and were uttered on New Years Day 2021 only a few days after Denmark had started to vaccinate against COVID-19. In many ways, 2021 picked up where 2020 had left o Board of the University Rector Rectors Office HR Henrik C. Wegener Prorector UCPH Communication David Dreyer Lassen Research & Innovation Prorector Bente Merete Stallknecht Education & Students University Finance University Director Campus Service Jesper Olesen University IT Faculty o at the end of the year, UCPH received funding of DKK 10.2 million for boosting German and French in higher education. These funds will be used by UCPH in 2022. Rankings Every year, a number of annual global rankings are published in which universities are benchmarked against each other. UCPH focuse European Framework Programme for Research and Innovation, which has delayed the application process and the allocation of funding. Innovation and entrepreneurship New innovation centre on Nørre Campus (North Campus) In the course of the year, a new innovation centre was established at UCPH, which b Did you know? That COVID-19 has changed Danes reading habits. During the corona crisis, many readers have found comfort in literature. More pages have been turned, and more audiobooks switched on and readers have displayed a preference for reading about the connection between the past and the prese Did you know? That researchers from UCPH have developed a new, sublime algorithm that could significantly reduce the resource consumption of the worlds computer servers one of the biggest climate culprits. The algorithm is a scalable solution designed to keep up with the worlds burgeoning internet Did you know? That the Novo Nordisk Foundation has awarded up to DKK 2.2 billion for a new international research centre for stem cell research. Stem cell research paves the way for developing methods for growing cells from most human organs in the laboratory, and for repairing damaged tissue either and was replaced by Pia Quist, professor of linguistics at the Department of Nordic Studies and Linguistics. In October 2020, Carsten Krogh Gomard (professional board member) stepped down; he was replaced in January 2021 by Lars Rasmussen (professional board member). In January 2021, David Dreyer La to transfer pseudonymised personal data to countries outside the EU/EEA, which was granted. UCPH has set up a working group charged with identifying all agreements on the transfer of personal data to non-EU/EEA countries and renegotiating or terminating any agreements that do not comply with the rul Master plan and campus plans UCPHs master plan from 2020 sets out the objectives and principles for the optimum use of the Universitys facilities. The goal is for campus and building costs to equate to a maximum of 20% of UCPHs total revenues in 2030. The campus plans are thus intended to ensure th in higher education as well as well-being initiatives and academic activities in the wake of COVID-19. Other income items were also higher than expected, among other things due to energy tax refunds. Operating costs for 2021 were again impacted by the COVID-19 pandemic and the lockdowns in 2021, res On 6 December 2021, a broad political majority adopted the Finance Act for 2022. It did not contain any major surprises in relation to UCPHs budget for 2022. Nor did it provide clarity about the budgetary implications of the agreement on improved access to higher education in all regions of Denmark base subsidy from 2023 onwards, as it is unclear to what extent the reductions in enrolment will affect the subsidy. At the same time, the basic research subsidy is also subject to uncertainty as the Finance Act for 2022 only allocates research reserve funding up until 2024. UCPH still expects the f Reporting Reporting on the strategic framework contract of Danish society with special focus on the extraordinary circumstances associated with COVID-19 this year. Overall evaluation Goal 2 UCPH wants to conduct research at the highest international level In 2018, the University of Copenhagen e degree programmes. The efforts to digitalise degree programme content and strengthen the digital skills of both lecturers and students have been strengthened during the period. Seen in the context of the far-reaching activities in which the faculties are engaged, activity levels within digitalisatio Financial statements Accounting policies Basis of preparation The Annual Report has been prepared in accordance with the Danish State Accounting Act, Executive Order no. 116 of 19 February 2018 on state accounting etc., the Ministry of Finances Financial Administrative Guidelines, Executive Order n the Annual Report which confirm or invalidate affairs and conditions existing at the balance sheet date. Revenues related to the veterinary emergency response task are recognised in the period to which they relate. Intercompany revenue between UCPH units and transfers between types of activities ( If UCPH itself constructs a fixed asset, internally incurred payroll costs are included in the value of the asset if the total project costs for acquisition and development, including internal resource consumption, amount to DKK 10 million or more. Intangible assets Acquired concessions, licences e Property, plant and equipment Land Useful life Not depreciated Buildings 50 years Ships 40 years Greenhouses (laboratories) 30 years Plant and other special technical equipment 15 years Construction work in progress (plant under construction) Leasehold improvements Not depreciated 10 year the extent that the University incurs expenses for activities that are funded by grants under these agreements, but where the grants have not yet been received, the amounts due to UCPH are recognised as receivables from grant activities in progress. Write-downs for bad debts are calculated on the ba In 2021, UCPH has paid the frozen holiday pay into the Fund. Prepaid restricted contributions Contributions received concerning grant activities covering expenses not yet incurred are recognised as prepaid restricted contributions. Contributions received are reduced regularly as and when income is Income statement 1 January - 31 December 2021 2020 DKK 000 DKK 000 Education Research External grants Basic subsidies Building-related revenues Other revenues Total revenues 2,123,540 3,039,161 3,519,631 304,963 63,881 335,870 9,387,046 2,074,856 3,036,073 3,287,571 289,597 69,854 293,731 9,0 Balance sheet at 31 December Assets Note Acquired concessions, software, licences, etc. 3 Completed development projects 3 Intangible development projects in progress Intangible assets 3 Buildings Leasehold improvements 4 Scientific equipment, fixtures and fittings, work equipment and machiner Balance sheet at 31 December Equity and liabilities 2021 2020 DKK 000 DKK 000 2,712,874 32,746 326,937 3,072,556 2,547,655 (63,477) 228,696 2,712,874 116,155 116,155 112,453 112,453 4,897 1,748 16,748 344,452 3,320 -120,810 250,355 6,576 895 21,818 322,264 2,890 -121,404 233,038 438,327 3 Statement of changes in equity 1 January - 31 December 2021 2020 DKK 000 DKK 000 Adjusted equity (initial capital at 1 January 2005) 243,273 243,273 Reserved equity at 1 January Change for the year in reserved equity Reserved equity at 31 December 1) 727,533 32,746 760,279 727,533 727,533 Cash flow statement 1 January - 31 December 2021 2020 DKK DKK 000 326,937 228,696 Depreciation, amortisation and non-cash operating items Depreciation of donations Net impairment of fixed assets and donations etc. Changes in provisions Changes in receivables Changes in short-term debt Cash fl Notes to Financial statements 2. Total ordinary operating expenses 1. Total revenues Expenses are classified by nature in the income statement. In this note, expenses Full-time degree programmes (Finance Act) Base subsidy (Finance Act) 2021 2020 DKK 1.000 DKK 1.000 1,334,872 1,294,923 are 3. Intangible assets Acquired Completed Development concessions, soft- development projects ware, licences, etc. projects in progression Total Cost at 1 January 2021 69,676 57,409 24,164 151,249 Additions 16,982 37,738 11,039 65,759 Disposals (20,539) (8,310) (35,203) (64,052 4. Property, plant and equipment Scientific equipment, fixtures and fittings, work Leasehold equipment and Own work Buildings improvements machinery in progress DKK 000 Total Acquisition cost Cost at 1 January 2021 200,897 782,125 2,280,974 153,314 Additions 2,955 34,948 254,501 5.. Investments, instruments of debt and long-term receivables UCPH holds investments in the following enterprises. 2021 2020 Symbion A/S 25,644 25,643 UCPH Ventures A/S 15,000 - DKK 000 VAR2 Pharmaceuticals ApS 6 6 40,650 25,650 Rolighedsvej 23, DK-1958 Frederiksberg C (Geosciences a 7. Receivables from grant activities in progress and prepaid restricted contributions 2021 Receivables from Prepaid restricted DKK 000 grant activities contributions etc. Total Receivable and prepaid grants 765,137 (3,012,162) (2,247,025) Provision for loss on grant activities (6,830) 10. Donations of intangible assets Acquired concessions, software, licenses, etc. DKK 000 Acquisition cost Cost at 1 January 2021 14,799 Additions 654 Disposals (1,645) Cost at 31 December 2021 13,808 Amortisation and impairment Balance at 1 January 2021 8,223 Amortisation for the year 12. Grants administered by the University 16. Staff Amounts of grants at 31 December 2021 2020 5,044,359 4,789,083 DKK 000 DKK 1,000,000 2021 2020 Actual salaries Total balance 150.4 130.8 Pensioner 0.0 0.7 Total intermediate account with the University Reimbursements and grants C 17. Financial instruments 19. Contingent liabilities A portfolio agreement has been made with three asset managers. The invest- Liability insurance for the Board and Management as well as professional and ment strategy aims at a minimum of 75% in government and mortgage bonds, product liability 21. Related parties Related parties Basis Ministry of Higher Education and Science (UFM) Subsidies for education, research and knowledge dissemination activities. Powers under the Danish University Act and the Executive Order on Subsidies and Auditing. Ministry of Children and Education (UVM) 22. Information about activities under the Danish Act on Public Research Institutions Commercial Activities and Collaboration with Foundations (the Tech-Trans Act) as well as about equity interests in companies In 2021, UCPH had no costs for the administration of foundations or associations, includ 23. Students from US Virgin Islands Use of free places 1 September 2020 to 31 August 2021 Students enrolled Payment of Funds used for full or part-time No. of scholarship free places scholarships (free places) recipients DKK DKK Rate 1 - - - - Rate 2 - - - - Rate 3 - - - - 25. The Universitys use of scholarships for particularly talented students 27. Subsidies to the Arnamagnaean Commission Funds used No. of students Subsidies during the enrolled under from Acency financial year scholarships DKK 1.000 DKK 1.000 2017 18 1,400 2,752 2018 15 - 1,545 2 28. Separate account for general activities, commercial activities, forensic medicine services, research activities financed by grants and other activities financed by grants DKK 000 2021 2020 2019 2018 General activities (DR10) Revenues Internal net transfer of overhead 5,867,415 5,764,111 ... Note 28 continued 1) Net financials, including return on investments, are recognised in operating costs. 2) Result for the year from commercial activities (DR30) totalled DKK 31.9 million. Of which transfer of profits from projects relating to DR30 to general activities during the year was D Financial highlights of the University of Copenhagen 2021 2020 2019 2018 2017 Revenues including interest (DKK 000) Education 2,123,540 2,074,856 2,046,575 2,031,558 2,130,929 Research 3,039,161 3,036,073 3,001,628 2,989,187 2,921,986 External grants 3,519,631 3,287,571 3,221,416 Activity and production information 2021 2020 2019 2018 2017 Students Bachelor students at 1 October 7,051 7,143 6,859 6,642 7,023 Masters degree students at 1 October 6,095 5,871 5,917 5,957 6,106 17 16 Corporate Masters degree students at 1 October 8 Total students at 1 Octobe ... Financial highlights continued 1) In 2020, the statement has been adjusted to Universities Denmarks statement, which, for some elements, deviate from UCPHs itemisation in the income statement and note 1. 2) From 2021, UCPHs expenses are allocated in accordance with the annual report template University of Copenhagen Annual Report 2021 May 2022 The publication is available on: https://about.ku.dk/facts-figures/annual-report Editing and layout: University Finance Design: UCPH Communication Layout: Signs & Wonders Front page photo: City Campus, Faculty of Social Sciences Photographer: Line