1. AARHUS
UNIVERSITY
STAFF MEETING
The Main Hall, 9 November 2010

2. Aarhus University's budgetary framework
Current university policy issues
Vision plan for physical development
Status of the academic development process
Presentation of new deans

3. Aarhus University's budgetary framework
Satisfactory financial result anticipated for 2010
Although the 2011 Budget has not yet been adopted by the Danish Parliament, a political accord on the allocation of globalisation funds for 2011 was reached on 30 October and for the 2011 Budget on 8 November:
Basic research funding: new DKK 270 million pool for distribution among Danish universities
Matching funds: DKK 100 million to match private subsidies
Reduction on education and ’other purposes’: DKK 225 million
Prognosis for AU's 2011 budget: continued growth, but at a slightly lower level than in previous years

4. Aarhus University's budgetary framework
Globalisation funds from the government's globalisation pool are an important element in AU's finances
Over 0.5 billion kroner in 2011 alone received in the form of basic research funding - nearly 10% of the total budget
Also a significant proportion of competitive funding (external subsidies)
New challenge: funding from globalisation pool runs out after 2012
Aarhus University's budget proposal for 2011 will be presented to the University Board for approval on 16 December
The nine main academic areas have submitted independent budget proposals which will form the basis of the budgets for the four new main academic areas in the 2011 budget.
Aarhus University's 2011 budget is projected to be approx. DKK 5.9 billion.

5. Administrative costs
The Danish Assocation of Masters and PhDs (DM) held the conference 'Follow the Money' and presented a report claiming to document dramatic increases in administrative costs
Universities Denmark and individual universities strongly disagree with the report's conclusions
A difficult question of interpretation:
Which areas and functions are administrative, and which are not?
Many mergers in the period
Administrative costs have increased in this period as a result of a necessary process of modernisation as well as increased administrative burdens related to government requirements.

6. The development of total costs 2005-09
Aarhus University’s total costs allocated on activities level, mio. kr.
Aarhus University
2005
2006
2007
2008
2009
Education
999
1,036
1,109
1,177
1,211
proportion of total costs
29.2%
29.1%
23.2%
22.9%
22.6%
Research
1,393
1,462
2,180
2,188
2,214
40.8%
41.1%
45.5%
42.6%
41.3%
Knowledge dissemination
159
196
131
161
168
4.7%
5.5%
2.7%
3.1%
Consultancy -
259
279
310
5.4%
5.8%
Generel management,administration and service
209
211
330
409
435
6.1%
5.9%
6.9%
8.0%
8.1%
Buildings
656
652
781
916
1,022
19.2%
18.3%
16.3%
17.9%
19.1%
Total
3,415
3,556
4,790
5,131
5,360

7. The development of administrative costs
Primary explanation for increased administrative costs:
the modernisation and professionalisation of the university's administrative processes and structures. AU still below average for university sector
Approx. DKK 50 million in annual merger-related costs
Strategic initiatives such as increased internationalisation and research support
Growth in governmental requirements, for example the accreditation process and the demand for more complex reporting on activities
General management, administration and service 2005 and 2009: proportion of total costs
2005
2009
All Danish universities
6.8%
8.4%
Aarhus University
6.1%
8.1%
Total management and administration (incl. departmental): proportion of total costs
14.3%
16.5%
12.9%
13.6% 7

8. Aarhus University's budgetary framework
Current university policy issues
Vision plan for physical development
Status of the academic development process
Presentation of new deans

9. Financing higher education: a necessary debate
Universities in the international elite cannot be created through public sector investment alone
The quality of education is crucial for Denmark's international competitiveness, growth and welfare
Higher education in Denmark is underfinanced by over DKK 1.5 billion
An additional DKK 2.9 billion will be required over the next decade to enable universities to accommodate an increase in the size of the student body and to meet the government's ’50% goal'
A serious debate on alternative sources of funding which well might challenge conventional Danish standpoints and principles is necessary.

10. The debate on 'small subjects'
Main issues at stake in the debate
Financing
The taxameter system makes it difficult to finance 'small' but academically significant programs.
Societal considerations
More politicians and business leaders now acknowledge that the 'small subjects' are indispensable.
Knowledge of a broad spectrum of languages and cultures is necessary, whether we are doing business, outsourcing jobs, or discussing democracy.
Continual development of the AU profile
Development of Aarhus Faculty of Arts
Including a focus on education – for ’small subjects’ as well.

11. Gender equality
Background for the initiative (statistics from January 2010):
The Danish University and Property Agency has granted AU permission to establish
10 associate professor positions: DKK 100,000 in research funding and transition postdoc salary funded by central AU pool
10 MSO professorships: difference between associate professor salary and MSO salary funded by central AU pool for 2 1/2 years

12. Gender equality initiatives
Conditions:
Both men and women eligible to apply
Positions must go to best qualified applicants regardless of sex
If the best qualified applicant is a woman, the AU pool provides funding
Goals:
To avoid loosing talented researchers
To encourage more female applicants to associate professor and full professor positions
Additional gender equality initiatives:
Charter for more women in management, mentorship programme, action plans at faculty level, clearly marked career paths
A management development programme and an employee development interview (MUS) concept are also on the way

13. Nobel Prize awarded to Niels Bohr professor at AU
The 2010 Nobel Prize in Economic Sciences will be awarded to Professor Dale T. Mortensen on 10 December.
Dr Mortensen took up a Niels Bohr professorship funded by the Danish National Research Foundation at Aarhus University in Dr Mortensen has collaborated with the Department of Economics since 1982 and has exercised a significant influence on the development of labour market research at AU.
Dr Mortensen's term as Niels Bohr professorship expires next year; Aarhus University has extended his term by five years.

14. AU to host EUA Annual Conference 2011
EUA represents 800+ research institutions in 46 countries
The conference marks the 10th anniversary of EUA
Theme: Investing Today in Talent for Tomorrow
Attracting research talent to Europe
Career paths for young researchers
Balancing elite and mass education
International collaboration on researcher talent development
500 participants: university rectors, politicians, special interest organisations, researchers, students
Concurrent PhD conference and business conference

15. Aarhus University's budgetary framework
Current university policy issues
Vision plan for physical development
Status of the academic development process
Presentation of new deans

16. University Park Campus
Vision plan
The Katrinebjerg area
The Lille Barnow
Aarhus University will retain the main Aarhus campus and extend its campus in Emdrup
Teaching facilities, research facilities and experimental stations will be retained in selected locations
The Aarhus and Emdrup campuses will grow in coming years
Possibilities for expansion in Aarhus:
The Lille Barnow property
The Katrinebjerg area
The University Park campus
The Aarhus Hospital property
University Park Campus
Aarhus Sygehus

17. Current and upcoming construction projects
Five projects in progress: the iNANO building on Langelandsgade, the expansion of ASB on Fuglesangs Allé, the new IT building in Katrinebjerg, the conservatory in the Botanical Gardens and the expansion of AU-HIH in Herning (approx. 29,000 m 2)
Two planned laboratory facilities for the natural sciences and health sciences on the University Park campus (approx. 16,000 m2)
Furthermore: Buildings for Aarhus School of Engineering at the Katrinebjerg area and NAVITAS at the harbor (approx. 44,000 m2)
Construction project on Lille Barnow property (up to 61,000 m2)
Preparations for expansion in Katrinebjerg to accommodate
agricultural sciences activities
Preparation of Emdrup expansion

18. Aarhus University's budgetary framework
Current university policy issues
Vision plan for physical development
Status of the academic development process
Presentation of new deans

19. Status of the academic development process
Design and implementation of new organisational structure with fewer main academic areas, departments and levels of administration
Structure of new main academic areas: approved in June; to be implemented in January 2011
Departmental structure: Proposals submitted in December, decision in January 2011; implementation in the spring of 2011
Administrative structure: Proposals submitted in January2011; decision in February; implementation in the course of 2011
Geographical/physical infrastructure
Vision plan for physical development approved
Establish a cohesive management with the resources to exercise strategic leadership
New deans start on 1 November; assume duties as deans on 1 January 2011
New university management group a reality as of 1 January 2011
Interfaculty organisational functions: Appointment of vice deans in early 2011; interfaculty functions to be established hereafter
New financial model under development; to be implemented in the course of 2011

20. Aarhus University's budgetary framework
Current university policy issues
Vision plan for physical development
Status of the academic development process
Presentation of new deans

21. Mette Thunø Dean of Aarhus Faculty of Arts
Associate Dean for Research at the University of Copenhagen's Faculty of Humanities since 2006
Director of the European Centre for Chinese Studies at Peking University
Board member for International Society for the Study of Chinese Overseas
Member of the editorial board for Journal of Chinese Overseas

22. Brian Bech Nielsen Dean of Aarhus Faculty of Science and Technology
Head of the Aarhus University Department of Physics and Astronomy since 2009
Deputy Director of iNANO,
Member of the Royal Danish Academy of Sciences and Letters since 2006

23. Svend Hylleberg Dean of Aarhus School of Business and Social Sciences
Dean of the Aarhus University Faculty of Social Sciences since 2005
Member of the Advisory Board for Center for Research in Econometric Analysis of Time Series (CREATES) since 2007
Associate editor of The Scandinavian Journal of Economics since 1995
Associate editor of Macroeconomic Dynamics since 1997

24. Allan Flyvbjerg Dean of Aarhus Faculty of Health Sciences
Professor at the Department of Endocrinology, Aarhus University Hospital since 2009
Recipient of numerous national and international awards for research and popular publications
President of the Danish diabetes association Diabetesforeningen for ten years

25. Thank you for your attention
And remember: there will be a reception to welcome the new deans on 6 January in Stakladen
RECTOR LAURITZ B. HOLM-NIELSEN