Coffee with Gert: ‘Growth of faculty partly due to the success of our researchers’
Twice a year, Gert Renkema, Head of Financial Economic Affairs at FGGA, shares insights about the processes and financial matters for our faculty. This time, he will discuss the BFR2 forecast and the announced budget cuts.
‘Although the financial outlook is positive, it remains important to stay alert’
What is a budget and forecast (BFR)?
'The BFR is part of the university's annual planning and control cycle. This report outlines a financial forecast based on the budget. Throughout the academic year, this forecast is prepared twice: once in April and once in September. This is the BFR2. It provides insight into the financial health of the faculty based on calendar years, meaning that the current academic year is partly reflected in the financial results.'
Has the BFR2 been adjusted for the announced budget cuts?
'No, despite anticipating budget cuts, this forecast was created without incorporating any cuts. However, I expect that these will need to be reflected in the near future. Nevertheless, FGGA’s financial position looks positive. The effects of the budget cuts will likely only become noticeable from 2025 or possibly later.'
What does this forecast mean for FGGA?
'For 2024, the faculty expects a positive financial result of about €600,000, comparable to 2023. This result is even slightly better than the first forecast (BFR1), mainly because salary increases were lower than initially estimated and some vacancies were filled more slowly then we expected. Additionally, the portfolio of research funds continues to grow steadily, thanks to the success of our researchers. Important projects include the NWO projects that started in 2024 at BSK, ISGA and Judi Mesman. This provides extra financial space that can use for new projects and initiatives.'
Stay Alert
'Although the financial outlook is positive, it remains important to stay alert to developments both within and outside the faculty. The mobility allowances and salary increases have already been included in the forecast. Moreover, the new collective labor agreement, which includes more permanent contracts, has been factored into the financial planning. This aligns with the faculty’s commitment to good employment practices and the focus on reducing the number of temporary contracts.'
What does all this mean for the employees?
'Due to the stable financial situation and the expected growth in research funds, more projects and initiatives can be supported. At the same time, employees should be aware of possible changes in budgets, especially when the budget cuts become noticeable from 2026. During that period, it may be necessary to reassess priorities and possibly limit certain activities.'
Why are we in such a good position?
'One of the strengths within FGGA is the healthy culture of collaboration and transparency regarding all financial matters. There are regular discussions between management and financial affairs to find feasible solutions to any challenges. This open communication enables the faculty to remain flexible and respond promptly to changing circumstances. This distinguishes FGGA from other faculties, where it can sometimes be more difficult to act quickly when necessary.'
Which conclusion would you like to draw from this forecast?
'The BFR2 forecast presents a positive look for the faculty, with growth opportunities in research funds and stable income from existing and new programs. Although the budget cuts have not yet been incorporated into the forecast, it remains important for employees to be aware of the potential impact. Thanks to the strong collaboration and open financial conversations within FGGA, the faculty remains well-equipped to face challenges and seize new opportunities.'