RU administrative costs not increasing fivefold
The 6 September edition of the Danish newspaper Information claimed that RU’s administrative and management costs increased fivefold between 2005 and 2009. That is not correct.
Information stated that since 2005 RU’s costs for administration and management alone had risen from DKK 9 million to DKK 47 million in 2009 in current prices. The figures are taken from Universities Denmark’s key figures. However, due to a reporting error to Universities Denmark and other factors, the figures are not correct.
Thus, RU’s costs for management and administration did not rise from DKK 9 million in 2005 to DKK 47 million in 2009, but from DKK 9 million in 2005 to DKK 16 million in 2009. Therefore, we have not seen a fivefold increase of RU’s administrative and management costs as claimed by Information, but an increase of just under 70% in current prices. This increase should be seen in the light that the university sector as a whole experienced an increase in administrative costs of 90% in current prices between 2005 and 2009.
Taking into account price increases, which is normal practice when comparing several years’ figures (fixed prices), RU’s costs for management and administration increased by 53% from 2005 to 2009 where the university sector’s overall costs for administration and management rose by 71%.
Also, 2005 was the first year where universities tried to calculate costs for management and administration, which gave rise to great uncertainty about the year 2005 figure.
Looking at the years 2007 to 2009, RU's administrative and management costs rose by only 3.9% in fixed prices, whereas costs for the sector as a whole rose by 14.4%.
Mr. Peter Lauritzen, University Director, said:
- ”When it comes to administration costs, RU cut straight to the bone a long time ago. The DKK 16 million in management and administration costs for 2009 thus only constitute 2.3% of the university’s overall costs compared to 6.3% for the entire university sector. This shows that most of the universities’ aggregate funds are spent on their core services, namely research, education and communication.”
For further information, please contact:
Mr. Peter Lauritzen, University Director, Roskilde University, tel: +45 4674 2066, mobile: +45 4080 3690, e-mail: pl(at)ruc.dk