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Financial Statement 2019

Consolidated balance sheet on 31 December 2019 after profit appropriation

in M€         2019 2018
1. ASSETS          
             
  Fixed assets          
1.1 Intangible fixed assets       4.9 4.1
1.2 Tangible fixed assets       260.7 269.0
1.3 Financial fixed assets       1.2 1.9
             
  Total fixed assets       266.8 275
             
             
  Current assets          
1.4 Inventories       0.1 0.1
1.5 Receivables       34.3 34.6
1.6 Cash and banks       127.3 114.2
             
  Total current assets       161.7 148.9
             
  Total Assets       428.5 423.9
             
             
2. LIABILITIES          
             
2.1 Equity       242.4 270.5
             
2.2 Provisions       21.3 23.4
2.3 Long-term liabilities       8.6 8.7
2.4 Current liabilities       156.2 121.3
             
  Total liabilities       428.5 423.9

Consolidated statement of income and expenditure over 2019

in M€         Result Budget Plan Result
          2019 2019 2018
3. INCOME            
3.1 Central government grant       311.7 304.2 300.3
3.2 Study, course, tuition and registration fees       62.4 61.4 61.2
3.3 Income from work commissioned by third parties       205.0 193.8 191.6
3.4 Other income       101.7 118.4 96.3
               
  Total income       680.8 677.8 649.4
               
               
4. EXPENDITURE            
4.1 Staff costs       467.7 441.2 425.6
4.2 Depreciation       37.2 39.0 33.1
4.3 Housing costs       27.3 29.9 29.4
4.4 Other expenditure       157.8 177.0 153.3
               
  Total expenditure       690.0 687.1 641.4
               
               
  Balance of income and expenditure       -9.2 -9.3 8.0
               
               
5. Financial income and expenditure       -0.3 1.1 -0.2
6. Taxes       -0.1 -0.1 -0.6
               
  Results       -9.6 -8.3 7.2
               
7. Share of third parties in group result       18.5 5.0 11.7
               
  Net results       -28.1 -13.3 -4.5

Consolidated cash flow statement for 2019

in M€ 2019   2018  
Cash flows from operational activities        
Result on ordinary business operations   -9.2   8.0
         
Adjustments before reconciliation of operating result        
Adjustments before depreciation 19.8   33.1  
Increase (decrease) in provisions -2.1   1.4  
Other adjustments before reconciliation of the operating result -18.5   -11.7  
    -0.8   22.8
Changes in working capital        
Increase (decrease) in current receivables 0.3   2.9  
Increase (decrease) in current liabilities 35.1   -9.1  
    35.4   -6.2
Cash flow from business operations   25.4   24.6
         
Interest received   0.3   0.3
Interest paid   0.1   0.1
Movements in other financial fixed assets   -0.5   -0.4
Income tax paid   0.1   0.6
Total cash flow from operational activities   25.0   23.8
         
Cash flow from investment activities        
Acquisition of intangible fixed assets 1.9   0.1  
Revenue from the disposal of intangible fixed assets 0.0   0.0  
Acquisition of tangible fixed assets 10.5   18.0  
Revenue from the disposal of tangible fixed assets 0.0   0.0  
Investments in participating interests and cooperative arrangements -0.1   0.1  
Increase (decrease) in loans to the Department for Education, Culture and Science and the Ministry of Economic Affairs -0.6   -0.6  
Increase (decrease) in other financial fixed assets 0.0   0.0  
Total cash flow from investment activities   11.7   17.6
         
Cash flow from financing activities        
Increase (decrease) in long-term liabilities -0.1   -0.5  
Revenue or repayment of long-term liabilities 0.1   -0.3  
Total cash flow from financing activities   -0.2   -0.2
Other balance sheet movements   0.0   0.0
Increase (decrease) in cash and banks   13.1   6.0
         
Cash and banks position on 1 January   114.2   108.2
Cash and banks position on 31 December   127.3   114.2
Movements in cash and banks   13.1   6.0

General notes

Erasmus University Rotterdam (EUR), located at Burgemeester Oudlaan 50, 3062 PA Rotterdam, registered with the Chamber of Commerce under number 24495550 0000, is a legal entity under public law under the Dutch Higher Education and Research Act. EUR consists of the university and subsidiaries: EUR Holding B.V. with its operating companies, Rotterdam School of Management B.V., Stichting Erasmus Sportaccommodaties and Stichting Erasmus Sport. The activities of EUR and its group companies mainly consist of organising and implementing initial and non-initial education as well as socially relevant research activities.

Applied standards

The annual accounts have been prepared in accordance with the legal provisions set out in Title 9 Book 2 of the Dutch Civil Code and the authoritative statements in the Guidelines for Annual Reporting, which have been issued by the Council for Annual Reporting. These provisions apply on grounds of the Education Annual Reporting Regulations. In the annual accounts the amounts are stated in millions of euros (unless stated otherwise).

Reporting period

These annual accounts relate to the financial year 2019, which ended on the balance sheet date, 31 December 2019.

Continuity

These annual accounts have been drawn up in accordance with the assumptions of continuity.

Accounting principles for consolidation

The consolidation includes the financial data of the institution and its group companies. These are legal entities in which the institution can exercise dominant control, directly or indirectly, by having the majority of the voting rights or by controlling the financial and operational activities in any other way. Newly acquired participating interests are incorporated in the consolidation as soon as there is a decisive influence on policy. Disposed participating interests are incorporated in the consolidation until the moment that this influence ends.

The assets and liabilities as well as the income and expenditure of group companies are 100% incorporated in the consolidation. The share of third parties in the group equity and in the group result is stated separately.

Pursuant to Article 2:407 (1) of the Dutch Civil Code, group companies may in some cases be excluded from the consolidated financial statements. The consolidation requirement does not apply for data of companies involved in the consolidation whose joint significance is negligible to the company as a whole.

Intercompany transactions, intercompany profits and mutual receivables and liabilities between group companies and other legal entities involved in the consolidation are eliminated. All these intercompany transactions were concluded under normal market conditions.

Accounting policies of group companies have been amended where necessary to align with the applicable accounting policies for the group.

All group companies as well as participating interests are classified as related parties.

Erasmus MC

All income from Education and Research (E&R funds) of Erasmus MC, the cost of the faculty tasks to be charged to it and the income and expenditure of the E&R satellite organisations of the medical cluster to be consolidated are included in the consolidated annual accounts in accordance with the Education Annual Reporting Regulations. Responsibility for the E&R activities is based on the Higher Education and Scientific Research Act (WHW) and the ensuing GUO, which is why the costs and revenues from E&R activities have been consolidated. Given the covenant concluded with Erasmus MC for this purpose, the balance sheet data have not been incorporated in this annual report. This is in accordance with letter RvB/MM/M / ef/0059750/ 223.222 dated 12 December 2002, which the Ministry of Education, Culture and Science approved by letter WO/F/2003/4057 dated 3 February 2003. This course of action is consistent with previous years.

The following legal entities are included in the part of the consolidated annual accounts relating to Erasmus MC R&E:

  • Erasmus MC O&O Holding B.V.
  • Sophia Research B.V.
  • Thoraxcentrum Research B.V.
  • ViroNovative B.V.
  • Eurza Arbo B.V.
  • Neurasmus B.V.
  • Erasmus MC Diabetesstation B.V.
  • Erasmus MC Schiermonnikoog B.V.
  • MI&EUR Implementation and Exploitation B.V.

Statement of cash flow

The statement of cash flow is prepared based on the indirect method. The funds in the statement of cash flow consist of the cash and banks. Interest and dividends received and paid are included in the cash flow from operating activities. Investments in group companies are processed at the acquisition price after deduction of funds present within the acquired company.

Use of estimates

The preparation of the annual accounts requires management to make judgements and estimates and assumptions that affect the application of policies and the reported value of assets and liabilities, and income and expenditure. Actual results may differ from these estimates. The estimates and underlying assumptions are continuously assessed. Revisions to estimates are recognised in the period in which the estimate is revised and in future periods affected by the revision.

Transactions in a foreign currency

Transactions denominated in foreign currency are translated into the relevant functional currency of the group companies at the foreign exchange rate applying at the date of transaction. Foreign currency monetary assets and liabilities are translated into the relevant functional currency of the group companies at the foreign exchange rate applying at the balance sheet date. Exchange differences arising from the settlement of monetary items or from the conversion of monetary items in foreign currency are recognised in the statement of income and expenditure in the period that they arise.

Financial instruments

Financial instruments include investments in shares and bonds, trade and other receivables, cash, loans and other financing obligations, trade payables and other payables. Financial instruments are included at fair value on initial recognition. After initial recognition, financial instruments that are not part of the trading book are measured at amortised cost using the effective interest method, less impairment losses.

EUR only has primary financial instruments that are used to finance its operational activities or that result directly from them, such as (long-term) receivables and liabilities. EUR does not use derivatives or any other form of active hedging to hedge financial risks.

EUR is not exposed to interest rate risk due to the absence of issued and recognised loans to third parties. Interest rate risk is the risk that the value of a financial instrument will fluctuate as a result of changes in the market interest rate. Neither is there a cash flow risk. In other words, the risk that future cash flows associated with a monetary financial instrument will fluctuate in size is absent.

Due to the strong liquidity position of EUR, we consider it virtually impossible for there to be a liquidity risk. Liquidity risk is the risk that the legal entity is unable to acquire the financial resources necessary to meet the obligations.

Given the characteristics of the parties with which EUR does business, in particular central government, government bodies and the EU, there is limited credit risk on receivables. Credit risk is the risk that one contracting party of a financial instrument will not meet its obligation, as a result of which the legal entity has to deal with a financial loss.

EUR runs a limited currency risk because most transactions take place in euros.

Accounting policies for the valuation of assets and liabilities

General

An asset is recognised in the balance sheet when it is probable that the future economic benefits will flow to the educational institution and its value can be reliably determined. A liability is recognised in the balance sheet when it is probable that its settlement will be accompanied by an outflow of resources embodying economic benefits, the amount of which can be measured reliably.

Assets and liabilities (with the exception of group equity) are valued at the acquisition or manufacturing price or (lower) current value. If no specific valuation policy is stated, valuation takes place at the acquisition price or nominal value. In the balance sheet, the statement of income and expenditure and the cash flow statement, reference numbers are included. For these references we refer you to the explanatory notes. Items in foreign currency are valued at year-end closing exchange rates. Exchange differences are recognised directly in the result.

An asset or liability recognised in the balance sheet remains on the balance sheet if a transaction (related to the asset or liability) does not result in a material change in economic reality in respect of the asset or liability.

An asset or liability is no longer recognised in the balance sheet if a transaction results in all or nearly all rights to economic benefits and all or nearly all risks associated with the asset or liability being transferred to a third party. Furthermore, an asset or liability is derecognised from the moment that the conditions of probability of future economic benefits and/or reliability of the determination of the value are no longer met.

Impairment of fixed assets

On each balance sheet date, the group assesses whether there are indications that a fixed asset may be subject to an impairment. If such indications are present, the realisable value of the asset is determined. If it is not possible to determine the realisable value for the individual asset, the realisable value of the cash-flow generating unit to which the asset belongs is determined. An impairment applies if the book value of an asset is higher than the realisable value; the realisable value is the higher of the fair value and the value in use.

Intangible fixed assets

The costs of purchasing and implementing university administrative systems are capitalised as intangible assets. Intangible fixed assets developed in-house are also capitalised. A statutory reserve is formed for the part of the intangible assets developed in-house that has not yet been depreciated.

The intangible fixed assets are valued at acquisition or manufacturing price. Depreciation occurs on a lapsed time basis according to the estimated service life. The expected useful life depends on the type of investment and varies from 5 to 9 years. The intangible fixed assets not yet available are not depreciated.

The depreciation periods are:
1.   Licences       5 years
2.   Software      9 years

Tangible fixed assets

Commercial buildings and land are valued at acquisition price plus additional costs or manufacturing price, less straight-line depreciation over the estimated economic life. Land is not depreciated. The impairment expected on the balance sheet date is taken into account. The tangible fixed assets not yet available are not depreciated. Depreciation takes place as of the moment of delivery. With the exception of the EUC building, there are no restrictions of ownership on the tangible fixed assets.

Land and buildings

Depreciation takes place in accordance with the component method, based on the following components:

1.  Shell 

60 years

2.  Scaling down 

36 years

3.  Interior elements 

10 / 18 years

4.  Technical systems 

5 / 9 / 18 years

5.  Temporary housing

5 / 10 years

6.  Grounds 

10 / 20 years

7.  EUC building

40 years

Accelerated depreciation takes place on assets of buildings for which renovation or demolition is planned.

Other tangible fixed assets are valued at acquisition or manufacturing price, including directly attributable costs, less straight-line depreciation over the expected future useful life, or lower value in use.

The manufacturing price consists of the purchase costs of raw and auxiliary materials and costs that are directly attributable to the production, including installation costs.

Inventory, equipment (incl initial setting up)

EUR applies an activation threshold for a movable property with a purchase value of more than k €15.0. The depreciation periods in years depend on the type of investment and vary from 3 to 15 years. If a planned bulk purchase takes place > = k €200.0 from 1 quotation order, this will be capitalised and depreciated in accordance with the appropriate asset class based on the economic life.

Subsidies on investments are deducted from the purchase or manufacturing price of the assets to which the subsidies relate.

Financial fixed assets

Participating interests

Participating interests where significant influence can be exercised are valued according to the net asset value method. In any case, significant influence is presumed to be present when 20% or more of the voting rights can be cast.

The net asset value is calculated in accordance with the principles that apply to the consolidated annual accounts; for participating interests for which insufficient information is available to adjust these principles, the valuation principles of the relevant participating interest are used. If the valuation of a participating interest according to the net asset value is negative, it is valued at nil. If and insofar as EUR in this situation is wholly or partly responsible for the debts of the participating interest, or if it has the firm intention to enable the participating interest to pay its debts, a provision is made or any receivable is written off.

The initial valuation of purchased participating interests is based on the fair value of the identifiable assets and liabilities at the time of acquisition. Based on the values at initial valuation, the principles that apply to the consolidated annual accounts are applied for the subsequent valuation. Participating interests over which no significant influence can be exercised are valued at acquisition price. If there is a permanent impairment, valuation takes place at this lower value; downward revaluation is charged to the result.

Receivables

The receivables recognised under financial fixed assets are intended to serve the business in a sustainable manner. The receivables recognised under financial fixed assets are initially valued at the fair value of the consideration, after that they are valued at amortised cost based on the effective interest rate. If there is no premium or discount and transaction costs, this valuation is equal to the nominal value.

Inventories

The valuation basis for inventories is valued in accordance with the FIFO method at the lower of cost or net realisable value.

Receivables

General

Current liabilities are valued at the fair value of the consideration (often nominal value). Provision for bad debts is deducted from the book value of the receivable. The position of the provision is determined statically.

Ministry of Education, Culture and Science receivables

Current receivables also include a cash discount applied to the central government grant by the Ministry of Education, Culture and Science. This concerns the part of the central government grant that will not be paid until the following calendar year.

The Ministry of Education, Culture and Science also granted compensation in 2009 and 2010 for the introduction of the bachelor-master structure in the period 2003-2008. This compensation will be paid in the period 2011-2021 via the central government grant. This payment is classified as a long-term receivable.

Work in progress commissioned by third parties

The valuation of work in progress concerns the amounts received less direct material and labour costs, with a surcharge for service-related indirect fixed and variable costs, possibly increased by a surcharge for indirect costs, in particular for housing, administration and general management.

The allocation of revenues, costs and profit for taking on work in progress takes place in proportion to the work performed during the execution of the work (percentage of completion method) on the balance sheet date on the basis of the project costs incurred up to the balance sheet date in proportion to the estimated total project costs. Expenses related to project costs that lead to performance after the balance sheet date are recognised as assets if it is probable that they will generate revenue in a subsequent period. Expected losses on work in progress are immediately recognised as an expense in the statement of income and expenditure.

Depending on the balance, a project in progress is recognised in the balance sheet under ‘Valuation of projects in progress’ (assets) or ‘Project invoices paid in advance and received’ (liabilities).

Expected losses on work in progress are recognised directly in the period in which it is established that there is a loss-making project. If there is an own contribution in a project from the central government grant (co-financing), this is not considered a loss. 

Marketable securities

Marketable securities that belong to the trading portfolio are valued at fair value, usually the closing price. Changes in value are recognised directly in the result. EUR has an approved treasury statute. In terms of public funds, the scheme for investing, borrowing and derivatives is fully complied with. Investments are made with at least a guaranteed principal amount. EUR only invests with institutions with at least an A rating.

Cash and banks

Cash and banks consist of cash, bank balances and deposits that fall due on demand with a term of less than twelve months. Valuation takes place at nominal value.

Equity

Equity consists of general reserves and designated reserves and/or funds. Public and private resources are segmented. The special-purpose reserves are reserves with a limited spending option, made by the board.

The special-purpose funds are reserves with a more limited spending option, made by third parties.

Provisions

General
Provisions include: staff provisions, provisions for loss-making contracts, provisions for environmental obligations and risks and provisions for demolition costs.

Provisions are formed for legally enforceable or actual obligations and losses that exist on the balance sheet date, the size of which is uncertain but can be estimated reliably and it is probable that an outflow of resources will be required to settle the obligation. The provisions are valued at the nominal value of the expenditure that is expected to be necessary to settle the obligations, unless stated otherwise.

Staff provisions
EUR complies with the annual reporting guideline with regard to the formation of a provision for staff provisions that is valued at the discounted value. EUR makes provisions for obligations arising from reorganisations about which the competent authority has made a decision and communicated this before the balance sheet date. The obligations consist of future tide-over allowance costs that may arise as a result of the reorganisations and of the costs of social plans and other regulations that are aimed on the one hand at the prevention of compulsory redundancies and on the other hand at the reduction of benefit costs, as well as expenses related to staff who are exempt from performance.

Obligations arising from non-reorganisations are accounted for under the social policy, reorganisation and legal status provision. The provision is valued at the discounted value. The interest rate this year has been determined on the basis of participation in the lending capacity based on treasury banking increased by 0.1%.

Environmental obligations and risks and demolition costs
The provision for environmental obligations and risks and the provision for demolition costs are valued at nominal value.

Long-term liabilities

Debts with a remaining term of more than one year are designated as long-term liabilities. The repayment amount for the current year is recognised under current liabilities.

Long-term liabilities are initially recognised at fair value and subsequently valued at amortised cost. The initial valuation consists of the amount received, taking into account the premium or discount and less transaction costs.

The difference between the determined book value and the final redemption value, together with the interest due, is determined in such a way that the effective interest is recognised in the statement of income and expenditure during the term of the debts.

Current liabilities

Current liabilities are initially recognised at fair value and subsequently valued at amortised cost.

Accounting principles for determining the result

General

The income and expenditure are allocated to the financial year to which they relate. Profits are only recognised to the extent that they have been realised on the balance sheet date. Losses and risks that originate before the end of the reporting year are taken into account if they have been announced before the adoption of the annual accounts.

Revenue recognition

Central government grants, other government grants and subsidies
The central government grant (lump sum) is recognised in the income at fair value on the basis of the annual allocation.

Tuition and course fees
Tuition fees are recognised in income at fair value and allocated to the year to which they relate, assuming that regular teaching duties are spread evenly over the academic year.

Provision of services
Revenue from the provision of services is recognised in income at fair value and in proportion to the services rendered. This means that the recognised amount is based on the services rendered up to the balance sheet date, in proportion to the total services to be provided.

Project revenue and project costs
For projects in progress, the result of which can be reliably determined, the project income at fair value is recognised as income from work commissioned by third parties. The project costs are included in the statement of income and expenditure, in proportion to the performances delivered on the balance sheet date (this is according to the ‘Percentage of Completion’ method, or the PoC method).

The progress of the work performed is determined on the basis of the project costs incurred up to the balance sheet date in proportion to the estimated total project costs. If the result cannot (yet) be reliably estimated, the income is recognised as income from work commissioned by third parties in the statement of income and expenditure up to the amount of the project costs incurred, which can probably be recovered; the project costs are included in the statement of income and expenditure in the period in which they were incurred. As soon as the result can be reliably determined, revenue is recognised according to the PoC method in proportion to the services performed on the balance sheet date.

The result is determined as the difference between the project revenues and project costs. Project revenues are the contractually agreed amounts including additional and less work, claims and compensation. Insofar as it is probable that these will be realised and can be reliably determined. Project costs are the direct, indirect and allocated costs relating to the activities that can be contractually allocated to the client.

If it is likely that the total project costs will exceed the total project revenues, the expected losses are immediately recognised in the statement of income and expenditure, directly in the projects in progress balance.

Other income

Other income consists of income from rental, secondment of staff, donations, sponsorships, participant contributions, student contributions and other income and is recognised at fair value in the income.

Central government subsidies

Operating subsidies are recognised as income in the statement of income and expenditure in the year in which the subsidised costs were incurred or revenues were lost, or when a subsidised operating deficit occurred. The income is recognised at fair value if it is likely that it will be received and the institution can demonstrate the conditions for receipt.

Subsidies related to investments in tangible fixed assets are deducted from the related asset.

Depreciation

Intangible and tangible fixed assets are depreciated on a lapsed time and straight-line basis. The buildings included under tangible fixed assets are depreciated over the expected future useful life of the asset from the moment of delivery. Land is not depreciated. Tangible fixed assets are depreciated from the time they are first put to use. If the estimated economic life changes, the future depreciation is adjusted.

Book gains and losses on the sale of tangible fixed assets are included under depreciation costs.

Staff remuneration

Staff remuneration
Wages, salaries and social security contributions are included in the statement of income and expenditure on the basis of the employment conditions insofar as they are due to employees. Allocation takes place on the basis of the performances delivered. While not yet paid, the employee remuneration is recognised as a liability on the balance sheet. If the amounts already paid exceed the remuneration payable, the excess is recognised as an accrued asset insofar as the amounts will be repaid by the staff member or deducted from future payments by EUR. 

Other staff costs
Other staff costs, saved leave and anniversaries, etc are recognised or accrued as soon as the obligation arises.

Pension
The pension contributions are accounted for as staff costs when they are due. Prepaid contributions are recognised as other current assets if this results in a refund or a reduction in future payments.

EUR has a pension scheme with ABP pension fund, which is classified as a defined benefit scheme. On the basis of the implementing agreement with this fund and the pension agreement with the employees, EUR has in principle no obligation other than the payment of the pension contributions owed annually. If the funding position becomes so low, ABP pension fund can, among other things, charge a surcharge on the contribution. The actual funding position on the balance sheet date was 97.8%. The average funding position over 2019 was 95.8%.

Financial income and expenditure

Interest received and interest payable
Interest received and interest payable is recognised on a lapsed time basis, taking into account the effective interest rate of the assets and liabilities in question. When processing the interest, the transaction costs on the loans are taken into account. The interest obligations of the current loans and lease obligations are also included in financial income and expenditure.

Value adjustments of financial fixed assets and marketable securities
Value adjustments of marketable securities that belong to the trading book are recognised directly in financial income and expenditure.

Financial lease

The leased property (and the related liability) is recognised in the balance sheet at the start of the lease term at the fair value of the leased property or, if lower, at the discounted value of the minimum lease payments. Both values are determined at the time the lease is entered into. The interest rate applied in calculating the discounted value is the implicit interest rate. If this interest rate cannot be determined practically, the marginal interest rate is applied. The initial direct costs are recognised in the initial valuation of the leased property.

The lease payments are split into interest paid and repayment of the outstanding lease obligation. The interest paid is allocated during the lease term to each period so as to result in a constant periodic interest rate on the remaining net liability related to the finance lease. Conditional lease payments are recognised as expenditure in the period that the conditions for payment are met.

The share in the result of non-consolidated participations in which there is a participating interest

The result of participating interests, in which significant influence is exercised over the business and financial policy, is recognised as the share of the result of the participating interests accruing to the institution. This result is determined in line with the accounting principles applied by EUR. With regard to companies in which no significant influence is exercised over the business and financial policy, the dividend is considered as the result. This is accounted for under financial income and expenditure.

Explanatory Note to the consolidated balance sheet

Fixed assets

1.1 Intangible fixed assets

M€ 4,9 - (2018: M€ 4,1)

  costs from Intellectual Property  
Purchase price 0.4 8.8 9.2
Cumulative depreciation and impairment -0.2 ‑4.9 ‑5.1
Carrying amount on 1 January 2019 0.2 3.9 4.1
       
Investments 0.0 1.9 1.9
Disinvestments -0.1 -0.1 -0.2
Movements 0.0 0.0 0.0
Depreciation -0.1 ‑1.0 ‑1.1
Depreciation on disinvestments 0.1 0.1 0.2
       
Purchase price 0.3 10.6 10.9
Cumulative depreciation and impairment -0.2 ‑5.8 ‑6.0
Carrying amount on 31 December 2019 0.1 4.8 4.9

1.2 Tangible fixed assets

M€ 260,7 - (2018: M€ 268,9)

  Buildings and land Inventory and app (incl initial setting up) Work in progress and advance payments Total
Purchase price 402.2 38.3 8.7 449.2
Cumulative depreciation and impairment ‑160.6 ‑19.7 0.0 ‑180.3
Carrying amount on 1 January 2019 241.6 18.6 8.7 268.9
         
Investments 0.6 2.5 7.4 10.5
Disinvestments -0.6 ‑4.0 0.0 ‑4.6
Movements 6.7 0.8 ‑7.5 0.0
Depreciation ‑13.8 ‑4.9 0.0 ‑18.7
Depreciation on disinvestments 0.6 4.0 0.0 4.6
         
Purchase price 408.9 37.6 8.5 455.0
Cumulative depreciation and impairment ‑173.7 ‑20.6 0.0 ‑194.3
Carrying amount on 31 December 2019 235.1 17.0 8.5 260.7

In 2014, EUR entered into a financial lease contract with the Municipality of Rotterdam for an educational building with a term of 40 years. The net investment as accounted for in the Buildings and lands item in 2014 amounted to M €9.5. This property does not legally belong to EUR.

The WOZ value (the value under the Valuation of Immovable Property Act) and insured value of buildings/land, operating equipment/inventory and books/media collection:

(in M€)

The WOZ value (the value under the Valuation of Immovable Property Act) and insured value of buildings/land, operating equipment/inventory and books/media collection:        
(in M€)        
  WOZ Reference date Insured Reference date
  value   value  
Buildings and land 340.2 2018 490.1 2017
Operating equipment and inventory     150.8 2017
Books/media collection     20.2 2017

1.3 Financial fixed assets

M€ 1,2 - (2018: M€ 1,9)

M€1.2 - (2018: M€1.9)        
  Carrying amount on 1 Jan 2019 Investments and provision of loans Disinvestments and loans taken out Carrying amount on 31 Dec 2019
Receivables from other participating interests1 0.2 0.0 -0.1 0.1
Receivables from the Department for Education, Culture and Science 1.6 0.0 -0.6 1.0
Other receivables3 0.1 0.0 0.0 0.1
  1.9 0.0 ‑0.7 1.2

Current assets

1.4 Inventories

M€ 0,1 - (2018: M€ 0,1)

  2019 2018    
Consumer goods 0.1 0.1    

1.5 Receivables

M€34.3 - (2018: M€34.6) Recognised under the receivables:

  2019   2018  
Debtors 11.5   15.6  
Department for Education, Culture and Science 1 0.9   1.1  
Municipalities and GRs (outsourcing in accordance with the Intermunicipal Statutory Regulations Act) 0.1   0.3  
Students/participants/course participants 1.1   1.2  
Valuation of projects in progress 5.6   3.6  
Other receivables 0.3   0.3  
Provision for bad debts ‑1.3   ‑1.3  
    18.2   20.8
Prepaid expenses 5.4   5.0  
Advances granted 0.4   0.4  
Other current assets 10.3   8.4  
    16.1   13.8
    34.3   34.6

All receivables have maturities of less than one year.

1.6 Cash and banks

M€127.3 - (2018: M€114.2). The cash and banks balance includes the following:

M€127.3 - (2018: M€114.2). The cash and banks balance includes the following:    
  2019 2018
Assets in bank accounts 58.9 57.1
Treasury banking 68.4 57.1

2.1 Equity

M€242.4 - (2018: M€270.5). Equity consists of the general reserve and the special-purpose reserves and funds (divided into public or private).

M€242.4 - (2018: M€270.5). Equity consists of the general reserve and the special-purpose reserves and funds (divided into public or private).        
  Position on 1 Jan 2019 Movements Results Position on 31 Dec 2019
General reserve 110.6 8.5 ‑26.9 92.2
Special-purpose reserve (public)        
Strategic Innovation Budget1 22.6 ‑6.8 0.0 15.8
Funds arising from sector deliberations 2.6 0.0 -0.3 2.3
Reserve related to the capital represented by immovable property2 72.9 0.0 0.0 72.9
Investment reserve 2.4 -0.2 -0.4 1.8
Dividend RSM B.V. 0.8 0.0 0.0 0.8
Replacement reserves 0.1 0.0 -0.1 0.0
Overige3 20.8 ‑1.1 -0.5 19.2
  122.2 ‑8.1 ‑1.3 112.8
Special-purpose reserve (private)        
EUR Holding B.V. 25.2 -0.4 -0.1 24.7
Rotterdam School of Management B.V. 11.0 0.0 0.2 11.2
  36.2 ‑0.4 0.1 35.9
Special-purpose fund (private)        
Tinbergen Institute 0.4 0.0 0.1 0.5
         
Other statutory reserves        
EUR Holding B.V. 0.2 0.0 -0.1 0.1
Erasmus Sport Centre 0.9 0.0 0.0 0.9
Erasmus Sport Accommodations 0.0 0.0 0.0 0.0
  1.1 0.0 ‑0.1 1.0
         
  270.5 0.0 -28.1 242.4

Het garantievermogen is gelijk aan het eigen vermogen.

De bedragen in de kolom mutatie hebben grotendeels betrekking op:

  • Bijstelling bestemde reserves strategische ruimte M€ 6,8 en overige reserveringen M€ 1,1 ten gunste van de  algemene reserve;
  • Dividenduitkering door EUR Holding B.V. aan de EUR ad M€ 0,4.

Reconciliation of the consolidated equity with the company equity

The consolidated equity differs from the equity in the company annual accounts. This difference is set out in the table below.

  Position on 1 Jan 2019 Movements Results Position on 31 Dec 2019
Company equity 269.6 0.0 ‑28.1 241.5
Erasmus Sport Centre 0.9 0.0 0.0 0.9
Erasmus Sport Accommodations 0.0 0.0 0.0 0.0

2.2 Provisions

M€21.3 - (2018: M€23.4). The movements in the provisions are as follows:

  Staff provisions Environmental provisions Demolition provisions Total
Position on 1 January 2019 13.7 7.7 2.0 23.4
         
Additions 7.0 0.2 0.0 7.2
Changes to/unwinding of the discount rate 0.2 0.3 0.0 0.5
Releases ‑1.2 0.0 ‑2.0 ‑3.2
Withdrawals ‑6.4 -0.2 0.0 ‑6.6
Position on 31 December 2019 13.3 8.0 0.0 21.3
         
Current part 5.7 0.0 0.0 5.7
<1 year        
Long-term part 7.6 8.0 0.0 15.6
>1 year        

Staff provisions

The staff provisions are divided as follows:

  Position Additions Changes to/unwinding of discount rate Releases Withdrawals Position Current part
  on 1 Jan         on 31 Dec 2019 <1 year
  2019         2019  
Unemployment contributions 2.4 1.4 0.0 0.0 ‑1.7 2.1 1.1
Social policy, reorganisation and consequences 2.4 1.8 0.0 -0.8 ‑1.5 1.9 1.0
Accumulate leave and sabbatical leave 4.2 0.8 0.0 -0.3 ‑0.9 3.8 1.7
Provision for anniversaries 3.2 0.1 0.2 0.0 -0.3 3.2 0.2
Transition fee 0.7 0.8 0.0 -0.1 -0.3 1.1 0.6
Long-term sick 0.4 2.1 0.0 0.0 ‑1.3 1.2 1.1
Other 0.4 0.0 0.0 0.0 -0.4 0.0 0.0
  13.7 7.0 0.2 ‑1.2 ‑6.4 13.3 5.7

A discount rate of 0.2% is recognised for long-term staff obligations (15 years) (2018: 0.7%).

2.3 Long-term liabilities

M€ 8,6 - (2018: M€ 8,7)

  Legal obligations Other Total
  to municipalities    
Position on 1 January 2019 8.2 0.5 8.7
Movements -0.2 0.1 ‑0.1
Long term on 31 December 2019 8.0 0.6 8.6
       
Term > 5 years 7.1 0.6 7.7

Legal obligations

In 2014, EUR entered into a financial lease contract with the Municipality of Rotterdam for a property, with a term of 40 years.

Other long-term liabilities

Tinbergen Institute

At the end of 2019, the long-term obligation with regard to the Tinbergen Institute is M€0.6. The cooperation agreement between the participating parties (EUR, VU, UVA) includes the distribution of surpluses and/or shortages.

2.4 Current liabilities

M€156.2 - (2018: M€121.3). These liabilities are as follows:

  2019   2018  
Creditors 16.5   17.7  
Municipalities and GRs (outsourcing in accordance with the Intermunicipal Statutory Regulations Act) 0.3   0.5  
Instalments for projects invoiced in advance and received1 26.4   21.9  
Taxes and social insurance contributions 16.4   1.2  
Liabilities relating to pensions 2.8   2.5  
Other current liabilities 0.1   0.2  
    62.5   44.0
Tuition and study fees received in advance 49.9   48.5  
Income received in advance 3.2   3.6  
Sector funds received in advance 1.6   0.0  
Holiday pay and days 15.8   14.9  
Costs still payable2 23.2   9.2  
Other current liabilities 0.0   1.1  
    93.7   77.3
    156.2   121.3

Rights and obligations not included in the balance sheet

Rights not recognised

EUR has various rental agreements with external parties. In total this regards M€4.0.

Guarantees not recognised

  • The cooperation agreement with Samenwerking Short Stay (SSH) Utrecht stipulates that until 1 September 2027, EUR guarantees M€0.1 per year for the costs of vacant housing for international students.
  • EUR will match any subsidies to be granted by NWO-WOTRO in the context of Sustainable Development Goals to be granted for an annual amount of M€0.1 up to and including 2020.
  • RSM B.V. has provided a bank guarantee under which RSM B.V. guarantees the costs resulting from unpaid course fees by participants in the RSM MBA programme. The total guarantee regards an amount of M€0.2.

Obligations not recognised

Other obligations not recognised in the balance sheet

  • EUR has an agreement with ENGIE Energie B.V. regarding performance-oriented technical maintenance and management. The annual costs are M€1.9.
  • EUR has concluded a contract with Asito B.V. for cleaning work. The annual costs are M€3.9.

Fiscal entity
EUR Holding B.V. and its operating companies and RSM B.V. are part of the fiscal entity for company tax and sales tax purposes together with Erasmus University Rotterdam. Under the Collection of State Taxes Act, the company is jointly and severally liable for the taxes owed by the group.

         
  Shorter than Between 1 and 5 years Longer than Total on 31 Dec 2019
  1 year   5 years  
Rights 1.8  3.6  0.1  5.5 
Guarantees 0.6  1.3  0.3  2.2 
         
Obligations not recognised        
Housing rental 0.7 2.5 1.7 4.9
Equipment rental 0.0 0.0 0.0 0.0
Software licences 2.0 2.1 0.0 4.1
Publishers’ licences 0.5 0.2 0.0 0.7
Investments 2.1 0.9 0.0 3.0
Claims 5.1 0.0 0.0 5.1
Other obligations not recognised in the balance sheet 13.6 9.9 0.0 23.5
Total obligations 24.0 15.6 1.7 41.3

Explanatory note to the consolidated statement of income and expenditure

3.1 Central government grants

M€ 311,7 - (2018: M€ 300,3)

Central government grants from the Department for Education, Culture and Science 404.0 391.4
Less: income transfers from central government grants ‑92.3 ‑91.1
  311.7 300.3

The central government grant granted by the Ministry of Education, Culture and Science was M€406.3 in 2019. An adjustment of the receivable from the Ministry of Education, Culture and Science under the Bama compensation of M€0.6, a cash reduction payment of M€0.2 and sector funds for university research in Social Sciences and Humanities, SSH in the amount of M€1.6 was deducted directly from this. The allocated central government grant for the workshop function AZ in the amount of M€92.3 was deducted from the central government grant.

3.2 Study, course, tuition and examination fees

M€ 62,4 - (2018: M€ 61,2)

  2019 2018
Tuition fees 62.4 61.2

Compared to 2018, the tuition fees show an increase of M€1.2, which is partly due to a combination of an increase in the tuition fee rate and more enrolments.

3.3 Income from work commissioned by third parties

M€205.0 - (2018: M€191.6). All revenue arising from the service projects is accounted for in income from work commissioned by third parties pro rata to the time spent.

  2019   2018  
Contract education   47.9   50.2
Contract research        
Other non-profit organisations 29.2   28.9  
Companies and other 46.8   41.3  
National authorities 13.1   8.6  
International organisations 29.7   27.7  
NWO (excl ZonMw) 29.5   24.0  
    148.3   130.5
Other   8.8   10.9
    205.0   191.6

3.4 Other income

M€101.7 - (2018: M€96.3). This revenue is divided as follows:

  2019 2018
Rental 3.8 3.8
Secondment of staff 19.9 20.3
Gifts 0.3 0.4
Sponsorships 0.7 0.6
Participants’ contributions 0.7 0.6
Students’ contributions 2.0 2.0
Catering 0.1 0.1
Other 74.2 68.5
  101.7 96.3
Specification of other income - other 2019 2018
Pro Rata VAT 0.9 0.6
Contributions from third parties1 57.4 51.3
Revenue arising from services rendered 13.0 13.6
Other 2.9 3.0
  74.2 68.5

4.1 Staff costs

M€467.7 - (2018: M€425.6). Staff expenditure is as follows:

  2019   2018  
Wages and salaries 317.8   294.6  
Social charges 38.0   35.1  
Pension costs 46.7   40.3  
    402.5   370.0
Additions to staff provisions1 6.7   5.3  
External employees 37.8   33.0  
Other 23.3   19.7  
Other staff costs   67.8   58.0
Less: payments   ‑2.6   ‑2.4
    467.7   425.6

Staff structure

Average number of FTEs 2019 2018
EUR sec 2,474 2,343
EUR Holding B.V. 248 249
RSM B.V. 114 103
Erasmus Sport Centre 17 17
Erasmus Sport Accommodations 0 0
Erasmus MC (not employed by EUR) 2,387 2,23
Total 5,239 4,941

The reports regarding Erasmus MC employees, including the companies consolidated therein, are included in the Erasmus MC annual accounts.

4.2 Depreciation

M€ 37,2 - (2018: M€ 33,1)

  2019 2018
Intangible fixed assets 1.0 1.1
Tangible fixed assets1 36.2 32.0
  37.2 33.1

4.3 Housing costs

M€ 27,3 - (2018: M€ 29,4)

  2019 2018
Rental 2.6 2.7
Insurance 0.3 0.2
Maintenance 10.6 9.1
Energy and water 6.2 7.5
Cleaning costs 4.0 3.7
Taxes and levies 3.4 3.5
Other 0.2 2.7
  27.3 29.4
Specification of housing costs - other 2019 2018
Environmental obligations and risks1 0.1 0.1
Demolition provisions ‑2.0 0.2
Security and safety 1.7 1.8
Other 0.4 0.6
  0.2 2.7

4.4 Other expenditure

M€ 157,8 - (2018: M€ 153,3)

Specification of housing costs - other 2019 2018
Environmental obligations and risks1 0.1 0.1
Demolition provisions ‑2.0 0.2
Security and safety 1.7 1.8
Other 0.4 0.6
  0.2 2.7
Specification other expenditure - other 2019 2018
Products and consumables 24.3 44.6
Subsidies 19.4 17.9
Travel and accommodation expenses 17.6 14.0
Outsourced work 23.0 23.9
General costs 13.8 10.7
Books, journals, etc 7.7 7.8
Org and legal recommendations 1.3 1.2
Representation expenses 4.4 4.4
Other 19.8 9.8
  131.3 134.3

The following fees have been charged to the company, its subsidiaries and other companies that it consolidates, by audit firms, as referred to in Articles 2:382a(1) and (2) of the Dutch Civil Code.

Amounts in k€ External auditor fees in Deloitte   External auditor fees in Deloitte (Netwerk *1)   Fee paid to other audit firms (for network plus approach) Total in 2019
  (Basic activities)          
- Auditing of the annual accounts 408.3   0.0   23.5 431.8
- Other audit engagements 194.8   0.0   27.2 222.0
- Advisory services with regard to taxes 0.0   31.5   2.5 34.0
- Other services 0.0   300.5   155.0 455.5
Total 603.1   332.0   208.2 1143.3
Amounts in k€ External auditor fees in Deloitte   External auditor fees in Deloitte (Netwerk *1)   Fee paid to other audit firms (for network plus approach) Total in 2018
  (Basic activities)          
- Auditing of the annual accounts 441.3   0.0   29.5 470.8
- Other audit engagements 101.0   0.0   11.9 112.9
- Advisory services with regard to taxes 0.0   12.7   0.0 12.7
- Other services 0.0   169.0   224.9 393.9
Total 542.3   181.7   266.3 990.3

EUR applies the Network-Plus approach in the overview above.

Deloitte Network *1: included under network *1: Deloitte Consulting, Deloitte Belastingadviseurs and any foreign Deloitte organisations.

5 Financial income and expenditure

M€ -0,3 - (2018: M€ -0,2)

  2019 2018
Interest received  0.3   0.3 
Value adjustments of financial fixed assets and marketable securities* -0.5 -0.4
Interest paid -0.1 -0.1
  ‑0.3 -0.2

6 Taxes

M€ 0,1 – (2018: M€ 0,6)

  2019 2018
Taxes 0.1 0.6

The mandatory corporate income tax payable by EUR Holding B.V. (M€0.05) and RSM B.V. (M€0.05) is accounted for here.

7 Share of third parties in group result

M€ 18,5 - (2018: M€ 11,7)

  2019 2018
Erasmus MC 18.5 11.7

Events after the balance sheet date

The outbreak of the coronavirus (COVID-19), a virus that causes potentially fatal respiratory infections, started in China (Wuhan) and then spread to Europe and the rest of the world. Due to the rapid spread of the virus and the accompanying emergency measures imposed by the governments of the affected countries, this virus has an impact on economic conditions worldwide. The duration of the measures taken will depend on the development of the virus outbreak.

In line with the government's imposed measures, EUR has redesigned its activities and kept activities on campus to a minimum. Lectures are provided online and students and staff work from home as much as possible. The question is how big the impact will be and how it will affect the university's financial position. The question is also what is the expected impact on the turnover, the result, the liquidity and the equity of EUR. An assessment shows that the financial effects of the coronacrisis (especially in the long term) are difficult to estimate. Estimates therefore have considerable uncertainties and differ significantly between the faculties, which also applies to the universities themselves. The expectations are dynamic and subject to adjustments. Developments in the crisis and the national agreements that have been made with regard to compensation, for instance, make the estimates subject to interim changes. The first estimate is that the expected effects of covid-19 in 2020 will be between M€8.0 - M€11.0 for the faculties and professional services on Campus Woudestein. The impact on the Woudestein companies in 2020 amounts to approximately M€5.0. However, the estimates are early estimates that still contain high levels of uncertainty. The negative impact on the result is caused by the expected loss of income, in particular due to less influx of (international) students, and additional costs. The expected additional costs are mainly caused by additional costs for Student Housing, delays in research projects and extra IT costs and more use of employment agencies. Based on the current estimate, it is concluded that the continuity of EUR Woudestein, EUR Holding B.V. with its operating companies and RSM B.V. is guaranteed. EUR's own funds are sufficient to absorb the negative effects of the coronacrisis. EUR Woudestein also has sufficient liquidity to absorb the additional costs. While the current estimate of the financial impact does provide a picture, it is premature to draw any conclusions from this.  The financial impact will therefore be further monitored and analysed.

Consolidated parties

Name Legal form Registered Participation % Code * Act Equity on 31 Dec 2019 Result in 2019 Turnover in 2019 Art 2:403 Dutch Civil Code Consolidation
    office              
EUR Holding B.V. BV Rotterdam 100 3 24.8 -0.2 35.8 No Yes
Consolidated acquisitions of EUR Holding B.V.                  
Corporate Communication Centre (CCC) B.V. BV Rotterdam 100 1.2 0.9 0.0 0.9 No Yes
Erasmus Marketing Institute (EMI) B.V. BV Rotterdam 100 1 0.1 -0.1 0.0 No Yes
Instituut SMO B.V. BV The Hague 100 2 0.1 -0.1 0.1 No Yes
Fiscaal Economisch Instituut (FEI) B.V. BV Rotterdam 100 1 1.1 0.0 0.2 No Yes
Erasmus Academie B.V. BV Rotterdam 100 1.2 1.2 0.0 3.0 No Yes
Erasmus University Centre for Contract Research and Business Support (ERBS) B.V. BV Rotterdam 100 2 0.2 -0.1 1.3 No Yes
Erasmus Universiteit Rotterdam Accountancy, Auditing en Controlling (EURAC) B.V. BV Rotterdam 100 1.2 5.6 0.5 9.6 No Yes
RISBO Contractresearch B.V. BV Rotterdam 100 2 1.8 0.1 1.0 No Yes
Sociaal-Economisch Onderzoek Rotterdam (SEOR) B.V. BV Rotterdam 100 2 0.6 0.0 0.9 No Yes
Institute for Housing and Urban Development Studies (IHS) B.V. BV Rotterdam 100 1.2 5.9 0.1 0.2 No Yes
Erasmus Centre for Urban, Port and Transport Economics (EUPT) B.V. BV Rotterdam 100 1.2 1.0 0.1 1.8 No Yes
Erasmus SmartPort Rotterdam (ESPR) B.V. BV Rotterdam 100 1.2 0.6 0.0 0.8 No Yes
Erasmus Centre for Entrepreueurship B.V. Holland Entrepreneurship (ECE) B.V. BV Rotterdam 100 1.2 0.1 0.0 1.0 No Yes
Erasmus Centrum voor Zorgbestuur B.V. (ECZ B.V.) BV Rotterdam 100 1 2.0 0.1 2.4 No Yes
Institute for Medical Technology Assessment (iMTA) B.V. BV Rotterdam 100 2 1.5 0.1 1.4 No Yes
Dutch Research Institute for Transitions (DRIFT) B.V. BV Rotterdam 100 1.2 0.6 0.0 2.1 No Yes
Erasmus Institute for Business Economics (EIBE) B.V. BV Rotterdam 100 2 1.2 -0.6 0.0 No Yes
EURFlex B.V. BV Rotterdam 100 3 0.6 0.1 0.0 No Yes
EQI B.V. BV Rotterdam 100 2 0.1 0.0 1.5 No Yes
ESL ExEd B.V. BV Rotterdam 100 1 -0.8 -0.2 0.4 No Yes
RSM B.V. BV Rotterdam 100 1.2 11.2 0.2 21.2 No Yes
Consolidated acquisitions of RSM B.V.                  
RSM Executive Education B.V. BV Rotterdam 100 1 0.4 0.1 0.6 No Yes
Erasmus MC O&O Holding B.V. BV Rotterdam 100 2 16.2 1.7 0.1 No Yes
Consolidated acquisitions of Erasmus MC O&O Holding B.V.                  
Sophia Research B.V. BV Rotterdam 100 2 8.7 1.3 27.4 No Yes
Thoraxcentrum Research B.V. BV Rotterdam 100 2 4.2 0.3 5.5 No Yes
ViroNovative B.V. BV Rotterdam 100 2 1.5 0.1 1.4 No Yes
Eurza Arbo B.V. BV Rotterdam 100 2 0.0 0.0 0.0 No Yes
Neurasmus B.V. BV Rotterdam 100 2 0.0 0.0 0.4 No Yes
Erasmus MC Diabetesstation B.V. BV Rotterdam 78 2 0.0 0.0 0.0 No Yes
Erasmus MC Schiermonnikoog B.V. BV Rotterdam 100 2 0.0 0.0 0.0 No Yes
MI&EUR Implementation and Exploitation B.V. BV Rotterdam 100 2 1.1 0.0 0.2 No Yes
                   
Erasmus Sport Centre Stichting Rotterdam 0 3 0.9 0.0 3.0 No Yes
Erasmus Sport-accommodaties Stichting Rotterdam 0 3 0.0 0.0 0.0 No Yes
Universitair Historisch Kabinet van de Erasmus Universiteit Stichting Rotterdam 0 3 0.0 0.0 0.0 No Yes

Company balance sheet on 31 December 2019 after profit appropriation

in M€         2019 2018
1. ASSETS          
             
  Fixed assets          
1.1 Intangible fixed assets       4.7 3.8
1.2 Tangible fixed assets       255.5 263.9
1.3 Financial fixed assets       37.9 39.3
             
  Total fixed assets       298.1 307.0
             
             
  Current assets          
1.4 Inventories       0.1 0.1
1.5 Receivables       28.5 25.5
1.6 Cash and banks       71.9 59.0
             
  Total current assets       100.5 84.6
             
  Total assets       398.6 391.6
             
             
2. LIABILITIES          
             
2.1 Equity       241.5 269.6
             
2.2 Provisions       21.2 23.3
2.3 Long-term liabilities       8.6 8.7
2.4 Current liabilities       127.3 90.0
             
  Total liabilities       398.6 391.6

Company statement of income and expenditure over 2019

in M€         Result Budget Plan Result
          2019 2019 2018
3. INCOME            
3.1 Central government grant       311.7  304.2  300.3
3.2 Study, course, tuition and registration fees       62.4  61.4  61.2
3.3 Income from work commissioned by third parties       29.4  35.8  33.1
3.4 Other income       26.4  28.0  26.5
               
  Total income       429.9  429.4  421.1
               
               
               
4. EXPENDITURE            
4.1 Staff costs       238.6  218.2  224.6
4.2 Depreciation       18.6  22.9  17.3
4.3 Housing costs       17.5  20.7  19.5
4.4 Other expenditure       183.2  170.5  165.7
               
  Total expenditure       457.9  432.3  427.1
               
               
  Balance of income and expenditure       ‑28.0 ‑2.9 ‑6.0
               
               
5. Financial income and expenditure       -0.1  0.2  -0.1
               
6. Results of participating interests       0.0 -0.3 1.6
               

Company cash flow statement for 2019

in M€ 2019   2018  
Cash flows from operational activities        
Result on ordinary business operations   ‑28.0   ‑6.0
         
Adjustments before reconciliation of operating result        
Adjustments before depreciation 18.6   17.3  
Increase (decrease) in provisions -2.1   1.4  
Other adjustments before reconciliation of the operating result 0.0   0.0  
    16.5   18.7
Changes in working capital        
Increase (decrease) in inventories 0.0   0.0  
Increase (decrease) in current receivables ‑3.0   -0.1  
Increase (decrease) in current liabilities 37.5   6.7  
    34.5   6.6
Cash flow from business operations   23.0   19.3
         
Interest received   0.0   0.0
Interest paid   0.1   0.1
Total cash flow from operational activities   22.9   19.2
         
Cash flow from investment activities        
Acquisition of intangible fixed assets 1.8   0.0  
Acquisition of tangible fixed assets 9.3   16.8  
Revenue from the disposal of tangible fixed assets 0.0   0.0  
Investments in participating interests and cooperative arrangements -0.4   -0.6  
Increase (decrease) in loans to the Department for Education, Culture and Science and the Ministry of Economic Affairs -0.6   -0.6  
Increase (decrease) in other financial fixed assets 0.0   0.0  
Total cash flow from investment activities   ‑10.1   ‑15.6
         
Cash flow from financing activities        
Increase (decrease) in long-term liabilities 0.0   0.0  
Revenue or repayment of long-term liabilities 0.1   0.3  
Total cash flow from financing activities   0.1   ‑0.3
Other balance sheet movements        
Increase (decrease) in cash and banks   12.9   3.3
         
Cash and banks position on 1 January   59.0   55.7
Cash and banks position on 31 December   71.9   59.0
Movements in cash and banks   12.9   3.3

Accounting principles for the company annual accounts

General

Accounting principles for preparing the annual accounts
The company annual accounts have been prepared in accordance with the legal provisions set out in Title 9 Book 2 of the Dutch Civil Code and the authoritative statements in the Guidelines for Annual Reporting, which have been issued by the Council for Annual Reporting. These provisions apply on grounds of the Education Annual Reporting Regulations. In the annual accounts the amounts are stated in millions of euros (unless stated otherwise).

Accounting principles for valuation and establishing the result
Accounting principles for valuation and establishing the result for the company annual accounts are the same as those applied for the consolidated annual accounts. For the accounting principles for valuing assets and liabilities and for establishing the result we refer you to the explanatory notes to the consolidated balance sheet and the statement of income and expenditure. Where items in the company balance sheet and the company statement of income and expenditure are not further explained below, reference is made to the accounting principles on the consolidated balance sheet and statement of income and expenditure.

Participating interests
Participating interests in group companies and other participating interests in which significant influence can be exercised are valued according to the net asset value method. In any case, significant influence is presumed to be present when 20% or more of the voting rights can be cast.

Accounting principles for the WNT
The Top Income Standardisation Act (WNT) rules that both the remuneration and any compensation upon termination of employment are subject to maximums. The statutory maximum remuneration in 2019 is €194,000. This maximum consists of the components of remuneration, taxable fixed and variable expense allowances and provisions for remuneration payable in the long term. The WNT stipulates that as a severance payment for a director, a maximum amount of €75,000 gross may be agreed.

Explanatory note to the company balance sheet

1.1 Intangible fixed assets

M€ 4,7 - (2018: M€ 3,8)

  Development Conc Compensation & rights Prepayments Total
  costs from Intellectual Property    
Purchase price 0.0 8.4 0.0 8.4
Cumulative depreciation and impairment 0.0 ‑4.6 0.0 ‑4.6
Carrying amount on 1 January 2019 0.0 3.8 0.0 3.8
         
Investments 0.0 1.8 0.0 1.8
Disinvestments 0.0 0.0 0.0 0.0
Movements 0.0 0.0 0.0 0.0
Depreciation 0.0 ‑0.9 0.0 ‑0.9
Depreciation on disinvestments 0.0 0.0 0.0 0.0
         
Purchase price 0.0 10.2 0.0 10.2
Cumulative depreciation and impairment 0.0 ‑5.5 0.0 ‑5.5
Carrying amount on 31 December 2019 0.0 4.7 0.0 4.7

1.2 Tangible fixed assets

M€ 255,5 - (2018: M€ 263,9)

  Buildings and land Inventory and app (incl initial setting up) Work in progress and advance payments Total
Purchase price 392.8 34.3 8.8 435.9
Cumulative depreciation and impairment ‑154.5 ‑17.5 0.0 ‑172.0
Carrying amount on 1 January 2019 238.3 16.8 8.8 263.9
         
Investments 0.1 1.9 7.3 9.3
Disinvestments -0.4 ‑3.8 0.0 ‑4.2
Movements 6.7 0.8 ‑7.5 0.0
Depreciation ‑13.4 ‑4.3 0.0 ‑17.7
Depreciation on disinvestments 0.4 3.8 0.0 4.2
         
Purchase price 399.2 33.2 8.6 441.0
Cumulative depreciation and impairment ‑167.5 ‑18.0 0.0 ‑185.5
Carrying amount on 31 December 2019 231.7 15.2 8.6 255.5

In 2014, EUR entered into a financial lease with the Municipality of Rotterdam for an educational building with a term of 40 years. The net investment as accounted for in the Buildings and lands item in 2014 amounted to M €9.5. This property does not legally belong to EUR.

The WOZ value (the value under the Valuation of Immovable Property Act) and insured value of buildings/land, operating equipment/inventory and books/media collection (in M€)

The WOZ value (the value under the Valuation of Immovable Property Act) and insured value of buildings/land, operating equipment/inventory and books/media collection (in M€)        
  WOZ Reference date Insured Reference date
  value   value  
Buildings and land 340.2 2018 490.1 2017
Operating equipment and inventory     150.8 2017

1.3 Financial fixed assets

M€ 37,9 - (2018: M€ 39,3)

  Position on 1 Jan 2019 Investments and loans provided Disinvestments and repayments Share in the result of participating interests Position on 31 Dec 2019
Participating interests in group companies 36.4 0.0 -0.4 0.0 36.0
Receivables from group companies 1.2 0.0 -0.4 0.0 0.8
Receivables from the Department for Education, Culture and Science 1 1.6 0.0 -0.6 0.0 1.0
Other receivables 2 0.1 0.0 0.0 0.0 0.1
Total 39.3 0.0 ‑1.4 0.0 37.9
                     
Name Legal Registered Code activities* Equity on 31 Dec 19 Operating balance in 2019 Turnover Statement Consolidation percentage Participation percentage  
  form office         Article 2:403 Dutch Civil Code      
              yes/no      
EUR BV Rotterdam 02/ 1/2003 24.8 -0.2 35.8 no 100% 100%  
Holding B.V.                    
RSM B.V. BV Rotterdam  1‑Feb 11.2 0.2 21.2 no 100% 100%  
Name of associated party Description of object Composition of the board and directors
EUR Holding B.V To provide the facilities for the University’s primary activities in the form of operating companies (100% subsidiaries of EUR Holding) in which education
and research can be accommodated if the university units see reasons for this.
Prof. H.R. Commandeur/Director
Rotterdam School of Management B.V. To organise and arrange for privately financed non-initial management courses (full-time or part-time) accredited by Erasmus University Rotterdam in the field of business administration (or to have this arranged), in close connection with the courses
provided by Erasmus University Rotterdam, in particular the Faculty of Business Administration
of EUR.
Mr prof. E. Waarts/Statutory Director
Mr R.S. Hageman/Statutory Director

Current assets

1.4 Inventories

M€ 0,1 - (2018: M€ 0,1)

  2019 2018
Consumer goods 0.1 0.1

1.5 Receivables

M€ 28,5 - (2018: M€ 25,5)

  2019   2018  
Debtors 4.5   5.5  
OCW1 0.9   1.1  
Municipalities and GRs (outsourcing in accordance with the Intermunicipal Statutory Regulations Act) 0.1   0.3  
Group companies 4.5   3.9  
Students/participants/course participants 1.1   1.2  
Valuation of projects in progress 4.2   2.8  
Provision for bad debts ‑1.1   ‑1.1  
    14.2   13.7
Prepaid expenses 4.6   4.2  
Advances granted 0.4   0.4  
Other current assets 9.3   7.2  
Other current assets   14.3   11.8
    28.5   25.5

All receivables have maturities of less than one year.

Valuation of projects in progress

Valuation of projects in progress    
Project expenses still to be claimed 2019 2018
Project expenses incurred 26.5 17.0
Provisional results 0.0 0.0
Charged instalments ‑22.3 ‑14.2

The movements in the provisions due to bad debts:

  2019 2018
Position on 1 January ‑1.1 ‑1.1
Other movements 0.0 0.0

1.6 Cash and banks

M€71.9 - (2018: M€59.0). The cash and banks balance includes the following:

  2019 2018
Assets in bank accounts 3.5 1.8
Treasury banking 68.4 57.2

The cash and banks are freely available.

2.1 Equity

M€ 241,5 - (2018: M€ 269,6)

Equity consists of the general reserve and the special-purpose reserves and funds (divided into public or private).

Equity movements:

Equity consists of the general reserve and the special-purpose reserves and funds (divided into public or private).        
Equity movements:        
  Position on 1 Jan 2019 Movements Results Position on 31 Dec 2019
General reserve 110.6 8.5 ‑26.9 92.2
         
Special-purpose reserve (public)        
Strategic Innovation Budget1 22.6 ‑6.8 0.0 15.8
Funds arising from sector deliberations 2.6 0.0 -0.3 2.3
Reserve from capital represented by immoveable property2 72.9 0.0 0.0 72.9
Investment reserve 2.4 -0.2 -0.4 1.8
Dividend RSM B.V. 0.8 0.0 0.0 0.8
Replacement reserves 0.1 0.0 -0.1 0.0
Overige³ 20.8 ‑1.1 -0.5 19.2
  122.2 ‑8.1 ‑1.3 112.8
Special-purpose reserve (private)        
EUR Holding B.V. 25.2 -0.4 -0.1 24.7
Rotterdam School of Management B.V. 11.0 0.0 0.2 11.2
  36.2 ‑0.4 0.1 35.9
Special-purpose fund (private)        
Tinbergen Institute 0.4 0.0 0.1 0.5
         
Other statutory reserves        
EUR Holding B.V. 0.2 0.0 ‑0.1 0.1
         
         
  269.6 0.0 -28.1 241.5

The guarantee capital is equal to the equity capital.

The amounts in the movements column largely relate to:

  • Adjustment of special-purpose reserves for the strategic innovation budget M€6.8 and other reserves M€1.1 in favour of the general reserve;
  • Dividend payment by EUR Holding B.V. to EUR of M€0.4.

Proposal for profit appropriation

The net results over 2019 are divided as follows:

       
General reserve     ‑26.9
Special-purpose reserve (public)     ‑1.3
Special-purpose reserve (private)     0.0
Special-purpose fund (private)     0.1
Other statutory reserves     0.0
Total     -28.1

This net result is exclusive the net result of Erasmus MC.

2.2 Provisions

M€ 21,2 - (2018: M€ 23,3)

  Staff provisions Environmental provisions Demolition provisions Total
Position on 1 January 2019 13.6 7.7 2.0 23.3
         
Additions 7.0 0.2 0.0 7.2
Changes to/ 0.2 0.3 0.0 0.5
unwinding of the discount rate        
Releases ‑1.2 0.0 ‑2.0 ‑3.2
Withdrawals ‑6.4 -0.2 0.0 ‑6.6
Position on 31 December 2019 13.2 8.0 0.0 21.2
         
Current part <1 years 5.7 0.0 0.0 5.7
Long-term part >1 year 7.5 8.0 0.0 15.5

No discount rate/unwinding has been applied to the environmental and demolition provisions because the rates are negligible up to 5 years.

Staff provisions

The staff provisions are further divided as follows:

  Position on 1 Additions Changes to/unwinding of the discount rate Releases Withdrawals Position on 31 Dec 2019 Current part Long-term part
  Jan‑19           <1 year >1 year
Unemployment contributions 2.4 1.4 0.0 0.0 ‑1.7 2.1 1.1 1.0
Social policy, reorganisation and consequences 2.4 1.8 0.0 -0.8 ‑1.5 1.9 1.0 0.9
Accumulate leave and sabbatical leave 4.2 0.8 0.0 -0.3 ‑0.9 3.8 1.7 2.1
Provision for anniversaries 3.1 0.1 0.2 0.0 -0.3 3.1 0.2 2.9
Transition fee 0.7 0.8 0.0 -0.1 -0.3 1.1 0.6 0.5
Long-term sick 0.4 2.1 0.0 0.0 ‑1.3 1.2 1.1 0.1
Other 0.4 0.0 0.0 0.0 -0.4 0.0 0.0 0.0
  13.6 7.0 0.2 ‑1.2 ‑6.4 13.2 5.7 7.5

A discount rate of 0.2% is recognised for long-term staff obligations (15 years) (2018: 0.7%).

2.3 Long-term liabilities

M€ 8,6 - (2018: M€ 8,7)

  Legal obligations to municipalities Other Total
Position on 1 January 2019 8.2 0.5 8.7
Movements -0.2 0.1 -0.1
       
Long term on 31 December 2019 8.0 0.6 8.6
Term > 5 years 7.1 0.6 7.7

Repayment obligations within 12 months after the end of the financial year in the amount of M€0.2 are not included in the aforementioned amounts, but are recognised under current liabilities.

Legal obligations

In 2014, EUR entered into a financial lease contract with the Municipality of Rotterdam for a property, with a term of 40 years.

Other long-term liabilities

Tinbergen Institute

At the end of 2019, the long-term obligation with regard to the Tinbergen Institute is M€0.6. The cooperation agreement between the participating parties (EUR, VU, UVA) includes the distribution of surpluses and/or shortages.

2.4 Current liabilities

M€ 127,3 - (2018: M€ 90,0)

  2019   2018  
Creditors 14.5   15.2  
Municipalities and GRs (outsourcing in accordance with the Intermunicipal Statutory Regulations Act) 0.3   0.5  
Debts to group companies 2.7   2.9  
Instalments for projects invoiced in advance and received1 23.2   18.1  
Taxes and social insurance contributions 15.7   0.2  
Liabilities relating to pensions 2.8   2.4  
Other current liabilities 0.0   0.1  
    59.2   39.4
Tuition and study fees received in advance 30.2   29.3  
Income received in advance 2.6   1.3  
Sector funds received in advance 1.6   0.0  
Holiday pay and days 13.5   13.0  
Costs still payable2 20.2   5.9  
Other current liabilities 0.0   1.1  
    68.1   50.6
    127.3   90.0

Instalments for projects invoiced in advance and received

Project expenses claimed in advance 2019 2018
Project expenses incurred ‑23.6 ‑48.8
Provisional results 0.3 0.4
Charged instalments 46.5 66.5
  23.2 18.1

Rights and obligations not included in the balance sheet

Rights not recognised

  • EUR has various rental agreements with related parties. In total this regards M€3.2.
  • EUR has various rental agreements with external parties. In total this regards M€4.0.

Guarantees not recognised

  • The cooperation agreement with Samenwerking Short Stay (SSH) Utrecht stipulates that until 1 September 2027, EUR guarantees M€0.1 per year for the costs of vacant housing for international students.
  • EUR will match any subsidies to be granted by NWO-WOTRO in the context of Sustainable Development Goals to be granted for an annual amount of M€0.1 up to and including 2020.

Obligations not recognised

Other obligations not recognised in the balance sheet

  • EUR has an agreement with ENGIE Energie B.V. regarding performance-oriented technical maintenance and management. The annual costs are M€1.9.
  • EUR has concluded a contract with Asito B.V. for cleaning work. The annual costs are M€3.9.
  Shorter than Between 1 and 5 years Longer than Total on 31 Dec 2019
  1 year   5 years  
Rights 4.2 10.9 0.1 15.2
Guarantees 0.5 1.3 0.3 2.1
         
Obligations not recognised        
Housing rental 0.7 2.5 1.7 4.9
Software licences 2.0 2.1 0.0 4.1
Publishers’ licences 0.5 0.2 0.0 0.7
Investments 2.1 0.9 0.0 3.0
Claims 5.1 0.0 0.0 5.1
Other obligations not recognised in the balance sheet 18.7 9.8 0.0 28.5
Total obligations 29.1 15.6 1.7 46.3

Explanatory note to the company statement of income and expenditure

3.1 Central government grants

M€ 311,7 - (2018: M€ 300,3)

Central government grants from the Department for Education, Culture and Science 404.0 391.4    
Less: Income transfers from central government grants ‑92.3 ‑91.1    
  311.7 300.3    

The central government grant granted by the Ministry of Education, Culture and Science was M€406.3 in 2019. An adjustment of the receivable from the Ministry of Education, Culture and Science under the Bama compensation of M€0.6, a cash reduction payment of M€0.2 and sector funds for university research in Social Sciences and Humanities, SSH in the amount of M€1.6 was deducted directly from this. The allocated central government grant for the workshop function AZ in the amount of M€92.3 was deducted from the central government grant.

3.2 Study, course, tuition and examination fees

M€ 62,4 - (2018: M€ 61,2)

  2019 2018    
Tuition fees 62.4 61.2    

Compared to 2018, the tuition fees show an increase of M€1.2, which is partly due to a combination of an increase in the tuition fee rate and more enrolments.

3.3 Income from work commissioned by third parties

M€29.4 - (2018: M€33,1) All revenue arising from the service projects is accounted for in income from work commissioned by third parties pro rata to the time spent.

  2019   2018  
Contractonderwijs¹   3.4   8.4
Contract research        
Other non-profit organisations 5.1   4.2  
Companies and other 1.2   1.0  
National authorities 2.1   3.6  
International organisations 8.0   6.8  
NWO (excl ZonMw) 5.7   6.0  
    22.1   21.6
Other   3.9   3.1
    29.4   33.1

3.4 Other income

M€ 26,4 - (2018: M€ 26,5)

  2019 2018
Rental 6.8 6.6
Secondment of staff 5.2 4.6
Gifts 0.3 0.4
Sponsorships 0.7 0.6
Participants’ contributions 0.4 0.3
Students’ contributions 0.7 0.8
Other 12.3 13.2
  26.4 26.5
Specification of other income - Other 2019 2018
Pro Rata VAT 0.9 0.6
Contributions from third parties 5.3 5.8
Revenue arising from services rendered 4.3 5.2
Other 1.8 1.6
  12.3 13.2
Specification of other income - Other 2019 2018
Pro Rata VAT 0.9 0.6
Contributions from third parties 5.3 5.8
Revenue arising from services rendered 4.3 5.2
Other 1.8 1.6
  12.3 13.2

4.1 Staff costs

M€ 238,6 - (2018: M€ 224,6)

  2019   2018  
Wages and salaries 152.1   142.8  
Social charges 17.6   16.6  
Pension costs 23.6   20.5  
    193.3   179.9
         
Additions to staff provisions1 6.0   4.4  
External employees 28.1   30.1  
Other 12.4   11.3  
Other staff costs   46.5   45.8
Less: payments   ‑1.2   ‑1.1
    238.6   224.6

Staff structure

Average number of FTEs 2019 2018
Academic Staff 1,504 1,438
Supporting and management staff 970 905
Total 2,474 2,343

Standardisation of Top Income Act overview

Pursuant to the Standardisation of Top Income Act (WNT), an overview of the remuneration (and position) of employees who are employed by the legal entity EUR, including the members of the Executive Board, is included below. The reports regarding Erasmus MC employees, including the companies consolidated therein, are included in the Erasmus MC annual accounts.

As of 2016, the classification of education for the application of the WNT is no longer based on sub-sectors, but on a system of 'complexity points'. Under the new rules each institution assigns itself complexity points in the financial reporting document according to a specific system (laid down in the Regulations for the Remuneration of Top Officers for Education Sectors), and from this deduces the class to which they must be classified for the application of the WNT. The following complexity points apply to EUR:

Department for Education, Culture and Science sector Number of complexity
  points
Average total income 10
Average number of funded pupils, participants or students 5
The weighted number of education types or sectors 5
Total number of complexity points 20

The maximum score (class G) applies based on 20 complexity points. The statutory maximum remuneration on 1 January 2019 is €194,000. The remuneration granted corresponds to this.

WNT Top Managers

Senior top managers with or without an employment contract from the 13th month of the job performance or former senior top managers.

Table 1a. Remuneration of top managers

  Ms K.F.B. Baele Mr R.C.M.E. Engels Ms R.M. Ritsema van Eck
Employment contract Yes Yes Yes
Position(s) President of the Executive Board Rector Magnificus Member of the Executive Board
Start of position  1‑Jan  1‑Jan  1‑Jan
End of position 30‑Nov 31‑Dec 31‑Dec
Scope of position (FTE) 1.0 1.0 1.0
Remuneration plus taxable expense allowances  198,839   172,308   172,347 
Remuneration payable at a future date  20,115   21,200   21,147 
Total remuneration 218,954 193,508 193,494
Individual remuneration maximum applying 177,523 194 194
Reasons for exceeding the remuneration standard See note n/a n/a
Start of position in previous reporting year  1‑Jan  1‑May  1‑Nov
End of position in previous reporting year 31‑Dec 31‑Dec 31‑Dec
Scope of position (FTE) in previous reporting year  1.0   1.0   1.0 
Remuneration plus taxable expense allowances  210,106   113,825   27,796 
Remuneration payable at a future date in previous reporting year  20,338   13,011   3,250 
Total remuneration in previous reporting year  230,444   126,836   31,046 
Individual remuneration maximum applying in previous reporting year  189,000   126,863   31,586 

Table 1b. Senior top managers with no employment contract

  Mr H.N.J. Smits Mr H.N.J. Smits
Calendar year 2019 2018
Position(s) Interim President of the Executive Board n/a
Start of position  1‑Dec n/a
End of position 31‑Dec n/a
Number of calendar months during which the job was performed in the calendar year 1 n/a
Maximum hourly rate in the calendar year 187 182
Maximums based on the standard amounts per month 25,9 n/a
Individual maximum applying in the whole calendar month period 1 through 12 25,9 25,9
  20,944 20,944
Is the actual hourly rate lower than the (average) maximum hourly rate? yes n/a
Fee in the period in question 20,944 n/a
Total fee in the whole calendar month period 1 through 12 20,944 20,944
-/- Undue payments, not yet recovered n/a n/a
Total fee, exclusive VAT 20,944 20,944
Reason why the exceeding of the maximum is or is not permitted n/a n/a
Explanatory note to the receivable due to undue payment n/a n/a

Table 1c. Supervisory top managers

Position(s) President of the governance committee Member of the governance committee Member of the governance committee Member of the governance committee Member of the governance committee Member of the governance committee
Start of position  1‑Jan n/a  1‑Oct  1‑Jan  1‑Jan  1‑Jan
End of position 31‑Dec n/a 30‑Nov 31‑Dec 31‑Dec 30‑Nov
Remuneration plus taxable expense allowances  28,350  n/a  3,233   19,400   19,400   17,750 
Undue payments, not yet recovered n/a n/a n/a n/a n/a n/a
Total remuneration  28,350  n/a  3,233   19,400   19,400   17,750 
Individual remuneration maximum applying  29,100  n/a  3,242   19,400   19,400   17,752 
Reason why the exceeding of the maximum is or is not permitted n/a n/a n/a n/a n/a n/a
Explanatory note to the receivable due to undue payment n/a n/a n/a n/a n/a n/a
Start of position in previous reporting year  1‑May  1‑Jan  1‑Jan  1‑Jan  1‑Jan  1‑Jan
End of position in previous reporting year 31‑Dec 30‑Apr 30‑Apr 31‑Dec 31‑Dec 31‑Dec
Position(s) in previous reporting year President of the governance committee Member of the governance committee President of the governance committee Member of the governance committee Member of the governance committee Member of the governance committee
Remuneration in previous reporting year  18,272   5,967   8,949   18,900   18,900   18,900 
Individual remuneration maximum applying in previous reporting year  19,029   6,214   9,321   18,900   18,900   18,900 

Table 3a. Remuneration of managers

Position(s) Start of position End of position Scope of position (FTE) Remuneration plus taxable expense allowances Remuneration payable at a future date Total remuneration Individual remuneration maximum applying Explanation for exceeding the remuneration Start of position in previous reporting year End of position in previous reporting year Scope of position (FTE) in previous reporting year Remuneration plus taxable expense allowances in previous reporting year Remuneration payable at a future date in previous reporting year Total remuneration in previous reporting year
Professor  1‑Jan 31‑Dec 0.8  144,154   17,006   161,160   155,200  1, 2, 4  1‑Jan 31‑Dec 0.8 139,461 15,519 154,98
Professor  1‑Jan 31‑Dec 0.6  118,663   11,617   130,280   116,400  1, 5  1‑Jan 31‑Dec 0.3 61,408 6,339 67,747
Professor  1‑Jan 31‑Dec 1.0  214,685   20,842   235,527   194,000  2, 5, 6  1‑Jan 31‑Dec 1.0 218,857 19,143 238
Professor  1‑Jan 31‑Dec 1.0  184,633   21,376   206,009   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 176,972 19,392 196,364
Professor  1‑Jan 31‑Dec 1.0  189,775   20,447   210,222   194,000  1, 2, 6  1‑Jan 31‑Dec 1.0 165,109 18,324 183,433
Professor  1‑Jan 31‑Dec 1.0  194,604   21,675   216,279   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 194,412 19,841 214,253
Professor  1‑Jan 31‑Dec 0.8  158,376   16,804   175,180   155,200  2, 4, 6  1‑Jan 31‑Dec 0.8 154,37 15,286 169,656
Professor  1‑Jan 31‑Dec 1.0  177,326   21,246   198,572   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 174,739 19,47 194,209
Professor  1‑Jan 31‑Dec 1.0  204,518   21,683   226,201   194,000  1, 2, 4, 6  1‑Jan 31‑Dec 1.0 218,241 20,24 238,481
Professor/Dean  1‑Jan 31‑Dec 1.0  194,882   21,597   216,479   194,000  1, 2, 4, 5  1‑Jan 31‑Dec 1.0 194,629 19,893 214,522
Professor  1‑Jan 31‑Dec 1.0  211,386   21,776   233,162   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 216,805 20,165 236,97
Professor  1‑Jan 31‑Dec 1.0  202,355   21,162   223,517   194,000  1, 2, 4, 6  1‑Jan 31‑Dec 1.0 189,217 19,432 208,649
Professor  1‑Jan 31‑Dec 1.0  182,336   21,255   203,591   194,000  2, 4, 5  1‑Jan 31‑Dec 1.0 181,063 19,527 200,59
Dean  1‑Jan 31‑Dec 1.0  174,404   21,183   195,587   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 180,175 19,403 199,578
Professor  1‑Jan 31‑Dec 1.0  190,548   21,222   211,770   194,000  1, 2, 4, 6  1‑Jan 31‑Dec 1.0 170,432 19,094 189,526
Professor  1‑Jan 31‑Dec 1.0  221,441   22,406   243,847   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 215,713 20,698 236,411
Professor  1‑Jan 31‑Dec 0.5  89,049   10,870   99,919   97,000  1, 2, 4  1‑Jan 31‑Dec 0.5 96,248 10,027 106,275
Professor  1‑Jan 31‑Dec 1.0  175,650   20,406   196,056   194,000  2, 4, 6  1‑Jan 31‑Dec 1.0 168,991 19,005 187,996
Professor  1‑Jan 31‑Dec 1.0  178,678   21,504   200,182   194,000  1, 2, 4  1‑Jan 31‑Dec 1.0 183,895 19,792 203,687
Professor  1‑Jan 31‑Dec 1.0  193,565   21,419   214,984   194,000  1, 2, 4, 6  1‑Jan 31‑Dec 1.0 168,355 19,093 187,448
Professor  1‑Jan 31‑Dec 0.2  39,411   4,326   43,737   38,800  1, 2 n/a n/a n/a n/a n/a n/a

4.2 Depreciation

M€ 18,6 - (2018: M€ 17,3)

  2019 2018
Intangible fixed assets 0.9 0.9
Tangible fixed assets 17.7 16.4
  18.6 17.3

4.3 Housing costs

M€ 17,5 - (2018: M€ 19,5)

Rental 1.8 1.8
Insurance 0.3 0.2
Maintenance 6.0 4.9
Energy and water 2.8 2.9
Cleaning costs 3.9 3.6
Taxes and levies 2.2 2.6
Other 0.5 3.5
  17.5 19.5
Specification of housing costs - other 2019 2018
Environmental obligations and risks 0.6 1.2
Demolition provisions ‑2.0 0.2
Security and safety 1.7 1.8
Other 0.2 0.3

4.4 Other expenditure

M€ 183,2 - (2018: M€ 165,7)

  2019 2018
Administrative and management costs 0.4 0.6
Inventory and equipment 11.0 9.8
Additions to provisions for loss-making contracts 0.0 -0.1
Other 171.8 155.4
  183.2 165.7
Specification other expenditure - other 2019 2018
Products and consumables 0.2  0.3 
Subsidies1 126.3 108.3
Travel and accommodation expenses 6.2 6.1
Outsourced work 18.3 19.1
General costs 3.5 4.2
Books, journals, etc 6.1 6.2
Org and legal recommendations 0.7 0.8
Representation expenses 2.2 2.4
Other 8.3 8.0
  171.8 155.4

5 Financial income and expenditure

M€ -0,1 - (2018: M€ -0,1)

  2019 2018
Interest paid -0.1 -0.1
  ‑0.1 ‑0.1

6 Results of participating interests

M€ 0,0 - (2018: M€ 1,6)

  2019 2018
EUR Holding B.V. -0.2 0.8
Rotterdam School of Management B.V. 0.2 0.8
  0.0 1.6

Events after the balance sheet date

For a description of the events after the balance sheet date relevant to EUR, reference is made to the events after the balance sheet date in the notes to the consolidated annual accounts.

Rotterdam, 29 June 2020  

Executive Board    

H.N.J. Smits, Interim President  

Professor R.C.M.E. Engels, Rector Magnificus

Ms R.M. Ritsema van Eck

Rotterdam, 29 June 2020

Supervisory Board

Professor J.W. Winter, President

Mr P.H.J.M. Visée

Professor C.J. van Duijn

Other details

The Independent Auditor’s Report

To: the Executive Board and the Supervisory Board of Erasmus University Rotterdam

A. STATEMENT ON THE ANNUAL ACCOUNTS INCLUDED IN THE ANNUAL REPORT OVER 2019

Our approving opinion concerning the fairness, consistency and clarity of the accounts and our adverse opinion concerning the irregularities

We have audited the 2019 annual accounts of Erasmus University Rotterdam in Rotterdam.

In our opinion:

  • The annual accounts included in the annual report give a true and fair view of the size and composition of the assets of Erasmus University Rotterdam on 31 December 2019 and of the result for 2019 in accordance with the Education Annual Reporting Regulations;
  • The income and expenditure and the balance sheet movements in 2019 recognised in these annual accounts, due to the importance of the matter described in paragraph 'The basis for our approving opinion concerning the fairness, consistency and clarity of the accounts’ have not been established validly in accordance with the provisions set out in the relevant legislation and regulations in paragraph 2.3.1 Reference framework of the Education Accountants Protocol OCW 2019 for an amount of approximately €27.8 million.

The annual accounts comprise:

1. the consolidated balance sheet on 31 December 2019;

2. the company statement of income and expenditure over 2019; and

3. the explanatory note and overview of the accounting principles applied for the financial reporting and other explanatory notes.

The basis for approving opinion concerning the fairness, consistency and clarity of the accounts and our adverse opinion concerning the irregularities

The annual accounts recognise expenditure and balance sheet movements associated with purchases in 2019 for an amount of approximately €27.8 million (including VAT) that have not been established in accordance with European procurement rules.

We conducted our audit in accordance with Dutch law, which also includes the Dutch audit standards and the Education Accountant Protocol Ministry of Education, Culture and Science 2019. Our responsibilities under this heading are described in the section ‘Our responsibilities for the auditing of the annual accounts’.

We are independent of Erasmus University Rotterdam as required by the Regulation on the independence of accountants in assurance engagements (ViO) and other engagement-relevant independence rules in the Netherlands. We have also complied with the Ordinance on Professional Behaviour and Professional Rules (VGBA).

In our opinion the auditing information we received is sufficient and suitable as a basis for our approving opinion concerning the fairness, consistency and clarity of the accounts and our adverse opinion concerning the irregularities.

Section emphasising the impact of the coronavirus

The coronavirus has also affected Erasmus University Rotterdam. In the notes on page 112 in the annual accounts, the management has disclosed the current impact and its plans to deal with these events or conditions. They also indicate that it is currently not possible for them to estimate the impact of the coronavirus on the financial performance and health of Erasmus University Rotterdam. Our opinion has not been modified as a result of this matter.

Compliance with the WNT rule against overlapping has not been checked

In accordance with the WNT 2019 Control Protocol, we have not checked the rule against overlapping referred to in Article 1.6a WNT and Article 5 (1) (j) WNT of the Implementing Regulation. This means that we have not checked whether or not there has been a violation of standards by a senior top manager due to any employment as a senior top manager at other institutions subject to WNT, and whether the information required in this context is correct and complete.

B. STATEMENT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT

In addition to the annual accounts and our auditor's report thereon, the annual report contains other information, which includes:

  • the report of the board;
  • the other details;
  • the attachments.

With the exception of the consequences in the section ‘The basis for our approving opinion concerning the fairness, consistency and clarity of the accounts and our adverse opinion concerning the irregularities’, based on the following audit work we believe that the other information:

  • is consistent with the annual accounts and does not contain deviations of material importance;
     
  • contains all the information required on grounds of the Education Annual Reporting Regulations and section 2.2.2. of the Board report of the Education Accountant Protocol Ministry of Education, Culture and Science 2019.

We have read the other information and, based on our knowledge and understanding obtained from the audit of the annual accounts or otherwise, have considered whether the other information contains material misstatements.

Our audit work complies with the requirements of the Regulations for Annual Reporting on Education, section 2.2.2. Board report of the Education Accountant Protocol Ministry of Education, Culture and Science 2019 and the Dutch Standard 720. This audit work does not have the same depth as our audit work with regard to the annual accounts.

The board is responsible for drawing up the other information, including the report of the board and the other information in accordance with the Education Annual Reporting Regulations and other Ministry of Education, Culture and Science legislation and regulations.

C. DESCRIPTION OF RESPONSIBILITIES REGARDING THE ANNUAL ACCOUNTS

Responsibilities of the Executive Board and the Supervisory Board regarding the annual accounts

The Executive Board is responsible for the preparation and fair presentation of the annual accounts, in accordance with the Education Annual Reporting Regulations. The Executive Board is also responsible for ensuring the income and expenditure as well as the balance sheet movements recognised in the annual accounts are legally adopted, in accordance with the provisions laid down in the relevant laws and regulations.

In this context, the Executive Board is also responsible for such internal control as the Executive Board deems necessary to enable the preparation of the annual accounts and compliance with the relevant laws and regulations without any material misstatement, whether due to error or fraud.

When preparing the annual accounts, the Executive Board must consider whether the educational institution is able to continue its activities in the future. Under the aforementioned reporting system, the Executive Board must prepare the annual accounts based on the going concern assumption, unless the Executive Board intends to liquidate the educational institution or to terminate the activities or if termination is the only realistic alternative. The Executive Board must explain events and circumstances in which there may be reasonable doubt as to whether the educational institution can continue its activities in the future in the annual accounts.

The Supervisory Board is responsible for supervising the educational institution's financial reporting process.

Our responsibilities for the auditing of the annual accounts

Our responsibility is to plan and perform an audit engagement in such a way that we obtain sufficient appropriate audit evidence for the opinion we are issuing.

Our audit has been performed with a high, but not absolute, level of assurance, which means that we may not detect all material errors and fraud during our audit.

Deviations can arise as a result of errors or fraud and are of material significance if it can reasonably be expected that they, individually or jointly, can influence the economic decisions taken by users on the basis of these annual accounts. The materiality affects the nature, timing and extent of our audit work and the evaluation of the effect of identified misstatements on our opinion.

We have performed this audit professionally critically and, where relevant, have applied professional judgement in accordance with the Dutch audit standards, the Education Accountants Protocol Ministry of Education, Culture and Science 2019, ethical regulations and the independence requirements. Our audit included:

  • identifying and assessing the risks:
    - that the annual accounts contain material misstatements, whether due to error or fraud,
    - of the unlawful creation of income and expenditure and balance sheet movements, which are of material significance.
    Determining and performing audit work in response to these risks and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In the event of fraud it is more difficult to detect a material misstatement than in the event of errors. Fraud may involve collusion, forgery, deliberate failure to record transactions, deliberate misrepresentation or breaches of internal control;
     
  • obtaining an understanding of internal control relevant to the audit for the purpose of selecting audit procedures that are appropriate in the circumstances. This audit work is not intended to express an opinion on the effectiveness of the internal control of the educational institution;
     
  • ​​evaluating the appropriateness of the accounting principles used for financial reporting and the justifiability tests used and evaluating the reasonableness of estimates made by the Executive Board and the explanatory note regarding these in the annual accounts;
     
  • determining that the assumption of continuity applied by the Executive Board is acceptable. And, based on the audit evidence obtained, determining whether there are events and circumstances that could cast serious doubt on whether the educational institution can continue its activities. If we conclude that there is a material uncertainty, we are required to draw attention in our auditor's report to the relevant related notes in the annual accounts. If the notes are inadequate, we must adjust our statement. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or circumstances may result in an institution no longer being able to continue as a going concern;
     
  • evaluating the presentation, structure and content of the annual accounts and the notes contained therein; and
     
  • evaluating whether the annual accounts give a true and fair view of the underlying transactions and events and whether the income and expenditure recognised in the annual accounts and the balance sheet movements have been lawfully prepared in all material aspects.

Given our ultimate responsibility for the opinion, we are responsible for directing, supervising and carrying out the group audit. In this context, we have determined the nature and scope of the audit work to be performed for the group entities. The scope and/or the risk profile of the group entities or the activities is a decisive factor in this. On this basis, we selected the group entities for which an audit or assessment of the complete financial information or specific items was necessary.

We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We determine the key points of our audit of the annual accounts based on all matters that we have discussed with the Supervisory Board. We describe these key points in our auditor's report, unless prohibited by law or regulation or in extremely rare circumstances where disclosure is not in the interest of society.
 

Rotterdam, 9 July 2020
 

Deloitte Accountants B.V.
 

Signed: Mr G.J. Straatman RA

Volgend hoofdstuk: Appendix 1: Governance and Participation bodies