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Annual Report 2019 2 Annual Report 2019 Contents ANNUAL REPORT 2019 2 ANNUAL REPORT 2019 CONTENTS CONTENTS 1. Statement by the management and auditors’ report .................................................................................. 3 1.1 Statement by the management on the annual report .................................................................. 3 1.2 Independent auditors’ report ........................................................................................................................ 4 2. Report ....................................................................................................................................................................................... 6 2.1.1 Management .......................................................................................................................................... 6 2.1.2 Strategic overview ............................................................................................................................. 7 2.1.3 Key figures ................................................................................................................................................ 9 2.2 Management’s report......................................................................................................................................... 10 2.3 Financial review .................................................................................................................................................... 17 2.3.1 Quality grant ........................................................................................................................................... 21 2.4 Performance reporting ...................................................................................................................................... 23 2.5 Outlook for 2020 .................................................................................................................................................... 26 3. Financial statements ........................................................................................................................................................ 27 3.1 Accounting policie ............................................................................................................................................... 27 3.2 Income statement 1 January - 31 December ..................................................................................... 30 3.3 Balance sheet as at 31 December ............................................................................................................ 31 3.4 Statement of changes in equity ................................................................................................................... 32 3.5 Cash flow statement ........................................................................................................................................... 32 3.6 Notes to the financial statements ............................................................................................................... 32 4. Appendices ............................................................................................................................................................................ 38 4.1 Overview of activity types (divisional financial statements) ...................................................... 38 4.2 Financial highlights ............................................................................................................................................ 39 5. Sino-Danish Center for Education and Research (SDC) ............................................................................. 40 Colophon ................................................................................................................................................................................ 42 ANNUAL REPORT 2019 STATEMENT BY THE MANAGEMENT AND 3 AUDITORS’ REPORT 1. STATEMENT BY THE MANAGEMENT AND AUDITORS’ REPORT 1.1 STATEMENT BY THE MANAGEMENT ON THE ANNUAL REPORT The board has today considered and adopted the annual report It is hereby confirmed: of Aarhus University. 1. that the annual report gives a true and fair view, which means that it is free from material misstatement and omissions and The annual report has been prepared in accordance with guide- that the presentation of and reporting on targets in the annual lines from the Danish Ministry of Finance and Danish Ministerial report are adequate; Order no. 116 of 19 February 2018 on State Accounting, the Ministry 2. that the financial transactions included in the financial state- of Finance’s Economic Administrative Guidelines, and Danish ments are consistent with the reported grants, legislation and Ministerial Order no. 870 of 26 August 2019 on the Funding and other provisions, as well as agreements made and general Auditing etc. of Universities. practice; and 3. that procedures have been set up to ensure the financially efficient administration of the funds and the operations of the Aarhus, 1 April 2020 institutions covered by the annual report. Brian Bech Nielsen Arnold Boon Berit Eika Rector University director Pro-rector BOARD Connie Hedegaard Steen Riisgaard Caroline Søeborg Ahlefeldt Chair Substitute Peter Balling Anne Skorkjær Binderkrantz Jørgen Carlsen Jens Peter Christensen Uffe Pilegård Larsen Hanna-Louise Schou Nielsen Ditte Marie Thomsen Astrid Söderbergh Widding ANNUAL REPORT 2019 STATEMENT BY THE MANAGEMENT AND 4 AUDITORS’ REPORT 1.2 INDEPENDENT AUDITORS’ REPORT To the board of Aarhus University Auditor’s report on the financial statements In connection with the preparation of the financial statements, the management is responsible for assessing the university’s ability to Opinion continue as a going concern; for providing information on matters We have audited the financial statements of Aarhus University for relating to its continued operations, where relevant; and for pre- the financial year 1 January - 31 December 2019. The financial paring financial statements based on a going concern principle, statements comprise the accounting policies, income statement, unless the management either intends to liquidate the university balance sheet, cash flow statement and notes 1-17. The financial or to cease operations, or has no realistic alternative but to do so. statements have been prepared in accordance with Ministerial Order no. 116 of 19 February 2018 on State Accounting, the Ministry The auditor’s responsibility for the audit of the financial statements of Finance’s Economic Administrative Guidelines, and Ministerial Our goal is to obtain reasonable assurance that the financial state- Order no. 870 of 26 August 2019 on the Funding and Auditing ments as a whole are free from material misstatement, whether etc. of Universities (hereinafter referred to as the ‘government due to fraud or error, and to issue an auditor’s report with an accounting rules’). opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit performed in accordance with In our opinion, the financial statements are correct in all mate- international standards on auditing and the additional require- rial respects, i.e. prepared in accordance with the government ments applicable in Denmark, as well as generally accepted accounting rules. public auditing standards, cf. Ministerial Order no. 870 of 26 August 2019 on the Funding and Auditing etc. of Universities, will always identify material misstatements, when they exist. Misstatements Basis of opinion can arise from fraud or error, and are considered material if, indi- We conducted our audit in accordance with international auditing vidually or in the aggregate, they could reasonably be expected standards and the additional requirements applicable in Denmark, to influence the economic decisions of users made on the basis as well as generally accepted public auditing standards, whereby of these financial statements. the audit is performed on the basis of Ministerial Order no. 870 of 26 August 2019 on the Funding and Auditing etc. of Universities. As part of an audit performed in accordance with international Our responsibility according to these standards and requirements standards on auditing and the additional requirements applica- is described in more detail in the auditor’s report, in the section ‘The ble in Denmark, as well as generally accepted public auditing auditor’s responsibility for the audit of the financial statements’. standards, cf. Ministerial Order no. 870 of 26 August 2019 on the We are independent of the university in accordance with IESBA’s Funding and Auditing etc. of Universities, we exercise professional international ethics standards for accountants and the additional judgment and maintain professional scepticism throughout the requirements applicable in Denmark, just as we have fulfilled our audit. We also: other ethical obligations under these rules and requirements. In our opinion, the audit evidence obtained is sufficient and provides • Identify and assess the risk of material misstatement in the finan- a suitable basis for our opinion. cial statements, whether due to fraud or error, design and perform audit procedures in response to these risks, and obtain audit evi- Management’s responsibility for the financial statements dence that is sufficient and appropriate to provide a basis for our The management is responsible for preparing financial statements audit opinion. The risk of not detecting material misstatements re- which are correct
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