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Board Report and Financial Statements Board Report 2010 4 –21

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Board Report and Financial Statements Board Report 2010 4 –21 Aalto University Foundation Board Report and Financial Statements Board Report 2010 4 –21 Introduction 4 Purpose of the Foundation 5 Governance 6 Research, Education, and Artistic Activities 7– 9 Societal Impact 10 –11 Campus and Infrastructure 12 Personnel 13 Endowment 14 Risk Management 15 Sustainable Development 16 Financial Status of 2010 17–19 Group Companies 20 Essential Activities after the Financial Year 20 Financial Statements 2010 22–54 Group Profit and Loss Account 22–23 Group Balance Sheet 24–25 Group Cash Flow Statement 26–27 Foundation Profit and Loss Account 28–29 Foundation Balance Sheet 30–31 Foundation Cash Flow Statement 32–33 Accounting Principles 34–37 Notes to Profit and Loss Statements 38–41 Notes to Balance Sheets 42–49 Other Notes 50–51 Signatures for Annual Report and Financial Statements 52 The Auditor’s Note 53 List of Accounting Records and Storage Methods 54 Annual Report 2010 Introduction Aalto University Foundation was one of the two of Technology), their special purpose funds by the university, were transferred to the Aalto foundation-universities established in 2010 in and university funds into the Aalto University University Foundation from the Finnish state, Finland. The change in the legal status of the Foundation. As laid down by the new Universi- with the Finnish state remaining the minor- universities enhances their autonomy and finan- ties Act and the Act on the implementation of the ity shareholder through Senate Properties. In cial independence. The change also promotes the Universities Act, all operations, personnel, stu- addition, full ownership of HSE Holding Com- strategic leadership of the university board and dents, assets, rights, liabilities, and obligations pany (currently Aalto Holding Company) was the president. In line with the change in the legal of the three former universities were transferred transferred to the Aalto University Foundation status, the new universities became indepen- to the Aalto University Foundation as of January as well as the ownerships of a few other smaller dent employers, with the civil servant contracts 1, 2010. companies. changed to employment contracts. Simultaneously with the transfer of the opera- Year 2010 was the Aalto University Foundation's tions of the three universities to the foundation, first with full-scale university activities. The the shares of several companies were transferred new Finnish Universities Act came into force on to the ownership of the foundation, thus form- 1.1.2010, merging three former universities (the ing the Aalto University Group. As of January 1, Helsinki School of Economics, University of Art 2010, 66.7% of the shares of Aalto Properties Oy, and Design Helsinki, and the Helsinki University a company owning the majority of facilities used 4 ANNUAL REPORT 2010 Purpose of the Foundation Based on the Aalto University Foundation char- interaction with the rest of society and with the and the environment. The foundation respects ter, the purpose of the foundation is to promote international scientific and artistic communities the freedom of science, art, and education. free research and scientific and artistic erudi- and advances the impact of research and artistic tion, provide higher education based on research, activities on society. As its mission, Aalto University works towards a and educate students to serve their country better world through top-quality, interdisciplin- and humanity. The foundation is an autono- The special national mission of the foundation ary research, pioneering education, surpassing mous multidisciplinary art and science com- is to sustain Finland's success, to contribute to traditional boundaries and through renewal. munity which operates in the fields of technol- Finnish society, its economy, technology, art and Aalto University educates responsible, broad- ogy, economics, and art and design and fields design, internationalization and competitive- minded experts to act as society’s visionaries closely related to them. The foundation works in ness and to promote the welfare of humankind and change agents. ALL OPERATIONS OF THE UNIVERSITY ARE GUIDED BY THE UNIVERSITY’S FIVE VALUES: EETTISYYS, PASSION FREEDOM COURAGE RESPONSIBILITY avoimuusHIGH ETHICS, ja tasa- for exploration. to be creative to influence to accept, care, arvoopenness, perustana. and critical and excel and inspire and equality. The Aalto University Foundation strategy services, top-quality infrastructure, and a emphasizes high-quality, long-term research, tangible societal impact are recognized as the teaching based on the latest research, excel- essential requirements to fulfil the goals set for lence in crossing borders, and a strong interna- the university. tional focus. Academic leadership, professional 5 ANNUAL REPORT 2010 Governance The elements of the university governance are defined in the University Strategy, the Finnish Universities Act, the Finnish Foundations Act, the charter of the foundation, and the university by-laws. The governance of the university is guided by the university strategy, values, and the following principles: NEUTRALITY, EXCELLENCE OPENNESS AND INTEGRITY, AND EQUALITY IN LEADERSHIP TRANSPARENCY ACCOUNTABILITY AND SERVICE The main governing bodies of the university are The board appoints among its members two ad- and that the investment activities are prudently the board of trustees, the president, and the Aca- visory committees: an audit committee and an organized. The president can delegate his or her demic Affairs Committee. HR committee. In addition, the board invites the executive power to other organs or employees of members of the advisory investment committee. the foundation. The board of trustees consists of seven exter- nal members, including the chairperson and the The board is responsible for the proper internal The Academic Affairs Committee is defined by vice-chairperson. The board is responsible for control of the university accounting and invest- the Finnish Universities Act and is formed by decisions concerning the university strategy, the ment activities. The board can delegate executive elections among the university faculty, staff, annual operating plan and budget, the annual power to the president or other organs or employ- and students. The Committee decides on degree report and financial statements as well as the by- ees of the foundation. requirements and curricular principles in the laws and other university regulations. The board university according to the guidelines set by leg- appoints the president, the vice presidents, and The president of the foundation leads the univer- islation. In addition, the Academic Affairs Com- other direct subordinates of the president and sity operations according to the duties set forth mittee appoints a Nomination Committee and sets their duties and terms of office. The board of in the Finnish Universities Act and in line with appoints the members of the board of trustees trustees ensures that the operations of the uni- the orders and instructions of the board. The based on the proposition of the Nomination Com- versity are properly organized and the assets are president is responsible for managing the univer- mittee. The Nomination Committee consists of invested in a safe and productive manner. sity in a financially efficient manner and ensur- five members, out of which two represent the pri- ing that the accounting is in line with legislation vate founding organizations of the university. 6 ANNUAL REPORT 2010 Research The vision and intuition of talented research- board, and 45 new Tenure Track positions were The university received European Research ers – academic freedom – is the cornerstone of opened for competition based on quality of re- Council (ERC) grants, four academy professors, research and teaching at Aalto University. The search evaluated in a Research Assessment Ex- and thirty-one academy researchers. In addi- university aims to become an internationally ercise conducted in 2009. However, the impact tion, the university had eleven Professors and acclaimed multidisciplinary research univer- of the new tenure recruitments on the university four Fellows through the Finland Distinguished sity where research and education are promoted costs during the financial year was very minor, Professor Programme (FiDiPro). hand-in-hand. Aalto University’s unique profile since the recruitment of high-quality candidates - one of combining science and art, technology, is a time-consuming process. Hence, the surplus The university obtained significant external economics and design - stimulates interdisci- of the financial year will be transferred for use research funding: 42 million euro from the plinary collaboration and facilitates the birth of during the next one to two years to finance the Finnish Funding Agency for Technology and new innovations. These are utilized in providing new tenure track positions as recruitments pro- Innovation (Tekes), 27 million euro from the the students of the university more flexibility in ceed. The implementation of the Tenure Track Academy of Finland, and 12 million euro from planning their studies. career system will continue for several years. European Union research funding programmes. The research co-funding obtained from corpo- The most important initiative supporting Aalto As an indication of research quality, during its rate partners was 21 million euro. The number of research strategy is the implementation of the first year of operation in 2010, the president of published international
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