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Annual Report 2014 Table of Contents DKK million FTE 2,200 5,000 1,800 Education revenues 4,000 1,400 Academic staff FTE Grant-funded research 1,000 3,000 2007 2008 2009 2010 2011 2012 2013 2014 Annual Report 2014 Table of Contents Review, Management’s Statement and Auditor’s Report 3 Company Information 3 Management’s Statement 4 Independent Auditor’s Report 5 Management Report 2014 7 Strategic Priorities 11 Development of management and organization 20 The physical environment – buildings 22 Financial Review 24 Target reporting 29 Reporting on the University of Copenhagen Development Contract 2012–14 30 Financial Statements 34 Accounting Policies 34 Income Statement 38 Balance Sheet 39 Statement of Changes in Equity 41 Cash Flow Statement 42 Notes to Financial Statements 43 Financial Highlights of the University of Copenhagen 52 University of Copenhagen Annual Report 2014 2 Table of Contents Review, Management’s Statement and Auditor’s Report Company Information Company Auditors University of Copenhagen Danish National Audit Office Nørregade 10 St. Kongensgade 45 DK-1165 Copenhagen K DK-1264 Copenhagen K Local authority: City of Copenhagen CVR no.: 29 97 98 12 Institutional Auditors Deloitte State Authorised Board Public Accountants Nils Strandberg Pedersen, chairperson Weidekampsgade 6 Peter Gæmelke DK-2300 Copenhagen S, Anja C. Andersen Gwen Gruner-Widding Attorneys Jannik Johansen Kammeradvokaten Joan Sonne Lykkeaa (Legal Adviser to the Danish Government) Kari Melby Vester Farimagsgade 23 Søren Axel Petersen DK-1606 Copenhagen V Sine Sunesen Leif Søndergaard Bank Mads Krogsgaard Thomsen Danske Bank Holmens Kanal 2 Rector DK-1090 Copenhagen K Ralf Hemmingsen Prorector for Research and Innovation Thomas Bjørnholm Prorector for Education Lykke Friis University Director Jørgen Honoré University of Copenhagen Annual Report 2014 3 Management’s Statement The Board and Executive Management have today considered and approved the Annual Report of the University of Copenhagen for 2014. The Annual Report has been prepared in accordance with Ministerial Order no. 70 of 27 January 2011 on State Accounting, etc. We hereby declare: 1. that we consider the accounting policies adopted appropriate and the accounting estimates made reasonable. The Annual Report therefore gives a true and fair view of the University of Copenhagen’s assets, liabilities and financial position at 31 December 2014, and the results of the University’s operations and cash flows for 2014, including the description of the targets set and the reporting on these targets in the Annual Report, are satisfactory, 2. that, in our opinion, Management’s Review includes a true and fair account of the matters addressed and describes the most significant risks and elements of uncertainty faced by the University of Copenhagen, 3. that all transactions included in the Financial Statements are in accordance with relevant legislation and other regula- tions, as well as with agreements entered into and with established practice, and 4. that procedures have been introduced to ensure sound financial management of the resources covered by the Annual Report. Copenhagen, 28 April 2015 Rector University Director Board Chairperson University of Copenhagen Annual Report 2014 4 Report and endorsement Independent Auditor’s Reports The Board of the University of Copenhagen has appointed Deloitte as institutional auditors of the University pursuant to Section 28(5) of the Danish University Act. The Auditor General is responsible for the overall audit under the Danish Auditor General Act. To Management of the University of Copenhagen Report on the Financial Statements We have audited the financial statements of the University of Copenhagen for the financial year 1 January to 31 Decem- ber 2014, which comprise the accounting policies, income statement, balance sheet, statement of changes in equity, cash flow statement and notes. The financial statements are prepared in accordance with the Danish State Accounting Act, the rules laid down in the Danish Ministry of Finance’s Financial Administrative Guidelines (ØAV) and Ministerial Order no 1281 of 15 December 2011 on funding and auditing etc. at universities. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of financial statements that are accurate, i.e. free from material misstate- ment and omissions, in accordance with the Danish State Accounting Act, the rules laid down in the Danish Ministry of Finance's Financial Administrative Guidelines and Ministerial Order no 1281 of 15 December 2011 on funding and auditing etc. at universities, and for such internal control as Management determines as necessary to enable the prepara- tion of financial statements that are free from material misstatement, whether due to fraud or error. This responsibility also includes selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Furthermore, Management is responsible for transactions covered by the financial statements complying with the appro- priations granted, statutes, other regulations, agreements and usual practice. Auditor’s Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation, good public auditing practice and the agreement on internal audits at universities entered into by the Danish Minister of Edu- cation and the Auditor General, pursuant to Section 9 of the Danish Auditor General Act. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the finan- cial statements. The audit procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the university’s preparation of financial statements that are accurate, i.e. free from material misstatements and omissions, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the university’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements. University of Copenhagen Annual Report 2014 Report and endorsement 5 The audit also includes assessing whether procedures and internal controls have been established to ensure that the trans- actions covered by the financial statements comply with the appropriations granted, statutes, other regulations, agreements and usual practice. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit has not resulted in any qualification. Opinion In our opinion, the financial statements of the University of Copenhagen for the financial year 1 January to 31 Decem- ber 2014 have been prepared, in all material respects, in accordance with the Danish State Accounting Act, the rules laid down in the Danish Ministry of Finance’s Financial Administrative Guidelines (ØAV) and Ministerial Order no 1281 of 15 December 2011 on funding and auditing etc. at universities. It is also our opinion that procedures and internal con- trols have been established to ensure that the transactions covered by the financial statements comply with appropriations granted, statutes, other regulations, agreements and usual practice. Statement on the Management’s Review, Target Reporting and Financial Highlights We have read the Management’s Review (pp. 7-28), Target Reporting (pp. 29-33) and Financial Highlights (pp. 52-53). We have not performed any further procedures in addition to the audit of the financial statements. On this basis, it is our opinion that the information provided in the Management’s Review, Target Reporting and Financial Highlights is consist- ent with the financial statements. Copenhagen, 28 April 2015 Deloitte Statsautoriseret Revisionspartnerselskab Lynge Skovgaard Lars Hillebrand State Authorised Public Accountant State Authorised Public Accountant University of Copenhagen Annual Report 2014 6 Report and endorsement Management Report 2014 and challenge each other. This is why it is called research- based teaching. The administration supports this process. The University of Copenhagen welcomes the current Researchers do not administer research grants or keep track strong political interest in the university sector, as well as of test tubes on their own. Students do not handle exam the growing international competition for the best students registration or clean classrooms. Lecturers are not in charge and researchers. Indeed, Strategy 2016 focuses precisely of the University budget, IT development or the thousands on interaction with the rest of society – at local, national, of applications for enrolment at UCPH that are received international and global level – and our activities in 2014 every year. Buildings and laboratories are an increasingly are a testament to this. Enhancing the study environment, integral part
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