University finance

The performance of universities is measured, for example, by the number of degrees and publications. The Ministry of Education and Culture (OKM) grants universities government funding on the basis of their profitability.

In all its activities, including finances, the university adheres to the principles of risk management.

Funding of the universities

In connection with annual budget formulation, Finland's Parliament decides on the amount of core funding allocated by the Ministry of Education and Culture (OKM) to the universities. Under the Universities Act, the OKM grants basic funding to universities on computational grounds, taking into account the scope, quality and effectiveness of activities, and on the basis of other educational and science policy objectives. Besides the core funding, higher education institutions receive external funding from several sources.

The appropriations for core funding are allocated mainly in an imputed way to the universities on the basis of their teaching and research performance. The funding distributed on the basis of other education and science policy objectives, includes funding for national missions as well as strategy-based funding. As of 2021, the strategy-based funding consist of a program-based contribution to promote national higher education policy objectives and a higher proportion supporting the higher education institutions' own strategy and renewal.

The basic funding is allocated to universities as a single entity. The universities then decide on the internal allocation of funding independently based on their strategic choices.

Finance and money allocation in the University of Oulu

The University of Oulu applies the OKM  computational model for the allocation of money to faculties. In addition, strategic funding and funding for national tasks are appropriated to the units. The national tasks of the University of Oulu include Sami Language and Culture, Kajaani University Consortium, Sodankylä Geophysical Observatory, Microentrepreneurship Training and Research and Oulu University Teacher Training School.

Annual report 2020

Investments

The objective of the University of Oulu's investment activities in the long term is to ensure the appropriate, productive and safeguarding investment of the assets to be invested, taking into account the return objective, accepted level of risk, responsibility/accountability of investment activities and the need for liquid assets. The University of Oulu is a responsible investor and requires its financial partners to have signed up to the UN Principles for Responsible Investment. These principles promote the incorporation of environmental, social, and corporate governance factors into investment decision-making.

Funds

Through the University of Oulu Funds, in particular, postgraduate studies and research are supported. The capital of all funds can be increased by donations.

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