2021 Annual Report
Presidents letter
Reykjavík University is blessed with an outstanding group of faculty and students. I was fortunate to enter a fine academic community when I became a rector in the autumn of 2021. My main task this past winter was to restore the activity of the University back to normal after the worst bouts of the pandemic. The students of RU have, throughout the pandemic, been offered courses of the highest calibre despite very difficult circumstances. Most students received instruction on site when permissible, and much effort went into keeping research work going. We have also done much to resume our international relations, both in studies as well as research, and to strengthen still further the ties of RU to the community and business, especially start-up companies. The University placed prime emphasis on the inner functions of the school during the pandemic. There has therefore been much need to open windows and reach out to the outside world. This has all gone well, our core activity is flourishing and the University is everywhere met with goodwill and has never been better.
It is a great challenge for me as a rector to build on the foundation of the University already laid over the past quarter century ever since its establishment in 1998. The task is to ensure that the University will continue to develop in step with rapid changes in the needs of the surrounding community at the threshold of a new era. Not only am I referring to the revolution in technology and the business environment in this country but also to our challenge as an academic community to lead our students and our community with initiative and courage in a world influenced by climate change, threats to democracy and war. For this purpose, we need an outstanding faculty dedicated to tackling difficult issues as well as a diverse group of students for whom we provide a fertile ground of education and research backed by our co-operation with Confederation of Icelandic Employers, the Confederation of Icelandic Industries and the Chamber of Commerce of Iceland.
Reykjavík University is a student-oriented university where the key challenge is to prepare students for the future. At the same time, students are encouraged to become active participants in their own studies. The University is a leader in research in those areas where it operates. In many instances, it also plays a leading role in the larger community, as can be seen from the number of references to scientists of the University in international, peer-reviewed journals, where the University is a leader amongst schools on the Times Higher Education list. A fertile research environment does much to forge a robust link between students and the business community. We place great emphasis on importing knowledge into the country that does not exist here, and the international relationship of the University is therefore deeper and stronger than most places elsewhere. This mixture makes RU one of the best young universities of the world (Young Universities Ranking) according to the Times Higher Education list, where it is in 53rd place amongst 750 universities that have been in existence for 50 years or less.
We are proud of the achievements of our faculty and students, and we pledge to continue our improvements to turn out able graduates for business and industry. The future is both uncertain and exciting for us at Reykjavík University, and we feel very comfortable at the crossroads of education, community and business where we have placed ourselves from the beginning. It is not without reason that we use the slogan “We are RU” in our introductory literature because surveys show that the students here strongly identify themselves with the University. The public faith in us has also never been higher, according to surveys. This is all due to the effort of our faculty and the students, for all of whom I am truly thankful.
Ragnhildur Helgadóttir
President of Reykjavik University
Governance
The President represents the University, is in charge of its day-to-day activities and is responsible for its operations to the Board of Directors. The President is responsible for the quality of RU's operations and the execution of internal assessments. The President appoints school deans, executive directors, and other university personnel who report directly to the President, but the President consults with the Board regarding their selection and primary tasks.
Schools of Reykjavik University
The School of Social Sciences
Reykjavik University's School of Social Sciences provides students with a solid foundation in methodology, as well as hands-on learning that prepares students for the challenges they face after graduation.
The School offers study programmes in law, business administration, economics, psychology, and sports science in four departments. Courses are at BSc and MSc levels, as well as PhD levels. Most MSc programmes are taught in English.
The School of Technology
The School of Technology spans the range from theoretical computer science and physics to artificial intelligence and mechatronics to applied engineering and web programming.
The school uses project-based learning to train students in applying the underlying theories to real-world problems. Excellence in research both drives the pursuit of knowledge and provides training to students at all levels.
Motivated in part by the United Nations Sustainable Development Goals, the School of Technology has defined four major themes – Sustainability, Data-Driven Healthcare, Traceability, and Language Technologies – to drive research, teaching and external partnerships.
The School offers study programmes in computer science and engineering in three different departments. Courses are at BSc and MSc levels, complementing a research-oriented PhD programme. Graduate programmes and a large proportion of undergraduate courses are offered in English.
Research
RU's academic staff have never received as many grants as in 2021 and never as much grants as in that year. The Icelandic Research Fund allocated to RU faculty 423 MISK in total in 2021. RU received 30 grants from the fund in 2021. The total allocation to the University from the Icelandic Research Fund has nearly quadrupled since 2012.
Research
RU's academic staff have never received as many grants as in 2021 and never as much grants as in that year. The Icelandic Research Fund allocated to RU faculty 423 MISK in total in 2021. RU received 30 grants from the fund in 2021. The total allocation to the University from the Icelandic Research Fund has nearly quadrupled since 2012.
Report of the Board of Directors
The Company’s Core Activities
The role of Reykjavík University (RU) is to create and disseminate knowledge to strengthen competition and quality of life for individuals and society, with ethics, sustainability and responsibility as guiding principles. Reykjavík University is a comprehensive teaching and research university emphasising technology, business and law. RU’s core activities are teaching and research in solid connection with the economic sector and society, focusing on interdisciplinary, international standards, innovation and professional services. The activities are shaped by personal relationships and respect for society and the environment.
Teaching
Reykjavík University plays a crucial role in higher education in Iceland. In particular, the university has a significant role in Iceland’s economy. The number of students at the university has reached some equilibrium after a large increase in recent years, and no significant changes were made to the study options during the year. The changes that were made primarily aim to increase opportunities for interdisciplinary studies. The development of cooperation with the economic sector continues at full speed.
Research and Innovation
In recent years, research activity at Reykjavík University has grown rapidly. The university is at the forefront of research in its fields, but traditional criteria such as peer-reviewed publications for each academic position are recommended. During the year, RU was named one of the 400 best universities in the world according to the Times Higher Education list and was in 53rd place if only those established less than 50 years ago are considered. Reykjavík University has a history of just over 20 years, so it can honestly be said that the results achieved in that time are excellent.
Operating Results
Reykjavík University’s Articles of Association contain explicit provisions that profits from the company’s operations will only be used to strengthen the university’s activities. It is not permitted to allocate profits, rights, or assets of the university to anything other than enhancing the university itself. Therefore, according to the company’s Articles of Association, it is not allowed to pay dividends from the company.
There has been a positive turnaround in the operation of the parent company of Reykjavík University in recent years. The significant factors in that success have been increased income due to the increase in the number of students in parallel with considerable restraint in operations. Furthermore, the government has been increasing funding for universities, in line with its policy of achieving the average funding in the OECD and Nordic countries. There is still some way to go before these goals are achieved, but the state’s contribution is around half of what is common in the Nordic countries. This inevitably affects the work of the universities and Iceland’s competitive position in the future.
Reykjavík University’s increased income is used to strengthen the activities and, in particular, to increase the quality of teaching and the professional strength of the university. The results in 2021 were better than expected, primarily due to lower drop-out rates than expected, increased contributions due to an increase in the number of students and temporary funding for summer courses. The university’s activities were unusually high during the summer months due to the funds that the authorities added to the funding so that it was possible to offer summer studies and summer jobs within the university.
During the year, the subsidiary Grunnstoð completed the refinancing of the university’s premises at Menntavegur 1 through the sale of new social bonds in the amount of ISK 12 billion. These are 40-year indexed bonds. There was considerable demand for the bonds, but Icelandic pension funds, mutual funds, and professional investors were among the buyers. The bonds fall under the new social financing framework of Reykjavík University, which is certified by the international certification company S&P Global Ratings. In the social financing framework, the issuance of bonds and other financial instruments is linked to social goals. In the case of RU, it is based on the United Nations’ Global Goal of Sustainable Development.
The total income of Reykjavík University ehf. was ISK 7,623 million in 2021 and ISK 6,816 million in 2020. The results for the year were negative by ISK 345 million and negative by ISK 166 million the year before. At the end of the year, the book value of equity was ISK 6,772 million, compared to ISK 7,117 million the year before. At the end of 2021, the equity ratio was 72%.
The impact of the COVID-19 pandemic on the company’s operations and position has been insignificant, and it is not expected that the pandemic will have a significant effect on its activities.
Income statement
Numbers in thousands of Icelandic krona (ISK)
| 2021 | 2020 | |
|---|---|---|
| Operating income | ||
| Treasury contribution | 4,097,551 | 3,814,050 |
| Tuition and other income | 2,498,617 | 2,261,193 |
| Grants | 1,026,411 | 740,296 |
| 7,622,579 | 6,615,539 | |
| Operation expenses | ||
| Salaries and related expenses | 4,844,701 | 4,301,829 |
| Housing expenses | 1,239,203 | 1,209,614 |
| Other operating expenses | 1,296,390 | 938,198 |
| Depreciation | 152,367 | 158,652 |
| 7,535,661 | 6,608,293 | |
| Operating result | 89,918 | 207,246 |
| Financial income (expenses) | ||
| Net financial income | 21,871 | 24,355 |
| Result before share of loss of subsidiaries | 111,789 | 231,601 |
| Share of loss of subsidiaries | (457,242) | (397,247) |
| Result of the year | (345,453) | (165,646) |