De Economist

, Volume 158, Issue 3, pp 323–335 | Cite as

Notes and Communications

Financial Policy for Schools and Universities
  • Henk Don


Educational institutions in the Netherlands have some degree of economic independence. Their management decisions are not guided completely by a budget system, but in part also by a market mechanism. Still, budget management is crucial as survival is not primarily determined by the amount of equity capital, but by the annual funding received from the government. For the evaluation of capital management, a capitalization factor is introduced to measure the amount of capital employed by an educational institute in relation to its annual income. It can signal possible inefficiencies reflected in excessive capital assets. Actual budget and capital management is assessed with the help of four financial indicators. There appears to be scope for improvements in financial policies and some recommendations are offered on how to attain them.


capital management capitalization economic independence financial indicators schools universities 

JEL code(s)

H52 H83 I22 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Don Committee (2009), Financieel beleid van onderwijsinstellingen, Rapport van de Commissie Vermogensbeheer Onderwijsinstellingen. Den Haag, Ministerie van OCW.Google Scholar
  2. Dutch Eurydice Unit (2007), The Education System in the Netherlands 2007. Den Haag, Ministerie van OCW.Google Scholar
  3. Education Inspectorate (2008), De vermogenspositie van besturen in het voortgezet onderwijs, Onderzoek naar het weerstandsvermogen van VO-scholen. Utrecht: Inspectie van het Onderwijs; Den Haag: Tweede Kamer, 2008–2009, 31 289, nr. 51.Google Scholar
  4. Koopmans Committee (1999), De vermogenspositie van universiteiten. Een delicate balans.Google Scholar
  5. Ministerie van OCW (2009), Kerncijfers 2004–2008. Den Haag, Ministerie van OCW.Google Scholar
  6. Mol Nico (2008) Bedrijfseconomie voor de collectieve sector, 5th edition. Bussum, CoutinhoGoogle Scholar
  7. PriceWaterhouseCoopers (2008), Onderzoek vermogenspositie van het primair onderwijs. Den Haag: Tweede Kamer, 2007–2008, 31 293, nr. 21.Google Scholar
  8. Smits Committee (2003), Zuinig op de toekomst. Van vroegtijdig waarschuwen naar toekomstgericht sturen. Amsterdam: Stichting Vangnet HBO; Den Haag: Tweede Kamer, 2003–2004, 25 644, nr. 23.Google Scholar

Copyright information

© Springer Science+Business Media, LLC. 2010

Authors and Affiliations

  1. 1.Netherlands Competition AuthorityThe HagueThe Netherlands

Personalised recommendations