Funding and the Result in General

2004 did not bring any great changes or surprises after the Norwegian Parliament (Storting) reversed the Government’s proposal to cut the grants to RCNUWC from the autumn of 2004. The Storting granted NOK 21,948,000, an increase of NOK 451,000 from 2003.The increase was only adjusted in accordance with the average price rise in Norway, rather than the real wages and prices increase. Nor was compensation provided for the real wages and price rise in the other Nordic countries, only the average price rise.

In addition, the increase was not in accordance with our application, which each year has included a sum to cover the accumulated maintenance costs of the buildings. The UWC development foundation therefore contributed NOK 1,200,000, similar to previous years.
The development and maintenance of the buildings is a recurring problem.The Ministry of Education and Research has also taken up the question of the organisation of college’s property in a separate company. This question has been dealt with in the course of the
year on our part, but final conclusions have not yet been reached.

On January 1st, 2005, responsibility for the dealings between the Norwegian authorities and RCNUWC was transferred from the Ministry of Education and Research to the Directorate for
Education, which is located in Molde. Hopefully, this will lead to better and closer contact with the authorities.

With respect to the Nordic funding, we refer to the commentary regarding contributions from the respective countries.

In response to the accumulated deficit, great efforts have been made on the part of the school to cut expenses. Our objective is to achieve a better balance of the accounts and to improved liquidity. The accounts for 2004 resulted in a profit due to reduced consumption
and skilful management of the budget. For details, refer to the enclosed accounts.

NORDIC FUNDING:
The Norwegian Storting, in its budget resolution for autumn 2002 and 2003, instructed the Ministry of Education and Research to negotiate long-term agreements regarding funding with the other Nordic countries. The Minister has taken this matter up in writing with her Nordic colleagues, and a meeting on this question was held in August 2004.We have not yet been informed of the formal result, but we presume that the arrangement will continue as
before until we receive information to the contrary.

Nordic Funding in 2004:
Norway - NOK 21,948,000
Sweden - NOK 5,150,000
Denmark - DKK 1,750,000
Finland - NOK 1,312,500
Iceland, Greenland, Faeroes, Åland - NOK 1,302,000
Outside Nordic countries - NOK 1,703.500
National c. Nor,Den, Swe. & student payments - NOK 2,522,000
Other income - NOK 1,413,161

Certain challenges concerning the Nordic funding must be mentioned. Since we have not yet received any response from the Ministry of Education’s dealings with the Nordic governments, it has not been possible for RCNUWC to take action beyond the college’s contact with the national committees. As mentioned above, we must nevertheless presume that the arrangement has not been changed to any great extent. With respect to the situation in the
individual Nordic countries,we refer to the following:

Norway:
We refer to the section above on general funding, where Norway is specifically mentioned with respect to both economic and administrative matters. Further, it should be noted that for 2005, assurance for real compensation for wage and price increases were given.
With respect to the application for building maintenance funds,we are still dependent on grants from the UWC Foundation or other sources.

Sweden:
The grant from Sweden come from the Swedish Ministry of Foreign Affairs, and has been regulated every year for inflation. The grant will be paid after the application in connection with the approved annual report and budget. The amount for 2005 is NOK 5,150,000, and is mainly intended for students from developing countries with which Sweden cooperates. In this manner, Sweden covers the cost of a considerable number of our students from developing countries. National Committee:The National committee paid the college NOK 35,000 for each Swedish student.

Denmark:
For 2004,Denmark contributed with a block grant from the Danish Ministry of Education the amount of DKK 1,750,000. The grant is regulated for inflation every second year. Beyond this, the national committee contributes DKK 880,000. This is composed of a fixed sum from the Ministry in accordance with the Act pertaining to Upper Secondary Schools (Dansk Gynnasielov) and contributions from the national committee. Altogether, this amounts to DKK
80,000 per student. Consequently, Denmark covers the costs of its own students and also contributes to the cost of students from the developing countries.

Finland:
Finland usually sends eight students. Of these, four students are paid for by the Ministry of Education, two are financed by Swedish Culture Fund and two by the Finnish Culture Fund. In 2004, there was a reorganisation of the grant arrangements in the ministry,and the grants for 2 students were left out for the last semester of 2004. We assume that this is a temporary situation and expect that the original grants will be reinstated. The grant for Finland has been
paid after the calculation of the actual cost per student of NOK 175,000.

Iceland, Greenland, the Faeroes and Åland:
As previously, there have been 2 students from each country/region, with the exception of Åland, which from autumn 2004 has only sent one student. The respective ministries paid the grant after the cost of NOK 175,000 per student was calculated.