Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Univen and #FeesMustFall
1.10 Future Infrastructure
Projects
Proposed New Buildings
Graduation Hall New Lecture Theatres
Extension to Library New Management Sciences
Proposed new Buildings (cont).
Buildings for Engineering and Law New Offices
Extension to Student Administration Building New Science Park
Proposed new Buildings (cont).
New entrance for Punda Maria Gate
New ICT Building
1.11 ICT in support of
Core Project
Broadband at University of Venda
1. Univen Broadband growth:• 8mbps in 2008; • 12mbps in 2010; • 30mbps in 2011; • 45 mbps in July 2012;• 300mbps in November 2012;• 450mbps in 2013 and • 10gig from August 2015.
2. Wireless campus: 30mbps wireless.
4. Have requested Tenet for broadband to Vuwani
University of Venda “Smart University” Roadmap
14KStudents
Creating Future Leaders
Employability
Flexible, personalized learning
Globally aware, locally relevant
Faculty and staff800
Infrastructure project
>R337M
Univen Wi-Fi Network
Univen Tablet Handout
The first 2000 tablets delivered
School of Agriculture students awaiting the delivery process to commence.
20 Staff members trained to capture required information and register tablet
1.12 Ensuring a Safe and
Secure Campus
Integrated Security Masterplan
Security Network Masterplan
Security System Masterplan
Protection Services State of the Art Control
Room
Successes with our CCTV system
Student stealing a cellphone
Student stole tablet and running away
Student stole tablet
Student stealing a wallet
2. Univen’s Approach to
#FeesMustFall and
Insourcing
UNIVEN and the Future
1. Univen immediately formed Strategic Transformation Committee
comprising members of Executive Management and Council to act
as a Rapid Action Team as far as decision-making is concerned and
providing mandates to Management
2. Univen immediately started with full assessment of funding and
compiled a list of austerity measures
3. Univen decided that as far as Insourcing is concerned, that it be
dealt with under the Univen wholly-owned subsidiary UIGC on the
following terms:
• Only if done under UIGC
• Sectoral rates
• UIGC assisted to cover costs of overheads such as staff and
systems
• Sector related Conditions of Service
4. Univen built scenarios
Where do we want to
be?
What is the current reality?
Gap
Strategic Objectives
Build 3 scenarios with two pillars each: • Financial sustainability and • access
New World-Class Rural University
The University of Venda Turnaround Strategy
The Life Cycle of Univen
1982
1. DISEQUILIBRIUM
BETWEEN CHALLENGE &
RESPONSE
2. INABILITY IDENTIFY
CLEAR ACTIONS &
GOALS
3. RESOURCE WASTE DUE
TO ERROR RATE
4. NEED GOAL CLARITY &
PRIORITISED ACTION
2015
1. OPTIMUM
EQUILIBRIUM
BETWEEN
CHALLENGE
& RESPONSE
2. OPTIMUM RESOURCE
ALLOCATION &
UTILISATION
3. DYNAMIC & ADAPTABLE
4. SELF-GENERATING
MOMENTUM
5. OPTIMUM CREATIVE
RESPONSE
6. ABILITY TO DISPLAY
VERSATILITY
2016/2017
1. DISEQUILIBRIUM
BETWEEN
CHALLENGE
& RESPONSE #FEESMUSTFALL; INSOURCING 2. RELIANCE ON PAST
SUCCESS
3. STAGNATION DUE TO
LOSS OF FLEXIBILITY
4. RESOURCE WASTE DUE
TO MAINTENANCE NEEDS
5. UNWILLINGNESS TO
INTRODUCE CHANGE
6. LOSS OF CREATIVITY
7. WE RUN THE RISK OF
POTENTIAL FUTURE
DISINTEGRATION
8. APPEARANCE OF A FEW
CREATIVE MIND
PROPAGATING CHANGE
1. STAGNATION AND
HARDENING TOWARDS
CHANGE
2. PROBABLE
DISINTEGRATION OF
UNIVEN
3. ESCALATION OF CRISiS
4. FLIGHT OF BEST STAFF
5. FRUSTRATION AMONGST
STAFF
6. MANAGEMENT BY CRISiS
7. INEFFECTIVE RESPONSE
TO HE CHALLENGES
8. SENSE OF CRISiS & LOSS
OF DIRECTION
3. Impact on Univen’s
Financial Sustainability
and Student Access
THE TORTOISE SCENARIO: Maintain Status
Quo leading to Eventual Demise of Univen1. DISEQUILIBRIUM BETWEEN CHALLENGE &
RESPONSE: Don’t plan effectively for impact of
#FeesMustFall; Insourcing; no increase in 3rd stream
income; lack of office accommodation.
2. RELIANCE ON PAST SUCCESS: Accommodate and
tolerate dead wood; ineffective performance management;
culture of “entitlement”, no rationalization of departments,
audit focus skew.
3. RESOURCE WASTE DUE TO MAINTENANCE NEEDS:
Use maintenance funding for other purposes
4. UNWILLINGNESS TO INTRODUCE CHANGE:
Inflexibility of HR; slow ICT uptake; backstabbing;
favouritism.
5. LOSS OF CREATIVITY: No increase in productivity; no
new interventions.
6. POTENTIAL FUTURE DISINTEGRATION: Best staff
looking elsewhere. Staff growth continues.
7. APPEARANCE OF CREATIVE MINORITIES: Don’t listen
to those who see warning signs such as low productivity,
unnecessary appointments, no rationalization.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Income 524 475 610 822 712 916 831 329 982 622 1 033 330 1 101 634 1 150 062 1 201 360 1 255 642 1 313 035
Expenditure 492 887 517 900 636 910 769 362 948 182 1 002 132 1 094 419 1 183 088 1 272 674 1 369 283 1 473 473
Surplus/( Deficit) 31 588 92 922 76 006 61 967 34 440 31 198 7 215 -33 026 -71 314 -113 641 -160 437
250 000
450 000
650 000
850 000
1 050 000
1 250 000
1 450 000
1 650 000
R’000
Income and Expenditure: 0% Increment and Business as Usual
Assumptions – 0% Fee Increase and
Business as Usual• State subsidies as expected to grow at 4% per annum.
• Student enrolment figure is expected to grow by 500 annually which will results in a marginal
increase of student tuition fees.
• Other assumptions are as following:
o Research is expected to grow by 5% year on year basis until 2021.
o Income from other activities is expected to increase by 1%
o Sales of goods and services is expected to increase by 5% going forward
o Private gifts and donations will increase by 3% until 2021
o Interest on investments will decline due assuming that Univen will not have enough funds to
invest.
o Salaries are expected to increase by current adjustment of 8.5% per annum.
o Staff costs rise to 62% of turnover.
o Operating expenses will increase by 7%.
o Income decrease with less investments and therefore less interest.
o Expenditure increases with new buildings require support services, further utility usage and
technology.
THE IMPALA SCENARIO: Flexible but
vulnerable
1. DISEQUILIBRUIM BETWEEN CHALLENGES
AND RESPONSES: Respond reactively to new
challenges; slow down in appointments.
2. READING THE FUTURE: Narrow vision of the
new future – not seen as disastrous but
manageable.
3. INWARDLY FOCUSSED: Not enough momentum
to balance inward focus with external impact
factors; start rationalising some departments.
4. COMMUNICATION: Not enough visible and
enthusiastic leadership to a compelling future; lag
in internal communication and staff buy-in.
5. DISPARATE DEPARTMENTAL
DEVELOPMENT: Silo development and pockets
of excellence; cancellation of development of new
programmes.
6. GOAL CLARITY: Goals are clear but progress to
attain them indifferent.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Income 524 475 610 822 712 916 831 329 982 622 1 061 505 1 159 190 1 228 136 1 280 483 1 341 380 1 408 990
Expenditure 492 887 517 900 636 910 769 362 948 182 1 002 132 1 079 319 1 166 768 1 246 296 1 331 386 1 422 426
Surplus/ ( Deficit) 31 588 92 922 76 006 61 967 34 440 59 373 79 871 61 368 34 187 9 994 -13 437
250 000
450 000
650 000
850 000
1 050 000
1 250 000
1 450 000
1 650 000R’000
Income and Expenditure: 6% Increment or Marginal Change
Assumptions 6% Fee Increase or
Marginal Change• State subsidies as expected to grow at 5% per annum.
• Receive HDI Fund 2017 – R46m; 2018 – R60m; 2019 – R54m; 2020 – R53m; 2021 – R55m
• Student enrolment figure is expected to grow by 500 annually which will results in a marginal increase of
student tuition fees. The annual increase is 6%
• Other assumptions are as followings:
o Research is expected to grow by 6% year on year basis until 2021.
o Income from other activities is expected to increase by 2%.
o Sales of goods and services is expected to increase by 5% going forward
o Private gifts and donations will increase by 4% until 2021.
o Interest on investments will decline due assuming that Univen will not have enough funds to invest.
o Salaries are expected to increase by current adjustment of 7.0% per annum through lower increases.
o Minor rationalisation move staff costs to 60% of turnover.
o Operating expenses will increase by 7%.
o Income decrease with less investments and therefore less interest.
o Expenditure increases with new buildings require support services, further utility usage and technology.
Decrease Utility cost per M² by 8%
THE CHEETAH SCENARIO: Flexible, Nimble,
Adaptive
1. OPTIMUM EQUILIBRIUM BETWEEN CHALLENGE
& RESPONSE: Do more by focusing on less; can’t
be everything to everyone; partner with industry on
their requirements.
2. OPTIMUM RESOURCE ALLOCATION &
UTILISATION: Rationalisation of schools and
departments within four months – 60 department to
40 and 8 schools to 5 faculties.
3. DYNAMIC & ADAPTABLE: Empowerment of staff
and less committees; reduce staff in support
functions through retrenchment.
4. SELF-GENERATING MOMENTUM: Significantly
grow research output, third stream income
generation and measure productivity.
5. OPTIMUM CREATIVE RESPONSE; Listen to the
people, they know where the wheels are squeaking.
Implement ideas.
6. ABILITY TO DISPLAY VERSATILITY: Innovation
workshops internally and implement new ideas.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Income 524 475 610 822 712 916 831 329 982 622 1 065 435 1 175 435 1 258 239 1 326 141 1 404 457 1 491 536
Expenditure 492 887 517 900 636 910 769 362 948 182 1 002 132 1 079 319 1 166 768 1 246 296 1 331 386 1 422 426
Surplus/ (Deficit) 31 588 92 922 76 006 61 967 34 440 63 303 96 116 91 471 79 845 73 072 69 109
250 000
450 000
650 000
850 000
1 050 000
1 250 000
1 450 000
1 650 000
R’000
Income & Expenditure: 8% Increment or
Fundamental Change
Assumptions 8% Fee Increase or
Fundamental Change• State subsidies as expected to grow at 5% per annum.
• Receive HDI Fund 2017 – R46m; 2018 – R60m; 2019 – R54m; 2020 – R53m; 2021 – R55m
• Student enrolment figure is expected to grow by 500 annually which will results in a marginal increase of student
tuition fees. The annual increase is 8%
• Other assumptions are as followings:
o Research is expected to grow by 7% year on year basis until 2021.
o Income from other activities is expected to increase by 3%.
o Sales of goods and services is expected to increase by 5% going forward
o Private gifts and donations through Foundation will increase by 5% until 2021.
o Interest on investments will decline due assuming that Univen will have less funds to invest.
o Salaries are expected to increase by current adjustment of 6.5% per annum through lower increases.
o Significant rationalisation keep staff costs at 57% of turnover.
o Operating expenses will increase by 7%.
o Income decrease with less investments and therefore less interest.
o Expenditure increases with new buildings require support services, further utility usage and technology. Decrease
Utility Cost per M² by 10%. Require Professional Investigation into Tariffs Levied.
o No entry into new land acquisitions or collaboration with TUT in Polokwane if no reasonable prospect of
development and surplus growth.
Rising Cost of Utilities
Years Electricity Water Rates and Taxes Telephone Total Utilities
2011 8 956 768 1 783 5 206 16 713
2012 8 676 2 241 3 857 7 787 22 561
2013 11 767 306 4 992 11 088 28 153
2014 12 385 262 4 545 13 413 30 605
2015 14 003 2 353 5 082 14 798 36 235
NOTE: Significant increase in utilities from 2017 and 2018 onwards with occupancy of new residences 2400 beds and nine other new buildings. Tariff investigation required and private supplier system to be immediately replaced.
2008 2009 2010 2011 2012 2013 2014 2015
Cost 540 837 652 494 838 222 1 152 907 1 231 343 1 281 964 1 473 153 1 619 260
Acc Depreciation 131 583 145 518 181 396 246 329 275 443 248 146 282 869 119 248
-
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
Property, plant and equipment
2008 2009 2010 2011 2012 2013 2014 2015
Investment 52 9 242 247 285 342 577 640 481
-
100 000
200 000
300 000
400 000
500 000
600 000
700 000
R’000
Total Investments
2007 2008 2009 2010 2011 2012 2013 2014 2015
NSFAS 64 2 83 2 123 147 181 268 275 284 289
Generalsponsors
16 6 43 3 47 2 80 0 86 2 65 86 61 2 51 6 46 3
VC's meritaward
4 07 4 70 3 86 4 29 1 65 1 94 2 61 3 03 3 87
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
R’000
NSFAS and other funding
2013 2014 2015
Infrastructure 190 740 220 694 334 477
Own 386545 419424 147313
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000
R’000
Investments break down
4. Univen
Recommendations
Univen’s Submission to Fees
CommissionFinancial implications
• 0% - loss of R160m in 2021; 6% - loss of R13m in 2021; 8% - surplus of R69m in 2021
indicating serious financial implications.
• Univen require an 8% adjustment to be able to sustain itself.
• Student debt is rising at an alarming rate due to #FeesMustFall and need to be curbed with
clear messages.
• Tuition and residence fees. Unclear whether residence fees are part of #FeesMustFall. We
recommend outside tuition fees.
• Cost of maintenance, cleaning and utilities rising sharply and universities to take steps to
curb rising costs.
• Engage with Local Government to create special category rates, taxes and utilities to
Universities at reduced rates. Municipalities to give rebates to Universities. Propose a 25%
rebate.
• Time taken to receive clear direction has negative impact on budget processes.
• HDI Development Fund to be implemented in 2017 failing which rural universities will revert
back to their previous disadvantaged status vis-à-vis urban universities;
• Engage National Lottery to devise new category of assisting Universities;
Students
• Univen students decided not to affiliate with SAUS (South African Union of Students) for 2016;
• Univen students “talk” rather than “strike”;
• Univen students feel our circumstances different to other universities.
Restructuring
• All Universities to finalise scenarios and its impact;
• All Universities to present impact analyses, possible rationalisation plans such as closing of
departments and retrenchment of staff;
• All Universities to present austerity measures to be implemented across the business of the
University;
• Univen to start with fundamental transformation and rationalisation plan;
• Regional discussions between business and Universities on increasing internships and bursaries –
tax breaks;
• SRC monitoring quality of teaching and all need to do this;
• Obtain agreement for DHET to utilize interest in investments at the discretion of the University
without prior permission from DHET as long it remains within the earmarked objectives e.g.
infrastructure for new infrastructure, efficiency funding for efficiency projects;
Univen’s Submission to Fees
Commission (cont.)
Univen’s Submission to Fees Commission
(cont.)• Allow Universities to dispose of unused land if no plan to use it in future;
NSFAS
• Students who qualify for financial aid through NSFAS and chooses to study at a university were requested
not to exclude them due of insufficient funds. How to recover the funds. Qualify and wait for funding.
• Rumour has it that NSFAS wants to give funds directly to students from 2017/2018. They must then pay
tuition and residences to the universities. This will be a disastrous decision.
• Bursaries and NSFAS – not repay NSFAS instead allow Universities to re-allocate to deserving students.
• Provincial Government should guarantee more merit bursaries for deserving students in all categories
whose post–matric study choices respond to the national skills demand.
• Universities should be given the latitude to manage allocated funds to suit their unique students’ needs.
Prioritise registration and tuition fees. Then look at books and meal allowances on remaining monies. Now
NSFAS receive direct applications and allocate books and meals.
• Those Universities who want, should be allowed to do virtual online learning to off-campus students to
relieve pressure for on-campus lecturing to assist in massification of HE teaching and learning. NSFAS
funding to incentivise throughput and enhance academic quality;
• NSFAS funding should not perpetuate sectoral inequality;
• SARS must assist with household income data for prospective NSFAS students;
Thank you
Ndo Livhuwa
38