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Mangosuthu University of Technology Annual Report
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WRITING-OFF OF ASSETS
Council considered and approved the proposal to write-
off assets with a cost of R7 326 089.99, an accumulated
depreciation of R7 173 344.07 and a net book value of
R162 742.92. The assets were no longer in use as reflected
in the presented schedule. They would be disposed of
by inviting three companies to view the items and make
offers on them. The disposal of assets written off would
be by sealed bids. The highest offer would be accepted.
WRITING-OFF OF MR MABASO’S DEBT
Council considered and approved the writing-off of the
debt of Mr Mabaso from the financial records as it was
unlikely that it would be recovered. After it is written-off,
the debt would be handed over to a debt collector to try
and recover it at an agreed commission percentage of the
funds recovered.
STUDENT DEBT
Council noted that the student debt was increasing every
year as a result of non-payment of fees. As at 31 December
2014, the student debt amounted to R125 million. About
60% of MUT students are funded by NSFAS. Inadequate
NSFAS funding contributes to the increase in the student
debt.
Council deliberated on the means to reduce the
escalating student debt and noted that in addition to
handing over the student debt for collection there are
mechanisms put in place by the University to compel
students to settle outstanding amounts, for example,
holding back certificates after students have completed
their qualifications. Council noted with concern that the
collection rate by Debt Tracker was low. Council requested
that a strategy on the student debt should be submitted
at the Council meeting in September 2015. Other options
besides Debt Tracker should be explored.
2015 SRC BUDGET
Council considered the recommendation for approval of
the 2015 SRC budget. In previous years the SRC budget
had not been submitted to Council for approval, but was
approved by the Finance Department. Council agreed that
a quarterly SRC budget should be presented to Council.
Council approved the 2015 SRC Budget amounting to R3
441 482.10.
2014 ANNUAL FINANCIAL STATEMENTS
Council considered and approved the unqualified
audit opinion on the 2014 Annual Financial Statements
as recommended at the joint meeting of the Finance
& Remuneration Committee and the Audit & Risk
Committee.
Council noted the Management Letter for the year ended
31 December 2014 as well as the Action Plan to address
issues raised in the 2014 External Auditors’ Management
Letter. The Action Plan indicated actions taken to resolve
issued raised.
APPOINTMENT OF PUBLIC OFFICER
Council considered and approved the appointment of the
CFO as the University official to correspond with SARS
regarding obtaining a tax clearance.
#FEES MUST FALL
Council received information regarding the fees must
fall Campaign: that the DHET had committed to pay
R39.540 million to MUT to cover the shortfall arising
out of the by government’s ‘No Fee Increase in 2016’
announcement, that Universities South Africa was working
on plans to manage some of the potential fallout from
the #FeesMustFall campaign at the beginning of 2016. As
part of this plan, Universities South Africa, together with
University Chairs of Council Forum, met with officials from
the DHET to discuss matters of common interest.
EXTENSION OF THE TERM OF THE INTERNAL
AUDITORS
Council considered and approved the extension of the
existing internal auditors’ contract upon expiry, for a
period of not more than three months, pending the
finalisation of the appointment of new internal auditors in
terms of the procurement process.
Edu-Loan Bank Account
Council was informed of how the Edu-Loan bank account
operates in providing loans to parents of students for
study purposes. The account would be opened with the
University’s bankers, ABSA. This is one of the strategies to
minimize the student debt. Council approved the opening
of a separate bank account for Edu-Loan transactions.
EXECUTIVE COMMITTEE OF COUNCIL
The Chairperson highlighted the following crucial issues
that members needed to think of strategies to deal with.
He proposed that these items be discussed at a special
Council meeting:
•
Annual Financial Statements;
•
Management Letter and issues raised by External
Auditors;
•
The Student debt – A detailed report on the student
debt to date and to provide an indication of the
extent to which the debt could be recovered;
•
The DBSA loan – Management should prepare a
business plan for the loan;
•
Financial stability and viability of the Institution;