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Mangosuthu University of Technology Annual Report
55
10. 2015 ANNUAL FINANCIAL REVIEW
The Finance and Remuneration Committee (FRC) met as
scheduled during the year to consider various financial
and remuneration issues. Financial sustainability and cost
reduction were the major focus for the FRC during the
year under review.
The institution has been operating at a deficit. However,
it should be noted that the institution is operating at a
surplus before provisions and estimates. Provisions and
estimates are mainly as follows:
• Provision for doubtful debt.
• Provision for pension liability.
• Depreciation.
We always budget for a surplus before provisions which
are a non cash item. The statement of comprehensive
income distinguish between Council controlled funds,
earmarked funds, Student and staff accommodation.
Various measures have been taken to ensure financial
sustainability of the institution. The following were the
major contributors to the deficit:
• Post- retirement medical liability.
• Operation of student residences
• Provision for doubtful debt
Provision for doubtful debt remains the major contributor
to the deficit.
Budgeting Process
The budget was to support the implementation and
achieving the objectives of the APP. The budget takes into
consideration cash available. We try to match expenditure
against cash available.
There is a budget committee responsible for reviewing
and recommending the budget to the Finance and
Remuneration Committee.
Financial Aid
NSFAS
There were 7 989 students who applied for NSFAS
funding. There were 5 965 students who were allocated
NSFAS funding amounting to R175.888 million. In 2014,
6 172 students were funded for R167.512 million. The
slight decrease in 2015 is as a result of the increase in cost
of study.
National Skill Fund
There were 925 students funded by NSF amounting to
R22.536 million.
Bursaries and Scholarships
Bursaries and scholarships amounted to R23.632 million
and funded 743 students.
Financial Highlights
Income:
Council controlled income
Council controlled income amounted to R414.429 million
compared to R390.272 million in 2014 which is a 6.2%
increase.
Government subsidy increased from R237.156 million in
2014 to R243.516 million in 2015 which is 2.7% increase.
Tuition fee income increased from R140.652 million in
2014 to R157.575 million in 2015 which is a 12% increase.
The fee adjustment was 9% in 2015.
Restricted income
Restricted income amounted to R35.079 million. Restricted
income is mainly earmarked grants from the Department
of Higher Education and Training.
Student accommodation
Income from student residence fees increased from
R120.390 million in 2014 to R127.096 million in 2015 which