doe - financial and operations procedures toolkit.pdf - saide

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Toolkit for Further Education and Training Colleges1

Toolkit for Further Education and Training Colleges 1

ContentsExecutive summary..................................................................................................................................................3

1 Statutory requirements ................................................................................................................................51.1 The Further Education and Training Act, no. 98 of 1998 ............................................................................................51.1.1 Interpretation ..........................................................................................................................................................51.1.2 Auditors....................................................................................................................................................................51.1.3 Financial year end ....................................................................................................................................................61.2 Companies Act, of 1973..............................................................................................................................................61.3 Statements of Generally Accepted Accounting Practice (GAAP) ..................................................................................61.3.1 Introduction ............................................................................................................................................................71.3.2 Deviations from GAAP ..............................................................................................................................................71.3.3 Financial statement components ..............................................................................................................................71.3.4 Preparation of financial statements ..........................................................................................................................81.3.5 Comparatives ..........................................................................................................................................................91.4 The Public Finance Management Act and its effect on FET Colleges (PFMA) ..............................................................9

2 Governance structures and requirements..................................................................................................132.1 Corporate governance ..............................................................................................................................................132.1.1 Governance structures ............................................................................................................................................132.1.2 Tone at the top ......................................................................................................................................................142.1.3 Strategy..................................................................................................................................................................142.1.4 Risk management ..................................................................................................................................................142.1.5 Managing management ........................................................................................................................................152.1.6 Communication......................................................................................................................................................152.1.7 Transaction approval ..............................................................................................................................................15

3 The FET business model..............................................................................................................................173.1 Introduction ..............................................................................................................................................................173.1.1 Co-ordinators of the business model development ................................................................................................173.1.2 How to use ............................................................................................................................................................173.1.3 Benchmarking – cautionary statements ..................................................................................................................173.2 FET business model ..................................................................................................................................................183.3 Process analysis template ..........................................................................................................................................213.4 Strategic management processes ..............................................................................................................................223.5 Core management processes ....................................................................................................................................243.5.1 Core process: enrolment ........................................................................................................................................243.6 Core business processes ............................................................................................................................................253.6.1 Core process: enrolment ........................................................................................................................................263.6.2 Core process: service delivery ................................................................................................................................313.6.3 Core process: curriculum management ..................................................................................................................353.7 Resource processes ....................................................................................................................................................363.7.1 Resource process: human resource management....................................................................................................373.7.2 Resource process: sponsorship and fundraising ......................................................................................................423.7.3 Resource process: materials management ..............................................................................................................473.7.4 Resource process: facilities management ................................................................................................................563.7.5 Resource process: financial management................................................................................................................553.7.6 Resource process: information management ..........................................................................................................58

4 Policies and procedures manual ................................................................................................................614.1 Core processes ..........................................................................................................................................................614.1.1 Enrolment ..............................................................................................................................................................614.1.2 Service delivery ......................................................................................................................................................704.1.3 Curriculum management........................................................................................................................................744.2 Resource processes ....................................................................................................................................................754.2.1 Human resources management ..............................................................................................................................754.2.2 Sponsorship and fundraising management ............................................................................................................874.2.3 Materials management ..........................................................................................................................................894.2.4 Facilities management ............................................................................................................................................934.2.5 Financial management ..........................................................................................................................................984.2.6 Information management ....................................................................................................................................1094.3 Levels of authority ..................................................................................................................................................1134.3.1 General ................................................................................................................................................................1134.3.2 Revenue and accounts receivable ........................................................................................................................114


4.3.3 Purchasing and accounts payable ........................................................................................................................1154.3.4 Personnel and payroll records ..............................................................................................................................1164.3.5 General ledger maintenance ................................................................................................................................1174.3.6 Bank mandate/cheque signatories ........................................................................................................................118

5 Financial statements and disclosures ......................................................................................................119

6 Standardised chart of accounts ................................................................................................................153

7 Annexure 1: Fixed asset register ..............................................................................................................163

8 Annexure 2: Directory of FET Colleges ....................................................................................................165

9 Annexure 3: Contact details of Colleges and principals..........................................................................169

11 Annexure 4: List of Acts ............................................................................................................................173

12 Annexure 5: Useful websites ....................................................................................................................175

13 Annexure 6: Abbreviations and terminologies ........................................................................................177

Key of icons ..........................................................................................................................................................19


Executive summaryReform of the further education system is high on the priorities of the South African Government, not to effect change forchanges sake but to assist in the fundamental upskilling of the South African population and to assist in raisingcompetitiveness in the global economy. As such, there is a recognised need to address the future shape of furthereducation in South Africa. This important strategic analysis contributed towards the landscape for the future shape andconfiguration of further education across South Africa.

The Department of Education (DoE) has determined that a programme of reform over a relatively short period of timewould be appropriate. As result, the new institutional landscape for FET institutions has recently been established throughthe process of College mergers. All the Technical Colleges and a number of former Colleges of Education (some 160Colleges) are now consolidated into 51 merged institutions spread across the nine provinces, providing an infrastructureplatform to develop the intermediate labour skills of our country.

Through extensive research and scrutiny a need has become apparent that these Colleges require immediate guidanceand assistance in areas specific to financial statements, policies and procedures.

This toolkit has been devised in order to assist Colleges with multi-campus management by gaining an improvedunderstanding of the policies and procedures that are suggested to be in place for principals and campus managers and itis not intended to be prescriptive or rigid.

It is important to remember that ‘one size does not fit all’- indeed the issues within each province and within eachCollege will require variations from the model. Users of this toolkit are encouraged to provide commentary and furtherinput to the toolkit project manager (see below).

Extensive research has been carried out in the form of workshops whereby two Colleges were selected to provide inputfrom different provinces.

How to use this toolkit

This toolkit comprises of five different “sections” -

1 Statutory requirements2 The FET Business model3 The Policy and Procedures manual4 Standardised template for Annual Financial Statements5 Standardised template for a Chart of Accounts

Items one and two above will assist the reader in better understanding the legislative environment within which an FETCollege operates, as well as the generic processes in place at a College.

Items three, four and five are to assist Colleges in implementing best practise Policies and Procedures, and to improve thequality of the Annual Financial statements. The standardised Chart of accounts will allow more accurate benchmarkingand comparisons across campus sites in a multi-site College, as well as between Colleges and Provinces.

Who should use this toolkit?

Members of Council, College Principals, Campus Managers, Chief Financial Officers, Administrative assistants and anyoneinvolved in ensuring efficient and effective operations at a College.

Queries and Updates

The toolkit is designed as a dynamic document, and will be updates periodically. As it is intended to indicate “bestpractice”, readers are encouraged to comment and provide ideas. These should be routed to -

Name: Steve Mommen / Ros Jaff

Office: Department of Education: National / National Business Institute

E-mail address: [email protected] / [email protected]

Tel no: (012) 312 – 5 311 / (011) 482 5100

Fax no: (012) 328 – 5 911 / (011) 482 4638


1 Statutory requirements1.1 The Further Education and Training Act, no. 98 of 1998

1.1.1 InterpretationThe FET Act, No. 98 of 1998 was passed to regulate further education and training; to provide for the establishment,governance and funding of public further education and training Colleges; to provide for the registration of private furthereducation and training Colleges; to provide for quality assurance and quality promotion in further education and training;to provide for transitional arrangements and the repeal of laws; and to provide for matters connected therewith.

The purpose of the Act is to establish a national co-ordinated further education and training system, which promotes co-operative governance and provides for programme-based further education training.

An FET institution has been defined by the Act (chapter 1(x)) as “any institution that provides further education and trainingon a full-time, part-time or distance basis and which is-

• Established or regarded as having been established as a public further education and training institution under this Act;• Declared as a public further education and training institution under this Act; or• Registered or conditionally registered as a private further education and training institution under this Act.”

A distinction is made in the Act between public (chapter 4) and private (chapter 5) FET Colleges.

Similarities in the Act for both Colleges:

1 Both have to keep books and records of income, expenditure, assets and liabilities;2 Both have to have their income and expenditure statements or records audited.

The distinctions from a financial perspective that can be deciphered from the FET Act are presented in the table below.Despite the fact that this is a broad overview, it is still very important to note as the Act prescribes the responsibilities ofthe College.

Public FET institution Private FET institution(Chapter 4 of FET Act, of 1998) (Chapter 5 of FET Act, of 1998)

GAAP (Generally Accepted Accounting Practices) is not “Every private further education and training institution must,

mentioned in the Act. Hence no referral is made it the in accordance with generally accepted accounting practice

financial statements being GAAP compliant. principles and procedures”.

The overall governance of the institution is required to The Act is silent in this regard.

be reported on.

• The Council must appoint an auditor. • The Act is silent in this regard (however see below).

• The statement of income and expenditure is only required • “Ensure that its books, records of account and financialto be audited. statements is carried out by an auditor...”

• The Act is silent in this regard. The auditor must conduct the audit in accordance withGenerally Accepted Auditing Standards (GAAS).

A balance sheet and cash flow statement is required to Not specifically mentioned.

be prepared.

The Act is silent in this regard. The Act indicates that financial statements have to be preparedwithin three months after the end of its financial year i.e.before the end of 31 March of the following year.

1.1.2 AuditorsIt is important to note that an auditor is defined in terms of the FET Act under chapter 1 as “any person registered interms of the Public Accountants’ and Auditors’ Act. 1991 (Act No. 80 of 1991)”

This has not been typically the case with certain Colleges and should be addressed when auditors are considered forreappointment.


1.1.3 Financial year endThe Act also prescribes the “financial year” in respect to a public FET institution as being “a year commencing on the firstday of January and ending the last day of December of the same year.” This indicates that institutions should not preparetheir annual financial statements for a 31 March year-end, as to do so would be incorrect.

1.2 Companies Act, of 1973

If the company has been incorporated in terms of Section 21, the Companies Act will be applicable.

Specific sections in the Companies Act that relate to FET Colleges are Section 21, Section 286(3) and Section 284.

1.2.1 Section 21In certain instances, a College may decide to incorporate as a Section 21 company (that is an association not for gain).This section states the following:

Any association—

• formed or to be formed for any lawful purpose;• having the main object of promoting religion, arts, sciences, education, charity-, recreation, or any other cultural or

social activity or communal or group interests;• which intends to apply its profits (if any) or other income in promoting its said main object;• which prohibits the payment of any dividend to its members; and• which complies with the requirements of this section in respect to its formation and registration, may be incorporated

as a company limited by guarantee.

The memorandum of such association shall comply with the following provisions:

• The income and property of the association whencesoever derived shall be applied solely towards the promotion of itsmain object, and no portion thereof shall be paid or transferred, directly or indirectly, by way of dividend, bonus, orotherwise howsoever, to the members of the association or to its holding company or subsidiary: Provided that nothingherein contained shall prevent the payment in good faith of reasonable remuneration to any officer or servant of theassociation or to any member thereof in return for any services actually rendered to the association.

• Upon its winding-up, deregistration or dissolution the assets of the association remaining after the satisfaction of all itsliabilities shall be given or transferred to some other association or institution or associations or institutions havingobjects similar to its main object, to be determined by the members of the association at or before the time of itsdissolution or, failing such determination, by the Court.

If a company is not incorporated in terms of Section 21, the following sections will still apply to the College

1.2.2 Section 286(3)“The annual financial statements of a company shall, in conformity with generally accepted accounting practice, fairlypresent the state of affairs.... and the profit or loss....”.

1.2.3 Section 284: Duty of a company (or in this case the College) to keep accounting records• Every College shall keep in one of the official languages of the Republic such accounting records as are necessary fairly

to present the state of affairs and business of the College and to explain the transactions and financial position of thetrade or business of the College, including:

- records showing the assets and liabilities of the College1;- a register of fixed assets showing the respective dates of acquisition and the cost thereof, depreciation, if any, the date

of any revaluation and the revalued amount, the respective dates of any disposals and the consideration received inrespect thereof: Provided that in respect of fixed assets acquired before the commencement of this Act, a College may,as at the end of its first financial year after the said commencement, take an inventory of all fixed assets and make arealistic allocation of the total value of fixed assets as shown in the financial statements as at that date over the inventoryof assets;- records containing entries from day to day in sufficient detail of all cash received and paid out and of the matters in

respect of which receipts and payments take place;- where the business of the College has involved dealings in goods, records of all goods sold and purchased and records

showing the goods and the buyers and the sellers thereof in sufficient detail to enable the nature of those goods andthose buyers and sellers to be identified; and

- statements of the annual stocktaking.

• The accounting records referred to in subsection (1) may be kept either by making entries in bound books or by

1 Company has been replaced with College through this section.2 Directors have been replaced with principal


recording the matters in question in any other manner, and where such records are not kept by making entries inbound books, adequate precautions shall be taken for guarding against falsification and facilitating its discovery.

• The accounting records shall be kept at the registered office of the College or at such other place as the principal2 thinkfit and shall at all times be open to inspection by the principal and if such records are kept at a place outside theRepublic, there shall be sent to and kept at a place in the Republic, and be at all times open to inspection by theprincipal, such financial statements and returns with respect to the business dealt with in those records as will disclosewith reasonable accuracy the financial position of that business at intervals not exceeding twelve months, subject toSection 285, and will enable the Colleges annual financial statements to be prepared in accordance with this Act.

1.3 Statements of Generally Accepted Accounting Practice (GAAP)

1.3.1 IntroductionGenerally Accepted Accounting Practices is a set of accounting principles, standards and procedures used to standardisethe reporting of financial statements. Generally Accepted Accounting Practices is set by the Accounting Practices Board.

The objective of financial statements is to provide information about the financial position, performance and changes infinancial position of an enterprise or in this case a College that is useful to a wide range of users in making economicdecisions.

Financial statements form part of the process of financial reporting. A complete set of financial statements normallyincludes a balance sheet, an income statement, a statement of changes in financial position (which may be presented in avariety of ways, for example, as a statement of cash flows or a statement of funds flow), and those notes and otherstatements and explanatory material that are an integral part of the financial statements.

They may also include supplementary schedules and information based on or derived from, and expected to be readwith, such statements. Such schedules and supplementary information may deal, for example, with financial informationabout industrial and geographical segments and disclosures about the effects of changing prices. Financial statements donot, however, include such items as reports.

The management of the College has the primary responsibility for the preparation and presentation of the financialstatements of the College. Management is also interested in the information contained in the financial statements eventhough it has access to additional management and financial information that helps it carry out its planning, decision-making and control responsibilities.

Management has the ability to determine the form and content of such additional information in order to meet its ownneeds.

1.3.2 Deviations from GAAPIf a College’s financial statements comply with Statements of Generally Accepted Accounting Practice these shoulddisclose that fact. Financial statements should not be described as complying with Statements of Generally AcceptedAccounting Practice unless they comply with all the requirements of each applicable Statement and each applicableapproved interpretation.

Inappropriate accounting treatments are not rectified either by disclosure of the accounting policies used or by notes orexplanatory material.

In the extremely rare circumstances when management concludes that compliance with a requirement in a statementwould be misleading, and therefore that departure from a requirement is necessary to achieve a fair presentation, aCollege should disclose:

1 that management has concluded that the financial statements fairly present the College’s financial position, financialperformance and cash flows,

2 that it has complied in all material respects with applicable Statements of Generally Accepted Accounting Practiceexcept that it has departed from a statement in order to achieve a fair presentation,

3 the statement from which the College has departed, the nature of the departure, including the treatment that thestatement would require, the reason why that treatment would be misleading in the circumstances and the treatmentadopted, and

4 the financial impact of the departure on the College’s net surplus or loss, assets, liabilities, equity and cash flows foreach period presented.

1.3.3 Financial statement componentsA complete set of financial statements includes the following components:a) Balance sheet,b) Income statement,c) A statement showing either


- All changes in equity, or- Changes in equity other than those arising from capital transactions with owners and distributions to owners

d) A cash flow statement, ande) Accounting policies and explanatory notes.

Each component of the financial statements should be clearly identified. In addition, the following information should beprominently displayed, and repeated when it is necessary for a proper understanding of the information presented:

a) The name of the reporting College or other means of identification.b) Whether the financial statements cover the individual College or a group of Colleges.c) The balance sheet date or the period covered by the financial statements, whichever is appropriate to the related

component of the financial statements.d) The reporting currency.e) The level of precision used in the presentation of figures in the financial statements.

1.3.4 Preparation of financial statements

Underlying assumptions

When preparing financial statements the following two underlying assumptions are relied upon:

Financial statements are prepared on the accrual basis of accounting. Under this basis, the effects of transactions andother events are recognised when they occur (and not as cash or its equivalent is received or paid) and they are recordedin the accounting records and reported in the financial statements of the periods to which they relate. Financialstatements prepared on the accrual basis inform users not only of past transactions involving the payment and receipt ofcash but also of obligations to pay cash in the future and of resources that represent cash to be received in the future.Hence, they provide the type of information about past transactions and other events that is most useful to users inmaking economic decisions.

The financial statements are normally prepared on the assumption that a College is a going concern and will continue inoperation for the foreseeable future. Hence, it is assumed that the College has neither the intention nor the need toliquidate or curtail materially the scale of its operations; if such an intention or need exists, the financial statements mayhave to be prepared on a different basis and, if so, the basis used is disclosed.

When management is aware, in making its assessment, of material uncertainties related to events or conditions that maycast significant doubt upon the College’s ability to continue as a going concern, those uncertainties should be disclosed.When the financial statements are not prepared on a going concern basis, that fact should be disclosed, together with thebasis on which the financial statements are prepared and the reason why the College is not considered to be a goingconcern.

Fair presentationThe overriding requirement of the Companies Act is fair presentation. The existence of a standard is an aid both tocomparability and to fair presentation. However, compliance with a standard is no guarantee that fair presentation will beachieved in the financial statements. Nevertheless, even though accounting standards are not conclusive as to fairpresentation they are highly influential and persuasive in that respect. Accordingly, it is necessary for departures to bedisclosed in an explanatory note to the financial statements.

It is recognised that there may be exceptional circumstances in which a statement of GAAP is not strictly applicablebecause, having regard to the circumstances, it would fail to yield fair presentation, i.e. to comply would be misleading.

Accounting policiesAccounting policies are the specific principles, bases, conventions, rules and practices adopted by a College in preparingand presenting financial statements.

Management should select and apply a College’s accounting policies so that the financial statements comply with all therequirements of each applicable Statement of Generally Accepted Accounting Practice and each applicable approvedinterpretation. Where there is no specific requirement, management should develop policies to ensure that the financialstatements provide information that is:

1 Relevant to the decision-making needs of users, and2 Reliable in that they:3 Present fairly the results and financial position of the College,4 Reflect the economic substance of events and transactions and not merely the legal form5 Are neutral, that is free from bias,6 Are prudent, and7 Are complete in all material respects.


1.3.5 ComparativesComparative information should be disclosed in respect of the previous period for all numerical information in thefinancial statements. Comparative information should be included in narrative and descriptive information when it isrelevant to an understanding of the current period’s financial statements.

When the presentation or classification of items in the financial statements is amended, comparative amounts should bereclassified, unless it is impracticable to do so, to ensure comparability with the current period, and the nature, amountof, and reason for, any reclassification should be disclosed. When it is impracticable to reclassify comparative amounts, aCollege should disclose the reason for not reclassifying, and the nature of the changes that would have been made ifamounts were reclassified.

1.4 The Public Finance Management Act and its effect on FET Colleges (PFMA)

The Public Finance Management Act, 1999, gives effect to Sections 213, 215, 216, 217, 218 and 219 of the Constitutionof the Republic of South Africa (Act 108 of 1996) for the national and provincial spheres of government. These Sectionsrequire national legislation to establish a national treasury, to introduce generally recognised accounting practices, tointroduce uniform treasury norms and standards, to prescribe measures to ensure transparency and expenditure control inall spheres of government, and to set the operational procedures for borrowing, guarantees, procurement and oversightover the various national and provincial revenue funds.

The Act adopts an approach to financial management, which focuses on outputs and responsibilities, rather than the rule-driven approach of the old Exchequer Acts. The Act is part of a broader strategy on improving financial management inthe public sector. The Act itself assumes a phased approach towards improving the quality towards improving thefinancial management in the public sector. Implementation in the first phase will focus on the basics of financialmanagement, like the introduction of proper financial management systems, appropriation control and the accountabilityarrangements for the management of budgets.

The Public Finance and Management Act (Act 1 of 1999) must be read together with the Public Finance ManagementAmendment Act (Act 29 of 1999). The Act stipulates the following:

“To regulate financial management in the national government and provincial governments; to ensure that all revenue,expenditure, assets and liabilities of those governments are managed efficiently and effectively; to provide for theresponsibilities of persons entrusted with financial management in those governments; and to provide for mattersconnected therewith.”

The aim of this Act is to modernise the system of financial management in the public sector and will lay the basis for amore effective corporate governance framework for the public sector.

As it currently stands FET Colleges are not required to comply with the PFMA. The explanation for this lies in Section 47and Section 3 of the Act.

In Section 47 (4) of the Act the Minister may not list the following institutions:

1) A constitutional institution, the South African Reserve Bank and the Auditor-General;2) Any public institution which functions outside the sphere of national or provincial government; and3) Any institution of higher education.

The Act contains an objective which is described as the following “ to secure, accountability and sound management ofthe revenue, expenditure, assets and liabilities of the institutions to which the Act applies”.

Section 3 of the Act lists the institutions, which currently have to comply, these are:

1) Departments;2) Public entities – national or provincial (higher education is precluded from being included)3) Constitutional entities and 4) Parliament and provincial legislatures.

However since the principal of a College is the accounting officer, the Department of Education has decided thatPFMA will be a future requirement for these Colleges. A policy decision will have to be made by the Department, ascurrently it is not a legislative requirement. This toolkit thus establishes the implementation framework for both thecurrent financial environment, as well as the imminent change to the PFMA policy framework.

The Annual Financial Statements requirements if PFMA is applicable, are as follows:The Accounting Authority is required in terms of Section 55(1)(b) of the PFMA to “prepare financial statements for eachfinancial year in accordance with generally accepted accounting practice.


Treasury Regulation 28.1.6 states: “In terms of Section 55(1)(b) of the Act, public entities shall prepare financialstatements in accordance with generally accepted accounting practice. Should these statements materially depart fromStatements of GAAP, the financial statements must provide disclosure of the departure, the particulars thereof, the reasonstherefore and the effect of such departure on the financial statements.” This is a new regulation, which took effect 1 April2002.

Annual Report

The requirements, as well as the current compliance (6 June 2003) thereto are summarised in this table:

The following is a checklist to be used by Colleges to determine whether they are complying with the PFMA:

Regulation Details Comment

28.1.1 The annual financial statements must, include a report by the accounting authority The College does not have& 28.1.2 whichmust also include a disclosure of emoluments of all directors and executive directors however executive

members of the holding entity and its subsidiaries. Emoluments paid or receivable committee members mayby directors and executive members shall be disclosed in aggregate and per be required to comply.director and executive member in respect of the last financial period. Such disclosure is required whether such payment is receivable in the director’s or executive member’s capacity as director or executive member or in any othercapacity. Disclosure in respect of executive directors, non-executive directors and executive members must be made separately.

The disclosure requirement in Treasury Regulation 28.1.1 shall include:(a) fees for services as a director or executive member;(b) basic salary;(c) bonuses and performance related payments;(d) sums paid by way of expense allowances;(e) contributions made to any pension fund, medical aid, insurance scheme, etc;(f) any commission, gain or profit sharing arrangements;(g) any share options, including their strike price and period; and(h) any other material benefits received.

28.2.1 The annual report of public entities shall detail the materiality/significant framework applied during the financial year.

55(2)(a) The annual report and financial statements referred to in subSection (1) (d) must – (a) fairly present the state of affairs of the public entity,its business,its financial results,its performance against predetermined objectivesand its financial position as at the end of the financial year concerned;

55(2)(b) include particulars of – (i) any material losses through criminal conduct and any irregular expenditure and

fruitless and wasteful expenditure that occurred during the financial year: (ii) any criminal or disciplinary steps taken as a consequence of such losses or

irregular expenditure or fruitless and wasteful expenditure;

55(2)(b) include particulars of – (iii) any losses recovered or written off;

55(2)(b) include particulars of – (iv) any financial assistance received from the state and commitments made by

the state on its behalf; and

55(2)(b) include particulars of – (v) any other matters that may be prescribed; and

55(2)(c) include the financial statements of any subsidiaries.

27.1.7 It must be disclosed in the entity’s annual report whether or not the audit committee has adopted a formal terms of reference and if so, whether the committee satisfied its responsibilities for the year, in compliance with its terms of reference.

27.1.10 The audit committee must -(a)...(b) report on the effectiveness of internal controls in the annual report of the

institution(c) comment on its evaluation of the financial statements in the annual report.


Report by external auditors

Regulation Details Comment

61 (1) The report of an auditor appointed in terms of Section 58 (1) (b) must be addressed to the executive authority responsible for the public entity concerned and must state separately in respect of each of the following matters whether in the auditor’s opinion – (a) the annual financial statements of the public entity fairly present the financial

position and the results obtained by the entity in accordance with subsection 55 (1) (b) applied on a basis consistent with that of the preceding year;

61(1)(b) if required by the Auditor – General, the performance information furnished in Not required.terms of subsection 55 (2) (a) is fair in all material respects and, if applicable, on a basis consistent with that of the preceding year; and

61(1)(c) the transactions that had come to the auditor’s attention during auditing were in all material respects in accordance with the mandatory functions of the public entity determined by law or otherwise.

61(2) The auditor – (a) must report to the executive authority responsible for the public entity the

results of any investigation carried out under subsection 60 (2) (c); and (b) when reporting in terms of paragraph (a), must draw attention to any other

matters within the auditor’s investigation which, in the auditor’s opinion, shouldin the public interest be brought to the notice of Parliament.


2 Governance structures and requirements2.1 Corporate governance

Corporate governance embodies processes and systems by which Colleges are directed, controlled and held to account.Corporate governance in South Africa was institutionalised by the publication of the King Report on CorporateGovernance in November 1994, which report has subsequently been superseded by the King Code of 2002. The purposeof the King Report is to promote the highest standards of corporate governance in South Africa. The Code of CorporatePractices and Conduct contained in the King Report applies inter alia, to State-owned Enterprises and agencies that fallunder the PFMA. In this regard, it is applicable to FET Colleges. In addition, the FET Act (Act 90 of 1998) also includesprovisions relating to Governance, which have been summarised below.

2.1.1 Governance structures

2.1.1.1 Institutional governance structures1) Every further education and training institution must establish a Council, an academic board, a student representative

council and such other structures as may be determined by the council subject to the approval of the MEC.2) The structures referred to above must elect a chairperson, vice-chairperson and other, office bearers from among its

members in the manner determined by the MEC by notice in the Provincial Gazette or in terms of a provincial law.3) The chairperson, vice-chairperson or other office bearers of the Council may not be students or members of the staff of

the institution, but the secretary may be a member of staff.

2.1.1.2 Council1) The Council of a further education and training institution must perform all the functions, which are necessary to

govern the further education and training institution, subject to the FET Act – and any applicable provincial law.2) The Council of a public further education and training institution must consist of -

- a principal;- the vice-principal or vice-principals;- not more than five persons appointed by the MEC;- members of the academic board elected by the academic board;- members of the lecturer staff of the public further education and training institution elected by such staff;- students of the public further education and training institution, elected by its student representative Council;- staff other than lecturer staff elected by such staff of the public further education and training institution and- such additional persons as may be determined by the council in consultation with the MEC.

3) At least 60 per cent of the members of a council must be persons who are not employed by or who are not studentsof the public further education and training institution in question.

4) The members of the Council -a) must be persons with knowledge and experience relevant to the objects and governance of the public further

education and training institution in question; andb) must participate the deliberations of the Council in the best interest of the public further education and training

institution in question.5) Every further education and training institution must appoint a principal, a vice-principal or vice-principals and such

other officers as may be determined by the council subject to the approval of MEC.• The non-executive members should be of sufficient calibre that their views will carry significant weight within College

Council decisions. • The College Council should devise and regularly review criteria for membership.• An annual review of the required mix of skills, experience and other qualities, including core competencies of non-

executive members should be performed.• The College Council should establish performance criteria for itself and periodically review its performance against

those criteria.• A remuneration or management compensation committee could be established.• The College Council should establish an Audit Committee with written terms of reference confirmed by the College

Council.• Membership of the Audit Committee should include at least 2 non-executive members and should be chaired by a

non-executive member.• The Audit Committee should have the responsibility to ensure that management has instituted an effective system of

risk management and internal control. • Audit Committee meetings should be attended by the head of the internal audit department, the external audit

partner and the CFO.• The Audit Committee should periodically evaluate its performance against benchmarked criteria.

2.1.1.3 Academic BoardThe academic board of a further education and training institution is accountable to the council for – a) the academic functions of the further education and training institution and the promotion of the participation of

women and the disabled in the learning programmes;


b) establishing internal academic monitoring and quality assurance procedures;c) ensuring that the requirements of accreditation to provide learning against standards and qualifications registered on

the National Qualifications Framework are met; andd) performing such other functions as maybe delegated or assigned to it by the Council.

Subject to the approval of the council and to the policy, the academic board must determine the learning programmesprovided by the further education and training institution.

The academic board of a further education and training institution must consist of – a) the principal;b) the vice-principal or vice-principals;c) members of the educator staff of the institution;d) members of the council;e) members of the student representative council; andf) such additional persons as may be determined by the council.

The majority of members of the academic board must be members of the educator staff of the public further educationand training institution in question.

2.1.1.4 Funds of public further educations and training institutionsThe funds of the public further education and training institution consists of – - funds allocated by the State;- any donations or contributions received by the institution;- money raised by the institution;- money raised by means of loans subject to the approval of the MEC;- income derived from investments;- money received for services rendered to any other institution or person;- money payable by students for further education and training programmes provided by the institution;- money received from students or employees of the institution for accommodation or other services provided by the

institution andother funds from any other source.• The non-executive members should be of sufficient calibre that their views will carry significant weight within College

Council decisions. • The College Council should devise and regularly review criteria for membership.• An annual review of the required mix of skills, experience and other qualities, including core competencies of non-

executive members should be performed.• The College Council should periodically review its size and composition to ensure it is appropriate for effective decision-

making.• The College Council should establish performance criteria for itself and periodically review its performance against those

criteria.• A remuneration or management compensation committee should be established.• The College Council should establish an Audit Committee with written terms of reference confirmed by the College

Council.• Membership of the Audit Committee should include at least 2 non-executive members and should be chaired by a non-

executive member.• The Audit Committee should have the responsibility to ensure that management has instituted an effective system of

risk management and internal control. • Audit Committee meetings should be attended by the head of the internal audit department, the external audit partner

and the CFO.• The Audit Committee should periodically evaluate its performance against benchmarked criteria.

2.1.2 Tone at the top• A Code of Ethics (incorporating stated values for the entity) should be developed and implemented by involving all

stakeholders.• The code should receive total commitment from the College Council and principal.• It should be sufficiently detailed to give a clear guide as to what is expected behaviour of all employees.• The College Council should establish and monitor policies to ensure the highest standards of ethics are maintained and

all relevant legislation is complied with.

2.1.3 Strategy• The College Council is responsible for the adoption of a strategic planning process. It should establish performance

criteria for itself and periodically review performance against those criteria.

2.1.4 Risk management• The College Council should identify the principle risks of the organisation and ensure the implementation of systems to

manage these risks.


• The Audit Committee should have the responsibility to ensure that management has instituted an effective system ofrisk management and internal control.

• The directors should conduct a review on the effectiveness of the organisation’s risk management and internal controlsystems and report to the shareholders that they have done so.

• The organisation should have an effective internal audit function. It should have the respect and co-operation of boththe College Council and senior management.

• The internal audit department should comply with the Standards for the Professional Practice of the Institute for InternalAuditing.

2.1.5 Managing management• The College Council should monitor the executive management and succession management. Performance related

elements of remuneration should form a significant portion of the management’s remuneration.

2.1.6 Communication• Any communication with stakeholders should be balanced, understandable, transparent and timeous.• The information provided should be based on the principles of openness, substance above form and should address

material matters of interest and concern to all stakeholders.• The College Council should report its approach to corporate governance in the annual financial statements detailing

the:- extent of compliance with the King Code of Corporate Governance recommendations- responsibility for the annual financial statements- functioning of the Audit Committee (where applicable)- functioning of the Remuneration Committee- role of internal audit- responsibility for risk management and control and how they have demonstrated their accountability- relevant commitment to ethical behaviour- adoption and maintenance of a code of ethics - going concern statement- relevant shareholder reporting, such as affirmative action, community commitment and environmental reporting.• The College Council should present a balanced and understandable assessment of the organization’s position in

reporting to stakeholders.• The College should report on performance against benchmarked criteria (refer to financial statement templates).

2.1.7 Transaction approval• The College Council should ensure that decisions on material matters are in their hands. They should have a formal

schedule of matters specifically reserved for decision-making and develop a definition of materiality. • The College Council should meet at least once a quarter. This should however be determined with reference to the

specific circumstances of each College.


3 The FET business model3.1 Introduction

3.1.1 Co-ordinators of the business model developmentThe objective of this Further Education and Training (FET) business model is to assist in the continuing development andunderstanding of Further Education and Training sector through its availability and use by the FET Colleges. The modelalso attempts to set a standard or precedence amongst all Colleges within the FET sector. Deviations from the model arepossible based on the environment within which the College operates. This fact has been recognised and the model isnot intended to be rigid.

The information contained in this section of the policies and procedures toolkit has been based on information derivedfrom selected Colleges. These Colleges were selected based on the extent to which the merger process had been effectedand implemented.

The FET support manager at the Department of Education, will co-ordinate the update of the database and ensure that itis made available to all FET College members.

3.1.2 How to useIn principle, the model is intended to assist interested parties in order to obtain a better understanding of the keyprocesses/business drivers/risks within a Further Education and Training (FET) environment and draws on the model to actas an aid in that understanding. By the same token, the model is intended to be dynamic and be updated periodically asthe industry evolves.

It will be noted that the FET business model draws heavily on process analysis; many FET Colleges are wholly processmanaged, and many are almost wholly functionally managed. It is believed that large parts of the attached analysis willapply to all Colleges in the industry, even though in its totality it may not totally reflect the way the Colleges aremanaged and controlled.

It must be appreciated that this business model is essentially a generic FET business model based on best practiceprinciples. In other words, this business model is provided as a starting point for investigating and ultimatelyunderstanding your institution. Bear in mind that data analysis is the most important factor.

3.1.3 Benchmarking – cautionary statementsAlthough financial and non-financial benchmarks are very effective business analysis tools, there are several factors thatmay affect the reliability of ratios or the comparability of ratios among Colleges and industry average. The followingfactors highlight the importance of considering the underlying financial and non-financial data during benchmarkinganalysis.

The quality of a benchmarking analysis depends on the selection of the proper peer group. In order to avoid comparingapples and oranges and misinterpreting either financial or non-financial data, the structure of the peer group in terms ofthe industry, the segment, the products (i.e., Colleges with multiple campus sites), and the size of the College need to beconsidered carefully.

FinancialAccounting conventions and the choice of accounting methods may have a significant impact on financial statementsand, therefore on the ratios computed from those financial statements. Applying different accounting methods will impaircomparability of the ratios over time and across Colleges. Even the comparison of financial ratios between companieswithin the same country may be influenced by the selection of different accounting methods.

In addition, there are wide variations around the world when defining individual accounting items (e.g., ‘short/longterm’, ‘operating’, ‘extraordinary’), the format of accounts, and the depth of detail contained in the statementsthemselves and in the notes to the accounts. When cross-border companies are used in an analysis, the potential impactresulting from the currency conversion, inflation, and different costs of living have to be considered.

Obviously, linguistic and cultural diversity is reflected in financial accounts, but their form and content is influencedadditionally by less obvious factors (such as the legal system, the nature of corporate ownership), methods of corporatefinancing, customary business practices such as the maintenance of low-inventory levels, taxation, the prominence of theaccounting and auditing profession, and so on.

Although data providers try to make adjustments to unify financial data, it is important to understand the limitations ofratios as comparisons when different accounting methods are employed, in particular when cross-border comparisons arepart of the analysis.


Non-financialIn contrast to financial data, the analysis of non-financial data is not affected by accounting methods or the influence ofdifferent currencies. Therefore, the validity of non-financial ratios depends on the exact definition of the information used.Because non-financial ratios are not yet generally standardised, it has to be ensured that the components of the ratio(measurement of time or process transactions) have been applied simultaneously by the Colleges within the analysis.Thus, non-financial data are not easily available through public domain; the methodology and the quality process of thedata provider as well as the population of the companies included in the computation of the data are critical with regardto the validity of non-financial information.

Picking the proper peer group (segment) when comparing Colleges is even more important for non-financial informationbecause processes vary greatly by segment and/or service provided or product.

3.2 FET business model

The entity-level business model is used to describe the inter-linking activities carried out within a College, the externalbusiness drivers and stakeholders that bear upon the College, and the business relationships with persons outside theCollege. The items included in the entity-level business model include the following components:

3.2.1 External Business Drivers and Stakeholders

External Business Drives and Stakeholders are those outside factors, pressures etc that can prevent a College from attaining itsobjectives. One of the ways to classify such external forces follows:

General environment Competitive environment Operating environment

Political / legal Competitors Markets

Macroeconomics New entrants Customers

Technological Substitute products Competitiveness

Demographic Buyers Trade regulations

Socio-cultural Suppliers Economics

3.2.2 Markets

Markets are the segments of an industry that are applicable to the College.

When analysing markets we may:

• Identify the College’s significant market segments;

• Obtain an understanding of how the products and services are positioned within the market segments;

• Obtain an understanding of the relationship between a College’s market segments and its business objectives and strategies.

3.2.3 Business Processes

A business process is a structured set of activities within an College, designed to produce a specified output. A businessprocess emphasis how work is performed rather than what is done. It is also structuring of work activities across time andplace to transform inputs, such as information, materials and resources, to outputs, such as the products or services forcustomers or other users.

Processes are usually linked with the outputs of one process being the inputs of another process.

Strategic Management Process: the strategic management process is the process that:

• develops the College’s mission,

• defines the College’s business objectives,

• identifies the business risks that threaten attainment of the business objectives,

• manages the business risks by establishing business processes, and monitors progress toward meeting the business objectives.

When we analyse the Strategic Management Process we may include of how management (including the Board of directors,as appropriate):

• sets the overall direction for the College;

• monitor the external environment and asses the strategic implications of potential opportunities and threats;

• monitors the extent to which strategies have been implemented;

• understand the strategies and capabilities of the significant competitors;

• analyses the College’s strengths and weaknesses;


• appropriate resources to the other business processes.

Core Business Processes

Core business processes are the processes that develop, produce, sell, and distribute a College’s products and services. Theseprocesses do not follow traditional organisational or functional lines, but reflect the grouping of related business activities.

3.2.4 Alliances / Relationships with Suppliers

Alliances are the types of relationships with third parties that entities in the industry may establish to:

attain business objectives,

• expand business opportunities

• reduce or transfer business risk.

When analysing Relationships with Suppliers we may

• identify a College’s significant suppliers;

• obtain an understanding of an College’s relationship with its suppliers;

• obtain an understanding of relationship between a College’s significant suppliers and its business objectives and strategies.

3.2.5 Products and Services

Products and Services are the significant products and services typically offered by entities within the industry. Whenanalysing Products and Services we may obtain

• an understanding of the College’s significant products and services;

• an understanding of the stage that significant products and services have reached in their life cycle;

• an understanding of the relationship between a College’s significant products and services and its business objectives andstrategies.

3.2.6 Customers

Customers are the significant types of consumers within the markets in the industry that entities may choose to focus on.When analysing customers we may

• identify a College’s significant customers;

• obtain an understanding of the relationship between a College’s significant customers and its business objectives andstrategies.

Enrolment

Service Delivery

Curriculum Management

Human Resources

Facilities Management

Sponsorship & Fundraising Management

Financial Management

Materials Management

Information Management

Key of iconsCross check icons in graphs along with theirrepresentation in the text


External B

usiness Drivers

Suppliers M

arkets/Custom

ers Stakeholders S

ubstitutes Em

ployees Business G

overnment (N

ational & P

rovincial)

Existing C

ompetitors

New

Entrants E

conomy

Learner-

ships

Diplom

as

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programm

es

Continuing

education

Basic

research

Other

programm

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SE

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Strategic Managem

ent

Core P

rocesses

Delivery

Managem

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Resource P

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Resources

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anagement

SETAs Business schools/universities

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• D

iplomas

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ertifiedcoursecom

pletion•

Jobplacem

ent

Research:

• Technicalreports

• T

rainingofindividuals

Hospitals

Service and supply

Learners

Alum

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Em

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Parents

Governm

ent

State &

localG

overnments

Other program

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Markets

Business P

rocesses Alliances

Core Services

Custom

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Enrolm

entS

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Curriculum

Hum

anF

acilities

Sponsorship

Financial

Materials

Information


3.3 Process analysis template

A process analysis template is used throughout this business model to document the strategic management, corebusiness, and resource management processes. The following pages explain the components of the template.

Process Objectives Processes are established to serve specific customer needs. The customers may be internalcustomers, such as another process, or external customers. The process objective defines whatvalue is going to be supplied to the customer. One can look at it as the whole purpose forwhich the organisation has put together this set of resources and activities.

Process objectives need to be specific, measurable, attainable, realistic, and have a sense oftime. Most organisations will have fairly similar strategic management processes. However,their core business and resource management processes may differ significantly, as they areshaped by the organisation’s strategic objectives and the related critical success factors.

Systems The systems are collections of resources designed to accomplish process objectives. Informationsystems produce reports containing operational-, financial-, and compliance-relatedinformation that make it possible to run and control the process.

Inputs The inputs to a process represent the elements, materials, resources, or information needed tocomplete the activities in the process.

Activities The activities are those actions or sub-processes that together produce the outputs of theprocess. For some processes, arrows are omitted due to the non-sequential nature of theactivities.

Outputs The outputs represent the end result of the process-the product, deliverable, information, orresource that is produced.

Critical Success Factors (CSFs) KPIs Linked to CSFs

Critical success factors (CSFs) are the prerequisites and areas Key performance indicators (KPIs) are quantitativeof dependency for a process to be successful. CSFs may be measurements, both financial and non-financial, of theinputs, parallel or supporting activities, or aspects of a process’s ability to meet its objectives and of the processbusiness’s philosophy or infrastructure necessary to ensure the performance. They are usually analysed through trend analysesproper delivery of the process. The CSFs relate directly to one within a College or through benchmarking against a peer of or more of the processes objectives. They are normally limited the College or its industry. The KPIs that should be listed must in number. be relevant to the CSFs and/or the process objectives. The KPIs

listed must have relevance to the organisation. Taken togetherthey should provide a key set of measures for measuringprocess performance-achieving process objectives.

Classes of Transactions The classes of transactions are data and information that are related to the process for use inone or more reports to management or third parties. The classes of transactions, which arebroken down into routine and non-routine transactions and accounting estimates, provide alink from the process to the financial statements of the College. Every process will have one ormore classes of transactions.


3.4 Strategic management processes

Strategic Management

Core Processes

Delivery

Management

Resources Management

&FundraisingManagement

Management

Management Management

Resource Processes

Enrolment Service

Curriculum

Human Facilities

Sponsorship Financial

Materials Information


Process Description Strategic Management is the process of defining the mission of the College and the community the College serves, formalising them into a mission statement and converting thestatement into a strategy that identifies market niches and programmes and services to beoffered. The mission may be singular (instruct students from a geographic area) or multiple(instruct students, carry out research). The community served may be local, regional, nationalor international and may be different for each mission. The strategy will then be codified into a long-range plan for the institution. The long-range plan is coordinated with shorter-termoperating plans (operating budgets, capital budgets, program reviews).

Process Objectives Promote College’s image through mailings, media and meetings with constituents

Maintain current accreditation status

Implement new programmes based upon market research or strategy/mission established

Maintain balanced budget


3.5 Core management processes


Core Processes

Delivery

Management



Management


Resource Processes

Enrolment Service

Curriculum

Human Facilities

FinancialSponsorship



Co

re Bu

siness: Ed

ucatio

n C

ore B

usin

ess Pro

cess: Enro

lmen

t

Inputs A

ctivities Outputs

Adm

issions Database, C

lass Registration D

atabase, Billing S

ystem, H

ousing Database, G

eneral Ledger

Accepted

Learners

Financial A

idA

pplications

Registration

Form

s

Qualifications

Departm

entof E

ducationS

tandards andP

rogramm

es

24 Hour

Placem

entF

orm

Application of

Learners for

Classes and

Program

mes

Process

Financial A

idP

ackage

Provide R

oom and

Board

Bill T

uition andR

egistration,R

oom and B

oard,and Fees

Collect P

ayments

and Apply

Financial A

id

Drop/A

dd Courses

and Modify

Billings/F

inancialA

id

Planning

(Tim

etable FTE

numbers etc)

Register

Learners for

Classes and

Program

mes

Reim

bursements of

TuitionF

ees

Learner

Registered

for Classes

andProgram

mes

Paid Fees

Finalisednum

bers andtim

etablesetc.


3.6.1 Core process: enrolment

The enrolment management function consists of the following sub-processes:

A. Planning for the year ahead B. Admission normsC. RegistrationD. Reimbursement of tuition feesE. Financial aid

Process Description Qualification standards, which students need to adhere to in order to enrol at the College, arepre-set. Programmes and the College are marketed to potential students. Prospective students’qualifications are reviewed, after which students fill out application forms and deposits tuitionfees in the College’s bank account. After proof of deposit is received, students are registeredonto the system and notified of registration in writing. Financial support for students whoqualify is also addressed during this process.

Process Objectives 1 Reduce cycle time to process students by X hours

2 Increase admissions from non-traditional students by Y% from prior year

3 Increase total enrolment by X

4 Increase yield from accepted students by X%

5 Increase number of needy students helped by X%

Systems Business and administrative system

A. Core process: enrolmentSub-process: planning for the year ahead

Inputs Programmes to be presented for the following academic period

Available resources, e.g. classrooms, lecturers

Activities Planning is done at campus level, addressing issues such as number of classes to be presentedand number of students that can be accommodated in the Programmes

Designated persons of the different departments have meetings, where preliminary numbers ofstudents that can be accommodated are compiled.

Timetables are prepared for the new academic period based on the outcome of the planning

Marketing of Programmes are done at campus level, and Programmes introduced toprospective students by way of open days, local newspapers, exhibitions, posters, etc.

Outputs Preliminary timetables are set and finalised after enrolment.

Student numbers per programme that can be accommodated

Advertisements, exhibitions, posters, etc.

B. Core process: enrolment Sub-process: admission norms

Inputs Minimum qualification standards as prescribed by DoE (admission norms)

Intended programmes for the academic year (DoE and non-DoE Programmes)

Qualifications held by prospective students

Activities Qualification standards must be set for all intended Programmes before enrolment commences

Standards set by the DoE are circularised

Authorisation of qualification standards by the council (via the principal of the College)

Authorised qualification standards are communicated to prospective students

Qualifications held by prospective students are reviewed to ensure that they comply with thequalification standards set for the programme they wish to enrol for

Outputs Authorised qualification standards for all Programmes presented by the College

Prospectuses, brochures, website etc where qualification standards are communicated toprospective students

Approval of qualifications held by prospective students


C. Core process: enrolment Sub-process: registration process

Inputs Programmes to be presented in the academic year

Cut-off dates for enrolment as prescribed by DoE

Prospective students

Information station and placement desks

Completed application forms

Deposit slips

Credit forms

Activities Application:

There are four enrolment periods during the year. Enrolment is done on a first come first servebasis and students need to apply personally.

Students must apply before cut-off dates as determined by the campus site.

An information station (information desk) is set up in the enrolment venue.

Prospective students go to the info desk, where all information needed by them is supplied andfrom where they are directed to the relevant placement desks

Existing students, who wish to enrol for a next course, can get a printout of results fromadministration. The printout should be stamped as proof of authenticity. Results can also beverified by lecturers

Lecturers staffing the placement desks assist prospective students in filling out the applicationform. Students’ current qualifications, identification documents (birth certificates, ID documentor study permits for foreigners) are also reviewed at this stage to ensure that they qualify forenrolment. Campus rules are supplied to students, which need to sign them as confirmation ofadherence to rules.

A 24-hour placement form is used to reserve a place for students on the programme that theywish to enrol for.

Alternative routes exist – e.g. learnerships. All cases are dealt with separately. The HoD ordelegated person of the department needs to assess all details relating to the application inorder to decide whether the student will be submitted to the College. The Academic Boardauthorises admission, through to the DoE.

Payment:

A minimum prescribed amount per programme should be determined by the College.

Enrolment fees must be paid before students are registered for the programme they wish toenrol for.

Tuition fees can be paid in cash, or at some campuses, an arrangement for credit can be made.Financial assistance can be provided where students qualify.

If campuses don’t accept cash – students receive a deposit slip, and need to deposit the moneyinto the College’s bank account and provide proof of doing so before being registered.

An application form needs to be completed and signed by an authorised person (usuallyparents) in instances where students under 18 years old, want to arrange for credit. Even whencredit is granted, students need to pay a deposit.

A standardised contract should be used to arrange credit payments.

Bursary students need to provide written proof of bursary received, before the bursary will beacknowledged.

Lecturers have the right to withhold student results if fees are outstanding.

Outstanding class fees are collected from students

The cash flow must be monitored after each enrolment

Registration:

After tuition fees have been paid, students return to the placement desk from where completedforms are sent to Administration

Students information is entered onto the business and administrative system, the class list anda student card is prepared as well as a receipt for monies received.

Students should have the option to wait or to come back the following day to check if thedetails on the system were correctly captured.

Once the information has been entered onto the Business and Administrative system, aprintout is made, which must be signed by the student, as proof that the details captured onthe system have been checked and are correct.

Two letters of registration should be printed – one for the student and one to be kept for


Activities (continued) administration purposes.

Students receive a receipt, student card, student number, timetable, exam timetable and letterof registration.

A class list is printed using the Business and Administrative system, and students sign the classlist when attending their first lecture to ensure that they are registered for the correctprogrammes.

Outputs Completed application form

Payments received

Registered students

Student numbers, student cards, timetables

Class list as prepared from the Business and Administration system

D. Core process: enrolment Sub-process: reimbursement of tuition fees

Inputs Application for reimbursement of tuition fees

Activities Tuition fees are reimbursed according to scales determined by the financial committee, ifapproved, or on a merit basis.

Registration fees are not refundable

Reimbursement of tuition fees can be approved on the following grounds:

• Death of a student

• Illness confirmed by a medical certificate

• Transfer to another educational institution (confirmed by the institution)

• A course / subject not offered

• Subject clashes due to changes in the class time table

• Where the programme they would like to enrol for is already full and tuition fees have beenpaid.

• After adjustment of marks by Provincial Department of Education: Examinations Directorate

If a student requests to enrol for fewer subjects, or wants to alter the subject he/she hasenrolled for, not later than the second Friday of the year, semester or trimester and confirmedin writing by the person responsible for the payment of the account, the person will bereimbursed after an administrative fee has been deducted.

Applications that will be dealt with on merit:

• Student has attended no classes and notified the campus site in writing before the classeshave commenced.

• The Department has changed the syllabus.

• The working conditions of the student have changed in such a way that the student is unable to attend classes. The student’s employer must confirm this.

• Student requests to enrol for fewer subjects or wants to alter the subjects he/she enrolled for, not later than the second Friday after enrolment and confirmed in writing by the personresponsible for the payment of the account. The student will be reimbursed after anadministrative fee has been deducted.

An administrative fee is calculated at X% of the amount payable up to a maximum amount for a refund of a deliberate overpayment, will be levied. The financial committee will determine this maximum administration fee annually.

The campus manager must approve all reimbursements.

Students bind themselves upon registration to the above by signing the registration form.

The campus manager or his/her delegate must approve all reimbursements.

Outputs Reimbursement of student fees (per cheque or electronic transmission)


E. Core process: enrolment Sub-process: financial aid

Inputs Application from students

Available bursaries

Achievers exam results

Activities Different kinds of bursaries are available, e.g. local government bursaries, bursaries for needystudents, bursaries for staff children, campus specific bursaries, bursaries for achievers, SRCbursaries.

Students need to apply for bursaries before the cut-off dates, should they be interested(bursaries for needy students)

Achievers do not need to apply for bursaries, as these are based on their results.

Application forms must be accompanied by the necessary documentation to be considered

Applications are assessed and allocation of bursaries approved by the committee in accordancewith the funds that were set aside (budgeted)

Students receiving bursaries must pass in order to stay eligible for further financial support,thus results are monitored

Outputs Financial support to students

Core process: enrolment

Critical Success Factors (CSFs) Key Performance Indicators Linked to CSFs

Effective technology Correctly placed students

Appropriately trained staff Number of changes in courses

Sufficient number of staff Number of enquiries received

Effective planning Decreased waiting time

Effective external and internal communication % of refunds / reimbursements

Properly documented processes and procedure manuals % of subject/ programme changes

Needy students supported through financial bursaries Number of needy students assisted

Appropriate logistical arrangements Number of needy students turned away

Registration time

Computer downtime

Core process: enrolment

Classes of Transactions The following transactions may be generated by this process:

Routine:

Payment received for enrolment fees (tuition and registration fees)

Debtors where credit had been arranged by students

Non routine:

Refunds where programmes have been paid for in full


Co

re Bu

siness: Ed

ucatio

n C

ore B

usin

ess Pro

cess: Service Delivery

Inputs A

ctivities Outputs

Learner

Registered

for Classes

Faculty

Defined

Curriculum

Em

ployer/JobR

equests

Com

munity

Need or

Request

Assess C

urrentN

eeds and Plan

Curriculum

Deliver

InstructionE

valuate andA

ssess Learner

Com

petency

Graduate and Place

Learners

Students

Participate in

Other C

ampus

Activities

Counsel

Learners

Assess T

eachingE

ffectiveness

Educated and

Placed

Learner

Grade and

Placem

entS

tatistics

Updated

Em

ployerN

eeds

Updated

Curriculum

Needs

Com

munity

Upliftm

ent

Learner and C

lass Registration D

atabases, Hum

an Resources D

atabases, Billing S

ystem, H

ousing Database,

Grade S

ystem D

atabase, Em

ployer Information, G

eneral Ledger


3.6.2 Core process: service delivery

The service delivery management process consists of the following sub-processes:

A. Community involvementB. Educational C. Learner support

Process Description The most important part of the Core Business is the actual instruction of the students, advisingthem, graduating them and placing them with employers or higher levels of education.Students purchase books and other course materials during this process.

Community services are a primary function of many charitable or other not-for-profitorganisations. Colleges engage in a wide array of community service programmes including:Homeless shelters and housing, food banks, recreational, religious, cultural, social welfare,medical services (health clinics and hospices).

Factors such as the College’s mission, resources, and community needs drive the types ofcommunity services programmes delivered. Demand for services can be unpredictable for someand predictable for others. The costs of these programmes are driven by the level of need andcan also be constrained by resources.

The College will provide a support function to help students as far as possible, so that theireveryday student life are sustainable and productive.

Process Objectives 1 Improve or maintain specified levels of student retention and graduation

2 Place students among employers prior to graduation

3 Increase satisfaction of course content and faculty

4 Increase grade point average of the student body

5 Increase rating for faculties undergoing instructional peer review

6 Maintain compliance with accrediting agency standards

7 Increasing professional member competence

8 Offering relevant and appropriate programmes in a cost efficient manner

9 Monitoring the success / effectiveness of programmes

10 Identifying community needs in context of own specific mission

11 To assist students with learning disabilities

12 To act as a sounding board or support function for students with trouble.

Systems Business and administrative systems

A. Core process: service delivery Sub-process: community involvement or programmes

Inputs Community need or request

Activities Assessing community needs through market research

Prioritise all needs in context of the College’s mission and objectives

Identifying services which the College can provide

Developing a plan to provide services: who, what, how and when

Delivering community service

Measuring impact and success of service programmes

Outputs Uplifted community


B. Core process: service delivery Sub-process: education

Inputs Determining target audience

Activities Assess current needs and plan courses

Deliver services and determine alternative modes of delivery, such as lectures, video, seminars,self-paced instruction

Counsel students

Evaluate and grade students

Graduate and place students

Assess teaching effectiveness and programmes

Participate in other campus activities with students

Evaluate faculties

Outputs Educated students

C. Core process: service delivery Sub-process: learner support

Inputs Student requests for assistance

Lecturers identify students with problems indicated by poor performance

On campus advertisements

Bursaries: Application for bursary

Student representative council involvement

Government programmes

Activities Counselling of students with additional needs

Students make an appointment at the student support help desk

Students with physiological needs are referred to a qualified psychologist

Career guidance and placement

Student development

Writing curriculum vitae’s in a professional manner

Student activities such as sport is organised

Bursaries:

• Bursary committee selects students

• Criteria list for elimination

• Awarding of bursaries

HIV counselling;

Pregnancy counselling

Outputs Unburdened students

Placed students

Tracking of students after they have left the College

Bursaries:

• Receipt of bursary from the finance department and or donors.

• Monitoring of students for progress



Provide academic programmes that meet institutional and Lecturer-to-student ratio

accrediting agency standards Student FTE by course

Providing quality and cost effective programmes Contribution by programme

Providing qualified / experienced lecturers and staff Repeat rate

Maintain student satisfaction Results of participant/lecturer satisfaction surveys

Meet educational needs of employers and society by providing Total cost of public awareness programmes versus impact

students with employable skills or to further their education Attendance levels at seminars / enrolment rates

Maintain acceptable class sizes Volume of requests for information (published or otherwise)

Retain quality faculties Graduates employed and employer satisfaction with graduates

Use technology in services hired

Provide acceptable, well maintained facilities Number of individuals and units (meals, beds, etc.) served

Developing community participation in programmes and Cost per unit of services (direct and indirect)

services

Providing timely and efficient services

Providing effective outreach and referral programmes

Classes of Transactions The following classes of transactions may be generated by this process:

Routine Transactions: Syllabi

Non-Routine Transactions:

Receipt of significant gifts

Split interest agreements (may be routine in some organizations)

Gifts in kind (may be routine in some organizations)

Conditional promises to give

Restricted gifts (may be routine in some organizations)

Accounting Estimates:

Actuarial assumptions

Present values of receivable and liabilities

Allowance for doubtful gifts receivable

In kind contributions

Fair value computations of donated assets

Risks that could threaten a) Employers needs for skills of students change

objectives b) Students do not meet criteria to enter graduate schools

c) Services do not meet needs of students (low quality, high prices)

d) Dissatisfied students leave school

e) Change in accreditation criteria

f) Lack of sufficient faculty expertise

g) Ineffective career placement office

h) Class size too large for faculty to be effective

i) Programmes or services not properly targeted at those with the highest need

j) Services not delivered in the most timely and efficient manner

k) Ineffective referral, outreach, and marketing of services

l) Poor access to services

m) Inadequate facilities or poor quality treatment offered.

n) Students do not pay their class fees.

Classes of Transactions None


Co

re Bu

siness: Ed

ucatio

nC

ore B

usin

ess Pro

cess: Cu

rriculu

m M

anag

emen

t

Inputs A

ctivities Outputs

Market

Surveys

Departm

entof E

ducationP

rogramm

es

Identify Market

Need

Develop

Program

mes

Train E

xistingS

taff

Set C

urricula

Appoint C

SE

ducators

New

andM

odifiedC

urricula

Market

Related

Curricula

Curriculum

managem

ent databse, programm

es database


3.6.3 Core process: curriculum management

Process Description This process identifies the processes that are required for curriculum development andmanagement. It ensures that curriculum is relevant and will add value to students.

Process Objectives 1 Revised on a continual basis in order to be relevant to the market

2 Assist in reducing the unemployment rate by providing students with a qualification of thehighest standard.


Core process: curriculum management

Inputs Market surveys

Department of Education set programmes

Activities Develop new programmes

Review existing programmes

Appoint new lecturers for new or existing programmes

Train lecturers for newly developed programmes

Outputs Revised curriculum

Market related curriculum


To provide the highest quality curricula this is relevant to the Employability of graduated students

industry.

Classes of Transactions None

Risks That Threaten a) Curricula are not relevant to the needs of the industry due to a lack of resources at the

Objectives DoE which results in ineffective revision.

b) Outdated curriculum is taught to students.


3.7 Resource processes


Core Processes

Delivery

Management



Management


Resource Processes

Enrolment Service

Curriculum

Human

Sponsorship Financial

Facilities



Inputs A

ctivities Outputs

Strategic Plan

Resource

Requests

Industry Statistics&

Market D

ata

Tax & R

egulatoryL

aws

Training R

equests

Personnel

Feedback

Legal R

esearch

Personnel

Policies

Payroll B

enefitA

dministration

Personnel F

iles

Tax &R

egulatoryF

illings

Perform

anceR

eviews

Staffing &

Cost

Data

Redeployed

Staff

Information S

ystems – P

ersonnel Database, P

ayroll & B

enefit System

s, Tax & R

egulatory System

s, General

Ledger, A

ccounts Payable/Disbursem

ent System

Identify Staffing

Needs

Hire / D

ismiss/

Retirem

ent/R

esignationP

ersonnel /F

aculty

Provide Job T

raining&

Continuing

Education

Provide P

erformance

Review

s &C

ounselling

Establish /

Maintain C

omp

& B

enefitsP

olicies

Handle

Grievances andC

omplaints

Assess M

arketA

vailability

Process P

ayroll andB

enefits

Monitor / P

rocessR

egulatoryR

equirements /

Fillings

Assess

Redeploym

entN

umbers


3.6.1 Resource process: human resource management

The human resource management process consists of the following sub-processes:

A. RecruitmentB. Disciplinary / dismissal / retirement / resignation (Retrenchment is not included as lecturers can be redeployed)C. Performance evaluationD. Staff developmentE. Grievance procedures and complaints

Process Description This process identifies human resource requirements, analyses market of available resources,and institutes programmes for compensation, fringe benefits, recruitment, induction, training,and advancement. This process also integrates human resource needs with other institutionalplanning.

Process Objectives 1 Hire staff with high visibility and appropriate qualifications to head new and existingprogrammes.

2 Maintain a minimum of X number contact hours

3 Maintain prescribed contact hours before additional remuneration can be claimed

4 Train and develop all staff

5 Handle all grievances and complaints in an organised and fair manner.

6 Fair and just dismissal procedures should be adhered to according to DoE.

7 Comply with regulatory/tax filing requirements


A. Resource process: human resource managementSub-process: recruitment

Inputs Appointment of CS-Educator posts by provincial government: (majority of appointments)

Vacancies in public institutions are advertised in the public media (provincially and nationally)in an official list of vacancies or circular.

A designated official from DoE will contact the CEO/Principal of the College to determinewhether the College will advertise in the Government Gazette for any available posts, which the College may wish to fill.

Available posts based on FTE are determined on an annual basis by DoE.

Decision taken at management meeting attended by the CEO/Principal and campus heads toadvertise.

The CEO/Principal communicates the decision to DoE.

Appointment of CS-Educator posts by College council:

The staffing requirement is communicated to the CEO/Principal by the relevant campus head.

The College Council approves the position of appointment.

The position is advertised in the provincial and national paper based on post level or seniorityof the position.

Activities Appointment of CS-Educator posts by provincial government: (majority of appointments)

Identifying current capacity utilisation and staffing needs

Application forms are submitted to the DoE – Provincial Shared Services Centre unit (SSC) thatacknowledges the receipt of applications and eliminates applications where the minimumrequirements have not been met. The SSC compiles a list of applications received.

Applications as well as the list mentioned above are sent to the College. (In the event ofredeployment an excess list is also sent)

Applicants can send application forms to the College directly.

A Short-Listing Panel (regulated by Circular 5 of 1999) will reduce or short-list the mostsuitable applications to a maximum of 5 per post.

Qualified staff redeployed from other Colleges will not have to be limited to 5 per post and willhave preference over other candidates assuming that they have filled out an application form.

The union should be notified 7 working days before interviewing commences. The unionrepresentatives shall be observers to the process.

The Interview Committee or Panel interviews the short-listed candidates.


Candidates are ranked in order of preference.

The CEO/Principal informs DoE of the College’s recommendation.

DoE makes the final decision. The College is to notify all unsuccessful candidates in writingwithin 8 weeks.

Appointment of CS-Educator posts by College Council:

Identifying current capacity utilisation and staffing needs

No formal application form necessary.

The College requires CV’s and proof of qualifications from all candidates.

A Short-Listing Panel (guided but not regulated by Circular 5 of 1999) will reduce or short-listthe most suitable applications, no limitation per post.

Union representation is not a requirement however it is recommended practise to have oncampus union representation (acting as an observer only).

The Interview Committee or Panel interviews the short-listed candidates.

In the interview it will be stated when the candidates will be contacted telephonically.

Candidates are ranked in order of preference and the highest-ranking candidate is selected.

Successful and unsuccessful candidates are notified.

Outputs Appointment of CS-Educator posts by provincial government:

DoE issues an employment contract to the successful candidate.

Candidate signs the “Annexure A” of employment contract as acceptance of appointment.

DoE receive signed “Annexure A” of employment contract.

Appointment of CS-Educator posts by College Council:

The College issues an employment contract to the successful candidate together with a jobdescription.

The candidate signs the employment contract.

The College receives the signed contract.

B. Resource process: human resource managementSub-process: disciplinary / dismissals / retirements / resignations

Input Disciplinary / Dismissals:

Employer institutes disciplinary proceedings against the lecturer.

Retirements:

All lecturers must retire by the age of 65, however retirement can also take place at the age of55. If an lecturer retires before 60, a percentage of his package will be raised as a penalty.

Resignation:

A lecturer or employee may resign by giving 90 days written notice or shorter (if agreed) to thecampus head or DoE.

Activities Disciplinary / Dismissals:

Disciplinary proceedings in accordance with the disciplinary code (Schedule 2 of Employmentof Educators Act 76 of 1998) and Labour Relations Act, 1995.

Written notice of the allegations and rights of the lecturer are to be given.

Disciplinary hearing will be held.

Steps after the disciplinary hearing

Appeals

Retirements:

The lecturer will notify DoE or the College Council of his or her retirement.

Resignation:

The College will write a covering letter to accompany the employees’ resignation letter to theDoE (if employed by DoE).

If the College Council employs the employee, the resignation letter will only be submitted tothe campus head and principal.

Outputs Disciplinary / Dismissals:

The lecturer is counselled or

Verbal warning or written warning or final written warning

Fine not exceeding one month’s salary


Suspension without pay for a period not exceeding three month or

Demotion or

A combination of any of the above or

Dismissal

Retirements:

The lecturer or employee is removed from employment.

All outstanding amounts are paid to the lecturer or employee.

Resignation:

The lecturer or employee is removed from employment.

All outstanding amounts are paid to the lecturer or employee.

C. Resource process: human resource managementSub-process: performance evaluation

Inputs Defined and communicated performance evaluation procedures

Activities Implementing and administering individual, department and organisation goal setting

Goals are agreed upon

Regular performance evaluations and feedback sessions between employee and supervisor

Salary reviews

Providing performance reviews and counselling

Class visits (for CS educators only)

Creating and reviewing job descriptions, responsibility grades and salary ranges

Developing productivity goals and performance indicators

Outputs Reviewing and adjusting salaries

Training or development of staff

Staff advancement

Recognition for good performance e.g. letters

D. Resource process: human resource managementSub-process: staff development

Inputs Centralised function at the College

A task team for staff development will identify a need per campus through surveys, class visits,requests from staff or academic board.

Budget allocations

National pass rate

Training attendance register

Activities Providing job training and continuing education

Team teaching

Invite all campus sites to attend workshops (more cost effective)

Outputs Maximum of 80 hours of training outside College hours can be expected per year

Developed and skilled lecturers

Claim for Council employees training back from the SDF

Claim from EDTP SETA for accredited staff training (discretionary grants)


E. Resource process: human resource managementSub-process: grievance procedures and complaints

Inputs Written complaints

Activities Review and assessment of complaints

Prioritisation of complaints

Discussions if necessary with the aggrieved party

Outputs Handling employee complaints

Resolution of complaint

General activities• Establishing and maintaining compensation and benefits policies• Processing payroll, taxes and benefits• Monitoring regulatory requirements and processing filings• Implementing and administering benefit plans based on collective bargaining agreements (e.g. bursaries for staff

children)• Participating in contract negotiations

Resource process: human resource management


Recruit and hire qualified faculty Turnover & length of employment

Implement effective training programmes for administrative Service unit revenue per employee (e.g. credit hours produced

staff per FTE faculty or departmental revenue divided by

Maintain competitive cost-beneficial compensation packages departmental payroll)

Retain employees Trend analysis of fringe benefits

Optimise utilisation and productivity of employees/faculty Payroll costs by job category or department (programme) per

Sustain faculty/employee commitment to College total payroll costs

Recruit and hire qualified human resource employees Student to faculty ratio

Comparison of compensation packages to the industry

Employee satisfaction surveys (compensation & benefitprogrammes, quality of service, turnaround time)



- Routine transactions:

- Incurring and allocating salary and fringe benefit costs

- Non-routine transactions:

- Calculation of retirement and other post employment benefits

- Executive compensation, benefits and other costs

- Any self insurance liabilities

- Accounting estimates:

- Accrued salary, fringe benefits and vacation costs


Risks That Threaten Objectives An unproductive tentative faculty

Undesired faculty turnover

Work stoppages or unreasonable salary demands due to unstable labour relations

Penalties or loss of tax exempt status due to non-compliance with the Receiver of Revenue,state and local taxing authorities etc.

Non-competitive compensation packages

Ineffective training programmes and/or training programmes that are not cost beneficial


Reso

urce Process: Sp

on

sorsh

ip an

d Fun

draisin

g M

anag

emen

t

Inputs A

ctivities Outputs

Strategic Plan

Donor R

esearch

Alliance R

esearch

Alum

ni Research

Market

Information

Com

petitorInform

ation

Tax Regulations

Alliance

Agreem

ent

Fundraising

Products

Donor

Data/C

ontract

Operating

Information

Pledge N

otices &B

illings

Cash R

eceived /C

ontributions

Reports to

Donors

Fundraising

Events

Information S

ystems – P

rospect Database D

evelopment O

ffice System

, Gift A

ccounting Records, G

eneralL

edger

Establish N

eedsand T

argets

Bill &

Collect

Donor Funds

Send T

hank You

Notes T

o Givers

Solicit Prospects &

Obtain

Com

mitm

ents

Monitor /

Com

municate

With A

ctualD

onors / Alliances

Identify Prospects

Conduct

Donor/A

lumni /

Alliance A

ctivities


3.7.2 Resource process: sponsorship and fundraising

The sponsorship and fundraising management process consists of the following sub-processes:

A. Donor fundingB. AlliancesC. Sponsorships

Process Description This process covers obtaining financial resources from donors to be used for operations, long-term investment or construction/acquisition of facilities. This process coordinates programmeneeds and objectives of the organisation, conducts market research to identify potentialdonors, develop donor programmes (alumni activities, fundraising Programmes) and donorproducts (types of contributions such as deferred giving, gifts of property). The potentialdonors are contacted and solicited. Communication with the potential donor continuesthrough receipt of a pledge to make a contribution, executing any necessary documents,sending pledge acknowledgments, billing notices and cash receipt notices. This process alsomonitors and communicates with existing and potential donors between fundraising efforts.Sponsorship also comprises of relationships with beneficial alliances and to award learnershipagreements to promising students.

Process Objectives 1 Obtaining financial resources from donors

2 Funding new programmes

3 Developing donor programmes and products

4 Monitoring and communicating with potential donors

5 Reduce the time period from the pledge to the receipt of the donation

6 Decrease the amount of money spent to raise funds

7 Monitoring tax and accounting laws and regulations and donor imposed restrictions

8 Communication with prospective alliances


A. Resource process: sponsorship and fundraisingSub-process: donor funding

Inputs Potential donor

Activities Establishing of needs through internal market research

Establishing targets through external market research

Development of donor programmes and products

Solicit potential donors and obtain commitments from them

Cultivating relationships with potential donors

Monitoring and communicating with actual donors

Setting up a donor contract

Billing and collecting donor funds

Sending thank you follow-up notes to donors

Holding special fundraising events

Outputs Donor contract

Receiving donors’ contribution

Pledge acknowledgement letter


B. Resource process: sponsorship and fundraisingSub-process: alliances

Inputs Potential alliances

Activities Establishing of needs through internal market research

Establishing targets through external market research

Solicit beneficial alliances and obtain commitments from them

Monitor relations and communicate with actual alliances

Setting up an alliance agreement

Implementation of alliance agreements

Outputs Alliance agreements

C. Resource process: sponsorship and fundraisingSub-process: sponsorships

Inputs Promising students

Activities Identify targets (companies or individuals) to provide promising students with learnerships

Identify students that qualifies for a learnership

Award students with a learnership agreement

Implementation of learnership agreement

Monitor relations with targets

Monitor progress of students

Outputs Learnership agreement

Receive student fees from companies and individuals

Resource process: sponsorship and fundraising


Developing alternative sources of revenue/support Fundraising expenses in relation to fundraising results

Strengthening existing sources of revenue /support Number of days between pledge and cash receipt

Maintaining donor confidentiality Average time spent by fundraising employee per donor

Retaining personnel knowledgeable in fundraising techniques Gross margin per fundraising programme

Developing effective tracking system and database of potential Average gift received

donors, alliances and sponsorships Pledge revenue per employee and board member

Collecting pledges made Number of contacts made by sources

Meeting donor/members needs and requests Number of new donors

Developing and strengthening donor acceptance of Number of pledges received per contacts made

programmes involving Council members in fundraising Number of members participating in fundraising efforts

Maintaining good reputation and maximising positive media Number of contacts made per fundraising employee

and community recognition Percent of fundraising, alliance and sponsorship expenses in

Maximising efficiency of fundraising efforts in the long-term relation to total expenses




Routine transactions: Receiving monetary contributions; Obtaining pledges; Billing andcollecting pledges

Non-Routine transactions:

Receipt of significant gifts

Split interest agreements (may be routine in some organizations)

Gifts in kind (may be routine in some organizations)

Conditional promises to give

Restricted gifts (may be routine in some organizations)

Accounting estimates:

Actuarial assumptions

Present values of receivable and liabilities

Allowance for doubtful gifts receivable

In kind contributions

Fair value computations of donated assets


Risks That Threaten Objectives a) Changes in reporting and tax laws

b) Competition for donors from other organisations

c) Ineffective personnel or fundraising campaigns

d) Poor economy

e) Uncollected pledges

f) Lack of public appeal of the programme

g) Unsatisfied donors and alliances

h) Lack of council participation

i) Negative publicity

j) Inaccurate market research to identify appropriate programmes

k) Poor donor, alliance and sponsorship follow-up and communication

l) Lack of development of a strategic fundraising plan

m) Lack of monitoring changes in tax and accounting regulations

n) Lack of goal setting for development personnel.


Reso

urce P

rocess: In

form

ation

Man

agem

ent

Inputs A

ctivities Outputs

Requests for

Materials and

Supplies

Operating

Budgets

Grant &

Contract

Budgets

Federal

Regulations

Vendors

Materials

Equipm

ent

SuppliesE

xpenses

Operating

Information

Information S

ystems – A

ccounts Payable / Purchasing, Equipm

ent Managem

ent System, G

eneral Ledger

Maintain Stores

Assess N

eedsReceive and

Deliver Item

s toC

olleges

Pay Vendors

Assess A

vailableR

esourcesA

cquire Items


3.7.3 Resource process: materials management

The material management function consists of the following sub-processes:

A. ConsumablesB. Workshop capital and teaching aids

Process Description Materials management is the process for controlling the acquisition of goods and servicesthrough the requesting, ordering, competitively pricing, evaluating alternatives, encumberingfunds, and receiving, and paying for items needed for “other than personal services”. Thisprocess is best described as procurement.

Process Objectives 1 Obtaining goods and services needed on a timely basis

2 Obtaining the best quality items for the least cost

3 Complying with laws and regulations

4 Ensuring only needed items are obtained

5 Ensuring funding is available (budgeting)

6 Ensuring items are paid for only upon receipt of the goods or services

7 Reduce the number of days between order and receipt

8 Maintain a centralized purchasing and receiving department


A. Resource process: materials managementSub-process: consumables

Inputs Approved budgets for operational expenditures

List of goods and services required for the year

List of approved suppliers (negotiated discounts available)

Existing agreements / contracts

Official requisition and order forms for once off and ad hoc purchases

Request for goods over RX limit

Quotations

Activities Evaluating the quality of goods and services available

Obtaining requests for goods and services needed

Pricing out and ordering items based on existing agreements

Approval of quantity and amount ordered.

Obtaining competitive quotes and bids

Contracts over RX should be approved by Head Office, by a designated person

Ensuring the quality, quantity and amount of goods and services received

Ensuring funding is available (budgeting)

Ensuring goods and services are received prior to payment

Recording of purchased transaction

Outputs Variance reports

High quality of goods and services received

Invoice received from supplier for goods and services delivered over RX, should be submitted to Head Office

Monthly statements from suppliers

Payment to suppliers by Head Office or campus sites

Distribution of goods to campus sites

Storage and safeguarding


B. Resource process: materials managementSub-process: workshop and training materials

Inputs Approved budgets for capital and operational expenditures

List of goods and services required for the year

List of approved suppliers (negotiated discounts available)

Existing agreements / contracts

Official requisition and order forms for annual purchases

Request for goods over RX limit

Activities Evaluating the quality of goods and services available

Obtaining requests for goods and services needed

Pricing out and ordering items based on existing agreements

Approval of quantity and amount ordered.

Obtaining competitive quotes and bids

Contracts over RX should be approved by Head Office, by a designated person

Ensuring the quality, quantity and amount of goods and services received

Ensuring funding is available (budgeting)

Ensuring goods and services are received prior to payment

Recording of purchased transaction

Outputs Variance reports

High quality of goods and services received

Invoice received from supplier for goods and services delivered over RX, should be submitted to Head Office

Monthly statements from suppliers

Payment to suppliers by Head Office

Distribution of goods to campus sites

Storage and safeguarding

Resource process: materials management


Utilising adequate methods for evaluating quality Timely receipt of quality goods and services

Maintaining detail procedures for obtaining quotes and bids Acquisition of goods and services at the best price consideringin accordance with laws and regulations quality and cost

Properly training staff Compliance with laws and regulations

Maintaining adequate internal controls Making purchases within budget

Utilising “procurement credit cards” Comparison of goods on hand versus need

Improve efficiency of procurement Cost to operate/maintain goods versus outsourcing/

Minimise departments executing their own orders if a central just-in-time delivery

purchasing function is available Number and amount of goods returned

Have alarms and locked, restricted areas for storage Percentage of orders where discounts were taken or not taken

Cost by supplier to obtain price or volume discount



Routine Transactions:- Creating payables for items received and relieving encumbrances- Disbursing funds to pay for items received and relieving payables

Non-Routine Transactions:- Accruing for goods and services received, not paid for and payment not yet due - Accruing for unmatched receiving reports (if applicable)- Negotiation of large suppliers contracts

Accounting Estimates:

Depreciation of goods

Valuation of inventory



Risks That Threaten Objectives a) Unauthorized, excessive and/or unneeded purchases

b) Poor quality goods and services received and paid for

c) Purchases made by individuals for personal benefit

d) Purchases made under other than favourable terms

e) Purchases made not in compliance with laws/regulations

f) Needs of the not-for-profit and members not met

g) Duplicate payment for goods and services

h) Purchases being paid for but items not received

i) Inadequate competition for bids

j) Too many emergency requisitions

k) Purchases in excess of budget without proper approval

l) Lack of review of open purchase orders

m) Decentralised campus sites or departments

n) Theft of goods


Reso

urce P

rocess: Facilities M

anag

emen

t Inputs

Activities O

utputs

List of

Unoccupied

Facilities

Strategic Plan

Regulations

Labour Force

Construction

Plans

Maintenance and

Operations

Programm

es

Suppliers

Maintenace and

Repair B

udgets

Fixed Assets O

nH

and andPurchased

Leased / O

wned

Buildings

Operating

Information

Risk M

anagement

Policies

Disaster

Recovery Plan

Fixed Asset

Register

Information S

ystems – Plan A

ccounting System, Space M

anagement, System

, General L

edger

Prepare C

ash Flow

Monitor Spending

Relative to B

udget

Determ

ineS

trategies for IdleC

ashM

onitorR

estrictions /F

inancialC

ovenantsS

chedule &M

onitor Cash

Needs

Allocate &

Disburse Funds

Prepare C

ash Flow

Prepare C

ash Flow


3.6.4 Resource process: facilities management

Facilities management consists of the following sub-processes:

A. Maintenance and operationsB. Fixed asset registerC. Unoccupied facilitiesD. Additional facilities

Process Description This process assesses the need for facilities, determines how best to acquire them, overseestheir design and construction, operates, and maintains them. In addition, this processadministers space assignments, utilisation, and the risk management programme over physicalplant. This process also integrates facilities needs, planning and acquisition with otherinstitutional planning.

Process Objectives 1 Facilities are fully utilised

2 Alternative uses are identified for unoccupied facilities

3 Adequate recording and control is maintained over fixed assets.

4 All facilities are properly maintained.

5 Reduce number of health and safety violations by X from prior year

6 Reduce costs to operate multiple campuses by X%

7 Reduce excess capacity by X%


A. Resource process: facilities managementSub-process: maintenance and operations

Inputs Maintenance and operations:

Approved budgets

Approved facility maintenance plans or programmes (preventative maintenance)

Specialised maintenance is outsourced

Designated maintenance crew

Fixed assets:

Fixed asset register

Scanner

Unoccupied facilities:

List of unoccupied facilities

Additional facilities:

Existing facility capacity is exceeded

Approved budgets (capital expenditure)

Activities Maintenance and operations:

Regular assessment of facilities

Lecturers responsible for lecture rooms

Incidences written up in maintenance book at reception

Booklet reviewed on daily basis by maintenance controller

Training of staff to perform basic repair and maintenance functions

Maintenance and repair over RX limit requires authorisation from the vice president of facilitiesand infrastructure

Cleaning of facilities either in-house or outsourced

Fixed assets:

Recording of all fixed assets acquired

Layout of fixed asset register

Safeguarding and existence of fixed assets


Assess and select the most suitable uses for unoccupied facilities (rent or sale etc.)

Approval for option selected by principal

Advertising for facilities to be sold.



Identification and communication of requirement to campus heads

Review of current facilities

Authorisation to acquire or build new facilities or improve existing facilities

Tendering of contractors

Payment of contractors

Budgeting

The management of the different campuses concomitant with the majority approval of all themajor stakeholders may annually define capital expenditure in terms of:

Long term planning regarding the upgrading of existing facilities

Long term planning regarding additions to existing facilities

Outputs Maintenance and operations:

Decentralised repairs and maintenance to infrastructure

Trained staff

Well-maintained infrastructure and facilities.

Fixed assets:

Reconciliation of fixed asset register and ledger


Facilities used optimally

Revenue derived from unoccupied facilities


Additional facilities acquired or built to meet capacity demand

Resource process: facilities management


Implement effective programmes in deferred maintenance Change in occupancy costs by building, campus, square metre

Plan space utilisation Costs to construct per square metre

Control design and construction activities Backlog of deferred maintenance costs

Maintain safe workplace Cost of maintaining/operating facilities internally versus

Maintain and operate facilities effectively and efficiently outsourcing

Eliminate duplicative, costly services Total expenditures by building for plant maintenance

Maintenance costs as a % of total operating costs or total costs

Use of individual classrooms per hour, per day

Square metre utilised divided by total available square metre

Square metre by function (research, administration, classroom)

Resource process: facilities management


Routine

- Acquisition of plant funds assets

- Plant operations and maintenance expenses (rent, utilities and other operating expenses)

Non-routine transactions

- Execution of leases, sales of buildings and acquisition of buildings

Accounting estimates

- Depreciation of fixed assets

- Estimates of accrued costs for risk management and environmental claims


Resource process: facilities management (continued)

Risks That Threaten Objectives Potential students or faculties choose another College due to facilities condition or lack of space

Loss of property and other monetary exposures due to inadequate insurance coverage orcontingency plans

Disallowance of costs due to non-compliance with grant regulations

Have facilities that do not fit current/emerging educational needs

Lower enrolment affecting ability to use space optimally

Costs to construct too high

Lack of funding to maintain plant

Undetected theft of fixed assets


Reso

urce Process: Fin

ancial M

anag

emen

t Inputs

Activities O

utputs

Strategic Plan

Functional &

Process B

udgets

Financial

Resources

Market R

esearchD

ata

Operating B

udget

Cash F

lowR

eports

Disbursem

entR

equests

Income S

tatement

Balance S

heet

Information S

ystems – C

ash Managem

ent System

, Investment S

ystem, D

isbursement / P

ayable System

s /C

oltech / DB

2000 / Pastel

Prepare C

ash Flow

and Budgets

Determ

ineF

inancing Vehicles

or Other FixedA

ssets

Receive F

unds(G

ifts, Tuition,

Long-term

Investments)

Monitor Spending

Relative to B

udget

Determ

ineS

trategies for IdleC

ashM

onitorR

estrictions /F

inancialC

ovenantsS

chedule &M

onitor Cash

Needs

Allocate &

Disburse Funds


3.7.5 Resource process: financial management

Process Description This process provides the College’s monetary needs, oversees preparation of the College’soperating budgets, manages short-term cash investments to obtain the highest yields, monitors compliance with the Receiver of Revenue regulations concerning tax-exempt status,monitors compliance with financing covenants and financing structure of the College andprepares and monitors operating and capital budgets.

Process Objectives Reduce operating budgets by X% from prior years levels

Manage short term investments to yield an average return of X% or higher

Refinance existing debt so that average rate is X%

Minimize credit line borrowings to RX per month and Y days outstanding

Maintain tax exempt status


Resource process: financial management

Inputs Creditors

Debtors

Petty cash

Cash payments

Salary and payroll expenses

Activities All financial transactions should be recorded when they occur

All financial transactions are recorded according to the Colleges set policies and methodologies.

Accounting policies and procedures manual

Budgets

Head Office must provide a budget of expected expenses for the following year.

Each campus will contribute to the funds for the expenses of the Head Office according to theFTE ratio.

A provisional class fees budget will be prepared by the Financial Committee to be tabled at theCouncil meeting not later than September.

After acceptance of the Class Fees Budget, by the College Council, the provisional budget forthe following financial year from 1 January to 31 December will be tabled at the NovemberCouncil meeting.

The head of campus monitors the income and expenditure in co-operation with the respectivefinancial officials. Financial reports must be submitted to Head Office on a monthly basis.

Cash flow and bank:

Each campus shall operate with a separate deposit account and expense account.

Head Office will have a single cheque account in which the deposits of the different campuseswill weekly be deposited by the banking institution.

Expenditure will be regulated in accordance with the mandated delegated powers

Balances on the deposit account will be regulated on a weekly basis by the banking institution.

Each campus must quarterly submit a cash flow projection for three months at the end ofJanuary, April, July and October to Head Office to be transferred at the beginning of thefollowing month.

Investments:

Short-term investments are made at the best possible current interest rate.

Campuses must invest the excess funds received from the Head Office at the best possible rate.

A report on the investments of the campus will be included when financial reports aresubmitted to the Financial Committee, who will fully apprise the College Council thereof.

Interest received by the Head Office will be for the benefit of the relevant campus, according tothe money received from the individual campuses.

Contract management: Operating leases e.g. photo copiers; Finance lease e.g. trainingcomputers

Outputs Annual financial statements

Internal reports / monthly managements accounts

Budgets and forecasts


Resource process: financial management (continued)


Maintain good relationships with lenders and other sources Cash needs for the next month, quarter

of funds Budget analysis/negative budget variances

Invest cash to maximize return and minimize idle cash Interest expense as percentage of total expense

Report negative budget variances promptly for action Amount of cash on hand versus short term borrowing

Manage/reduce debt carrying costs Yields on short term investments

Expendable fund balance to plant debt

Plant equity to plant debt

Expendable/non-expendable fund balances to totalexpenditures and mandatory transfers

Rates obtained on borrowings



Routine transactions:

- Cash receipts and disbursements

- Short term investments

- Debt service payments

- Interest income/expense and related accruals

Non-routine transactions:

- New or refinancing of debt

- Interfund borrowings

Accounting estimates:

- Valuations of investments


Risks That Threaten Objectives Decrease in short-term rates

Lack of lenders in market

Increase in financing costs and oversight by lending agencies

Failure of customers to pay bills promptly

Loss of tax-exempt status

Fines, penalties and taxes for unrelated business income

Lack of oversight of budgeted to actual amounts


Reso

urce Process: In

form

ation

Man

agem

ent

Inputs A

ctivities Output

Information

TechnologyS

trategy

Trade &

Research

Materials

Departm

ental &O

ther Requests /

Feedback

Regulatory

Requirem

ents

Records P

roduced/ A

ccumulated

IT R

equirements

Plan

Required U

serS

ystems and

Reports

Required U

serT

raining

IT System

sP

rocedures

Records

Managed/S

tored

Information S

ystems – A

ll Informational D

atabases, General L

edger & S

ubsystems, Tax &

Regulatory

Determ

ineInform

ationT

echnology /R

ecords Retention

Requirem

ents

Report

Information /

Manage R

ecords

Develop IT

andR

etentionP

rocedures

Acquire N

ecessaryTechnology /Infrastructure

Assess A

vailableInform

ation /S

ystems

Develop System

sand M

aintainInfrastructure

Collect, P

rocess,S

tore andD

istributeInform

ation


3.7.6 Resource process: information managementThe information management function consists of the following sub-processes:

A. Needs assessment and system planningB. System development and implementationC. Operation, control and maintenance of system

Process Description This process plans for, implements, maintains and operates systems for collecting, processingand distributing information. This process covers the technology needs of the core businessand resource management processes. This sub process includes both administrative andacademic technology and will become more important to Colleges in the next several years.

Process Objectives 1 Increase requested reports delivered within deadlines by X% from prior year

2 Decrease in days to complete requested system changes by Y days

3 Increase on-line inquiry response time by X%

4 Decrease operating costs by RX

5 Transaction processing costs reduced by RX

6 Increase number of students using computers by X%

7 Increase usage of technology by faculty by X%

8 Increase reliability of data

9 Decrease inappropriate access to information

Systems Business and administrative system.

A. Resource process: information managementSub-process: needs assessment and systems planning

Inputs The information officer, together with an IT steering committee, should develop a informationsystem development plan, which is in accordance to the overall strategic business plan of theCollege.

A cost- benefit study should be undertaken, taking into account the available resources(personnel, hardware, software, etc)

Inputs regarding users needs should be obtained

Activities Identify users of information and their information requirements

Assessment of existing information systems

Performance of feasibility study, taking into account existing information systems, new systemsto be developed/purchased, etc.

Development of system specifications

Development of strategy regarding information systems

Development of project plan

Outputs Feasibility study, including the cost-benefit study ,

System specifications, Information systems strategy, Project plan

B. Resource process: information managementSub-process: System development and implementation

Inputs Feasibility study

Information systems strategy

Project plan, detailing system requirements and timeline

Quotations for acquisition of new hardware and software

Outputs Newly developed/ acquired technology

System documentation

Training of personnel

Backups of new system and programme files


C. Resource process: information managementSub-process: operation, control and maintenance of system

Inputs System documentation and procedure manuals

Service contracts with third party servicing companies

Activities Operation:

Collecting, processing, storing, and distributing information

Reporting information

Training and supporting system users

Negotiating and monitoring third-party servicing relationships

Maintaining data integrity

Regular backups of data files

Control:

Safeguarding of information system, e.g. use of computer locks, etc

Safeguarding of backups and other system documentation

Access control to systems and data

Controls and procedures relating to changes to system

Maintenance:

Development of a business continuance plan, detailing procedures to follow in case of a systemfailure

Documentation of recovery procedures

Outputs Updated system documentation and procedure manuals

Training of staff

Backups of system and data files

Reports and information as needed by system users

Resource process: information management


Develop systems that provide accurate, timely and reliable Cycle time from time transaction occurs to time information

information is processed and reported

Involve users in the technology acquisition process Response time for on-line requests

Develop or redesign business processes simultaneously so Information management costs as a % of total costs

that systems optimally support processes and processes make Information management employees to total employees

optimum use of systems Return on investment for specific IT projects

Make cost effective purchases of technology Cost of IT operations versus outsourced services

Maintain systems at lowest possible cost Internal user information survey

Provide current IT systems for faculty and student use Number of classes using technology resources

(Internet, video conferencing, etc.) Percentage of PC’s that are modern

Develop policies and procedures regarding passwords

Resource process: information management


Routine Transactions:

- Operating expenses for maintenance of systems

- Plant funds assets and depreciation for equipment


Risks That Threaten Objectives Unproductive personnel due to inadequate training of use of technology

IT not available at the proper price

Natural/man-made disaster/catastrophes

Erroneous/inaccurate or untimely decisions made based on lack of system reliability, integrityresponsiveness and usefulness of information

Needs of users not met (administrators, faculty and students) due to ineffective costlytechnology or lack of knowledge of needs of the users

Student/faculty comfort with and ability to use new technology

Theft of information/data


4 Policies and procedures manualMapped out below is the perceived best practise for each core and resource process. It is important to highlight that ‘onesize does not fit all’ and that the Colleges should work towards these policies and procedures. Each process has also beenbroken down further into sub-processes.

4.1 Core processes

4.1.1 Enrolment

Core Process: Sub-process:

Enrolment Planning

Purpose: Planning is done for the year ahead. Available resources such as facilities and staff are taken intoaccount to determine the amount of learners that can be accommodated, programmes to bepresented and preliminary timetables. Marketing of programmes to be presented.

Responsibility: HoD’s and senior lecturers

Timeline: Prior to enrolment

Authorisation & Campus manager

review

Documentation • Preliminary timetables

• Documentation for marketing purposes e.g. brochures

Centralised/ Decentralised

Decentralised?

Procedures Action steps

Planning meeting • The HoD’s and senior lecturers of departments must have meetings prior to the commencement ofthe new academic year, to determine available resources, in order to be able to determine theamount of students that can be accommodated.

• The DoE uses prior year FTE numbers to calculate the staffing needs of the campus, using a setformula. Additional staff can be appointed, but will have to be paid from College funds.

• If the DoE numbers are not available at the planning stage, the campus manager should anticipatethe staffing needs for planning purposes.

• Available facilities such as computers, classrooms, etc. should be taken into account, whendetermining the amount of students that could be accommodated during the following year. Thepossibility of repeating classes in the afternoon and/or in the evening, in order to accommodatemore students, should also be taken into account.

• Duties of lecturers should be distributed on a regular basis (at least three times a year) to ensure thatall staff comply with guidelines as set by the DoE. The campus manager is responsible for theredistribution of duties to lecturers, after which it is sent to the academic board for review andauthorisation. This process is performed at least three times during the year.

• When determining the amount of students to be accommodated in a specific programme, attentionshould be given to the future market demand of postgraduate students i.e. employability. Wherenecessary, programmes should be adjusted in order to increase the possibility of future employment.

• Existing students who want to enrol for the successive semester/ trimester should be given firstchoice over new students wishing to enrol for the same programme.

• Duties to be performed during the forthcoming enrolment process must be allocated to the differentlecturers.

Preparation of • Before commencement of the enrolment period, senior lecturers will prepare preliminarytimetables timetables for each programme presented, based on the outcome of the planning. Preliminary

timetables will be prepared per department.

• In instances where facilities are shared, e.g. computers, HoD’s should communicate with each otherin order to ensure that time tables do not overlap.

• HoD’s will approve preliminary timetables.

Marketing of • Introduce programmes to prospective students by way of advertisements in local newspapers, open

programmes days, exhibitions, school visits, etc.

• Place advertisements in local newspapers before semesters/ trimesters starts, 2-3 weeks beforeenrolment. As a minimum, advertisements should indicate:

a. Programmes to be presented and

b. Enrolment dates and times.

• Advertisements will be prepared by the marketing manager and be approved by the campus


manager before submission is made to the newspaper.

• The SRC is to organise open days on an annual basis, where information on the campus and itsprogrammes can be presented and communicated to prospective students.

• The campus manager will do school visits. During these visits, information regarding the campus andits programmes should be communicated to grade 12 learners.

• Send letters to schools, together with brochures and enrolment forms. This process should beinitiated by marketing, after approval was obtained at a management meeting.

• Students from management studies should organise entrepreneur days under the guidance of theirlecturer.


Core process: Sub-process:

Enrolment Admission norms

Purpose: Prospective students need to adhere to pre-set admission norms before they can enrol. Admissionnorms are set by the DoE as well as Colleges themselves, depending on the nature of the programmespresented. Colleges and their programmes are marketed to potential students.

Responsibility: DoE as well as the academic board of the College

Timeline: Before enrolment

Authorisation & review College Council

Documentation Qualification standards

Centralised/ Centralised

Decentralised?


Set qualification • Set qualification standards for all intended programmes before enrolment commences.

standards • Minimum submission standards for DoE programmes are set by the DoE, and are circularised to eachcampus site. These standards are set out in the NATED 191 document.

• The academic board sets admission requirements. The admission standards are authorised by theCollege Council.

• The academic board sets the minimum admission standards for non-DoE programmes internally. TheCollege Council approves the admission standards.

• Standards for existing programmes should not change from year to year, but could be revisedannually.

Communication of • Minimum admission requirements for programmes are communicated to prospective students in

standards to brochures sent to the schools, etc. Marketing is responsible for this activity and it should be

prospective students authorised at the management meeting.

Review of prospective • Prospective students need to supply their original qualification documentation when enrolling for a

students’ qualifications programme.

• The lecturer responsible for the enrolment of the student should check the documentation supplied:

- Proof of identity, e.g. identification documents, passport

- Proof of qualification e.g. matriculation results, printout of results for courses passed in prior yearfor authenticity and accuracy thereof. Whenever in doubt, the institution that issued the reportshould be contacted to confirm the authenticity.

• The reviewer should check that the qualifications supplied by the student comply with the minimumadmission requirements for the desired programme.

• Two copies should be made of identification and qualification documentation and it should beattached to the completed enrolment form, to be kept for administration purposes.

• Existing students, wishing to enrol for a successive academic period, only need to supplydocumentation relating to the results obtained for the programmes completed.

• The HoD’s discuss results obtained with students on an individual basis, before commencement ofthe next enrolment period. Guidance will be provided regarding their future options.

• The campus makes a printout of results (history) available to students upon request.

• Where a student obtained his previous qualification from an institution not recognised by thecampus, the student will be requested to take an aptitude test to ascertain his/her level ofcompetency.

• Prospective students holding foreign qualifications can be tested by SAQA to determine whether theyare adequately qualified to comply with qualification standards for the courses they wish to enrol for.

• Admission standards do not apply for students when an organisation approaches a campus to dospecific training of staff members. These students are not to be included in FTE numbers.

• Exceptions (e.g. where programmes are developed to address specific training needs on request of anoutside organisation) need to be dealt with separately. The campus manager, together with therelevant HoD’s should assess all the details relating to the application to ensure that prospectivestudents will be able to complete the programme developed for them. Admission should beauthorised by the academic board.



Enrolment Registration

Purpose: Prospective students’ qualifications are reviewed, after which students fill out application forms anddeposit tuition fees in the College’s bank account. After proof of deposit is received, students areregistered onto the system and notified of registration in writing.

Responsibility: Lecturers and administration clerks

Timeline: During enrolment (4 times a year)

Authorisation & review • Lecturers

• Administration clerks

• Campus manager

Documentation • Enrolment forms

• Examination-only enrolment forms

• 24 hour placement forms

• Proof of qualification (copy)

• Prior year results

• Copy of Identity Document (ID)

• Receipts issued (where applicable)

• Copy of bank deposit slip (where applicable)

• Payment agreement form

• Student cards

• Class lists

• Examination enrolment report

• Progress reports

Centralised/ Bursaries – centralised

Decentralised? Debt collection (attorneys) – centralised


Application forms • A pre-registration online facility is available on the College website. The application form can becompleted, indicating personal details, programme desired, as well as the student’s currentqualifications.

• Applications received in this manner will be reviewed and prospective students notified, even ifapplications are unsuccessful. Successful applicants will be informed of details such as enrolmentdate, documentation needed to enrol, etc.

• Students need to enrol personally.

• Enrolment dates are communicated to students by way of advertisements, brochures, prospectuses,etc. The following details need to be communicated:

- Qualifications required per programme

- Enrolment dates and times

- Registration fees

• Registration takes place over a 2-day period. Existing students enrol for new programmes registeringon day one and new students enrol on day two. Students who wish to repeat a programme wouldre-register on day two.

• All late enrolments will be assessed on a case-by-case basis. Attention should be given to aspects suchas the programme the student wishes to enrol for, whether there are still openings available, howlong classes had been running at that stage etc.

• Late enrolments are informed of all classes missed and guidance is provided to assist students withstudies relating to these classes. A copy of notes for classes missed should be supplied to them.

• The campus manager determines final cut-off dates for enrolment, which is within the parameters ofthe deadline date set by the DoE.

• The enrolment venue must be clearly signposted to ensure that prospective students know where togo.

• An information desk is set up, where students can obtain information relating to the enrolmentprocess.

• Prospective students go to the information desk from where they are to be directed to the relevantplacement desk.

• Students, who are unsure of programmes that they can enrol for, should be sent to student supportfor counselling.


• Placement desks, manned by lecturers, must be placed in such a manner that students have easyaccess to it. Placement desks should be clearly signposted, so that students know where to enrol forprogrammes.

• Lecturers staffing the placement desks must be aware of the enrolment process, includingprogrammes presented and admission requirements. Enrolment staff must also receive training onreviewing documentation for authenticity.

• The lecturer staffing the placement desk determines which programme the student wants to enrolfor. The students’ current qualifications and identification documents (birth certificates, ID documentsand study permits for foreigners) are reviewed for authenticity and minimum admissionrequirements. Photocopies of these documents are made and attached to the completed enrolmentform.

• When the lecturer has ensured that the student has complied with all the admission requirements,assistance can be provided with the completion of the enrolment form.

• The lecturer signs the enrolment form after completion as proof of review and that the student hasbeen placed in the correct programme. Copies of all the required documentation have to beattached to the form.

• Students need to sign a copy of campus rules as confirmation that they would adhere to it.

• Students, who were enrolled in the previous period, need only to supply proof of results obtained forcompleted programmes, which is available from the administration department.

• Lecturers staffing the placement desks must have a copy of existing students’ results. These resultsmust be reviewed to ensure compliance with admission standards for the programme the studentwishes to enrol for.

Payment • Programme fees are determined during the budgeting process. Learners need to pay a minimumprescribed amount as determined by the College before they are registered as students.

• Two payments are required to be made by a student:

- A registration fee

- A tuition fee

• Tuition fees can be paid in the following manner:

- Cash

- Students can apply for credit (applicable only to certain campuses)

- Financial assistance

- Bursaries

• Registration fees must be paid upon registration. The registration fee must be paid in cash even whencredit is granted. Different options for payment of registration fees exist, depending on facilitiesavailable on campus.

Cash payments accepted on campus:

• Payments are made at the administration office. The administration clerk receives the payment andissues a receipt to the student.

• Before payment is received, the administration clerk must ensure that the student has a completedenrolment form, signed by a lecturer as proof that the form had been reviewed.

Cash payments not accepted on campus:

• Once the enrolment form has been completed, the student is given a completed bank deposit slip,with the campus’s bank account details, on which the programme he wants to enrol for is indicated.

• The student is required to deposit the prescribed amount, at any bank, before the enrolment processcan be completed.

• A 24-hour placement form can be filled out to reserve the prospective student’s position in theprogramme he wishes to enrol for, until he returns from the bank. It should be stated clearly to thestudent that a position on the programme would only be reserved for 24 hours.

• Once the payment has been made, the stamped deposit slip must be taken to the administrationdepartment.

• The administration clerk reviews the deposit slip, to ensure that the correct amount had beendeposited into the correct bank account. The student’s completed enrolment form is also reviewed toensure that a lecturer had signed it.

• The deposit made must be confirmed using online banking facilities, after which a receipt must beissued to the student.

• A copy of the deposit slip must be attached to the enrolment form.

• The administration clerk should reconcile registration fees received with students registered duringthe enrolment period. The campus manager should review the reconciliation.

• Credit arrangements:


- Credit facilities are only available to full time students. Part time students must pay the full tuitionfee upon enrolment.

- A standardised contract should be used to arrange for credit.

- The payment agreement form needs to be filled out by prospective students requiring creditapplication.

- The payment agreement form should state:

• the registration fee to be paid

• instalments to be paid

• instalment payment date

- The payment agreement form also needs to be signed by the person taking responsibility for thepayment of the fees (usually the parents/guardian of the student).

- This person should have contractual capacity.

- If the form is not signed in the presence of the administration clerk, the signatures should becertified, and a certified copy of the ID of the person who signed the form should be attached toensure authenticity.

- The administration clerk should retain a copy of the payment agreement form until the originalsigned document is returned to the administration department.

Collection of outstanding fees:

• A lecturer will receive a list of all students with credit arrangements in his registration class, detailingthe credit arrangements (number of payments to be made).

• The same information is held by the administration clerk or debtors clerk responsible for collectingoutstanding fees.

• The lecturer and administration clerk should follow up outstanding amounts as and when paymentsbecome due. The lists detailing outstanding amounts should be updated on a regular basis.

• If the learner has not been registered for examinations, subjects not paid for can be cancelled ifamounts are excessively overdue.

• Examination results can be withheld until all outstanding amounts had been received.

• A list of student fees and loans that are excessively overdue will be given over to debt collection bythe administration clerk. This should only be done after all other procedures (e.g. follow up ofoutstanding amounts with students, withholding examination results, etc.) to collect outstandingamounts had failed.

• Only lists authorised by the campus manager will be handed over.

Bursaries:

• The following bursaries may be granted: bursaries to SRC members, bursaries to children of staffmembers, achievers, and other campus specific bursaries, etc.

• Bursaries to SRC members should only be granted after completion of their term on the council.

• Bursaries can also be obtained from independent institutions.

• Prospective students must provide written proof of bursaries received to the administration clerkduring the enrolment process, before the bursary is acknowledged.

• The institution providing the bursary must be contacted by the administration clerk andconformation must be obtained that the bursary was granted. The amount granted should also beconfirmed.

• Campus specific bursaries can be deducted from tuition fees directly.

Financial support:

Refer to sub-process on [Financial Aid]

Registration • Once the administration clerk has ensured that enrolment documentation is complete, registrationfees has been paid and a receipt has been issued, the student’s name is added onto the class list ofthe programme he/she is enrolling for.

• The administration clerk updates the business and administration system (e.g. Coltech) for anyinformation on the student.

•A printout of the information entered onto the system is made and signed by the student asacknowledgement of review and accuracy/correctness thereof.

• A confirmation of registration is handed to the learner as proof that he/she is enrolled for the nextacademic period.

• A student card is prepared for the learner (the learner should provide a ID photo for this purpose),indicating:

- Student’s name;

- Student number;


- Enrolment period.

• The student should receive a:

- Receipt;

- Student number;

- Proof of registration;

- Student card; and

- Time table for classes to be attended

• A class list is printed once enrolment is complete. Students need to sign the class list once they haveattended the first class to verify that they have been registered in the correct programme.

• An adequate filing system should be maintained, where student records can be kept. Theadministration clerk will file the enrolment documents received from students.

• The examination enrolment list is prepared by the administration clerk and reviewed by theexamination officer.

• The examination officer submits this list electronically to the DoE.

Examination-only • Students who want to enrol for examinations only can register at the administration office.

enrolment: Registration can take place outside the enrolment period, but should be done before examenrolments are sent to the DoE.

• The student has to complete an examination-only enrolment form as prescribed by the DoE.

• Before a student is enrolled, the relevant HoD will confirm that the student still has a valid year mark(year marks are only valid for two years), thus authorising the enrolment. If not the student will notbe enrolled.

• A registration fee is payable by the student before registration is complete. The administration clerkissues a receipt for funds received.

• The registration fee is not refundable.

• The administration clerk enters the student’s details onto the DoE system.

Student transfers: • Transfers can be between campuses or Colleges.

• The DoE prescribes cut-off dates for transfers.

• Transfers can only be done during these periods

• The student who wants to transfer should apply at the administration department of the campuswhere he is currently enrolled.

• The administration clerk will contact the campus/College where the student would like to transfer toand confirm whether the programme is currently available at the campus/College and that vacanciesare still available for that specific programme.

• The administration clerk will confirm that the student’s tuition fees have been paid for in full.

• The administration clerk will complete a request for transfer form in five-fold. One form is to beretained by the campus and the other four will be sent to the DoE. A motivation for the transfershould be attached to the form.

• The student will pay a pre-set amount as prescribed by the DoE per subject that he/she wants totransfer. Payment can be made either by cheque or by postal order.

• The payment together with the transfer forms will be sent to the DoE.

• The student will receive an examination form, stating the subjects he/she is enrolled for, with a letterconfirming the transfer to the new College/campus.

• The student will be required to pay for classes he/she will be attending and will be reimbursed forclasses not attended. This is dependent on the reason for the transfer and the College policy. Refer to[Reimbursement of tuition fees sub-process].

• The student will register following the usual procedures at the new campus/College.



Enrolment Reimbursement of tuition fees

Purpose: Circumstances may exist when tuition fees should be reimbursed to students or persons responsible forpayment of tuition fees.

Responsibility: Administration clerk

Timeline: When requested

Authorisation & review Campus manager

Documentation • Motivation letter

• Cheques

• Proof of electronic transfer of funds


Decentralised?


Application forms • A motivation for reimbursement of tuition fees will be submitted to the campus manager in writing.

• The campus manager will review all motivations.

• Tuition fees are reimbursed according to scales determined by the financial committee, if approved oron merit.

• Registration fees are not refundable.

Approval • Reimbursement of tuition fees can be approved on the following grounds:

- Death of the student

- Illness (confirmed by a medical certificate)

- Transfer to another educational institution (confirmed by the other institution)

- Programmes/ subjects not offered

- Subject clashes due to changes in the class time table

- After adjustment of results by the DoE: Examinations Directorate

• All other applications will be dealt with on merit, e.g.

- If the student has attended no classes, and has notified the campus before the classes havecommenced

- If the syllabus has been changed by the DoE

- If the working conditions of the student have changed in such a manner that the student is unableto attend the classes, class fees will be reimbursed if confirmed by the student’s employer

- If a student requests to enrol for less subjects or wants to alter the subject he/she has enrolled fornot later than the second Friday of the year, semester of trimester and it was confirmed in writingby the person responsible for the payment of the account, the person will be reimbursed after anadministrative fee has been deducted.

- The campus manager or his/her delegate must approve all reimbursements.

Administrative fee - An administrative fee, as determined by the financial committee, will be levied on reimbursements.

- The administrative fee should be revised on an annual basis.

Reimbursement - The administration clerk prepares the payment to be made to the student or the person responsiblefor payment of the tuition fees, after the reimbursement was approved.

- Payments should only be made using cheques or electronic transfers.

- Payments should be authorised according to prescribed levels of authorities.



Enrolment Financial aid

Purpose: Financial aid is available to needy students based on the merit of each individual case.

Responsibility: Learner

Timeline: Before prescribed deadlines

Authorisation & College Council

review

Documentation • Application form

• College Council criteria

• Letters of recommendation

• Past examination results

• Journals


Decentralised?


Application forms • Students should apply for financial aid using the appropriate application form.

• Application forms must be accompanied by the necessary documentation in order to be considered:

- Certified copies of parents payslips / certified statement if parents are unemployed

- Assessment of the social worker

- Results obtained in previous period for students reapplying for financial aid

- Any other documentation as prescribed by the campus.

• Applications must be received before the deadlines as prescribed by the campus.

Available bursaries • Provision should be made in the budget for bursaries for needy students.

Approval • The College Council will set the criteria that needy students will be required to comply with in orderto be eligible for financial aid.

• The College Council will assess all applications received and bursaries will be allocated based onavailable funds.

• Students receiving financial aid need to pass in order to stay eligible for further financial support.

Financial support • When financial aid has been approved, the administration clerk must process the accounting journalfor the financial aid received against outstanding class fees.

• The campus manager will review processed journals.


4.1.2 Service delivery


Service delivery Community

Purpose: To recognise the social responsibility of the College by taking responsibility for the immediatesurrounding community

Responsibility: • Head of Department: Project leader

• Principal

Timeline: Short projects: 1 – 3 months

Large projects: 2 – 3 years

Authorisation & • Small projects:

review - Head of Department or campus manager

• Large projects:

- EXCO committee

- College Council

Documentation • Business plan

• Proposals

• Formal agreement with external parties

Centralised / • Centralised:

Decentralised? - Innovation centre

- Large projects

• Decentralised

- Small projects


Market research • A community need or request exists.

• Community needs are identified through discussions held with the following local organisations orgroups:

- Media;

- Stakeholders (i.e. the industry, correctional and social services, police, department of labour andhealth);

- Shelters;

- Community leaders;

- Local government;

- Non Governmental Organisations (NGO) and

- Institutional employees (i.e. campus manager, lecturers, marketing department).

• An innovation centre is to be established.

• The innovation centre will carry out market research to identify community needs.

• Identify community projects at other Colleges and determine if there is the same need in theColleges own community.

Prioritise needs • Prioritise all community needs in context of the Colleges’ mission and strategic objectives and in linewith the strategic plan.

• Develop a project to address community needs headed by the project leader.

• Determine if funding and human resources are available to assist in a specific project:

- Funds set aside in the budget for community projects

- Use experienced people to run the projects

• The College should apply for funds from local and international stakeholders (if necessary).

• A separate committee, consisting of stakeholders, should manage and channel these funds.

Identify services • The campus managers will develop a business plan to address the needs of the community (they willalso involve lecturers and other campus staff).

• The EXCO committee and College Council will give their final approval for the community businessplan.

• A learning programme (curriculum) will be developed in accordance with the business plan and willconsist of :

- Learning materials (through purchase or donations) and

- Assessment forms


Deliver services • Appropriate people will present the programme to the community (this may be outsourced by theCollege).

• An attendance register will be kept to determine who is attending the programme.

• After completing the programme, the presenter will assess the community members on theirperformance.

• Community members will receive a certificate as proof that they are competent and have completedthe programme.

• Staff members should monitor the programme on a regular basis (beneficial for staff development).

• The presenter of the community programme should also be reviewed by:

- The programme attendees and

- Project manager

Measure impact and • The results of the community training programmes will form part of the non-financial information

success given in the Financial Statement.

• DoE prescribes that the College must be involved in community services, especially to address the HIV and the unemployment problems.

• The community programme will be a success if the trainees can be used as trainers for futureprogrammes.



Service delivery Educational

Purpose: It is the responsibility of the qualified lecturers to deliver a high standard of educational services thatwill lead to employable students.

Responsibility: • Lecturers

• Placement officer

Timeline: 10 week syllabus

Authorisation & • Head of Department (HoD)

review • Campus manager

• Academic Board

Documentation • Syllabi

• Nated 191 – National Educational Policy

• Signed class attendance register

• Examination papers

• Certificates

• Curriculum Vitae (CV)

Centralised / Decentralised

Decentralised?


Needs assessment • Students are enrolled for programmes according to the qualifications received from the students.

• The National Educational Policy (Nated 191) stipulates the minimum requirements to enrol for aprogramme. This policy also prescribes the syllabus. The College uses this as a guideline to determinethe level on which to place the student.

• Colleges receive the syllabus, from DoE, for subjects within a programme.

• The social needs of students are addressed through informal activities held between campus sites(e.g. sports days, extra mural activities, formal functions and business days). This is part of theStudent Representative Council’s (SRC) functions.

Service delivery • Lecture material is based on the syllabus.

• Classes can be conducted in the following ways: lectures, videos, seminars, and self-pacedinstructions.

• Students write examinations throughout the year, depending on the study field chosen.

• Examination papers are set up, marked and moderated externally, with the exception of programmelevel N1 , which is internally marked and moderated.

Counsel students • Adequately trained tutors (senior students) will assist students during breaks and off periods with anyqueries or questions.

• Lecturers will be available, for students to make an appointment with, during their counselling hours.

Evaluate, graduate • Students need 40% to pass their examination and programme level.

and placement of • DoE will issue a certificate, per level, to each student that has passed their examination and

students programmes.

• These certificates will be sent through to the College for students to collect.

• A National or “N” diploma is issued to a student with a “N6” certificate with 18 months of practicalworking experience.

• Students have the option to submit their Curriculum Vitae’s (CV’s) to the placement officer.

• The placement officer has a contact list with prospective employers that he/she will approach to putforward the CV’s of students.

• The officer will also contact the Department of Labour and employment agencies.

• The officer has a database of placed or to be placed student information such as their:

- Personal information including contact numbers;

- CV;

- Placement employer(s).

• After 3 months, the officer will contact the employer and follow up on the students placed forfeedback concerning the student placement.

Assess effectiveness of • Lecturers will keep subject files for every subject that they are lecturing, with their preparations notes.

lecturers • The Head of Department (HoD) or campus managers perform regular class visits throughout the year.

• Senior lecturers hold meetings and perform subject reviews on a regular basis.

• The HoD monitors subjects and programmes through progress reports, class attendance registers,marks and feedback from students.



Service delivery Learner support

Purpose: The College will provide a support function to help students as far as possible, so that their everydaystudent life are sustainable and productive.

Responsibility: • Student Representative Council (SRC)

• Liaison officer

Timeline: 3 or 4 interviews per day

Authorisation & • Student support committee

review • Principal

Documentation • Student’s file

• Contact list of professionals

• Lecturer’s requests

• Students marks

Centralised / • Centralised

Decentralised? - Co-ordination and allocation of resources by the committee

• Decentralised

- Service delivery and maintenance of student support centres


Needs assessment • The liaison officer identifies students with problems as follows:

- Lecturers inputs

- Poor or reduced class attendance

- Students with poor marks or rapid decline in results

- Disruptive students

- Student requests

• Problems mostly experienced by students are:

- Domestic problems

- Lack of funding

- Ineffective study methods,

- Subject mastering,

- Lack of study facilities,

- Any form of substance abuse,

- Pregnancies.

• New students will undergo an orientation programme, on the first day of arrival.

Service delivery • The SRC acts as a channel through which all relevant information passes onto the students as well asa sounding board to deal with any queries.

• The liaison officer personally conducts an interview with the learner and if necessary, he/she willinvolve a specialist or physiologist.

• The student will undergo a remedial programme.

Evaluate and monitor • The officer will monitor the progress of the student on a regular basis.

progress • Follow up counselling sessions will be scheduled with a student and his/her support group.


4.1.3 Curriculum management


Curriculum Curriculum management

management

Purpose: This process identifies the processes that are required for curriculum development and management. Itensures that curriculum is relevant and will add value to students.

Responsibility: HoD’s

Marketing officer

Lecturers help develop programmes

Timeline: Constantly (especially after standards have been received)

Authorisation & • Campus manager

review • Academic board

• Industry review of developed programmes

Documentation • Market surveys

• Letter of needs from Industry

• Quotation to Industries

Centralised / Centralised

Decentralised?


Establishment of • DoE sets programmes

programmes • New programmes are developed by lecturers which are sent to Industry for comment

Review of existing • Every four years existing programmes are reviewed by DoE

programmes • Amendments or new syllabi is set

• The lecturer numbers are adjusted (appoint or establish an “excess list” based on the amendedcurriculum) based on College Council approval / decision.

Training of lecturers • Lecturers are familiarised / trained with any changes made.


4.2 Resource processes

4.2.1 Human resources management

Resource process: Sub-process:

Human Resources Recruitment

Purpose: This process identifies human resource requirements, analyses market of available resources, andinstitutes programmes for compensation, fringe benefits, recruitment, induction, training, andadvancement. This process also integrates human resource needs with other institutional planning.

Responsibility: • Short-listing panel

• Interview committee

• Human Resources department (HR)

• Financial officer

• Head of Department

Timeline: • Lecturers are recruited based on the number of FTE’s which is calculated annually

• Recruitment is done on an adhoc basis.

• Salary payments and deductions are made on a monthly basis

Authorisation & • Provincial Department of Education (DoE)

review • College Council

Documentation • Application form or CV

• Proof of identification and qualifications

• Excess list

• Evaluation form

• Declaration form

• Nomination form

• Annexure A

• Employment contract

• Detailed payroll

• Leave forms

• Expense claim forms and original invoices


Decentralised?


Identify staffing needs Appointment of GS-educator posts by Provincial government

• Vacancies in public institutions are advertised provincially and nationally in the public media in anofficial list of vacancies or circular.

• A designated official from DoE will contact the Principal of the College to determine whether theCollege will advertise in the Government Gazette for any available posts, which the College may wishto fill.

• Available posts are based on the FTE numbers of the College and are determined on an annual basisby the DoE.

• The Principal will inform the campus heads, on a management meeting, about the advertisement ofavailable posts in the Gazette.

• They will take a decision to advertise and the Principal will communicate that decision to the DoE,including the post level requirements.

• The advertisement in the Gazette will indicate the closing date of application and all the relevantinformation

Appointment of GS-educator posts by College Council

• Campus managers communicate a staffing requirement to the Principal at a meeting.

• The council will only be able to appoint if there is enough funds available

• The College Council approves the position of appointment to manage the bigger workload.

• Based on the post level or seniority, the position is advertised in the local, provincial and nationalnewspapers, indicating the closing date of application and other relevant information.

Application for Appointment of GS-educator posts by Provincial government

available posts • Application forms are available from the DoE, College or Gazette

• Original application forms must be submitted to the DoE, accompanied by the necessarydocumentation (i.e. certified copies of the applicants identification and qualifications)


• DoE will send all the received application forms through to the Provincial Shared Service Centre(SSC).

• The SSC will acknowledge the receipt of the applications and will eliminate those applications thathave not met the minimum requirements.

• The SSC compile a list of appropriate applications received.

• Applications will be organised and send through to the different Colleges, together with a copy ofthe SSC list and an excess list (for redeployment).

• Applicants can send application forms directly to the College.


• There is no formal application form necessary, but the College requires a CV and proof ofidentification and qualifications.

• The Human Resource manager of the College will receive all the CV’s.

Short-listing of Appointment of GS-educator posts by Provincial government

suitable candidates • A Short-listing panel (regulated by Circular 5 of 1999) will reduce or short-list the most suitableapplications to a maximum of 5 per post, excluding the excess list.

• The excess list comprises of redundant posts or staff that need to be redeployed from other campussites. These staff members must be part of the shortlist and will have preference over othercandidates assuming that they have filled out an application form.


• The Short-listing panel (guided but not regulated by Circular 5 of 1999) will reduce or short-list themost suitable applications, with no limitation per post.

• Identifying the best candidates will depend on the funds available.


Interviewing of Appointment of GS-educator posts by Provincial government

invited candidates • The union should be notified 7 working days before interviewing commences. The unionrepresentatives shall be observers to the process.

• The Interview committee or panel interviews the short-listed candidates.

• Candidates are informed before hand about the interview.

• All interviewees must receive similar treatment during the interviews

• The interviewing committee makes use of an evaluation form to evaluate the candidates during theinterview. Points are awarded, to the candidates, for the answers given to the questions.

• At the conclusion of the interviews the interviewing committee shall rank the candidates in order ofpreference, together with a brief motivation.

• The applicant with the highest score will have to sign the following forms:

- A declaration form that indicates that the applicant wasn’t involved with any corrupted activities.

- A nomination form as proof of acceptance of employment. The chairman of the committee and theCollege Council representative must also sign this form.

• The Principal will submit a “Request to appoint an applicant” letter to the DoE. Attached to this letterare the following and will be send through at once:

- The candidates application form

- The declaration form

- The nomination form

- All the application forms from all the other applicants that were interviewed

- An equity grid to indicate the outlay of the Colleges staff.

• DoE makes the final decision subjected to:

- Satisfying itself that agreed upon procedures were followed and

- That the decision is in compliance with the Employment of Educators Act of 1998 and the LabourRelations Act of 1995.


• The Interview committee or panel interviews the short-listed candidates.

• All interviewees must receive similar treatment during the interviews.

• In the interview it will be stated when the candidates will be contacted telephonically.

• The interviewing committee makes use of an evaluation form to evaluate the applicants during theinterview. Points are awarded, to the candidates, for the answers given to the questions.

• At the conclusion of the interviews the interviewing committee shall rank the candidates in order ofpreference, together with a brief motivation.

• A unanimous decision must be taken to appoint the applicant with the highest score or ranking.


All the members on the interviewing committee must sign a form as approval of the appointment ofthat specific candidate.

Notification of Appointment of GS-educator posts by Provincial government

appointment • The College will inform all unsuccessful candidates in writing within 8 weeks of an appointment being made


• The successful candidate will be phoned and must give a verbal acceptance of employment.

• The College notifies unsuccessful candidates telephonically.

Employment contract Appointment of GS-educator posts by Provincial government

• DoE will issue an employment offer to the successful applicant. The employment contract will besend through to the CEO or campus head, together with Annexure A (acceptance of offer).

• This annexure must be send back to the DoE officer within 30 days.


• The Council issues an employment contract to the successful candidate together with a jobdescription.

• The candidate signs the employment contract.

• For a non-permanent employee the contract, issued by the Council, will state the period ofemployment

The signed contract will be sent through to the HR department.

Salaries and • The HR manager is responsible to ensure that:

allowances - All the employment letters are signed, after initial approval of grading and salaries

- Terms of employment are in line with the applicable legislation

- The calculation of all deductions from staff members salaries are correctly and accurately calculatedand the necessary authorisation for deductions were obtained

• Letters of authorisation for salary deductions must be kept on the staff members file.

• Annual salaries, allowance increases and promotions should be reviewed and approved by thecampus manager and then forwarded to the HR department to put on the staff members personalfile

• The HR manager must forward all the approved changes to the financial department to update thepayroll in accordance to the approved changes of the staff members’ salary structure.

• The financial officer is responsible for:

- The correct and accurate calculation of all deductions from staff members’ salaries and to obtainthe necessary authority for deductions.

- The payment of all monthly deductions to the various Colleges, within the prescribed time frame,accompanied by a detailed remittance. These payments must be reviewed and signed by thecampus manager on a monthly basis.

- To update the list of deductions on a monthly basis or when restructuring of packages occurs toensure a complete and accurate list.

• The campus manager must review and approve the monthly payroll before payment and then alsosign that the lump sum paid is in agreement with the total of the approved payroll.

• The financial officer, HR manager and campus manager are responsible for the restructuring ofpackages. The Colleges’ management will approve the restructuring.

Leave • Staff members should complete leave forms and get it authorised by the HoD before the datesrequested.

• Authorised leave forms are send to the HR manager who will keep them in a file until the HoDconfirms the leave taken. The HR manager will then update the staff members’ leave record.

• HoD musts ensure that all staff members in his department are present during working hours.

• The HR manager uses a “monthly rate of leave accrual per staff member” list to update the leaverecords.

• The HR manager is responsible for:

- Adding accrued leave to every staff members record on a pro rata monthly basis from initialemployment,

- Deducting leave taken and

- Forward the monthly summary list of leave due per staff member to the financial officer.

• When a staff member resigns, the HR manager must obtain any outstanding leave taken from theHoD and forward the final leave days due to the financial officer for the calculation of payout at thecurrent employment rate.


Staff expenses • No amounts (other than salaries) may be paid to or on behalf of staff members except when thefollowing procedures have been adhere to:

- An expense claim form has be completed

- The original invoices must be attached to the claim form and

- The claim form must be signed by the staff member and authorised by the HoD, before anypayment is made.


Resource process: Sub-section:

Human Resources Staff development

Purpose: Staff development is based on the fundamental principal of life-long learning and development, toimprove the quality of the staff members’ work performance

Responsibility: • Staff development task team

• Team teachers

Timeline: • Team building on a yearly basis

• Development programmes throughout the year

Authorisation & Principal and campus managers

review

Documentation Training attendance register


Decentralised?


Identification of a need • A task team for staff development will identify a need through surveys, class visits, requests from staffor academic board.

• When training programmes are compiled, the task team should determine if there is any fundsavailable through:

- Budgets or

- Skills Development Fund (SDF) or

- Education, Training and Development Practices Sector Education and Training Authority (EDTPSETA) for a discretionary grant.

Development of • A task team will compile staff development programmes for the year for different study fields, intraining programmes accordance with the surveys and requests received back from the employees.

• The training programmes must provide job training and continuing education to staff members

• Staff members need the following training to help them determine if students are competent or not:

- Assessor training,

- Moderator training and

- Skills development training.

• The academic board of the College should benchmark their pass rate against the national pass rate. Ifthe Colleges pass rate is lower than 5% of the national pass rate, the following should bedetermined:

• Are the text books of the students up to standard,

• Is there a problem with the lecturer or the subject,

• Were there any problems with the question paper?

Attendance of training • Staff development programmes consist of training courses on specific days during the trimester or

programmes and year

team building • Team building programmes are held on a yearly basis to strengthen the relations between lecturers.

• An attendance register will be completed for those staff members who attended a training or team-building programme.

• All campus sites’ staff members are invited to attend informal workshops, held by the College,because it is more cost effective.

Training costs • The Principal can expect his staff members to attend a maximum of 80 hours training outsideCollege hours.

• The College can claim the training costs of council employees back from the SDF.



Human Resources Performance evaluation

Purpose: The aim of performance evaluation is to facilitate the personal and professional development of staffmembers in order to improve the quality of the teaching practice and educational management and toprioritise areas for development and growth throughout a staff members’ career.

Responsibility: Staff member and his/her supervisor or manager

Timeline: Throughout the year

Authorisation & • Supervisor or manager

review • Human Resource manager

Documentation 5 performance evaluation forms


Decentralised?


Goal setting • Individual, departmental and institutional goal setting should be implemented and administrated

• Staff members set goals to determine their priorities for personal and professional growth.

• Staff members and their supervisors / managers should agree upon their goals.

Performance • Staff members interpret and analyse the extent to which their performance meets their objectives orevaluation and goals.

feedback sessions • The performance evaluation process entails the following:

- evaluation forms need to be completed throughout the year,

- evaluation form needs to be completed in March and send through to the Provincial SSC.

• Staff members and their supervisors / managers must complete the evaluation forms based on theoutcomes achieved by the staff member.

• For CS educators, performance evaluation is done through class visits.

Salary reviews • Staff members’ salaries will be reviewed and adjusted in accordance with the rating that they havereceived on their performance evaluation forms.

Performance reviews • Regular performance reviews and counselling sessions should occur between staff members and their

and counselling managers.

• Based on staff members performance reviews, the following should be reviewed:

• Job description

• Responsibility grades

• Salary ranges

• Recognition should be given to staff members for good performances.



Human Resources Grievance procedures and complaints

Purpose: The objective of grievance procedures are to resolve complaints at a personal level as quickly and asclose to the source of the complaint as possible. It is aimed at avoiding a grievance becoming adispute.

Responsibility: Grievant

Timeline: When a complaint occurs

Authorisation & • Campus manager or Principal

review • Provincial DoE

Documentation • Written complaint

• Outcome of complaint

Centralised / Centralised (for serious misconduct) and decentralised (for not so serious)

Decentralised?


Complaint • Staff members raise a complaint when their employment relationships are affected, or where there isan alleged misinterpretation or violation of rights.

• A trade union, registered with the council, may register a complaint with the campus manager onbehalf of its members (individually or collectively) and represent such member(s) during any stage ofhis grievance procedure.

• Staff members with a professional education qualification can register with the South African Councilof Educators (SACE).

• SACE will handle complaints against lecturers that are registered with them.

Review and assessment • Complaints should be dealt with in the following manners:

of complaints • Oral interview

• Formal written complaint

• Oral interview

• A sincere attempt should be made to resolve any complaint by oral interview between a grievant andthe campus manager, before differences become formalised grievances.

• Formal written complaints

• Grievant(s) may lodge a complaint with the campus manager, in writing, within a reasonable periodof time, but not later than 90 calendar days following on the time and date on which the allegedcomplaint occurred.

• Full details of the nature of the complaint must be relayed to the campus manager. The complaintmust have the signature of the grievant and the campus manager at the relevant office of theProvincial Department of Education thereof must file a copy.

• The campus manager shall confer with the grievant and others involved within 3 working days ofreceipt of the formal written complaint, in order to resolve the grievance.

Discussions between • Oral complaint

parties - During the process no records will be kept of proceedings, which will be without prejudice to eitherof the parties.

• Formal written complaints

- At this meeting the facts shall be presented and considered and an effort shall be made to resolvethe matter to the satisfaction of all parties.

• If an action or lack of an action, or a decision or lack of a decision, concerns the campus manager,the grievant may refer the matter directly to a departmental level, provided that a sincere attempthas been made to resolve the complaint.

• Departmental reference

- If the grievant is not satisfied with the outcome of the written complaint, the grievant may refer thematter in writing, by hand or registered mail, together with the decision of the campus manager tothe Provincial DoE, within 5 working days of the parties failing to resolve the complaint.

- A copy of the referral must be presented to the campus manager and the grievant trade union (ifapplicable).

- The campus manager shall forward his/her comments together with all relevant information on thecomplaint to the Provincial DoE within 5 working days after receiving a copy of the referral.


Resolve complaints • Formal written complaints

- The campus manager shall communicate the outcome to the relevant office of the Provincial DoEwithin 5 working days of the resolution or non-resolution of the grievance.

• Departmental reference

• The head or delegated person of the Provincial DoE shall attempt to resolve the grievance andcommunicate the decision in writing, within 5 working days from the date of receipt of all theparties’ referrals, to all the parties.

• If the grievant is not satisfied with the outcome, he/she may register a formal dispute with theExecutive Officer of the Education Labour Relations Council.



Human Resources Disciplinary procedures and dismissals

Purpose: Discipline is the responsibility of the employer and it must be applied in a prompt, fair, consistent andjust manner.

Responsibility: Employer (DoE or College)

Timeline: Misconduct by a staff member

Authorisation & • Presiding officer

review • Member of the Executive Council or Minister

Documentation • Written notice

Centralised / Both

Decentralised?


Written notice • The employer institutes disciplinary procedures against staff members.

• The written notice of the disciplinary hearing must contain the following:

- A description of the allegations of the misconduct and the main evidence on which the employerwill rely,

- Details of the time, place and venue of the hearing,

- When delivered by registered post, the date on which the letter was received by the staff memberas indicated by the post office,

- Information on the rights of the staff member to representation by a trade union or another staffmember,

- Information on the rights of the staff member to representation by a legal representative, if thepresiding officer directs it.

- Information on the rights of the staff member to call witnesses at the hearing.

• The employer must determine in writing the specific acts of misconduct to be dealt with.

• In cases where the seriousness of the misconduct warrants counselling, the employer of the staffmember must:

- Bring the misconduct to the staff members attention,

- Determine the nature of the misconduct and give the staff member the opportunity to respond tothe allegations and

- After consultation with the staff member decide on a method to remedy the conduct

• In cases where the seriousness of the misconduct warrants it, the employer of the staff member maygive him/her a verbal warning. The employer must inform the staff member that further misconductmay result in more serious disciplinary action.

- The employer must record the warning

• In cases where the seriousness of the misconduct warrants it, the employer of the staff member maygive him/her a written warning. The following apply to written warnings:

- The written warning must be in accordance with Form A and a final written warning must be inaccordance with Form B

- The employer must give a copy of the written warning to the staff member, who mustacknowledge receipt on the copy.

- If the staff member refuses to sign the copy for acknowledgement of receipt, the employer musthand the warning to the staff member in the presence of another staff member, who shall sign inconfirmation that the written warning was conveyed to the staff member.

- The written warning must be filed in the staff members’ personal file.

- A written warning remains valid for 6 months.

- If the staff member disagrees with the written warning or wishes to add any information, he/shemay lodge such written objective or additional information against the sanction.

- This objection or additional information must be filed with the written warning.

- If during the 6-month period the staff member is subject to disciplinary action, the written warningand the written objection or additional information, may be taken into account in deciding on anappropriate sanction.

• If the seriousness of the misconduct does not warrant a formal enquiry, the following proceduresshould be followed:

- Determine the nature of the misconduct and give the staff member the opportunity to respond tothe allegations and

- After consultation with the staff member decide on a method to remedy the conduct

• In cases where the seriousness of the misconduct warrants it, the employer of the staff member may


give him/her a verbal warning. The employer must inform the staff member that further misconductmay result in more serious disciplinary action.

- The employer must record the warning

• In cases where the seriousness of the misconduct warrants it, the employer of the staff member maygive him/her a written warning. The following apply to written warnings:

- The written warning must be in accordance with Form A and a final written warning must be inaccordance with Form B

- The employer must give a copy of the written warning to the staff member, who mustacknowledge receipt on the copy.

- If the staff member refuses to sign the copy for acknowledgement of receipt, the employer musthand the warning to the staff member in the presence of another staff member, who shall sign inconfirmation that the written warning was conveyed to the staff member.

- The written warning must be filed in the staff members’ personal file.

- A written warning remains valid for 6 months.

- If the staff member disagrees with the written warning or wishes to add any information, he/shemay lodge such written objective or additional information against the sanction.

- This objection or additional information must be filed with the written warning.

- If during the 6-month period the staff member is subject to disciplinary action, the written warningand the written objection or additional information, may be taken into account in deciding on anappropriate sanction.

• If the seriousness of the misconduct does not warrant a formal enquiry, the following proceduresshould be followed:

- The employer must convene a meeting where the staff member and his/her trade unionrepresentative or other representative are present,

- Reasons are given to the staff member as to why it is necessary to initiate this procedures and

- The staff member or his/her representative is heard on the misconduct and reason therefore.

• Notice of enquiry for serious misconduct cases:

- The staff member must be given written notice at least 5 working days before the date of thehearing.

- The staff member must acknowledge receipt of the notice by signing a copy thereof.

• If the staff member refuses to sign for the receipt of the notice, it must be given to the staff memberin the presence of another staff member, who must sign in confirmation that the notice wasconveyed to the staff member.

Disciplinary hearing • The disciplinary hearing must be held within 10 working days after the written notice has beendelivered to the staff member.

• The employer must appoint the preceding officer.

• A fellow staff member or representative of a trade union can represent the staff member at thehearing.

• A legal representative can represent the employer or staff member, if the preceding officer agrees toit.

• If the staff member fails to attend the hearing and the preceding officer concludes that the staffmember does not have a valid reason, the hearing may continue in the absence of the staff member.

• The preceding officer must keep record of the written notice of the disciplinary hearing and of theproceedings.

• The presiding officer must read the notice before the start of the hearing, for the record.

• The representative of the employer must lead evidence on the conduct giving rise to the hearing.

• The staff member or his/her representative may question any witness called by the representative ofthe employer.

• For the purpose of the investigation and hearing, the representative of the employer may summonany person who

- May be able to give information of material importance concerning the investigation or hearing or

- Has any book, document or object that may have an effect on the matter.

• Where the staff member has requested that a person be present at a hearing as his/her witness, theemployer must assist the staff member to ensure that the witness attends.

• The summons to appear at a disciplinary hearing must be in accordance with Form D and serve on aperson by hand, fax or registered post.

• The staff member or his/her representative must be given an opportunity to lead evidence

• The representative of the employer may question the witness of the staff member.


• The presiding officer may ask any witness questions for clarification.

• The presiding officer must give a finding whether or not the staff member has committedmisconduct and must inform the staff member of the finding and the reason therefore.

• Before deciding on a punishment, the presiding officer must give the staff member an opportunity topresent evidence in mitigation.

• The representative of the employer may present evidence regarding aggravating circumstances.

• The presiding officer must communicate the final outcome of the hearing to the employer and thestaff member within 5 working days after the conclusion of the disciplinary enquiry and the outcomemust be recorded on the personal file of the staff member.

Steps taken after • If the presiding officer finds that a staff member has committed misconduct, the presiding officer

disciplinary hearings must, on behalf of the employer, take the following into account:

- The nature of the case,

- The seriousness of the matter,

- The staff members’ previous record and

- Any mitigation or aggravating circumstances.

• Steps that can be taken against the staff member if he/she was found guilty of misconduct:

- Counselling,

- Verbal, written or final written warning,

- Fine that is not exceeding 1 months salary,

- Suspension without payment for a period nor exceeding 3 months,

- Demotion,

- A combination of the above or:

• Dismissal.

Appeals • The employer may not implement a punishment during an appeal by the staff member

• A staff member may appeal against a finding or punishment by completing an application inaccordance with Form E.

• The staff member must, within 5 working days of receiving notice of the final outcome of adisciplinary hearing, submit the appeal form to the Member of the Executive Council or Minister.

• On receipt of the application, the Member of the Executive Council or Minister must request theemployer to provide him/her with a copy of the record of the proceedings and any other relevantinformation.

• If he/she chooses to allow further representations by the staff member or his/her representative, theMember of the Executive Council or Minister must notify the staff member of the date, time andplace where such representation must be made.

• The Member of the Executive Council or Minister must consider the appeal and may

- Uphold the appeal

- Amend the punishment or

- Dismiss the appeal.

• The employer must immediately implement the decision of the Member of the Executive Council orMinister.


Subject: Section:

Human Resources Retirement and resignations

Purpose: Procedures that staff members can follow when they decide to leave the College.

Responsibility: Staff member

Timeline: When a staff member decides to retire or to resign

Authorisation & Principal and campus manager

review

Documentation • Notification of retirement

• Resignation letter


Decentralised


Retirement of a • All staff members must retire by the age of 65

staff member • Retirement can also take place at the age of 55, but if a staff member retires before 60 a percentageof his package will be raised as a penalty.

• An employer may, at the request of a staff member, allow the staff member to retire before the ageof 55 years, if the employer is of the opinion that:

- There is not any reason for discharge,

- A sufficient reason exists for retirement and

- The retirement will be to the advantage of the State.

• The staff member will notify the College Council or DoE of his retirement.

• The staff member is removed from employment.

• All outstanding amounts are paid to the staff member.

Resignation of a • A staff member may resign by giving 90 days written notice or such shorter notice as the

staff member employer may approve, at the request of the staff member.

• If a lecturers name is struck off the register of lecturers kept by the South African Council forEducators, the lecturer shall be deemed to have resigned with effect from the day followingimmediately after the day on which the lecturer’s name was taken off.

• For a staff member employed by DoE, the College will write a covering letter to accompany the staffmembers’ resignation letter.

• For a staff member employed by the College Council, the resignation letter will be submitted to thecampus manager and Principal.

• The staff member is removed from employment.

• All outstanding amounts are paid to the staff member.


4.2.2 Sponsorship and fundraising management

Resource Process: Sub-process:

Sponsorship and Donor funding

fundraising

management

Purpose: To coordinate the Colleges funding needs and objectives;

To obtain financial resources from donors;

To broadcast the mission and purpose of the College;

To obtain funding for new programmes;

To develop donor programmes and products; and

To monitor and communicate with potential donors

Responsibility: Campus manager

Timeline: Continuous

Authorisation & College Council – inform the council of any potential donor activities

review

Documentation Letters to potential donors

Minutes of meetings held with the committee where the donor is represented


Decentralised?


Identify donor funding • Identify the College’s financial resource needs through internal market research

requirements • These financial resources will be used for operations, long-term investments or construction /acquisition of facilities.

• Benchmark with other Colleges and/or Universities.

Identify potential • Develop donor programmes (e.g. member activities, fundraising programmes) specific to a potentialdonors donor, which is relative to the needs of the College.

• Develop donor products (types of contributions e.g. deferred giving, gifts of property etc.).

• Through external market research identify corporations and other potential donors with extensiveresource capacity with the College district.

• Document all the above within a business plan that is in alignment to the Colleges strategic plans.

Solicit donors • Contact potential donors

• Communication with potential donors on a regular basis until the donor pledge to make acontribution

• Hold fundraising events to attract potential donors

Set up donor • The following information should be specified in the contract with the donor:

agreements/contracts - Name of the donor or organisation

- Donation or contribution pledged (commitment)

- Method of payment in terms of funds

Bill and collect • The following must be send through to the donor (when applicable):

- Billing notices

- Cash receipt notices

- A pledge acknowledgement letter

- Donor funds must be billed and collected on a regular basis

Thank you letters • Thank you follow-up notes must be send to donors

• Maintain relations with donors through communications and or events



Sponsorship and Alliances and sponsorships

fundraising

management

Purpose: To set up and establish relationships with beneficial alliances and to award learnership agreements topromising students.

Responsibility: Lecturers

Campus head

Timeline: Continuous

Authorisation & College Council

review

Documentation Minutes of meetings

Communication Student log book on progress

Student examination results / report card


Decentralised?


Identify promising • Identify promising students by evaluating their performance and academic qualifications with the

students assistance of lecturers

Identify potential • Identify the College’s learnership requirements through internal research e.g. discussions with student

alliance partners / support unit, understanding bursary requirements versus bursary availability.

sponsors • Benchmark with other Colleges and/or Universities which alliance partners they use.

• Through external market research identify corporations and other potential alliance partners orsponsors with extensive resource capacity with the College district that could assist students withtheir financial requirements.

Solicit potential • Contact potential alliance partner or sponsor

alliance partners /

sponsors

Set up alliance or • The following information should be specified in the contract with the all:

sponsor agreements/ - Name of the alliance partner or sponsor

contracts - Pledged or commitment

- Method of payment in terms of funds

- Student(s) that benefit from the alliance or sponsor

- Any requirements the sponsor may require from the student

Communicate with • Payment of student fees from sponsors

alliances or sponsors • Continuous feedback with to sponsors to monitor the progress of students

on regular basis


4.2.3 Materials management


Materials Consumables (e.g. cleaning materials, stationery, garden supplies etc.)

management

Purpose: Materials management is the process for controlling the acquisition of goods and services through therequesting, ordering, competitively pricing, evaluating alternatives, encumbering funds, and receiving,and paying for items needed for “other than personal services”. This process is best described asprocurement.

Responsibility: Grounds supervisor

Timeline: Five times a year


review

Documentation • Consumables register

• Requisition form

• Order form

• Suppliers delivery note

• Suppliers invoice

• Suppliers statement

• Accounts payable

• Purchases


Decentralised?


Budgets Consumables are budgeted for based on the current year spend adjusted for inflation.

Identification of needs • A consumables register is used to monitor the level of consumables on hand at the campus site.

• All movements in consumables are required to be reflected on the register.

• The register will indicate the minimum reorder levels for each category of consumables.

• The grounds supervisor will fill out the requisition form identifying the consumables requirementonce the reorder level has been reached.

Approval of quantities • The campus manager reviews the budget for available funds.

• If the funds are available the campus manager will authorise the requests by signing the requisition.

List of approved • The College will provide each campus with a list of approved suppliers (the College can negotiate

suppliers group discounts, preferred terms and conditions etc.)

• The list is updated on an annual basis for changes.

• Only suppliers from the approved list should be selected unless the campus manager is able tonegotiate more favourable terms and conditions. The College should be notified of this decision.

• If an approved supplier is not being used:

- At least 3 quotations must be obtained in instances above R2 000.

- One quotation is acceptable if there is only one provider/supplier available.

- The quote needs to be attached to the order.

Ordering of materials • The campus manager makes out an order in three copies:

• One copy remains with the campus manager;

• One copy is sent to the financial officer; and

• One copy is sent to the approved supplier.

• The campus manager must indicate to the supplier on to order to whom the goods should bedelivered.

Delivery • Only the person indicated to receive

• The delivery note received from the supplier will serve as proof that the goods were received.

• All goods are required to be checked for quality and quantity before signing for acceptance.

• Items that are of sub-standard quality should not be accepted.

• All short deliveries or discrepancies between what has been indicated as delivered and what hasactually been delivered should be noted on the delivery note and signed by the deliverer.

• The delivery note must be sent to the finance officer;

• The delivered goods must be stored in a secured environment (alarm system, armed response,security bars and gates etc.).


Recording • The financial officer will record all purchased transactions once the delivery note is received.

• The grounds supervisor will update the consumables register for items received.

• Receive a monthly statement from the supplier for all amounts outstanding at the end of the month

• The financial officer will record all payments made.

Payment • The finance officer should receive an invoice from the supplier for all delivered items

• The finance officer will inspect all documentation and agree all amounts indicated on the invoice tothe order and delivery note.

• Once verification has been made payment can be authorised by the finance officer.

• If an electronic payment is made the finance officer will “load” the payment details onto the system.

• The campus manager must verify the payment details against the supporting documents.

• The campus manager will authorise the payment, via a password once all verification has been made.

• CoD’s are not permitted.

• Two signatories are required before a cheque payment or an electronic transfer can be made.

• All payments up to R10 000 must be authorised by the campus manager or his/her delegate and asenior staff member.

• Payments above R10 000 up to R25 000 must be authorised by the campus manager and thefinancial officer or an external council member.

• Payments above R25 000 must be authorised by the financial manager and a College Councilmember.

• Applications for Head Office payments on behalf of a campus must be authorised by the campusmanager or his/her delegate.

• The financial officer or his/her delegate and a designated external Council Member must signcheques issued in respect of these payments.

• The campus manager should make arrangements for changes in signatory powers, if required, afterconsulting with the financial committee. The financial officer should make the necessaryarrangements for Head Office purposes.

• Only computerised cheques should be issued (with the exception of petty cash cheques and refundsto students /parents with no bank account).



Materials Workshop teaching aids and capital

management

Purpose: Materials management is the process for controlling the acquisition of goods and services through therequesting, ordering, competitively pricing, evaluating alternatives, encumbering funds, and receiving,and paying for items needed for “other than personal services”. This process is best described asprocurement.

Responsibility: Lecturers / workshop managers / Head of department (HoD)

Timeline: Budgeting is a year in advance

Authorisation & Campus manager / principal (overall budget approval)

review

Documentation • Consumables register

• Requisition form

• Order form

• Delivery note

• Suppliers invoice

• Suppliers statement

Centralised / Centralised procurement / decentralise payment

Decentralised?


Budgets • The most pertinent requirements will be budgeted for a year in advance.

Identification of needs • Lecturers identify their requirements a year in advance by specifying their operating and capitalrequirements.

• The list will be sent and reviewed by the workshop manager.

Approval of quantities • The workshop manager will send the list to the Head of Department (HoD) for review and approval.

• The HoD will send the list to the campus manager for approval.

• In the following year the campus manager will review the budget for available funds on a monthlybasis.

• Purchases should be made near the end of the financial year to ensure that adequate funds areavailable.

• If the funds are available the campus manager will authorise requests based on income availability.

List of approved • The College will have a list of approved suppliers (the College can negotiate group discounts,

suppliers preferred terms and conditions etc.) from which purchases can be made.

• The list is updated on an annual basis for changes.

• If an approved supplier is not being used:

- At least 3 quotations must be obtained in instances above R2 000.

- One quotation is acceptable if there is only one provider/supplier available.

- The quote needs to be attached to the order.

Ordering of materials • The campus manager will complete a requisition form requesting the campus goods.

• On the requisition form explanations need to be provided as to why the purchase is required as wellas an indication that funds are available.

• The campus manager will sign the requisition as authorisation / satisfaction that the purchase can bemade.

• The College procurement manager will make out an order in four copies once the requisition hasbeen checked for reasonableness and completeness:

• One copy is sent to the campus manager, passed onto the campus finance manager;

• One copy is kept at the College;

• One copy is sent to the campus financial officer; and

• One copy is sent to the approved supplier.

Delivery • Delivery will be made to the campus.

• Only the campus manager should receive the goods or his or her delegate.

• The delivery note received from the supplier will serve as proof that the goods were received.

• All goods are required to be checked for quality and quantity before signing for acceptance.

• Items that are of sub-standard quality should not be accepted.

• All short deliveries or discrepancies between what has been indicated as delivered and what hasactually been delivered should be noted on the delivery note and signed by the deliverer.


• The delivery note must be sent to the College finance officer;

• A copy of the delivery note should be kept with the campus finance officer together with the order.

• The delivered goods must be stored in a secured environment (alarm system, armed response,security bars and gates etc.)

Recording • The campus financial officer will record all purchased transactions once the delivery note is received.

• Receive a monthly statement from the supplier for all amounts outstanding at the end of the month

• The campus financial officer will record all payments made.

• The financial officer will update the fixed asset register where necessary.

• The financial officer will ensure that the necessary assets are covered by existing insurance.

Payment • The campus finance officer should receive an invoice from the supplier for all delivered items

• The campus finance officer will inspect all documentation and agree all amounts indicated on theinvoice to the order and delivery note.

• Once verification has been made payment can be authorised by the campus finance officer.

• If an electronic payment is made the campus finance officer will “load” the payment details onto thesystem.

• The campus manager must verify the payment details against the supporting documents.

• The campus manager will authorise the payment, via a password once all verification has been made.

• CoD’s are not permitted.

• Two signatories are required before a cheque payment or an electronic transfer can be made.

• All payments up to R10 000 must be authorised by the campus manager or his/her delegate and asenior staff member.

• Payments above R10 000 up to R25 000 must be authorised by the campus manager and thefinancial officer or an external council member.

• Payments above R25 000 must be authorised by the financial manager and a College Councilmember.

• Applications for Head Office payments on behalf of a campus must be authorised by the campusmanager or his/her delegate.

• The financial officer or his/her delegate and a designated external Council Member must signcheques issued in respect of these payments.

• The campus manager should make arrangements for changes in signatory powers, if required, afterconsulting with the financial committee. The financial officer should make the necessaryarrangements for Head Office purposes.

• Only computerised cheques should be issued (with the exception of petty cash cheques and refundsto students /parents with no bank account).


4.2.4 Facilities management


Facilities Maintenance and operations

management

Purpose: To assess the condition of the facilities currently available, on a regular basis, so as to determinewhether repairs and maintenance are necessary.

Responsibility: • Campus manager

• Lecturers

• Facilities manager

Timeline: • Yearly, budgets are set and approved by the College Council. These budgets are reviewed on aquarterly basis.

• Facilities are assessed through out the year

• All maintenance required by the facilities manager or lecturers, is written in the maintenance registerthrough out the year.

• The facilities manager reviews the maintenance register on a regular basis though out the month.

Authorisation & • Finance committee

review • Executive committee

• College Council

Documentation • Approved budget

• Maintenance policy for the College

• Contract for specialist maintenance

• Maintenance register


Decentralised?


Facilities assessment • Determine the existing facility resources that are available to the campus site:

- Own facilities

- Facilities on fellow campus sites

• Facilities manager inspects the current available facilities to determine if the facilities need:

- Minor repairs

- Improvements (extensions)

- Additions

• The facilities manager conducts a routine inspection of the buildings, premises and surroundings, toensure that everything is functioning properly.

• Lecturers report any maintenance needed to classrooms to the HoD or facilities manager.

• The campus manager will ensure that the appropriate safety regulations are in place.

Maintenance • All maintenance required to a facility is written in the maintenance register.

register and review • The facilities manager reviews the register on a regular basis.

thereof

Authorise • All repairs and maintenance should be treated in accordance to the College’s policies and budgets.

maintenance or Budgets, for the next year, are approved at the final College Council meeting before year-end.

repairs • Budgets are approved before the financial year and are calculated on the basis of existingmaintenance contracts and the previous years’ repairs and maintenance expense account.

• The campus manager will approve ad hoc repairs or maintenance expenses.

Maintain or repair • Approved facility maintenance plans and programmes are used for preventative maintenance.

facilities • Specialised maintenance requirements are outsourced.

• Maintenance is carried out in term of the following:

- Preferred supplier and/or

- Best quotation and/or

- Maintenance contract or

- Employment of a handy man (he will be responsible for all maintenance tasks).

Clean facilities • Lecturers are responsible for keeping their classrooms neat and tidy.

• The cleaning of facilities can be carried out in house or outsourced.



Facilities Fixed assets

management

Purpose: To put procedures in place to purchase fixed assets and to administer and maintain the records ofthose assets.

Responsibility: • Financial officer or accountant

Timeline: • The fixed asset register will be updated on a continuous basis through out the year

• Fixed assets are counted once a year at year-end

• Monthly reconciliation of fixed assets


review

Documentation • Quotations,

• Contract,

• Order form,

• Delivery note,

• General ledger,

• Fixed asset register,

• Fixed asset count sheets,

• Reconciliation.


Decentralised? - The approval to purchase fixed assets

• Decentralised

- Each campus site will be responsible for: purchasing of fixed assets, updating the fixed asset registerand the safeguarding of fixed assets.


Acquisition of fixed • Plan and document the details of the fixed assets required.

assets • The Principal and campus managers should approve the purchase of fixed assets, at a Collegemanagement meeting.

• The campus manager will obtain 3 quotes and will base his/her decision on the best quality at thelowest price.

• Campus manager will issue an order in three fold (in the order book, to the supplier and to thefinancial officer)

• All 3 quotes will be attached to the order.

• The campus manager will sign the delivery note as proof that the assets delivered, at the campus site,matched up to the delivery note.

• The financial officer will compare the delivery note and contract to the order form before thetransaction is captured.

Record transaction • The financial officer will contact the insurance company to provide them with the necessary details ofthe newly purchased fixed asset.

• The financial officer will record the fixed asset transaction in the financial records of the College andin the fixed asset register.

• The supplier will be paid when the financial officer receives a statement from the supplier.

• Annually, the fixed asset register is reconciled to the general ledger.

Update the fixed asset • The fixed asset register details the following:

register - Classes of assets;

- Asset codes;

- Purchased date of the asset;

- Date sold or scrapped;

- Cost price of the asssets;

- Book value at the beginning and end of the year;

- Accumulated depreciation at the beginning and end of the year;

- Total depreciation in the Income statement and per asset class;

- Total additions of assets during the year;

- Total disposals of assets during the year

- Profit or loss on the disposals

• The fixed asset register must comply with the standards set out in AC 123.


Update the fixed • Depreciation is calculated on all fixed assets in accordance with the Colleges accounting policy.

asset register • The financial officer will record the fixed asset in the fixed asset register from the date it waspurchased. When assets are disposed, they are taken out of the fixed asset register from the date ofsale.

• A manual reconciliation between the opening and closing balance will be performed per month,taking additions, disposals and depreciation into account.

Safeguard of fixed • A code is awarded to each fixed asset for inclusion in the fixed asset register and to identify the asset

assets easily.

• A fixed asset count occurs once a year and will be compared to the fixed asset register.

• Security procedures will be in place to ensure that fixed assets are kept safe (e.g. alarm system,patrolling guards, safety gates, armed response)



Facilities Unoccupied facilities

management

Purpose: To assess and select the most suitable uses for unoccupied facilities so that the College can use theirfacilities optimal.


Timeline: When unoccupied facilities are identify

Authorisation & • College Council

review

Documentation • List of unoccupied facilities

• Rental agreements, tenders or sale contracts


Decentralised?


List of unoccupied • List all the facilities that are unoccupied and not currently being used e.g. classrooms and hostels

facilities

Assess and select uses • Assess and select the most suitable use for unoccupied facilities, such as:

- Rental or

- Sale or

- Tender or

- Auction.

• The decision to identify the most suitable option will be based on economical factors and theCollege’s business plan.

Approval for option • The College Council will approve the disposal of any unoccupied facilities and the selling pricethereof.

selected

Advertise to sell Renting facility

• The facility will be advertised in local newspapers or other publications or possible lessees will beapproached. An agent will also

be approached if necessary.

• The campus manager will perform a background check on the proposed lessees.

• The College will enter into a rental agreement with the most suitable lessee. The rental agreementwill state all the relevant details of the lease such as:

- A description of the asset being rented;

- The monthly rental payments;

- Occupation date;

- Restrictions placed on the lessee;

- Escalation clauses

Sale of facility or tender

• The facility will be advertised in the local newspapers and property magazines.

• An estate agent will be approached to sell the property or facility

• The best buyer is identified, based on the best price offered or tendered for.

• The College Council will give the final approval of the facility sale or tender.

• The proceeds of the sale will be transferred into the bank account of the College.

• The sale is recorded in the financial records of the College.



Facilities Additional facilities

management

Purpose: In instances where the College does not have the infrastructure to meet its current facility requirementsbased on student capacity and therefore has to acquire additional facilities to accommodate theColleges demands/needs.

Responsibility: • Head of Department

• Campus manager

• Contractor / supplier

Timeline: • Current facilities are reviewed regularly through out the year

• When the College needs additional facilities.

Authorisation & • Financial Committee

review • College Council

Documentation • List of preferred suppliers / contractors

• Budget

• Proposals

• Contract


Decentralised? - College review of facilities available on all campuses.

• Decentralised

- Assess student capacity versus available facilities


Communicate • The condition of current facilities will be reviewed.

requirements and • Additional facilities are needed to address the Colleges need for sufficient infrastructure.

review current • This Head of Department (HoD) will communicate the need to the campus manager.

facilities • The additional facility need will be incorporated in next years budget.

Authorisation • On a regular basis the campus manager will determine if there are available funds to purchase theadditional facilities (fixed asset).

• The College Council will give their final approval to purchase or build additional facilities or toimprove existing facilities.

Tendering of service • Requests for proposals will be communicated to preferred contractors or suppliers.

providers • Proposals will be collected from the tender box at the College head’s office, on the deadline date.

• The campus manager will review the proposals for the service providers, to best suit the College’srequirements (one of those requirements include budgetary constraints).

• The College Council will select and approve the best service provider. All service providers will benotified even those that were unsuccessful.

Payment of service • Payment in terms of the College policy.

providers • All payments for facilities should be authorised by the College Council.


4.2.5 Financial management


Financial Budgeting

management

Purpose: This process oversees the preparation and monitoring of the College’s operating and capital budgets.

Responsibility: Financial committee

Timeline: September to December

Authorisation & Campus manager, executive committee and College Council

review

Documentation • Operating budget

• Capital budget

• Cash flow forecast

Centralised/ Centralised and decentralised

Decentralised?


Obtaining input prior • All staff members should have the opportunity to provide input regarding the budget for the

to budgeting process following financial period.

• Suggestions/ requests should be submitted in writing to the campus manager, 2 weeks prior to thecommencement of the budgeting process. Requests should be accompanied by a written motivation.

Budgeting • Operational budget:

- The financial committee must prepare a draft budget, taking into account all probable expenses for the following financial period.

- The draft budget must be based on standardised general ledger accounts.

- All campuses that are part of the College must use a standardised budgetary format. Budgets mustbe prepared on a month-to-month, term-to-term as well as year-to-year basis, taking into accountthe actual expenses expected to occur in a specified period.

- The Head Office of the College must provide a budget of expected expenses for the following year.

- Each campus will contribute to the funds for expenses of Head Office according to the FTE ratio.

- The probable income stream for the next period should be assessed, based on the income receivedduring the previous year.

- An revenue budget should be prepared, where class fees for programmes for the next academicyear are determined taking into account the expected number of students to register as well asincome needed to cover expenses budgeted for. Income received from other sources, e.g. rentalreceived, income from corporate programmes should also be taken into account.

- Programmes should be costed separately, and class fees determined accordingly. Benchmarkingshould be done against other Colleges offering similar programmes to ensure that class fees arereasonable and market related.

• Capital budget:

- A separate budget for capital expenditure must be prepared.

- Capital expenditure requirements should be evaluated for the following year. However, a timeframefor longer than a year should be considered, and an attempt should be made to predict futurerequirements as far into the future as possible.

- The following should be considered when assessing a capital project:

- The reason why the project should be implemented at that point in time

- The reason for implementing the project in the proposed manner

- The timing and amount of operating cash flows expected

a) Implication of not proceeding with the project

b) The financing method or availability of funds and the actions required

- The same process is to be followed as with the operational budget.

• Cash flow forecast:

- A cash flow forecast must be prepared.

- The same process is to be followed as with the operational budget.

Approval of budget • Operational budget, capital budget and cash flow forecast:

- The campus manager must approve the provisional budgets and forecasts internally before it issubmitted to the executive committee.

- The executive committee must approve the budget, after which it must be submitted to theCollege Council in December for final approval.


- The Principal must submit the final budget for the College to the provincial department.

Monitoring of • The campus manager must monitor income and expenditure in co-operation with responsible

expenses financial officials.

• A monthly report detailing actual expenditure and income to budgeted figures (capital andotherwise) as well as explanations for variances over set predetermined percentages must becompiled. This report must be submitted to the executive committee for approval.

• The final budget submitted should not be altered due to a change in circumstances; however,available funds may be used for other purposes if this happens.



Financial Cash and bank

management

Purpose: This process oversees management of payments and receipts and accounting for cash resources


Timeline: Throughout financial period

Authorisation & Financial manager/ campus manager

review

Documentation • Deposit slips

• Cheques

• Mail register

• Post-dated cheque register

• Bank statements

• Cashbook


Decentralised?


Payments received • The administrative clerk and the cashier should both be present when mail received is opened.

by mail • All mail received should be entered into a mail register. Both people responsible for opening the mailshould sign the mail register.

• Receipts should be issued for all payments received by mail, and post-dated cheques should bedocumented in a separate register, detailing the date on which it can be deposited.

• The administration clerk should file post-dated cheques.

Deposits • Cash receipts:

- The cashier must issue a receipt for all cash received.

- The administration clerk should collect all cash received from the cashier, and sign for it, at the endof the day.

- The administration clerk should place the float and cash receipts not deposited (including creditcards and cheques) into the safe in his/her office for the night.

• The administration clerk must prepare a bank deposit slip, detailing all cash and cheques received.Cash received should be deposited at the bank on a daily basis.

• The administration clerk should review the register of post-dated cheques to ensure that all chequesthat can be deposited are included on the bank deposit slip.

Payments • The administration clerk prepares the payment after supporting documentation was reviewed forvalidity.

• Supporting documentation should include the order, GRN, invoice as statement on which the invoiceis reflected.

• Payment can be made by cheque or electronic payment.

• Cheques must be signed by two authorised cheque signatories. Cheques should be marked as “Notnegotiable”, and should be issued in the payee’s name.

• The cheque, together with the supporting documentation, must be presented to the chequesignatories for authorisation.

• Electronic payments should be authorised by two releasing operators.

• A remittance advice must be generated by the administration clerk, and must be presented to theauthorized releasing operators, together with the supporting documentation as well as the electronicpayment request.

• The remittance advice must be signed by the two releasing operators and the date and paymentrequest number entered onto the remittance.

• Authorisation should be done using unique passwords. Access to Internet banking should bemonitored and should be limited to authorised operators.

• Supporting documentation must be cancelled when payment is done to prevent double payment.Cancellation can be done by stamping/ marking documentation as “PAID”. The date of paymentshould also be indicated.

Reconciliations • Reconciliation of payments received:

- The cashier and the administration clerk must prepare a reconciliation of payments received.

- The financial manager/campus manager reviews the reconciliation prepared by the cashier and theadministration clerk on a daily basis, agrees it to the bank deposit slip and signs it.


• Reconciliation of payments received through the post:

- The financial manager/campus manager reconciles the cheques and cash deposited and post-datedcheques on file to the Mail register.

• Bank reconciliation:

- All bank accounts must be reconciled on a monthly basis.

- The administration clerk reconciles the cashbook to the bank statement during the first week ofevery month, by following the following steps:

a) Records the bank closing balance at the end of the previous month

b) Subtracts all outstanding cheques. (In cashbook, not on bank statement)

c) Adds all outstanding deposits. (In cashbook, not on bank statement)

d) Adds all outstanding debit orders or other payments. (On bank statement, not in cash book)

e) Subtracts all outstanding deposits. (On bank statement, not in cashbook)

f) Agrees final total to the balance in the cashbook at the end of the previous month.

• The administration clerk captures all the entries appearing on the bank statement that do not appear in the cashbook, before month end processing takes place.

• The financial manager/campus manager reviews and signs the reconciliation and ensures that allentries have been captured in the cashbook.

Physical controls • The administration clerk responsible for banking will be responsible for all deposit books and shouldbe the only person to have access to them.

•The administration clerk responsible for creditors will be responsible for the chequebooks and shouldbe the only person to have access to them.

• Chequebooks and deposit books must be placed in a safe in the administration clerk’s office at theend of each day.

• Only one chequebook and deposit book should be in use at one time.



Financial Petty cash

management

Purpose: This process oversees management of petty cash for small expenses of an ad hoc nature


Timeline: As necessary


review

Documentation • Petty cash voucher

• Invoice

• Reimbursement request form

• Petty cash register


Decentralised?


Petty cash • An appropriate petty cash float will be issued to an appointed person who will be personallyresponsible for that float.

• The administration clerk responsible for the float must sign for the receipt of the float.

• The administration clerk responsible for the petty cash should have the only key to the petty cashbox. A duplicate key must be kept by the campus manager in a safe in a envelope signed by boththe administration clerk and the manager over the seal to prevent tampering. The purpose of theduplicate key is to allow access to the petty cash when the administration clerk is unexpectedlyabsent.

• A predetermined limit must be set for any single payment out of petty cash.

• Before any money is paid out of petty cash, the responsible administration clerk should ensure thatthey have a pre-numbered petty cash voucher filled in and authorised by an appropriate HoD ormanager. In addition, there should be an invoice/ slip from the supplier

• The total expenses should be admitted to the campus manager using the reimbursement requestform on a monthly basis for reimbursement. The vouchers should be attached (in number order) tothe back of the form.

• At any point of time, the amount of cash in the box and the value of the vouchers in the box shouldequal the value of the float.

• Under no circumstances are IOU’s to be issued out of petty cash.

• A monthly count and reconciliation should be done on a monthly basis.

• The petty cash must be stored in a lockable box and the box must be kept locked at all times and insafe place during the day. At nights, public holidays and weekends the box must be locked in a box.

• Filling in the reimbursement form:

- Each payment must be entered sequentially.

- A standardised form must be used, detailing type of expenditure, etc.

• The administration clerk and the relevant manager must sign each reimbursal form. A reimbursal is to be made unless both signatures appear on the form.



Financial Inter-campus accounts

management

Purpose: This process manages inter-campus transactions




review

Documentation • Quarterly cash flow projection

• Detailed movement schedule


Decentralised?


Inter-campus • Each campus shall operate with a separate bank account, with Head Office being responsible for the

accounts bank account relating to the College.

• Each campus must submit a quarterly cash flow projection for three months at the end of January,April, July and October to Head Office, and relevant monies will be transferred at the beginning of the following month.

• Overflow at year-end must be transferred to the Head Office bank account.

• Head Office must supply each campus with a detailed movement schedule of all entries on eachcampus’s account within a predetermined timeframe after month-end.

• The schedule must be signed by the campus manager and returned to Head Office as confirmationthat the schedule was reviewed and seen as being correct.

• Any additional entries required by Head Office or individual campuses must be agreed upon by bothparties. All necessary entries must be reflected in both the campus and Head Office’s records to ensure that their records agree.

• Should there be a disagreement on a specific amount or entry, Head Office’s opinion will takeprecedence and the disagreement should be resolved in the following month.

• No dispute may be unresolved for more than the initial month.



Financial Investment

management

Purpose: This process oversees investment of excess funds




review

Documentation Investment policy


Decentralised?


Investments • A standardised investment policy should be agreed upon for the College

• Campuses must invest excess funds at the best possible rate.

• Funds should be invested on a long-term or short-term basis, depending on the individual campus’scash flow requirements.

• Investments should be authorised by the financial manager/ campus manager.

• A report on the investments held by the campus should be included in the financial reportssubmitted to the financial committee, who will fully apprise the College Council thereof.

• Interest received by the Head Office on funds received from the individual campuses, will be for thebenefit of the relevant campus.



Financial Capital expenditure

management

Purpose: This process addresses the College’s capital expenditure needs, monitors expenditure and managesacquisitions and disposals


Timeline: When requested


review

Documentation • Limits of authority

• Capital expenditure budget

• Capital expenditure acquisition form

• Capital asset disposal form


Decentralised?


Acquisition of • Once a need for capital expenditure is identified, it must be formalised in the form of a

capital assets pre-numbered Request for Capital Expenditure.

• In order for an informed request to be made the employees must take into account the followingfactors:

- Budgetary constraints

- Benefits to be gained

• Capital expenditure must be authorised according to the limits of authority.

• Only items that will produce income (even in an indirect way) over a future period and are tangibleand are being used may be capitalized and amortised as per the Depreciation policy.

• Items that are of this capital nature and cost less than a predetermined amount must be written offagainst income for administrative purposes.

Disposal of assets • A Capital Asset Disposal form needs to be completed before any assets can be disposed of.

• Authorisation for disposal of an asset should be obtained according to the limits of authorisation.

• The campus manager must oversee the disposal/ sale of the asset.



Financial Contract management

management

Purpose: This process addresses the College’s management of contracts


Timeline: When necessary

Authorisation & Campus manager, College Council

review

Documentation • Contracts e.g. operating leases, finance leases, rental lease contracts

• Levels of authority


Decentralised?


Contract • Standardised contracts, drawn up by a lawyer where applicable, should be used. Contracts should

management adhere to applicable legal requirements.

• Contracts should be signed on behalf of the College/ campus by individuals authorised to legally bind the entity.

• Limits of authorisation should be adhered to as well as other policies and procedures whereapplicable (e.g. policies and procedures relating to capital expenditure)



Financial Financial reporting

management

Purpose: This process addresses the College’s financial reporting. It monitors compliance with the Receiver ofRevenue regulations concerning tax-exempt status, monitors compliance with financing covenants andfinancing structure of the College and prepares and monitors accounting records and reports.


Timeline: Throughout the financial period

Authorisation & Campus manager, executive committee

review

Documentation • Trial balance

• Creditors and debtors age analysis

• Other account reconciliation’s

• Accounting records


Decentralised?


Capturing of • All financial transactions should be recorded when they occur.

transactions • All financial transactions should be recorded according to the College’s set policies.

• Administration clerks are responsible for the capturing of daily transactions.

Cut-off and deadlines • The month-end for management accounts will be on the day as prescribed by the College.

• All accounts are to be closed on the last day, according to the list of predetermined cut-off dates.

• Reconciliation’s are to be performed as at that date by the relevant persons according to thepredetermined responsibilities listing.

Reporting format • The monthly management accounts must be prepared in the prescribed reporting format and maynot be altered.

• A monthly report is to be issued to the executive committee.

Month end file • The financial manager/ campus manager creates a month end file for every month.

• All balances are to be supported by a schedule/ reconciliation detailing how the balance is made upwith comparatives of the previous month. Reconciliation’s should be prepared in line with set policiesand procedures.

• The month end file must be stored in an easily accessible location; the current year’s as well as thelast two months of the previous financial year’s month end files must be immediately accessible.

Accruals • Accrue for all costs known to be incurred but not yet invoiced.

• Process all entries through the general ledger.

• Allocate costs to the various departments/ cost centres.

• Ensure that all accruals raised during the previous month are reversed at the beginning of the currentmonth.

• Prepare a detailed listing of all accruals raised and the previous month’s comparatives, to ensurecompleteness and ease of analysing and reporting.

Provisions • Identify and raise provisions in line with the set policies and procedures.

• Ensure that all provisions raised during the previous period were reversed at the beginning of thecurrent period.

• Produce supporting documentation detailing why the provision was created and how the provisionwas calculated.

• Prepare a detailed listing of all provisions raised and the previous month’s comparatives, to ensurecompleteness and ease of analysing and reporting.

Bank • The administration clerk is responsible to ensure that all cheques issued and all deposits received onthe cut-off date were processed through the cashbook.

• All stale cheques must be identified and written back. Stale cheques are cheques older than sixmonths that have not been presented for payment yet. A detailed record of stale cheques reversedshould be kept and filed in the current month.

• A bank reconciliation must be prepared and all reconciling items should be followed up, to ensurethe reasonability thereof. The bank reconciliation should be reviewed and signed as proof thereof.

• A petty cash count should be performed and it should be reconciled to the amount as per thegeneral ledger.

Debtors • All debtors’ accounts should be closed off by processing last invoices issued and payments received atthe cut-off date. No transactions occurring after this date may be processed in the reporting month.


• Note the last invoice number and credit note number used and retain a copy of these on the month-end file, to ensure that cut-off was properly performed thus facilitating accurate financial reporting.

• Prepare a detailed schedule of all debtors making up the debtors balance. The schedule must containcomparatives and the campus manager must sign the schedule as proof of review. These details willaid the analysis of debtors, specifically movement and recoverability thereof.

Creditors • Process all invoices received and payments made by the cut-off date into the creditors ledger. Notransactions occurring after this date may be processed in the reporting month.

• Match all invoices against GRN’s awaiting invoice and follow up on any invoices with nocorresponding GRN’s to ensure that the services or goods has been received and that it is a validexpense or alternatively that the invoice has to be raided on the creditors reconciliation as a requestfor credit/query.

• Prepare a reconciliation for each creditor’s account.

Consumables • Stop all movement in stores at the end of cut-off day. No further transactions occurring after this daymay be processed in the reporting month.

• Process all GRN’s to general ledger accounts.

• Record the numbers of the last GRN’s processed and the last stores issue note and retain a copy ofthese on the month end file. This would help ensure that cut-off was correctly adhered to.

• Perform a stock count.

• The campus manager should approve adjustments to stock records and a copy of the authorisedadjustment listing should be retained on file.

• Print out a final copy of the stores listing and retain the listing on the month end file.

• Ensure that all provisions relative to consumables raised during the previous period were reversed atthe beginning of the current period.

• All unmatched invoices must be kept in a file and followed up, as noted above.

• Prepare a reconciliation as at cut-off date (actual on hand per sub ledger to control account). Detailsmust be provided for all reconciling items. Schedules supporting the reconciliation should be placedon the month-end file.

Fixed assets • The campus manager/ financial manager must update the summary of fixed assets. This will includedetails of all additions, disposals, profit/ loss on disposal, cash received on disposal, updating ofphysical location where movement of fixed assets had taken place, etc.

Payroll • A reconciliation between the payroll summary details and the general ledger balance should beperformed by the campus manager/ financial manager.

Trial balance • Prepare a trial balance in accordance to the standardised listing of accounts.

• Ensure that the trial balance is balancing and that balances reflected on the trial balance agree to thebalances as per the general ledger. Differences must be followed up.

• The campus manager/ financial manager should sign the trial balance as proof of review.


4.2.6 Information management


Information Needs assessment and system planning

management

Purpose: To evaluate the existing information systems used by the College and to determine whether thosesystems address the needs of the users and the College in an efficient and effective manner.

Responsibility: • Principal

• Service provider

• Campus manager

Timeline: Ongoing process that needs to be done on a regular basis



Documentation • Feasibility study

• Information system strategy

• Project plan


Decentralised? - System planning

• Decentralised

- Assessment of needs


Identify users of • The campus manager will develop an information system development plan, which is in accordance

information generated with the overall strategic business plan of the College.

by the system and • The following users of information will be identified by the College:

their information - Provincial and National government;

requirements - Students;

- Management (campus managers, principals and College Council);

- Industry (other Colleges);

- Community.

• The College must determine the information that the identified users need / require.

Assess existing systems • Resource availability will be determined by each campus manager such as:

- Personnel

- Hardware

- Software

• The campus manager will also make regular assessments of existing information systems.

Feasibility study • A cost benefit study will be performed, by comparing available resources to existing informationsystems and new systems to be developed or purchased. This study will take into account the relativeuser requirements and the urgency of these requirements.

Develop system • Based on the information systems used and user requirements, system specification will be developed

specifications by the campus manager.

• The campus manager will communicate the system specifications to the service provider forimmediate attention.

Develop a strategy • The principal will develop an information system strategy that links the campus sites in a College

and a project plan and will be in line with the DoE. The strategy will be a detailed document of how the College movesfrom a state of “as is” with its technological “gaps” and weaknesses to a “to be” state. This willensure that information is actively shared and made available to all campuses as well as DoE. Thestrategy will also meet the requirements of the users identified and narrow the current technology“gaps” identified.

• The principal will develop a project plan to further breakdown the strategic plan identified in termsof:

- Responsibilities;

- Timelines and

- Steps.



Information System development and implementation

management

Purpose: To purchase or develop the best quality and most cost effective software to implement into theinformation system.


• Trainer

Timeline: When new software is purchased or developed



Documentation • Project plan

• System documentation

Centralised / Both

Decentralised?


Purchase or • In accordance with the project plan, that contains the system requirements, the campus manager

development of will decide whether software should be developed or purchased

software • The campus manager will obtain 3 quotations for the acquisition of new software and hardware fromthe preferred supplier list.

• All purchases or developments will be authorised in accordance with the levels of

Implementation • The newly developed or acquired technology will be implemented.

• The software implemented will be compatible to ensure that the different sections of the system cancommunicate to each other.

• After implementation, the system documentation will be updated.

Training of staff • Staff members will be trained to use the information systems effectively and sufficiently.

members

Backups • Daily backups of the new system and programme files need to be made and stored at a differentvenue.



Information Operation, control and maintenance of the system

management

Purpose: To collect, process, store and distribute information in accordance with user needs and policies of theCollege. To restrict unauthorised access to confidential information and data files and therebymaintaining data integrity. To secure hardware and systems from theft and damages.

Responsibility: • Individual users of the system

Timeline: Staff members are responsible and accountable for the operation, control and maintenance of thesystem.



Documentation • Requested reports,

• Updated system documentation and procedure manual,

• Service and hardware provider contracts

• Formal access request

• Detailed fixed asset register

Centralised / Both

Decentralised?


Collect, process, store • Campus sites are linked via a Wide Area Network (WAN) system.

and distribute • Each campus site will have access to its own server.

information • The business and administrative system is used to capture relevant information in connection with:

- Students;

- Finance;

- Administration and

- Fixed assets management.

• This information is processed and stored on the server of the campus site.

• Access to information depends of the seniority of the staff member.

• When a user needs information, it should be easy to obtain in the correct format.

E-mail procedures • The following actions and uses of the e-mail system are expressly forbidden:

- Sending of unsolicited bulk mail messages of a personal nature;

- Propagation of chain letters,

- Advertising of personal items,

- Use of private e-mail accounts for business related e-mails,

- Frivolous usage of the e-mail system, for reasons of either a business or private nature (It willinclude replies to task requests in the affirmative),

- Subscription to mailing lists, discussion groups, a list-server, or other such bulk mailing services, forprivate purposes,

- Subscription to third party mail systems and use of such mail systems from Colleges premises,unless directly related to a business need or objective,

- Transmitting any material either as the message or as attachments to a message, that in Collegesole discretion, is unlawful, obscene, malicious, threatening, abusive, libellous, or hateful, orencourages conduct that would constitute a criminal act or give rise to civil liability or unrest or abreach of company policies. Among those which are considered offensive are any messages whichcontain sexual implications, racial slurs, gender specific comments, defamatory statements or anyother comment that offensively addresses someone’s age, sexual orientation, religious or politicalbeliefs, national origin or disability.

• Staff members are not authorised to retrieve or read any e-mail messages that are not addressed tothem.

Report information • The system must be able to generate customised reports that provide information as needed in aneasy to understand format.

• Users can request for reports in connection with:

- Student information: progress, attendance, exam admission, outstanding class fees, studentaccounts, examination enrolment, examination results, FTE number and head counts.

- Financial information: general ledger accounts, invoices, payments, outstanding fees, balance sheet,income statement, cash flow statement etc.


Training users • Users should be trained to be computer literate and to use the systems’ programmes effectively andsufficiently.

Third party servicing • Negotiating and monitoring (maintain) third party servicing relationships

relationships - The campus sites will make use of the same service provider wherever possible to allow fornegotiated discount rates.

• The service provider must be contracted for after sales services and if possible assisting users in thetraining.

• Colleges can contract local hardware suppliers to provide them with needed hardware.

Safeguarding • Maintaining data and system integrity and control access to both of them.

information • Safeguarding of information systems, backups and other system documentation.

User rights • The information officer should ensure that users rights are correctly identified on the system,monitored and consistently updated.

• The access needs should be inline with the users needs. Access to the server should be formallyrequested and authorised by the campus manager

• A users access to the system or server should be adjusted when his/her responsibilities changed andmust be removed when he/she leaves the College.

• User access rights are monthly reviewed by the information officer.

General Information • IT assets should be identified and appropriately documented. These assets include:

Technology security - Servers (mail, files, websites),

- Network interconnection components (routers, switches, hubs),

- External connection components (modems, remote access servers),

- Security components (firewalls, alarms),

- PC’s and laptops.

• Appropriate documentation concerning IT assets must be available and should cover:

- Ownership: an appropriate person will take responsibility for an assigned IT asset,

- Identification: each IT asset should be uniquely identified

• The identification of an asset must ensure that:

- The location of the IT asset is known,

- The supplier information of the IT asset is known,

- Maintenance contracts for the IT assets are identified and

- Persons responsible for the assets are known.

• Short descriptions of the IT assets include general information such as its main function and use andlinks with other IT assets.

Password changes • Formal standards for password management, user identification and user access rights should be inplace and implemented.

• Controls should be in place to provide reasonable assurance that:

- The use of system utilities is limited to authorised individuals and monitored,

- Access to programme codes are limited to properly authorised individuals,

- Sensitive systems identified are isolated appropriately,

- Adequate guidance for end users’ responsibility for password management should be in place andoperating effectively.

• Passwords should comply with the following:

- Passwords should be at least 8 characters long,

- Password changing should be enforced with a minimum frequency of every 30 days,

- After 3 failed attempts, any further login attempts must be locked out,

- Password re-use should be prevented for an agreed number of changes,

- A mixture between alphabetical and numeric characters should be required,

- A list of banned “trivial” passwords should preferable be enforced automatically.

• The password management should include:

- Secure delivery of initial and temporary passwords,

- Immediate forced password change,

- Positive identification procedures in emergency situations,

• Positive acknowledgement of password receipt.

Recovery procedures • Development of a business continuance plan with detail procedures in case of a system failure.

• Backups are made on a regular basis and must be stored in a save area. Backups are made on a CD,on paper or disk.

• Documentation of recovery procedures must be available.


4.3 Levels of authority

Please note that the values included in the tables below have been added for illustrative purposes and should be varied tosuit the needs of the College.

4.3.1 GeneralApproval level / transaction

College

PrincipalC

ampus

FinancialD

ivisionalH

R FinanceFinance

Credit

Council

Head

Manager

Manager

Manager

AssistanceC

ontroller

Acquisition of new cam

pus sites X

Property purchase and lease

> R1 Million

X

< R1 Million

X

Capital expenditure

Amounts approved in Budget

> R1 Million

X

< R1 Million and > R500 000

X

< R500 000 and > R50 000X

< R50 000X

Ad hoc amounts not approved in Budgeted

> R1 Million

X

< R1 Million

X

Sale, transfer or lease of College assets

> R500 000X

< R500 000X

Budgets and forecastsX

Sub-contract agreements

> R1 Million

X

< R1 Million and >R100 000

X

< R100 000X

Legal action / consultationsX

Monthly m

anagement accounts

X

Financing activities

> R1 Million

X

< R1 Million and > R500 000

X

< R500 000X


4.3.2 Revenue and accounts receivable

Approval level / transactionC

ollegePrincipal

Cam

pusFinancial

SalesStock

Credit

Council

Head

Manager

Officer

Controller

Controller

Credit applications

X

Debtors m

aster file changes

Changes to selling prices

X

Sales ordersX

Discount approval

Cheque register reconciliation

X

Legal action

> R500 000X

< R500 000X

Bad debt wrote-offs

X

Credit / debit notes

X


4.3.3 Purchasing and accounts payable


ollegePrincipal

Cam

pusFinancial

SalesStock

Creditors

Council

Head

Manager

Manager

Controller

Clerk

Purchase requisition

Purchase orderX

TendersX

Delivery received

X

Credit applications

X

Payments authorisation

> R1 Million

X

< R1 Million and >R100 000

X

< R100 000X

Cheque signatories

XX

X

Creditor reconciliations

X

Month end accruals

X


4.3.4 Personnel and payroll records


ollegePrincipal

Cam

pusFinancial

HR

FinanceC

ouncilH

eadM

anagerM

anagerAssistant

Engagement notices

X

Engagement of casual / tem

poray staff

Changes in conditions of em

ployment

X

Changes in renum

erationX

Salary payroll report

Leave forms

Discharge notices – salaries

X

Labour disputesX

Staff Loans

BonusesX

Annual Salary IncreasesX


4.3.5 General ledger maintenance


ollegePrincipal

Cam

pusFinancial

FinanceC

reditC

ouncilH

eadM

anagerAssistant

Controller

Approval of general journalsX

Summ

ary of general journalsX

Approval of cheques signatoriesX

New

General ledger codes

X

ReconciliationsX

Closing entries (year end)

X


4.3.6 Bank mandate/cheque signatories


ollegePrincipal

Cam

pusFinancial

Procurement

StockC

reditors C

ouncilH

eadM

anagerO

fficerC

ontrollerC

lerk

Cheque signatories

XX

X

Opening or closing of bank account

X

Bank transfersX

X


5 Financial statements and disclosuresThe following is an example of a complete set of annual financial statements with full disclosure. Not all the disclosurerequirements will be applicable to a College.

This template should be used as a starting point for a College to prepare annual financial statements. We have attemptedto include as much detail as possible to assist the preparers of financial statements. In addition; we have includedadditional "instructions" or "commentary", where considered necessary, in italics within frames. These do not form partof the annual financial statements.

Example College

Annual Financial Statements

For the year ended 31 December 200X


Example College

Annual Financial Statements

for the year ended 31 December 20xE

Contents ................................................................................................................................................................................Page

Report of the independent auditors ..........................................................................................................................................121

Responsibility for the annual financial statements ......................................................................................................................122

Council report............................................................................................................................................................................123

Corporate Governance report ....................................................................................................................................................126

Income statement......................................................................................................................................................................128

Balance sheet ............................................................................................................................................................................129

Statement of changes in equity ................................................................................................................................................130

Cash flow statement ..................................................................................................................................................................131

Notes to the financial statements........................................................................................................................................132-147

Supplementary information

Detailed income statement ........................................................................................................................................................148


Example College

Report of the independent auditorsUnqualified report

To the members of Example College

We have audited the annual financial statements of Example College set out on pages XX to XX for the year ended 31December 20XE. These financial statements are the responsibility of the College Council. Our responsibility is to expressan opinion on these financial statements based on our audit.

ScopeWe conducted our audit in accordance with statements of South African Auditing Standards. Those standards require thatwe plan and perform the audit to obtain reasonable assurance that the financial statements are free of materialmisstatement. An audit includes:

■ Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,

■ Assessing the accounting principles used and significant estimates made by management, and

■ Evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our opinion.

Audit opinion In our opinion these financial statements fairly present, in all material respects, the financial position of the College at 31December 20XE and the results of their operations and cash flows for the year then ended in accordance with SouthAfrican Statements of Generally Accepted Accounting Practice, and in the manner required by the Companies Act inSouth Africa.

Supplementary informationThe supplementary schedules set out on page 148 do not form part of the annual financial statements and are presentedas additional information. We have not audited these schedules and accordingly we do not express an opinion on them.

AUDITORS Inc.Registered Accountants and AuditorsChartered Accountants (SA)

________________________Per CA SurnamePartner13 March 20XF


Example College

Responsibility for the annual financial statementsThe College Council is responsible for monitoring the preparation of and the integrity of the financial statements andrelated information included in the annual report.

In order for the Council to discharge its responsibilities, management has developed and continues to maintain a systemof internal control. The Council has ultimate responsibility for the system of internal control and reviews its operation.

The internal controls include a risk based system of internal accounting and administrative controls designed to providereasonable but not absolute assurance that assets are safeguarded and that transactions are executed and recorded inaccordance with generally accepted business practices and the College’s policies and procedures. These controls areimplemented by trained, skilled personnel with an appropriate segregation of duties, are monitored by management andinclude a comprehensive budgeting and reporting system operating within strict deadlines and appropriate controlframework.

The financial statements are prepared in accordance with statements of South African Generally Accepted AccountingPractice and incorporate disclosure in line with the accounting philosophy of the College. They are based on appropriateaccounting policies consistently applied and supported by reasonable and prudent judgments and estimates.

The Board believes that the College will be a going concern in the year ahead. For this reason they continue to adopt thegoing concern basis in preparing the annual financial statements.

The annual financial statements for the year ended 31 December 20XE set out on pages 121 to 147 have been approvedby the College Council on 30 March 20XF and are signed on its behalf by:

_____________________________ Principal

_____________________________ Chairman of the College Council


Example College

Council ReportThis indicates the type of information that should be included

The Council of a public further education and College must perform all the functions, which are necessary to govern thepublic further education and College. A principal of a public further education and training institution is responsible forthe management and administration of the institution. This is duly stated in Section 9 (1) and Section 13 respectively ofthe FET Act no. 98 of 1998.

CollegeThe College was established under the Further Education and Training Act no.98 of 1998

College NameThe College was incorporated as Previous College. On 1 October 20XE permission was granted to change the name toExample College

MissionThe College’s mission, as approved, is:"To lead in meeting needs for accessible, responsive, high quality education training and complementary services in thecommunity and its surroundings."

ObjectivesIn 20XD the College prepared a strategic plan for the period 1 August 20XD to 31 December 20XG. This strategic planincludes an accommodation strategy and financial forecasts. The Council monitors the performance of the College againstthese plans. The plans are reviewed and updated each year. The College’s continuing strategic objectives are to:

■ Achieve a student body of 4 200 full-time equivalents (FTEs) by 31 July 20XG;

■ Improve student retention to 92% by 31 July 20XG;

■ Retain the Investors in People award;

■ Maintain financial viability of the College by maintaining cash days in hand of 40, a current ratio of 2:1 andaccumulated reserves of 5% of income.

The College is on target for achieving these objectives.

The College’s specific objectives for 20XE and achievement of those objectives is addressed below:

■ The College achieved 4 060 FTE students against a target of 4 200 FTE students (see below);

■ To improve student retention to 90% – this was achieved;

■ The Investors in People award is only awarded next year again.

■ To maintain financial viability of the College by maintaining cash days in hand of 40, a current ratio of 2:1, andaccumulated reserves of 5% of income – this was achieved; and

■ To open outreach centres in Upper Town and West Town; the centre in Upper Town has been successfully opened, theWest Town centre has been delayed due to logistical problems.

Key Performance IndicatorsKey Performance Indicators relating to key areas of the College’s activity are set out in the National Department ofEducation’s publication Summary Statistics for Further Education and Training Colleges: 20XD/20XE. This documentcompares the performance of different Colleges in the following areas:

■ Achievement of funding target;

■ Percentage change in student numbers;

■ In-year retention rates;

■ Achievement rates; and

■ Contribution to national targets.


Example College

Council Report (continued)

Student NumbersThe College is funded according to the level of activity that it generates each year. In 20XE, the College achieved 4 060FTE students against a target of 4 200.

This represents growth of 3% over 20XD. The majority of this growth has been achieved by opening an outreach centrein Upper Town. The centre caters for the rural population of Upper Town and surrounding villages, which do not haveeasy access to the main College site. The College will be opening a further outreach centre at West Town in September20XF. This centre had originally been planned for June 20XE and the delay accounts for the shortfall against the College’sallocation.

Student AchievementsStudents achieved an estimated 65% of their qualification aims (in 20XD: 62%).

Curriculum DevelopmentsMethods of teaching and learning are under continuous review and development in order to ensure that the curriculummeets the needs of the local population.

The need for outreach centres was identified following discussions with Provincial Department of Education and the locallearning partnership. A centre has been opened in Upper Town and a further centre is planned for West Town.

Higher National Diploma (HND) programmes franchised from Old University are continuing to be expanded.

Transparency ArrangementsThe Secretary of the College maintains a register of financial and personal interests of the Council Members. The registeris available for inspection at:

Example CollegePark LaneThis City0123

FinancesThe College generated an operating surplus in the year of R33 079 (20XD: R30 591).

The College has accumulated reserves of R104 560 and cash balances of R29 509. The College wishes to continue toaccumulate reserves and cash balances in order to create a contingency fund.

Post-balance Sheet EventsOn 28 February 20XF, three of the campuses in the South African cities of Lower Town, Middle Town and Upper Townwere closed for a period of 6 weeks due to a strike by the lecturers of the Tertiary Educators Workers Union (TEWU). It isestimated that the College lost class fees of approximately R60 000 during this period.

On 17 March 20XF, the shares of the Industrial Sector of the JSE declined in value by an average of 40%. The College’sinvestment in Industrial Components Limited dropped in value by 46%, resulting in an estimated loss of R20 000.

Staff and Student InvolvementThe College considers good communication with its staff to be very important, and to this end it publishes a regularnewsletter, which is available to all staff. The College encourages staff and student involvement through membership offormal committees.

TaxationThe College is exempt from tax in terms of Section 10 (1) (cN) of the Income Tax Act.

Employment of Disabled PersonsThe College considers all applications for employment from disabled persons, bearing in mind the aptitudes of theindividuals concerned. Where an existing employee becomes disabled, every effort is made to ensure that employmentwith the College continues. The College’s policy is to provide training, career development and opportunities forpromotion that are, as far as possible, identical to those for other employees.


Example College

Council Report (continued)

Council MembersThe members of the College Council during 20XE are as follows:

Name Date of appointment Date of resignation

E Murphy 1 January 20XB -

T Hanks 1 May 20XC 31 May 20XE

T Kzee (Chairman) # 1 December 20XD -

J Bloggs * # 1 September 20XD -

J Jackson * 1 February 20XA

J Soap 1 October 20XD

Y Chaka–Chaka # 1 October 20XE

U Geller * 1 June 20XE -

* Member of the Audit Committee

# Member of the Finance Committee

________________________Chairman31 March 20XF


Example College

Corporate Governance ReportThe College is committed to exhibiting best practice in all aspects of corporate governance. This summary describes themanner in which the College has applied the principles set out in the King II Report. Its purpose is to help the reader ofthe accounts understand how the principles have been applied.

The College complies with all the provisions of the King II Report in so far as they apply to the Further Education andTraining Sector, and it has complied throughout the year ended 31 December 20XE.

The CollegeThe composition of the Council is set out on page 125. It is the Council’s responsibility to bring independent judgementto bear on issues of strategy, performance, resources and standards of conduct.

The College is provided with regular and timely information on the overall financial performance of the College togetherwith other information such as performance against funding targets, proposed capital expenditure, quality matters andpersonnel related matters such as health and safety and environmental issues. The Council meets each term. (quarterly)

The College conducts its business through a number of committees. Each committee has terms of reference, which havebeen approved by the Council. The committees currently in place are finance, remuneration and audit.

All Council members are able to take independent professional advice in furtherance of their duties at the College’sexpense and have access to the Secretary of the College, who is responsible to the Council for ensuring compliance withall applicable procedures and regulations. The appointment, evaluation and removal of the Secretary are matters for theCollege as a whole.

Formal agendas, papers and reports are supplied to Council members in a timely manner, prior to Council meetings.Briefings are also provided on an ad-hoc basis where necessary.

The College has a strong and independent non-executive element and no individual or group dominates its decisionmaking process. The College considers that each of its non-executive Council members is independent of managementand free from any business or other relationship, which could materially interfere with the exercise of their independentjudgement.

There is a clear division of responsibility in that the roles of the Chairman and Principal are separate.

Audit CommitteeThe Audit Committee comprises of three Council members (excluding the Principal and Chair). The committee operatesin accordance with written terms of reference approved by the Council.

The Audit Committee meets on a quarterly basis and provides a forum for reporting by the College’s internal and externalauditors, who have access to the Committee for independent discussion, without the presence of College management.The Committee also receives and considers reports from the National and Provincial Departments of Education as theyaffect the College’s business.

The College’s internal auditors monitor the systems of internal control, risk management controls and governanceprocesses in accordance with an agreed plan of input and report their findings to management and the Audit Committee.Management is responsible for the implementation of agreed recommendations and internal audit undertake periodicfollow up reviews to ensure that such recommendations have been implemented.

The Audit Committee also advises the College on the appointment of internal and external statements auditors and theirremuneration for both audit and non-audit work.

Internal ControlThe Council is ultimately responsible for the College’s system of internal control and for reviewing its effectiveness.However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, andcan provide only reasonable, not absolute assurance, against material mis-statement or loss.

The Council has delegated to the Principal, as Accounting Officer, the day-to-day responsibility for reviewing theadequacy of the system of internal financial control and making any appropriate amendments. He/she is also responsiblefor reporting to the Council any material weaknesses or breakdowns in internal financial control.

[The Council is of the view that there is a formal ongoing process for identifying, evaluating and managing the College's


Example College

Corporate governance report (continued)

significant risks that has been in place and operational for the period from the beginning of January 20XE up to the dateof approval of the annual report and accounts. The College regularly reviews this process. The Council are unable to state that a formalised process has been in place for the first five months of the year, as this period was needed to put in placethe procedures, which the College agreed should be established].

The College expects to be able to make a full statement on its corporate governance policy, its review of risks and thesystems put in place to mitigate those risks in its report for the year to 31 December 20XF.

Going ConcernAfter making appropriate enquiries, the Council considers that the College has adequate resources to continue inoperational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparingthe financial statements.

_____________________________ Principal

_____________________________ Chairman of the College Council


Example College

Income statementFor the year ended 31 December 20XE

Note 20XE 20XD

R R

Revenue 557 904 428 831

Employment costs (35 894) (30 420)

Depreciation (39 943) (26 792)

Other operating expenses (448 988) (341 028)

Surplus from operations 2 33 079 30 591

Finance costs 3 (2 562) (1 874)

Investment income 4 2 589 1 897

Net surplus for the year 33 106 30 614


Example College

Balance sheetAs at 31 December 20XE

Note 20XE 20XDR R

AssetsNon-current assetsProperty, equipment and vehicles 5 85 920 59 456Intangible assets 6 10 542 8 980Investments 7 4 386 2 578

100 848 71 014

Current assetsInventories 8 17 143 11 037Accounts receivable 9 28 413 26 401Cash and cash equivalents 10 29 509 14 022

75 065 51 460

Total assets 175 913 122 474

Equity and liabilitiesCapital and reservesRetained funds 104 560 69 448

Retained earnings and reserves 104 560 69 448

Non-current liabilitiesInterest bearing loans and borrowings 11 18 000 24 500Provisions 12 4 456 3 984Employee Benefits 13 360 1 474Government grants 14 16 308 8 800

39 124 38 758

Current liabilitiesAccounts payable 15 32 229 14 268Bank overdraft 10 - -

32 229 14 268

Total equity and liabilities 175 913 122 474


Example College

Statement of changes in equityfor the year ended 31 December 20XE

Other reservesGeneral Revaluation Retained Totalreserve reserve earnings

Balance at 1 January 20XD - 38 834 38 834

Surplus on revaluation of land - -

Net surplus for the year - - 30 614 30 614

Transfer to general reserve - -

Balance at 31 December 20XD 69 448 69 448

Balance at 1 January 20XE 69 448 69 448

Change in accounting policy (refer 17) - - 2 006 2 006

Restated opening balance 71 454 71 454

Transfer to retained income - -

Net surplus for the year - - 33 106 33 106

Balance at 31 December 20XE 104 560 104 560


Example College

Cash flow statementfor the year ended 31 December 20XE

Note 20XE 20XD

R R

Cash generated by operations 22 87 307 57 692

Interest received 2 589 1 897

Interest paid (2 562) (1 874)

Net cash inflow from operating activities 87 344 57 715

Cash flows from investing activities

Acquisition of investments (1 808) -

Acquisition of intangible assets (2 020) -

Proceeds from disposal of property,

equipment and vehicles 13 869 15 976

Acquisition of property, equipment and vehicles (82 906) (6 842)

- Replacements (51 121) (4 234)

- Additions (31 785) (2 608)

Net cash (outflow)/inflow from investing

activities (72 865) 9 134

Cash flows from financing activities

Long term liabilities repaid (5 495) (12 784)

Repayment of finance lease liabilities (1 005) (1 005)

Grant received from the government 7 508 -

Net cash (outflow)/inflow from financing

activities 1 008 (13 789)

Net (decrease)/increase in cash and

cash equivalents 15 487 53 060

Cash and cash equivalents at beginning of year 14 022 (39 038)

Effect of exchange rate fluctuations on cash held - -

Cash and cash equivalents at end of year 10 29 509 14 022


Example College

Notes to the financial statementsfor the year ended 31 December 20XE

1. Accounting policiesThe financial statements incorporate the principal accounting policies set out below, which are consistent with thoseadopted in the previous financial year, except as referred to in note 17.

1.1 Statement of complianceThe financial statements have been prepared in accordance with the Further Education and Training Act no. 98, 1998.

The College is not required to comply with Generally Accepted Accounting Practice. However these financial statements areprepared in accordance with South African Statements of Generally Accepted Accounting Practice and the requirements of theSouth African Companies Act.

1.2 Basis of preparationThe financial statements are prepared on the historical cost basis, except for land and buildings carried at revaluedamounts, investment properties, financial instruments and recognised assets and liabilities that are hedged.

1.3 Property, equipment and vehiclesLand and buildings are stated at fair value. Sworn appraisers revalue these items at least once every three years using theopen market value basis in continuation of existing use for land and buildings,

Any surplus on revaluation, in excess of net book value, is transferred to a revaluation reserve. Surpluses on revaluation arerecognised as income to the extent that they reverse revaluation decreases of the same assets recognised as expenses inprevious periods. Deficits on revaluation are charged directly against the revaluation reserves only to the extent that thedecrease does not exceed the amount held in the revaluation reserve in respect of that same asset. Other deficits arerecognised as expenses.

Other items of property, equipment and vehicles are stated at historical cost less accumulated depreciation andaccumulated impairment losses. The cost of self-constructed assets includes the cost of materials, direct labour and anappropriate proportion of production overheads. Cost also includes site restoration costs that are recognised as a liability.

Where an item of property, equipment and vehicles comprises major components with different useful lives, thecomponents are accounted for as separate items of property, equipment and vehicles.

Depreciation is provided on the straight-line basis, over the estimated useful lives of assets. Depreciation is not providedon land or on buildings classified as investment properties.

An amount equal to the depreciation on revaluation surpluses attributable to depreciable revalued assets is transferredfrom the non-distributable reserve to retained income at year-end.

Subsequent expenditure relating to an item of property, equipment and vehicles is capitalised when it is probable thatfuture economic benefits from the use of asset will be increased. All other subsequent expenditure is recognised as anexpense in the period in which it is incurred.

Surpluses (deficits) on the disposal of property, equipment and vehicles are credited (charged) to income. The surplus ordeficit is the difference between the net disposal proceeds and the carrying amount of the asset.

Borrowing costs that are directly attributable to qualifying assets are capitalised. Qualifying assets are those thatnecessarily take a substantial period of time to prepare for their intended use or sale. Capitalisation continues up to thedate that the assets are substantially complete. Capitalisation is suspended during extended periods in which activedevelopment is interrupted.

1.4 Leases

Finance leasesLeases that transfer substantially all the risks and rewards of ownership of the underlying asset to the College are classifiedas finance leases. Assets acquired in terms of finance leases are capitalised at the lower of fair value and the present valueof the minimum lease payments at inception of the lease, and depreciated over the estimated useful life of the asset. Thecapital element of future obligations under the leases is included as a liability in the balance sheet. Lease payments areallocated using the effective interest rate method to determine the lease finance cost, which is charged against incomeover the lease period, and the capital repayment, which reduces the liability to the lessor.


Example College

Operating leasesLeases where the lessor retains the risks and rewards of ownership of the underlying asset are classified as operatingleases. Payments made under operating leases are charged against income on a straight-line basis over the period of thelease.

Sale and leasebackWhere a sale and leaseback transaction results in a finance lease, any excess of sale proceeds over the carrying amount isdeferred and recognised in income over the term of the lease.

1.5 Intangible assetsExpenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge andunderstanding, and expenditure on internally generated goodwill and brands is recognised in the income statement as anexpense as incurred.

Expenditure on development activities, whereby research findings are applied to a plan or design for the production ofnew or substantially improved products and processes, is capitalised if the product or process is technically andcommercially feasible and the College has sufficient resources to complete development. The expenditure capitalisedincludes the cost of materials, direct labour and an appropriate proportion of overheads. Other development expenditureis recognised in the income statement as an expense as incurred. Capitalised development expenditure is stated at costless accumulated amortisation and impairment losses.

Other intangible assets acquired by the College are stated at cost less accumulated amortisation and impairment losses. Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefitsembodied in the specific asset to which it relates. All other subsequent expenditure is expensed as incurred.Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of intangibleassets.

The difference between the net disposal proceeds and the carrying amount of an intangible asset is the gain or loss ondisposal of that asset. These gains and losses are recognised in income.

1.6 ImpairmentThe carrying amounts of the College’s assets are reviewed at each balance sheet date to determine whether there is anyindication of impairment. If there is any indication that an asset may be impaired, its recoverable amount is estimated.The recoverable amount is the higher of its net selling price and its value in use. For intangible assets that are not yetavailable for use, or goodwill or intangible assets amortised over a period exceeding 20 years, the recoverable amount isestimated at each balance sheet date.

In assessing value in use, the expected future cash flows from the asset are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

For an asset that does not generate cash inflows that are largely independent of those from other assets the recoverableamount is determined for the cash-generating unit to which the asset belongs. An impairment loss is recognised in theincome statement whenever the carrying amount of the cash-generating unit exceeds its recoverable amount.

A previously recognised impairment loss is reversed if the recoverable amount increases as a result of a change in theestimates used to determine the recoverable amount, but not to an amount higher than the carrying amount that wouldhave been determined (net of depreciation) had no impairment loss been recognised in prior years. For goodwill arecognised impairment loss is not reversed, unless the impairment loss was caused by a specific external event of anexceptional nature that is not expected to recur and the increase relates clearly to the reversal of the effect of that specificevent.

1.7 Financial instrumentsFinancial instruments carried on the balance sheet include investments, cash on hand and in bank balances (cash andcash equivalents) and receivables.

1.7.1 MeasurementFinancial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial recognitionthese instruments are measured as set out below.

InvestmentsListed investments classified as available-for-sale financial assets are carried at market value, which is calculated by reference tostock exchange quoted selling prices at the close of business on the balance sheet date. Unlisted investments


Example CollegeFinancial instruments (continued)

are shown at fair value, unless their fair value cannot be reliably determined, in which case they are shown at cost lessaccumulated impairment losses.

Investments that meet the criteria for classification as held-to-maturity financial assets are carried at amortised cost.

Accounts receivableTrade receivables originated by the College are stated at amortised cost except where the timeframe relating to thereceipt of payment would result in the adjustment to be made to be insignificant. In these instances trade debtors arestated at cost less provision for doubtful debts.

Cash and cash equivalentsCash and cash equivalents are measured at fair value, based on the relevant exchange rates at balance sheet date.

Accounts payable and financial liabilitiesNon-derivative financial liabilities are recognised at amortised cost, comprising original debt principal payments andamortisations.

Derivative instrumentsDerivative instruments are measured at fair value.

1.7.2 Gains and losses on subsequent measurementGains and losses arising from a change in the fair value of financial instruments that are not part of a hedging relationshipare included in net surplus or loss in the period in which the change arises.

Gains and losses from measuring the hedging instruments relating to a fair value hedge at fair value are recognisedimmediately in net surplus or loss.

Gains and losses from remeasuring the hedging instruments relating to a cash flow hedge to fair value are initiallyrecognised directly in equity. If the hedged firm commitment or forecast transaction results in the recognition of an assetor a liability, the cumulative amount recognised in equity up to the transaction date is adjusted against the initialmeasurement of the asset or liability. For other cash flow hedges, the cumulative amount recognised in equity is includedin net surplus or loss in the period when the commitment or forecast transaction affects surplus or loss.

Where the hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur,the cumulative unrealised gain or loss at that point remains in equity and is recognised in accordance with the abovepolicy when the transaction occurs. If the hedged transaction is no longer expected to occur, the cumulative unrealisedgain or loss is recognised in the income statement immediately.

1.7.3 OffsetFinancial assets and financial liabilities are offset and the net amount reported in the balance sheet when the College hasa legally enforceable right to set off the recognised amounts, and intends either to settle on a net basis, or to realise theasset and settle the liability simultaneously.

1.8 RevenueRevenue comprises class fees, investment income and other non-operating income. Class fees are recognised whenreceived.

Contract revenue comprises the value of work performed excluding work performed by sub-contractors and includingretentions relating to own work performed. Contract revenue is recognised on the stage of completion method.

1.9 Investment income

Interest is recognised on a time proportion basis taking account of the principal outstanding and the effective rate over theperiod to maturity when it is probable that such income will accrue to the College.

Dividends are recognised when the right to receive payment is established.

1.10 Other income

Operating lease incomeIncome from operating leases in respect of investment property is recognised in the income statement on a straightlinebasis over the term of the lease. Lease incentives granted are recognised as an integral part of the lease income.


Example College

Commission incomeWhere individual campuses act as agents and are remunerated on a commission basis, only the commission income, andnot the value of the business handled, is included in revenue.

1.11 Tax

The College is exempt from tax in terms of Section 10 (1) (cN) of the Income Tax Act.

1.12 Foreign currency

Foreign currency transactionsTransactions in foreign currencies are recorded at the rate of exchange ruling at the transaction date. Monetary assets andliabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Gainsand losses arising on translation are credited to or charged against income.

1.13 ProvisionsProvisions are recognised when the College has a present legal or constructive obligation as a result of past events, forwhich it is probable that an outflow of economic benefits will occur, and where a reliable estimate can be made of theamount of the obligation.

Where the effect of discounting is material, provisions are discounted. The discount rate used is a pre-tax rate that reflectscurrent market assessments of the time value of money and, where appropriate, the risks specific to the liability.

WarrantiesA provision for warranties is recognised when the underlying products or services are sold. The provision is based onhistorical warranty data and a weighting of all possible outcomes against their associated probabilities.

RestructuringA provision for restructuring is recognised when the College has approved a detailed and formal restructuring plan, andthe restructuring has either commenced or has been announced publicly. Costs relating to ongoing activities are notprovided for.

Site restorationIn accordance with the College’s published environmental policy and applicable legal requirements, a provision for siterestoration in respect of contaminated land is recognised when the land is contaminated.

Onerous contractsA provision for onerous contracts is recognised when the expected benefits to be derived by the College from a contractare lower than the unavoidable cost of meeting the obligations under the contract.

1.14 Employee benefits

Short-term employee benefitsThe cost of all short-term employee benefits is recognised during the period in which the employee renders the relatedservice.

The provisions for employee entitlements to wages, salaries, annual and sick leave represent the amount, which theCollege has, a present obligation to pay as a result of employees’ services provided to the balance sheet date. Theprovisions have been calculated at undiscounted amounts based on current wage and salary rates.

Long-term employee benefitsThe liability for employees’ entitlements to long service leave represents the present value of the estimated future cashoutflows resulting from employees’ services provided to the balance sheet date.

In determining the liability for employee benefits, consideration has been given to future increases in wage and salaryrates, and the College’s experience with staff turnover.

Liabilities for employee benefits, which are not expected to be settled within 12 months, are discounted using the marketyields, at the balance sheet date, on high quality bonds with terms, which most closely match the terms of maturity ofthe related liabilities.

Retirement benefitsThe College contributes to several defined benefit and defined contribution plans. Contributions to defined contribution funds are charged against income as incurred.


Example College

Employee benefits (continued)

The Projected Unit Credit Method is used to determine the present value of the defined benefit obligations and the relatedcurrent service cost and, where applicable, past service cost.

Actuarial gains or losses in respect of defined benefit plans are recognised as income or expense if the net cumulativeunrecognised actuarial gains and losses at the end of the previous reporting period exceeded the greater of:

■ 10% of the present value of the defined benefit obligation at that date before deducting plan assets, and

■ 10% of the fair value of any plan assets at that date.

The amount recognised is the excess determined above, divided by the expected average remaining working lives of theemployees participating in that plan.

Past service costs are recognised as an expense on a straight-line basis over the average period until the benefits become vested.To the extent that the benefits are already vested, past service costs are recognised immediately.

1.15 InventoriesInventories are carried at the lower of cost and net realisable value. The cost of inventories comprises all costs of purchase,conversion and other costs incurred in bringing the inventories to their present location and condition, and is determinedusing the first-in, first-out method. The cost of work in progress, finished goods and contracts in progress includes directcosts and an appropriate allocation of overheads based on normal production levels. Obsolete, redundant and slowmoving inventories are identified on a regular basis and are written down to their estimated net realisable values.

Inventory consists of trading stock for the bookshop and consumables, such as building materials, which will be utilisedwithin the respective training courses presented by the College. These consumables are expensed as and when incurred.

1.16 Cash and cash equivalentsFor the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held on call withbanks, and investments in money market instruments, net of bank overdrafts, all of which are available for use by theCollege unless otherwise stated.

1.17 Discontinuing operations

A discontinuing operation results from the sale or abandonment of an operation that represents a separate major line ofbusiness and of which the assets, net surplus or loss and activities can be distinguished physically, operationally and for financial reporting purposes.

1.18 Investment propertiesInvestment properties are properties held for the purposes of earning rental income or for capital appreciation, and areinitially recorded at cost, and subsequently stated at fair value as determined on an annual basis by an independentregistered valuator, using the net rental value method. Any gain or loss arising from a change in the fair value of theinvestment property is included in net surplus or loss for the period in which it arises.Notes to the financial statements (continued)for the year ended 31 December 20XE

Investment property under construction is measured at cost.

Gains or losses on the disposal of investment properties are recognised in net surplus or loss, and are calculated as thedifference between the sale price and the fair value of the property. Investment properties are not depreciated.

1.19 Government grantsGovernment grants, including non-monetary grants, are recognised at fair value when there is reasonable assurance thatthe conditions attached to them will be complied with and that the grant will be received. Government grants arerecognised as income over the periods necessary to match them to the related costs on a systematic basis.

Government grants received as compensation for expenses or losses already incurred or for the purpose of givingimmediate financial support with no future related costs are recognised as income in the period in which they becomereceivable.

1.20 Comparative figuresWhere necessary, comparative figures have been reclassified.


Example College2. Surplus from operations

20XE 20XDIs arrived at after taking into account R R

Amortisation 458 913– patents, trademarks and brands 139 440– license agreements 319 319– models, design and prototypes – 154

Auditors remuneration 15 500 12 500– audit fee 10 000 8 000– expenses 500 500– other services 5 000 4 000

Depreciation of property, equipment and vehicles 39 943 26 792– buildings 1 032 986– computer equipment 7 042 2 813– vehicles 8 939 7 381– machinery 18 930 11 612– capitalised leased assets 4 000 4 000– furniture and fittings – –

Loss on disposal of property, equipment and vehicles 2 336 76

Operating lease charges 2 427 2 160– buildings 791 642– equipment 1 422 1 320– machinery 214 198

Remuneration other than to employees for 115 102– managerial services 47 42– technical services 45 38– secretarial services 13 12– administrative services 10 10

Research and development expenditure 827 810

Write down of inventories to net realisable value 42 22

Rental income 710 674

3. Finance costs

Finance charges on finance leases (1 260) (1 350)Interest paid (1 302) (524)

(2 562) (1 874)

4. Investment Income

Bank Interest received 1 038 40

Income from other investmentsListed 1 489 1 432Unlisted 62 425

2 589 1 897


Example College5. Property, equipment and vehicles

5.1 MovementsDepreciation rate Cost or Accumulated Carrying

valuation depreciation amount% R R R

20XE

Land – 11 822 – 11 822

Buildings 5,0 6 918 (1 032) 5 886

Computer equipment 33,3 24 660 (8 700) 15 960

Computer software 33,3 – – –

Machinery 20,0 94 682 (49 662) 45 020

Vehicles 25,0 32 401 (25 169) 7 232

Furniture and fittings 20,0 – – –

170 483 (84 563) 85 920

20XD

Land – 8 222 – 8 222

Buildings 5,0 14 178 (1 560) 12 618

Computer equipment 33,3 8 450 (1 748) 6 702

Computer software 33,3 – – –

Machinery 20,0 60 760 (32 131) 28 629

Vehicles 25,0 19 515 (16 230) 3 285

Furniture and fittings 20,0 – – –

111 125 (51 669) 59 456

Land Buildings Computer Machinery Vehicles Furniture TotalEquipment & and fittings

softwareR R R R R R R

20XECarrying amount at

beginning of year 11 822 9 018 6 702 28 629 3 285 – 59 456

Additions 25 764 43 962 12 886 – 82 612

Disposals (2 100) (9 464) (4 641) (16 205)

Depreciation (1 032) (7 042) (22 930) (8 939) – (39 943)

Carrying amount at

end of year 11 822 5 886 15 960 45 020 7 232 – 85 920

Land Buildings Computer Machinery Vehicles Furniture TotalEquipment & and fittings

softwareR R R R R R R

20XDCarrying amount at

beginning of year 11 822 10 004 8 616 40 072 10 377 – 81 291

Additions 1 543 4 311 988 6 842

Disposals (644) (542) (699) (1 885)

Depreciation (986) (2 813) (15 612) (7 381) (26 792)

Carrying amount

at end of year 11 822 9 018 6 702 28 629 3 285 – 59 456


Example CollegeProperty, equipment and vehicles (continued)

5.2 Impairment of property, equipment and vehicles

An impairment loss has been recognised against the College’s computer equipment since advances in technology has caused the recoverable amount of the computer equipment to drop below its carrying amount.

5.3 Capitalised leased assets

Included in fixed assets are the following capitalised leased assets:

Depreciation Cost or Accumulated Carrying rate valuation depreciation amount

% R R R

20XEMachinery 20.0 15 000 (6 500) 8 500

Vehicles 25.0 5 000 (2 500) 2 500

20 000 (9 000) 11 000

20XDMachinery 20.0 15 000 (3 611) 11 389

Vehicles 25.0 5 000 (1 389) 3 611

20 000 (5 000) 15 000

Capitalised leased assets are encumbered in terms of finance lease agreements (see note 10).

5.4 ValuationsLand, buildings and investment properties comprise of the following properties that were independently valued duringJuly 20XD, on the basis of open market value for existing use. Valuations are performed every three years.

20XE 20XDR R

Cost Carrying amount Cost Carrying amount

Stand 86, Upper Town 7 530 8 222 5 656 8 222

Plot 567, Middle Town 4 449 5 886 7 779 9 018

Stand 101, Lower Town 3 386 3 600 2 580 3 600

15 365 17 708 16 015 20 840

Land and buildings with a book value of R14 800 (20XD – R9 800) are encumbered (see note 10).

6. Intangible assetsAmortisation Cost or Accumulated Carrying

rate valuation amortisation amountand impairment

losses% R R R

20XE

Purchased intangible assets- patents, trademarks and brands 20.0 3 830 (733) 3 097

- license agreements 7.0 3 200 (769) 2 431

Internally-generated intangible assets- models, designs and prototypes 6.7 3 314 - 3 314

- computer software under development 1 700 - 1 70012 044 (1 502) 10 542


Example CollegeIntangible assets (continued)

Amortisation Cost or Accumulated Carryingrate valuation amortisation amount

and impairmentlosses

20XD

Purchased intangible assets- patents, trademarks and brands 20.0 3 676 (440) 3 236- license agreements 7.0 3 200 (450) 2 750

Internally-generated intangible assets

- models, designs and prototypes 6.7 3 148 (154) 2 994

10 024 (1 044) 8 980

Reconciliation of carrying amounts

Patents License Models Computer Totaltrademarks agreements designs and software

brands prototypes underdevelopments

R R R R R20XECarrying amount at beginning of year 3 236 2 750 2 994 - 8 980Additions - - 717 1 700 2 413Amortisation (139) (319) - - (397)Impairments - (397) - -Carrying amount at end of year 3 097 2 431 3 314 1 700 10 542

20XDCarrying amount at beginning of year 3 676 3 069 3 148 - 9 893Additions - - - - -Amortisation (440) (319) (154) - (913)Impairments - - - - -Carrying amount at end of year 3 236 2 750 2 994 - 8 980

Impaired intangible assets

The models were impaired due to advances in the academic industry, and an impairment loss of R397 000 has been recognised.The remaining estimated useful life of the patents has been reduced to five years. The change in estimate had no financial effecton the current year’s results as this revision of the useful life was made at the end of the year.


Example College

7. Investments20XE 20XD

R RListedShares at market value 2 686 578

UnlistedShares at cost less amounts written off 1 700 2 000

4 386 2 578

College Council’s valuation of investments 4 386 3 200

The fair value of these shares could not be reliably determined as the share is not traded and a reliable estimate of a discountrate for calculating discounted future cash flows could not be made due to the volatility of the Information technology sector.Assuming a discount rate of 20% to 30%, the present value of the future expected cash flows from normal operatingactivities is between RXXX and RXXX.

Principal Effective Number ofActivity holding Shares held

List of investments 20XE 20XD 20XE 20XD

Listed

Industrial Components Ltd Components 1,8 1,8 1 075 1 075

Total Electronics Ltd Electronics 3,2 3,2 2 100 2 100

UnlistedInnovative Technologies (Pty) Ltd Research 100,0 100,0 100 100

Joint VentureComponent Specialists (Pty) Ltd Training 50,0 50,0 2 225 2 225

8. Inventories

20XE 20XD

R RConsumable stores 3 389 1 674Workshop goods –

– at cost 10 491 7 006

– at net realizable value 3 263 2 357

17 143 11 037

9. Accounts receivableStudent fees 103 011 168 222

Salary advancements / staff housing loans 13 052 5 298

Prepaid expenses 16 312 5 346

Project fees 25 900 -

Amounts due from contract workers 11 684 8 260

Other debtors 4 688 2 467174 647 189 593

Provision for doubtful debts (146 234) (163 192)

28 413 26 401

Housing loans have been made to the following College council employees. These are unsecured and bear interest at12,0% (20xD – 14,0%) per annum. These amounts are repayable no later than six months after retirement, retrenchmentor death.


Example College

Accounts receivable (continued)

Balance Balance20XD Advanced Repaid 20XE

R R R R

J Smith – 1 500 – 1 500

S Jackson 1 000 – (300) 700

Y Ndube – 800 (100) 700

1 000 2 300 (400) 2 900

10. Cash and cash equivalents20XE 20XD

R R

Bank account 18 509 8 022

Petty cash 3 000 2 000

Deposits 8 000 4 000

29 509 14 022

11. Long term liabilities

Secured –Loan, bearing interest at 13,5% (20xD – 14,0%) per annum, secured by first mortgage over land and buildings with a book value of R14 800 (20xD – R98 000). The loan is repayable in four equal annual instalments of R2 500 commencing on 30 June 20xD. 7 500 10 000

Finance lease obligations capitalised at an effective rate of 14% (20xD – 15%). The lease term is 15 years with 9 years to run. These liabilities are secured by instalment lease agreements over assets with a net book value of R11 000 (20xD – R15 000) (see note 5). Monthly repayments are R125. 13 545 15 050

Unsecured –Bank loans, bearing interest at 16,2% (20XD – 17,5%) per annum, with no fixed 960 3 455terms of repayment.

22 005 28 505

LessCurrent portion included in accounts payable 4 005 4 005

Loans 3 000 3 000

Finance leases 1 005 1 005

Long term liabilities 18 000 24 500

Details of borrowings are as follows –

Long term 18 000 24 500

Short term 4 005 4 005

Utilised borrowing facilities 22 005 28 505

Unutilised borrowing facilities 23 995 12 495

Total borrowing facilities 46 000 41 000


Example CollegeLong term liabilities (continued)

11.1 Finance lease obligationsThe College leases property, equipment and vehicles in terms of finance leases. In terms of the lease agreements, theCollege has the option to acquire ownership of the property, equipment and vehicles for a nominal payment at the endof the lease.

20XE 20XDR R

ReconciliationTotal minimum lease payments

13 545 15 050

Less: finance charges (5 867) (6 972)

Present value of finance lease obligation 7 678 8 078

Total minimum lease payments Present value at balance sheet date

20XE 20XD 20XE 20XD

R R R R

Not later than 1 year 1 505 1 505 459 399

Between 1 and 5 years 6 020 6 020 2 630 2 289

Later than 5 years 6 020 7 525 459 5 390

13 545 15 050 7 678 8 078

12. Provisions

Post-retirement Warranties Totalmedical aid benefits

R R R

Balance at 1 January 20XE 2 987 997 3 984

Provisions made during the year 1 426 1 072 2 498

Provisions used during the year (411) (439) (850)

Balance at 31 December 20XE 4 002 1 630 5 632

Less current portion included in

current liabilities (512) (664) (1 176)

Total non-current provisions 3 490 966 (4 456)

12.1 Post employment medical aid benefits The College provides for post employment medical aid benefits in respect of retired employees. The present value of theprovision at 31 December 20XE, as determined by an actuarial valuation, was R4 613. The provision is expected to beutilised over 8 years.

12.2 WarrantiesThe College makes provisions for warranties on the sales of robots to customers. The provision for warranty claims of R1 630 as at 31 December 20XE was raised for expected warranty claims on products sold during the last five years, asthe College provides 5-year warranties for the products manufactured. The provision has been calculated by weighting allpossible outcomes by their associated probabilities, as derived from past experience.


Example College

13. Employee benefitsCurrently staff members of the College contribute to a private fund or Government fund, however if the situation changes in thefuture, this is the manner in which the College will account for employee benefits.

The College provides retirement benefits for all its permanent employees through a funded defined benefit pensionscheme that is subject to the Pension Funds Act, 1956 as amended.

Employee benefit obligations

Amounts recognised in the balance sheet

Defined benefit pension plan20XE 20XD

R R

Present value of funded obligations 6 798 6 135

Fair value of plan assets (6 617) (5 831)

181 304

Present value of unfunded obligations 3 567 3 191

Unrecognised actuarial (losses) gains (54) (9)

Unrecognised past service cost (248) (338)

Net liability in balance sheet 3 446 3 148

Amounts recognised in the income statementCurrent service cost 927 810

Interest on obligation 1 044 860

Expected return on plan assets (769) (619)

Net actuarial losses (gains) recognised during the year 50 (97)

Past service cost 110 104

Losses (gains) on curtailments and settlements 122 (25)

Total, included in employee remuneration costs 1 484 1 033

Actual return on plan assets 1 132 897

Defined benefit pension plans Post-employment medical benefits20XE 20XD 20XE 20XD

R R R R

Movements in the net liability recognised in

the balance sheet are as followsNet liability at beginning of the year 3 336 3 036 3 022 2 835

Net expense recognised in the

income statement 1 484 1 033 552 443

Contributions (1 249) (1 036) (520) (426)

Exchange differences on foreign plan (6 265) (4 411) - -

Net liability at end of the year (2 694) (1 378) 3 054 2 852

Defined benefit pension plan20XE 20XD

R RPrincipal actuarial assumptions at the balance sheet date (expressed as weighted averages)

Discount rate at 31 December 10% 9%

Expected return on plan assets at 31 December 12% 10%

Future salary increases 5% 4%

Future pension increases 3% 2%

Proportion of employees opting for early retirement 30% 30%

Annual increase in health care costs 8% 8%

The defined benefit plans are actuarially valued every two years.


Example College

14. Government grants

The College should disclose the details of all the grants received during the year.

Unfulfilled conditions and other contingencies attaching to government assistance that has been recognised in the financialstatements should also be disclosed.

20XE 20XD

R R

Grants received from Provincial Department of Education

- Improvements to library 10 000 -

- Improvements to clinics 6 308 8 800

16 308 8 800

15. Accounts payable

Accruals/ Creditors 22 066 10 917

Amounts due to contract workers 2 247 1 764

Statutory salary adjustments 7 916 1 250

Income received in advance - 337

32 229 14 268

16. Capital commitments

Authorised

- contracted for 6 710 5 250

- not contracted fors 275 305

6 985 5 555

The proposed capital expenditure will be financed by additional government grants to be received in the future.

17. Change in accounting policy

The change in accounting policy arose from the adoption of AC 130, Provisions, contingent liabilities and contingent assets, which resulted in the restatement of the opening balance of retained earnings by R2 006.

18. Contingent liabilities

There are contingent liabilities in respect of– guarantees in respect of third party liabilities 40 30

– guarantees in respect of staff housing loans 750 940

790 970

In addition, a customer has brought legal action against the College for damages relating to the quality of education. The claim is for R96 400. The College has been advised that the claim is unlikely to be successful and accordingly no provision has been made.

Future operating lease charges for premises and office equipment

– payable within one year 2 478 2 231

– payable between 1 and 5 years 3 456 3 582

– payable after 5 years – –


Example CollegeContingent Liabilities (continued)

Contingent liabilities in respect of housing loans granted to council members which have been guaranteed by the College –

J Roberts 25 October 20XD 235 270

N Cage 20 December 20XD 120 170

M Branch 15 August 20XE 395 500

750 940

19. Non-cash transactions

The College entered into a finance lease during the current year, for 6 new vehicles. The lease requires a fixed payment of R62 500 per month, which includes an interest rate of prime plus 1%. The College has the option to purchase the vehicles atthe end of the lease for 2% of their market value at that date. There are no escalation clauses or restrictions on the lease.

20. Financial instrumentsThe College uses financial instruments as hedges for trade purchases and sales transactions with external parties, as well asfor the payment of the interest and capital portions on the foreign loans. Due to the volatility in exchange rates, the Collegealso hedges forecast transactions (cash flow hedges).

The principal or contract amounts of derivative financial instruments for sales and purchase transactions, and forecasttransactions at balance sheet date were:

20XE 20XDR R

Forward exchange contracts:– to pay 78 72

Hedges of forecast transactions Principal amount Estimated Hedgingtransaction date instrument

Forward exchange

Purchase of machinery 8 500 31 March 20XF contractRepayment of interest portion of long term loan 1 200 30 June 20XF Forward exchange

contract

Currency riskThe College incurs currency risk as a result of purchases, sales and borrowings in foreign currencies. The currencies inwhich the College primarily deals is UK Pounds.

College entities hedge all trade debtors, trade creditors and borrowings denominated in a foreign currency. They also takeout hedges over their estimated foreign currency exposure resulting from sales and purchases over the following sixmonth period.

Interest rate risk

The College generally adopts a policy of ensuring that its exposure to changes in interest rates is on a floating rate basis. Except in respect of the convertible notes, interest rate swaps are used to convert the interest on fixed rate borrowings to afloating rate. Interest rate options and futures are used to hedge repricing risk on floating rate borrowings.

Repricing analysisThe following table identifies the period in respect of those financial instruments that are sensitive to interest rate risk.

Effective Total 6 months 6-12 months 1-5 yearsinterest rate % or less

R R R R R

Housing loans 18,1 1 563 1 563 – –

Cash balances (net) 12,0 5 650 5 650 – –

Bank loans 16,2 1 920 – – 1 920

Finance lease liabilities 14,0 11 340 1 260 1 450 8 630


Example CollegeFinancial Instruments (continued)

Credit riskManagement has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Creditevaluations are performed on all students requiring credit over a certain amount. Reputable financial institutions are usedfor investing and cash handling purposes.

At balance sheet date there were no significant concentrations of credit risk.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Fair valueThe fair values of all financial instruments are substantially identical to carrying amounts reflected in the balance sheet,except for unlisted investments (see note 9).

21. Related parties21.1 Identity of related parties

The council members are listed in the councils’ report.

21.2 Material related party transactionsLoans to and from Council members - see note 9 and 15Members' emoluments - see note 2

The College provides the following services for no consideration:

– Secretarial services to certain College entities

– Use of offices for administration purposes to JA Mechanics (Pty) Ltd

During the year the College purchased vehicles for R11 000 from a business in which J Soap, one of the Council membersis a partner.

22. Notes to the cash flow statement

22.1 Cash generated by operations

20XE 20XD

R R

Income before interest and taxation 33 079 30 591

Adjustments for –Depreciation of property, equipment and vehicles 39 943 26 792

Amortisation of intangible assets 458 215

Loss on disposal of property, equipment and vehicles 2 336 76

Increase in provisions 1 648 -

Operating surplus before working capital changes 77 464 57 674

(Increase) / decrease in inventories (6 106) 818

(Increase) / decrease in accounts receivable (2 012) (3 568)

Increase / (decrease) in accounts payable 17 961 2 768

87 307 57 692

23. Post balance sheet eventsOn 28 February 20xF, three of the campuses in the South African cities of Upper Town, Middle Town and Lower Townwere closed for a period of 6 weeks due to a strike by the lecturers of the Tertiary Educators Workers Union (TEWU). It isestimated that the College lost class fees of about R60 000.

On 17 March 20xF, the shares of the Industrial Sector of the JSE declined in value by an average of 40%. The College’sinvestment in Industrial Components Limited dropped in value by 46%, resulting in an estimated loss of R500.


Example College

Detailed income statementfor the year ended 31 December 20XE

20XE 20XDR

Income 560 493 430 728

Student fees 501 321 397 678

Grants received 10 000 -

Donations received 12 500 8 000

Investment income 2 589 1 897

Surplus on sale of fixed assets - 674

Other income 34 083 22 479

Expenditure (527 387) (400 114)

Affiliation fees 19 489 17 199

Amortisation 458 913

Audit fees 15 500 12 500

Bad debts – –

Bursaries 12 195 9 252

College Council 11 530 11 193

Communication 40 623 28 843

Consumables 10 688 8 109

Depreciation 39 943 26 792

Employment costs 35 894 30 420

Interest paid 2 562 1 874

Insurance 30 976 8 327

Legal costs – –

Loss on disposal of fixed assets 2 236 76

Marketing 50 662 36 435

Operating lease charges: 2 427 2 160

- buildings 791 642

- equipment 1 422 1 320

- machinery 214 198

Printing 21 334 18 624

Programme development 8 827 2 810

Rates and taxes 27 162 22 733

Rental (buildings) 12 427 12 160

Repairs and maintenance 23 667 17 223

SRC 25 523 24 945

Staff development 24 419 23 352

Student support services 22 489 14 235

Travel and accommodation 29 755 17 400

Water and electricity 49 377 47 043

Other expenses 7 224 5 496

Net surplus for the year 33 106 30 614


6 Standardised chart of accountsIt is important to standardise the chart of accounts used by each campus site and collectively by the College. This will improvethe comparability between years, campus sites as well as Colleges.

Main category Sub category and description

1 Non current assets Resource controlled by the entity and will lead to an inflow ofeconomic benefits.

1.1 Fixed assets

(Property, equipment and vehicles)

1.1.1 Land and buildings ■ Gardens / grounds■ Premises / buildings■ Other

- Any other item underneath this class of transaction

1.1.2 Motor vehicles ■ Light utility vehicle & motor cars■ Motorcycles■ Tractors■ Bicycles

1.1.3 Furniture and fittings ■ Desks, chairs, tables, cupboards■ Crockery, curtaining etc■ Hostel furniture and fittings■ Other


1.1.4 Machinery and equipment ■ Photostat / fax machines■ Computer equipment (PC’s, laptops, printers)■ Computer software■ Workshop equipment■ Loose tools■ Kitchen equipment■ Laboratory equipment■ Other

- Any other item underneath this class of transaction1.2 Intangible assets ■ Patents, trademarks, brands

■ License agreements■ Models, designs and prototypes■ Software under development

1.3 Investments ■ Fixed deposits- The expenditure made to acquire an asset from which it is

intended to earn revenue (in this case interest)■ Loans to employees

- An amount owed by an employee to the College.■ Shares in other companies

- The expenditure made to acquire an asset (shares) from which it isintended to earn revenue (in this case dividends)

■ Money market investments- The expenditure made to acquire an asset from which it is

intended to earn revenue or some other benefit.■ Other


2 Current assets

2.1 Accounts receivable ■ Outstanding class fees- Outstanding fees relating to students who have obligations to pay

the College their class fees.■ Deposits paid

- An amount paid upfront in respect of a transaction which stillneeds to be completed (mostly in the following financial period.)

■ Prepaid expense- An expense paid for during the current period and written off as

an expense against revenue in the following period.■ Short-term advances to staff■ Other



2.2 Inventory ■ Text books- Textbooks held for resale or in the use of the business.

■ Stationery- Stationery held for resale or in the use of the business.

■ Consumables - Consumable items and stores for use by the College or in theprocess of instruction.

■ Other- Any other item underneath this class of transaction

2.3 Cash and cash equivalents ■ Bank accounts- Current accounts were in the company’s cash are held. Payments

and receipts are done from these accounts.■ Petty cash

- Ready cash on hand held for making cash payments of smallamounts.

■ Fixed deposits- Money set aside for future use, with a banking institution.


3 Reserves ■ Retained income- The net profit of the College, which has not been distributed by

way of dividends to members.■ “Non distributable” reserves

- Of a College, which in terms of Council decisions will not beutilised in the operations of the College.

4 Non current liabilities

4.1 Interest bearing borrowings - An amount owed to an external party which is not due to be paidwithin the next 12 months and which bears interest.

4.2 Government grants - Amounts received from Government, for specific use and yet utilisedby the College

4.3 Provisions - Amounts set aside out of profits for a specific purpose

5 Current liabilities

5.1 Trade payables - Amounts payable for goods or services to the College.

5.2 Grants payable - Payment regarding grants from the government, which should berepaid.

5.3 Bank overdraft - An unfavourable balance of a current bank account.

5.4 Funds received in advance - Funds received from students or other third parties that only relatesto the following year and are thus received in advance.

5.5 Short-term portion of long term interest - The short-term portion of an amount owed to an external party,borrowing bearings which is expected to be settled within the next 12 months.


Main category Sub category and description

1 Income1.1 Class fees ■ Class fees – Art

- Fees received from art students for payment of class fees■ Class fees – Business studies

- Fees received from business studies students for payment of classfees.

■ Class fees – Cosmetology- Fees received from cosmetology students for payment of class fees

■ Class fees – Educare- Fees received from educare students for payment of class fees.

■ Class fees – Engineering studies- Fees received from engineering students for payment of class fees.

■ Class fees – General Studies- Fees received from general study students for payment of class

fees■ Class fees – Tourism/ Hospitality

- Fees received from tourism/hospitality students for payment ofclass fees

■ Class fees – Unspecified- Fees received from students for payment of class fees.

■ Application and registration fees- Fees received from students for registration at the beginning of

the College year.■ Examination fees

- Fees received from students in order to write exams.■ ABET class fees

- Fees received from the Adult Based Education and Training■ Class fees other


1.2 Grants received ■ Government grants- Income or assets received from the government in order to use

these funds for specific purposes subscribed by the government.■ Skills training grants

- Income received for specific use of the training of students.■ Grants – other

- Any other item underneath this class of transaction■ Sponsorships received

- Amounts received from third parties in respect of sponsorships.

■ Donations received- Amounts received from third parties in respect of donations.

■ Bursaries- Income received from institutions for a specific purpose, usually to

provide money to students as reward for good academic results.

1.3 Investment income ■ Interest received- Interest received regarding investments or loans to 3rd parties.

■ Dividends received- An amount or assets received from a company in which the

College holds shares.

1.4 Profit on sale of fixed assets ■ Profit on sale of fixed assets- The excess of the selling price above the book value of the asset,

at the date of sale of the asset.

1.5 Profit on sale of investments ■ Profit on sale of investments- The excess of the selling price above the book value of the

investment, at the date of sale of the investment.1.6 Other income – general ■ Bad debt recovered

- Amount received in settlement of a debt previously written off.■ Book sales

- Income received from the sale of textbooks.■ Cafeteria income

- Income recieved for the sale of food and drinks in the cafeteria


■ Advertisements- Income received from third parties for advertising in College

publications■ - Insurance

- Income received from insurance policies that paid out iro claims.■ Inventory write ups

- Increase of the value of inventory due to incorrect counting ofinventory or due to incorrect initial valuation of inventory.

■ Seminars and courses (including conferences)- Income received from the presentation of seminars and

conferences other that the normal class fees.■ Special projects income

- Income received from special projects other that the normal classfees.


1.7 Rentals received ■ Hall- The hiring out of the hall at a certain fee to third parties.

■ Sports grounds- The hiring out of sports grounds for sporting events of third

parties.■ Hostels

- The hiring out of hostels for income during College holidays orspecial events.

■ Houses / flats to staff■ Houses / flats other than to staff■ Canteen / cafetaria

- Hiring of the canteen / cafetaria to a third party ("outsource")■ Tuckshop

- Rental received for the outsource of tuckshops on campus.■ Student accommodation / hostels

- Income received from accommodating students during theCollege term in the College hostels.

■ Photostats / copies / faxes- Cash received from photocopies made.

1.8 Student support services ■ Student cards- Cash received from students for the initial and / or replacement

of student cards.■ SRC

- Income received through the student representative council inrespect of projects initiated by them.

■ Laboratory fees- Fees received for the use of a laboratory facility.

■ Library fees■ Medical fees

- Fees received for medical services of any nature.■ Counselling and placement

- Fees received for counselling and placement services of any nature■ Student support other

- Any other item underneath this class of transaction2 Expenditures2.1 Services ■ Accounting fees

- Expenses relating to accounting services being rendered for theCollege.

■ Auditors remuneration- The amount paid to auditors for their service as auditors.

■ Bank charges- Charges levied by the bank fro the use of the banking facilities.

Expenses payable to the bank in respect of service charges, cashhandling fees, etc.

■ Insurance- Monthly/annual expenses relating to an agreement entered into

whereby the College undertakes to pay a premium for covershould a loss occur as a result of an event of destruction.Insurance relating to buildings.


■ Garden services- Expenses paid to garden service companies for trimming the

gardens, mowing the lawns and tiding up the gardens.■ Security

- Expenses relating to the hiring of a security company in order toprovide various security services.

■ Internet access- Fees received i.r.o. e-mail and internet.

■ License fees – programmes- Expenses paid to third parties for the use of their programmes.

■ Rentals and leases – photocopiers / fax machines- Expenses incurred which relates to an agreement, which gives the

College the right to use the photocopier/fax machines.

2.2 Accreditation fees ■ Accreditation fees- Expenses relating to the process of obtaining accreditation for the

College as a training institution.

2.3 Administration fees ■ Administration expenses (including general expenses)- Expenses not specifically classified and which are of relative small

amounts.

2.4 Provision for doubtful debt ■ Provision for doubtful debts- The amounts set aside from profits in anticipation of existing

debtors that might become irrecoverable.

2.5 Communication costs ■ Postage and courier- Expenses relating to the sending of letters to students and posting

study material to distance learning students. Expenses of stamps,courier services, envelopes.

■ Telephone- Expenses relating to the monthly telephone bill received from

Telkom.■ Cell phone accounts

- Expenses relating to the monthly cell phone bills (of employees ofthe College) from cell phone companies.

■ Fax- Expenses relating to the hiring of the fax line.

■ - Internet / e-mail- Expenses relating to the monthly bills received from Telkom

regarding the internet use.

2.6 Printing ■ General- Cost incurred for the printing of various printing materials and

brochures■ - Specific programme

- Cost incurred for the printing of student class material for thedifferent programmes

2.7 Stationary ■ Stationery- Expenses for stationery used during lectures and in the offices

(paper, pens, printer cartridges, computer disks, etc).

2.8 Legal fees ■ Legal fees – general- Fees paid to attorneys regarding advice or preparing legal

documents.■ Legal fees – debt collection

- Fees paid to attorneys for assistance in recovering outstandingdebts


2.9 Consumables ■ Cleaning- Expenses/payments for goods to be used during the cleaning

process (detergent , washing cloths etc.)■ Business Studies

- Expenses/payments for goods used during the business studiescourse.

■ Engineering studies- Expenses relating to goods purchased to use during the

engineering studies course.


■ Hair dressing- Expenses relating to goods purchased to use during the

hairdressing course (shampoo and hair colour, etc)■ Educare

- Expenses relating to goods purchased for use during the educarecourse.

■ Tourism- Expenses relating to goods purchase for use during the tourism

course.■ Hospitality

- Expenses relating to goods purchase for use during the hospitalitycourse.

■ Cosmetology- Expenses relating to goods purchased for use during the

cosmetology course (wax or make-up etc.) ■ Art

- Expenses relating to goods purchased for use during the artcourse (brushes, paint, art pencils and coloured pencils, etc.)

2.10 Depreciation ■ Motor vehicles- The portion of the cost/value of motor vehicles, which is charged

as an expense against revenue for a particular accounting period.There are various depreciation methods.

■ Furniture and fittings- The portion of the cost/value of furniture and fittings, which is

charged as an expense against revenue for a particular accountingperiod. There are various depreciation methods.

■ Machinery and equipment- The portion of the cost/value of machinery and equipment, which

is charged as an expense against revenue for a particularaccounting period. There are various depreciation methods.

2.11 Amortisation ■ Intangible assets- The portion of the cost/value of the intangible asset, which is

charged as an expense against revenue for a particular accountingperiod.

2.12 Interest paid / finance ■ Interest paid / finance charges- Expense incurred for the loan of money for extended credit

facilities.

2.13 Marketing ■ Gifts- Expenses’ relating to gifts and marketing of the College.

■ Prize giving- Expenses relating to prizes for competitions at events, at which

future students or alliances are targeted.■ Promotions

- Expenses relating to paying students for distributing flyers and forbuying promotional items.

■ Catering - Expenses for buying food and drinks or paying for a caterer, at

marketing events.■ Advertising and promotions

- Expenses relating to advertisements placed in newspapers, on TVor on flyers.

■ Recruitment expenses- Expenses incurred while finding suitable candidates to fill vacant

positions at the College.■ Career exhibitions

- Expenses like hiring a stand, stationery for the exhibitions, flyersand people employed to man the exhibition stalls.

2.14 Other ■ Open days- Expenses relating to open days at the College.

2.15 Motor vehicle expenses ■ Fuel and oil- Expenses for paying fuel and oil charges for College vehicles.

■ Repairs, licensing and insurance- Expenses for paying of College vehicle licensing costs to the

municipality, payment of monthly motor vehicle insurance.

2.16 Municipal services ■ Electricity


- Monthly payment to the local municipality regarding the usage ofelectricity.

■ Water- Monthly payment to the local municipality regarding the usage of

water.■ Rates and taxes

- Monthly payment to the local municipality regarding propertytax, waste removal and sewerage.

2.17 Repairs and maintenance ■ Grounds- Costs to maintain the ground in a presentable state.

■ Vehicles- Costs incurred to maintain vehicles in a working order.

■ Machinery- Costs incurred to maintain machinery in a working order.

■ Buildings- Costs incurred to maintain the buildings in a presentable

condition.■ Furniture

- Costs incurred to keep furniture in a manner that it remainsusable.

■ Computer equipment- Costs incurred to maintain computers in a working order.

■ Pool maintenance- Costs incurred to keep the pool clean and usable.


2.18 Employment costs ■ Salaries - Amounts paid monthly to the teachers at the College.

■ Wages- Amounts paid monthly to other employees at the College that

may not work on a permanent basis.■ Private teachers

- Cost of additional teachers that may be required if the staffcomplement is not sufficient.

■ Unemployment Insurance Fund (U.I.F)- U.I.F. relating to Council paid employees.

■ - Compensation Commissioner- Compensation realting to Council paid employees.

■ Pay-as-you-earn (PAYE)- PAYE relating to Council paid employees.


2.19 Staff development ■ Staff development and training- Expenses for sending staff members on training courses and

seminars.■ Staff welfare

- Expenses incurred for gifts, flowers and cards for staff membersduring times of personal achievement/bereavement etc.

■ Staff functions- Expenses for functions for staff members, including catering.

■ Staff loans- Expenses relating to loans to staff that cannot be paid back by the

staff member.■ Clothing

- Expenses relating to clothing for employees.■ Other


2.20 Student support services ■ Resource centre- Expenses that are paid to acquire books and other literature for

the library. ■ Photostat copies

- Costs of making photocopies notes etc. (This will be the cost ofthe paper and the ink for the photocopy machine.)

■ Student cards- Cost of making the student cards to issue to the students.


■ First aid expenses- Expenses in order to maintain first aid boxes. (bandages, plasters,

etc.) ■ Student tours / excursions

- Expenses relating to external activities such as transport expensesand entrance fees to the place where the excursion will take place.

■ Student functions- Student functions (catering costs, etc.).

■ Bursaries- Payment of bursaries to students who comply with the specific

bursary requirements.■ Sport

- Expenses to buy equipment used in sport that is offered by theCollege.

■ External courses- Expenses incurred for sending students on courses that does not

form part of the normal courses of the College.■ Clinic services

- The cost to service a clinic including medicines etc.■ Outsourced services

- The cost of external advisors or consultants to perform services onthe behalf of the College.


■ Student Representative Council- Costs that the Student representative Council may incur such as

costs of meetings and projects that they run as well as costs of thespecial Student Council uniforms.

■ Students refunded- Student refunds for overpayment on his student fees or

accommodation, or in relation to transers.■ Other

- Any other item underneath this class of transaction.

2.21 Travel and subsistence ■ Accommodation

- Expenses paid with regard to accommodation when an employeehas to stay out of town for an evening.

■ Travel – local- Expenses paid when an employee has to go out of town. This

would be the expense paid to get to the meeting or conferenceeither by car, bus or air.

■ Travel – overseas- Expenses for overseas travel (costs of plane tickets, etc.)

■ Car rentals- Cost of renting a car from a car hire agency.

■ Subsistence- The cost of meals etc. while out of town.


2.22 RCS levies ■ RSC levies- A tax paid to local government based on your gross wage paid as

well as the revenue paid.

2.23 College Council ■ Remuneration- Payments made to council members i.r.o. services rendered.

■ Expenses- Expense incurred by the College Council relating to the holding of

meetings.

2.24 Training materials ■ Books and aids- Expenses for buying of books and other study aid.

■ Course materials- Expenses relating to the buying of material, which will be used in

various courses at the College. ■ Other



2.25 Cafeteria / canteen ■ Cafeteria and canteen expenses- Expenses that relate to the buying of food and drinks for

use/selling in the cafeteria.

2.26 Donations and fines ■ Donations paid- Payments made to other institutions or persons for specific

reasons.

■ Fines- Fines paid for offences committed (traffic etc)

2.27 Losses and write offs ■ Loss on sale of fixed assets- When the fixed asset is sold at less than its book value (what it is

worth in the accounting records) a loss is made.■ - Loss on sale of investments

- When an investment is sold at less than its book value (the valuein the accounting records) a loss is made.


■ Assets written off- Expensing the difference between the book value of an asset and

nil.■ Inventory write off

- Expense to decrease the value of inventory due to incorrect stockquantities or valuation.


2.28 Membership fees and subscription ■ Membership fees and subscriptions- Paying for staff membership to professional institutions. Expenses

that relate to subscription to magazines regarding Collegeactivities.

2.29 Conferences and workshops ■ Workshop and seminar expenses- Expenses relating to the presentation of workshops and seminars

like hiring of overhead projectors, paying of course presenters,expenses relating to hand outs.

■ Conference costs- Expenses directly relating to the presentation of conferences.

Hiring of conference space, paying of conference presenters,printing of conference material.


2.30 Examination expenses ■ Examination expenses- Expenses in order for the examinations to be able to take place,

(invigilators, stationary for exam papers, photocopying of exampapers, etc.)

2.31 Student accommodation ■ Student accommodation expenses- Expenses with regard to the place where students are staying

(Maintenance, cleaning, etc.)

2.32 Laundry ■ Laundry- Expenses for dry cleaning and for sending laundry (especially

hostel laundry) to a laundromat for cleaning.

2.33 Expenses incurred on income generated ■ Expenses incurred on income generated by programmesby programmes - Expenses relating to individual programmes, which specifically

relates to the income.2.34 Other ■ All other expenses that have not been described.


Annexure 1: Fixed asset registerCONSOLIDATED SHEET

Campus Site Asset Total Total Total Total Total Total Beginning End Incomeclass book value book value depreciation additions disposals of year of year (statement)

Profit / (Loss)

0 Computer equipment - - - - - - 0 Computer equipment - - - - - - 0 Computer equipment - - - - - - 0 Computer equipment - - - - - - 0 Computer equipment - - - - - - 0 Computer equipment - - - - - - 0 Computer equipment - - - - - -

- - - - - -

0 Office equipment - - - - - - 0 Office equipment - - - - - - 0 Office equipment - - - - - - 0 Office equipment - - - - - - 0 Office equipment - - - - - - 0 Office equipment - - - - - - 0 Office equipment - - - - - -

- - - - - -

0 Buildings - - - - - - 0 Buildings - - - - - - 0 Buildings - - - - - - 0 Buildings - - - - - - 0 Buildings - - - - - - 0 Buildings - - - - - - 0 Buildings - - - - - -

- - - - - -

0 Vehicles - - - - - - 0 Vehicles - - - - - - 0 Vehicles - - - - - - 0 Vehicles - - - - - - 0 Vehicles - - - - - - 0 Vehicles - - - - - - 0 Vehicles - - - - - -

- - - - - -

0 Furniture and fittings - - - - - - 0 Furniture and fittings - - - - - - 0 Furniture and fittings - - - - - - 0 Furniture and fittings - - - - - - 0 Furniture and fittings - - - - - - 0 Furniture and fittings - - - - - - 0 Furniture and fittings - - - - - -

- - - - - -

0 Machinery - - - - - - 0 Machinery - - - - - - 0 Machinery - - - - - - 0 Machinery - - - - - - 0 Machinery - - - - - - 0 Machinery - - - - - - 0 Machinery - - - - - -

- - - - - -

0 Computer software - - - - - - 0 Computer software - - - - - - 0 Computer software - - - - - - 0 Computer software - - - - - -


0 Computer software - - - - - - 0 Computer software - - - - - - 0 Computer software - - - - - -

- - - - - -

0 Land - - - - - - 0 Land - - - - - - 0 Land - - - - - - 0 Land - - - - - - 0 Land - - - - - - 0 Land - - - - - - 0 Land - - - - - -

- - - - - -

0 Library books - - - - - - 0 Library books - - - - - - 0 Library books - - - - - - 0 Library books - - - - - - 0 Library books - - - - - - 0 Library books - - - - - - 0 Library books - - - - - -

- - - - - -

- - - - - -


Annexure 2: Directory of FET CollegesListed below by province are the institutions that have merged into newly established FET institutions:

Colleges and campus sites:

Eastern CapePort Elizabeth • Bethelsdorp Technical College:

- Dover Campus

- Heath Park Campus

• Iqhayiya Technical College

• Russell Road College for Career Education

Eastcape Midlands • Grahamstown Technical College

• Kwa Nobuhle Technical College

• Uitenhage College

Buffalo City • East London College for Arts, Business and Technology:

- East London Campus

- St Marks Campus

• John Knox Bokwe Careers College

• Border Technical College

Lovedale • East London College for Arts, Business and Technology – King Campus

• Lovedale Community College

• Zwelethemba Technical College

King Sabata Dalindyebo • Engcobo Technical College

• Mapuzi Technical College

• Umtata Technical College

Ingwe • Clydesdale Technical College

• Mount Frere Technical College

• Ngqungqushe College

• Mount Fletcher College

• Siteto Technical College

Ikhala • East London College for Arts, Business and Technology – Aliwal North Campus

• Ezibeleni Technical College

• Cradock Campus

• Queenstown College

• Dordrecht Campus

• Sterkspruit Technical College

King Hintsa • Centane Technical College

• HB Tsengwa Technical College

• Teko Technical College

Free StateGoldfields • Tosa Technical College

• Welkom College

Motheo • Bloemfontein College

• Kagisanong Technical College

• Hillside View Technical College

• Thaba’Nchu College

Maluti • Bethlehem College

• Bonamelo Technical College

• Itemoheleng Technical College

• Kwetlisong College

• Lere la Tsephe College of Education

• Sefikeng Technical College


Flavius Mareka • Kroonstad College

• Mphohadi Technical College

• Sasolburg College

Gauteng ProvinceTshwane South • Atteridgeville College for Further Education:

- Atteridgeville Campus

- Citicol

- Distancecol

- Educol

- Kidicol

- Twin Palms Restaurant

- Futuready

• Centurion College

• Pretoria West College of Engineering

Tshwane North • Mamelodi College for Vocational Education

• Pretoria College

• Soshanguve College

Ekurhuleni West • Alberton College

• Boksburg College

• Germiston College

• Kempton College

• Kathorus College

• Tembisa College

Ekurhuleni East • Benoni College

• Brakpan College

• Isidingo College

• Springs College for Vocational Education

• Tlamoha College for Vocational Education

South West Gauteng • Dobsonville College

• George Tabor College

• Krugersdorp College

• Molapo Technical College

• Gauteng Roodepoort College:

- Roodepoort Campus

- Engineering Campus

Central Johannesburg • Alexandra College

• Highveld Technical College

• Ellispark College

• Parktown College for Vocational Education

Western Public • Carletonville College

• Randfontein College

Sedibeng Public • Lekoa Technical College

• Vanderbijlpark College

• Vereeniging College

Technisa • Pinegowrie

Kwazulu NatalMthashana • Nongoma College

• Vryheid College

Umfolozi • Richtek College for Vocational Education

Majuba • Madadeni Technical College

• Newcastle Technical College

• St Oswalds Technical College

Mnambithi • Ezakheni Technical College

• Ladysmith College


Sivananda • Ntuzuma Technical College and Training Centre

• Pinetown Technical College

• KwaMashu Campus

• Mpumalanga Campus

• Quadi Skill Centre

Mobeni • Swinton Road Technical College

• Durban Technical College

• Umlazi Technical College

- BB Campus

- V campus

• Kwa Makahutha College

– Umbubulu campus

Thekwini • Springfield Campus

• Cato Manor Campus

• Centec Campus

• LC Johnson Technical College

• Asherville Campus

• Melbourne Campus

Umgungundlovu • Edendale technical College

• Msunduzi College

• Northdale Technical College

• Plessislaer Technical College

Isayidi • Enyenyezi Technical College

• Port Shepstone Technical College

LimpopoEllisras • Ellisras Technical College

Capricorn • Bochum Technical College

• Northern Province Community Centre

• Pietersburg Technical College

Waterberg • Lebowakgomo College

• Potgietersrus Technical College

Vhembe • Mavhoi Technical College

• Techniven

Mopani South • Mapulaneng Technical College

• Phalaborwa College

• Sir Val Duncan College

Mopani East • Giyani Technical College

• Maake Technical College

• Modjadji Community Technical College

• Tzaneen Technical College

CS Barlow College • CS Barlow Technical College

for FET • CN Phatudi Technical College

MpumalangaEhlanzeni • Mlumati Technical College

• Mthimba Technical College

• Nelspruit Technical College

• Waterval Boven Training College

Nkangala • CN Mahlangu Technical College

• Middelburg College

• Mpondozankomo Technical College

• Witbank College

Gert Sibande • Ermelo Technical College

FET College • Evander Technical College

• Standerton Technical College


Northern CapeNorthern Cape • Kimberley College

Urban College for FET • Northern Cape Technical College

Northern Cape • De Aar College

Country College • Kathu Technical College

• Namaqualand Technical College

• Upington College for Vocational Education

• Kuruman Technical College

North West Taletso • Lehurutse Technical College

• Lichtenburg College

• Mafikeng / Mmabatho College

Vuselela • Jouberton Technical College

• Klerksdorp College

• Potchefstroom Technical College

• Taung College

Orbit • Brits Technical College

• Odi Manpower Centre

• Rustenburg Technical College

• Temba College

Western CapeWest Coast • Atlantis Technical College

• Vredenburg Technical College

• Vredendal Technical College

• Citrusdal Technical College

Boland • Paarl Technical College

• Stellenbosch Technical College

• Strand Technical College

• Worcester Community College

• Caledon Campus

• Headoffice

South Cape • Mossel Bay Technical College

• George Technical College

• Oudtshoorn Technical College

• Outeniqua Technical College

• Central office

• Skills centre

North Link Public • Bellville Technical College

FET College • Protea Technical College

• Tygerberg College

• Wingfield College

College of Cape Town • Athlone Technical College

- Athlone Campus

- Wynberg Campus

• Cape Technical College

• Sivuyile College

• Western Province Technical College

False Bay • South Peninsula College

- South Peninsula Campus

- Good Hope Campus

• Westlake Technical College


Annexure 3: Contact details of Colleges and principals

Eastern CapeCollege Operating campus Principal Physical address Postal address Tel: numberIngwe Mount Frere Mr S Sipamla Cansele Road PO Box 92491 039 255 1204

Mount Frere Mount Frere, 5090Port Elizabeth Russell Road Ms J Grobler 139 Russell Road Private Bag X6040 041 585 7771

Port Elizabeth Port Elizabeth6000 6001

Eastcape Midlands Uitenhage Mr JJ Mbana High Street Private Bag X35 041 922 7132Uitenhage Uitenhage

6230Ikhala Queenstown Ms C Zituta C/o Robinson/Zieler Rd Private Bag X7110 043 839 5880

Queenstown Queenstown 5300

Buffalo City East London Mr P Loots Lukin Road Private Bag X9016 043 722 2346Selborn East LondonEast London 5200

King Hintsa Teko Mr SB Lukhozi Truco Farm Private Bag X3018 047 492 8045Centane ButterworthButterworth 4960

Lovedale King Mr N Stofile Amatola Row PO Box 2156 043 642 1331King Williams Town King Williams Town5600 5600

King Sibata Umtata Mr MN Gibeni Ngangeliswe Location Private Bag X5011 047 492 8016Balindyebo New Bright Road Umtata

Umtata 5099

Free StateCollege Operating campus Principal Physical address Postal address Tel: number

Flavius Mareka Sasolburg Mr T Letho 7 Harry Smith Street, Private Bag X2009, 016 976 0815Sasolburg Sasolburg, 9570

Goldfields Tosa Dr LM Kruger 14100 Education Street, Private Bag X95, 057 395 1301Thabong, 9463 Welkom, 9460

Maluti Sefikeng S Manese Private Bag X827, 058 713 3534Witsieshoek, 9870

Motheo Hillside View Mr S Maboya Khomo Street, Private Bag X20509, 051 404 8480Mangaung Bloemfontein, 9300

GautengCollege Operating campus Principal Physical address Postal address Tel: number

Central Johannesburg Parktown Mr MM Makhene Herbert Baker Building Private Bag 70500 011 643 84215 Ubla Avenue HoughtonParktown 20412041

Tswane North Pretoria Ms M Bastiaans 420 Church Street PO Box 26193 012 323 8623Pretoria Arcadia0002 0007

Ekhurhuleni East Tlamohe Dr C Perreira Sam Ngema Drive Private Bag X52 011 736 4400Kwa-thema, Springs Springs1975 1560

Sedibeng Vereeniging Dr A Mashele 33 Voortrekker Street Private Bag X035 016 421 1150/5Vereeniging Vereeniging1930 1930

South West Malapo Mr D Nkozi Cnr Koma and Molele Rd PO Box 164 011 984 0112Molape, Soweto Florida1860 1710

Tshwane South Centurion Mr JT Chiloane College Avenue Private Bag X1018 012 660 8500Tech-base LyttletonLyttleton 01400140


Western Public Randfontein Mr L Coetzer Kiewiet Street Private Bag X17 011 693 3608Helikon Park Randfontein

1760

Ekhurhuleni West Germiston Mr C Mtshiza Cnr Driehoek & Sol Rds Private Bag X1030 011 872 0830/8Germiston Germiston1400 1400

Technisa Mr Q Masutha Private Bag X7 011 293 1201

Pinegowrie 2123

KwaZulu NatalCollege Operating campus Principal Physical address Postal address Tel numberUmfolozi Richtek Mr P van Schalwyk 58 Via Ricardia Private Bag X5023 035 789 1101

Richards Bay Richards BayArboretum 3900

Mnambithi Ladysmith Mr J Naidoo 12 Walton Street Private Bag X9903 036 637 4782Ladysmith Ladysmith

3370

Mobeni Umlazi Mr WM Nzimande Umbumbula College PO Box 1795 031 905 7000Old Main Rd AmanzimtotiKwa Makhuta 4126

Majuba Madadeni Mr CA Prinsloo 15 Tarentaal Street PO Box 20404 034 329 2004Newcastle Newcastle 2940

Esayidi Enyenyezi Dr SJ Nzimande Private Bag X814 039 318 1433Port Shepstone4240

Inanda Pinetown Dr H Labuschagne 38 Bamboo Lane Private Bag X9032 031 702 3260Pinetown Pinetown

3600

Mthashana Vryheid Mr PPM Langa 92 Hlobane Street PO Box 725 034 981 5337c/o West street VryheidVryheid 3100

Umgungundlovu Mr C Khuzwayo 47 Prince Alfred St Private Bag X9060 033 345 8945Pietermaritzburg Pietermaritzburg3200 3200

Thekwini Cato Manor Mr RC Cadir 262 D’Aintree Avenue Private BagX06 031 250 8200Asherville DormertonDormerton 4015

LimpopoCollege Operating campus Principal Physical address Postal address Tel number

Ellisras Ellisras Mr J Raath P/Bag X210 014 763 2252

Ellisras 0555

Vhembe Mr H Mnisi 113 Burger Street, PO Box 4441 015 516 5298Makhado, 0920 Makhado

0920

Bekhukhune CS Barlow Mr TJ Kekana P/Bag X8660 013 269 0020

Groblersdal 0220

Mopani North East Tzaneen Ms M Botha 58 Agatha Street, PO Box 2780 015 307 5160Volkskas Buiding, TzaneenTzaneen 0850

Mopani South East Phalaborwa Ms MJ Umene P/Bag X01036 015 783 0400

Phalaborwa 1340

Capricorn Polokwane Mr KR Madzhie PO Box 205 015 297 2182

Polokwane 0700

Waterberg MD Kopone Mr SP Mailula PO Box 659 015 491 3052Mokopane


MpumalangaCollege Operating campus Principal Physical address Postal address Tel numberGert Sibande Standerton Dr E Hawthorn 1st Floor Standerton Cen Private Bag X3476 017 712 9040

c/o Princess & Church St StandertonStanderton 2429 2430

Ehlanzeni Nelspruit Mr PS Zwane 15 Hensall Street Private Bag X11282 013 752 5804Nelspruit Nelspruit

1200

Nkangala Mr P Qwabe 013 249 8534

Northern CapeCollege Operating campus Principal Physical address Postal address Tel number

Northern Cape Urban Northern Cape Mr C Barnes Jan Smuts Boulevard Private Bag X5031 053 839 2000Kimberley Kimberley

8300

Northern Cape Upington Mr P Sago Steve Naude street PO Box 1834 054 331 3836Rural Upington Upington

8800

North WestCollege Operating campus Principal Physical address Postal address Tel numberOrbit Rustenburg Ms M Marais C/o Plein & Bosch Street Private Bag X 82086 014 592 7014

Rustenburg Rustenburg0300

Vuselela Klerksdorp Mr MD Mochwanaesi 113 Church street PO Box 10107 018 462 5821Klerksdorp Klerksdorp

2570

Taletso Mafikeng Ms S Gelderblom Dr Albert Luthuli Private Bag X128 018 384 6213Mmabatho Mmabatho2735 2735

Western CapeCollege Operating campus Principal Physical address Postal address Tel number

False Bay Muizenberg Mr C Kruger 1st Floor Private Bag X25 021 712 1080Tokai on Main TokaiMain Road Tokai 7966

Boland Mr DS Fourie Valerida Centre Private Bag 5068 021 886 7111/2Piet Retief Street StellenboschStellenbosch 7599

College of Guguleto Mr J Isaacs San River P/Bag X1 021 464 3868Cape Town 16 Kent Rd Durheim

Salt River 8001 7491

West Coast Atlantis Ms O Jooste Rierwen Owen St PO Box 59 021 517 1727Darrenberg Vredenburg

7380

South Cape Mr WSJ Holtshausen 1st Floor PO Box 10400 044 884 0359Tommy Joubert Building, ,GeorgeC/o Courtney & 6530Cradock St George

North Link Tygerberg Mr L Beech De Tijger Office Private Bag X1 021 930 0957Park Unit 1 PanoramaHannes Louw St 7506De TijgerParow 7500


Annexure 4: List of Acts■ Further Education and Training Act no. 98 of 1998,

■ Public Finance Management Act of 1999

■ Companies Act 1973 – Section 21 companies,

■ Income Tax Act – PAYE,

■ Skills Development Levies Act no. 9 of 1999,

■ Skills Development Act no. 97 of 1998,

■ Labour Relations Act,

■ Employment Equity Act no. 55 of 1998,

■ Employment of Educators Act no. 76 of 1998,

■ Basic Conditions of Employment Act 1997,

■ General and Further Education and Training Quality Assurance Act no. 58 of 2001,

■ South Africa Council for Educators Act no. 31 of 2000,

■ National Education Policy Act no. 27 of 1996,

■ The South African Qualification Act no. 58 of 1995.

If the reader of this document wants to have access to the above acts, it is available online at www.acts.co.za.


Annexure 5: Useful websites■ www.acts.co.za,

■ www.polity.org.za - go to: Structures (departments), Index, Department of Education,

■ www.education.pwv.gov.za

■ www.gov.za/acts/1998/a76-98.pdf

■ www.google.com - search for: online learning,

■ www.yahoo.com/education,

■ www.galaxy.com - go to: Social science (Education),

■ www.nbi.org.za

■ www.kpmg.co.za

■ www.coltech.co.za

■ http://education.pwv.gov.za/index.asp?src=pesi

■ http://links.webarchitects.co.uk/links/UK_Colleges/

■ http://www.support4learning.org.uk/education/further_ed.htm

■ n http://pcconsultants.co.za/db2000

■ http://www.marine.gov.uk/edlinks_Colleges%20of%20further%20education.htm


Annexure 6: Abbreviations and terminologies

CEO Chief Executive Officer

SAQA South African Qualifications Authority

DOE Department of Education

EDTP SETA Education, Training and Development Practices of the Sector Education and Training Authority.

EXCO Executive Committee

FET Further Education and Training

FTE Full Time Equivalent

GAAP Generally Accepted Accounting Practices

GRN Good Receive Note

HoD Head of Department

HR Human Resources

IT Information Technology

NBI National Business Institute

PFMA Public Finance Management Act

SACE South African Council of Educators

SDF Skills Development Fund

SRC Student Representative Council

SSC Shared Service Centre

doe - financial and operations procedures toolkit.pdf - saide

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