Univen and #FeesMustFall

1.10 Future Infrastructure

Projects

Proposed New Buildings

Graduation Hall New Lecture Theatres

Extension to Library New Management Sciences

Proposed new Buildings (cont).

Buildings for Engineering and Law New Offices

Extension to Student Administration Building New Science Park

Proposed new Buildings (cont).

New entrance for Punda Maria Gate

New ICT Building

1.11 ICT in support of

Core Project

Broadband at University of Venda

1. Univen Broadband growth:• 8mbps in 2008; • 12mbps in 2010; • 30mbps in 2011; • 45 mbps in July 2012;• 300mbps in November 2012;• 450mbps in 2013 and • 10gig from August 2015.

2. Wireless campus: 30mbps wireless.

4. Have requested Tenet for broadband to Vuwani

University of Venda “Smart University” Roadmap

14KStudents

Creating Future Leaders

Employability

Flexible, personalized learning

Globally aware, locally relevant

Faculty and staff800

Infrastructure project

>R337M

Univen Wi-Fi Network

Univen Tablet Handout

The first 2000 tablets delivered

School of Agriculture students awaiting the delivery process to commence.

20 Staff members trained to capture required information and register tablet

1.12 Ensuring a Safe and

Secure Campus

Integrated Security Masterplan

Security Network Masterplan

Security System Masterplan

Protection Services State of the Art Control

Room

Successes with our CCTV system

Student stealing a cellphone

Student stole tablet and running away

Student stole tablet

Student stealing a wallet

2. Univen’s Approach to

#FeesMustFall and

Insourcing

UNIVEN and the Future

1. Univen immediately formed Strategic Transformation Committee

comprising members of Executive Management and Council to act

as a Rapid Action Team as far as decision-making is concerned and

providing mandates to Management

2. Univen immediately started with full assessment of funding and

compiled a list of austerity measures

3. Univen decided that as far as Insourcing is concerned, that it be

dealt with under the Univen wholly-owned subsidiary UIGC on the

following terms:

• Only if done under UIGC

• Sectoral rates

• UIGC assisted to cover costs of overheads such as staff and

systems

• Sector related Conditions of Service

4. Univen built scenarios

Where do we want to

be?

What is the current reality?

Gap

Strategic Objectives

Build 3 scenarios with two pillars each: • Financial sustainability and • access

New World-Class Rural University

The University of Venda Turnaround Strategy

The Life Cycle of Univen

1982

1. DISEQUILIBRIUM

BETWEEN CHALLENGE &

RESPONSE

2. INABILITY IDENTIFY

CLEAR ACTIONS &

GOALS

3. RESOURCE WASTE DUE

TO ERROR RATE

4. NEED GOAL CLARITY &

PRIORITISED ACTION

2015

1. OPTIMUM

EQUILIBRIUM

BETWEEN

CHALLENGE

& RESPONSE

2. OPTIMUM RESOURCE

ALLOCATION &

UTILISATION

3. DYNAMIC & ADAPTABLE

4. SELF-GENERATING

MOMENTUM

5. OPTIMUM CREATIVE

RESPONSE

6. ABILITY TO DISPLAY

VERSATILITY

2016/2017

1. DISEQUILIBRIUM

BETWEEN

CHALLENGE

& RESPONSE #FEESMUSTFALL; INSOURCING 2. RELIANCE ON PAST

SUCCESS

3. STAGNATION DUE TO

LOSS OF FLEXIBILITY

4. RESOURCE WASTE DUE

TO MAINTENANCE NEEDS

5. UNWILLINGNESS TO

INTRODUCE CHANGE

6. LOSS OF CREATIVITY

7. WE RUN THE RISK OF

POTENTIAL FUTURE

DISINTEGRATION

8. APPEARANCE OF A FEW

CREATIVE MIND

PROPAGATING CHANGE

1. STAGNATION AND

HARDENING TOWARDS

CHANGE

2. PROBABLE

DISINTEGRATION OF

UNIVEN

3. ESCALATION OF CRISiS

4. FLIGHT OF BEST STAFF

5. FRUSTRATION AMONGST

STAFF

6. MANAGEMENT BY CRISiS

7. INEFFECTIVE RESPONSE

TO HE CHALLENGES

8. SENSE OF CRISiS & LOSS

OF DIRECTION

3. Impact on Univen’s

Financial Sustainability

and Student Access

THE TORTOISE SCENARIO: Maintain Status

Quo leading to Eventual Demise of Univen1. DISEQUILIBRIUM BETWEEN CHALLENGE &

RESPONSE: Don’t plan effectively for impact of

#FeesMustFall; Insourcing; no increase in 3rd stream

income; lack of office accommodation.

2. RELIANCE ON PAST SUCCESS: Accommodate and

tolerate dead wood; ineffective performance management;

culture of “entitlement”, no rationalization of departments,

audit focus skew.

3. RESOURCE WASTE DUE TO MAINTENANCE NEEDS:

Use maintenance funding for other purposes

4. UNWILLINGNESS TO INTRODUCE CHANGE:

Inflexibility of HR; slow ICT uptake; backstabbing;

favouritism.

5. LOSS OF CREATIVITY: No increase in productivity; no

new interventions.

6. POTENTIAL FUTURE DISINTEGRATION: Best staff

looking elsewhere. Staff growth continues.

7. APPEARANCE OF CREATIVE MINORITIES: Don’t listen

to those who see warning signs such as low productivity,

unnecessary appointments, no rationalization.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Income 524 475 610 822 712 916 831 329 982 622 1 033 330 1 101 634 1 150 062 1 201 360 1 255 642 1 313 035

Expenditure 492 887 517 900 636 910 769 362 948 182 1 002 132 1 094 419 1 183 088 1 272 674 1 369 283 1 473 473

Surplus/( Deficit) 31 588 92 922 76 006 61 967 34 440 31 198 7 215 -33 026 -71 314 -113 641 -160 437

250 000

450 000

650 000

850 000

1 050 000

1 250 000

1 450 000

1 650 000

R’000

Income and Expenditure: 0% Increment and Business as Usual

Assumptions – 0% Fee Increase and

Business as Usual• State subsidies as expected to grow at 4% per annum.

• Student enrolment figure is expected to grow by 500 annually which will results in a marginal

increase of student tuition fees.

• Other assumptions are as following:

o Research is expected to grow by 5% year on year basis until 2021.

o Income from other activities is expected to increase by 1%

o Sales of goods and services is expected to increase by 5% going forward

o Private gifts and donations will increase by 3% until 2021

o Interest on investments will decline due assuming that Univen will not have enough funds to

invest.

o Salaries are expected to increase by current adjustment of 8.5% per annum.

o Staff costs rise to 62% of turnover.

o Operating expenses will increase by 7%.

o Income decrease with less investments and therefore less interest.

o Expenditure increases with new buildings require support services, further utility usage and

technology.

THE IMPALA SCENARIO: Flexible but

vulnerable

1. DISEQUILIBRUIM BETWEEN CHALLENGES

AND RESPONSES: Respond reactively to new

challenges; slow down in appointments.

2. READING THE FUTURE: Narrow vision of the

new future – not seen as disastrous but

manageable.

3. INWARDLY FOCUSSED: Not enough momentum

to balance inward focus with external impact

factors; start rationalising some departments.

4. COMMUNICATION: Not enough visible and

enthusiastic leadership to a compelling future; lag

in internal communication and staff buy-in.

5. DISPARATE DEPARTMENTAL

DEVELOPMENT: Silo development and pockets

of excellence; cancellation of development of new

programmes.

6. GOAL CLARITY: Goals are clear but progress to

attain them indifferent.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Income 524 475 610 822 712 916 831 329 982 622 1 061 505 1 159 190 1 228 136 1 280 483 1 341 380 1 408 990

Expenditure 492 887 517 900 636 910 769 362 948 182 1 002 132 1 079 319 1 166 768 1 246 296 1 331 386 1 422 426

Surplus/ ( Deficit) 31 588 92 922 76 006 61 967 34 440 59 373 79 871 61 368 34 187 9 994 -13 437

250 000

450 000

650 000

850 000

1 050 000

1 250 000

1 450 000

1 650 000R’000

Income and Expenditure: 6% Increment or Marginal Change

Assumptions 6% Fee Increase or

Marginal Change• State subsidies as expected to grow at 5% per annum.

• Receive HDI Fund 2017 – R46m; 2018 – R60m; 2019 – R54m; 2020 – R53m; 2021 – R55m

• Student enrolment figure is expected to grow by 500 annually which will results in a marginal increase of

student tuition fees. The annual increase is 6%

• Other assumptions are as followings:

o Research is expected to grow by 6% year on year basis until 2021.

o Income from other activities is expected to increase by 2%.

o Sales of goods and services is expected to increase by 5% going forward

o Private gifts and donations will increase by 4% until 2021.

o Interest on investments will decline due assuming that Univen will not have enough funds to invest.

o Salaries are expected to increase by current adjustment of 7.0% per annum through lower increases.

o Minor rationalisation move staff costs to 60% of turnover.

o Operating expenses will increase by 7%.

o Income decrease with less investments and therefore less interest.

o Expenditure increases with new buildings require support services, further utility usage and technology.

Decrease Utility cost per M² by 8%

THE CHEETAH SCENARIO: Flexible, Nimble,

Adaptive

1. OPTIMUM EQUILIBRIUM BETWEEN CHALLENGE

& RESPONSE: Do more by focusing on less; can’t

be everything to everyone; partner with industry on

their requirements.

2. OPTIMUM RESOURCE ALLOCATION &

UTILISATION: Rationalisation of schools and

departments within four months – 60 department to

40 and 8 schools to 5 faculties.

3. DYNAMIC & ADAPTABLE: Empowerment of staff

and less committees; reduce staff in support

functions through retrenchment.

4. SELF-GENERATING MOMENTUM: Significantly

grow research output, third stream income

generation and measure productivity.

5. OPTIMUM CREATIVE RESPONSE; Listen to the

people, they know where the wheels are squeaking.

Implement ideas.

6. ABILITY TO DISPLAY VERSATILITY: Innovation

workshops internally and implement new ideas.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Income 524 475 610 822 712 916 831 329 982 622 1 065 435 1 175 435 1 258 239 1 326 141 1 404 457 1 491 536

Expenditure 492 887 517 900 636 910 769 362 948 182 1 002 132 1 079 319 1 166 768 1 246 296 1 331 386 1 422 426

Surplus/ (Deficit) 31 588 92 922 76 006 61 967 34 440 63 303 96 116 91 471 79 845 73 072 69 109

250 000

450 000

650 000

850 000

1 050 000

1 250 000

1 450 000

1 650 000

R’000

Income & Expenditure: 8% Increment or

Fundamental Change

Assumptions 8% Fee Increase or

Fundamental Change• State subsidies as expected to grow at 5% per annum.

• Receive HDI Fund 2017 – R46m; 2018 – R60m; 2019 – R54m; 2020 – R53m; 2021 – R55m

• Student enrolment figure is expected to grow by 500 annually which will results in a marginal increase of student

tuition fees. The annual increase is 8%

• Other assumptions are as followings:

o Research is expected to grow by 7% year on year basis until 2021.

o Income from other activities is expected to increase by 3%.

o Sales of goods and services is expected to increase by 5% going forward

o Private gifts and donations through Foundation will increase by 5% until 2021.

o Interest on investments will decline due assuming that Univen will have less funds to invest.

o Salaries are expected to increase by current adjustment of 6.5% per annum through lower increases.

o Significant rationalisation keep staff costs at 57% of turnover.

o Operating expenses will increase by 7%.

o Income decrease with less investments and therefore less interest.

o Expenditure increases with new buildings require support services, further utility usage and technology. Decrease

Utility Cost per M² by 10%. Require Professional Investigation into Tariffs Levied.

o No entry into new land acquisitions or collaboration with TUT in Polokwane if no reasonable prospect of

development and surplus growth.

Rising Cost of Utilities

Years Electricity Water Rates and Taxes Telephone Total Utilities

2011 8 956 768 1 783 5 206 16 713

2012 8 676 2 241 3 857 7 787 22 561

2013 11 767 306 4 992 11 088 28 153

2014 12 385 262 4 545 13 413 30 605

2015 14 003 2 353 5 082 14 798 36 235

NOTE: Significant increase in utilities from 2017 and 2018 onwards with occupancy of new residences 2400 beds and nine other new buildings. Tariff investigation required and private supplier system to be immediately replaced.

2008 2009 2010 2011 2012 2013 2014 2015

Cost 540 837 652 494 838 222 1 152 907 1 231 343 1 281 964 1 473 153 1 619 260

Acc Depreciation 131 583 145 518 181 396 246 329 275 443 248 146 282 869 119 248

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

Property, plant and equipment

2008 2009 2010 2011 2012 2013 2014 2015

Investment 52 9 242 247 285 342 577 640 481

-

100 000

200 000

300 000

400 000

500 000

600 000

700 000

R’000

Total Investments

2007 2008 2009 2010 2011 2012 2013 2014 2015

NSFAS 64 2 83 2 123 147 181 268 275 284 289

Generalsponsors

16 6 43 3 47 2 80 0 86 2 65 86 61 2 51 6 46 3

VC's meritaward

4 07 4 70 3 86 4 29 1 65 1 94 2 61 3 03 3 87

-

50 000

100 000

150 000

200 000

250 000

300 000

350 000

R’000

NSFAS and other funding

2013 2014 2015

Infrastructure 190 740 220 694 334 477

Own 386545 419424 147313

-

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

R’000

Investments break down

4. Univen

Recommendations

Univen’s Submission to Fees

CommissionFinancial implications

• 0% - loss of R160m in 2021; 6% - loss of R13m in 2021; 8% - surplus of R69m in 2021

indicating serious financial implications.

• Univen require an 8% adjustment to be able to sustain itself.

• Student debt is rising at an alarming rate due to #FeesMustFall and need to be curbed with

clear messages.

• Tuition and residence fees. Unclear whether residence fees are part of #FeesMustFall. We

recommend outside tuition fees.

• Cost of maintenance, cleaning and utilities rising sharply and universities to take steps to

curb rising costs.

• Engage with Local Government to create special category rates, taxes and utilities to

Universities at reduced rates. Municipalities to give rebates to Universities. Propose a 25%

rebate.

• Time taken to receive clear direction has negative impact on budget processes.

• HDI Development Fund to be implemented in 2017 failing which rural universities will revert

back to their previous disadvantaged status vis-à-vis urban universities;

• Engage National Lottery to devise new category of assisting Universities;

Students

• Univen students decided not to affiliate with SAUS (South African Union of Students) for 2016;

• Univen students “talk” rather than “strike”;

• Univen students feel our circumstances different to other universities.

Restructuring

• All Universities to finalise scenarios and its impact;

• All Universities to present impact analyses, possible rationalisation plans such as closing of

departments and retrenchment of staff;

• All Universities to present austerity measures to be implemented across the business of the

University;

• Univen to start with fundamental transformation and rationalisation plan;

• Regional discussions between business and Universities on increasing internships and bursaries –

tax breaks;

• SRC monitoring quality of teaching and all need to do this;

• Obtain agreement for DHET to utilize interest in investments at the discretion of the University

without prior permission from DHET as long it remains within the earmarked objectives e.g.

infrastructure for new infrastructure, efficiency funding for efficiency projects;

Univen’s Submission to Fees

Commission (cont.)

Univen’s Submission to Fees Commission

(cont.)• Allow Universities to dispose of unused land if no plan to use it in future;

NSFAS

• Students who qualify for financial aid through NSFAS and chooses to study at a university were requested

not to exclude them due of insufficient funds. How to recover the funds. Qualify and wait for funding.

• Rumour has it that NSFAS wants to give funds directly to students from 2017/2018. They must then pay

tuition and residences to the universities. This will be a disastrous decision.

• Bursaries and NSFAS – not repay NSFAS instead allow Universities to re-allocate to deserving students.

• Provincial Government should guarantee more merit bursaries for deserving students in all categories

whose post–matric study choices respond to the national skills demand.

• Universities should be given the latitude to manage allocated funds to suit their unique students’ needs.

Prioritise registration and tuition fees. Then look at books and meal allowances on remaining monies. Now

NSFAS receive direct applications and allocate books and meals.

• Those Universities who want, should be allowed to do virtual online learning to off-campus students to

relieve pressure for on-campus lecturing to assist in massification of HE teaching and learning. NSFAS

funding to incentivise throughput and enhance academic quality;

• NSFAS funding should not perpetuate sectoral inequality;

• SARS must assist with household income data for prospective NSFAS students;

Thank you

Ndo Livhuwa

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