1. Induction Programme Deans and Heads of Departments
TUT FINANCES
Part 1 Financial Model
Part 2 Budgeting Process

2. PART 1 FINANCIAL MODEL INDEX Corporate Governance Structure Compliance
Income Model
Expenditure Model
Financial Sustainability
Accounting Structure
Education and General Activities
Specifically Funded Activities
Student and Staff Accommodation

3. Corporate Governance Structure

4. Compliance King II Code Public Finance Management Act No. 1 of 1999
Higher Education Act No. 101 of 1997
Public Audit Act No. 25 of 2004
Regulations for annual reporting No of 2003
General Accepted Accounting Principles (GAAP) and Statements (IFRS)
Financial Policies, Rules and Regulations

5. Income Model Government Subsidy Block Grants Earmarked grants
Own Income
Student Fees
Third-stream income

6. Government Subsidy Block Grants - Teaching input * - Teaching output *
- Teaching output development
- Research outputs *
- Research development
- Institutional factors
* Detailed in following tables

7. Subsidy Model (Teaching input)
Funding Grid
Weightings

8. Subsidy Model (Teaching output)

9. Subsidy Model (Research outputs)

10. Government Subsidy (cont)
Earmarked Grants
Student financial aid (NSFAS)
Institutional restructuring
Finance Cost (Loan subsidy)
Community development projects

11. Own Income Model Student Fees Subject Fees Subject Levies
- Tangible items
- Consumable material
- Direct service
Third Stream Income
Short Courses
Research Grants
Centres, institutes and campus businesses
Donations and grants

12. Expenditure Model Personnel Expenditure Salary expenditure
Post-retirement provisions
Other expense items
Goods and Services
Finance Cost
Capital expenditure

13. Financial Sustainability
Improve Wealth
Budget for surpluses
Improve liquidity
Improve solvency

14. Balance Sheet 2005

15. Accounting Structure Consolidated Results Financial accounts
Management accounts
Financial Accounts
Balance sheet
Income statement
Cash Flow statement
Management Accounts
Education and General
Specifically funded activities
Student and Staff Accommodation

16. Education and General Subsidized Activities (B-cc’s) - Faculties
- Support Divisions
Other Education & General Activities
- Short Courses (D-cc’s)
- Independent Funds (E-cc’s)
- Departmental Funds (F-cc’s)
- Book/Trusts Funds (G:b-cc’s)
- Institutes & Centres (H-cc’s)
- Campus Businesses (J-cc’s)
- University Research (L-cc’s)
- Loan Funds (S-cc’s)
- Reserves (U)

17. Specifically Funded Activities
Projects (G:a-cc’s)
Bursary Funds (K-cc’s)
NRF Funds (M-cc’s)
Research Other (Ext) (N-cc’s)

18. Student and Staff Accommodation
Residences
Flats
Guest Houses
Restaurants
Catering

19. PART 2 BUDGETING PROCESS
INDEX
Link to Strategic Objectives
Financial Planning Tool
Budget Process
Budget for 2007
Benchmarks
Sources of Funds
Application of Funds
Budget Control
Management Reports
Contact Persons

20. Link to Strategic Objectives
Institutional Operating Plan for as approved by the Department of Education over the longer term.
Key Performance Indicators and TUT targets as defined by goals, objectives and measurable activities over the medium term.
Focus areas for increased efficiency on the short term.

21. Budget Process
Budget templates are distributed to all cost centre managers for completion
The Financial Control Department liaises with all DVC’s, Deans and cost centre managers to address any problems or queries.
Executive Management Committee (EMC) members to finalize their allocations with their sections
Finance prepares the final document for the Finance, Planning and Resources Committee (FPRC)
FPRC formulates a recommendation to Council
Approval by Council
Loading of budget onto the accounting system (ITS)

22. Budget for Education and General Activities for 2007
Benchmarks
Sources of funds
Application of funds

23. Benchmarks
Department of Education (DoE) benchmarks (as contained in the Institutional Operating Plan (IOP)):

24. Sources of Funds

25. Application of Funds

26. Budget Control Signing authorities are assigned to each cost centre
Budget is managed per line item (account)
Obtain quotes or tenders through the Procurement Department
Ensure enough funds before placing an order through Procurement Dept.
Funds can be moved by budget managers between accounts within a cost centre.
Veriments between cost centres must be done through the Financial Control Department.
Commitment is raised after placing an order to provide for the payment of invoices.

27. Spending of Capital Budgets
Capital expenditure during the first quarter is discouraged in general.
Efforts must be made to extend payment beyond 1 April.
Spend capital budgets evenly throughout the period 1 April to 30 September.
Procurement of orders for capital projects close on 30 September.
Procurement of orders for all other capital items close on 30 October.
Be in time to commit the current budget funds for 31 December.

28. Management Reports Sources of Information Accounting System (ITS)
Management Information System (MIS)
Access control to be arranged through the Financial Control Department:
Ms Petro Barnardo x 5051

29. Contact Persons Financial Strategies and Planning:
Chief Financial Officer: Dr Doeke Tromp (x5056)
Policy and Controls:
Director: Financial Control: Mr Theo Madurai (x5054)
General Ledger:
Senior Accountant: Financial Control: Petro Barnardo (x5051)
Accountant: Financial Control: Alida van der Walt (x5715)
Budget:
Senior Management Accountant: Gillie du Toit (x5697)
Accountant: Budgets: Raymond Lebethe (x4956)

30. End of Presentation
Thank you!