1. Portfolio Committee on Higher Education & Training 07 September 2016

2. Presentation Content Introduction & Background
Governance Overview and implementation of Post Administration Improvement Plans
Financial Overview and Management
Infrastructure Development and Student Housing
Administration of NSFAS bursaries to students
Teaching & Learning : Student Academic Performance for 2015
Allegations of Fraud and Corruption on selling of certificates
De-accreditation of Bachelor of Social Work programme
Plans to fill vacant posts
Progress and outcomes of disciplinary hearings
Preparation for the 2017 academic year
Ongoing Operational Issues

3. Introduction & Background
Established in 1960
Comprehensive University in 2003
Two campuses (Urban Campus in Richards Bay and Rural Campus in KwaDlangezwa)
Four Faculties : Arts; Commerce, Law and Administration; Science and Agriculture; and Education

4. Administrator Report to Council -18 April 2011 to 8 October 2013 - 11 key priorities
Institutional governance
Alignment of the Management Model (to strategic objectives)
Critical Projects (e.g. infrastructure development)
Institutional commitment
Institutional culture
Institutional and academic leadership
Improved effectiveness and efficiency
Transformation and Staff Development
Student Relations
University of Zululand Foundation
Staff housing
Progress Report to Minister, Nov 2015

5. Continued redress through Strategic Plan 2016 – 2021
Improve governance through enhanced operations to support the academic enterprise and ensure sustainability
Create a quality teaching and learning environment as a comprehensive University.
Enhance research and innovation.
Enhance the quality and profile of UNIZULU graduates
Develop ways to manage the national, regional and international reputation of UNIZULU.
Accelerate infrastructure development
Strategic Goals

6. Internal Structures in Place
Council
Institutional Forum
Senate
Student Representative Council
Senior
Management

7. Meeting External Benchmarks
Effective Ethical Leadership
Custodian of Corporate Governance
Audit
Risk Governance
IT Governance
Compliance
Internal Audit
Stakeholder Relationships
Integrated Reporting
King 3 Principles

8. Governance Improvements Confirmed
Annual Report 2015:
Going Concern
Effective Risk Management
Effective Internal Controls
Compliance
Fulfil Fiduciary duties
Sustainable

9. Operational developments flowing from sound Governance
Alignment of the Management Model and Institutional and Academic Leadership :
Senior management structure reviewed and modified
Faculty structure reviewed and aligned
Senior team appointed (within last 6 months)
Student Relations
SRC constituted in 2015 following elections and unsuccessful legal challenges;
Close engagement with SRC meant no issues re #feesmustfall in late 2015 and early 2016, resulting in timely exams 2015 and registration 2016
University of Zululand Foundation
Director made permanent member of University Management Committee
Staff Housing
On-campus housing for VC and staff: abuses being resolved
Campus violence posed safety risk to VC
No suitable housing for senior management
Council resolved to establish secure off-campus housing for senior staff

10. Financial Overview (based on Mid-Year Performance Report 2016)
Sources of Income by Proportion
Income at 86% of annual total, expenditure at 42%
To be expected due to sources of income and pattern of payments (e.g. July salary adjustments)

11. Expenditure underspend
20% vacancies – being addressed aggressively (Recruitment and Retention Policy)
Capital expenditure (R43m) at 14% of budget (R304m)
200m due to infrastructure (see later), so at 42% of budget by mid year

12. Cash Position Current cash/investments R1.4bn. Reflects:
Early receipt of revenue, delayed expenditure;
Delayed spend on Specifically Funded Projects (R500m)
R80m annual underspend on unfilled posts
Current operations generate c. R100m annual cash flow for CAPEX
Required CAPEX:
Academic buildings to meet DHET space norms: 70,000 m2 (R1.5bn)
Additional 7,000 bed spaces to achieve 70% provision (R1.5bn)
Backlog maintenance (c. R1.5bn)
Total of R4.5bn
Not achievable from existing cash and asset base.

13. Infrastructure Development including Student Housing
DHET infrastructure funding of c. R400m awarded in 2013
Tenders awarded but procurement process challenged
Court settlement agreed in October 2015 and finalized in June 2016
Council mandated single turnkey solution and in-house engineer to lead
Engineer took up post on 1 September 2016, who will lead and drive tender, procurement and implementation process

14. In the meantime New 250 bed residence under construction
Completion date December 2016
Funded by DBSA loan
Request to Minister: 2 bedroom apartment block in Richards Bay using residence funding from infrastructure grant
(decision pending)

15. Administration of NSFAS Bursaries to Students
History of top slicing
Impact:
Significant historic debt
Artificially depressed academic fees, residence fees and allowances
Fixed sector wide percentage increase on fees unhelpful
Cements previous disadvantage and underfunding
Fixed Rand value increase in fees and allowances best way to support Historically Disadvantaged Institutions
NSFAS move to student centred model will assist as long as institutional allocations abandoned.

16. Student Performance

17. Student Performance (continued)

18. De-Accreditation of Bachelor of Social Work
Notice of withdrawal of accreditation
Teach out plan submitted to CHE for approval
Re-curriculation and designing of the new BSW programme commenced for submission in 2017

19. STAFF ESTABLISHMENT PER FACULTY AND PROFESSIONAL SERVICES DIVISIONS
Vacant Posts
STAFF ESTABLISHMENT PER FACULTY AND PROFESSIONAL SERVICES DIVISIONS

20. Plans to Fill Vacant Posts
Vacancy rate of 23.3% - mainly in Professional Services Divisions
Focus on filling academic posts to deliver teaching and learning activities.
Review of long standing vacancies within the Support Services Divisions
Human Resources division now has a full complement of HR Business Partners who will focus on reducing the vacancy rate.

21. Plans to Fill Vacant Posts (continued)
Posts within Faculties, that are difficult to fill because of seniority and scarce skills are prioritized and in the interim the following applies
Appoint staff on fixed term contracts whilst searching for suitable candidates
Head hunting
Use promotions to fill vacancies at higher levels as per policy
Advance planning to deal with instances of retirements

22. Plans to Fill Vacant Posts (continued)
To manage high turnover, University Management
has introduced a Remuneration Policy which pitches salary packages of academics at 75th percentile of the higher education sector market;
has introduced a performance appraisal scheme;
is introducing a pay progression model based on the performance appraisal scheme;
is implementing training, development and mentorship programmes

23. Progress and Outcomes of Disciplinary Hearings
2014 forensic audit – discovered fraudulent events during time of administrator relating to:
Infrastructure Development; and
Theft of R11.5 million
Senior management suspended resulting in
2 Senior Management Resignations
2 Senior Management Settlements

24. Preparation for 2017 Academic Year
APP in place – awaiting Council approval - KPA’s identified as per Strategic plan
#Feesmustfall – 0% and 6% budgets being prepared
Enrolment Targets set (until 2019)
Registration plan in place – Online/Manual
Additional residence beds at Kwa Dlangezwa and Richards Bay (subject to Ministerial approval)
Infrastructure Development – Turnkey
Richards Bay Campus Development – Student Residence & Engineering/Maritime programmes
Arrangements for SRC Elections in place
Performance Management/Peer Review will commence

25. Ongoing Operational Challenges (contd.)
High vacancy rate
Reduced since 2015
Recruitment and retention strategy
Salary realignment (75th percentile)
Introduced performance management
Extended housing benefits to senior management
Alleged fraud regarding expenditure on senior management houses
Council authorised and approved expenditure
Budget approved for expenditure
Allegations of protected disclosure rejected by Labour Court and rejected again on appeal
Degrees for sale
A history dating back to before the days of the Administrator
Counterfeit certificates claimed but none ever produced
Internal counterfeiters dismissed
Internal systems robust as demonstrated by identification of fraudulently claimed degrees
Internal irregularities identified through internal controls
Internal controls to be enhanced in 2017 through electronic as well as manual checks.

26. Ongoing Operational Challenges (contd.)
Industrial action
NEHAWU tabled 11 demands as pre-conditions to negotiate 2016 salary increases
2 primary demands identified for resolution before consideration of remainder:
Insourcing of co-operatives, formed following retrenchments in 2001
Pay progression, to be backdated to 2001
Insourcing/outsourcing complicated by co-operatives formed in 2001 and subsequent company formations
Proposal for resolution considered by HRCC and recommended to Council for its meeting late September 2016
Pay progression: a performance based proposal tabled by management

27. Industrial Action
Cost of implementing NEHAWU demands for two primary demands alone would be over R200m per annum or 50% of current salary bill
University tabled written offers to all 11 demands
Specifically it:
proposed the insourcing of gardening, cleaning and maintenance services currently delivered by co-operatives;
offered to re-employ all members of the co-operatives that were retrenched in 2001 , as per the original agreement;
offered to employ other members of the co-operatives with appropriate skills, to meet the operational demand;
proposed a performance based pay progression scheme with 3 alternative proposals for compensation for delayed implementation.
All proposals were rejected by NEHAWU

28. Industrial Action (contd.)
CCMA Commissioner facilitated negotiations
Strike ongoing into 4th week (cleaning and gardening co-operatives refuse to join the strike action)
NEHAWU dispute the condition of no work no pay (in the recognition agreement and confirmed by CCMA)
NEHAWU reject all offers by University management and maintain original demands – not negotiating in good faith
Instigating student involvement in their cause – 1 NEHAWU executive already found guilty in disciplinary case, other cases pending

29. Student Unrest
Lawsuits in 2015 reflect political disharmony and lack of acceptance of representative democracy
Contained for last 9 months
Increasing number of student splinter groups approaching University management rather than SRC
SRC elections upcoming this month has exacerbated national political rivalries
Laptops
Catering
Inadequate accommodation
NEHAWU influence – NEHAWU leader found guilty of multiple disciplinary charges including inciting student unrest
Violence and vandalism led to suspension of academic activity on KwaDlangezwa campus
Disciplinary action taken against perpetrators of violence and damage

30. Student Unrest (contd.)
SRC executive engaged
SRC to bring proposals on Thursday as to how further student violence can be contained when academic programmes reopen
SRC elections to proceed
Support for students in applying for Student Centred NSFAS model
Richards Bay campus operating normally

31. Thank you for Your Attention