1. Finance Directorate Budgets & Management Accounting
BUDGET COUNCIL 3 OCTOBER 2008 FINANCE DIRECTORATES BUDGETS AND SPECIAL PROJECTS

2. Agenda Introduction Factors impacting on budget Unisa CPI projection
Strategic Resource Allocation Model (SRAM)
Budget summary
Major items on budget
Managing HR costs
Support to honours students
Unisa reserves
Student service improvement initiatives
Risks/challenges
Income statement
Pricing Model
2009 Fees

3. Factors impacting on budget
Income
Subsidy projections from DoE
Subsidy based on enrolment targets
Fee increases below CPI
Pressure on investments resulting from capital investments
Expenses
BMR engaged on Unisa CPI
Increases on operational budgets capped at CPI
Increasing allocations to academic- and primary support divisions
Substantial investments in property developments
Full provision for all academic staff points including tutor costs
Pressure on budget resulting from HR costs
All office furniture items ring fenced pending finalisation of policy
Excludes SBL budget

4. Unisa CPI projection

5. Strategic Resource Allocation Model

6. Strategic Resource Allocation Model

7. Budget summary Income Subsidy R1,227 billion
Tuition fees R1,519 billion
Investment income R million
Other income R million
Total income R3,739 billion

8. Budget summary Expenditure Remuneration R2,073 billion
Supplies & Services R1,078 billion
Depreciation R million
Bursaries & research R million
Capex
(to be depreciated) R million
Strategic projects R million
Total expenditure R3,501 billion

9. Major items on budget Operational Amount %
HR costs R 2,073 billion 63.9%
Permanent staff - R 1,867 billion
Temporary staff - R million
Tutors - R million
Overtime - R million
ICT costs R million 7,1%
Printing R million 3,1%
Postage R million 2,2%
Municipal services R million 1,9%
Rental of buildings, venues R million 1,9%
Marketing R million 1,4%
Training R million 1,1%
Building maintenance R million 1,1%
Bursaries R million 0,6%

10. Managing HR costs Overtime back to 2007 level R 9 million savings
Temporary appointments to be
funded against approved posts R 17 million savings
Other factors responsible for increase in staff costs:
Staff points for tutors R 89 million
C1 value increase R 77 million
C1 value from 30th-50th percentile R 67 million
Difference in % annual increases
R 96 million
Current vacancies:
Academic vacancies
Support staff vacancies
Gradual imple-mentation from2009
Market related academic salaries
Market related general increase for 2009

11. Support honours students
R20 million Bursaries:
R3 million to honours students
Currently in form of loan, but
40% translated into a bursary upon successful completion within prescribed period
Further accumulated bursary funds:
Undergraduate R8.8 million
Postgraduate R2.9 million

12. Major items on budget CAPEX Furniture, equipment R34 million
Buildings 2008/9 and beyond as per property plan
New entrance R219 million
Florida campus project R200 million
New registration building R158 million
Irene conference facility R148 million
Buildings 13, R 71 million
Polokwane R 39 million
OR Tambo 2nd,4th & 5th R 30 million
Film auditorium R 11 million
Maintenance projects R 73 million

13. Unisa reserves

14. Student service improvement initiatives
Florida science hub R million
New registration building R million
Strategic projects R million
Upgrade regions R million
Tutor project R million
Sunnyside R million
Unisa Bursaries R million

15. Risks/challenges HR costs increasing: now 64% of operational budget
Large amounts of cash utilised for building projects
Possible stabilisation/decrease in student numbers
Financial and logistical impact of tutor project
Important to start costing full impact of ODL
Outsourcing of printing to be carefully considered
Financial implications of IPMS rollout
Impact of rolling forecasts
Full alignment of IPMS to rolling forecasts
Alignment of individual budgets to IOP

16. Income statement

17. Pricing Model

18. Pricing Model Income Expenditure Fee Strategy - + = Student fee income
State input subsidy
Expenditure
Total cost per module
Fee Strategy
Breakeven - + =

19. HE Market FTE

21. Undergraduate

22. Honours

23. Masters Taught

24. Master Research

25. Doctoral

26. Tuition fee comparison
Degrees
Unisa UP UJ
Wits US
UCT
Average fee - Comparisons
% Price difference BA
R 8,750.00
R 18,073.00
R 17,050.00
R 26,059.00
R 19,143.30
R 25,300.00
R 21,125.06
59%
BCom
R 10,260.00
R 23,694.00
R 18,095.00
R 28,721.00
R 29,700.00
R 23,870.66
57%
BSc
R 7,550.00
R 24,343.00
R 17,743.00
R 29,799.00
R 24,145.66
69%
Law
R 23,760.00
R 24,849.00
R 21,895.50
R 26,400.00
R 22,929.50
62%
MA/MSc
R 8,450.00
R 16,962.00
N/A
R 20,900.00
R 13,035.00
R 16,986.75
50%
PhD
R 9,150.00
R 16,500.00
R 11,660.00
R 8,569.00
R 9,042.00
R 11,442.75
20%

27. THANK YOU!