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or Humanity - f • a Le ic s fr e A d i l m a o r PUBLISHED BY: A f f t r i Office ofh the Registrar, Sol Plaatje k University

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EDITORIALa TEAM Mr Hollie Clarkson Ms Annemarie van der Nest Ms Marietjie Grobbelaar

DESIGN AND LAYOUT SwiftPrint, Kimberley

PRINTING SwiftPrint, Kimberley or Humanity - f • a Le ic s fr e A d i l m a o r A f f t r i h k

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k SECTION ONE: GOVERNANCE a

Reports of the Interim Council and full Council 1.1 Introduction...... 2 1.2 Performance Assessment Report...... 3 1.3 Report by the Chairpersons of the Interim Council and the full Council...... 4 1.4 Council Statement on Governance...... 6 1.4.1 Reporting Structures for Governance and Operations...... 7 1.4.2 Composition and Meetings of the Interim Council...... 8 1.4.3 Composition and Meetings of the full Council...... 13 1.4.4 Significant matters considered by the Interim and full Councils...... 23 1.5 Council Statement on Sustainability...... 24 1.6 Report on Exposure, Assessment and Management of Risk...... 25 1.7 Report of Senate to Council...... 26 1.8 Report in lieu of Institutional Forum...... 26 1.9 Report on Transformation...... 27

SECTION TWO: OPERATIONS

Reports on Operational Functions and Activities 2.1 Report of the Vice-Chancellor...... 30 2.2 Academic Programmes...... 33 2.3 Student Applications, Registration and Academic Performance...... 33 2.4 Staffing Development and Staff Profile...... 37 2.5 Operational Sustainability, Financial Health and Funding Sources...... 38 2.6 Facilities and Major Capital Works...... 38 2.7 Governance Arrangements for Infrastructure Projects...... 42 2.8 Expanding ICT Capacity...... 44

SECTION THREE: FINANCE

3.1 Annual Financial Review...... 46 3.2 Annual Financial Statements 2014...... 50-74 Council’s Statement of Responsibility for Annual Financial Statements

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GLOSSARYa OF TERMS, ABBREVIATIONS AND ACRONYMS g

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Annual Report Each public higher education institution must produce an Annual Report (as well as an annual Mid-Year report), which provides information on the performance of the institution for the preceding financial year and which must be signed by the Chairperson of Council and the Vice-Chancellor

ARMC Audit and Risk Management Committee of Council

Audited Means audited in accordance with International Standards on Auditing, as issued by the International Auditing and Assurance Standards Board (IAASB), and the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004)

Auditor Any person registered as such in terms of the Auditing Profession Act, 2005 (Act No. 26 of 2005)

CHE Council on Higher Education

COO Chief Operating Officer

Council The governing body of the University and the body as contemplated in terms of paragraph 9 of the Standard Institutional Statute

Council-controlled funds The total of all funds, both encumbered and unrestricted, that are under the control of the Council, but does not include restricted funds

CPUT Cape Peninsula University of Technology

Designated funds Funds under the control of Council, designated or earmarked for specific purposes by Council

DHET Department of Higher Education and Training

EXCO Executive Committee of Council

Executive Management The employees of a public higher education institution designated as such in its Institutional Statute (or the Standard Institutional Statute, as applicable), and includes without limitation the Vice-Chancellor, Deputy Vice-Chancellor(s), Registrar, Deans and Executive Directors, or equivalent officers

Financial year A year commencing on the 1st of January and ending on 31st December, and (also ‘Academic year’) also the period covered by the Annual Report

HEQC Higher Education Quality Committee

Higher Education Act Higher Education Act, 1997 (Act No. 101 of 1997), as amended (also ‘the Act’)

IC Interim Council

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NIHE-NC National Institute for Higher Education - Northern Cape

NSFAS National Student Financial Aid Scheme

NWU North-West University

PAA Public Audit Act, 2004 (Act No. 25 of 2004)

Regulations Regulations for Reporting by Public Higher Education Institutions, in terms of section 41 read with section 69 of the Higher Education Act, 1997 (Act No. 101 of 1997), as amended, and as published in Government Notice No. R464, issued on 9 June 2014

Restricted funds Those funds of a public higher education institution that may be used only for the purposes that have been specified in legally binding terms by the provider of such funds or by another legally empowered person

SAQA South African Qualifications Authority

SETA Sector Education Training Authority

SIS Standard Institutional Statute

SPU Sol Plaatje University (also ‘the University’)

SRC Students’ Representative Council

SRF Students’ Representative Forum

UFS University of the Free State

University Sol Plaatje University (also ‘SPU’)

Unrestricted funds Funds that fall within the control of the Council and do not include restricted funds or designated funds

Vice-Chancellor The Chief Executive and Accounting Officer of a public higher education (also ‘V-C’) institution, as contemplated in terms of section 30 of the Act, and includes the term Principal and, in the case of SPU during the period under review, Interim Head

WITS University of the Witwatersrand, Johannesburg

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TELEPHONE NUMBER: 053 491 0000

BUSINESS ADDRESS: Chapel Street KIMBERLEY 8301

AUDITORS: PricewaterhouseCoopers Inc. P.O. Box 32 KIMBERLEY 8300

UNIVERSITY BANKERS: First National Bank A Division of First Rand Bank c/o Bultfontein and Long Street KIMBERLEY 8301

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a programmes, a Bachelor of Education, a Diploma in g

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i k GOVERNANCEa their first year of study. With significant planning and design assistance from Reports of the Interim Council the New Universities Project Management Team based at the University of the Witwatersrand (WITS), and Full Council construction of new buildings and infrastructure required for the 2016 academic year was started in 1.1 Introduction October 2014. This represented the commencement of the first phase of a new building construction In this second Annual Report of Sol Plaatje University programme that is expected to continue over the (SPU), we report on the institutional, academic and next ten to twelve years to provide modern learning operational development and performance over the and administrative facilities for approximately 7 500 first full academic year in our University’s existence. students.

The report covers four broad areas of the operation of Expenditure continued to be managed by the University: separating operational expenditure from planning • Governance and institutional capacity and infrastructure development expenditure. The development agreement between the Department of Higher • Academic performance in enrolments, academic Education and Training (DHET) and WITS, in which programme implementation and development, funding for planning and infrastructure development at SPU is to be administered by the finance and and student performance procurement systems at WITS, was extended to the • Development of infrastructure and facilities to end of March 2016 and these arrangements therefore support growth of the University continued throughout 2014. On the other hand, the • Financial management, performance and University’s operating funds, made up primarily of sustainability an earmarked grant from the DHET, were received directly by SPU and are reported on separately. During February 2014, the term of office of the Interim Council was extended for a further six months The University also developed and adopted an by the Minister of Higher Education and Training. Academic Plan for the five year period 2014 to 2018, After a public nomination process, as prescribed as well as its first Strategic Plan for the period 2015 by the Standard Institutional Statute, a full Council to 2019. This current Annual Report is therefore comprising 24 members was elected and inaugurated presented without reference to a formally agreed on 19 August 2014. The existing Committees of the Strategic Plan or Performance Plan for 2014. Interim Council were then extended in membership However, the performance and delivery expectations and remit as appropriate and reconstituted as were clearly determined by the Interim Council and Committees of the new Council. the Executive Management of the University was appropriately held to account for performance against Acquisition and refurbishment of property, buildings such expectations. and facilities was suitably completed to allow an unhindered commencement of the academic year. As is to be expected in the case of a new University, The Legislature Building and William Pescod School many of the activities for 2014 were focused on buildings in the inner city of Kimberley, as well as establishment and early consolidation of the two buildings acquired by SPU for student residence University. This is recognised as an important accommodation, were the focus of the refurbishment developmental period for the new university, as it lays project and became the principal infrastructure of the institutional and governance foundations that are the new University in 2014. The academic year was to serve the functioning of Sol Plaatje University for started with the University offering three academic years to come. “The new building construction programme... is expected to continue over the next ten to twelve years to provide modern learning and administrative facilities for approximately 7500 students.”

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i k extended in February 2014 to August 2014, camea to an end. A full Council was constituted on 19 August This annual report addresses matters of governance, 2014, in accordance with the Standard Institutional management and academic activities. It also reports Statute (SIS). This Annual Report therefore presents on the developments and achievements towards the operational matters and performance outcomes attaining the goals envisaged in the University’s of the University over a time period that was overseen establishment. It is prepared in compliance with the partly by the Interim Council and partly by the full requirements of the Manual for Annual Reporting of Council. Higher Education Institutions. The University Council is aware of and strives to abide by the general In this early development of SPU, the important principles and codes of governance contained in strategic goals and objectives for the 2014 period the King Report on Corporate Governance in South were: Africa, 2009 (King lll). (See Section 1.4) • To recruit and register the first cohort of 125 students in three academic programmes offered Sol Plaatje University (SPU) was formally established at the University at the first-year level of study; with the publication of Government Gazette Number • To recruit and develop the necessary academic 36771 on 23 August 2013. This report describes the staff to competently deliver the academic consolidation of activities that typically accompany programmes in a manner that maximises student the formation of a new university – registering the first learning opportunities; cohort of students, implementing the first academic • To refurbish sufficient physical teaching and programmes, managing the first examinations residence spaces to meet the learning and and assessment processes, as well as extramural accommodation needs of the registered students; activities associated with the functioning of a • To develop the necessary laboratory, information university. technology and related teaching and learning facilities for delivery of the first year of study of Good governance principles demand that reporting the academic programmes; of this nature integrates concepts of sustainability • To develop suitable management and and social transformation. SPU is committed to this administrative capacity, in the form of financial, approach in its annual reporting and we have strived human resource and student systems, policies to adhere to this approach in the report. (See also and processes to support delivery of the Sections 1.9, 2.5 and 3.1 of this report.) This ensures academic programmes; that such an approach becomes a normal part of the • To further rehabilitate the existing buildings, way in which the University will respond to general develop and implement plans for construction of expectations of accountability in all that it does. new buildings and facilities for the expansion of the University in 2015 and beyond; and This Annual Report covers the operations of • To govern and manage the University in a the University over the first academic year of its manner that ensures financial and operational existence. It must be appreciated that this will sustainability in an environment of acknowledged have been a time in the life of the University when and managed risk. systems and processes were still under development. Importantly, while governance structures and Council is satisfied that these goals and objectives oversight were firmly in place, the University operated were suitably met and has not had cause to raise in 2014 without a documented and approved Strategic concern on any particular aspect of the performance Plan nor an Annual Performance Plan. and operation of the University during 2014.

______MS JA GLENNIE JUDGE JY MOKGORO PROF Y BALLIM Chair of the Interim Council Chair of the Full Council Interim Head

AS AT 31 DECEMBER 2014

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i k In thisa first year of the actual commencement of academic activities at SPU, members of both the former Interim and Full Councils were honoured The legislative framework used by the Minister of and excited by their contribution to this milestone Higher Education and Training to establish Sol Plaatje year in the life of the new University. Members University in August 2013, allowed for an Interim continued to nourish the idea that the University is Council to be established for a six-month period. This to reflect the hopes and dreams of South Africans framework also allowed the Minister to extend the – social and economic development of the region, a appointment of the Interim Council for one further flourishing democracy with deeply felt social justice period of six months. This was done in February 2014, as an expression of the values embedded in our with the clear understanding that the Interim Council constitution. was to complete the process of establishing a full Council of the University before its mandate expired. Council members were also mindful of the vision This process was successfully completed and the full and commitment of the University to its knowledge- Council was formally inaugurated on 19 August 2014. based partnership and collaboration with national Sol Plaatje is justifiably proud of the calibre of the and provincial government, with the municipality Council members recruited to the full Council. This for development initiatives in the region, with the is testament to the excitement that the establishment private sector and with universities and educational of the University has engendered, and to the sterling institutions across South Africa and in the region. In work done by the various parties in launching the new acknowledging its role as the highest governance University. structure at the University, Council sought to give expression to this vision and commitment through The Committees of the Interim Council became developing, supporting and defending an operational firmly established in 2014 and were able to hand University that is properly governed, managed and over Charters, policies and a trajectory of work to the appropriately resourced. Committees of the full Council for their consideration and ratification. These Committees continued to Overseeing the early operation and development of provide guidance and approval of appropriate policies, the University, required all members of Council to take procedures and support mechanisms to allow the appropriate responsibility for aspects of institutional Management Team to undertake the necessary development such as: work of developing the University. Importantly, • the continued development and refinement of Council approved a five-year Academic Plan for the policies and procedures; development of the University. • providing oversight to how teaching and learning The 2014 year saw significant expansion in the is conducted; number of staff at the University, from four staff • how staff are recruited and inducted; members at the end of 2013 to 16 staff members at • how finance and procurement is arranged; the start of the first teaching block in February 2014, • and in how accountability is ensured for each including ten academic staff. Council also oversaw action. further growth to 33 staff members by the end of 2014.

“Sol Plaatje is justifiably proud of the calibre of the Council members recruited to the full Council. This is testament to the excitement that the establishment of the University has engendered, and to the sterling work done by the various parties in launching the new University.”

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i k An important feature of the development of the a University that will demand Council’s careful attention constructively planned and executed the operations for a few years to come, is the construction and of the new University. Many have undertaken a development of the physical infrastructure of the wide range of duties to ensure that the first year of University. In 2014, this work progressed well and operation was as smooth and productive as possible. would certainly not have been possible without Prof Ballim, in particular, deserves high praise the extensive and ongoing planning and design for the leadership he has exhibited as well as his support work done by the New Universities Project preparedness to undertake mundane duties when so Management Team. required.

The continued support of the Sol Plaatje Municipality The first cohort of students of Sol Plaatje University in Kimberley and its alignment with the University’s has been a source of great pride to the University, spatial development vision that encompasses as they entered the pioneering spirit of the University integration of the University and the city, was being constructed around them. Their academic much appreciated by Council. The timely initiation results, described in Section 2.3 of this report, were and implementation of the new construction truly remarkable. activities in 2014 was due largely to the proactive support of the planning division of the Sol Plaatje Particular mention should be made of the members Municipality. Council is most grateful to WITS for their of the Interim Council. The passion, committed preparedness to continue overseeing the current support, sound governance, and active involvement phase of construction until March 2016. This will allow when required, of this small and effective team was the Council time to develop the necessary expertise an essential component of this first phase of the to oversee future development. University. They set a culture and entrenched a range of values of which the University can be justly proud.

The newly appointed first full Council has taken on its responsibilities from August, 2014 with great enthusiasm, expertise and diligence.

“…. 2014 saw a significant expansion from four staff members … to 33 staff members by the end of 2014.”

______MS JA GLENNIE JUDGE JY MOKGORO Chair of the Interim Council Chair of the Full Council

19 June 2015

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i k transparency,a independence, accountability, executive role of the Vice-Chancellor and responsibility, fairness and social responsibility, Principal of SPU; as advocated in the King Report on Corporate • The Chairperson of Council serves for a period Governance (King III). Accordingly, Council endorses, of three years; and during the period under review, has applied the • All members of the Interim Council served for Code of Practice as set out in King III. In supporting a period of one year and that all members of this Code, the Council recognises the need to the full Council were newly appointed in conduct the business of the SPU with integrity and August 2014; in accordance with generally accepted practices. • In the light of the short duration of its term of Monitoring the SPU’s compliance with the Code forms office, no formal appraisal of Council or its part of the mandate of Sol Plaatje’s Audit and Risk Committees was conducted during 2014. Management Committee. This statement on Governance was approved at a meeting of the SPU Council, properly constituted and quorate, on 19 June 2015.

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Three Academic Disciplines Deemed Interim head to be Faculties Statutory Chief Operating Structure Registrar * Education Officer Non-Statutory * Information and Structure Communication Technology * Finance * Heads of Academic * Academic *Human Resources * Management Programmes administration Sciences * Infrastructure * Residences and * Computing and Student Affairs As described in Section 2.1, the Students’ networking *Secretariat services Representative Forum (SRF) was constituted in lieu of * Heads of a formal Students’ Representative Council (SRC). The * Heads of Academic Academic Programmes SRF was considered as a necessary, but informal, Programmes interim arrangement to represent the student voice on appropriate academic and governance structures. Statutory Executive Portfolio Structure Management Responsibilities

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Chairperson: Glennie, Jennifer Anne, Ms Executive Director, SAIDE External Member BSc (Hons) (Wits) Member, UNISA Council MA (London) Deputy Chair, UNISA’s ICT and Audit and Risk Management Committees Director, Community Agency for Social Enquiry Director, SchoolNet

External Member Lekwene, Maruping, Mr Head of Caucus in the Office of the Chief Whip (ANC), Northern Cape Legislature

External Member Madonsela, Abel Nyanyana, Mr Head, Public and Corporate Affairs, Northern National Dip in Public Relations and Cape, De Beers Consolidated Mines Business Communication (TUT) Board Member, SABCOHA, Northern Cape B-Tech Public Relations and Business Communication MBA (NWU)

External Member Muthien, Yvonne Gladys, Dr Chairperson, Rhodes Food Group BA (UWC) Chairperson, Sasol Inzalo Foundation BA (Hons) (UWC) Chairperson, Thebe Resource Incubator MA (North Western) Non-Executive Director, Thebe Investment D.Phil (Oxon) Corporation Non-Executive Director, BankServ

External Member Padayachee, Mahavishnu, Prof Professor Extraordinaire, Institute of Social and M Com (Econ) (Westville) Economic Research, Rhodes University PhD (Natal) Professor Emeritus, Development Studies, M.Inst D (Member of the Institute of UKZN Directors) Fellow, Stellenbosch Institute for Advanced MRSSAf (Member of the Royal Study Society of South Africa) Chair, Invoice Clearing Bureau (Pty) Ltd. Chair, Governing Council, Gateway College, Durban

Interim Head Ballim, Yunus, Prof Professor, School of Civil and Environmental BSc (Civil Eng) (WITS) Engineering, WITS MSc (Eng) (WITS) Chair, HEQC PhD (WITS) Member, CHE

Secretary to Interim Du Plooy, Mallory John, Dr Council (Registrar) LSTD (UWC) BA; BEd (UNISA) MEd; DEd (UPE)

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Back row (L to R) Dr MJ du Plooy (Registrar and Secretary to Council), Mr AN Madonsela, Prof M Padayachee, Mr M Lekwene

Front row (L to R) Prof Y Ballim (Interim Head), Ms JA Glennie (Chairperson), Dr YG Muthien

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NAME POSITION Special Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary st Meeting Meeting Meeting Meeting Meeting Meeting Meeting th th th th th th 1 17/01/2014 05/03/2014 01/04/2014 19/06/2014 25/07/2014 18/08/2014 14/05/2014 6 7 9 8 11 10

Glennie, JA Ms Chairperson       

Lekwene, M Mr Member     Apology  

Madonsela, AN Mr Member      Apology 

Muthien, YG Dr Member       

Padayachee, M Prof Member       

Ballim, Y Prof Interim Head       

 Present at meeting

The Interim Council confirmed the composition and membership of its Committees as follows:

COMMITTEE CHAIRPERSON MEMBERS Human Resources Muthien, YG Dr Padayachee, M Prof Committee Ballim, Y Prof Morgan, N Prof * (External member)

Facilities Planning, Lekwene, M Mr Muthien, YG Dr Infrastructure and Information Ballim, Y Prof Technology Committee External member (vacant) New Universities Project Management Team Member Finance Committee Madonsela, AN Mr Glennie, JA Ms Ballim, Y Prof External member (vacant) New Universities Project Management Team Member Audit and Risk Padayachee, M Prof Lekwene, M Mr Management Simelane, S Mr (External member) Committee Ballim, Y Prof ** New Universities Project Management Team Member Remuneration Glennie, JA Ms Madonsela, AN Mr Committee External member (vacant) Ballim, Y Prof ** New Universities Project Management Team Member * Member as from 5 March 2014 ** In attendance

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NAME Position Meeting Meeting Meeting Meeting Meeting* Meeting* th th rd nd th th 7 4 3 24/07/2014 18/08/2014 24/02/2014 16/01/2014 13/05/2014 18/06/2014 2 6 5

Madonsela, AN Mr Chairperson      

Glennie, JA Ms Member      

Ballim, Y Prof Interim Head      

 Present at meeting * Combined Meeting with the Audit and Risk Management Committee

Audit and Risk Management Committee 18/06/2014 24/07/2014 16/01/2014 31/03/2014 NAME Position 4th Ordinary 5th Ordinary 2nd Meeting 3rd Meeting Meeting* Meeting*

Padayachee, M Prof Chairperson    

Lekwene, M Mr Member   Apology 

Simelane, S Mr External member  Apology Absent Resigned

Ballim, Y Prof Interim Head **    

 Present at meeting * Combined Meeting with the Finance Committee ** In attendance

Human Resources Committee 13/01/2014 31/03/2014 18/06/2014 24/07/2014 NAME Position 2nd Ordinary 3rd Ordinary 4th Ordinary 5th Ordinary Meeting Meeting meeting Meeting Muthien, YG Dr Chairperson    

Padayachee, M Prof Member Apology   

Morgan, N Prof External member * -  Apology 

 Present at meeting * Prof N Morgan’s membership was approved at the Interim Council meeting held on 5 March 2014

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 Present at meeting

Remuneration Committee

17/01/2014 13/02/2014 24/07/2014 NAME Position 2nd Ordinary 3rd Ordinary 4th Ordinary Meeting Meeting Meeting Glennie, JA Ms Chairperson    Madonsela, AN Mr Member of Council    Ballim, Y Prof Interim Head *   

 Present at meeting * In attendance

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POSITION name and QUALIFICATIONS OTHER APPOINTMENTS OR POSITIONS

Interim Head Ballim, Yunus, Prof Professor, School of Civil and Environmental (Vice-Chancellor as BSc (Civil Eng) (WITS) Engineering, WITS from 1 April 2015) MSc (Eng) (WITS) Chair, HEQC PhD (WITS) Member, CHE Five (5) members Appointed by the Minister of Higher Education and Training: Deputy Glennie, Jennifer Anne, Ms Executive Director, SAIDE Chairperson: BSc (Hons) (WITS) Member, UNISA Council External Member MA (London) Deputy Chair, UNISA’s ICT and Audit and Risk Management Committees Director, Community Agency for Social Enquiry Director, SchoolNet External Member Madonsela, Abel Nyanyana, Head, Public and Corporate Affairs, Northern Cape, Mr De Beers Consolidated Mines National Dip in Public Relations Board Member, SABCOHA, Northern Cape and Business Communication (TUT) BTech in Public Relations and Business Communication (TUT) MBA (NWU) External Member Muthien, Yvonne Gladys, Dr Chairperson, Rhodes Food Group BA (UWC) Chairperson, Sasol Inzalo Foundation BA (Hons) (UWC) Chairperson, Thebe Resource Incubator MA (North Western) Non-Executive Director, Thebe Investment D.Phil (Oxon) Corporation Non-Executive Director, BankServ External Member Padayachee, Mahavishnu, Professor Extraordinaire, Institute of Social and Prof Economic Research, Rhodes University MCom (Econ) (Westville) Distinguished Professor, School of Economic and PhD (Natal) Business Sciences, Wits M.Inst D (Member of the Professor Emeritus, Development Studies, University Institute of Directors) of KwaZulu Natal MRSSAf (Member of the Royal Fellow, Stellenbosch Institute for Advanced Studies Society of South Africa) Chair, Invoice Clearing Bureau (Pty) Ltd Chair, Governing Council, Gateway College, Durban

External Member Ndzilili, Mandla Mr Chief of Staff, Office of the Premier, Northern Cape Cert. Government Various senior management positions Communications and Head of Ministry, Department of Environment and Marketing and Public Service Nature Conservation, Northern Cape Management Dip. Journalism (TUT) B Tech Public Management (CUT)

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i k Twoa (2) members elected by the Senate: Internal Member Dakora, Edward Atta Naa, Dr Senior Lecturer and Head of Retail Business BTech (RBM) (CPUT) Management Programme, SPU MTech (RBM) (CPUT) Member of the Wholesale and Retail SETA Higher DTech (Marketing) (CPUT) Education and Training group Internal Member Ncube, Zenzo Polite, Dr Programme Head and Senior Lecturer in the BSc (CUBA) Department of Information Technology, SPU MSc (CompSc) (NUST) PhD (NWU) Two (2) members elected by the academic staff who are not members of Senate: Internal Member Hlatywayo, Johane, Mr Lecturer, Faculty of Education, SPU Dip. Education (Zimbabwe Open University) BSc (Zimbabwe Open University) MComm (UKZN) MSc (Env Management) (UKZN) Internal Member Ndawonde, Busisiwe, Ms Lecturer, Faculty of Education, SPU BSc (Hons) (UKZN) PGCE (UKZN) MEd (ScEd) (UKZN) Certificate in Research Design and Methods (Wageningen University, Netherlands) Two (2) members elected by the non-academic staff (support staff): Internal Member Blanckenberg, Lawrence IT Manager, SPU John, Mr BSc (Hons) (CompSc) (UFS) Internal Member Nkonyane, Faith, Ms Residence Manager, SPU BSocSc Hons (WITS) Two (2) members elected by the Students’ Representative Forum (SRF): [These two members served as invitees in the absence of an elected Students’ Representative Council (SRC)] In Attendance Moshe, Thabo Thiopilous, Mr Student, Member of the Residence Committee and of Studying BEd in Geography the SRF, SPU (SPU) In Attendance Motsumi, Solomon Student, Retail Business Management, Member of the Selaotswe, Mr Residence Committee and the SRF, SPU Studying Retail Business Management (SPU)

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i k Ten (10) members Appointed by Interim Council: a External Member Akharwaray, Goolam Municipal Manager, Sol Plaatje Municipality Hoosain, Mr BProc (UCT) LLB (UFS) Certificate in Management (UCT) Certificate in Municipal Financial Management External Member Bloem, Barbara Marcia, Ms Executive Director, Standard Bank SA Ltd Dip in Business Management Provincial Head, Northern Cape and Leadership (UFS) External Member Clarkson, Ralph Member of the South African Institute of Chartered Hollingworth, Mr Accountants CA (SA), BCom (Rhodes), Member of Planning and Infrastructure Committee of PG Dip in Taxation (Natal) Council of University of Zululand PG Dip in Forensic Auditing and Criminal Justice (Natal) External Member Combrink, Annette Louise, Member of Rotary, CANSA, Aardklop, the Service Prof Centre for the Aged and other organizations BA (NWU) Language Practitioner; Accredited translator and BA Hons (NWU) language editor MA (NWU) DLitt (NWU) External Member Lacock, Hendrik Johannes, Judge, High Court Judge Vice-Chairperson, National Council of Correctional BCom, LLB (Stellenbosch) Services External Member Mokgoro, Jennifer Yvonne, Professor Emeritus, NWU, University of the Western Judge Cape, University of Pretoria and UNISA BJuris (NWU) Council of the South African Institute of Judicial LLB (NWU) Education, Chair the Curriculum Development LLM (UPenn) Committee JD (honoris causa) - NWU, Chairperson, Nelson Mandela Children’s Fund UWC, UL, UNISA, UCT, WITS, Member, Mandela Rhodes Trust University of Pennsylvania, Commissioner, International Commission of Jurists University of Toledo (2014 - 2019) Member, International Advisory Board of the Open Society’s Justice Initiative Project (2014-2017) Member, International Arbitration Committee of the International Olympics Committee Patron of the South African Chapter of the International Women Judges Association Member, South African Women Lawyers Association and the International Women’s Forum Appointee of the President of South Africa as an Advocate for Social Cohesion (2012-2016)

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External Member Mutyorauta, Julius Jacob, Mr Exploration geophysicist a BSc (University of Botswana, Member, Riverwalk Trading 124cc Lesotho and Swaziland) Director, Aberdeen Offshore Engineering (Pty) Ltd MSc (Geophysics) (University Member and Board of Governors, Tiger Kloof of Zimbabwe) Educational Institution MSc (Mineral Exploration) (London) DIC Mineral Exploration (London) MBA (MANCOSA) External Member Phatshoane, Mmathebe Judge, High Court of South Africa, Northern Cape Violet, Judge Founder member, Phatshoane Henney Inc BProc Chairperson, Phatshoane Henny Group of Associated LLB Law Firms LLM (UFS) External Member Senatle, Sejako Joseph, Dr Former: Senior Counsel in private practice SC Advocate, High Court BJuris, Deputy Chairperson, Bar Council LLB (Unibo) Presided over Commissions of Inquiries LLM (Natal) Colonel, South African National Defence Force LLD (Potchefstroom) Senior Military Court Judge and in national and Cert. Arbitration (SA) provincial statutory Boards as Chairperson and Deputy-Chairperson Tutor, Technikon SA/UNISA Law reporter for the SALR and SACR Current: Professional membership, Extradition Lawyers Association, SADC Lawyers Association and International Bar Association External Member Slabbert, Etienne, Dr Chief Information Officer, Absa and Barclays Africa PhD (MOTI) (Da Vinci Institute) Group Retail Business Bank, Digital, Card and MBA (Oxford Brookes) Architecture Technology teams (United Kingdom, India, Singapore and South Africa)

Judge Jennifer Yvonne Mokgoro and Ms Jennifer Anne Glennie were unanimously elected as Chairperson and Deputy Chairperson of Council, respectively, with effect from 19 August 2014.

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The full Council of Sol Plaatje University, together with the Minister of Higher Education and Training, at the formal inauguration of Council on 19 August 2014

Back row (L to R): Ms B Ndawonde, Mr SS Motsumi, Mr TT Moshe, Dr EAN Dakora, Mr J Hlatywayo, Dr SJ Senatle SC, Mr M Ndzilili, Dr E Slabbert, Mr RH Clarkson, Mr AN Madonsela, Mr LJ Blanckenberg, Mr GH Akharwaray, Judge HJ Lacock, Dr MJ du Plooy (Registrar and Secretary to Council)

Front row (L to R): Ms F Nkonyane, Dr ZP Ncube, Prof AL Combrink, Mr JJ Mutyorauta, Judge MV Phatshoane, Judge JY Mokgoro (Chairperson), Ms JA Glennie (Deputy Chairperson), Dr B Nzimande (Minister of Higher Education and Training), Prof Y Ballim (Interim Head), Dr YG Muthien, Prof M Padayachee, Ms BM Bloem

Prof Y Ballim, (Interim Head), Dr B Nzimande (Minister of Higher Education and Training) and Ms JA Glennie (Chairperson: Interim Council) at the Inauguration of Council on 19 August 2014

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i k Dates of ordinary Meetings of Council a NAME POSITION 19/08/2014 10/10/2014 02/12/2014 1st Meeting 2nd Meeting 3rd Meeting Mokgoro, JY Judge Chair    Glennie, JA Ms Deputy Chair    Akharwaray, GH Mr Member  Apology  Ballim, Y Prof Interim Head    Blanckenberg, LJ Mr Member   Apology Bloem, BM Ms Member  Apology  Clarkson, RH Mr Member    Combrink, AL Prof Member  Apology  Dakora, EAN Dr Member    Hlatywayo, J Mr Member    Lacock, HJ Judge Member    Madonsela, AN Mr Member    Moshe, TT Mr SRF Representative*    Motsumi, SS Mr SRF Representative*    Muthien, YG Dr Member   Apology Mutyorauta, JJ Mr Member    Ncube, ZP Dr Member    Ndawonde, B Ms Member    Ndzilili, M Mr Member    Nkonyane, F Ms Member    Padayachee, M Prof Member    Phatshoane, MV Judge Member    Senatle, SJ Dr SC Member  Apology Apology Slabbert, E Dr Member   

 Present at meeting * By invitation

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i k The followinga members of Council constituted the Executive Committee of Council (EXCO):

NAME POSITION Mokgoro, JY Judge Chairperson of Council, Executive Committee and Remuneration Committee Glennie, JA Ms Deputy Chairperson of Council Ballim, Y Prof Interim Head Clarkson, HR Mr Chairperson of Finance Committee Combrink, AL Prof Chairperson of Human Resources Committee Padayachee, M Prof Chairperson of Audit and Risk Management Committee Slabbert, E Dr Chairperson of Facilities Planning, Infrastructure and Information Technology Committee

Due to the relatively short time between the establishment of the full Council and the 2014 year end, EXCO did not meet during the period under review.

Council approved the following composition and membership of Committees of Council:

COMMITTEE CHAIRPERSON MEMBERS IN ATTENDANCE Finance Clarkson, RH Mr Akharwaray, GH Mr Du Plooy, MJ Dr (Registrar) Committee Ballim, Y Prof Olander, RJ Mr (Chief Operating Madonsela, AN Mr Officer) Mawasha, B Mr (Co-opted) Ndawonde, B Ms Audit and Risk Padayachee, M Prof Bloem, BM Ms Ballim, Y Prof (Interim Head) Management Glennie, JA Ms Du Plooy, MJ Dr (Registrar) Committee Olander, RJ Mr (Chief Operating Officer) Human Combrink, AL Prof Ballim, Y Prof Du Plooy, MJ Dr (Registrar) Resources Dakora, EAN Dr Committee Mutyorauta, JJ Mr Nkonyane, F Ms Phatshoane, MV Judge Senatle, SJ Dr SC Facilities Slabbert, E Dr Ballim, Y Prof Du Plooy, MJ Dr (Registrar) Planning, Blanckenberg, LJ Mr Infrastructure Hlatywayo, J Mr and Information Lacock, HJ Judge Technology Muthien, YG Dr Committee Ndzilili, M Mr Remuneration Mokgoro, JY Judge Bloem, BM Ms Ballim, Y Prof (Interim Head) Committee Glennie, JA Ms Du Plooy, MJ Dr (Registrar)

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i k Finance Committee a Date of ordinary meeting NAME Position 19/11/2014 - 8th Meeting

Clarkson, RH Mr Chairperson 

Akharwaray, GH Mr Member 

Ballim, Y Prof Interim Head: Member Apology

Madonsela, AN Mr Member 

Mawasha, B Mr Co-opted Member 

Ncube, ZP Dr Member 

Ndawonde, B Ms Member 

Olander, R Mr * Chief Operating Officer 

 Present * Attended meeting as Acting Interim Head

Audit and Risk Management Committee Date of ordinary meeting NAME Position 11/11/2014 - 6th Meeting

Padayachee, M Prof Chair 

Bloem, BM Ms Member Apology

Glennie, JA Ms Member 

Ballim, Y Prof Interim Head * 

 Present * In attendance

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a Date of ordinary meeting NAME Position 01/12/2014 - 6th Meeting

Combrink, AL Prof Chairperson 

Ballim, Y Prof Interim Head: Member Apology

Dakora, EAN Dr Member 

Mutyorauta, JJ Mr Member 

Nkonyane, F Ms Member 

Phatshoane, MV Judge Deputy Chairperson: Member Apology

Senatle, SJ Dr SC Member Apology

 Present

Facilities Planning, Infrastructure and Information Technology Committee Date of ordinary meeting NAME Position 01/12/2014 - 4th Meeting

Ballim, Y Prof Interim Head: Member 

Blanckenberg, LJ Mr Member Apology

Hlatywayo, J Mr Member 

Lacock, HJ Judge Member 

Muthien, YG Dr Member Apology

Ndzilili, M Mr Member 

Slabbert, E Dr Chairperson 

 Present

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i k Interim Council and medical aid for employees and appointeda Alexander Forbes for a period of 18 months as During the reporting period, the Interim Council of the administrators and advisors on pension and SPU considered the following important matters: medical aid funds • A contribution by the University of a maximum Approval of the following: of R15 million from the 2013 surplus funds to purchase Hoffe Park • Policy on Appointment Categories and Conditions of Employment • Valuation and deed of sale for Hoffe Park, a property near the centre of Kimberley. The • Policy on Staff Recruitment and Selection property includes a functioning residence and • Policy on Remuneration and Salary Structures sports facilities. • Policy on Support Staff Recruitment and • Arrangement with WITS to continue its Selection responsibility for the development of the • Group Life Insurance benefit for staff infrastructure of SPU until March 2016 • Purchase of an official residence for the Vice- Chancellor Full Council • Extension in the term of the Interim Head until March 2015 During the reporting period, the full Council of the SPU approved the following: • Delegation of authority: Prof Y Ballim was deemed to be the Interim Vice-Chancellor for this • Policy on Language purpose • Policy on Cellular Phone Allowances • Comprehensive insurance for a limited period as negotiated by the DHET Project Management • Policy on Sexual Harassment Team with Marsh Africa (Pty) Ltd • Policy on Unfair Discrimination • Purchase of Diamond Lodge and Whiteways as • Academic Plan for five years: 2014 – 2018 residences for students • Process, timeline and Selection Committee • Interim Head deemed to act as the Public Officer for the appointment of a Vice-Chancellor and of the University Principal • Appointment of Fasttrac Business Specialists • Depreciation percentages for property, plant and pending the appointment of a Chief Operating equipment, and a revised capitalisation threshold Officer of R10 000 per item • Appointment of the Chief Operating Officer for a • Remuneration increase for all staff from period of five years from August 2014 1 January 2015 • SPU Implementation Plan (new infrastructure) • Appointment of the external auditors, until 2016, subject to the availability of the PricewaterhouseCoopers (PwC), for 2014 necessary funds and 2015 • Introduction of three new Bachelor of Education • 2015 Budget on recommendation of the Finance programmes in 2015 Committee

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or Humanity - f • a Le ic s fr e A d i l m a • o Through collaboration with the Northern r A f 1.5 Council Statement on Sustainability f t r i h k

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A University– that is sustainable and is engaged with f r

i k its locala and regional community, while at the same high schools to provide development support to time retaining its critical academic and intellectual the schools and their teachers, and to use this independence. Council is acutely aware that, as the group of schools as the platforms for teaching first University to be established in the Northern Cape development of students. region, SPU has to be an important partner in the • The University participated in re-establishing the social, economic and intellectual development of the Provincial Research Ethics Committee. A number region, its environment and its people. of University staff served as members of this Committee. • Academic staff in the Information Technology Department and the Management Department In this regard, the following approaches were at SPU have initiated a project with the Northern developed and activities undertaken in 2014: Cape Provincial Department of Economic Development to consider research and teaching • The contract for the refurbishment of the existing programmes that will contribute to growth of buildings to be used for office and teaching small and medium enterprises in the region. spaces, was awarded to a local contractor – total value: approximately R40 million. • Through partnerships with the Wholesale and Retail SETA and the leadership of Provincial • The University hosted three public lectures Districts in the Northern Cape, SPU was able to on the general subject of fracking, energy and secure bursary support for approximately 50 of the environment – approximately 100 people its students in 2014. attended each lecture. • In formulating SPU’s approach to new Council is aware of the need to grow the third-stream infrastructure construction, a particular focus was income of the University to further provide financial placed on local employment and procurement, support to students and to contribute to the new as well as on demonstrable skills development infrastructure development of the University. This of local employees on the projects. In the first will be a focus of Council’s activities to ensure the phase of the new construction, which started University’s sustainability in 2015 and beyond. in 2014, it is expected that the equivalent of 11 000 person days of training will be provided by contractors, some of which will lead to formally recognised qualifications at artisan to degree level.

“Council is committed to developing a Sol Plaatje University that is sustainable and is engaged with its local and regional community, while at the same time retaining its critical academic and intellectual independence.”

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or Humanity - f • a Le ic s fr e A d i l m a o Other identified risks included: r A 1.6 Report on Exposure, Assessment and f f t r i h k

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i k During 2014, the University instituted a structured a focus on risk management, as the basis for its meeting the University’s enrolment targets; future operations. At this stage, risk management is • Insufficient leadership and management embedded at the strategic and management levels capacity; with Council oversight, through the Audit and Risk • Insufficient systems and processes in place for Management Committee (ARMC). managing infrastructure development before the transfer of responsibility from WITS; The Senior Management Team has established • Misalignment of IT strategy and implementation a Risk Management Committee to attend to with institutional goals; and risk management at the operational level. A • comprehensive Risk Register was developed by Insufficient attention to fundamental governance Senior Management with the assistance of the principles (King III Report). internal auditors, which was considered by the ARMC and approved by Council. On a quarterly basis, the Sol Plaatje University views the identification and Risk Management Committee reviews and updates management of risks as an ongoing process that is this Risk Register for presentation and discussion at to be integrated into the day-to-day management the ARMC meetings. activities of the University. We are confident that the necessary structures and processes are in place to The possibility of inadequate infrastructure for manage the key risks identified. teaching and learning activities, was likewise highlighted as a risk.

“During 2014, the possibility of inadequate infrastructure to accommodate students was highlighted as a potential strategic risk. The possibility of inadequate infrastructure for teaching and learning activities, was likewise highlighted as a risk.”

______Prof M Padayachee Ms BM Bloem Chairperson: Interim Audit and Risk Chairperson: Audit and Risk Management Committee Management Committee 19 June 2015

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or Humanity - f • a Le ic s fr e A d i l m a o r A f 1.7 Report of Senate to Council 1.8 Report in lieu of Institutional Forum f t r i h k

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A Institutional– Statute, Senate was established on during 2014, it was resolved to first establish the f r

i k 21 Julya 2014 and initially consisted of: other governance structures such as Committees of • Interim Head (Chair of Senate) Council, Senate and the Students’ Representative • Registrar Forum before establishing the Institutional Forum. • Heads of Academic Departments (3) It was felt that it would be more appropriately be • Academic employee from each Academic established in 2015. There were therefore no Department (3) meetings of an Institutional Forum in 2014. • Representatives of the SRF (2) • External member of Council (Mr JJ Mutyorauta) Senate elected Dr. Edward Dakora and Dr. Zenzo ______Ncube as its representatives to serve as members of Prof Y Ballim the full Council. Vice-Chancellor In order to enhance its capacity, Senate agreed to appoint additional external members, drawn from the 19 June 2015 ranks of senior academics at neighbouring or partner universities. After a call for nominations from such universities, Senate appointed Professor Bennett Alexander from the Cape Peninsula University of Technology (CPUT) and Professor Kobus du Pisani from NWU as Honorary Professors of SPU, to serve as external members of Senate. Dr. Marcelle Olivier, a researcher in the field of Heritage Studies and who assisted in developing SPU’s vision in this academic field, was appointed as a Visiting Academic of SPU. Senate considered and approved the following policies and rules: • Policy on Assessment; • Policy on Admission; • Policy on Certification; • Policy on Recognition of Prior Learning; • Policy on Work Integrated Learning; • Examination Rules • SPU Academic Calendar for 2015 Senate also considered the following draft policies and plans in the course of advising Council: • Policy on Language • Policy on Admission • The Academic Plan 2014 - 2018 Senate monitored the process of SPU’s preparation for the site visit by the Higher Education Quality Committee (HEQC), which was part of the medium- term conditions of approval for the qualifications being taught in 2014.

______Prof Y Ballim Chairperson of Senate 19 June 2015

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A – regional demography in terms of race and class. Thisf r

i k task is to ensure that, in its academic, operational a and institutional activities, Sol Plaatje University is essential for an intellectually stimulating SPU that responds in a positive and developmental manner acknowledges the value of diversity of opinion and to the skewed social development and widescale world view in the development of ideas. human hurt caused by apartheid. This is Council’s view of the imperative that drives its approach to the Section 2.4 of this Annual Report provides details broad subject of transformation. Council is therefore of the staff profile at SPU during 2014. While some continuously mindful and actively engaged in corrections are still necessary, it is positive to note ensuring that SPU responds positively to matters of that 58% of staff are black and 48% are women. marginalisation of members of its community, based Importantly, 60% of the academic staff are women. on socially constructed markers such as race, gender, class, sexuality, disability, belief or culture. During 2014, Council approved a Policy on Sexual Harassment and a Policy on Unfair Discrimination. In this first year of academic activity, students were Council intends to regularly monitor progress predominantly drawn from poor communities based on the implementation of these policies and on in rural or urban township areas. As indicated in transformation at SPU in general. Section 2.3, SPU registered only one white and

“... it is positive to note that 58% of staff are black and 48% are women.”

______MS JA GLENNIE JUDGE JY MOKGORO PROF Y BALLIM Chair of the Interim Council Chair of the Full Council Interim Head

19 June 2015

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i k OPERATIONSa with the responsibility for financial, human resources and student data processing, data storage, back-up Report on Operational Functions and disaster recovery. It utilises its own Enterprise Resource Planning System to process and store data and Activities securely. 2.1 Report of the Vice-Chancellor Consolidating the academic process:

2014 marked the first academic year at Sol Plaatje With the very significant advantage of low student University (SPU). With little more than five months numbers, the University’s application, admission and of preparation time, the University started the year registration processes went well and students were with 124 students registered in three academic suitably registered. The three academic programmes programmes, ten full-time academic staff members, offered were also approved by the CHE, DHET, and properly equipped teaching facilities. and SAQA in good time for the programmes to be delivered at the start of the academic year. While During the year, the main focus of senior leadership’s the approval process did not allow sufficient time for attention was to: a proper marketing and communication approach • Consolidate the academic and institutional to encourage registrations, the expected number processes of students with suitable matriculation grades were • Attend to student living and learning needs nevertheless registered on each of the academic • Develop staff teaching and research capacity programmes. • Prepare the new academic programmes for introduction in 2015 Thanks to proper curriculum planning, timetable • Where possible, support and facilitate the structuring and teaching venue allocations on the disestablishment process of the National Institute part of our academic and support staff, all courses for Higher Education – Northern Cape (NIHE- were competently delivered to students. With the NC) assistance of senior academic colleagues from the • Continue to build partnerships with the city of University of the Free State (UFS) and the Cape Kimberley and the Northern Cape Province Peninsula University of Technology (CPUT), student assessments were well managed and the final At the outset of its establishment, SPU relied on assessment results competently recorded. the “Governance, Academic and Administrative Guidelines for the Establishment of a New The University also formally established its Senate University”, developed by the New Universities as the custodial body of its academic activities. Project Management Team, as the principal source of Due to the low number of academic staff at SPU, policy and procedure to regulate its governance and it was decided to appoint senior academics from management operations. While this continued largely neighbouring and partner universities to serve as throughout 2014, there was a progressive adaptation invited members of Senate. Such presence was of the policies to reflect the particular SPU context, considered as an important means of bringing and new policies were adopted by the Interim Council, the necessary academic experience to Senate’s and later by the full Council. deliberations. Prof BM Alexander from CPUT and Prof JA du Pisani from North-West University (NWU) were appointed to serve in this capacity on the SPU Senate for a three-year period. “With the very significant advantage of low student numbers, the University’s application, admission and registration processes went well and students were suitably registered.”

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i k the limited availability of seat-space for children’s a In developing the optimum approach to teaching and schooling, and the limited employment opportunities learning, teaching was based on an approach that for partners, were seen as significant concerns by assumed that each student had regular access to a those candidates who rejected offers of employment. laptop computer. Students were therefore issued with an entry-level laptop computer and the University The University hosted six events on teaching and contributed a R2 000 subsidy to the cost of each research development for academic staff. These computer. Reports from students and academics, ranged from short, afternoon seminars on topics and the final academic performance of the students such as curriculum development and approaches to themselves, indicate that this is a positive initiative assessment, to one-day events on approaches to and the University aims to sustain this approach for teaching or academic writing, which were presented as long as possible. by invited specialists from established universities. These were well received and positive events. We The University was also able to extend the lunch intend to sustain this level of teaching and research meal arrangements to non-residence students at development with our emerging academic staff. minimal cost. This ensured that all students were able to eat at least one proper meal a day. Thanks to The management function was significantly arrangements with NSFAS, Funza Lushaka and the strengthened with the appointment of a Chief Wholesale and Retail SETA, bursary funding was Operating Officer, Mr Raymond Olander, during the obtained for all students in financial need. Finally, year. SPU also continued to rely on seconded staff through a combination of electronic access to digital from NIHE-NC, who assisted with the University’s books and the support of the Kimberley City Library, administrative and support needs. The arrangement SPU students were generally able to engage with the with the company ADAPT-IT to manage the necessary literature for their studies. University’s finance, human resources and student systems, was consolidated during the year and It was not possible to elect a properly constituted generally worked well for the University’s needs. SRC in 2014 and it was therefore decided instead to constitute a Students’ Representative Forum (SRF) Developing new academic programmes for 2015: comprising an elected representative from each of the three academic disciplines and one from each of the The Academic Plan for the period 2014 to 2018 two residences. This group formed the interim student was approved by Council during 2014 and governance structure and engaged with management provides guidance on the enrolment and academic on matters of student development. Representatives programme developments for SPU. In pursuance from this SRF were also appointed onto governance of this plan, academic and support staff focused structures such as Council and Senate. on the development of three new qualifications for introduction in 2015: Staff recruitment and development: • BSc in Data Science SPU was fortunate to be able to recruit academic staff • Higher Certificate in Heritage Studies in sufficient numbers and of necessary competence • Extension of the B. Ed programme to include to fully start the academic year in February 2014. Intermediate Phase Teaching Some of the programmes required short, but specific topics to be taught and this was managed through These programmes were developed anew as this short contract appointments of academic staff from was the first time that the Data Science and Heritage neighbouring universities or locally in Kimberley. It Studies qualifications were to be offered in South was also possible to recruit the necessary academic Africa. The curriculum proposals were submitted to staff in the fourth quarter of the year to start the DHET, the CHE and SAQA in good time to be preparations for teaching on the new programmes approved for delivery in 2015. In anticipation of such and the second year of the existing programmes approval, the necessary staff were also sought and in 2015. An important feature of these recruitment recruited to teach on the programmes in 2015. processes was a recognition of the influence that cost-of-living and social context in Kimberley present

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i k The decisiona by the Minister of Higher Education in the greater Karoo region. and Training to disestablish the NIHE-NC had a • SPU contributed to the re-establishment of the significant effect on the operations of SPU. While Provincial Research Ethics Committee, which is this was a separate process that was to take effect now fully functional, with SPU staff as members, independently of SPU’s ongoing development, there and properly considering research proposals in were necessary overlaps and impacts because of the the Province. two institutions’ shared higher education objectives and the shared space and facilities for the respective • We initiated a project with the Provincial operations. Through a proper applications and Department of Economic Development to develop selections process, SPU offered employment to a the ICT capacity of small and medium enterprises number of staff at the NIHE-NC with their employment in the Province commencing on 1 January 2015, under new • We have formalised a partnership with ten employment agreements. schools in Kimberley, across a range of quintile groups, to contribute to school development while SPU also agreed to provide management and the partner schools assist in providing practice governance oversight to a project that would attend teaching opportunities for our students in the to the teaching and learning needs of the pipeline BEd programmes. students still registered with UFS and NWU on the NIHE-NC programmes. This project was to In conclusion, this has been an exciting first year commence in 2015 and be operational for two years, in the life of our University. The small number of by which time all of the remaining NIHE-NC students students, staff and academic programmes are will have had sufficient opportunity to complete certainly not an indication of the large demands made their qualifications. The management of this “teach- on management, academic and administrative staff out” project will also entail two-year contracts of capacity that was required to successfully complete employment being concluded to ensure that there is the year. sufficient leadership and administrative staff capacity to run the project to its successeful completion. This is undoubtedly thanks to the dedication of the SPU staff, the New Universities Project Management Developing partnerships: Team and the related support that we received from many other quarters. For all this, I am most grateful. Management continued to develop the idea that the University, Northern Cape Province and the City of Kimberley are each strengthened through mutually developmental partnerships. To this end, the University engaged in the following initiatives to give better expression to the role of SPU as the ______pre-eminent knowledge partner to the City and the PROF Y BALLIM Province: Vice-Chancellor

19 June 2015

“...this has been an exciting first year in the life of our University. The small number of students, staff and academic programmes are certainly not an indication of the large demands made on management, academic and administrative staff capacity that was required to successfully complete the year.”

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i k arranged into three qualifications commencing at the a first-year of study level in 2014: teaching and learning processes. • Bachelor of Education (BEd.) in Senior Phase and SPU therefore arranged for senior academics from FET teaching, in the fields of Mathematics, Life UFS (for the B. Ed programme) and from CPUT (for Sciences and Geography; the diploma programmes in ICT and Management) to • Diploma in Information and Communications undertake four visits to SPU during 2014 to monitor Technology (ICT), specialising in Applications and assess the implementation of the programmes. Development; and This was particularly important because each of the three programmes offered at SPU in 2014 was either • Diploma in Retail Business Management. a new qualification (Diploma in ICT Applications) or a re-curriculated version of existing qualifications The B.Ed. programme is a four-year professional (BEd and Diploma in Retail Management), and were teaching qualification. This programme was re- to be offered for the first time at a South African curriculated and developed at the University of higher education institution. the Free State (UFS). Through an agreement with UFS, the programme was offered at SPU as the During each visit, academics from the partner first offering of a fundamentally revised teacher institutions assessed the quality and appropriateness education programme in South Africa. This was a of the teaching resources, interviewed students, significantly revised B.Ed. curriculum with a much reviewed assessments and provided a report stronger emphasis on subject content knowledge. indicating concerns. The SPU academic staff then The admission requirements were set to be similar to prepared an improvement plan in response to these those at UFS. concerns. The final moderated examinations were also reviewed by academics at the partner institutions. The two diploma programmes were implemented at SPU in the same manner as for the B. Ed programme, except that, the supporting partner institution for 2.3 Student Applications, Registration and both diploma programmes was the Cape Peninsula Academic Performance University of Technology (CPUT). The application form for admission to SPU was placed All three programmes were approved and accredited on the University website in downloadable form. by the Depatment of Higher Education and Training Given the relatively low level of internet access in the (DHET), the SA Qualifications Authority (SAQA) and Northern Cape region, hard copies of the application the Higher Education Quality Committee (HEQC) in form were also prepared for over-the-counter good time to commence registration of students and collection or for postal delivery. The application fee formal teaching by the start of the 2014 academic was set at R100 by Council. year. The HEQC accreditation carried both short and medium-term conditions, the short-term conditions It was expected that the University’s refurbished having to be satisfied before commencement of the residence and teaching spaces would allow a total programme. These conditions related to aspects such enrolment of 125 students for 2014. The University as the establishment of suitable teaching spaces, received approximately 350 applications for these appointment of appropriate academic staff and the academic places. Based on our minimum entry availability of learning materials. SPU responded requirements, we were able to make 150 offers to to all these short-term conditions to the satisfaction applicants and, of these, 124 students registered in of the HEQC, before commencing teaching the the three academic programmes. programmes.

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Prof Y Ballim (Interim Head), Ms S Langson (student), Ms P Mampie (Student) and Ms Sylvia Lucas (Honorable Premier of the Northern Cape Province). Ms Mampie and Ms Langson were the first two students to apply and to register at SPU.

Prof Y Ballim (Interim Head), Dr D Parker (Acting Deputy Director-General: University Education, Department of Higher Education and Training), Ms J Glennie (Chairperson of Interim Council), Ms S Lucas (Honorable Premier of the Northern Cape Province), Mr A Madonsela (Member of the Interim Council) and Mr D Molusi (Mayor of Sol Plaatje Municipality).

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Students and parents at the Official Opening Ceremony on 15 February 2014.

Students and parents at the Official Opening Ceremony on 15 February 2014.

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The largesta proportion of the 124 students who The University contracted the services of a security registered at SPU in 2014, were from township or company to provide security at both residences, as rural schools with approximately 60% of students well as on the walking routes to and from the teaching from outside of Kimberley and 10% from outside of areas of the University. An outsourced catering the Northern Cape Province. The table below gives a company provided meals at the residences, as well as sense of the profile of enrolled students in 2014. lunches to all students (including day students) during the academic calendar. Student Profile Gender: Residence fees were set at R30 000 per student, including meals. This is on the very low end Male 48% of university residence fees for South African Female 52% universities. The Interim Council considered it important to set reletively low fees, because it was expected that the student profile would be made up Home Language: predominantly of students from disadvantaged homes Setswana 54% – as indeed was the case in 2014. Furthermore, it Afrikaans 22% was expected that the low number of students in residences would not allow the normal economies IsiXhosa 10% of scale benefits associated with more traditional English 8% and larger university residences. It was therefore Sesotho 2% necessary to cross-subsidise the residence activities at a rate of approximately R12 000 per student. It Other 4% is expected that this level of cross-subsidisation will reduce over the coming years as residence Race: student numbers increase, residence fees are more appropriately set and the initial capital costs are African 74% behind us. Coloured 24% Indian 1% Financial support for Students: White 1% The University was able to assist all but one of its students in finding financial assistance for their In University residences (83 students): studies. The following bursary or scholarship funds provided sufficient support to cover most of the tuition Male 55% and residence costs of the SPU students in 2014: Female 45% • Funza Lushaka Teacher Education Bursaries: Student Residences: 40 students Two-thirds of all SPU students were accommodated • National Student Financial Aid Scheme in the two University residences, namely Diamond (Bursaries): 36 students Lodge (64) and Whiteways (19). The limited number • John Taolo Gaetsewe District Municipality of residence places were allocated on the basis of Scholarships: 7 students need, with preferential access given to students from outside of Kimberley or those residing in townships • Northern Cape Premier’s Trust Bursaries: surrounding the city. 3 students • The Wholesale and Retail SETA Bursaries: 38 students.

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The table below gives an analysis of the general learning. What makes these results all the more a academic performance of SPU students in 2014. It significant, is the fact that almost all of the students should be noted that a course pass rate is the number arrived at the University with academic profiles that of students who pass a course (obtain at least 50%) would have placed them in the “at academic risk” as a proportion of the students originally registered for category of students at most established universities. the course. In part, this excellent level of academic performance As mentioned earlier, teaching and student is due to the smallness of the classes. However, we assessment on all the courses offered at SPU were have initiated a research project to determine the externally monitored by senior academics at UFS range of other factors that may have contributed to and CPUT on a continuous basis throughout the this level of performance. This project assessed the year. This involved at least four on-site visits to SPU relative contribution of factors such as the fact that during the year, together with external examination all students were expected to own a laptop computer; and moderation of formative and summative student SPU ensured that all students received at least one assessments. full meal per day; and that bursaries were obtained for virtually all students. Of course, the commitment and SPU students have clearly performed exceptionally diligence of the students themselves to their studies well in all three programmes that were offered in must also have been an important contributor to this 2014. The overall course pass rate of 89.9% in the academic outcome. three programmes indicates that SPU has started to correctly give expression to one of its important

Students’ Academic Performance Students Average Course Programme Head Count who Passed Pass Rate (%) all Courses (%)

B.Ed. Degree 45 82,2 91,7

Diploma: ICT 39 79,5 89,1

Diploma: Retail Business Management 40 85,0 87,5

Overall 124 82,3 89,9

2.4 Staffing Development and Staff Profile As the year progressed and as plans for the new academic programmes to be implemented in 2015 Despite starting 2014 with only four staff members, were developed, the University was able to appoint the staffing level at SPU had grown to 33 full-time additional academic staff to teach courses in the staff members by the end of the year. The teaching second semester of the year and to prepare for block commenced in February 2014 with ten teaching new programmes in 2015. academic staff members appointed to teach in the required disciplines. The competence and levels SPU also continued to rely on the administrative of qualification of this academic staff group was support of the NIHE-NC, with whom the University sufficient to satisfy the “prior to commencement” shared the main administrative and teaching building. requirements of the HEQC, thus allowing SPU However, as the year progressed, administrative to obtain the requisite approval to implement the positions were advertised and new appointments academic programmes. were made to allow SPU to develop its own administrative capacity.

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Race, Gender and Qualifications Profile of Support Staff TOTAL SUPPORT STAFF = 13 Black White Coloured Indian PhD Masters Honours Female Male Female Male Female Male Female Male Female Male Female Male Female Male 3 1 4 2 1 1 0 1 0 2 0 0 4 2 4 (31%) 6 (46%) 2 (15%) 1 (8%) 2 (15%) 0 6 (46%)

2.5 Operational Sustainability, Financial Also, in the latter part of 2014, the procurement Health and Funding Sources process for the first phase of the new construction on the Central Campus was completed. Construction The Interim Council approved an operating of new buildings was started on a project involving expenditure budget of R47.8 million, with an expected three principal contractors with a total spend of income of R52.5 million, indicating a projected approximately R850 million and a project completion operating surplus of R4.7 million for 2014. This time of 30 months. income was derived from an earmarked grant of R44.7 million, received from the DHET, R5.6 million A more detailed exposition of the University’s from student tuition and residence fees, R2 million of finances, including comments on its operational interest income and a relatively small amount of third- sustainability, financial health and funding resources, stream income to make up the balance. is contained in the Annual Financial Review (See Section 3.1 of this report). The budget and expenditure plan prepared by the New Universities Project Management Team for the 2.6 Facilities and Major Capital Works 2013 to 2018 development period of the University, identified the levels of state funding required for It is expected that, in the long-term, the spatial establishment and the early years of operation of distribution of the SPU campus will have a footprint in the University. The DHET is committed to at least central Kimberley that spans almost three kilometres this level of funding, with possible variations in the along an approximately North East - South West budget allocations, as the University identifies its own axis. This development of the campus infrastructure evolving priorities. and facilities is depicted in Figure 1 on the following page and is expected to continue until at least Through an agreement between the DHET and 2026. The figure indicates the land packages that WITS, funding for infrastructure development at have either been acquired or are yet to be formally SPU was allocated to WITS, but to be spent by the acquired, mostly from the Sol Plaatje Municipality, for New Universities Project Management Team on development of the University campus. SPU infrastructure development projects. During the 2014 financial year, these funds were used for the continuing refurbishment of the existing Old Legislature Building and the William Pescod Campus.

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The University, however, enrolled more students from outside of Kimberley than had been planned and 19

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Ground floor columns emerging and the first of the tower cranes established in December 2014

2.7 Governance Arrangements for governance arrangements and related reporting Infrastructure Projects lines be carefully structured. Paramount in this consideration was the need to ensure Given the magnitude of the new infrastructure that governance oversight is segregated from development projects, the complexity of the operational implementation and that accountability, interrelated functions at SPU, WITS and the as appropriate, be allocated to each of the DHET, as well as the prolonged and ongoing different levels of the management structure. nature of the projects, it was important that the

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SPU Infrastructure Management Division

funding agencies funding COO Chancellor - Project Management Services -

Vice Aecom Donors and and Donors

New Universities Capital Project Management Team Reports monthly on project status, expenditure and progress in measured against agreed project program

Different work streams of the capital project teams will include:

Design development and finanlisation

Project procurement and contract administration including ongoing etc) time, cost and quality reviews and progress ment team ment

DHET Steering Committee Steering DHET monitoring.

Manage

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New Universities Universities New ; COO; DVC: Academic; Internal Auditor; External specialists as as specialists External Auditor; Internal Academic; DVC: COO; ) ; Committee Council of SPU “Business Owners” (Academic; Finance; Administration; ICT; ICT; Administration; Finance; (Academic; Owners” “Business SPU TEAM (Develop and Implement) and (Develop TEAM INDIVIDUAL CAPITAL PROJECT Meets every two weeks two every Meets Project Team) Management on SPU Owner” – membership Illustrative progresses project – (Chair) Manager Infrastructure SPU Spencer/Dean/Ludwig currently manager Project Architect / Agent Principal Surveyor Quantity wi Together Electrical Engineer; Mechanical as Etc, Planner; Urban Engineer; needed Capital Projects Steering Group Steering Projects Capital (Chair

In attendance: attendance: In ; Appointed contractors, sub-

- Chancellor contractors and / or service TIC Vice needed Meets and receive reports monthly from Capital Pr Capital from monthly reports and receive Meets providers Capital Projects Governance Structure Governance Projects 2.3: SP U Capital Figure

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i k and William Pescod buildings, all the areas prepared a for teaching and office space were extensively covered with wireless access points. This was consistent with the academic decision to conduct SECTION THREE: teaching and learning engagements in a manner that enabled each student to have dedicated access to a FINANCE laptop computer. This proved particularly successful during 2014 and not only did students take to the technology easily, but they also appear to have derived significant learning benefits from the use of computers and the quality of their connectedness to the Internet.

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FINANCEa embryonicinstitution and startare intended-up phases primarily of the instit to facilitateution and an are 3.1 ANNUAL FINANCIAL REVIEW intendedunderstanding primarily of toSPU’s facilitate finances. an understanding of SPU’s

3.1 ANNUAL FINANCIAL REVIEW finances. Scope and context of Annual Financial Statement of Financial Position ScopeReview and context of Annual Financial StatementThe assets, liabilitiesof Financial and funds Position of the University as Review at 31 December 2014, together with comparatives for This report is presented, as required in terms of the The2013, assets, are shown liabilities in the and statement funds of the of Universityfinancial asposition. at 31 ThisRegulations report is onpresented, Reporting as, in required respect ofin theterms 2014 of theannual DecemberOverall, there 2014, has together been a with major comparatives increase in for the 2013, level Regulationsfinancial statements on Reporting (AFS), infor respect Sol Plaatje of the Univ 2014ersity areof fixed shown assets in the (alsostatement referred of financial to, in accounting position. Overall, terms, annual(SPU). financial The respective statements statements (AFS) cover for Sol all financialPlaatje thereas “property, has been plant a major and increase equipment” in the and level sometimes of fixed Universityactivities of(SPU). the University. The respective They thereforestatements provide cover a all assetsabbreviated (also referredas “PPE”) to, duringin accounting the past terms year,, as albeit financialcomprehensive activities record of the of SPU’sUniversity. financial They operations, therefore its “property,that the single plant mostand equipment” significant and category sometimes within the provideperformance a comprehensive and its cash recordflows for of theSPU’s past financial year, which abbreviatedtotal comprises as “PPE”) assets during under the construction past year, albeitand, that operations, its performance and its cash flows for is the first full twelve month period of its operations since theconsequently, single most notsignificant yet in use. category Major within components the total of the the past year, which is the first full twelve month the establishment of the University in August 2013, as comprisesSPU’s assets assets are under analysed construction in Figure and, 3.1 consequently, below. period of its operations since the establishment of the Universitywell as a statementin August of2013, its financial as well positionas a statement as at 31 of not yet in use. Major components of the SPU’s assets Total assets at 31 December 2014 amounted to itsDecember financial 2014.position as at 31 December 2014. are analysed in Figure 3.1 below. 252.2million (2013: 73.2 million), denoting a growth of 245% during the year. As stated above, this ForFor statutory statutory reporting reporting purposes, comparativecomparative figures figures are Total assets at 31 December 2014 amounted to growth is attributable to the ongoing infrastructural arerequired required to beto disclosedbe disclosed in the in AFS,the AFS, both both as at as the at end the of 252.2million (2013: 73.2 million), denoting a growth of development taking place, which is matched by a endthe of2013 the financial2013 financial year, as year, well asas forwell the as five for themonths five 245% during the year. As stated above, this growth is concomitant increase in the level of deferred grant monthsthen ended, then ended,and these and figures these are figures therefore are thereforewithin the attributable to the ongoing infrastructural development income on the face of the University’s balance sheet. withinscope the of thescope Review. of the It Review. should, however,It should, be however, noted, that taking place, which is matched by a concomitant be noted, that comparisons between the respective Most of the latter comprises earmarked government comparisons between the respective financial periods increase in the level of deferred grant income on the face financial periods will serve only limited benefit, more capital grants, which are recognised systematically will serve only limited benefit, more especially as the of the University’s balance sheet. Most of the latter especially as the second of the two periods was for accounting purposes over the useful lives of the characterisedsecond of the by two relatively periods wasrapid characterised expansion off by a relatively low comprisesrelevant assets. earmarked government capital grants, which base,rapid and expansion by extensive off a low growth base, in and the by University’s extensive growth are recognised systematically for accounting purposes capitalin the infrastructure.University’s capital This infrastructure. initial period ofThis growth initial period overCapital the expenditureuseful lives of during the relevant the past assets financial. year invariablyof growth distorts invariably any distorts meaningful any mea analysisningful and/analysis amounted to R175.4 million (2013: R10.2 million). It orand/or interpretation interpretation of key of performance key performance indicators indicators and and Capitalis both expendituresignificant duringand pleasing the past to financial note that year planned relatedrelated asset/liability asset/liability ratios.ratios. amountedinvestment to in R175.4 capital million infrastructure (2013: R10.2 during million). the next It is both significant and pleasing to note that planned investment in capital infrastructure during the next

<1% Figure 3.1 27% Assets: 2014

Property, plant and equipment

Intangible assets 1% Cash and cash equivalents 72% Other current assets

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i k Funding in excess of R857 million has already been a approvedfew years and is projectedcommitted to byexceed the Minister R1.6 billion. and Council,Funding in yearcash-end not. immediatelyStrategic short required-term investment for capital decisions projects willand respectively.excess of R857 A further million capital has already sum of been R40 approved million has and alsoother need purposes. to be made so as to optimise returns on cash beencommitted pledged by by the a Ministerprivate donor.and Council, It is anticipated respectively. that A not immediately required for capital projects and other thefurther balance capital will sumbe fully of R40 funded million by has Government been pledged and by a purposeNet accumulateds. funds at the 2014 financial year-end privateprivate capital donor. grants It is anticipated yet to be thatsecured. the balance Consequently, will be have almost doubled from the corresponding date at therefully arefunded no plans by Government to seek additional and private loan capital funding grants in yet Netthe accumulatedend of the prior funds year. at theAgain, 2014 one financial should year not-end read theto short-be secured. to medium-terms. Consequently, (See there note are 18no plansto the toAFS seek havetoo much almost into doubled the reported from the surpluses corresponding in either date of at the the for full details of capital commitments.) 2013 or 2014 financial periods. One should instead additional loan funding in the short- to medium-terms. end of the prior year. Again, one should not read too focus on the results of SPU’s operations against (See note 18 to the AFS for full details of capital much into the reported surpluses in either of the 2013 or Current assets at 31 December 2014 amounted to pre-determined budgets of income and expenditure, 2014 financial periods. One should instead focus on the R68.5commitments.) million and consisted almost entirely of cash respectively. Generally, during the short period of and cash equivalents. These balances reflected an resultsthe University’s of SPU’s operationsexistence toagainst date, prebudgetary-determined controls increaseCurrent ofassets R5.5 atmillion 31 December (9%), compared 2014 amounted with 2013. to R68.5 budgetshave been of income well exercised. and expenditure, respectively. Cautionmillion should,and consisted however, almost be exercisedentirely of cashwhen and viewing cash Generally, during the short period of the University’s theseequivalents. balances, These as they balances do not reflected comprise an freeincrease cash of existenceBetween tothe date, end budgetaryof December controls 2013 have and been2014, well total reservesR5.5 million generated (9%), compared by operating with surpluses, 2013. Caution but should, exercised.liabilities increased more than fourfold, from R46.3 ratherhowever, funds be wholly exercised committed when viewing to finance these the balances, cost of as million to R201 million. This change has already been ongoingthey do infrastructure not comprise freedevelopment cash reserves and operations,generated by Betweenexplained the by end the ofexceptional December incidence2013 and 2014,of government total capital grants received in advance of the projects to respectively.operating surpluses, but rather funds wholly committed liabilities increased more than fourfold, from R46.3 million be funded and the consequential deferred recognition to finance the cost of ongoing infrastructure development to R201 million. This change has already been explained of such income. SPU’s major challenge in the next few years is to by the exceptional incidence of government capital ensureand operations, that it becomes respectively. financially viable as a result of grants received in advance of the projects to be funded its recurrent operations, notably from student tuition The 2014 category percentages of liabilities and funds fees,SPU’s government major challenge grants in and the operating next few year subsidiess is to ensure andare analysedthe consequential in Figure deferred 3.2 below. recognition A large of proportion such and,that in it time,becomes third financially stream income viable assources a result yet of toits be income.of these balances (97.5% in 2014 and 97.6% in 2013) developed.recurrent operations,Its future sustainability notably from studentwill depend tuition largely fees, represent deferred government grants which, in ongovernment the prudent grants and cost-effective and operating managementsubsidies and, of in itstime, Theaccordance 2014 category with prevailing percentages International of liabilities Financial and funds human,third stream physical income and sourcesfinancial yet resources. to be developed. In particular, Its areReporting analysed Standards in Figure (IFRS),3.2 below. are A required large proportion to be of SPUfuture will sustainability need to make will adequate depend largely provision on the for prudent the theserecognised balances as income(97.5% inon 2014 a systematic and 97.6% basis in 2013) over the regularand cost maintenance,-effective management refurbishment of its and human, timely physical representrespective deferred assets’ government useful lives. grants which, in replacementand financial of resources. its property, In particular,plant and SPUequipment, will need as to accordance with prevailing International Financial make adequate provision for the regular maintenance, Reporting Standards (IFRS), are required to be refurbishment and timely replacement of its property, recognised as income on a systematic basis over the plant and equipment, as respective assets’ useful lives.

1% 12% Figure 3.2 Liabilities and Funds: 2014

Accumulated funds 44% Non-current liabilities: deferred income

43% Current portion of deferred income

Other current liabilities

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FigureFigure 3 3.3.3 bo belowelow depicts depicts the the major major sources sources of of income income

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R million R million 20132013

6060 20142014 FigureFigure 3.4 3.4

Expenditure:Expenditure: 2013 2013 and and 2014 2014

5050 RR million million 2020 20132013 1818 4040 20142014 1616 1414 3030 1212 1010 2020 88 66 1010 44 22 00 00 Student fees Student fees Academic Academic Sundry income Sundry income costs costs grants grants Interest received Interest received Personnel costs: Personnel costs: Personnel costs: Other Personnel costs: Other Depreciation and finance Depreciation and finance Other operating expenses Other operating expenses Government subsidies and Government subsidies and

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MR R H CLARKSON MR R J OLANDER Chairperson: Finance Committee Chief Operating Officer

19 June 2015

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COUNCIL’S STATEMENT OF RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS...... 51

APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS...... 51

INDEPENDENT AUDITOR’S REPORT...... 52

STATEMENT OF FINANCIAL POSITION...... 54

STATEMENT OF COMPREHENSIVE INCOME...... 55

STATEMENT OF CHANGES IN FUNDS...... 56

STATEMENT OF CASH FLOWS...... 57

NOTES TO THE ANNUAL FINANCIAL STATEMENTS...... 58

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ANNUAL REPORT 2014 a

or Humanity - f • a Le ic s fr e A d i l m a o r A f COUNCIL'S STATEMENT OF RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS f

t r COUNCIL’S STATEMENT OF RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS i h k

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The Council is responsible for the preparation, integrity and fair presentation of the annual financial statements of Sol o

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i k Plaatje University (the University). The responsibility for the preparation and presentation of the annual financial a statements has been delegated to management.

The financial statements presented in this annual report for 2014 have been prepared in accordance with International Financial Reporting Standards (IFRS) and in the manner required by the Minister of Higher Education and Training in terms of the Higher Education Act (No. 101 of 1997), as amended. Compliance with IFRS requires, inter alia, management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. The Council also delegated management to prepare other information as required to be included in this annual report and is responsible for both its accuracy and consistency with the financial statements.

The going concern basis has been adopted in the preparation of the financial statements. The Council is confident that the University will continue to be a going concern in the foreseeable future, based on forecasts and available cash resources. The viability of the University is supported by the financial statements.

These financial statements have been audited by the independent auditors, PricewaterhouseCoopers Inc., who were given unrestricted access to all financial records and related data, including minutes of meetings of the Council and all its Committees. The Council believes that all representations made to the independent auditors during the audit are valid and appropriate.

Between the year end and the date of this report, no material facts or circumstances have arisen that materially affect the financial position of the University.

APPROVAL APPROVAL OF OF THE THE ANNUAL ANNUAL FINANCIAL FINANCIAL STATEMENTS STATEMENTS

The annual financial statements set out on pages 50 to 74 were approved by the Council of Sol Plaatje University on 19 June 2015 and are signed on its behalf by:

JUDGE JY MOKGORO PROF Y BALLIM Chairperson: Council Vice-Chancellor

MS BM BLOEM MR RJ OLANDER Chairperson: Audit and Risk Chief Operating Officer Management Committee

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i k a Notes 2014 2013

R’000 R’000

Assets

Non-current assets 183 702 10 186 Property, plant and equipment 3 182 292 10 186 Intangible assets 4 1 410 -

Current assets 68 492 63 016 Trade and other receivables 5 163 - Cash and cash equivalents 6 68 329 63 016

Total assets 252 194 73 202

Funds and Liabilities

Funds 51 155 26 908 Restricted funds designated for specific activities Educational and general - - Student and staff residences (4 542) - Unrestricted Council controlled funds 55 697 26 908

Liabilities

Non-current liabilities 190 062 44 946 Deferred income 9 190 062 44 946

Current liabilities 10 977 1 348 Trade and other payables 7 4 940 1 060 Employee provisions 8 482 48 Deferred income 9 5 555 240

Total funds and liabilities 252 194 73 202

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Assets Recurrent revenue

Non-current assets 183 702 10 186 Subsidies and grants 46 655 6 205 - 52 860 31 327 Property, plant and equipment 3 182 292 10 186 State appropriations - Intangible assets 4 1 410 - subsidies and grants 10 46 655 6 205 - 52 860 31 327

Current assets 68 492 63 016 Tuition and other fees 3 290 - 2 310 5 600 - Trade and other receivables 5 163 - Sundry income 11 143 - 171 314 21 Cash and cash equivalents 6 68 329 63 016 Sub-total 50 088 6 205 2 481 58 774 31 348

Total assets 252 194 73 202 Interest received 12 2 378 - - 2 378 226

Funds and Liabilities 52 466 6 205 2 481 61 152 31 574 Total recurrent revenue Funds 51 155 26 908

Restricted funds designated for specific activities Recurrent expenditure Educational and general - - Student and staff residences (4 542) - Personnel costs 13 15 390 - 495 15 885 1 398 Unrestricted Council controlled funds 55 697 26 908 Academic 6 976 - - 6 976 563 Other personnel 8 414 - 495 835 8 909 Liabilities Other operating

Non-current liabilities 190 062 44 946 expenses 14 8 054 2 816 6 528 17 398 3 268

Deferred income 9 190 062 44 946 Depreciation 3 71 3 208 - 3 279 -

Current liabilities 10 977 1 348 Amortisation of Trade and other payables 7 4 940 1 060 intangible assets 4 - 181 - 181 - Employee provisions 8 482 48

Deferred income 9 5 555 240 Sub-total 23 515 6 205 7 023 36 743 4 666

Total funds and liabilities 252 194 73 202 Finance costs 162 - - 162 -

Total recurrent expenditure 23 677 6 205 7 023 36 905 4 666

Surplus/(Deficit) for the year 28 789 - (4 542) 24 247 26 908

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a Council Funds designated for specific Total controlled activities funds funds Education Student and general and staff residences (Unrestricted) (Restricted) (Restricted) R’000 R’000 R’000 R’000

Balance as at 1 January 2013 - - - -

Surplus for the 2013 period 26 908 - - 26 908

Balance as at 1 January 2014 26 908 - - 26 908

Surplus/(Deficit) for the 2014 year 28 789 - (4 542) 24 247

Balance as at 31 December 2014 55 697 - (4 542) 51 155

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a Council Funds designated for specific Total Notes 2014 2013 controlled activities funds (12 Months (5 Months) funds Education Student and general and staff residences (Unrestricted) (Restricted) (Restricted) R’000 R’000 R’000 R’000 R’000 R’000

Balance as at 1 January 2013 - - - - Cash flows from operating activities

Surplus for the 2013 period 26 908 - - 26 908 Cash receipts from government sources 52 860 31 328 Cash receipts from student fees 5 600 - Balance as at 1 January 2014 26 908 - - 26 908 Cash receipts from other parties 314 21 Cash paid to employees and suppliers (29 132) (3 559) Surplus/(Deficit) for the 2014 year 28 789 - (4 542) 24 247 Cash generated from operations 15 29 642 27 790

Balance as at 31 December 2014 55 697 - (4 542) 51 155 Interest received 12 2 378 226 Interest paid (162) -

Net cash generated from operating activities 31 858 28 016

Cash flows utilised in investing activities

Acquisition of property, plant and equipment 3 (175 385) (10 186) Additions to intangible assets 4 (1 591) -

Net cash utilised in investing activities (176 976) (10 186)

Cash flows from financing activities

Restricted capital funding received for infrastructure 145 431 45 186 Restricted funding received from private grantors 5 000 -

Net cash generated from financing activities 150 431 45 186

Net increase in cash and cash equivalents 5 313 63 016

Cash and cash equivalents at the beginning of the year 63 016 -

Cash and cash equivalents at the end of the year 6 68 329 63 016

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i k 1. a General information The financial statements were approved by the University Council on 19 June 2015.

Sol Plaatje University (SPU) is a Public University established under the Higher Education Act, No 101 of 1997, as amended. SPU is domiciled in Kimberley, South Africa and the operations and principal activities of the University relate to education, research and community service, based on its vision and mission.

The presentational currency of the University is South African Rands. All amounts are rounded to the nearest thousand Rand. Comparative year financial results are for the five month period ended 31 December 2013 (since the establishment of the new university), whereas the 2014 year results are for a full twelve month period.

2. Summary of significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies will be consistently applied going forward, unless otherwise stated.

2.1 Basis of preparation The annual financial statements are prepared in accordance with and comply with International Financial Reporting Standards (IFRS), as prescribed by the Minister of Higher Education and Training in terms of Section 41 of the Higher Education Act, as amended. These financial statements have been prepared under the historical cost convention, except for financial instruments measured at fair value.

2.2 Statement of comprehensive income: Separate activities The format of the statement of comprehensive income is designed to disclose separately:

• the utilisation of resources that are under the absolute control of the University Council;

• the utilisation of those resources that are prescribed in terms of the legal requirements of the providers of such resources; and

• the provision of accommodation for students and / or staff.

2.3 Going concern The Council is confident that SPU has adequate resources to continue in operational existence for the foreseeable future. The University therefore adopts the going concern basis in preparing its annual financial statements.

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2.4.1 New standards, amendments and interpretations adopted by the University

The standards listed below are new or amended and are effective for the 2014 financial year:

Standard/Interpretation Description Effective date (Periods beginning Amendments on or after) IAS 32: Financial instruments: Presentation amendment to offsetting 1 January 2014 financial assets and financial liabilities IAS 36: Impairment of assets Recoverable amount disclosures for 1 January 2014 Non-financial Assets IAS 39: Financial instruments Recognition and measurement on 1 January 2014 the novation of derivatives and the continuation of hedge accounting IFRIC 21: Levies The accounting for an obligation to pay 1 January 2014 a levy if that liability is within the scope of IAS 37 ‘Provisions’.

The amendments standards listed above have been adopted by the University, but have no impact as they are not applicable to its current activities.

2.4.2 New standards and interpretations not yet adopted

New standards and amendments to standards and interpretations listed below are effective for annual periods beginning after 1 January 2014, and have not been applied in preparing these annual financial statements.

Standard/Interpretation Description Effective date (Periods beginning New on or after) IFRS 15: Revenue from Revenue recognition 1 January 2017 contracts

Amendments IFRS 9: Financial instruments Classification, measurement and 1 January 2018 recognition of financial assets and financial liabilities

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i k a 2.5 Accounting estimates

Key assumptions concerning the future and other estimates involving uncertainty were made by management. These estimations existed at the reporting date and have a potentially significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities. These estimations are disclosed below:

2.5.1 Leave pay provision

Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the reporting date. The present obligation at the end of the reporting period is calculated as the “cost to employer” remuneration applied to the accumulated leave days. The carrying value of the leave provision at the end of the reporting period is disclosed in note 8.

2.5.2 Depreciation

At the end of each reporting period, management reviews the assets within property, plant and equipment to assess whether the estimated useful lives and residual values applicable to such assets are appropriate. Where necessary, the estimated useful lives and residual values are adjusted accordingly. The useful lives of assets are estimated by reviewing the degree to which assets are fully depreciated, but still remain on the fixed assets register and are in use. The carrying value of accumulated depreciation of all classes of property, plant and equipment at the end of the reporting period is disclosed in note 3.

2.5.3 Impairment

Property, plant and equipment and intangible assets are assessed at the end of each reporting period to estimate whether there is an indication that the carrying amounts of the assets may be impaired. If such an indication exists, the recoverable amount of each asset is estimated. The recoverable amount of an asset is the higher of its fair value, less costs to sell, and its value in use. In estimating the value in use, the estimated future cash flows of the asset are discounted. An impairment loss is recognised in the statement of comprehensive income when the carrying amount of an individual asset exceeds its recoverable amount.

2.6 Property, plant and equipment

Land and buildings comprise mainly lecture halls and facilities, workshops, student residences and administrative offices.

Property, plant and equipment is stated at historical cost, less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Property, plant and equipment items are capitalised if the life expectancy of an item is more than one year.

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i k 2.6 Property, plant and equipment (continued) a

Property, plant and equipment acquired by means of donation are recorded at fair value at the date of the donation. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the University and the cost of the item can be measured reliably. All repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Land is not depreciated. Depreciation on other assets is charged to the statement of comprehensive income and is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives, as follows:

Buildings 100 years Computer equipment 3 years Equipment 5 years Furniture and fittings 10 years

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on the disposal of assets are determined by comparing the proceeds with their carrying amounts and are taken into account in determining operating surplus or deficit.

The costs of major maintenance or overhaul of property, plant or equipment are recognised in the carrying amounts of the respective items if it is probable that future economic benefits associated with these items will flow to the University and the cost of the items can be measured reliably. Expenditure incurred to replace a component of an item is capitalised to the cost of the item. Any remaining carrying amount of the replaced part is derecognised.

2.7 Intangible assets

Intangible assets consist of purchased software licences and are capitalised at the purchase cost incurred to obtain the specific licences.

Intangible assets are measured at cost, less accumulated amortisation and impairment losses. The cost is amortised over a three year period. Amortisation is calculated to write off the cost of intangible assets, less their estimated residual values, using the straight-line method over the estimated useful lives, and is recognised in the statement of comprehensive income.

Subsequent expenditure is only capitalised when it increases the future economic benefits embodied in specific assets to which they relate. All other expenditure is recognised in the statement of comprehensive income when it is incurred. Amortisation methods, useful lives and residual values are reviewed at each reporting date.

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Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value, less costs of disposal, and its value in use. Prior impairments of non-financial assets are reviewed for possible reversal at each reporting date.

2.8 Financial instruments

Financial instruments carried on the statement of financial position include cash and cash equivalents, trade and other receivables, as well as trade and other payables. The University recognises a financial asset or a financial liability when, and only when, the University becomes a party to the contractual provisions of the instrument.

A financial asset and a financial liability should be offset and the net amount reported when, and only when, the University has a legally enforceable right to set off the respective amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the University has transferred substantially all related risks and rewards of ownership. Financial liabilities (or a part thereof) are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expires.

2.8.1 Financial liabilities

Financial liabilities are initially recognised at fair value, less directly attributable transaction costs. After initial recognition, all financial liabilities are measured at amortised cost using the effective interest method. Financial liabilities are current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

2.8.2 Cash and cash equivalents

Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant changes in value. Cash and cash equivalents are initially recognised at fair value and subsequently measured at amortised cost. For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and deposits held on call at banks.

2.8.3 Trade and other payables

Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

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These funds are created by the appropriation of retained surpluses other than those retained for specific purposes. The manner in which these funds can be utilised is not restricted, but is rather at the discretion of Council.

2.10 Revenue recognition Revenue is recognised to the extent that it is probable that future economic benefits will flow to the University and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

2.10.1 State appropriations – subsidies and grants State subsidies and grants for general purposes are recognised as revenue at fair value in the financial year to which they relate. They are recognised where there is reasonable assurance that the subsidies and grants will be received and there is assurance that the University will satisfy all the relevant conditions.

2.10.2 Income-based grants Income is recognised on a systematic basis over the periods in which the University recognises the related costs for which the grants are intended to compensate.

2.10.3 Asset-based grants Government grants relating to assets are initially recognised as deferred income and, thereafter, are recognised in the statement of comprehensive income on a systematic basis over the useful lives of the related assets.

2.10.4 Tuition and residence fees Tuition and residence fees are recognised as revenue in the period to which they relate. Tuition and residence fees are applicable to one academic and financial year and are recognised in that year. Deposits provided by prospective students are treated as current liabilities until the amounts are billed as due to the institution.

2.10.5 Sundry income Sundry income comprises income other than subsidies, grants, tuition fees, residences fees and interest received. Sundry income is recognised as revenue during the period to which it relates.

2.10.6 Interest received Investment income is recognised in the statement of comprehensive income using the effective interest rate method.

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i k a 2.11 Employee benefits

The University operates a defined contribution retirement plan on behalf of its employees. Contributions are paid to a privately administered retirement plan on a mandatory, contractual or voluntary basis. The University has no further payment obligations once the contributions have been paid. The contributions are recognised as part of personnel costs as the related services are provided.

Short-term employee benefits are expensed as the related services are provided. A liability is recognised for the amount expected to be paid if the University has a present legal or constructive obligation to pay a specific amount, as a result of past services rendered by the employees and such obligation can be reliably estimated.

Employee entitlements to annual leave are recognised when they accrue to employees. The present obligation at the end of the reporting period is calculated as the “cost to employer” remuneration applied to the accumulated leave days. The carrying value of the leave provision at the end of the reporting period is disclosed in note 8.

2.12 Commitments

Commitments relate to infrastructure contracts awarded and in progress, contracts awarded but not yet commenced, and projects approved by the DHET and/or Council, but not yet awarded. A liability does not exist at year end and is therefore not required to be included in the statements of financial position and comprehensive income, respectively. To the extent that these commitments can be reliably measured, they are disclosed in note 18.

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Land Computer Equipment Furniture Assets 2014 2013 and equipment and under buildings fittings construc- Total Total tion R’000 R’000 R’000 R’000 R’000 R’000 R’000

As at 31 December 2014

At cost 37 400 19 355 1 366 5 201 122 249 185 571 Accumulated depreciation (268) (2 380) (199) (432) - (3 279) Carrying amount 37 132 16 975 1 167 4 769 122 249 182 292

Movements for the year Opening carrying amount - 44 - - 10 142 10 186 Additions 37 400 19 311 1 366 5 201 112 107 175 385 Depreciation (268) (2 380) (199) (432) - (3 279) Closing amount 37 132 16 975 1 167 4 769 122 249 182 292

As at 31 December 2013

At cost - 44 - - 10 142 10 186 Accumulated depreciation ------Carrying amount - 44 - - 10 142 10 186

Movements for the year Opening carrying amount ------Additions - 44 - - 10 142 10 186 Closing amount - 44 - - 10 142 10 186

Additions to land and buildings comprise the purchase of two student residences, namely Diamond Lodge (R17.1 million) and Whiteways (R17.1million), and the Vice-Chancellor’s official residence (R3.2million) during the 2014 year. All property additions are inclusive of VAT. Building construction and renovation is being undertaken on land that is currently not registered in the name of the University. Assets under construction will be transferred to land and buildings once construction is completed. These properties have been donated to the University. The property donations have been gazetted, but as at the reporting date, they had not formally been transferred. Page 65

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4. Intangible assets assets Balance at the beginning of the year - - Additions 1 591 - Amortisation (181) - Balance at the end of the year 1 410 -

Additions to intangible assets comprise purchased software licences.

5. Trade and and other other receivables receivables Prepaid expenses 163 - 163 -

6. Cash and and cash cash equivalents equivalents Cash at bank 50 429 28 016 Bank balances – restricted purposes 17 900 35 000 68 329 63 016

7. Trade and and other other payables payables Trade payables 4 550 882 Accrued remuneration expenses 14 178 Other payables 376 - 4 940 1 060

8. Employee provisions provisions Balance at the beginning of the year 48 - Accrued for the year 434 48 Balance at the end of the year 482 48

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4. Intangible assets 9.9. Deferred income income Balance at the beginning of the year - - The University received specifically funded grants from the Department of Higher Additions 1 591 - Education and Training (DHET) and from private grantors. These funds are to be Amortisation (181) - utilised for specific projects as prescribed by the respective grantors. Under Balance at the end of the year 1 410 - normal circumstances, specifically funded grant income is ring-fenced.

During 2014, the DHET transferred R10 million (2013: R35 million) to the Additions to intangible assets comprise purchased software licences. University for the construction of infrastructure. R10 million of the purchase price

of Hoffe Park will be funded from the DHET ring-fenced allocation in the 2015 5. Trade and other receivables year. Prepaid expenses 163 -

163 - The DHET also appointed the University of Witwatersrand (WITS) to project manage the physical planning and development of infrastructure of Sol Plaatje 6. Cash and cash equivalents University. At year end, work in progress of R122.2 million (2013: R10.1 million) Cash at bank 50 429 28 016 was in construction and moveable assets with a net book value of R55.5 million Bank balances – restricted purposes 17 900 35 000 (2013: R44 000) had been delivered from the WITS administered allocation. 68 329 63 016 Furthermore, R6.2 million (2013: R3.2 million) was recognised as income to the extent of the expenditure incurred by WITS on behalf of SPU.

7. Trade and other payables Asset-based deferred grant income Trade payables 4 550 882 Accrued remuneration expenses 14 178 Balance at the beginning of the year 45 186 - Other payables 376 - Add: Grants received 4 940 1 060 DHET-WITS administered allocation 141 636 13 385 DHET-direct allocation to SPU 10 000 35 000 8. Employee provisions Private grantors 5 000 - Balance at the beginning of the year 48 - Accrued for the year 434 48 Less: Grants utilised (6 205) (3 199) Balance at the end of the year 482 48 Balance at the end of the year 195 617 45 186

Comprising: Non-current deferred income 190 062 44 946 Current portion of deferred income 5 555 240

Made up as follows: Cash at bank (note 6) 17 900 35 000 Net book value of assets 55 468 44 Assets under construction (note 3) 122 249 10 142 195 617 45 186

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10. Subsidies and and grants grants DHET-Operational grant 46 655 28 128 DHET-WITS administered allocation 6 205 3 199 52 860 31 327

11. Sundry income income Rental income 171 - Application fees 137 21 Other 6 - 314 21

12. Interest received received Bank 2 378 226

13. Personnel costs costs Salaries and wages 14 414 1 059 Leave pay 434 48 Recruitment expenses 1 037 291 15 885 1 398

Average number of persons employed during the year: Permanent staff 19 3 Minimum 4 1 Maximum 33 4

14. Other operating operating expenses expenses The following items have been included in operating expenses: Academic programmes expenses 619 - Professional consulting fees 4 045 339 Security and safety 2 805 - Subsistence, accommodation and travel 1 466 242 Rental fees 788 - Municipal services 852 - Branding and marketing 486 2 509 Audit fees 342 - Other operating expenses 5 995 178

Total 17 398 3 268

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10. Subsidies and grants 15. Cash generated generated from from operations operations DHET-Operational grant 46 655 28 128 Operating surplus 24 247 26 908 DHET-WITS administered allocation 6 205 3 199 Interest received (2 378) (226) 52 860 31 327 Interest paid 162 -

Cash generated from operating activities 22 031 26 682 11. Sundry income Rental income 171 - Non-cash items: 3 894 48 Application fees 137 21 Depreciation 3 279 - Other 6 - Amortisation 181 - 314 21 Provision for employment obligations 434 48

1 060 12. Interest received Movement in working capital: 3 717 Increase in trade and other receivables - Bank 2 378 226 (163) Increase in trade and other payables 3 880 1 060

13. Personnel costs

Salaries and wages 14 414 1 059 Cash generated from operations 29 642 27 790 Leave pay 434 48 Recruitment expenses 1 037 291 15 885 1 398

Average number of persons employed during the year: Permanent staff 19 3 Minimum 4 1 Maximum 33 4

14. Other operating expenses The following items have been included in operating expenses: Academic programmes expenses 619 - Professional consulting fees 4 045 339 Security and safety 2 805 - Subsistence, accommodation and travel 1 466 242 Rental fees 788 - Municipal services 852 - Branding and marketing 486 2 509 Audit fees 342 - Other operating expenses 5 995 178

Total 17 398 3 268

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16. Related16.1 parties’Executive transactions management remuneration To whom paid Number Attendance Reimburse- Other 2014 of at meetings ment of payments 16.1 Executive management remuneration The following disclosures relate to the remuneration of members of the Executive management members expenses Total The following disclosures relate to the remuneration of members of the Executive management as as defined in the Statute. For the purposes of the Higher Education Act, gross remuneration is (Aggregate (Aggregate baseddefined on in the Statutcost ofe. employment For the purposes to the of University the Higher and Education comprises Act, grossflexible remuneration remuneration is based packages, on amount amount suitablythe cost ofannualised, employment and to isthe inclusive University of andthe employer’scomprises flexible contributions remuneration to health packages, and post-retirement suitably paid) paid) benefits.annualised, In and the is case inclusive of employees of the employer’s who, during contributions 2014, held to health office and for post periods-retirement of less benefits.than the Infull

year,the case the ofactual employees cost of who, employment during 2014 has, held been office disclosed for periods in addition of less tothan the the equivalent full year, annualisedthe actual R’000 R’000 R’000 R’000 cost.cost of employment has been disclosed in addition to the equivalent annualised cost.

Chairperson of Council 1 6 - - 6 Name and title Office held 2014 2014

Actual cost of Gross Chairpersons of Council employment annualised Committees 5 7 - - 7 (if different) remuneration

(see note above) Members of Council 20 49 9 - 58

R’000 R’000 Members of Committees 11 8 - - 8

Ballim, Y Prof * Interim Head 1 208 Chairperson of Interim

Council * 1 4 6 234 244 Olander, R J Mr ** Chief Operating Officer 836 1 600

Chairpersons of Interim Du Plooy, M J Dr Registrar 1 240 Council Committees 4 23 8 - 31

Members of Interim Council 4 21 - - 21 * On secondment, as Interim Head, from the University of the Witwatersrand (WITS)

The secondment fees payable to WITS are included in other operating expenses (note 14). Members of Interim Council

Committees 6 16 - - 16 ** Appointed August 2014

Totals 134 23 234 391

* The other payments of R234 000 were made to the Member’s employer in lieu of time necessarily spent by the Member in discharging her duties as Chairperson of the Interim Council.

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To whom paid Number Attendance Reimburse- Other 2014 To whom paid Number Attendance Reimburse- Other Total of of at meetings mentment of of paymentspayments membersmembers expensesexpenses Total2014 (Aggregate (Aggregate(Aggregate amountamount paid) amountamount paid) paid) paid)

R’000R’000 R’000R’000 R’000R’000 R’000R’000

Chairperson of Council 1 6 - - 6 Chairperson of Council 1 6 - - 6

Chairpersons of Council ChairpersonsCommittees of 5 7 - - 7 Committees 5 7 - - 7 Members of Council 20 49 9 - 58

Members of Council 20 49 9 - 58 Members of Committees 11 8 - - 8

MembersChairperson of Committees of Interim 11 8 - - 8 Council * 1 4 6 234 244

ChairpersonChairpersons of of Interim Interim CouncilCouncil Committees 1 4 234 8 6 234- 24431

ChairpersonsMembers of Interim of Interim Council 4 21 - - 21 Council Committees 4 23 8 - 31 Members of Interim Council Committees 6 16 - - 16 Members of Interim Council 4 21 - - 21 Totals 134 23 234 391 Members of Interim Council Committees 6 16 - - 16 Totals* The other payments of R234 000 were made to the Member’s134 employer23 in lieu of time234 necessarily 391 spent by the Member in discharging her duties as Chairperson of the Interim Council.

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17.17. Financial risk risk management management objectives objectives and policies and policies The University’s main financial instruments comprise (cash and cash equivalents of R68.3 million), and trade and other payables (R4.9 million). The main risks arising from the University’s financial instruments are credit risk and liquidity risk.

17.1 Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The University’s exposure to credit risk from cash and cash equivalents arises from default of the counterparty. The maximum exposure for the University is equal to the carrying amount of these instruments. The University places cash only with major, reputable financial institutions with good credit ratings.

The University’s exposure to credit risk from trade and other receivables is mainly attributable to non-payment of student fees. The maximum exposure for the University is equal to the carrying amount of the student debt balances. The University did not have significant credit risk exposure at the reporting date as all students were fully funded in 2014. The SPU Finance Department had debt collection procedures in place to ensure that all student balances were paid in full before the end of the reporting period.

17.2 Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities.

SPU has access to sufficient funds through cash on hand and in the bank to cover its current liabilities. The table below summarises the maturity timeline of the University’s financial liabilities that existed at 31 December 2014:

Trade and other payables Less than 3 months 4 940 - 3 to 6 months - 1 108 Total 4 940 1 108

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17.3 Capital risk The University’s objective in managing capital is to safeguard its ability to continue as a going concern. The University has a healthy relationship between its funds and net assets. At year end, the net position of the University was as follows:

Cash and cash equivalents 68 329 63 016 Trade and other payables (4 940) (1 108)

Net current positions 63 389 61 908

17.4 Fair values Financial instruments measured in the statement of financial position require disclosure of fair value measurements by level of the following fair value measurement hierarchy:  level 1 - quoted prices (unadjusted) in an active market for identical assets or liabilities.  level 2 - inputs other than quoted prices included in level 1 that are observable for the asset.  level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

No financial instruments are categorised as either level 1 or level 2 in terms of the above hierarchy. All financial instruments are classified as level 3. The table below sets out a comparison of carrying amounts and fair values by category of financial instruments

2014 2013 2014 2013 Fair Fair Carrying Carrying value value amount amount R’000 R’000 R’000 R’000

Level 3 Financial assets Cash and cash equivalents 68 329 63 016 68 329 63 016 Trade and other receivables 163 - 163

Financial liabilities Trade and other payables 4 940 1 108 4 940 1 108

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18. Commitments Capital expenditure approved at the reporting date, but not recognised in the financial statements, is as follows:

Property, plant and equipment Approved and contracted: WITS administered allocation - infrastructure project 571 994 640 390 Approved, but not yet contracted for: WITS administered allocation - infrastructure project 1 035 798 1 035 798 2015 267 229 267 229 2016 331 589 331 589 2017 436 980 436 980

Total 1 607 792 1 676 186

Funding of commitments Approved by DHET 857 627 926 023 Approved by Anglo American Corporation 40 000 40 000 * Balance of funds (DHET’s formal approval required) 710 165 710 165 Total 1 607 792 1 676 188

19. Transactions with with DHET DHET Operational grant 46 655 28 128 Ring-fenced grant for construction of SPU infrastructure 10 000 35 000 Government grants from the DHET 56 655 63 128

*The operational grant, although an earmarked grant, is under the control, and consequently is to be utilised at the discretion, of the University Council.

DHET grant paid via WITS

Planning and development infrastructure and operating costs 141 230 13 680

20. Taxation The University is exempt from South African normal taxation in terms of section 10(1)(cA)(i) of the Income Tax Act, as amended, and therefore no provision has been made for taxation.

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