University of the Western Cape Annual Report 2009 2009 Annual Report TABLE OF CONTENTS 1. Report from the Chairperson of Council ................................................................................. 3 2. Report from the Rector and Vice-Chancellor ....................................................................... 11 3. Report from the Chairperson of Senate ............................................................................... 25 4. Report from the Chairperson of the Institutional Forum ....................................................... 50 5. Council Statement on Corporate Governance ..................................................................... 51 6. Statement on Systems of Internal Control ............................................................................ 56 7. Report from the Executive Director: Finance and Services ................................................. 57 8. Council’s Statement of Responsibility for the Annual Financial Statements ........................ 63 9. Report of the Independent Auditors ..................................................................................... 64 10. Annual Financial Statements for the year ending 31 December 2009 ................................. 65 11. Annexures: Composition, Membership and Attendance of Key Committees ...................... 93 2 2009 Annual Report 1. REPORT FROM THE CHAIRPERSON OF COUNCIL Strategic Focus The Council was kept abreast of developments in the preparation of the new Institutional Operating Plan (IOP) 2010–2014 throughout the year and, more specifically, at the Council Workshop in the latter half of the year. Council approved the draft framework IOP at its last meeting of 2009, satisfied that the document speaks adequately to the high-level key goals and supporting strategies addressing all the key focus areas that should be included in such a planning framework. The Council has expressed appreciation to the Executive Leadership for driving the University’s strategic management processes in a manner that reflects a commitment to excellence in the institution’s major focus areas. Governance and Leadership The Council approved the Five-Year Financial Plan (FYP) and the annual budget and performed its fiduciary function within the established accountability framework. Through its Finance Committee, made up of experts in the field and the internal and external audit regimes, the Council also provided strategic focus and sanctioned strategic plans and initiatives. In addition to its scheduled annual meetings, the Council set time aside for a workshop to enable Councillors to have in-depth discussions about key institutional goals, strategies and developments and to familiarise new Councillors specifically with governance and procedural matters. At the level of the Council, several annual and multi-year processes provide structure, insight and focus for planning and activities focused on quality improvement. Council is also required to submit Employment Equity and progress reports to the Department of Labour; these reach Council via the Employment Equity Forum. Council annually receives a revised Five-Year Rolling Financial Plan (FYP) via its Finance Committee. The FYP provides updates on the latest financial indicators and forecasts; sets out projected student numbers, fee and salary increases; and benchmarks ratios against which the budget will be measured. Council also monitors the income and expenditure as per budget to make sure that the University is adequately resourced to sustain normal operations. In addition, Council receives annual audited financial statements on the expenditure of the previous year. The Vice-Chancellor presents written progress reports at each Council meeting to apprise Council of issues concerning the internal or external environment and to seek advice in and approval and shared ownership of matters of strategic significance. Through its Audit Committee, Council is committed to ensuring that internal and external audits, in both cases by auditors outside the University, identify risks and validate progress and aspects of quality. Periodic evaluations of selected strategies, tactics and interventions are used to measure current performance against previously set expectations. 3 2009 Annual Report Council is satisfied that it was appropriately apprised of the key institutional risks via the Audit, Finance and Tender Committee reports and in person by the chairpersons of these committees during 2009. Council is also satisfied that it has competent and suitably qualified chairpersons in place for all three these committees. Policies, Standing Orders and Key Issues Council receives written reports from the Vice-Chancellor at all meetings and these reports are very valuable in terms of keeping Council informed of key events, challenges and successes that are not necessarily reported via the normal channels of governance. Key challenges and successes are dealt with in detail in other reports that form part of this Annual Report, but Council is very pleased, amongst others, with the success of the University in terms of research development, student support activities, student performance, infrastructural development and administrative improvements. Council has approved amendments to the standing orders of the Senate Higher Degrees Committee, the Senate Assessment Committee, the Audit Committee of Council and the Human Resources Committee of Council. Council also approved standing orders of the new Senate Teaching and Learning Committee, the new Staff Development Committee and of the Management Committee of the Jan Rabie Marjorie Wallace Scholarship Fund. Furthermore, Council approved rule changes for the Faculty of Community and Health Sciences in terms of Psychology students. Following the University’s preparation of the new IOP, Council approved: • the new Strategic Plan for Teaching and Learning, as well as the new Research Policy for the University; • the changed designation of the Department of Nursing to the School of Nursing, changes to the Faculty of Economic and Management Sciences admission criteria and the restructuring of the curriculum of the Bachelor’s Degree in Oral Health; and • the establishment of the Interdisciplinary Centre of Excellence for Sport Science and Development, as well as the Centre for Disability Law and Policy. In recognising the importance of the Convocation, Council approved that an Executive Committee of the Convocation be established to assist with the functions associated with the Convocation. Council appointed Prof. S J Neethling, as Emeritus Professor and the following individuals as Extraordinary Professors: • Dr Anthonissen, in the Department of Religion and Theology; • Prof. C Gehring, in the Department of Biotechnology; • Prof. E Moll, in the Department of Biodiversity and Conservation Biology; • Profs V Bajic, M Danson and J Blommaert and Dr K Heugh. Council also approved the appointment of Mr A Erwin as Honorary Professor in Economics. In recognition of their individual contributions, Council approved the conferral of honorary doctoral degrees on the following persons: • Dr B L Fanaroff (D Phil in Science); • Ms Deratu Tulu (S Phil in Community and Health Sciences); 4 2009 Annual Report • Mr Paul Kibii Tergat (D Phil in Community and Health Sciences); • Dr Adekeye Adebajo (D Phil in Law); • Princess Olumfemi Kayode (D Phil in Public Health). All of these degrees will be conferred during 2010 graduation ceremonies. Following the institutional quality audit of the University by the Higher Education Quality Committee (HEQC) in 2007, the University received the HEQC’s Audit Report in 2008. As required, the University then prepared the required response in the form of a Self-evaluation Report. The drafting of this report coincided with the process of preparing the new IOP, which ensured alignment between the response to the HEQC and the identified focus areas for the next five years. Council endorsed the Self-evaluation Report. Council annually considers new policies or amendments to policies and, in 2009, approved the Broad-based Black Economic Empowerment Policy. In view of the importance of the role of the internal and external auditors, Council approved that a tender process should be followed for the appointment of these auditors and, following the outcome of the tender process, approved the appointment of the new auditors as from 1 January 2010. Infrastructural development has been high on the planning agenda of the University for the last number of years and we have seen various projects gain significant momentum from the latter part of 2006. Council is satisfied that the infrastructural developments are being managed well by the University and that appropriate measures are in place to limit risk in these projects. Following the University’s application to the Department of Education (DoE) for additional funding for infrastructure improvements, the Council accepted the award of R380.8 million from the DoE for the funding cycle 2010–2012, agreeing that the University would fund R21.4 million of that amount. Of the total amount, R250 million forms part of a public private partnership to establish new residences. In this regard, Council also authorised the Vice-Chancellor to negotiate and implement the transaction with Kovacs, the developer of the new residences, including the finalisation of the lease, development and management agreements. The Council also approved that the new student residences be developed on a separate piece