Page 54 - Transformation Report 2023

10 TRANSFORMATION

GOAL

FOSTER SUSTAINABLE RESOURCE STEWARDSHIP WITHIN THE account staff costs as a percentage of two parameters Despite the above financial indicators reflecting pos-
UNIVERSITY - operational subsidy and net tuition fees. Government itively in terms of financial stability, the “revolving door
subsidy per capita has declined significantly over the past phenomenon” evident from the employees recruited and
decade, together with tuition fee increases being lower leaving the employ of the University, together with the in-
than the Higher Education Price Index (usually 2 percent crease in stress-related illnesses (and deaths) among em-
higher than the Consumer Price Index). Both these fac- ployees, must be considered when assessing the overall
In partnership with ICT, procurement will prioritise the tors fall outside the control of MANCO and Council. sustainability of the University, beyond financial sustain-
Broad-Based Black Economic roll-out of the E-Procurement system, providing training ability.
Empowerment to end-users including institutionalising its utilisation to
track departmental performance against transformative
procurement targets. The system already explores the
navigation of vendor list from various BBBEE levels to
Broad-Based Black Economic Empowerment (BBBEE) commodity specific. Integration and reporting on skills
remains high on the agendas of MANCO and Council. development efforts across all functional areas will fur-
Year 2023 will set the baseline for the five-year strate- ther enhance the recognition level of the University. An
gy. Through the execution of the five-year strategy, our area where no points were scored involved the training
stakeholders that will be impacted in the following ways: spend on Black disabled employees where 4 points can
• Organised Labour (our employees) – through be gained. The training of these employees must be sup-
ported by EEA1 forms and evidence from a physician of
appointment of diverse employees into middle and the permanent disability.
senior management levels, according to employ-
ment equity targets, and skills development of The overall impact of the transformative initiatives across
employees with disabilities, generic and specialised all the elements of the B-BBEE scorecard will ensure that
training for PASS and academic employees, respec- as a University we contribute to creating a society that is
tively. inclusive, where all stakeholders are able to access the
• Communities – through the Socio-Economic country’s productive resources, increase Black ownership,
Development (bursaries), enterprise development participate fully in the institutional decision-making, and
and skills development initiatives, with the aim of gain more advanced managerial and technical skills. In
absorption into the University linked with the latter the process, the economy’s greater potential, stability
two elements. and prosperity will be realised. An improved recognition
• Business sector (formal and informal) – through level will open new opportunities for Nelson Mandela
enterprise and supplier development, with the aim University to collaborate with industry, particularly in re-
of graduating enterprise development beneficiaries search, HR and skills development.
to supplier development level and directly contrib-
uting to job creation in the Black-owned businesses.
Financial Performance Indicators
A gap analysis for 2022 was conducted during the last
quarter of 2022 to close the gap on the enterprise and
supplier development elements of the Amended Spe-
cialised Generic Scorecard to reach level 5 recognition. The set of twelve financial indicators are annually re-
An additional R10.5 million was approved to spend on viewed, monitored and reported against to Council. Ta-
supplier development (R6-million) and enterprise devel- ble 28 is an overview of these indicators over a five-year
opment (R4.5-million). Full payment of the R6-million for period from 2019 to 2023.
supplier development was realised however, only R1.125
million was spent on enterprise development. The re- The University has increased its income generation from
duced spend was due to the provisions outlined in the 51.84 percent to 56.11 percent, YoY. The overall financial
Supply Chain Management policy. The verification was sustainability of the University looks sound, based on sus-
concluded in December 2023 achieving a Level 4 (82.46 tainability ratios associated with the Council-controlled Table 28: Nelson Mandela University Financial Indicators (2019 – 2023).
points), discounted to a Level 5, due to the subminimum reserves (0.69) and Total Reserves relative to the annual
for enterprise development not being achieved. recurring expenditure (1.90).

MANCO approved the funding to resource the initiatives The staff costs as a percentage of total recurrent expen-
during 2023, which were fully implemented. In prepara- diture show a YoY reduction from 66.00 percent in 2022 to
tion for the 2023 verification process which will occur in 59.87 percent in 2023. Similarly, staff costs as a percent-
the third quarter of 2024, after the conclusion of the finan- age of total recurrent income (54.84 percent) fell below
cial audit of the university, a Level 4 target was set. the normal standard of 58 percent to 63 percent. Howev-
er, the benchmark set by Council (65 percent) takes into

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