Discussion points - justice.gov.zajustice.gov.za/commissions/FeesHET/hearings/set1/day12-Unisa... · UNISA (SA) 1873 350k 90% UG 10% PG Steady growth over time. Up almost 50% since

Discussion points

1. Introduction

2. Challenges experienced as a result of financial restrictions

3. Unisa profile

4. Unisa’s Programme Qualification Mix

5. Benchmarking with similar ODeL universities

6. The financial position of the university

7. Fee increase – the reality for quality education

8. Policy analysis of fee-free education In South Africa

9. Conclusion and recommendations

Introduction

Financial and strategic planning

Income diversification

Sound administration and finance

Own income generation

Financial sustainability

https://www.innovationpolicyplatform.org/system/files/four-pillars-financial-sustainability-tnc.pdf

Discussion points

1. Introduction

2. Challenges experienced as a result of financial

restrictions

3. Unisa profile







Challenges experienced as a result of

financial restrictions

Cost of transformation

Staff costs

Insourcing

Student debt

Investment in technology

Discussion points

1. Introduction


3. Unisa profile







Unisa profile - University

• Largest university in SA and Africa

– 8 Colleges + 1 GSBL

– 5 Regional offices + 1 Ethiopian office

– 28 Learning centres

– Library – largest in Africa

• In SA

– Only Open Distance e-Learning (ODeL) institution

– One of 7 comprehensive universities

• 4,977 permanent headcount staff (2015 audited)

– 1,715 Permanent academic headcount staff members (2015 audited)

• 19,166 permanent and temporary staff which include markers,

e-tutors, teaching assistants, etc central to Unisa’s ODeL

model

Unisa profile - Students

Headcount

2015 = 337,944

(2014 = 328,492)

FTE

2015 = 190,878

(2014 = 187,043)

Graduates

2015 = 40,046

(2014 = 37,896)

Profile

African = 73%

Women = 64%

STUDENTS

125,113

Unemployed

(37%)

21%

Nationally

Unisa profile – NSFAS funding per student

age category

18 – 24 (24%)

25 – 29 (25%)

30 – 34 (20%)

35 – 39 (14%)

40+ (17%)

6,719

7,861

9,310

3,9162015

NSFAS award = 27,806

NSFAS not awarded = 2,064

Discussion points

1. Introduction


3. Unisa profile







Unisa’s Programme Qualification Mix

• 18 of 20 CESM categories – Business, Economics and Management Studies (33%)

– Education (25%)

– Law (9%)

– Social Sciences (7%)

– Science, Engineering & Technology (SET) (5,75%)

• 728 Qualifications (NQF 5 – NQF 10)

– 3,182 modules

Discussion points

1. Introduction


3. Unisa profile







Benchmarking with similar ODeL universities

The State of Open Universities in the Commonwealth (2016)

http://oasis.col.org/bitstream/handle/11599/2048/2016_Garrett_State-of-Open-Universities.pdf?sequence=1&isAllowed=y

INSTITUTION FOUNDED ENROLMENT

(2013)

ENROLMENT BY

LEVEL

TREND OVER TIME

UNISA (SA) 1873 350k 90% UG

10% PG

Steady growth over time. Up

almost 50% since 2007

The Open University

(UK)

1969 187k 92% UG

8% PG

Down by 25% since 2010/11,

following UK funding

changes for part-time

students

Athabasca

University (USA)

1970 41k 90% UG

10% PG

Slow growth in recent years.

Up about a third in a decade.

50% of undergraduates

transfer AU credits to their

home (mostly Canadian)

degree programmes

Open University of

Sri Lanka (SL)

1978 38k 83% UG

17% PG

Strong growth over time. Up

over 50% since 2007

University of the

South Pacific (Fiji)

1968 25k Unclear but appears to

be majority

undergraduate

Up about a third since 2009





Discussion points

1. Introduction


3. Unisa profile







The financial position of the university

DEC-11

R’000DEC-12

R’000DEC-13

R’000DEC-14

R’000DEC-15

R’000

INCOME R 4 365 597 R 5 441 166 R 6 142 303 R 5 715 243 R 5 854 000

Subsidy income R 1 514 349 R 1 704 563 R 1 893 431 R 2 022 989 R 2 283 615

Study and Other Fees R 2 181 896 R 2 438 394 R 2 888 449 R 2 784 394 R 2 994 139

Other R 669 352 R 1 298 209 R 1 360 423 R 907 860 R 576 246

EXPENDITURE R 3 725 659 R 4 371 630 R 5 083 836 R 5 634 997 R 6 212 577

Personnel R 2 344 755 R 2 764 310 R 3 193 454 R 3 497 472 R 4 031 120

Academic professional R 898 826 R 1 122 952 R 1 304 743 R 1 520 517 R 1 657 075

Other personnel R 1 445 929 R 1 641 358 R 1 888 711 R 1 976 955 R 2 374 045

Other operating expenses R 1 380 904 R 1 607 320 R 1 890 382 R 2 137 525 R 2 181 457

NET SURPLUS/(DEFICIT) R 639 938 R 1 069 536 R 1 058 467 R 80 246 -R 358 577

Scenario analysis

SCENARIOS CATEGORIES2017

R’000

Scenario 1:

0% fee increase with insourcing

Income R 6 466 905

Expenditure R 6 971 274

Net Surplus/(Deficit) -R 504 370

Scenario 2:

6% fee increase with insourcing

Income R 6 605 397



Scenario 3:

Differentiated fee increase with insourcing

Income R 6 672 757



Discussion points

1. Introduction


3. Unisa profile







Fee increase – the reality for quality

education

Relevant and quality curriculum

High dropout rates

Academic talent

Discussion points

1. Introduction


3. Unisa profile







Policy analysis of fee-free education In

South Africa

• Constitutional Imperative

– “Everyone has the right (a) to a basic education,

including adult basic education, and (b) to further

education, which the state, through reasonable

measures, must make progressively available

and accessible.”

• Available - the system must grow to provide sufficient

spaces for study

• Accessible - it should be affordable

Policy analysis of fee-free education In

South Africa

• The Commission of Inquiry into Higher

Education and Training received two

submissions

– Universities South Africa

– National Treasury

Discussion points

1. Introduction


3. Unisa profile







Conclusion

• Long-term fee-free education is unsustainable

• Puts most South African universities at risk

unless Treasury is able and willing to make up

the shortfall

Recommendations for 2017

• Scenario 3: Differentiated fee increase with

insourcing

• Reduce and contain costs + increase

alternative income streams

• Short term + medium term sustainability

Discussion points - justice.gov.zajustice.gov.za/commissions/FeesHET/hearings/set1/day12-Unisa... · UNISA (SA) 1873 350k 90% UG 10% PG Steady growth over time. Up almost 50% since

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