Download the Annual report 2011 - Unisa

25.2.6 Funds allocated for foundation provision
UNISA ANNUAL REPORT 2011
The DHET has allocated foundation funding to the amount of R10,922 million (2010: R8,970 million). These
funds will be spent within the parameters as set out by the DHET. An amount of R1,450 million was spent in
2011 (2010: R1,445 million).
25.2.7 Funds allocated for veterinary sciences programmes
The DHET has allocated funding to the amount of R4 million (2010: R3 million) for the improvement of equity
profiles of veterinary sciences programmes, increases in the graduate outputs of these programmes, institutional
cooperation and improvements in the geographical distribution of veterinary sciences specialization. An
amount of R1,970 million was spent in 2011 (2010: Rnil)
25.2.8 Funds allocated for infrastructure and efficiency (Engineering and Undergraduate Life and
Physical Sciences)
The DHET has allocated funding to the amount of R19,4 million for infrastructure and efficiency (Engineering
and Undergraduate Life and Physical Sciences). These funds will be spent within the parameters as set out by
the DHET.
25.3 Post-employment benefit plans
Contributions by the University to these plans are disclosed in note 12.
NOTE 26: CAPITAL MANAGEMENT
The University’s objectives when managing capital are to:
• safeguard the University’s ability to continue as a going concern
• generate additional investment income
• act as a short-term relief for operational cash flow requirements
• act as a source of bridging capital when required
• provide project finance
• provide financial stability and security
• protect the capital base of the reserve funds against inflation
Funds are invested according to the cash flow requirements and projected future cash flows.
The University manages the capital structure and makes adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets. The management of the capital has been outsourced to specialised
investment fund managers who are issued with specific mandates and restrictions. The performance of fund managers
is monitored on a regular basis by the Operational Investment Committee and reported to the Finance, Investment and
Estate Committee of Council.
The University is subject to the regulatory requirements of the Department of Higher Education and Training relating
to its capital management.
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