Download the Annual report 2011 - Unisa

Table 1: Analysis of income and expenditure
The increase in spending now exceeds the increase in
income while the increase in spending deviates further
away from the average inflation rate.
Significant increased spending occurred in the following
cost items:
UNISA ANNUAL REPORT 2011
% increase 2011 % increase 2010 2009
| 67 |
R’000 R’000 R’000
Total income 8% 4 652 785 19% 4 299 313 3 602 721
Total income excluding FVA 14% 4 478 678 16% 3 922 222 3 381 387
Total expenditure 15% 4 012 848 9% 3 501 628 3 212 306
Total staffing cost 10% 2 620 390 19% 2 383 013 2 010 106
Average CPI for SA 5.03% 4.09%
Increased spending as % of CPI 258.5% 220.0%
Table 2: Significant increases in spending
2011 2010 Increase % Increase
R R R R
Consultants and other Professional Services 58 391 913 29 787 336 28 604 577 96%
Printing 73 183 661 10 341 230 62 842 431 608%
Provision for bad debts 30 403 757 (17 429 203) 47 832 961 274%
The following are the main reasons for this increase in
spending:
• Printing increase due to the fact that during 2010, it
was decided that tutorial letters were counted as
stock. This resulted in a transfer from the Expense to
the Inventory Account.
• The increase in consultants and professional services
is primarily due to ICT using contractors who have the
required skills. It is not economically viable to appoint
these staff members on a full-time basis as these skills
are not required regularly. The increase is also due to
reclassification of Computer Operating Costs to Consultants
and other Professional Services which mainly
consist of Oracle software licences. Contractors are
also used where additional capacity is required.
Table 3: Increase in number of employees
• Personnel expenditure (including expenditure from
earmarked funding) rose by 10%. Personnel costs accounted
for 65% (2010: 68%) of total expenditure
which is 64% above the previous DHET guideline of
59% for personnel costs in relation to total spending.
At 54% (2010: 52%) of recurring income, staff costs
are lower when compared against the DHET guideline
of 59% and 62% of recurring income issued during
2010.
The increase in staffing costs can to some measure be
ascribed to an increase in the number of permanent and
fixed-term employees:
2011 Increase 2010 Increase 2009
Number of permanent employees 4 469 5.7% 4 228 4.4% 4 049
Number of fixed-term employees 751 6.5% 705 24.7% 565
Number of temporary employees 8 062 (3.3%) 8 335 4.6% 7 965