Annual Report - University of Namibia

Financial MattersGENERAL REVIEWDuring the year under review, UNAMposted a surplus of N$13.2 million. This isagain evidence and proof of an activeprocess of strict budget control, whichcontinues to positively contribute towardsthe University’s fi nancial situation.It is worth mentioning that the Universityexperienced diffi culties to get the Capitalallocation released on time. Due to theincreasing demand for physical facilitiesat UNAM, the University used the normaloperating capital to settle commitmentstowards building constructions. Due to thisfi nancial arrangement the cash resourcesof the University decreased from N$74million as at 31 December 2008 to N$26million as at 31 December 2009.It is important to mention that due toprudent cash fl ow control the University alsomanaged to settle operating obligationson time. The University is obliged tocontrol its cash fl ow in such a manner thatmoney must be available to honour fi xedcommitments, especially salary expensesuntil the end of April of the followingyear. The Government releases the fi rstinstallment of the operating subsidy duringMay of each year and for this reason theUniversity needs to exercise prudent cashfl ow management.INCOME AND EXPENDITUREIncomeRevenue increased by 19.5% from N$346million in 2008 to N$413 million in 2009,mainly due to the increase in Governmentsubvention, tuition fees and hostelaccommodation. The Government of theRepublic of Namibia remains the majorfi nancier of the University operations.During the 2009 fi nancial year, a totalsubvention of N$306 million was receivedand represented 74% of the total revenue.The second major source of incomewas tuition and accommodation feeswhere an amount of N$88 million andrepresenting 21% of the total revenuewas collected. The remaining 5% of totalrevenue was collected from interestreceived, rent received, farm produceand sundry income.ExpenditureThe total expenditure for the year underreview amounted to N$400 million.Annual Report 2009 -78-