Annual Report 2007 - University of Namibia

7. Financial Matters7.1 General ReviewDuring the year under review, the University managed to reduce the Council approved deficitthrough stringent financial control. The deficit was further decreased by adopting the InternationalFinancial Reporting Standards (IFRS).7.2 Changes in accounting policiesThe Council of the University of Namibia approved the adoption of the International FinancialReporting Standards (“IFRS”) for the year ended 31 December 2007. The financial statementshave been prepared in accordance with IFRS, with the date of transition for the University being1 January 2006.In terms of the IFRS 1, First Time Adoption of International Financial Reporting Standards, theUniversity has restated its opening reserves at 1 December 2006, the balance sheet as at 31December 2006 and the income statement for the year ended 31 December 2006. There havebeen no adjustments to the cash flow statements previously reported as a result of the adoptionof IFRS.7.3 Income and ExpenditureIncomeTotal income of the University increased by N$14 million over 2006 representing a growth of5.7%. This net increase came about from both tuition and sundry income. The 2007 fee structurereview was the main reason for the tuition fees to have increased while sundry income increaseddue to various sources.ExpenditureTotal expenses increased by N$10 million over 2006 representing a 3.9% increase. This increasecame about mainly from the increase in administration and other costs as well as the provision forpost retirement medical benefit. Personnel and related costs decreased mainly due to a decreasein leave pay expense compared to the prior year.70