CUT Annual Report 2009

Financial health of the University
In 2007/8 CUT had found it necessary to approach the then-DoE for an operating loan to cover
expenses, as CUT had for many years been under pressure from an escalating salary bill and rising
operating expenses. During 2009, the University managed to operate within the expenditure guidelines
set by the CUT Council, as well as the guidelines set by the then-DoE to bring that expenditure under
control. As a result, CUT has been able to accumulate R49.801 million to be reinvested in other items
of expenditure, for instance in the academic sector. The restructuring of middle management, which
took place in 2009, was intended to address this and have a reducing effect on the salary budget.
For 2009 the University was thus able to
generate a surplus of R49.807 million due mainly
to savings on operating expenses, including the
salary bill, and investment returns of R24.475
million. The net asset position improved with
an amount of R93.331 million. Moreover, an
unqualified audit report was received from the
external auditors.
The University received restricted donations
of R1 909 million in 2009. Donations received
were aimed at long-term projects, hence the
larger, once-off donations to specific University
centres, faculties and projects.
Financial aid totalling R91 544 466 was
awarded to stu dents in 2009 – an amount made
up by CUT funds, National Student Financial Aid
Scheme (NSFAS) grants, and externally funded
bursaries and scholarships. Financial aid was
awarded to students on the basis of academic
performance and financial need.
Total CUT financial support was R10 255 million.
Prof. Thandwa Mthembu, Vice-Chancellor and Principal receives a cheque
for R4,5 million from Mr Gideon Sam, chairperson of the distribution
agency for Sport - National Lottery. The funds received were for the
improvement of CUT’s sport facilities.
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