VUT_Report 2018_Finale
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
VAAL UNIVERSITY OF TECHNOLOGY
ANNUAL REPORT 2018
The University complies with King III principles, and endeavours
to meet all the new requirements for King IV. The University
also intends to employ the Assessment Template of the Code
of Good Governance in Higher Education as soon as Council is
in place. The risk assessment and management is conducted in
terms of the reporting regulations. The following constitutes the
management and assessment of risk:
• At the institution-wide level, risk is managed through the
use of an integrated risk register;
• At the divisional level, risk is managed through the divisional
risk registers;
• The Management Risk Committee is responsible for
the management oversight of the risk assessment and
management; and
• The Policy, Risk and Compliance Unit was established
in 2016 as a dedicated administrative function for the
day-to-day management and assessment of risks as well as
the institution-wide policy environment.
During 2018, Council and Management agreed on the following
as the major risks in the University:
• The declining enrolments
The University’s enrolment pattern has been unstable over
the last 3-4 years. As a sequel to this, the University has
suffered financial penalties. Council and management are
concerned about this trend and management is considering
interventions to over-turn the downward trend. Council
will be considering these interventions in 2019.
• Procurement challenges
The University continued to be plagued by a number
of incidences of non-compliance with and flouting of
procurement policy and procedures as approved by
Council. A number of investigations, for example the SNG
Forensic Report, have demonstrated instances of the
flagrant disregard for these policies. These matters are still
being dealt with, with a view to consequence management
where liability is proven.
• Financial position of the University
Low student fee increases, low debt collection rate and
inordinately high salary increases in 2017 and 2018 have
all led to the University experiencing fiscal problems. This
has led to the University dipping more and more into its
reserves, and even above the regulated 3% deficit
contained in the Reporting Regulations. This presents a
high risk for the University.
• Increasing student debt
During 2018, the University’s student debt recovery
continued to decline significantly due to the sector-wide
capped fee increases as well as the low payment commitment
culture by students. The University is still committed to
working with government to find amicable and sustainable
solutions to this fee impasse.
• Infrastructure and Maintenance deficit
This risk is carried over from the 2017 Annual Report and
remains. In the previous Annual Report (2017), it was reported
that, “The growth of the University as positive as it has
been over the years, has also in the recent period been
identified as one of the threats to quality teaching learning
and the general student life. Council is most appreciative of
the continued government support through infrastructure
grants. The University will be engaging the Department of
Higher Education and Training on various alternative ways
for infrastructure funding to be able to meet the required
infrastructure needs. These engagements will be focused
on the short to long term priorities”.
PROFESSOR IL RENSBURG
ADMINISTRATOR
• Letters from the Minister
In November 2018 Council received two letters from the
Minister of Higher Education and Training, Dr Naledi
Pandor, directing Council to investigate a list of issues
that had been raised with her that constituted a serious
risk to the University. By the end of 2018, Council was still
debating as to how to deal with these matters in an
appropriate manner.
30