Discussion points 1. Introduction 2. Challenges experienced as a - PowerPoint PPT Presentation

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Introduction Financial and strategic Income diversification planning Financial sustainability Sound administration and Own income generation finance https://www.innovationpolicyplatform.org/system/files/four-pillars-financial-sustainability-tnc.pdf

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Challenges experienced as a result of financial restrictions Insourcing Staff costs Student debt Cost of Investment in transformation technology

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Unisa profile - University • Largest university in SA and Africa – 8 Colleges + 1 GSBL – 5 Regional offices + 1 Ethiopian office – 28 Learning centres – Library – largest in Africa • In SA – Only Open Distance e-Learning (ODeL) institution – One of 7 comprehensive universities • 4,977 permanent headcount staff (2015 audited) – 1,715 Permanent academic headcount staff members (2015 audited) • 19,166 permanent and temporary staff which include markers, e- tutors, teaching assistants, etc central to Unisa’s ODeL model

Unisa profile - Students Headcount FTE 125,113 2015 = 337,944 2015 = 190,878 Unemployed (37%) (2014 = 328,492) (2014 = 187,043) STUDENTS Graduates Profile 21% 2015 = 40,046 African = 73% Nationally (2014 = 37,896) Women = 64%

Unisa profile – NSFAS funding per student age category 2015 3,916 NSFAS award = 27,806 9,310 NSFAS not awarded = 2,064 40+ 35 – 39 (17%) 7,861 (14%) 30 – 34 (20%) 6,719 25 – 29 (25%) 18 – 24 (24%)

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Unisa’s Programme Qualification Mix • 18 of 20 CESM categories – Business, Economics and Management Studies (33%) – Education (25%) – Law (9%) – Social Sciences (7%) – Science, Engineering & Technology (SET) (5,75%) • 728 Qualifications (NQF 5 – NQF 10) – 3,182 modules

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Benchmarking with similar ODeL universities INSTITUTION FOUNDED ENROLMENT ENROLMENT BY TREND OVER TIME (2013) LEVEL UNISA (SA) 1873 350k 90% UG Steady growth over time. Up 10% PG almost 50% since 2007 The Open University 1969 187k 92% UG Down by 25% since 2010/11, (UK) 8% PG following UK funding changes for part-time students Athabasca 1970 41k 90% UG Slow growth in recent years. University (USA) 10% PG Up about a third in a decade. 50% of undergraduates transfer AU credits to their home (mostly Canadian) degree programmes Open University of 1978 38k 83% UG Strong growth over time. Up Sri Lanka (SL) 17% PG over 50% since 2007 University of the 1968 25k Unclear but appears to Up about a third since 2009 South Pacific (Fiji) be majority undergraduate The State of Open Universities in the Commonwealth (2016) http://oasis.col.org/bitstream/handle/11599/2048/2016_Garrett_State-of-Open-Universities.pdf?sequence=1&isAllowed=y

The State of Open Universities in the Commonwealth (2016) http://oasis.col.org/bitstream/handle/11599/2048/2016_Garrett_State-of-Open-Universities.pdf?sequence=1&isAllowed=y

The State of Open Universities in the Commonwealth (2016) http://oasis.col.org/bitstream/handle/11599/2048/2016_Garrett_State-of-Open-Universities.pdf?sequence=1&isAllowed=y

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

The financial position of the university DEC-11 DEC-12 DEC-13 DEC-14 DEC-15 R’000 R’000 R’000 R’000 R’000 INCOME R 4 365 597 R 5 441 166 R 6 142 303 R 5 715 243 R 5 854 000 Subsidy income R 1 514 349 R 1 704 563 R 1 893 431 R 2 022 989 R 2 283 615 Study and Other Fees R 2 181 896 R 2 438 394 R 2 888 449 R 2 784 394 R 2 994 139 Other R 669 352 R 1 298 209 R 1 360 423 R 907 860 R 576 246 EXPENDITURE R 3 725 659 R 4 371 630 R 5 083 836 R 5 634 997 R 6 212 577 Personnel R 2 344 755 R 2 764 310 R 3 193 454 R 3 497 472 R 4 031 120 Academic professional R 898 826 R 1 122 952 R 1 304 743 R 1 520 517 R 1 657 075 Other personnel R 1 445 929 R 1 641 358 R 1 888 711 R 1 976 955 R 2 374 045 Other operating expenses R 1 380 904 R 1 607 320 R 1 890 382 R 2 137 525 R 2 181 457 NET SURPLUS/(DEFICIT) R 639 938 R 1 069 536 R 1 058 467 R 80 246 -R 358 577

Scenario analysis 2017 SCENARIOS CATEGORIES R’000 Income R 6 466 905 Scenario 1: Expenditure R 6 971 274 0% fee increase with insourcing Net Surplus/(Deficit) -R 504 370 Income R 6 605 397 Scenario 2: Expenditure R 6 833 747 6% fee increase with insourcing -R 228 350 Net Surplus/(Deficit) Income R 6 672 757 Scenario 3: Expenditure R 6 855 895 Differentiated fee increase with insourcing Net Surplus/(Deficit) -R 183 138

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Fee increase – the reality for quality education Relevant Academic and quality talent curriculum High dropout rates

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Policy analysis of fee-free education In South Africa • Constitutional Imperative – “Everyone has the right (a) to a basic education, including adult basic education, and (b) to further education, which the state, through reasonable measures, must make progressively available and accessible .” • Available - the system must grow to provide sufficient spaces for study • Accessible - it should be affordable

Policy analysis of fee-free education In South Africa • The Commission of Inquiry into Higher Education and Training received two submissions – Universities South Africa – National Treasury

Discussion points 1. Introduction 2. Challenges experienced as a result of financial restrictions 3. Unisa profile Unisa’s Programme Qualification Mix 4. 5. Benchmarking with similar ODeL universities 6. The financial position of the university Fee increase – the reality for quality education 7. 8. Policy analysis of fee-free education In South Africa 9. Conclusion and recommendations

Conclusion • Long-term fee-free education is unsustainable • Puts most South African universities at risk unless Treasury is able and willing to make up the shortfall

Recommendations for 2017 • Scenario 3: Differentiated fee increase with insourcing • Reduce and contain costs + increase alternative income streams • Short term + medium term sustainability