Financial statistics of higher education

institutions 2015

Dr Pali Lehohla

25 October 2016

Sources of higher education data in Statistics South Africa

Higher

education

Household

surveys

PricesNational

accounts

Population

dataGovernment

finances

1. The reference period (HEI financial year): 1 Jan – 31 Dec 2015

2. Information obtained from audited / draft financial statements

3. Financials:

a. Receipts: (actual cash received, irrespective for which period):

* Grants from national government

* Tuition fees

* Donations

b. Payments: (actual cash paid, irrespective for which period):

* Compensation of employees

* Goods and services

* Capital expenditure

4. Scope:

* 26 HEIs (20 universities; 6 universities of technology)

* Excludes private institutions

5. Time series: Data for last 10 years (2006-2015)

6. Unit data available on request

7. Forms part of the consolidated government financials; adjusted from

accrual to cash for consolidation purposes (see next slide)

Background and concepts

Western Cape North West

1. Cape Town 23. North West

2. Stellenbosch Mpulmalanga

3. Western Cape 24. Mpumalanga

4. Cape Peninsula Limpopo

Eastern Cape 25. Limpopo

5. Nelson Mandela 26. Venda

6. Rhodes

7. Fort Hare

8. Walter Sisulu

KwaZulu-Natal

9. KwaZulu-Natal

10. Zululand

11. Durban

12. Mangosuthu

Norther Cape

13. Sol Plaatje

Free State

14. Free State

15. Central

Gauteng

16. Johannesburg

17. Witwatersrand

18. Pretoria

19. UNISA

20. Sefako Makgatho (from 2015)

21. Tshwane

22. Vaal

University University of Technology

Scope: where are our Higher Education Institutions?

Enrolment

Higher education student enrolment

Source: Department of Higher Education. 2015: preliminary results

Contribution of first-year students to 2015 enrolment

Source: Department of Higher Education. Preliminary results

171 930 (17,5%)

students who

enrolled in higher

education

institutions in 2015

were first-year

students

0.0

0.2

0.4

0.6

0.8

1.0

1940 1950 1960 1970 1980 1990 2000 2010 2020

Propor

tion c

omple

ting g

rade 1

2 afte

r comp

leting

grade

9

Year

Indian/Asian

White

Black African

Coloured

Proportion completing grade 12 after completing grade 9

0,0

0,1

0,2

0,3

1950 1960 1970 1980 1990 2000 2010 2020

Pro

po

rtio

n c

om

ple

tin

g a

bac

he

lor'

s d

egr

ee

af

ter

com

ple

tin

g gr

ade

12

Year

White

Indian/Asian

Black African

Coloured

The alarming evidence points to

regressive proportions in

Bachelor’s completion rates amongst Blacks

Proportion completing bachelor’s degree after completing grade 12

328

816

5 074

8 007

11 518

13 458

14 146

14 193

16 891

17 678

18 907

20 382

25 993

26 305

27 023

27 809

29 613

30 418

32 674

33 777

45 506

49 452

55 984

57 246

64 070

337 944

Sol Plaatje

Mpumalanga

Sefako Makgatho

Rhodes

Mangosuthu

Fort Hare

Venda

Central

Zululand

Vaal

Limpopo

Western Cape

Walter Sisulu

Nelson Mandela

Durban

Cape Town

Stellenbosch

Free State

Cape Peninsula

Wits

KwaZulu-Natal

Johannesburg

Pretoria

Tshwane

North West

Unisa

There were

985 212 students enrolled in

higher education in

2015

Source: Department of Higher Education

Student enrolment: 2015

2,9%

7,9%

8,5%

11,3%

12,1%

14,1%

14,2%

15,3%

18,7%

21,1%

21,4%

26,0%

26,6%

31,0%

31,2%

32,8%

35,2%

35,7%

37,4%

39,6%

48,5%

57,8%

59,5%

65,5%

Vaal

Walter Sisulu

Nelson Mandela

Tshwane

Cape Peninsula

Mangosuthu

Limpopo

Johannesburg

Durban

KwaZulu-Natal

Pretoria

Free State

Venda

Cape Town

Stellenbosch

All institutions

Rhodes

Central

Western Cape

Wits

Unisa

Fort Hare

Zululand

North West

The number of

students in higher

education grew by

32,8%from 2006 to 2015

Source: Department of Higher Education

Growth in student numbers: 2006–2015

HEIs receipts and payments (2015)

Payments

(R54,1 billion)

Receipts

(R63,1 billion)

Receipts

2011 2012 2013 2014 2015

Other receipts 13 017 12 448 12 958 12 941 14 695

Tuition fees 12 123 15 200 16 980 19 837 21 529

Grants received 19 602 20 969 23 152 25 412 26 882

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

R m

illio

n

Receipts (Rm)

15

27

145

198

250

309

310

345

377

391

431

511

616

677

736

796

848

1 013

1 170

1 233

1 379

1 431

1 505

1 797

2 018

3 001

Sol Plaatje

Mpumalanga

Mangosuthu

Sefako Makgatho

Central

Vaal

Zululand

Fort Hare

Venda

Walter Sisulu

Rhodes

Western Cape

Durban

Nelson Mandela

Cape Peninsula

Free State

Limpopo

Tshwane

North West

Stellenbosch

Johannesburg

KwaZulu-Natal

Cape Town

Wits

Pretoria

Unisa

Higher education

institutions received

R21,5 billionin the form of tuition

fees in 2015

Tuition fees received per HEI for the 2015 financial year (Rm)

1,9%

5,5%

20,5%

25,4%

27,0%

28,2%

28,4%

29,2%

30,0%

31,3%

32,2%

32,6%

33,1%

34,1%

34,2%

34,3%

35,2%

35,4%

35,5%

36,0%

36,2%

36,3%

37,8%

40,1%

41,6%

43,8%

49,1%

Sol Plaatje

Mpumalanga

Sefako Makgatho

Mangosuthu

Walter Sisulu

Stellenbosch

Western Cape

Cape Town

Free State

Zululand

Vaal

Pretoria

Nelson Mandela

All institutions

North West

Wits

KwaZulu-Natal

Tshwane

Fort Hare

Cape Peninsula

Central

Durban

Limpopo

Johannesburg

Venda

Rhodes

Unisa

Tuition fees

contributed

34,1%of total income

in 2015

Tuition fees as a percentage of HEI total income: 2015

284

352

359

386

403

457

506

551

737

761

773

834

851

914

990

1 030

1 215

1 310

1 314

1 450

1 549

1 576

1 625

2 159

2 239

2 256

Mangosuthu

Rhodes

Central

Venda

Mpumalanga

Vaal

Fort Hare

Zululand

Sefako Makgatho

Nelson Mandela

Sol Plaatje

Walter Sisulu

Western Cape

Durban

Cape Peninsula

Free State

Limpopo

Johannesburg

North West

Tshwane

KwaZulu-Natal

Stellenbosch

Cape Town

Pretoria

Unisa

Wits

Higher education

institutions received

R26,8 billionin the form of grants

in 2015

Grants received per HEI in 2015 (Rm)

University of theWitwatersrand

University of SouthAfrica

University ofPretoria

University ofCape Town

StellenboschUniversity

2011 1 176 1 493 1 736 1 419 1 253

2012 1 246 1 663 1 699 1 290 1 300

2013 1 424 2 100 1 936 1 414 1 355

2014 1 631 2 081 2 073 1 640 1 552

2015 2 256 2 239 2 159 1 625 1 576

0

500

1 000

1 500

2 000

2 500

R m

illio

nMain contributors to grants received by HEIs: 2011-2015 (Rm)

New university project

grants for Sol Plaatje and Univ. of Mpumalanga

Grants from national government: 2006–2015 (Rm)

2

2

3

5

11

13

26

32

45

46

50

58

79

82

110

115

133

161

180

374

449

972

1 126

Central

Sefako Makgatho

Vaal

Western Cape

Durban

Venda

Tshwane

Limpopo

North West

Mpumalanga

Zululand

Unisa

Rhodes

Fort Hare

Free State

Johannesburg

Cape Peninsula

Wits

Pretoria

Nelson Mandela

Cape Town

KwaZulu-Natal

Stellenbosch

Higher education

institutions received

R4 billionin the form of

donations in 2015

Donations to HEIs: 2015 (Rm)

Donations to HEIs (Rm)

Payments

38

89

297

327

358

409

438

463

555

691

858

863

867

971

1 004

1 167

1 231

1 837

1 919

1 932

1 942

1 956

2 096

2 487

2 601

3 996

Sol Plaatje

Mpumalanga

Mangosuthu

Sefako Makgatho

Zululand

Central

Fort Hare

Venda

Rhodes

Vaal

Western Cape

Walter Sisulu

Durban

Nelson Mandela

Limpopo

Cape Peninsula

Free State

North West

Stellenbosch

Tshwane

KwaZulu-Natal

Johannesburg

Wits

Cape Town

Pretoria

Unisa

Higher education

institutions spent

R31,4 billionon employees in 2015

Compensation of employees per HEI for 2015 (Rm)

15

57

190

208

214

240

330

349

387

389

426

472

583

688

706

726

790

900

1 017

1 017

1 147

1 163

1 480

1 656

1 924

2 154

Sol Plaatje

Mpumalanga

Vaal

Sefako Makgatho

Mangosuthu

Central

Zululand

Rhodes

Walter Sisulu

Venda

Fort Hare

Durban

Western Cape

Nelson Mandela

Cape Peninsula

Free State

Limpopo

Tshwane

Stellenbosch

Johannesburg

Wits

North West

KwaZulu-Natal

Cape Town

Unisa

Pretoria

Higher education

institutions spent

R19,2 billionon goods and services

in 2015

HEIs purchases of goods and services: 2015 (Rm)

5

6

12

16

18

22

24

25

36

72

80

86

88

130

136

147

189

194

260

315

344

403

510

Fort Hare

Zululand

Mpumalanga

Limpopo

Durban

Venda

Mangosuthu

Central

Vaal

Tshwane

Rhodes

Nelson Mandela

Free State

Western Cape

Cape Peninsula

Pretoria

Unisa

North West

Johannesburg

KwaZulu-Natal

Walter Sisulu

Stellenbosch

Cape Town

Higher education

institutions spent

R3,1 billionon bursaries in 2015

Bursaries per HEI for 2015 (Rm)

Capital expenditure by HEIs

Photo: Graeme Williams http://www.mediaclubsouthafrica.com/

32

55

100

103

126

139

140

147

153

160

176

181

184

194

195

200

218

247

262

301

313

464

603

644

714

1 142

Zululand

Rhodes

Sefako Makgatho

Mangosuthu

Tshwane

Walter Sisulu

KwaZulu-Natal

North West

Fort Hare

Western Cape

Venda

Central

Mpumalanga

Vaal

Nelson Mandela

Limpopo

Durban

Cape Peninsula

Free State

Cape Town

Johannesburg

Unisa

Pretoria

Sol Plaatje

Stellenbosch

Wits

Higher education

institutions spent

R7,2 billionon capital expenditure

in 2015

Capex per HEI for 2015 (Rm)

Net cash flow from operating activities = receipts1 – payments2 = A

Net cash flow from investment in non-financial assets = sales1 – purchases2 = B

Surplus (net inflow) before net financing activities = A + B = C

Net cash flow from financing = borrowing1 – purchases of financial assets2 = D

Net change in the stock of cash = C + D

1 inflow2 outflow

Statement of sources and uses of cash

-474

-240

-166

-164

-152

-134

-129

-68

-56

0

51

71

100

101

104

120

133

147

198

239

262

312

331

343

430

680

Surplus (net inflow) before net financing activities [C]: 2015 (Rm)

In 2015 HEIs

had a surplus (net

inflow) [C] of

R2 billion

-176

-175

-140

-120

-84

-60

-50

-41

-40

-36

-27

-19

0

11

24

61

82

101

104

109

137

147

197

208

292

316

Net change in the stock of cash (movement of bank balance during the year) (Rm)

In 2015 HEIs had a

net change in the

stock of cash of

R821 million

Prices, GDP and population data

Annual percentage change in tertiary education fees and headline CPI

7,0%

8,4%8,0%

8,5%

9,8% 9,8%9,4%

9,8%

0,0%0%

2%

4%

6%

8%

10%

12%

14%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Tertiary education Headine CPI

Higher

education

fees did not

increase in 2016

Source: Gross domestic product (GDP), 2nd quarter 2016.

Annual percentage change in household expenditure on education

12,3% 12,2%

13,0%

12,0%12,3%

9,3%

10,2% 10,0%

9,0%9,4%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Percentage of persons aged 5–24 attending an educational institution by type of institution

Institution 2001 2011 2016

School 92% 93% 93%

University / University of Technology 2% 3% 5%

College 1% 3% 1%

Other 5% 2% 1%

Total 100% 100% 100%

Source: Census 2001, Census 2011 and Community Survey 2016; percentages are rounded off

Information on HEI disaggregated tables available on the Stats SA website: http://www.statssa.gov.za

1. The number of students enrolled in higher education grew by 32,8% from 2006

to 2015

2. First-year students constitute 17,5% of total HEI student intake in 2015. This

percentage indicates challenges within the system

3. Grants by national government to HEIs increased by 144% over the ten-year

period 2006 to 2015

4. Salaries comprise about 58% of total current HEI expenditure over the ten-year

period 2006 to 2015

5. On average, income from tuition fees increased by 12,7% p.a. over the ten-

year period 2006 to 2015

6. Annual rise in tuition fees for tertiary education (CPI) in 2015 was 9,8%. In

2016 is was 0%. In 2017 it has been set to no more than 8%

7. This publication only reports on the cash transactions of HEIs, adapted from

the annual statements provided by the respondents

Closing remarks

Thank you