Uj Afs 2010 for Council - 23 June 2011

8/4/2019 Uj Afs 2010 for Council - 23 June 2011

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UNIVERSITY OF JOHANNESBURGand its subsidiaries

ANNUAL FINANCIAL STATEMENTSfor the year ended 31 December 2010


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UNIVERSITY OF JOHANNESBURG

and its subsidiaries

ANNUAL FINANCIAL STATEMENTSfor the year ended 31 December 2010

CONTENTS Page

Statement of responsibility of the Members of Council 2

Report of the independent auditors 3

Consolidated statement of financial position 4

Consolidated statement of comprehensive income 5

Consolidated statement of changes in equity 6

Consolidated statement of cash flows 7

Notes to the annual financial statements 8-57

Unaudited supplementary information 58-62


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INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF COUNCIL OF THE

UNIVERSITY OF JOHANNESBURG

We have audited the group annual financial statements of the University of Johannesburg,which comprise the consolidated statement of financial position as at 31 December 2010, andthe consolidated statement of comprehensive income, changes in equity and cash flow for theyear then ended, and a summary of significant accounting policies and other explanatory notes,as set out on pages 4 to 57.

Members of Councils Responsibility for the Financial Statements The Universitys members of Council are responsible for the preparation and fair presentation ofthese financial statements in accordance with International Financial Reporting, and for suchinternal control as the members of Council determine is necessary to enable the preparation offinancial statements that are free from material misstatements, whether due to fraud or error.

Auditors ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with International Standards on Auditing. Thosestandards require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entitys preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentitys internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by management as well


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CONSOLIDATED STATEMENT OF FINANCIAL POSITIONat 31 December 2010

Notes 2010 2009 1 Jan 2009

R000 R000 R000

Restated Restated

ASSETS

Non-current assets 3,776,269 3,199,592 2,625,784

Property and equipment 3 1,471,377 1,081,927 862,956

Intangible assets 4 7,396 9,635 14,831

Investment in joint venture 5.2 9,141 9,141 -

Available-for-sale financial assets 6 2,243,342 2,061,490 1,714,536

Defined benefit pension plan surplus 14 44,997 37,399 33,461

Non-current receivables 16 - -

Current assets 409,827 606,273 554,812

Inventories 7 3,665 7,328 7,726

Receivables and prepayments 8 71,672 71,127 126,641

Students for fees 30,508 29,600 86,897

Other receivables 41,164 41,527 39,744

Cash and cash equivalents 9 334,490 527,818 420,445


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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 December 2010

Notes 2010 2009

R '000 R '000

Revenue 1,945,526 1,702,095State appropriations - subsidies and grants 1,016,126 898,011

Tuition and other fee income 875,305 767,848

Research income 54,095 36,236

Other operating income 16 179,486 210,541

Operating income 2,125,012 1,912,636

Personnel 13 (1,243,286) (1,119,927)

Depreciation (43,345) (35,361)

Amortisation (4,157) (5,362)

Bursaries (132,245) (99,528)

Other operating expenses 15 (752,611) (677,589)

Operating loss (50,632) (25,131)

Share of income from joint venue 5.2 - 13,272


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CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2010

Notes Retainedearnings

Available-for-salereserve

Otherreserves

Total

R '000 R '000 R '000 R '000

Balance as at 01 January 2010 598,174 242,557 2,123,308 2,964,039

Surplus for the year 233,921 - - 233,921

Other comprehensive income (4,819) (12,823) - (17,642)

Fair value movement - 147,282 - -Fair value movement transfer ondisposal of investments - (160,105) - -

Transfers (406,917) - 406,917 -

Balance as at 31 December 2010 420,359 229,734 2,530,225 3,180,318

Balance as at 01 January 2009 aspreviously reported 655,821 59,341 2,016,907 2,732,069

Change in IAS 19.58(a) limit (91,399) - - (91,399)

Balance as at 1 January 2009 restated 564,422 59,341 2,016,907 2,640,670


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CONSOLIDATED STATEMENT OF CASH FLOWSfor the year ended 31 December 2010

Notes 2010 2009

R000 R000

Cash flows from operating activities

Cash generated from / (utilised in) operations 20 85,474 159,994

Finance cost 18 (6,306) (6,658)

Finance income 18 8,153 8,790

Net cash generated from operating activities 87,321 162,126

Cash flows from investing activities

Purchases of property, plant and equipment 3 (440,312) (254,377)

Proceeds from sale of property, plant and equipment 20 27,928 3,674

Purchases of intangible assets 4 (1,952) (177)

Investment in joint venture 5.2 - (9,141)

Purchase of investments 6 (4,146,656) (1,728,466)

Proceeds from sale of available-for-sale financial assets 6 4,112,344 1,598,500

Decrease in non c rrent recei ables (16)


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NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 December 2010

1 General information

The consolidated financial statements were authorised for issue by the Council on23 June 2011.

The University of Johannesburg is a Higher Education Institution governed by the Higher

Education Act 1997 (Act no 101 of 1997) and is domiciled in South Africa.

2 Accounting policies

The principal accounting policies adopted by the University of Johannesburg are set outbelow. These policies have been applied consistently to all the years presented, unlessotherwise stated.

2.1 Basis of presentation

The consolidated financial statements of the University of Johannesburg have beenprepared in accordance with International Financial Reporting Standards (IFRS).

The financial statements are prepared on the historical cost convention as modified by therevaluation of available-for-sale financial assets.

The preparation of financial statements in conformity with IFRS requires the use of certaincritical accounting estimates. It also requires management to exercise its judgement in theprocess of applying the Universitys accounting policies. The areas involving a higher

d g f j dg m t m l it h m ti d tim t


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Standards and interpretations not applicable to the University:

o IFRS 1, First time Adoption of International Financial Reporting Standards Revised(effective date: 1 Jul 2009)

o Amendments to IFRS 2, Group cash-settled share-based payment transactions

(effective date: 1 January 2010)o IFRS 3, Business Combinations Revised (effective date: 1 July 2009)o IAS 27, Consolidated and Separate Financial Statements Revised (effective date:

1 July 2009)o Amendments to IAS 39, Financial Instruments: Recognition and Measurement Eligible

Hedged Items (effective date: 1 July 2009)o IFRIC 17, Distributions of Non-cash Assets to Owners (effective date: 1 July 2009)o IFRIC 18, Transfers of assets from customers (effective date: 1 July 2009)o Improvements as part of the annual improvements process (effective date:

1 January 2010)

IFRS 2, Share-based PaymentsIFRS 5, Non-current Assets Held for Sale and Discontinued Operations

IFRS 8, Operating Segments

IAS 1, Presentation of Financial Statements

IAS 17, LeasesIAS 36, Impairment of Assets

IAS 38, Intangible Assets

IAS 39, Financial Instruments: Recognition and Measurement

IFRIC 9 R t f E b dd d D i ti


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o Improvements as part of the annual improvements process (effective date:1 January 2010)

IFRS 7, Financial Instruments: Disclosures

The amendment has sought to clarify the disclosures in a way that better enablesusers to evaluate an entitys exposure to risks. Management are still assessing

the impact on the University.IAS 1, Presentation of Financial Statements.The amendment has sought to clarify the form and content of the statement ofchanges in equity. Management are still assessing the impact on the University.

Standards and interpretations not applicable to the University:

o Amendment to IFRS 1, Limited exemption from comparative IFRS 7 disclosures forfirst-time adopters (effective date: 1 July 2010)

o

Amendments to IFRS1, First time adoption on hyperinflation and fixed dates (effectivedate: 1 July 2011)o Amendment to IAS 12, Income taxes on deferred tax (effective date: 1 January 2012)o Amendment to IAS 24, Related party disclosures (effective date: 1 January 2011)o Amendments to IAS 32, Classification of rights issues (effective date:

1 February 2010)o IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments (effective date:

1 July 2011)o Improvements as part of the annual improvements process (effective date:

1 J 2011)


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2.2 Consolidation (continued)

Inter-company transactions, balances and unrealised gains on transactions between groupcompanies are eliminated. Unrealised losses are also eliminated. Accounting policies ofsubsidiaries have been changed where necessary to ensure consistency with the policies

adopted by the University.

2.2.2 Associates

Associates are all entities over which the University has significant influence but not controlgenerally accompanying a shareholding of between 20% and 50%. Investments inassociates are accounted for using the equity method of accounting and are initiallyrecognised at cost. The Universitys investment in associates includes goodwill identifiedon acquisition (if any), net of any accumulated impairment loss.

The Universitys share of its associates post-acquisition profits or losses is recognised inthe statement of comprehensive income, and its share of post-acquisition movements inreserves is recognised in reserves. The cumulative post-acquisition movements areadjusted against the carrying amount of the investment. When the University s share oflosses in an associate equals or exceeds its interest in the associate, including any otherunsecured receivables, the University does not recognise further losses, unless it hasincurred obligations or made payments on behalf of the associate.

U li d i t ti b t th U i it d it i t li i t d


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2.3 Fund allocation

Equity is divided into the following categories:

Utilised funds

Available funds

o Restricted fundso Unrestricted fundso Designated/Committed fundso Undesignated funds

2.3.1 Utilised funds

These are funds utilised for acquisitions of property, plant and equipment.

2.3.2 Available funds

Available funds are divided into two categories:

Available funds, restricted use

These funds comprise income received, the use of which is legally beyond the control ofthe Council. These funds are accounted for under the following headings:

o National Research Foundation and similar funds restricted useo Endowment funds restricted useo

B i d h l hi f d t i t d


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2.3 Fund allocation (continued)

2.3.2 Available funds (continued)

a) Designated-use funds (continued)

Committed fundso Capital projectso Future pension fund shortfalls

b) Undesignated-use funds

These comprise funds arising from income or surpluses that are available to the Council inits unfettered and absolute control over allocations to fund the activities of the institution.

2.4 Foreign currency translation

a) Functional and presentation currency

Items included in the financial statements of each of the Universitys entities aremeasured using the currency of the primary economic environment in which theUniversity operates (the functional currency). The consolidated financial statementsare presented in South African Rand (R) which is both the Universitys functional andpresentation currency.


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2.5 Property and equipment

Land and buildings comprise mainly, lecture halls, laboratories, residences andadministrative buildings.

Property and equipment is stated at cost less accumulated depreciation and anyaccumulated impairment losses. Cost includes expenditure that is directly attributable tothe acquisition of the items. Property, plant and equipment obtained in terms of a donationor bequest are shown at fair value less accumulated depreciation and any accumulatedimpairment losses.

Subsequent costs are included in the assets carrying amount or recognised as a separateasset, as appropriate, only when it is probable that future economic benefits associatedwith the item will flow to the University and the cost of the item can be measured reliably.The carrying amount of the replaced part is derecognised.

Library purchases are written off in the year of acquisition.

Land is not depreciated. Depreciation on other assets is calculated using the straight-linebasis to write down the cost less residual value of each asset over its estimated useful life,as follows:

Buildings 80 to 100 yearsLifts 40 years

Ai diti d i diti l t 10


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2.5 Property and equipment (continued)

Gains and losses on disposals are determined by comparing the proceeds with thecarrying amount and are recognised in operating profit.

2.6 Intangible assets

a) Artwork

Acquired artwork is capitalised on the basis of the costs incurred to acquire and bring thespecific artwork into use. It is subsequently measured at historical cost less accumulatedimpairment losses. Artwork acquired by way of a donation is measured at a nominal valueplus any costs incurred to bring the specific artwork into use. Artwork has an indefiniteuseful life and is tested annually for impairment.

b) Computer software

Acquired computer software licenses are capitalised on the basis of the costs incurred toacquire and bring the specific software to use. These costs are amortised over theirestimated useful lives of seven years.

2.7 Impairment of non-financial assets

Assets that have an indefinite useful life, for example artwork, are not subject to

ti ti d d i ti d t t d ll f i i t A t th t


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2.8 Financial assets

2.8.1 Classification

The University classifies its financial assets in the following categories: loans andreceivables and available-for-sale financial assets. The classification depends on thepurpose for which the financial assets were acquired. Management determines theclassification of its financial assets at initial recognition.

a) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinablepayments that are not quoted in an active market. They are included in current assets,except for maturities greater than 12 months after the reporting date. These areclassified as non-current assets. The Universitys loans and receivables comprisereceivables (excluding prepayments) and cash and cash equivalents in the statementof financial position.

b) Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are not classified in any ofthe other categories. They are included in non-current assets unless the Universityintends to dispose of the investment within 12 months of the reporting date.

Th i t t f th U i it f d i i d t b d t d t l i t t


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2.8.3 Impairment of financial assets

(a) Assets carried at amortised cost

The University first assesses at each reporting date whether there is objective evidencethat a financial asset or group of financial assets is impaired. A financial asset or agroup of financial assets is impaired and impairment losses are incurred only if there isobjective evidence of impairment as a result of one or more events that occurred afterthe initial recognition of the asset (a loss event) and that loss event (or events) has animpact on the estimated future cash flows of the financial asset or group of financialassets that can be reliably estimated.

Significant financial difficulties or a breach of contract (such as default or delinquency ininterest or principal payments) of the debtor are considered indicators that the tradereceivable may be impaired.

The amount of the loss is measured as the difference between the asset s carryingamount and the present value of estimated future cash flows (excluding future creditlosses that have not been incurred) discounted at the financial asset s original effectiveinterest rate. The carrying amount of the asset is reduced through the use of anallowance account, and the amount of the loss is recognised in the statement ofcomprehensive income. When a trade receivable is uncollectible, it is written off againstthe provision of impairment.

If i b t i d th t f th i i t l d d th


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2.9 Inventories

Inventories are shown at the lower of cost and net realisable value. The cost price isdetermined on the first-in-first-out basis. Net realisable value is the estimated selling pricein the ordinary course of business, less applicable variable selling costs. Inventoriescomprise consumables and study materials.

2.10 Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents comprise cashin hand, deposits held at call with banks and investments in money market instruments, netof bank overdrafts. In the statement of financial position, bank overdrafts are included inborrowings under current liabilities.

Cash equivalents are short term highly liquid investments that are readily convertible toknown amounts of cash and which are subject to insignificant changes in value.

2.11 Trade payables, accruals and other payables

Trade payable are obligations to pay for goods or services that have been acquired in theordinary course of business from suppliers. Accounts payable are classified as currentliabilities if payment is due within one year or less. If not, they are presented as non-currentliabilities.

T d bl d i i i ll f i l d b l d


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2.14 Pension obligations

The University operates various pension schemes. The schemes are generally fundedthrough payments to trustee-administered funds, determined by periodic actuarialcalculations. The University has both defined benefit and defined contribution plans.

The University contributes towards the following retirement funds:

The University of Johannesburg Pension Fund, which is a combined defined benefit anddefined contribution plan;

The University of Johannesburg Pension Fund, which is a defined contribution plan; and

The University of Johannesburg Provident Fund, which is a defined contribution plan.

A defined contribution plan is a pension plan under which the University makes fixedcontributions into a separate entity. The University has no legal or constructive obligationsto pay further contributions if the fund does not hold sufficient assets to pay all employeesthe benefits relating to employee service in the current and prior periods. A defined benefitplan is a pension plan that is not a defined contribution plan. Defined benefit plansnormally define an amount of pension benefit that an employee will receive on retirement,usually dependent on one or more factors such as age, years of service andcompensation.

The retirement funds are managed by Boards of Trustees and are registered in terms ofthe provisions of the Pension Funds Act.


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2.14 Pension obligations (continued)

Actuarial gains and losses arising from experience adjustments and changes in actuarialassumptions are charged or credited to other comprehensive income in the period in whichthey arise.

Past-service costs are recognised immediately in income, unless the changes to thepension plan are conditional on the employees remaining in service for a specified periodof time (the vesting period). In this case, the past-service costs are amortised on astraight-line basis over the vesting period.

The liability of the University in respect of the defined contribution portion of the PensionFunds and the Provident Fund is limited to the monthly contributions that the Universitypays on behalf of its members in terms of their service contracts.

The assets of the various Funds are held independently of the University's assets inseparate trustee-administered Funds.

2.15 Post-retirement medical benefits

The University settled its obligation to provide medical benefits to certain employees afterretirement by a single deposit into the pension fund on behalf of the employees involvedand has no further obligation.

Th U i i id i di l id b fi i lif i


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2.16 Revenue recognition (continued)

2.16.1 Tuition and other fee income

Tuition fees are recognised in the period to which they relate and at the time that they areformally billed. The revenue is recognised as realisable and, to the extent that it is not,provision is realistically made for the estimated unrealisable amount. Deposits provided byprospective students are treated as current liabilities until the amount is billed as due.

2.16.2 State appropriations subsidies and grants

State subsidies and grants for general purposes are recognised as revenue in the financialyear to which the subsidy relates. Subsidies for specific purposes, e.g. capital expenditure,are brought into the appropriate fund at the time they are available for expenditure for thepurpose provided. However, if the funding is provided in advance of the specifiedrequirement (i.e. the University does not have immediate entitlement to it), the relevantamount is retained as a liability.

2.16.3 Research income

Revenue is recognised in the financial period in which the University becomes entitled tothe use of those funds. Funds in the possession of the University that it cannot use untilsome specified future period or occurrence are recognised upon receipt and thereafter areheld in a reserve fund until the financial period in which the funds may be used.


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2.17 Accounting for leases

2.17.1 Operating lease

Leases of assets in which a significant portion of the risks and rewards of ownership areretained by the lessor are classified as operating leases. Instalments (net of incentivesreceived from the lessor) in terms of operating leases are charged to income on a straight-line basis over the duration of the relevant lease.

2.17.2 Finance lease

Leases of property, plant and equipment in respect of which the University assumes thebenefits and risks of ownership are classified as finance leases. Finance leases arecapitalised at the estimated fair value of the leased assets, or if lower, at the present valueof the underlying lease payments. At the lease commencement, each lease payment is

allocated to the liability and finance charges so as to achieve a constant rate on theoutstanding finance balance. The corresponding rental obligations, net of finance charges,are included in other long-term payables. The interest element of the finance charge ischarged to the statement of comprehensive income over the lease period. The property,plant and equipment acquired under finance leasing contracts are depreciated over theshorter of the useful life of the asset and the lease term.

2.17.3 Government grants

G f h i d h i l h h i bl


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3 Property and equipment

Vehicles

R000

Network &Mainframes

R000

ComputerHardware

R000

Furniture&

FittingsR000

Land &Buildings

R000

BuildingEquipment

R000

Total

R000

2010

Cost as at 1 January 2010 14,493 25,669 31,471 161,339 1,103,912 49,510 1,386,394Additions during the year 3,110 3,557 5,231 37,342 382,931 8,141 440,312

Reclassifications - (885) 615 236 - - (34)

Disposals during the year (121) (10,575) (9,555) (13,304) (3,121) (18,717) (55,393)

Cost as at 31 December 2010 17,482 17,766 27,762 185,613 1,483,722 38,934 1,771,279

Accumulated depreciationAccumulated depreciation as at 1 January 2010 (8,855) (16,907) (16,021) (51,937) (197,851) (12,897) (304,468)Current year depreciation (1,325) (4,095) (5,038) (16,804) (9,669) (6,414) (43,345)Depreciation on disposal made during the year 23 10,575 9,524 13,187 899 13,703 47,911Depreciation on reclassifications

- 265 (244) (21) - - -

Accumulated depreciation as at 31 December 2010 (10,157) (10,162) (11,779) (55,575) (206,621) (5,608) (299,902)

Nett carrying amount

Cost as at 31 December 2010 17,482 17,766 27,762 185,613 1,483,722 38,934 1,771,279Accumulated depreciation as at 31 December 2010 (10,157) (10,162) (11,779) (55,575) (206,621) (5,608) (299,902)

Net carrying amount as at 31 December 2010 7,325 7,604 15,983 130,038 1,277,101 33,326 1,471,377


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3 Property and equipment (continued)

Vehicles

R000

Network &Mainframes

R000

ComputerHardware

R000

Furniture&

FittingsR000

Land &Buildings

R000

BuildingEquipment

R000

Total

R000

2009CostCost as at 1 January 2009 13,283 18,943 24,598 122,762 940,478 15,628 1,135,692Additions during the year 1,649 7,202 6,969 42,253 162,232 34,073 254,378

Reclassifications - (476) - (725) 1,201 - -

Disposals during the year (439) - (94) (2,951) - (190) (3,674)

Cost as at 31 December 2009 14,493 25,669 31,473 161,339 1,103,911 49,511 1,386,396

Accumulated depreciationAccumulated depreciation as at 1 January 2009 (8,236) (12,795) (11,579) (42,404) (187,986) (9,736) (272,736)Current year depreciation (1,059) (4,230) (4,519) (12,219) (10,172) (3,161) (35,362)Depreciation on disposal made during the year 439 118 76 2,687 308 1 3,629

Accumulated depreciation as at 31 December 2009 (8,856) (16,907) (16,021) (51,936) (197,850) (12,898) (304,469)

Nett carrying amountCost as at 31 December 2009 14,493 25,669 31,473 161,339 1,103,911 49,511 1,386,396Accumulated depreciation as at 31 December 2009 (8,856) (16,907) (16,022) (51,936) (197,850) (12,898) (304,469)

Net carrying amount as at 31 December 2009 5,637 8,762 15,451 109,403 906,061 36,613 1,081,927


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4 Intangible assets

Artwork

2010R000

ComputerSoftware

2010R000

Total

2010R000

Artwork

2009R000

ComputerSoftware

2009R000

Total

2009R000

Year ended 31 DecemberCostOpening cost 1,562 33,167 34,729 1,518 33,045 34,563Additions 55 1,897 1,952 44 133 177Disposal (34) (5,517) (5,551) (11) (11)

Total cost 1,583 29,547 31,130 1,562 33,167 34,729

AmortisationOpening balance - (25,094) (25,094) - (19,732) (19,732)Amortisation charge for the year - (4,157) (4,157) - (5,362) (5,362)Amortisation on disposals 5,517 5,517

Total accumulated amortisation - (23,734) (23,734) - (25,094) (25,094)

Nett carrying amountCost as at 31 December 1,583 29,547 31,130 1,562 33,167 34,729Accumulated depreciation as at 31 December - (23,734) (23,734) - (25,094) (25,094)

Net carrying amount as at 31 December 1,583 5,813 7,396 1,562 8,073 9,635


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5 Associates and joint ventures

5.1 Investment in associate

The investment in associate includes the Universitys 5% interest held in Qualification verificationservices (QVS) (formerly the South African Qualifications Authentication Authority (SAQAA)), anunlisted company incorporated in the Republic of South Africa. The investment is denominated inSouth African Rand (R).

The Universitys share of the results of the associate and its aggregate assets and liabilities is asfollows:

2010R000

2009R000

Assets 93 115Liabilities 139 115Revenue 3 -Loss for the year (46) (3)

The value of the Universitys investment in the QVS as at 31 December 2010 is Rnil. This is dueto the fact that the University was awarded shares in QVS for no consideration. A purchase priceallocation carried out in the prior year did not give rise to any fair values above the net assetvalue which was close to zero, nor does the University participate in the loss for the current year


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6 Available-for-sale financial assets

Cost MarketValue

Cost MarketValue

2010 2010 2009 2009R'000 R'000 R'000 R'000

Opening balance 1 January 1,818,933 2,061,490 1,655,192 1,714,536

Cost of additions during the year 4,146,656 4,146,074 1,728,469 1,728,466

Disposals during the year (3,951,399) (3,951,399) (1,564,728) (1,564,728)Surplus on disposals reclassified from

other comprehensive income toIncome from investments - (160,105) - (33,772)Increase / (decrease) in market valuerecognised in other comprehensiveincome - 147,282 - 216,988

2,014,190 2,243,342 1,818,933 2,061,490

There was no impairment of available-for-sale financial assets in 2010 and 2009.


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7 Inventories

2010R000

2009R000

Consumables at cost 3,665 3,494Study material at cost - 3,834

3,665 7,328

The cost of inventories recognised as expense and included in other operating expenses amountedto 10,849 (2009: 8,978).

8 Receivables and prepayments

2010R000

2009R000

Student receivables 112,208 88,403

Less: Provision for impairment (81,700) (58,803)

Student receivables - net carrying amount 30,508 29,600

Advances and pre-payments 8,487 15,011

Deposits 321 224

Staff loans 15 -


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9 Cash and cash equivalents

2010R000

2009R000

Call deposits, cash in the bank and cash on hand 81,847 84,712Short term deposits 252,643 443,106

334,490 527,818

The carrying amount of the Universitys cash and cash equivalents is denominated in South AfricanRand (R).

The following cessions in favour of ABSA Bank are in place:

ABSA fixed deposit 110 110ABSA fixed deposit 1,250 1,250Erf 3, Uitsaaisentrum, IR Gauteng 5,000 5,000

Portion 684, Doornfontein, IR Transvaal 2,000 2,000Erf 636, Doornfontein, IR Transvaal 2,000 2,000Erf 119-121, 123-126 and 61-66, Doornfontein, IR Transvaal 2,280 2,280

10 Borrowings

Long-term borrowings 46,923 50,418Current portion transferred to current liabilities (1,350) (925)


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10 Borrowings (continued)

The exposure of the Universitys borrowings to interest rate changes and the contractual repricingdates at the reporting dates are as follows:

2010R000

2009R000

Up to 1 year 1,350 925Between 1 and 2 years 1,054 1,350Between 2 and 5 years 1,582 7,735After 5 years 42,937 40,408

46,923 50,418

Less: current portion (1,350) (925)

Less: term portion 45,573 49,493

The fair value is determined using a discounted cash flow analysis based on market observableinputs. The majority of the loans carry variable interest rates which are considered to be marketrelated.

The carrying amounts of short-term borrowings approximate their fair values as the impact ofdiscounting is not significant. The University has no undrawn borrowing facilities.

The carrying amounts of the Universitys borrowings are denominated in South African Rand (R).


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11 Government grant

The Minister of Education has approved student enrolment plans for all higher education institutionsfor the period up to 2010. In addition, the Minister has also earmarked funding allocations primarilyfor the improvement of teaching/learning infrastructure. These allocations are intended to improvegraduate output efficiencies and to produce additional graduates in scarce-skill fields.

2010R000

2009R000

Opening balance as at 1 January 340,000 130,000Grant received during the year for the Doornfontein Campus 51 000 210,000

Closing balance as at 31 December 391,000 340,000

12 Trade payables, accruals and other liabilities

Trade payables 187,776 109,449Accruals 55,034 42,248Leave pay accrual 64,366 64,133Bonus accrual 21,198 19,043Value Added Tax 553 -

328,927 234,873


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14 Post-employment benefits

2010R000

2009R000

Post-retirement medical benefits (note 14.1) 155,348 140,309NTRF pension fund obligation (note 14.2.1) 7,857 10,808

163,205 151,117

UJ pension fund surplus (Note 14.2.1) 44,997 37,399

14.1 Post-retirement medical benefits

The University provides post-retirement medical benefits to certain qualifying employees in the formof continued medical aid contributions. Their entitlement of these benefits is dependent on theemployee remaining in service until retirement. The accumulated post-retirement medical obligationand annual cost of those benefits is determined annually by independent actuaries. The actuariallydetermined liability based on the Universitys current practice of funding a portion of its retirees andin service members medical aid was valued at 31 December 2010.

2010R000

2009R000

Present value of the obligation 155,348 140,309

155,348 140,309


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In the estimating the unfunded liability for post-employment medical care, the following assumptionsare made:Effective date of assumptions 31 Dec 2010 31 Dec 2009

Post retirement plan

Discount rate 8.50% 9,25%Health care cost inflation 7.25% 8,25%Continuation of membership 100% 100%Normal retirement age 65Yrs 65 yrsExpected retirement age 65Yrs 63.5 yrs


The University has established post retirement pension schemes that cover all employees. Presentlythere are two defined benefit plans and two defined contribution plans. The first defined benefit planis a final salary plan that has a defined contribution element in that should the plan assets exceedthe defined benefit obligation, employees are entitled to that surplus. The second is a final salary asdefined and is funded. The assets of the fund are held in an independent trustee administered fundin terms of the Pensions Fund Act of 1956, as amended. The pension fund is valued by independentactuaries on an annual basis using the Projected Unit Credit Method.

The latest full actuarial valuation of the pension fund was performed on the 31 December 2010.Contributions to the provident fund are charged to the statement of comprehensive income in theyear in which they are incurred.

The University withdrew from the National Tertiary Retirement Fund ('NTRF') with effect from30 June 2008. The members that form part of this fund are to be transferred to the UJ definedbenefit pension plan under a Section 14 transfer which is governed by the Pension Funds Act


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2010NTRF

2009NTRF

R000 R000

Balance at end of the year

Present value of the obligation (7,857) (10,808)Fair value of plan assets - -Defined benefit obligation at 31 December (7,857) (10,808)

Reconciliation of the movement in the defined benefit obligation:Present value of obligation: beginning of the year (10,808) (12,874)IAS 19.58(a) limited removed - 12,366Contributions paid - -

Current service cost (513) (669)Interest cost (1,017) (1,185)Expected return on plan assets - -Net actuarial gains/(losses) recognised in other comprehensive income 4,481 (8,446)

Balance at year end (7,857) (10,808)

Reconciliation of amounts recognised in the statement ofcomprehensive income:Current service cost 513 669


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14.2.1 Pension obligations (continued)

Restated2010

UJ Pension

Fund

Restated2009

UJ Pension

Fund

RestatedOpening

2009

UJ PensionFund

R000 R000 R000Balance at end of the yearPresent value of the obligation (483,133) (426,980) (399,373)Fair value of plan assets 613,274 559,573 524,233Unrecognised surplus due to IAS 19(a)limit

(85,144) (95,194) (91,399)

Defined benefit surplus at 31 December 44,997 37,399 33,461

Reconciliation of the movement in thedefined benefit surplus:Present value of surplus beginning of theyear

37,399 33,461 183,240

Change in IAS 19.58(a) limit 10,050 (3,795) (91,399)Contributions paid 5,757 6,448 5,856Current service cost (7,433) (8,518) (7,772)Interest cost (37,824) (27,943) (30,607)Expected return on plan assets 53,365 40,674 52,354Net actuarial losses recognised in other (16,317) (2,928) (78,211)


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14.2.1 Pension obligations (continued)

Restated2010

UJ Pension

Fund

Restated2009

UJ Pension

Fund

RestatedOpening

2009

UJ PensionFund

R000 R000 R000

Reconciliation of amounts recognisedin the statement of comprehensiveincome as part of profit & loss:Current service cost 7,433 8,518 7,772Interest cost 37,824 27,943 30,607Expected return (53,365) (40,674) (52,354)

(8,108) (4,213) (13,975)

Number of members 235 235

Reconciliation of amounts recognisedin statement of comprehensive incomeas part of profit & lossNet actuarial losses recognised (16,317) (2,928) (78,211)Change in IAS 19.58(a) limit 10,050 (3,795) (91,399)

6,627 (6,723) 169,610


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UNIVERSITY OF JOHANNESBURG and its subsidiaries


15 Other operating expenses

The following items are included in other operating expenses, among other items:

2010R000

2009R000

Repair and maintenance expenses 71,454 81,799Non-capitalisable assets 48,831 36,487Expenses relating to library book acquisitions written off 40,326 35,399Operating leases

- Equipment and vehicles 24,829 11,076Auditors remuneration 6,390 7,960

- external audit 3,659 3,560- internal audit 2,222 2,241- non-audit services 509 2,159

Unrecoverable debts/amounts written off 24,123 19,006Foreign exchange losses/(gains) 3,197 (2,039)Cleaning 41,014 33,786Consulting and contract costs 37,913 47,036Data Lines 8,364 8,752Entertainment 24,663 26,068Hire/Rental 18,487 17,740Insurance 6,773 5,289


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16 Other operating income

The following items are included in other operating income among other items:

2010R000

2009R000

Donations 95,673 63,793Public sales and services 26,762 15,861Profit on disposal of property, plant and equipment 20,446 3,629Hire out of facilities 9,553 12,861Sundry income 8,134 40,475Skills development income 6,378 5,979Events/entrance fees 2,502 4,052

Project income - 53,929

17 Income from investments

Dividend income on available-for-sale financial assets 26,982 28,715Interest income 93,528 99,466Profit on the sale of securities 187,402 52,888Loss on sale of securities (24,055) (19,116)Other (1,151) -


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19 Commitments and contingent liabilities

2010R000

2009R000

19.1 Commitments

Commitments approved, not contracted for 78,144 66,000

This represents capital expenditure budgeted for at reporting date, but not yet recognised in thefinancial statements. This expenditure will be financed from designated funds.

Bank guarantees

SA Post Office 250 250Van Graan & Associates 301 301City Power of Johannesburg 110 110Johannesburg City Council 174 174Eskom Holdings Limited 174 174ABSA Bank Limited 1,250 1,250

Operating leases


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20 Cash generated from operations

2010R000

2009R000

Surplus for the year 233,921 152,226

Adjustments for:

Increase in bad debt provision 24,123 -

Depreciation (note 3) 43,345 35,361

Amortisation (note 4) 4,157 5,362 Profit on disposal of property, plant and

equipment (20,446) (3,629)

Loss on disposal of intangible assets 34 -

Share of income from joint venture (note 5.2) 1,515 (13,272) Finance income (note 18) (8,153) (8,790)

Interest income on investments (note 17) (93,528) (99,466)

Finance cost (note 18) 6,306 6,658

Dividends received (note 17) (26,982) (28,715)

Profit on sale of shares (note 17) (160,105) (33,772)

Current service cost (note 14) 3,470 13,490

Interest cost (note 14) 26,103 39,432


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21 Financial risk management

Overview

The Universitys activities expose it to a variety of financial risks: market risk (includingcurrency risk, interest rate risk and price risk), credit risk and liquidity risk. The Universitysoverall risk management program focuses on the unpredictability of financial markets andseeks to minimise potential adverse effects on the financial performance of the University.

Risk Management is carried out by the Finance Division under policies approved by theAudit and Risk Committee of Council which provides written principles for the overall riskmanagement. The Audit and Risk Committee oversees the manner in which managementmonitors compliance with the risk management policies and procedures and reviews theadequacy of the risk management framework in relation to the risk faced by the University.

The Audit and Risk Committee is assisted in its oversight role by Internal Audit, whichundertakes both regular and ad hoc reviews of risk management controls and procedures.The results of these reviews are reported to the Audit and Risk Committee. Internal Auditfollows a risk based audit methodology primarily based on the Universitys risk registers.

21.1 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates andinterest rates, may affect the Universitys income or the value of its holdings of financial


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21.1 Market risk (continued)

ii) Interest rate risk

The University has large interest-bearing investments. Its investment policy allowsmanagement to invest working capital in interest-bearing, short-term investments up toone year. The period of each investment is linked to the cash-flow requirements to fundthe Universitys operations. These short-term investments are invested with the fivemajor South African commercial banks at the ruling interest rate on the day ofinvestment. The rates are fixed for the period of the investment. The amount investedin this manner is specified in note 9.

A 1% change in the interest rate could have a R2,526 million (2009: R4,431 million)interest income influence on an annual basis. This would actually never realise, as the

average period of investment is three to nine months and therefore the amount will be afraction of R2,526 million (2009: R 4,431 million).

The Universitys investment policy determines that all long-term investments, includingcapital and money market investments are managed by the Universitys Fund Managersunder mandate agreements. These agreements specify the asset allocation matchingthe risk that the University is prepared to take.

The mandates further specify the investment returns required by the University. These


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21.1 Market risk (continued)

iii) Price risk

The University and its subsidiaries are exposed to equity securities price risk because ofinvestments held by the University and classified on the consolidated statement offinancial position as available-for-sale financial assets. The University and itssubsidiaries are not exposed to commodity price risk. To manage its price risk arisingfrom investments in equity securities, the University and its subsidiaries diversifies itsportfolio. Diversification of the portfolio is done in accordance with the limits set by theInvestment Committee and the limits are included in the mandate agreement which theUniversity and the Fund Managers concluded.

2010

R000

2009

R000

Listed equities 1,392,979 1,226,782

For the year ended 31 December 2010, if the FTSE/JSE CAPI index increased/decreased by 10% with all other variables held constant and all the Universitys equityinstruments moved according to the historical correlation with the index, the non-currentinvestment revaluation amount on the statement of financial position would be R139,3million (2009: R122,7 million) higher/lower. Due to the unpredictability of equity market


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21.2 Credit risk (continued)

The University follows a multi-manager approach to the management of investments inorder to limit investment risk. Funds are invested in divergent portfolios subject tomandates developed to contain risk within set parameters. In order to hedge investmentfunds against fluctuations, the portfolio managers are allowed to invest a maximum of 20%of the available funds abroad.

All funds are invested with AAA rated financial institutions, or guaranteed by thegovernment.

Receivables comprise of outstanding student fees and a number of customers, dispersedacross different industries and geographical areas. The University is exposed to credit riskarising from student receivables related to outstanding fees. The risk is mitigated by

requiring students to pay an initial instalment in respect of tuition and accommodation feesat registration, the regular monitoring of outstanding fees and the institution of debtcollection action in cases of long outstanding amounts. In addition, students withoutstanding balances from previous years of study are only permitted to renew theirregistration after either the settling of the outstanding amount or the conclusion of a formalpayment arrangement.

i) Student and other receivables


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i) Student and other receivables (continued)

Details of the student receivables as at 31 December are:

2010R000

2009R000

Student receivables 112,208 88,403

- fully performing - -- past due but not impaired (4 months overdue) 30,508 29,600- impaired (more than 4 months overdue) 81,700 58,803

Less: Provision for impairment (81,700) (58,803)

Student receivables net carrying amount 30,508 29,600

The University also raises other trade receivables for the sale of goods and the delivery of services.It has measures in place to ensure that sales of goods and delivery of services are made tocustomers with an appropriate credit history. It does not insure its student or other receivables.

The Universitys credit terms with regard to other receivables are:


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2010

R000

2009

R000

Student receivablesAt 1 January 58,803 59,684Provision for receivables impaired 32,777 17,663Receivables written off during the year as uncollectable (9,880) (18,544)

At 31 December 81,700 58,803

Ageing of provision for impairmentHanded over to collecting agencies 2006 16 488Handed over to collecting agencies 2007 3 9,160Handed over to collecting agencies 2008 12,103 14,384Handed over to collecting agencies 2009 18,020 1,914Handed over to collecting agencies 2010 1,301 -4 Months overdue 50,257 32,857

81,700 58,803


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The other classes within other receivables do not contain impaired assets. The maximum exposure

to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.The University does not hold any collateral as security. The carrying amounts of the Universitysreceivables and prepayments are denominated in South African Rand (R).

Credit quality of financial assets

The credit quality of financial assets that are fully performing, as well as those that are past due butnot impaired can be assessed by reference to external credit ratings (if available) or to historicalinformation about counterparty default rates.

2010R000

2009R000

Trade receivablesCounterparties without external credit rating:

- Current students which will register in 2010/2011.These students are still studying and had no defaults in the past.The University expects them to pay their outstanding fees during

30,508 29,600


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21.3 Liquidity risk

Liquidity risk is the risk that the University will not be able to meet its financial obligationsas they fall due. The Universitys liquidity risk consists mainly of borrowings, accountspayable, accrued liabilities and student deposits received and postemployment benefits.

Liquidity risk is minimised by the Universitys substantial cash and cash equivalentbalances. The Universitys approach to managing liquidity is to ensure as far as possible,that it will always have sufficient liquidity to meet its liabilities when due, under both normaland stressed conditions, without incurring unacceptable losses or risking damage to theUniversitys reputation. Liquidity risk is managed by monitoring the daily borrowing levelsand by conducting cash flow forecasts on a weekly basis in order to maintain sufficientfunds to fund the business from cash generated by operations and funds generated frominvestments.

The table below analyse the Universitys financial liabilities according to relevant maturitygroupings based on the remaining period at the statement of financial position date to thecontractual maturity date. The amounts disclosed in the table are the contractualundiscounted cash flows.

Less than1 year

R000

Between1 and 2YearsR000

Between2 and 5YearsR000

Over5 yearsR000


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21.4 Capital risk management

The University and its subsidiaries objectives when managing reserves and working capital are tosafeguard the ability of the University and its subsidiaries to continue as going concerns and tomaintain an optimal structure to reduce the cost of capital.

In order to maintain the capital structure, the University and its subsidiaries have ensured a soundfinancial position by limiting exposure to debt and increasing investment and cash balances. Thisobjective is met by a well planned budget process each year in which the critical strategic objectivesof the University and its subsidiaries are addressed. The University also has a short and mediumterm infrastructure maintenance plan which is adequately resourced from budget funds.


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21.5 Financial instruments by category

The accounting policies for financial instruments have been applied to the line items below:

Loans &

receivablesR000

Available-

for-saleR000

Total

R000

31 December 2010Financial assets

Available-for-sale financial assets - 2,243,342 2,243,342

Trade and other receivables (excluding

prepayments) 62,602 - 63,185

Cash and cash equivalents 334,490 - 334,490

Financialliabilities at

amortised cost


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21.5 Financial instruments by category (continued)

The accounting policies for financial instruments have been applied to the line items below:

Loans &receivables

R000

Available-for-saleR000

Total

R000

31 December 2009Financial assets

Available-for-sale financial assets - 2,061,490 2,061,490

Trade and other receivables (excludingprepayments)

46,564 - 46,564

Cash and cash equivalents 527,818 - 527,818

Financialliabilities at

amortised cost


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21.6 Fair value estimation

Effective 1 January 2009, the University adopted the amendment to IFRS 7 for financial instruments thatare measured in the balance sheet at fair value; this requires disclosure of fair value measurements bylevel of the following fair value measurement hierarchy:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

Inputs other than quoted prices included within level 1 that are observable for the asset or liability,either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

The following table presents the Universitys assets and liabilities that are measured at fair value at31 December 2010:

Level 1 Level 2 Total

Available-for-sale financial assets

- listed shares 1,392,979 - 1,392,979

- listed stocks and debentures 220,563 - 220,563

- government stocks and bonds 159,584 - 159,584

- fixed deposits - 127,164 127,164

- unlisted shares - 1,130 1,130

- other deposits and loans - 314,967 314,967

- endowment policies - 26,955 26,955


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22 Related party transactions

22.1 Key management personnel

The following are considered to be related parties to the University:

University Council membersManagement comprises the members of the Management Executive Committee, ExecutiveDeans of faculties, Executive Directors of support service departments and Directors ofsubsidiaries.

Compensation paid to key management and members of Council

Members

of CouncilR000

Management

R000

2010

R000

2009

R000

Salaries and other short-term employeebenefits

333 48,667 49 000 42 850

22.2 Payment to members of the Council

Payment for attendance at meetings of the Council and its sub-committees


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22 Related party transactions (continued)

22.3 Related parties

The University of Johannesburg controls or owns 100% of the shares of the following companies:

Million Up Trading (Pty) LtdTWR Business Enterprises (Pty) Ltd

ARSA (Pty) Ltd

The University of Johannesburg is the sole beneficiary of the following Trusts:

UJ Trust

TWR Trust

STH Foundation Trust

The University of Johannesburg has a 55% investment in the following joint venture:

Photovoltaic Intellectual Property (Pty) Ltd

The University of Johannesburg has a 5% investment in the following associate:

South African Qualifications Authentication Authority (Pty) Ltd

22.4 Transactions with related parties

No transaction other than loans lease of office and administration fees have taken place between


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23.2 Critical accounting estimates and assumptions (continued)

23.2 Provision for post-retirement medical aid liability

Principal actuarial assumptions for the post-retirement medical aid liability for the year ended31 December 2010 are disclosed in note 14. Changes in assumptions may result in changes in therecognised provision for post-retirement medical aid liability.

23.3 Depreciation of property, plant and equipment

Depreciation on assets is calculated using the straight-line method to write off the cost less residualvalues over their estimated useful lives. The residual values and useful lives of assets arereviewed, and adjusted if not appropriate, at each reporting date.

23.4 Pension fund obligations

The present value of the pension obligations depends on a number of factors that are determinedon an actuarial basis using a number of assumptions. The assumptions used in determining the netcost (income) for pensions include the discount rate. Any changes in these assumptions will impactthe carrying amount of pension obligations. The group determines the appropriate discount rate atthe end of each year. This is the interest rate that should be used to determine the present value ofestimated future cash outflows expected to be required to settle the pension obligations. Other key


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56



25 Executive Remuneration

Designation Name Salary Allowances EmployerContributions

Total LeaveDaysSold

Meritbonus

StudyFees

GrandTotal

Vice-Chancellor Prof IL Rensburg 1,906,162 387,563 359,107 2,652,832 96,166 564,770 - 3,313,768

Pro-Vice Chancellor Prof D van der Merwe 1,589,609 238,534 325,151 2,153,294 490,242 498,841 - 3,142,377

Deputy Vice Chancellor (Finance) Prof JH Kriek 1,334,683 286,508 251,467 1,872,658 510,529 92,622 - 2,475,809Deputy Vice Chancellor(Academic)

Prof A Parekh 1,376,511 124,951 255,380 1,756,842 - 407,365 - 2,164,207Deputy Vice Chancellor(Research & Innovation) Prof A Habib 1,331,783 142,627 241,117 1,715,527 61,773 473,177 - 2,250,477

Deputy Vice Chancellor (Strategicplanning)

Dr Z Njongwe1,123,500 195,128 204,591 1,523,219 - - - 1,523,219

Registrar Prof M Muller 933,953 126,732 205,169 1,265,854 617,482 356,835 - 2,240,171

Executive Dean: Health Science Prof A Swart 901,483 89,916 187,243 1,178,642 52,012 209,434 - 1,440,088

Executive Dean: Science Prof IC Burger 864,039 187,726 145,057 1,196,822 - 292,459 - 1,489,281

Executive Dean: Economic andFinancial Prof A Dempsey 901,550 87,993 191,996 1,181,539 17,792 284,339 - 1,483.670

Executive Dean: Education Prof S Gravett 932,136 87,870 162,179 1,182,185 40,031 51,682 - 1,273,898

Executive Dean: Sport Prof WJ Hollander 739,143 200,494 162,452 1,102,089 41,005 177,133 - 1,320,227

Executive Dean: Law Prof P O'Brien 901,550 71,080 191,743 1,164,373 44,479 199,207 - 1,408,059


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57



25. Executive Remuneration (continued)

Designation Name Salary Allowances EmployerContributions

Total LeaveDaysSold

Meritbonus

StudyFees

Grand Total

Executive Dean: Humanities Prof RP Ryan 665,122 396,535 154,794 1,216,451 63,083 248,992 - 1,528,526

Executive Dean: Engineering Prof T Marwala 879,677 161,282 171,554 1,212,513 - 272,394 - 1,484,907

Executive Dean: Management Prof S Kruger 971,874 67,089 201,501 1,240,464 23,923 - - 1,264,387Executive Dean: Design andArchitecture Prof M Sauthoff 1,138,503 12,000 15,808 1,166,311 22,240 253,819 - 1,442,370Executive Director: Library andInformation Centre Ms J Sander 716,465 207,482 167,398 1,091,345 266,999 - - 1,358,344

Executive Director: Finance Mr JA van Schoor 731,880 310,326 168,649 1,210,855 669,846 171,600 - 2,052,301Executive Director: HumanResources

Dr P Dube1,080,765 114,316 184,214 1,379,295 - - - 1,379,295

Executive Director: Operations Mr R Du Plessis914,250 242,301 160,690 1,317,241 - - - 1,317,241

Executive Director: InformationOfficer (Chief) Mr A Vorster 916,718 40,441 192,932 1,150,091 651,466 157,128 - 1,958,685Executive Director: Expenditure Mr CJH Kruger 824,054 97,533 179,329 1,100,916 42,044 196,289 - 1,339,249Executive Director: Advancement Mr KP Swift 872,603 185,695 53,793 1,112,091 132,578 170,278 - 1,414,947Executive Director: AcademicSupport and Development Prof E de Kadt 1,087,295 29,469 14,812 1,131,576 33,871 198,302 - 1,363,749Executive Director: Studentaffairs Prof MS Mandew 938,048 84,845 169,365 1,192,258 9,008 167,154 - 1,368,420

Executive Director: Research andInnovation Prof CM Masuku 796,000 133,605 145,222 1,074,827 - 188,760 - 1,263,587Advisor to the Vice-Chancellor Mr Kgaphola 688,110 46,723 126,761 861,594 146,970 29,541 - 1,038,105


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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 31 December 2010Unaudited supplementary information

2010 2009R000 R000

ASSETSNon-current assets 3,861,413 3,294,786

Property, plant and equipment 1,471,377 1,081,927Intangible assets 7,396 9,635

Investment in joint venture 9,141 9,141Available-for-sale financial assets 2,243,342 2,061,490Defined benefit pension plan assets 130,141 132,593Non-current receivables 16 -

Current assets 409,827 606,273Inventories 3,665 7,328Receivables and repayments 71,672 71,127

-Students for fees 30,508 29,600

-Other receivables 41,164 41,527Cash and cash equivalents 334,490 527,818

4,271,240 3,901,059

EQUITY AND LIABILITIES EQUITYNon-distributable reserves 1,661,583 1,283,701

Funds invested in property, plant and


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59



Unaudited supplementary information

Councilcontrolled

unrestricted

Specificallyfunded

activities restricted

Sub total Student andStaff

accommodation restricted

Consolidated2010

R000 R000 R000 R000 R0002010Total income 2,172,944 140,624 2,313,568 74,878 2,388,446Recurring items 2,150,030 140,624 2,290,654 74,878 2,365,532State appropriations subsidiesand grants 1,016,126 - 1,016,126 - 1,016,126Tuition and other fee income 802,219 3,703 805,922 69,382 875,304Income from contracts 27,809 34,126 61,935 - 61,935

For research 21,033 33,061 54,094 - 54,094For other activities 6,776 1,065 7,841 - 7,841

Sales of goods and services 53,028 7,635 60,663 1,790 62,453Private gifts and grants 42,544 13,169 55,713 3,141 58,854

Sub-total 1,941,726 58,633 2,000,359 74,313 2,074,672

Income from investments 201,839 80,908 282,747 (40) 282,707Finance income 6,465 1,083 7,548 605 8,153

Non-recurring itemsProfit/loss on disposal of PPE 22,914 - 22,914 - 22,914


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60


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - continuedfor the year ended 31 December 2010


Councilcontrolled

unrestricted

Specificallyfunded




Consolidated2010

R000 R000 R000 R000 R000

2010Total expenditure 1,961,535 120,392 2,081,927 72,598 2,154,525Recurring items 1,915,166 118,943 2,034,109 71,585 2,105,694Personnel 1,200,638 29,952 1,230,590 12,695 1,243,285Academic professional 637,711 15,909 653,620 6,743 660,363Other personnel 562,927 14,043 576,970 5,952 582,922

Other current operating expenses 584,787 37,799 622,586 53,773 676,359Depreciation 39,662 3,081 42,743 603 43,346Amortisation of software 4,151 - 4,151 3 4,154Bursaries 84,136 48,108 132,244 - 132,244

Sub-total 1,913,374 118,940 2,032,314 67,074 2,099,388

Finance costs 1,792 3 1,795 4,511 6,306

Non-recurring itemsOther operating expensesCapital expenditure expensed 46,369 1,449 47,818 1,013 48,831

Nett surplus/(loss) 211,409 20,232 231,641 2,280 233,921


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61




Councilcontrolled

unrestricted

Specificallyfunded activities restricted


Accommodation restricted

Consolidated2009

R000 R000 R000 R000 R0002009Total income 1,847,802 182,082 2,029,884 66,767 2,096,651Recurring items 1,844,128 182,082 2,026,210 66,767 2,092,977State appropriations subsidies and grants 898,011 - 898,011 - 898,011Tuition and other fee income 705,148 1,926 707,074 60,774 767,848Income from contracts 5,617 34,227 39,844 - 39,844For research 2,054 34,182 36,236 - 36,236For other activities 3,563 45 3,608 - 3,608

Sales of goods and services 95,831 51,177 147,008 2,882 149,890Private gifts and grants 15,586 35,123 50,709 2,660 53,369

Sub-total 1,720,193 122,453 1,842,646 66,316 1,908,962

Income from investments 117,200 58,025 175,225 - 175,225Finance income 6,735 1,604 8,339 451 8,790

Non-recurring items 3,674 - 3,674 - 3,674

Profit/loss on disposal of PPE 3,674 - 3,674 - 3,674


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Councilcontrolled

unrestricted

Specificallyfunded




Consolidated2009

R000 R000 R000 R000 R000

2009Total expenditure 1,735,772 129,942 1865,714 78,711 1,944,425Recurring items 1,702,168 128,046 1,830,214 77,724 1,907,938Personnel 1,074,721 34,010 1,108,731 11,196 1,119,927Academic professional 576,324 18,064 594,388 5,947 600,335Other personnel 498,397 15,946 514,343 5,249 519,592Other current operating expenses 537,109 48,303 585,412 55,690 641,102Depreciation 25,796 2,943 28,739 6,622 35,361Amortisation of software 5,362 - 5,362 - 5,362Bursaries 56,738 42,790 99,528 - 99,528

Sub-total 1,699,726 128,046 1,827,772 73,508 1,901,280

Finance costs 2,442 - 2,442 4,216 6,658

Non-recurring itemsOther operating expenses - - - - -Capital expenditure expensed 33,604 1,896 35,500 987 36,487

Nett surplus/(loss) 112,030 52,140 164,170 (11,944) 152,226

Documents

Uj Afs 2010 for Council - 23 June 2011