Page 95 - DUT Annual Report 2023

Expenditure Composition
Figure 29. Expenditure composition
Recurrent Council-controlled personnel costs constitute 53.75% (2022: 57.99%), other operating expenses constitute 43.57% (2022: 37.85%), while depreciation and amortisation represent 2.68% (2022: 4.17%) of recurrent total expenditure. Recurrent Council-controlled and specifically-funded activities restricted, expenditure increased by 10.48% from R2 222.38 million in 2022 to R2 255.27 million in 2023.
Personnel Costs – Academic and Other Staff
Personnel costs increased to R1 378.53 million (2022: R1 270.98m). The increase is attributable to the adjustment in the gross salaries of 5.4% (2022: 5.4%) for the year under review.
Council-Controlled Ratio of Staff Costs to Recurrent Income
Recurrent income is defined as a sum of state appropriation, as well as tuition and related fees. The ratio of staff costs to recurrent income is 55.09% (2022: 55.17%). The percentage decrease from the previous year is a result of the high number of vacant posts and the increase in the recurrent income base.
Post-retirement benefits consist of the following:
• Pension:
Members who transferred from the AIPF (government pension fund) to NTRF in 1994 are entitled to minimum defined benefits, which are guaranteed upon normal retirement age (60 years). This is a closed scheme.
• Medical Aid:
The post-retirement medical aid scheme of the university applies to eligible members who are former Technikon Natal staff who entered the medical aid scheme before 1 January 2000. No benefit is payable upon withdrawal. The scheme currently has 75 employed and 180 retired members.
The actuarial valuation of the post-retirement benefits obligation as at 31 December 2023 was R169.48 million (2022: R180.68 million).
Other Operating Expenses
Other recurrent operating expenses increased by 16.16%, from R859.19 million in 2022 to R998.05 million in 2023. This is as a result of general inflation and the implementation of the new ERP system.
DUT ANNUAL REPORT 2023
93