Page 161 - UniZulu Annual Report 2020

STATEMENT OF FINANCIAL
POSITION
Property, Plant and Equipment
The closing book value of property, plant and equipment was R1 300 million (2019: R1 197 million). In terms of UNIZULU’s accounting policies, land and buildings are stated at fair value and revalued at least every five years. The value of land and buildings was updated by implementing a revaluation in the current financial period due to the uncertainties of the current economic environment and the possible impact on the value of land and buildings.
The total net increase of R103 million was made up of R126,1 million additions offset by a depreciation of R44,6 million, revaluation surplus of R31,6 million and an impairment loss of R10,2 million.
The additions consist of:
• R31,5 million work in progress
• R21,9 million for buildings
• R14,5 million for land• R4,8 million for furniture and
equipment
• R49,4 million for data and computer equipment
• R4,0 million for motor vehicles
This significant increase in additions is as a result of an acquisition of student accommodation as well as upgrades to ICT infrastructure and security infrastructure.
Investments and Cash
At year-end, cash and cash equivalents amounted to R2 381,1 million (2019: R1 960,9 million). The increase is attributable to positive operating cash flows. In addition, the University received earmarked grants amounting to R445 million, for which the biggest portion remains unspent for the current financial year. Expenditure towards infrastructure maintenance and new built programmes will be spent towards the end of the following financial period, which will, in turn, contribute to a possible decline in cash and cash equivalents.
The amounts pertaining to the DHET Infrastructure Programme and other designated grants are separately invested in identifiable investment portfolios.
The investment of funds is done in terms of the approved Investment Policy.
Table 65: Financial Assets and Cash and Cash Equivalents
INVESTMENTS AND CASH
2018
2019
2020
R’000
R’000
R’000
Financial assets at fair value
521 995
559 531
576 906
Cash and cash equivalents
1 689 340
1 960 857
2 381 113
Total
2 211 335
2 520 388
2 958 019
Post-Retirement Benefits and Obligations
The University has a pension and a provident fund that are defined benefit plans as found in IAS19. Additional contributions were made into these funds in recent years as advised by the actuary and there is a surplus in both funds. A Board of Trustees representing the members and the University meets on a quarterly basis to review the fund and the investment performance.
In addition to this, the University has a post-employment medical benefit for employees who were employed prior to 1 August 2005. On retirement, these employees are entitled to a subsidised medical contribution to medical schemes. At year- end, the post-retirement obligations as actuarially calculated in respect of this scheme amounted to R111,7 million (2019: R110,9 million). This liability is not separately funded.
Student Debt
The total student debt before allowance for expected credit losses was R180,9 million (2019: R171,8 million), reflecting an increase of R9,1 million compared to the previous year. The main reason for this increase is slow payments from NSFAS as the student population of the University is largely NSFAS funded.
The allowance for expected credit losses at the end of 2020 totalled R88,7 million compared to R97,4 million in the previous year. This decrease is mainly due to the debt written off of R10,9 million (2019: R15,9 million) during the year. In calculating the allowance for expected credit losses, the allocations from NSFAS for 2020 that were only received in 2021 was taken into account. This effectively reduced the amount required as a provision for impairment. Refer to note 7 of the Annual Financial Statements for further details.
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UNIVERSITY OF ZULULAND ANNUAL REPORT 2020