Page 162 - UniZulu Annual Report 2020

Interest-Bearing Borrowings
The interest-bearing borrowings of R19,3 million (2019: R22,0 million) relate to loans raised from DBSA for the construction of student residences in 2007 and the purchase and development of the Richards Bay campus. The initial amounts advanced to the University were R24 million for the student residence and R16 million for the Richards Bay campus development. These loans are to be settled on 30 June 2025 and 30 June 2027 respectively. There’s a cession agreement in place between the University and DBSA for a certain investment portfolio with a market value of R29,0 million at year end. Refer to note 12 of the Annual Financial Statements.
Table 66: Equity Funds
Deferred Government Grant
In terms of IAS20: Accounting for Government Grants and Disclosure for Government Assistance in respect of capital projects is recognised as deferred income and released to the income statement over the useful life of the asset.
Grants utilised to acquire property, plant and equipment, but not yet released to income, amounted to R380,2 million (2019: R233,5 million), while unspent grants totalled R1 807,9 million (2018: R1 407,9 million). Further details can be found under note 10 of the Annual Financial Statements.
Accumulated Funds
The University has a total of R2 146,9 million (2019: R1 902,4 million) in accumulated funds. Over the last three years, the University has maintained a high level of funding/equity with a healthy level of Council-controlled funds. The negative amount reflected in restricted funds relate to University residences that are accounted for separately.
SUMMARY OF EQUITY FUNDS
2018
2019
2020
R’000
R’000
R’000
Non-distributable
508 366
513 845
522 207
Restricted
31 797
4 015
(12 786)
Non-restricted
1 196 892
1 384 588
1 637 474
Total
1 737 055
1 902 448
2 146 895
UNIVERSITY OF ZULULAND ANNUAL REPORT 2020
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