Page 40 - UKZN Foundation AR 2023

UNIVERSITY OF KWAZULU-NATAL FOUNDATION TRUST Trust Deed number: IT 589/2003
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023
6 EMPLOYEE BENEFiTS
Balances at beginning of the year
Utilised during the year
Charged to the income statement (note 10) Balances at end of the year
2023 2022 RR
Leave Pay Total Total RRR
99 655 ( 108 520) 116 930
Employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
7 UKZN CURRENT ACCOUNT
The Foundation has a related party relationship with UKZN, of which it is a subsidiary entity for the purposes of preparing the University’s consolidated financial statements. Transactions between the two parties are summarised below, together with the respective year-end balances owing to and by each other. These transactions and balances are eliminated on consolidation.
(108 520)
116 930
108 065
(178 221)
108 519
108 065
99 655
6 646 695
(3 443 249)
(6 646 695)
862
(65 957)
8 225 432
912 041
33 139
-
( 35 942)
-
2 660 250
(2 707 217)
5 579 359
Balance owed to UKZN at beginning of year
5 579 359 (1 073 759) (5 579 358)
4 018 469 (70 086) 9 618 177 484 237 54108 - (36446) - (4 402 869) 4 426 134 13 017 965
Add/(less):
Donations and grants received by UKZN on behalf of Foundation Funds transferred by Foundation to UKZN : investment withdrawal Investment contribution
Foundation portion : UKZN post-retirement obligations
Expenses paid and net disbursements by UKZN for the Foundation Endowment Funds: transfers to UKZN operations
Purchase of property, plant and equipment by UKZN
Loss on disposal of asset
Depreciation of property, plant and equipment by UKZN Remeasurement of post retirement obligations
Bank account: transfers due to UKZN
Change in working capital
99 655
169 357
Balance owed to UKZN at end of year
8 DONATiONS AND GRANTS iNCOME
The Trust recognises revenue at a point in time when donations are received in the Trust’s bank account. Donations and grants comprise international and national donations
International donations 19 961 855 Unspecified endowment fund 73 102 046
33 791 813
81 872 569
115 664 382
Total donations and grants income
9 ENDOWMENT FUNDS: iNVESTMENT iNCOME
Allocation of investment income Specified endowment funds National donations
Total endowment funds’ portion of investment income Net fair value movements in investments
Specified endowment funds
Unspecified endowment fund
Total net fair value movement in investments
93 063 901
3 141 648 2 770 373 5 912 021
17 260 450 15 220 638 32 481 088
4 174 105
3 680 569
7 854 674
(7 564 925)
(6 670 944)
(14 235 867)
The allocation of investment income to the various specified endowment funds is based on the prevailing University treasury management (“pool”) rate of return for the year. The purpose of the income stabilisation fund is to enable allocations of income to the specified endowment funds in years of relatively poor investment performance to be maintained at levels closely equivalent to the University “pool” rate. A rate equal to the University (“pool”) rate of return of 8.72% was applied in 2023 (2022: 6.36%).
38 UKZN FOUNDATiON ANNUAL REPORT 2023