Page 45 - UNAM Executive Annual Report 2018

Financial Report

Mr. Ralph Van Rooi
Bursar
Office of the Bursar

General Review
An unqualified audit opinion on the financial statements indicated that the year under review ended
with a total comprehensive income of N$83 million (2017: N$106 million). The Statement of Cash Flows
reflects a decrease cash movement of N$1.9 million (2017: positive cash movement of N$61.3 million)
and a positive bank balance of N$76.6 million (2017: N$78.5 million positive) for commencing operations
for the next financial year. Accounting policies were applied consistently throughout the financial year.
The University has not early adopted any new standards. The new revenue standards, IFRS 15 and IFRS 9
Financial Instruments, has been adopted for the financial year ending 31 December 2018.

During the year under review, the University invested in physical infrastructure and equipment, to the value of
N$198.3 million, which brought total non-current assets to N$3.003 billion (2017: N$2.908 billion restated). Government
contributed N$374 million (2017: N$108 million) towards repayment of a commercial loan from FNB Namibia for
development projects. The FNB Namibia loan amounted to N$391 million and was settled in full including interest.

Revenue & Expenditure
Revenue
The government of the Republic of Namibia remains the major revenue source for the University’s operations.
During the 2018 financial year, government subvention for operational expenses amounted to N$960 million (2017:
N$1.08 billion), which represents an 11% decrease compared to 2017. It is also necessary to mention that student
fee resources and charges of the University increased to N$611.1 million, which represents a 12.4% growth over 2017.
This increase resulted from an increase in fees of 8%, as well as an increase in enrolment. Some revenue sources that
contributed to this increase include tuition fees, accommodation fees and registration fees. The total income for the
year under review amounted to N$1.724 billion, compared to N$1.707 billion for the 2017 financial year.

Expenditure

The total expenditure for the year under review amounted to N$1.774 billion (2017: N$1.680 billion).

Employment costs amounted to N$1.252 billion (2017: N$1.141 billion), excluding the movement in
provisions for post-retirement benefits, and accounted for 71% of total expenditure (2017: 68%) and
73% of total revenue (2017: 67%). Employment costs will always remain the main expenditure category,
d u e t o t h e nature of the University ‘s operations. Administration and other costs amounted to
N$521.8 million (2017: N$538.7), which represents 29.4% (2017: 32.1%) of the total expenditure. including
depreciation and provisions.

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