Page 53 - Transformation Report 2021

3.2 Financial Performance Indicators healthy financial position. The only indicator of concern is
Council approved the use of twelve indicators to monitor the student debt ratio at 38.92 percent. Albeit lower than
the financial performance of the University. Table 21 is an the previous year, the proportion of student debtors who
overview of these indicators from 2017 to 2021. These could possibly not settle their student debt remains high.
financial indicators show that the University is in a relatively

TABLE 22:
NELSON MANDELA UNIVERSITY FINANCIAL INDICATORS (2017- 2021)

FINANCIAL INDICATORS 2021 2020 2019 2018 2017

Council controlled: - State support income (State 50.14% 52.28% 49.09% 48.15% 47.89%
appropriations / total recurrent income).

Council controlled: - Own funding as % income
(Other income/total recurrent income). 49.85% 47.71% 50.91% 51.84% 52.11%

Council controlled: - Staff cost as % total recurrent
expenses - Total Staff costs (Council controlled - 63.93% 61.56% 60.69% 60.87% 63.77%
AFS)/Recurrent expenditure (council controlled).

Council controlled: - Staff cost as % total recurrent
income - Total Staff costs (Council controlled -
AFS) / Recurrent income (council controlled). The
expected normal standard for total personnel cost 55.84% 57.71% 54.34% 53.71% 56.69%
as a percentage of total revenue is between 58%
and 63%.

Council controlled: - Staff cost (Academic and
Professional Administrative and Support Staff and as
a % of tuition fees and operational subsidy). Council 57.89% 59.82% 58.14% 59.38% 60.53%
Benchmark 65%.
Council controlled: - Net surplus as % including
finance income. The DHET expected normal
standard is a surplus. Council benchmark of 12.64% 6.25% 10.47% 11.76% 11.12%
between 5% and 10 % from council- controlled
operations.

Council controlled: - Net surplus as % excluding
finance income. 7.43% -0.16% 3.01% 5.12% 4.25%

Student debt ratio: - Student Debtors before
provision for doubtful debt / Total Tuition & Other 38.92% 42.22% 24.34% 22.35% 17.64%
Fees.

Short Term Liquidity ratio (current assets/current
liabilities). Expected normal standard is >2:1 5.13 6.91 8.99 10.23 8.28
Sustainability ratio (Council-controlled reserves
only) (Council-controlled reserves / annual recurrent
expenditure on Council-controlled expenditure)
Council has in 2020 set this target at 1.00 as for 0.61 0.55 0.55 0.62 0.46
resreves to equal the annual cost of recurrent
expenditure.

Sustainability ratio (Total reserves) Total reserves /
annual recurrent expenditure. 1.88 1.61 1.6 1.63 1.29

Post-retirement Liabilities (balance sheet). R75m R62m R69m R68m R61m

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