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The Funding Challenge for The African Universities Edulink-AUDIS Informative seminar K.U.Leuven 4-6 June 2008 By Angelo Macuacua Vice-Rector for Adm. and.

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Presentation on theme: "The Funding Challenge for The African Universities Edulink-AUDIS Informative seminar K.U.Leuven 4-6 June 2008 By Angelo Macuacua Vice-Rector for Adm. and."— Presentation transcript:

1 The Funding Challenge for The African Universities Edulink-AUDIS Informative seminar K.U.Leuven 4-6 June 2008 By Angelo Macuacua Vice-Rector for Adm. and Resources Eduardo Mondlane University Maputo - Mozambique

2 Objectives To discuss how the international challenges in High education funding is affecting EMU. To present the EMU experience of university activities funding. To present the EMU Financial strategy to address the lack of funds. To receive the participants insides to improve the EMU funding mechanisms.

3 Presentation Outline The Funding challenge for the African Universities. EMU background The Funding Model of Eduardo Mondlane University Fund Raising at Eduardo Mondlane University: Past and Future Perspectives. EMU Financial Strategy.

4 Challenges of African Universities for Funding The presures of expansion and massification. The economic problems facing most African countries. A changed fiscal climate and policy direction induced by multilateral agencies. The presure of other social and health issues (e.g. HIV-AIDS, frequent natural disasters, etc.) on the State Budgets. The inability of students to pay tuition rates. Misallocation of the available financial resources.

5 Evolution Indicators Indicators19982006 Number of Faculties913 No of Undergraduate courses2256 No of Master Program06 No of undergraduate Students6.50013.914 No of Master Students0344 Number of Academic staff7111.170 No of Non-academic Staff1.5182.367 University Budget (1,000 USD)17.89539.125

6 UEM Funds Allocation Model State Funds, Central Research Programs and Loans All resources are received by the Center and then allocated to Departments and Services, which have management power (Decentralized bureaucracy). Strategic decisions are taken at the Rectorate level but routine decisions and implementation are made by Departments (Decentralized Bureaucracy). Donations and self-regenerated income: Income is earned by the departments and is taxed to cover the central administration expenses and the remainder is spent by departments (Managed Entrepreneurialism). Income is earned by departments and retained by the them (Laissez-faire model).

7 Funds Allocation Model

8 Limitations of the Current Model Higher number of Bank accounts making very difficult the cash control. Inability of better cash reserve management. Difficulties on financial reporting. Difficulty of financial planning, management and control.

9 Funds Allocation: Future Model StateDonorsCreditors Clients Programs Activities FacultiesDirectoratesCenters UEM Budget

10 Evolution of Consolidated EMU Budget in 2002 - 2006 7,8%

11 2006 EMU Funding Pág. 3

12 EMU Funding em 2006

13 EMU Financial Strategy 1. Principles 2. Institutional Strategies 3. Diversification of funds sources 4. Distance Learning for financial presure reduction 5. Effective financial management of the EMU. 6. Cooperation and Partnership

14 EMU Financial Strategy: Principles 1. The University is one organization, not a collection of competing business units (Faculties and Divisions). 2. The Budget is a strategic instrument to drive the University’s future direction and the changes necessary to ensure the University’s strategic objectives are met. 3. The budget model should be fair and equitable, as simple as possible, transparent and responsive to change. 4. There will be a Strategic Planning Fund which, at the discretion of the Vice-Chancellor will be applied to University strategic priorities.

15 EMU Financial Strategy: Principles (cont.) 5. Faculties may decide to allocate budgets on a different basis from the central allocation to their Departments based in their unique teaching, research and community service contributions to achieving the strategic priorities of the University. 6. The financing of major capital projects will be assessed on a case-by-case basis. 7. There will be a reserve for contingencies of a minimum of 1% of budgeted income. The reserve may be used to buffer income fluctuations or to meet unforeseen expenditures.

16 EMU Financial Strategy: Institutional Strategies Integrate financial planning with institutional policies. Facilitate generation of income and cost recovery at the basic unit level. Reduce costs and increase efficiency trough better utilization of resources. Develop appropriate administrative structures. Develop and appropriate management information system. Provide appropriate training for the staff.

17 EMU Financial Strategy: Diversification of Funds Sources Fees from continuing education programs organized for industries and professions. Income from tailor-made program Profits from retailing through shops. Income from rents of conference facilities, sports facilities and equipments for external use. Income from rents of residential facilities during holidays. Research patents, licenses, royalties and overheads.

18 EMU Financial Strategy: Distance Learning role The distance learning as way to meet the massive expansion of the University with relatively less funding. The availability of ICT and easy access to training material as a way of reducing the cost of higher education. The training material prepared by the staff could improve the teaching/learning strategy of regular program.

19 EMU Effective Management: Doing More With Less Financial Resources Rational allocation of funds Management of cash reserves Production and monitoring of financial indicators Better utilization of resources Evaluation and auditing Protection of funds from fraud.

20 EMU Financial Strategy: Cooperation and Partnership Cooperating and partnership within the university: Faculties, schools, departments, lectures and students. Cooperation and partnership with other national and international education institutions. Cooperation with government agencies, NGO and private sector entities.

21 Aspects for Assistance in Financial Management Operationalization of income generation diversification. Strengthening cooperation management Capacity development of fund rising at Faculty and academic Department level. Training the financial management staff at Centre and Local level.

22 Finally Muito Obrigado Thank Very Much Merci Buku

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