DHET Funding of Universities Presentation to University Councils Training Regional Workshop University of KwaZulu-Natal 25 July 2014

2 FUNDING GRFUNDING GROUP OUP ContactDistance Undergraduate: up to 3 years22.5%13.5% Undergraduate: 4 years or more22.5%13.5% Postgraduate: up to honours18%9% Postgraduate: up to masters54%27% The normative units are calculated based on the qualification type headcount enrolments for a specific year. The qualification type headcount enrolments are multiplied by the graduation benchmark as well as the weight for the qualification type to determine the normative teaching output units. To determine the teaching development units the actual teaching output units are subtracted from the normative teaching output units. If the answer is positive, i.e. less actual teaching output units were generated a development grant can be awarded. Graduation benchmarks for contact and distance programmes CALCULATION OF TEACHING DEVELOPMENT GRANTS Demonstration on flip chart handout 5 A teaching development grant is awarded to institutions who do not achieve the normative teaching output units as determined by the DHET Funding Framework implemented in 2004/05. -Performance based funding framework. -Majority of funding allocated as block grant – used at discretion of Council for funding teaching and learning activities of the university. R19,561bn for 2014/15. -Earmarked grants allocated for specific purposes and most subject to annual progress reports and audit certificates. R8,509bn of which R3,915bn is allocated to NSFAS for universities. -Funding Review undertaken and report submitted to Minister. Report was released 28 Feb Technical Team and Reference Group were appointed in Feb to model recommendations and draft a revised funding framework Funding Framework and Review

Components of the Funding Framework 3 Block Grants - Teaching Input - Teaching Output - Research Output - Institutional Factor Earmarked Grants - NSFAS - Teaching and Research development ( moved from block grants) - Infrastructure and Efficiency Funding - Establishing the 2 new universities (new money) - Foundation Provision - Veterinary Sciences - Clinical Training Grants - National institutes - Multi-campus Grant (top sliced from block grants) - Interest and redemption on loans - African institute for Mathematical studies Council discretionary funds Government controlled funds

Funding grid for TIU - CESM 5 FUNDING GROUPCESM CATEGORIESFUNDING RATIO on UG level 1 07 education, 12 law, 18 psychology, 19 public administration and services business, economics & management studies, 05 communication & journalism, 06 computer & information sciences, 11 languages, linguistics & literature, 17 philosophy, religion and theology, 20 social sciences architecture & the built environment, 08 engineering, 10 family ecology & consumer sciences, 15 mathematics & statistics agriculture & agricultural operations, 03 visual and performing arts, 09 health professions & related clinical sciences, 13 life sciences, 14 physical sciences 3.5

TEACHING INPUT UNIT SHARES 6 OUPOUP

CALCULATION OF TEACHING OUTPUT GRANTS 7 Qualification Level Rand value per graduate in 2014/15Weight 1 st certificates and diplomas of 2 years or lessR st diplomas and bachelors degrees: 3 yearsR Professional 1 st bachelors degrees: 4 years and more R Postgraduate and Post-diploma diplomasR Postgraduate bachelors degreesR Honours degrees / higher diplomasR Non-Research Masters degrees and diplomasR Funding grid for TOU Determined by the number of graduates produced in a specific year Each graduate is weighted to generate a TOU Each graduate has a certain weight depending on the length of study /qualification type

8 FUNDING GRFUNDING GROUP OUP ContactDistance Undergraduate: up to 3 years22.5%13.5% Undergraduate: 4 years or more22.5%13.5% Postgraduate: up to honours18%9% Postgraduate: up to masters54%27% The normative units are calculated based on the qualification type headcount enrolments for a specific year. The qualification type headcount enrolments are multiplied by the graduation benchmark as well as the weight for the qualification type to determine the normative teaching output units. To determine the teaching development units the actual teaching output units are subtracted from the normative teaching output units. If the answer is positive, i.e. less actual teaching output units were generated a development grant can be awarded. Graduation benchmarks for contact and distance programmes CALCULATION OF TEACHING DEVELOPMENT GRANTS Demonstration on flip chart handout 5 A teaching development grant is awarded to institutions who do not achieve the normative teaching output units as determined by the DHET. R609,5 million for 2014/15 The aim of these funds is to provide financial support to all universities to improve their graduation rate (the graduation rate is the number of student graduate heads relative to the head count of enrolled students in a particular year). Weigh the FTE unsuccessful students of the universities having low success rates and larger proportions of unsuccessful FTE students with a maximum weighting of 1,5. TEACHING DEVELOPMENT GRANTS

CALCULATION OF RESEARCH OUTPUT GRANTS Funding Grid for ROUs 9 FUNDING GRFUNDING GROUP OUP Type of ResearchWeightRand values for ROU in 2014/15 Publication Units1R Research Masters Graduates1R Doctoral Graduates3R CALCULATION OF RESEARCH DEVELOPMENT GRANT Research development grant is awarded to institutions who do not achieve the normative research output units as determined by the DHET. The normative units are calculated based on the total number of permanently appointed instruction / research staff for a specific year and then multiplied by a predetermined ratio. R187,429 million available for research development for 2014/15

CALCULATION OF INSTITUTIONAL FACTOR GRANTS 10 FUNDING GRFUNDING GROUP OUP Institutional Grant for disadvantaged students operates by adding an amount to the teaching input grants depending on the proportion of black and coloured contact students that are South African Citizens. Proportion of African and Coloured students in relevant FTE student enrolment (Only SA citizens) Additional Amount added to relevant teaching input grant 80% and above10% 75%8.75% 70%7.5% 65%6.25% 60%5% 55%3.75% 45%1.25% 40% and Below0%

CALCULATION OF INSTITUTIONAL FACTOR GRANTS 11 FUNDING GRFUNDING GROUP OUP Institutional Grant for Institutional size gives additional teaching input grants to small institutions, depending on the size of their FTE student enrolments (contact and distance) Total FTE student enrolment: Contact + DistanceAdditional amount added to teaching input grant and less15% % % % % % % % % % and more0%

INFRASTRUCTURE 2012/13 to 2014/15 12 Category ofFunding categoriesTotal allocation University (R'000) Historically disadvantagedStudent housing – upgrading and new disadvantagedupgrading and new universities (HDIs)/Infrastructure backlog campusesupgrading and new Universities/campusesStudent housing other than HDIsupgrading and new Teacher Training – meeting scarce skills needs Health sciences – meeting scarce skills needs Engineering - meeting scarce skills needs All universitiesLife and Physical Sciences – meeting scarce skills needs Cooperative Projects – partnerships with HDIs Development of African Languages, Humanities and Social Sciences Disability units - upgrading and new Research infrastructure – well founded laboratories Project Management Capacity for 12 universities ICT New Allied Health Sciences University DHET Monitoring and Oversight5 000 Total

HDI and Student Housing Focus 13 Student housing 1 st &2 nd round - R1.3 bn 3 rd round - R1. 412bn Student Housing HDIs & R239m Non-HDIs. R1,114bn HDI Backlog funding category new. Mainly used for renovation of old and build of new teaching facilities, storm water, water storage, and sewerage facilities and in some cases fencing and back-up generators. WSU 2012/13 to 2014/15 allocations – Health Sciences – R75m, Engineering – R53m, Student Housing – R120m, Teacher Education – R60m, Backlog infrastructure - R100m

14 FUNDING GRFUNDING GROUP OUP ContactDistance Undergraduate: up to 3 years22.5%13.5% Undergraduate: 4 years or more22.5%13.5% Postgraduate: up to honours18%9% Postgraduate: up to masters54%27% The normative units are calculated based on the qualification type headcount enrolments for a specific year. The qualification type headcount enrolments are multiplied by the graduation benchmark as well as the weight for the qualification type to determine the normative teaching output units. To determine the teaching development units the actual teaching output units are subtracted from the normative teaching output units. If the answer is positive, i.e. less actual teaching output units were generated a development grant can be awarded. Graduation benchmarks for contact and distance programmes CALCULATION OF TEACHING DEVELOPMENT GRANTS Demonstration on flip chart handout 5 A teaching development grant is awarded to institutions who do not achieve the normative teaching output units as determined by the DHET. -UKZN: Disability − R4.7m, Engineering − R29m, Student Housing − R80m, Life & Physical Sciences R21m, Teacher Education − R45m, Infrastructure Backlog − R56m -MUT: Engineering − R65m, Student Housing − R85m, Infrastructure Backlog R70m, Disability − R2.8 m, Project management – R4m, Well Found Lab Equip − R7m -UNIZUL: Disability − R5.4m, Student Housing − R119m, African Languages − R70m, Infrastructure Backlog − R169m, Project management − R5m -DUT: Engineering − R80.7m, Student Housing − R115.4 m, Life & Physical Sciences − R35.7m, teacher Education − R79.5m, Infrastructure Backlog − R40m INFRASTRUCTURE – KZN UNIVERSITIES

15 FUNDING GRFUNDING GROUP OUP ContactDistance Undergraduate: up to 3 years22.5%13.5% Undergraduate: 4 years or more22.5%13.5% Postgraduate: up to honours18%9% Postgraduate: up to masters54%27% The normative units are calculated based on the qualification type headcount enrolments for a specific year. The qualification type headcount enrolments are multiplied by the graduation benchmark as well as the weight for the qualification type to determine the normative teaching output units. To determine the teaching development units the actual teaching output units are subtracted from the normative teaching output units. If the answer is positive, i.e. less actual teaching output units were generated a development grant can be awarded. Graduation benchmarks for contact and distance programmes CALCULATION OF TEACHING DEVELOPMENT GRANTS Demonstration on flip chart handout 5 A teaching development grant is awarded to institutions who do not achieve the normative teaching output units as determined by the DHET. -In the Funding Review a recommendation has been made to provide additional funding to disadvantaged institutions. An amount of R410,743 million in 2015/16 has been set aside for a new factor that will be linked to disadvantage. The distribution of this fund first need to be modeled and approved before details are provided. MINISTERIAL STATEMENT ON FUNDING

Conclusion Questions