1. Campus Forum: Resource Allocation at UKZN in 2008 Glen Barnes Director, Management Information (for the Budget Working Group)

2. UKZN RAM - October 20072 The Budget Working Group  New framework  New process  New timelines  5-year plan

3. UKZN RAM - October 20073

4. 4 Resource allocation process  Identify areas of income Model subsidy on given data Model fee income on enrolment plan  Estimate the expected Strategic appropriations  Estimate the Contractual obligations  Make high-level decisions on Sector allocations  Run the RAM …  Produce the indicative budget to Budget Holders

5. UKZN RAM - October 20075 Components of the model  Detailed income areas State subsidy (Block Grants, ad hoc Grants, Earmarked funding) – determined by the funding formula in year n-2 Fee income (estimated from the enrolment plan) Investment income Recoveries (JME & Subventions) Other income  Clearly define the resource base …

6. UKZN RAM - October 20076 Estimated Resource Base 2008 Total Income 1,498.444 Total Subsidy Income Total Non-subsidy Income 2008 Allocation (millions) 886.314612.131 % of Total Resources 59.15%40.85% NOTE: benchmarked institutions and national average have higher non-subsidy ratios i.e. higher 3 rd stream income

7. UKZN RAM - October 20077 Components of the model …  Four Sectors: Strategic sector – informed by the strategic plan Contractual sector – defined contractual obligations (statutory) College sector – all academic units, schools & faculties Support sector – all non-college units & divisions

8. UKZN RAM - October 20078 Strategic projects & portfolios Contractual obligations Benchmarking Contractual Sector Strategic Sector Support Sector College Sector Benchmarking/S ubtraction Sector allocations

9. UKZN RAM - October 20079 Proportional Allocation (%) into Sectors Contractual Sector Strategic Sector Support Sector College Sector Proportional Allocation (%) 10.798%11.105%29.297%48.800% 2007 proportion (%) 10.569%10.150%33.452%45.855% Increase 2007 to 2008 (%) 9.21%9.68%-12.13%6.70% NOTE: benchmarked institutions have 50-60% academic proportions

10. UKZN RAM - October 200710 The role of the RAM  Advises the allocation to budget holder At executive level No separate allocations to Staff Compensation and Supplies & Services No allocation within the units of the budget holder Budget holder can consider ‘cross-subsidizing’

11. UKZN RAM - October 200711 College Sector Agriculture, Engineering & Science Health Sciences Education & HDSS Law & Management Studies Support Sector Vice Chancellor DVC (Administration & Corporate Governance) DVC (Research, Knowledge Production & Partnerships) DVC (Teaching & Learning) DVC (Student Academic Administration) Chief Finance Officer Executive Director (Equity & HR) Pro VC (Corporate Affairs) Executive Dean (Students) Registrar Council Funds Land & Building Maintenance Provision for Bad Debts Strategic Sector Scholarships Student Financial Aid Libraries Research Support Grant Access/Foundational Funding Teaching Development Grant Research Development Grant Engineering & SET Initiatives Contractual Sector Provision for Post-retirement Medical Aid Pensioner Contributions Fee Remissions / Bursaries (Staff) Depreciation Finance Costs

12. UKZN RAM - October 200712 The role of the RAM …  Within-sector allocation to budget holder: Strategic sector – estimated value per project Contractual sector – estimated value per portfolio College sector – faculty drivers … Support sector – history/benchmarked (for now!)

13. UKZN RAM - October 200713 Faculty drivers  Grouped & weighted as: Teaching & Learning (45%) Research (40%) Community outreach & other activities (15%)  Corresponds to the agreed proportions of academic endeavor (e.g. SPDSS)

14. UKZN RAM - October 200714 Faculty Driver (%) (1) The faculties are listed along with the values of the particular metric or driver, e.g. Weighted FTEs, Student Head Count, Research Publications, etc. The proportional contribution (%) of the driver considers two components, (1)the ratio of the faculty metric to the total for all faculties, and (2)the weighting given to the driver in contributing to the total allocation (over all drivers). A1000.00.7% B2000.01.4% C3000.02.1% D4000.02.9% E5000.03.6% F6000.04.3% G7000.05.0% H8000.05.7% TOTALS 36000.025.7% (2) Faculty drivers

15. UKZN RAM - October 200715 Faculty driver matrix Teaching Component (45%)Research Component (40%)Other Components (15%) Teaching Inputs 2006 Teaching Outputs 2006 Research Outputs 2006 Community Outreach 2006 Faculty Performance 2007 Faculty Weighted UG FTEs(%) Weighted PG FTEs(%) Weighted Non- research Graduates(%) Weighted Research Graduates(%) DoE Approved Output Units(%) Output Units(%) EnrolPlan Ratio(%) Engineering Science & Agriculture Health Sciences Medicine Education HDSS Law Management Studies TOTALS 25.7%12.8%6.5%16.8%23.2%0.0%15.0% NOTE: metrics based on audited data submitted to DoE and consider the new funding framework

16. UKZN RAM - October 200716 Implementation in 2008…  Designed and tested in 2007 Not implemented ‘Inherited’ faculty ratios  Phased implementation …  Some immediate improvements Proportional contributions to teaching (shared) - not done (no sign-off) Proportional contributions to graduates (fractional) - done

17. UKZN RAM - October 200717 Phased implementation … College 2007 Actual20082009Target Agriculture, Engineering & Science33.5%32.9%32.3%31.6% Health Sciences 20.0%20.3%20.6%20.9% Humanities 29.6% 29.5%29.4% Law & Management Studies 16.9%17.3%17.6%18.0% NOTE: (1) the %s are close, (2) they change every year, (3) a small % change means a large budget change

18. UKZN RAM - October 200718

19. UKZN RAM - October 200719 Concluding remarks  Given some insight into the design and role of the RAM  Attempted to highlight … some areas of concern in the current resource base some implications for the 2008 budget

20. UKZN RAM - October 200720 Thank you …

21. UKZN RAM - October 200721