Campus Forum:Resource Allocation at

UKZN in 2008

Glen Barnes

Director, Management Information

(for the Budget Working Group)

UKZN RAM - October 2007 2

The Budget Working Group New framework New process New timelines 5-year plan

UKZN RAM - October 2007 3

UKZN RAM - October 2007 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

UKZN RAM - October 2007 5

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 …

UKZN RAM - October 2007 6

Estimated Resource Base 2008

Total Income1,498.444

Total SubsidyIncome

Total Non-subsidy

Income

2008 Allocation (millions) 886.314 612.131

% of Total Resources 59.15% 40.85%

NOTE: benchmarked institutions and national average have higher non-subsidy ratios i.e. higher 3rd stream income

UKZN RAM - October 2007 7

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

UKZN RAM - October 2007 8

Strategic projects & portfolios

Contractual obligations

Benchmarking

ContractualSector

StrategicSector

SupportSector

CollegeSector

Benchmarking/SubtractionSector

allocations

UKZN RAM - October 2007 9

Proportional Allocation (%) into Sectors

Contractual

SectorStrategic

SectorSupportSector

CollegeSector

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

UKZN RAM - October 2007 10

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’

UKZN RAM - October 2007 11

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

UKZN RAM - October 2007 12

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!)

UKZN RAM - October 2007 13

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)

UKZN RAM - October 2007 14

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).

A 1000.0 0.7%

B 2000.0 1.4%

C 3000.0 2.1%

D 4000.0 2.9%

E 5000.0 3.6%

F 6000.0 4.3%

G 7000.0 5.0%

H 8000.0 5.7%

TOTALS

36000.0 25.7% (2)

Faculty drivers

UKZN RAM - October 2007 15

Faculty driver matrix Teaching Component (45%) Research Component (40%) Other Components (15%)

Teaching Inputs

2006

Teaching Outputs

2006Research Outputs

2006

Community Outreach

2006

Faculty Performance

2007

Faculty

Weighted

UG FTEs (%)

Weighted

PG FTEs (%)

WeightedNon-

research Graduate

s (%)

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

UKZN RAM - October 2007 16

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

UKZN RAM - October 2007 17

Phased implementation …

College2007

Actual 2008 2009 Target

Agriculture, Engineering & Science 33.5% 32.9% 32.3% 31.6%

Health Sciences 20.0% 20.3% 20.6% 20.9%

Humanities 29.6% 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

UKZN RAM - October 2007 18

Allocation Rate towards the Target Rate (%)

33.5%32.9%

32.3%31.6%

20.0% 20.3% 20.6% 20.9%

29.6% 29.6% 29.5% 29.4%

16.9% 17.3% 17.6% 18.0%

13%

18%

23%

28%

33%

38%

2007 Actuals 2008 2009 2010

Agriculture, Engineering & Science Health Sciences Education & HDSS Law & Management Studies

UKZN RAM - October 2007 19

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

UKZN RAM - October 2007 20

Thank you …

UKZN RAM - October 2007 21

Allocation Amount towards the Target (millions)

229

240236

231

137

149 151 153

203

216 216 215

116

126 129 132

70

90

110

130

150

170

190

210

230

250

2007 Actuals 2008 2009 2010

Agriculture, Engineering & Science Health Sciences Education & HDSS Law & Management Studies