This is how the NWU’s budget process works:
Each budget unit (three campuses and the Institutional Office) takes ownership of its own budget and has a budget committee that oversees the budget process of the budget unit. The Institutional Budget Committee (with representatives from all the budget units) recommends the budget to the institutional management team, which approves the budget and recommends it to the Finance Committee. The Council finally approves the budget at the recommendation of the Finance Committee.
In other words, the NWU budget process is interactive, with process different levels of management taking ownership and participating actively in compiling the budget for the next year, while taking into account the trends of the past, risks and concerns, benchmarking as well as future goals/plans.
Announced 0% fee increase
After the 0% fee increase announcement on 23 October 2015, the total fee shortfall was calculated and the initial 2016 budget revised. The tuition fee increase on all campuses is 0% (2015 = 9,25%) and the registration fees on all campuses are R1 490.
Budget adjustments after completion of initial budget process
After the completion of the initial budget process, further budget adjustments to the amount of R10,8 million were identified (as relevant information became available), which results in a total shortfall of R55,6 million on the 2016 budget. The shortfall will be dealt with by means of a revision of the 2016 expense budget, since no additional third stream income could be identified yet. Adjustments were made in the following areas: bursaries, block grant subsidies, interpreting services, provision for bad debts and provision for the currency deficit.
Positive outcomes
- The decrease in the multi-campus grant was absorbed in the budget.
- The increased investment in ITC is maintained.
- The strategic fund is still intact.
- There is provision for new personnel costs.
- The deficit on the 2015 tuition fee income was offset in the basis of the income calculation.
- Although the strategic research equipment budget decreased, the post-doctorate budget was maintained.
- Additional funding (subsidy and NSFAS) from the Department of Higher Education and Training (DHET) due to the 0% fee increase turned around the year on year decrease in subsidy income, at least for 2016.