DHET Funding of Universities - Department of Higher ...

DHET Funding of Universities

Presentation to University Councils Training Regional Workshop

Gauteng

23 August 2014

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FUNDING GRFUNDING GROUP

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Contact Distance

Undergraduate: up to 3 years 22.5% 13.5%

Undergraduate: 4 years or more 22.5% 13.5%

Postgraduate: up to honours 18% 9%

Postgraduate: up to masters 54% 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.

- 2003 Funding Framework implemented in 2004/05.

- Performance based funding framework.

- Annual Ministerial Statement on Funding issued each

year.

- 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 was released

28 Feb 2014. Technical Team and Reference Group

were appointed in Feb to model recommendations and

draft a revised funding framework.

2003 Funding Framework and Review

Components of the Funding Framework

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• Block Grants - R19,561 bn - Teaching Input

- Teaching Output

- Research Output

- Institutional Factor

• Earmarked Grants – R8,509 bn - NSFAS (R300m in 1996 to R3,9bn in 2014)

- Teaching and Research development ( moved from block grants)

- Infrastructure and Efficiency Funding

- Establishing the 2 new universities (new money)

- Foundation Provision (15000 students currently, increasing in 2015/16)

- Veterinary Sciences

- Clinical Training Grants (MBChB in 8 univs R254m out of R410m)

- National institutes

- Multi-campus Grant (top sliced from block grants)

- Interest and redemption on loans (old state loans)

- African institute for Mathematical studies

Council discretionary funds

Government controlled

funds

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Contact Distance













awarded.





R12,713 billion for 2014/15

This part not based on headcount enrolments.

Based on the Full-time Equivalent (FTE) of the students

enrolled.

- This is based on the course load of each student in a

specific year.

TIUs calculated from the outcome of the enrolment

process, previous 2011-2013, new 2014-2019.

Teaching input units calculated by multiplying FTEs by

weights of different funding groups and qualification

levels.

TEACHING INPUT SUB-BLOCK GRANT

Funding grid for TIU - CESM

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FUNDING GROUP CESM CATEGORIES FUNDING RATIO on UG level

1

07 education, 12 law, 18 psychology, 19 public administration and services

1

2

04 business, economics & management studies,

05 communication & journalism,

06 computer & information sciences,

11 languages, linguistics & literature,

17 philosophy, religion and theology,

20 social sciences

1.5

3

02 architecture & the built environment,

08 engineering,

10 family ecology & consumer sciences,

15 mathematics & statistics

2.5

4

01 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

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TABLE 5: MINISTERIALLY APPROVED TEACHING INPUT UNITS

YEAR 1) 2011/12 2012/13 2013/14 2014/15 2015/16

YEAR 2) 2009 2010 2011 2012 2013

UNIVERSITY

CAPE PENINSULA UT 49 268 51 118 53 037 55 028 57 094

CAPE TOWN 54 003 55 002 56 019 57 056 58 111

CENTRAL UT 16 449 16 882 17 327 17 783 18 251

DURBAN UT 35 558 36 692 37 861 39 068 40 314

FORT HARE 12 619 13 692 14 856 16 119 17 490

FREE STATE 45 841 48 941 52 250 55 784 59 556

JOHANNESBURG 68 903 71 412 74 012 76 707 79 500

KWAZULU-NATAL 82 695 81 977 81 266 80 561 79 862

LIMPOPO 36 508 39 872 43 546 47 558 51 940

MANGOSUTHU UT 14 046 14 227 14 410 14 595 14 782

NELSON MANDELA 37 543 38 944 40 398 41 905 43 470

NORTH WEST 57 139 60 774 64 641 68 753 73 126

PRETORIA 94 639 95 943 97 265 98 606 99 965

RHODES 12 623 13 278 13 967 14 691 15 454

SOUTH AFRICA 97 081 104 131 111 693 119 803 128 503

STELLENBOSCH 52 011 55 161 58 501 62 043 65 800

TSHWANE UT 74 663 78 768 83 098 87 666 92 485

VAAL UT 25 555 27 256 29 070 31 005 33 068

VENDA 15 218 16 814 18 578 20 527 22 680

WALTER SISULU 34 415 36 383 38 465 40 665 42 992

WESTERN CAPE 31 565 33 420 35 385 37 465 39 668

WITWATERSRAND 61 745 62 647 63 562 64 491 65 433

ZULULAND 17 241 18 490 19 829 21 264 22 804

TOTAL 1 027 326 1 071 822 1 119 033 1 169 143 1 222 348

1) The State's financial year

2) The academic year of a university, which lags 2 years behind the financial year of the

State's budget.

CALCULATION OF TEACHING OUTPUT GRANTS

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Qualification Level Rand value per graduate in 2014/15 Weight

1st certificates and diplomas of 2 years or less R9 972 0.5

1st diplomas and bachelors degrees: 3 years R19 944 1.0

Professional 1st bachelors degrees: 4 years

and more

R29 917 1.5

Postgraduate and Post-diploma diplomas R9 972 0.5

Postgraduate bachelors degrees R19 944 1.0

Honours degrees / higher diplomas R9 972 0.5

Non-Research Masters degrees and diplomas R9 972 0.5

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

CALCULATION OF RESEARCH OUTPUT GRANTS Funding Grid for ROUs

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Type of Research Weight Rand values for

ROU in 2014/15

Publication Units 1 R 115 052

Research Masters Graduates 1 R 115 052

Doctoral Graduates 3 R 345 157

CALCULATION OF INSTITUTIONAL FACTOR GRANTS

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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 above 10%

75% 8.75%

70% 7.5%

65% 6.25%

60% 5%

55% 3.75%

45% 1.25%

40% and Below 0%

CALCULATION OF INSTITUTIONAL FACTOR GRANTS

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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 + Distance Additional amount added

to teaching input grant

4 000 and less 15%

6 000 13.6%

8 000 12.1%

10 000 10.7%

12 000 9.3%

14 000 7.9%

16 000 6.4%

18 000 5.0%

20 000 3.6%

22 000 2.1%

25 000 and more 0%

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awarded.





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.

Used for: Developing teachers and teaching (R150m), student

support through tutorship and mentorship, collaboration programmes,

R6,5 m for next generation of academics.

TEACHING DEVELOPMENT GRANTS

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Contact Distance













awarded.





R187,429 million for 2014/15

The formula was changed due to the actual outputs

exceeding the norm; thus generating a negative amount

for research development. Universities will in 2014/15 be

migrating towards the institutional shares of 2015/16.

These shares of 2015/16 were based on a snapshot of

the sector’s research output shortfalls for the 2013/14

financial year. Universities have been categorised into 3

categories for the funds to be used for different purposes.

RDG used for: R75m staff development, mentoring and

supervisory programmes, PG study support for dev staff.

RESEARCH DEVELOPMENT GRANT

INFRASTRUCTURE 2012/13 to 2014/15

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Category of Funding categories Total allocation

University (R'000)

Historically disadvantaged Student housing – upgrading and new 1 412 638

disadvantaged upgrading and new

universities (HDIs)/ Infrastructure backlog - 1 114 195

campuses upgrading and new

Universities/campuses Student housing - 239 136

other than HDIs upgrading and new

Teacher Training – meeting scarce skills needs 662 460

Health sciences – meeting scarce skills needs 442 519

Engineering - meeting scarce skills needs 513 779

All universities Life and Physical Sciences – meeting scarce skills needs 555 721

Cooperative Projects – partnerships with HDIs 134 500

Development of African Languages, Humanities and Social

Sciences 311 654

Disability units - upgrading and new 123 835

Research infrastructure – well founded laboratories 74 053

Project Management Capacity for 12 universities 50 000

ICT 130 509

New Allied Health Sciences University 210 000

DHET Monitoring and Oversight 5 000

Total 6 000 000

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awarded.





- 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

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