NRF Business Plan: 2010/11 - 2012/13
Presentation to Parliamentary Portfolio
Committee
12 MAY 2010
Dr Albert van JaarsveldReach for the starsReach for the stars
Contents
1. Strategic context and structure2. Alignment with DST3. Contributions by division:
i. RISAii. SAASTAiii. National Facilities
4. Financial perspective5. KPI’s
Promote and support research
throughfunding, human resource development
and the
provision of the necessary research facilities
in order tofacilitate the creation of knowledge, innovation and development in all fields of science and technology, including indigenous knowledge
and thereby tocontribute to the improvement of the quality of life
of all the people of the Republic
1. Strategic context NRF MANDATE - NRF ACT
Relationship between Vision, Mission and Strategic Imperatives
NRF Core competencies
• Leading-edge grant management systems• World-class research evaluation and benchmarking
practices• Science and technology management experience • State-of-the-art research platforms• Specialised research capacity at the National
Research Facilities • Strategic information accumulation and
dissemination capability• Capacity to catalyse local and international science
cooperation, networks and partnerships; and • Science advancement expertise and platforms.
Code of conduct, ethics and values
• Passion for excellence
• World-class service
• Integrity
• Respect
• People-centred
• Accountability
Organisational structure
NRF Board
NRF President
Corporate Secretary
ICT
Finance
Governance
New Business Development
Human Resources
Legal Services
Corporate Communication
GMSA
Int Rel & Col
KME
HICD
ARI
KFD
Disciplinary based Research Fellows
iThemba LABS
HartRAO/MeerKat
SAAO
HMO
SAIAB
NZG
SAASTA
Finance & Business Systems Human Resources and Stakeholder relationships
Vice-President: Research & Innovation Support & Advancement (RISA)
SKA Project
SANAP?
SAEON
Vice-President: Research Infrastructure & National Research Facilities
NRF investment principles
• Funding awarded after competitive processes• Investments are subject to rigorous peer review• Balance between strategy-driven vs demand-pull
investment (disciplinary) • The NRF allocates resources to attain strategic
goals and for efficient service delivery• The PhD is regarded as a critical systems driver• The NRF promotes rotation of expertise between
itself and other entities in the NSI• Principles of fairness, transparency and
accountability apply to all investment processes• Transformation is considered and rewarded at all
times
2. Alignment with R&D Strategy (2002)
• Areas where SA has geographic advantage– Astronomy– Palaeontology– Marine Biology– Antarctic research– Indigenous knowledge systems (knowledge advantage)
• Key technology missions– Advanced manufacturing– Biotechnology,– ICT and poverty alleviation,– Nanotechnology.
• Grand challenges (Innovation plan)
Mapping of strategic goals
10 Year Innovation Plan’s Strategic Goals NRF’s
Strategic Goals Develop South Africa’s knowledge-
generation capacityPromote internationally competitive
research as basis for a knowledge economy
Position South Africa as a strategic international research, development and innovation (RDI) partner and destination
Position NRF as a world-class evaluation and grant-making agency
Develop appropriate human capital for RDI Grow a representative science and technology workforce in South Africa
Build world-class RDI infrastructure Provide cutting-edge research, technology and innovation platforms
Develop the innovation capacity of the science system and thereby contribute to
socio-economic development
Contribute to a vibrant national system of innovation.
South Africa as a Science Destination –
beyond 2010[Knowledge economy, human capital, infrastructure, science tourism, etc.]
Investment in Grand challenges and Areas of geographic advantage
DST strategic goals
17.06
35.19
14.44
0.644.71
0.82 0.582.41
8.51 8.45
2.383.07
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5.0010.00
15.00
20.00
25.0030.00
35.00
40.00
Farm
er to
Pha
rma:
Life
sci
ence
san
d H
ealth
Exp
andi
ng th
e lim
its o
f spa
cesc
ienc
e an
d te
chno
logy
In s
earc
h of
ene
rgy
secu
rity
Sci
ence
and
tech
nolo
gy in
resp
onse
to g
loba
l cha
nge
Hum
an a
nd S
ocia
l dyn
amic
s
Hum
an c
apita
l dev
elop
men
t
Inst
itutio
nal e
nviro
nmen
ts fo
rkn
owle
dge
prod
uctio
n
Ast
rono
my
Hum
an p
aleo
ntol
ogy
Bio
dive
rsity
Ant
arct
ic R
esea
rch
Indi
geno
us k
now
ledg
e
Perc
enta
ge(%
)
NRF Investment
Grand challenges Geographic advantage
Additional instruments
NRF manages the following initiatives that address the R&D strategy and the Grand Challenges:
Centres of excellenceResearch chairs Research Facilities Flagship programmesResearch programmes funded through contractsResearch programmes funded through NRF core grant
31% of university academics have a doctoral degree
3. Divisional contributions – RISA INVESTMENT AREAS: 2010/11
Investment area R’000 %Established researchers (SARChI, Incentive funding for rated researchers, Competitive Support for Rated and Unrated Researchers, Grant-holder linked bursaries)
280 075 25
Human capital development (Thuthuka; research niche areas; free-
standing support for postgraduate students) 132 452 12
Strategic knowledge fields (many varied opportunities; and CoE) 212 410 19
Applied and Industrial Research and Innovation (including THRIP) 155 531 14Strategic platforms (equipment; nano-science flagship projects and programmes directed by the NRF) 135 906 12International initiatives (including bilateral and binational
agreements) 108 675 10
Community engagement research 1 100 0.1Focus area programmes (existing commitments that are being phased out) 79 061 7
Total 1 105 210 100
75% Contract vs
25% Core funding
Grant-holder linked bursary values (minimum)
Final year undergraduate (F-t) R 8 000 pa (R 20 000)Honours / BTech (Full-time) R15 000 pa (R 30 000)Masters degree (Full-time) R30 000 pa (R 70 000)Masters degree (Part-time) R10 000 pa (R 20 000) Doctoral degree (Full-time) R45 000 pa (R 120 000)Doctoral degree (Part-time) R12 000 pa (R 30 000)Postdoctoral (pro rata per month) R80 000 pa (R 180 000)Staff development bursary R25 000 pa (R 50 000)
• NRF’s bursary values have been constant since the F/Y 2007/08
• Bursary values too low – requires an injection of approx. R 300 m in the core grant to adjust values and grow student numbers
Student funding options
• NRF Studentships– Grant-holder linked (~ 66 %)– Free standing scholarships (~ 33 %)– Stated intention to reverse ratio (increase free-standing
scholarships) • Transformation management
– Target driven (Free-standing vs Grant-holder linked)– 80 % black, 15 % rest of Africa, 5 % International– Needs based approaches (~ 33 % Free-standing)– Black student retention (family commitments)
• System influence (only 15 % of all registered PhD’s)- Statistic influenced by the poor national PhD completion rates
NRF Impact on Human Resource Development
2007 2008 2009
Level Number SpentR 000
Number SpentR 000
Number SpentR 000
Final year
170 937 195 1 613 286 2 168
Honours 1 504 28 176 1 271 41 456 1 699 36 587
Masters 2 693 63 296 2 657 81 929 2 376 77 308
Doctoral 1 556 65 563 1 500 75 348 1 384 69 462
Postdoc 295 22 744 260 26 972 302 34 207
Total 6 218 180 717 5 883 227 317 6 047 219 731
All sources of income and all funding programmes
NRF impact on the NSI
NRF funding levels in 2008
Scholarship levelbased on 2008 data
Total NRFAwards
Students Funded by NRFIn First Year
ApplicationsReceived by NRF
Total NationalStudent Registration
StudentsSupported byNRF as % ofNational
Honours 1,271 1,271 4,237 66,917 2%
Master's degree 2,657 1,329 4,428 41,711 6%
Doctoral degree inSA 1,500 600 2,000 9,994 15%
Total 5,428 3,200 10,665 118,622 5%
NRF Student Support Equity ProfileScholarship level 2008 2009
HonoursBlack 66% 73%
Woman 55% 59%
Master’s Black 36% 53%
Woman 51% 53%
DoctoralBlack 36% 51%
Woman 50% 51% 302519% female707581% male20127% black808893% white
200419991994Graduates (PhD)
302519% female707581% male20127% black808893% white
200419991994Graduates (PhD)NRF Supported PhD equity profile
Selection criteria
• Scientific quality– Marks– Publications, Conference proceedings
• Capacity of HEI to support chosen research– Different HEI in case of postdoctoral
• Demographics– Race– Gender– Disability– Nationality
• Timing– Not more than 5 years after last degree
• Discipline (in some funding programmes)– Scarce skills focus
Bursary adjustments 2010
2010 (DST intervention)
• Injection of additional R52,7 million to increase bursary values• To address uptake • Assist needy students
Free standing and grant holder linked bursaries• Honours R15 000 pa - R 20 000 pa• Masters degree R30 000 pa - R 40 000 pa• Doctoral degree R45 000 pa - R 60 000 pa
• Needy students – less than R 300 000/ annum household income– R 10 000 bursary top-up
RISA programmes and activities
a. Knowledge Fields Development: • Facilitate the creation of new knowledge and research capacity• Developing new fields of knowledge and associated research capacity• Mechanisms: Centres of excellence; special programmes (SANAP,
SABI-R3 m)
• Budget 2010/11: MTEF = R175 m, CF = R54 m, Total = R229 m
b. Applied Research and Innovation:• Supports research with innovation and social beneficiation by
addressing issues related to sustainability, housing, good governance, community health, poverty alleviation, food security and community security
• Funded solely through sector specific departmental budgets (e.g. Agriculture; Local government etc.)
• Mechanisms: THRIP-like programmes
• Budget 2010/11: MTEF = R2 m, CF = R173 m, Total = R175 m
RISA programmes and activities (cont.)
c. Human and Institutional Capacity Development:• Develop individual researcher’s capacity
– Incentive programme– The South African PhD Project – Thuthuka– Rating track programme (Career awards)– SARChI
• Develop institution’s research capacity– RNAs
• Develop strategic platforms to support research: HR – TEM
• Budget 2010/11: MTEF = R141 m, CF = R372 m, Total = R513 m
d. International Relations and Cooperation:• NRF is responsible for the development of the Science and Technology
Agreements Fund (STAF) • Agency to agency support of international research collaboration
• Budget 2010/11: MTEF = R76 m, CF = R23 m, Total = R99 m
RISA programmes and activities (cont.)
e. Knowledge Management and Evaluation Directorate:• Implementation and custodianship of knowledge management
processes within NRF but also in the wider NSI context (PhD thesis database, journal access?)
• Rating system• Conduct programme / disciplinary reviews
• Budget 2010/11: MTEF = R18 m, CF = R1 m, Total = R19 m
f. Grants Management and Systems Administration (GMSA):• Implements grant management in partnership with and on behalf of
the funding directorates of RISA
• Budget for 2010/11: NA
RISA grant awards
0
200
400
600
800
1000
1200
1400
Awarded Expensed Awarded Expensed Awarded Expensed Awarded Year todate
expense
Budget
2006/07 2007/08 2008/09 2009/10 2010/11
Mill
ions
MTEFContractTotal
RISA Challenges
• Achieving an optimal balance between core and contract funding – Increase bursary values substantially– Increase funding for fundamental disciplinary research (core grant)
• Ensuring an appropriate mix of fundamental and directed research (disciplinary vs strategic)
• Strengthening the peer review and rating system as requested by HESA
• Optimising the Scarce Skills Development Fund (DoHET)• Improve management and administration of bi-national and
bilateral agreements • Strengthening the Strategic Platforms Collaboration
Programme
3. Divisional contributions - SAASTA FOCUS AND INFRASTRUCTURE
• Science education• Science communication• Science awareness platforms
Financial Perspective: SAASTA
0
10
20
30
40
50
60
70
80
Expenditure Projection Budget
2008/09 2009/10 2010/11
Mill
ions
MTEFContractTotal
SAASTA Infrastructure
• Johannesburg Observatory: SAASTA is currently exploring refurbishing this
site to accommodate a multifaceted interactive Science Park
with a specific focus on astronomy
and engineering• Didacta
building:
Retain or consolidate with Jhb Observatory?• National Zoological Gardens’
Life Sciences
Centre: New plans to further develop this centre
Important Challenges
Future of the Johannesburg Observatory site
“Should this be a flagship national site from where Science Advancement is both driven and coordinated?”
3. Divisional contributions – National Facilities SOUTH AFRICAN ASTRONOMICAL OBSERVATORY [SAAO)
• SAAO’s has been entrusted with the responsibility for optical, infrared astronomy and astrophysics research
• SAAO operates SALT on behalf of a globally distributed, 12-member consortium for which SAAO is the leading organisation
• Budget: MTEF = R30 m, CF = R20 m, Total = R50 m• Challenges: Repair, refurbishment of ageing infrastructure• SALT operations levy – maintaining shareholding for SA astronomy
Increasing demand from other African countries for participation in, and support in terms of astronomy
HARTEBEESTHOEK RADIO ASTRONOMY OBSERVATORY (HartRAO)
• The 26 m diameter radio telescope that is used for research in radio astronomy, astrometry and geodesy is central to the operations and functioning of the HartRAO
• HartRAO also takes charge of other radio telescopes• Budget: MTEF = R19 m, CF = R3 m, Total = R22 m• Challenges: Maintaining HartRAO competitiveness while becoming
involved in KAT-7 and MeerKAT• Upgrade radio-astronomy systems and instruments
MeerKAT SQUARE KILOMETRE ARRAY (SKA)
• SKA is envisaged to be the largest, powerful pathfinder telescope in the world• Budget: MTEF = R14 m, CF = R455 m, Total = R469 m• Challenges: The SKA SA project is still severely under-resourced from an HR
perspective, given the task of delivering the MeerKAT 80 dish array. These positions will be filled by the beginning of the 2011 financial year. The challenge is the shortage of engineering skills within the country and the issue of staff retention given the skill sets of current staff members.
• No real operations budget for MeerKAT in place
HERMANUS MAGNETIC OBSERVATORY (HMO)
• The HMO functions as an active participant in the worldwide network of magnetic observatories (INTERMAGNET) which monitor and model variations of the Earth’s magnetic field
• House important and unique tools and instruments (magnetometers, HF radars and VLF receivers, GPS network in Southern Africa)
• Strategic importance to the SANDF and aviation sector • Budget: MTEF = R9 m, CF = R14 m, Total= R23 m• Challenges:
– Budgetary constraints that hinder operational excellence of the facility– Critical scarce skills vested in few individuals – Inadequate students’ accommodation limiting the increase in student intake– Positioning with the advent of SANSA
SOUTH AFRICAN INSTITUTE FOR AQUATIC BIODIVERSITY (SAIAB)
• The SAIAB’s research scope spans aquatic biodiversity from genes to ecosystems
• Disciplines include systematics and taxonomy; phylogenetics and phylogeography; ecology; physical and biological oceanography; marine palaeo-climates; remote sensing; coastal biodiversity; conservation planning; environmental education; and deepwater biodiversity
• Budget: MTEF = R11 m, CF = R13 m, Total = R24 m• Challenges: Ensuring that ACEP II research programme is successful, as it
operates on a model that is novel for the South African marine research community
SOUTH AFRICAN ENVIRONMENTAL OBSERVATION NETWORK (SAEON)
• SAEON draws on research competencies in hydrology, water quality, eco- physiology, soil sciences, conservation biology, botany, zoology, marine sciences, limnology, climatology and meteorology, fresh water ecology, human ecology, environmental information systems, palaeo-ecology, biogeography, pollution and environmental modelling.
• Budget: MTEF = R17 m, CF = R5 m, Total = R22 m• Challenges: Resourcing and managing the implementation phase of the SAEON
information management system; and inactive formal relationships/agreements• Status of facility declaration outstanding
NATIONAL ZOOLOGICAL GARDENS OF SOUTH AFRICA (NZG)
• The NZG represents a Science Advancement platform that enhances and augments knowledge, particularly knowledge related to conservation.
• Furthermore, the research component provides the basis for the development of the next generation of biodiversity conservation and conservation medicine scientists that will generate new knowledge required for managing wildlife biodiversity and its conservation.
• Budget: MTEF = R47 m, C and other F = R40 m, Total = R87 m• Challenges: Decaying physical infrastructure that poses challenges for the
management of health & safety• Unsustainable business models
iTHEMBA LABORATORY FOR ACCELERATOR BASED SCIENCES (iThemba LABS)
• iThemba LABS brings together scientists working in the physical, medical and biological sciences through the provision of a unique suite of facilities and infrastructure for modern research, advanced education, the treatment of cancers, and the production of unique radioisotopes
• Budget: MTEF = R122 m, CF = R61 m, Total = R183 m• Challenges: Equipment upgrades required• Skills retention and replacement• Electricity costs
Gauteng: Incomplete refurbishment of facility due to insufficient funding
Important Challenges
Maintain and re-establish global competitiveness
• ACTUAL: R37 m invested into infrastructure (2 years)• REQUIRED: R200 m per annum for 3 years* • Facility baseline funding (eroded to 60% of target)• Salary to operations ratios are non-sustainable
Recapitalisation
of the National Facilities
* Excluding SKA
4. NRF Financial perspective NRF growth strategy
0
5001,000
1,5002,000
2,5003,000
3,5004,000
4,500
2007
/0820
08/09
2009
/10
2010
/1120
11/12
2012
/1320
13/14
2014
/15
Year
Fund
ing
(RM
)
Core & RingContractsTotalGrowth
A
B
NRF growth strategy
• Increased DST contribution is pivotal• Diversification of NRF funding streams
– Other government departments – Industry– International partners (leveraging)– Private donors
This growth strategy is required to realise the objectives of the NRF Strategic Plan, Vision 2015.
NRF multi-year expenditure (RISA & National Facilities)
NRF'S MULTI-YEAR EXPENDITURE
EXPENSES/FINANCIAL YEARS
R'00
0 SALARIES RUNNING COSTSGRANTS & BURSARIES
SALARIES 272,147 292,901 350,665 393,196
RUNNING COSTS 276,165 286,667 357,752 386,793
GRANTS &BURSARIES
905,675 1,121,810 1,050,867 1,060,085
2007/08 2008/09 2009/10 2010/2011
FINANCIAL YEAR 2007/08 2008/09 2009/10 2010/2011
GRANT & BURSARIES % of TOTAL 62.3 65.9 59.7 57.6
TOTAL EXPENDITURE (R'000) 1,453,987 1,701,378 1,759,284 1,840,074
Cost structure Agency vs. National Facilities
0%10%20%30%40%50%60%70%80%90%
100%
Cost Structure: Agency Function (RISA)
Opex/Total 12% 9%
Salaries/Total 8% 7%
Grants/Total 79% 84%
RISA Actual 2010 RISA Budget 2011
0%
20%
40%
60%
80%
100%
Cost Structure: National Facilities (NF)
Shared Services 24% 23%
Research Platform 76% 77%
NF Actual 2010 NF Budget 2011
MTEF growth
NRF MTEF Allocation Trend vs CPIX (%)
4.60
% 6.50
%
11.3
9%
10.0
0%
6.00
%
14.4
%
11.9
%
7.5%
4.3%
-0.6
%
13.9
%
5.5%
2.8%
6.7%
4.3%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2006/07 2007/08 2008/09 2009/10 2010/11
Year
% M
ovem
ent
% MTEF Movement
Baseline
CPIX
Below CPIX adjustments →
pressure on operations and continued sustainability
Impact of forced efficiency savings (MTEF budget cuts]
11
22
005
10152025
R' M
illio
n
2010/11 2011/12 2012/13
Year
Break-even (after forced efficiency savings)
-11 -22-67
-80-60
-40
-20
0
R' m
illio
n
2010/11 2011/12 2012/13
Year
Cumulative Deficit (with embedded savings)
Assumptions:• Salary bill movement
limited to 6%
• Operating costs increase
limited to 2%
Forced efficiency savings (MTEF budget cuts]
• Corrective measures implemented from 2010/11 to allow break-even by 2012/13
• Dealing with R120 m budget cuts over 3 years
– Embedded efficiencies in 3 year budget = R53 m– Further savings required = R67 m
• Freeze vacancies / Staff rationalisation (R10m)• Reduce running costs + Downsize National Facilities (R57m)• Grant budget impact (zero increase on core grants)
Key performance targets 2010/11-2012-2013
NRF Vision 2015 strategic targets:
Balanced Scorecard Approach (Appendix): – Stakeholder perspective– Financial perspective– Organisational perspective (business processes and
procedures)– Organisational learning and growth perspective, and– Human resources and transformation perspective
Enkosi, Thank you, Re a leboga, Siyabonga, Dankie
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