Stats SA’s Financial statistics of higher education institutions report provides an overview of university finances. Two key facts emerged from the report when it was released recently.

Salaries take up half the pie

South Africa’s 25 higher education institutions¹ spent a total of R55,6 billion in the 2014 financial year, 50% (R27,5 billion) of which was spent on compensation of employees. The second largest expenditure item was goods and services (R19,3 billion or 35%), followed by non-financial assets (R5,5 billion or 10%).

The salary bill for all institutions increased on average by 9,9% per annum from 2010 to 2014, with Mangosuthu University of Technology experiencing the highest rise (19,6% per annum), followed by University of South Africa (14,9% per annum) and University of Limpopo (13,3% per annum). Walter Sisulu University experienced the lowest growth in salary expenditure, rising by 2,2% per year.

Institutions invest in infrastructure

Increased spending on non-residential buildings was the main contributor to a 50% rise in spending on non-financial assets between 2009 and 2014.

In the 2014 financial year, R3,3 billion (60% of total expenditure on non-financial assets) was spent on buildings, primarily on non-resident structures. R2,1 billion (39%) was spent on machinery and equipment, including furniture, computer equipment, books and transport equipment.

Spending on non-residential buildings in particular contributed 54% to total expenditure on non-financial assets. Breaking this down by institution, Cape Peninsula University of Technology devoted the highest proportion to non-residential buildings (89%), followed by Sol Plaatje University (84%).

Download the complete publication here.

¹Higher education institutions include universities and universities of technology.