Media advisory                                                                                                    25 October 2016

Financial statistics of higher education institutions, 2015

The Financial statistics of higher education institutions, 2015 report released by Statistics South Africa today shows that South Africa’s public higher education institutions had a total income of R63,1 billion from operating activities in the financial year ended 31 December 2015. This was R4,9 billion higher than the income received in the 2014 financial year (R58,2 billion). The increase in income was largely due to increases in ‘other receipts’ (including tuition fees) and grants received from the Department of Higher Education and Training. The largest contributor to total cash receipts from operating activities for the 2015 financial year was other receipts (R36,2 billion), followed by grants (R26,9 billion).

Between the 2014 and 2015 financial years, cash receipts from ‘other receipts’ increased by R3,4 billion, from R32,8 billion in 2014 to R36,2 billion in 2015. This was mainly due to increases in sales of goods and services and tuition fees by the University of South Africa, University of Pretoria and University of the Witwatersrand. Grants received by public higher education institutions in 2015 amounted to R26,9 billion, which is R1,5 billion more compared to 2014 (R25,4 billion). The increase can be largely attributed to an increase in transfer payments from the Department of Higher Education and Training to the University of the Witwatersrand, Sol Plaatje University and the inclusion of Sefako Makgatho Health Sciences University for the first time in the 2015 financial year.

Total cash payments for operating activities by public higher education institutions increased by R4,5 billion, from R49,7 billion in 2014 to R54,1 billion in 2015. The largest contributor to cash payments was ‘compensation of employees’, which amounted to R31,4 billion, having increased by 13,9% from R27,6 billion in 2014. The increase in expenditure on compensation of employees was mainly due to an increase in remuneration paid to employees by the University of South Africa, North-West University and the first-time inclusion of Sefako Makgatho Health Sciences University in the 2015 financial year.

Cash payments for purchases of goods and services increased by R433 million, from R18,8 billion in 2014 to R19,2 billion in 2015.  This was mainly due to an increase in purchases of goods and services by the University of KwaZulu-Natal, University of Pretoria and the inclusion of Sefako Makgatho Health Sciences University for the first time.

Transfers to households in the form of bursaries by the University of South Africa, University of Cape Town and University of the Witwatersrand contributed the most to the increase of R170 million in other payments by higher education institutions, from just below R3 billion in 2014 to R3,1 billion in 2015.

Interest payments increased by R10 million, from R345 million in 2014 to R355 million in 2015. This was largely due to increased finance costs for long-term loans paid by the University of Fort Hare, University of the Western Cape and University of the Witwatersrand.

The full statistical release is available on the Statistics South Africa website: www.statssa.gov.za

Ends.

Issued by Statistics South Africa

For technical enquiries:

Dr Patrick Naidoo

Chief Director: Government Financial Statistics

Tel: (012) 310 8307

Cell: 082 888 2509

Email: PatrickN@statssa.gov.za

Ms Elizabeth Makhafola

Director: National and Provincial Government Institutions

Tel: (012) 310 8977

Cell: 082 888 9062

Email: ElizabethMa@statssa.gov.za

Media enquiries:

Ms Lesedi Dibakwane

Director: Media Relations

Tel: (012) 310 8578

Cell: 082 805 7088

Email: LesediD@statssa.gov.za