Transcript Slide 1

The Funding Challenge for
The African Universities
Edulink-AUDIS
Informative seminar K.U.Leuven
4-6 June 2008
By Angelo Macuacua
Vice-Rector for Adm. and Resources
Eduardo Mondlane University
Maputo - Mozambique
Objectives
 To discuss how the international challenges
in High education funding is affecting EMU.
 To present the EMU experience of university
activities funding.
 To present the EMU Financial strategy to
address the lack of funds.
 To receive the participants insides to improve
the EMU funding mechanisms.
Presentation Outline
 The Funding challenge for the African
Universities.
 EMU background
 The Funding Model of Eduardo Mondlane
University
 Fund Raising at Eduardo Mondlane
University: Past and Future Perspectives.
 EMU Financial Strategy.
Challenges of African Universities for
Funding
 The presures of expansion and massification.
 The economic problems facing most African
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countries.
A changed fiscal climate and policy direction induced
by multilateral agencies.
The presure of other social and health issues (e.g.
HIV-AIDS, frequent natural disasters, etc.) on the
State Budgets.
The inability of students to pay tuition rates.
Misallocation of the available financial resources.
Evolution Indicators
Indicators
Number of Faculties
1998
2006
9
13
22
56
0
6
6.500
13.914
0
344
Number of Academic staff
711
1.170
No of Non-academic Staff
1.518
2.367
17.895
39.125
No of Undergraduate courses
No of Master Program
No of undergraduate Students
No of Master Students
University Budget (1,000 USD)
UEM Funds Allocation Model
 State Funds, Central Research Programs and
Loans
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All resources are received by the Center and then
allocated to Departments and Services, which have
management power (Decentralized bureaucracy).
Strategic decisions are taken at the Rectorate level but
routine decisions and implementation are made by
Departments (Decentralized Bureaucracy).
 Donations and self-regenerated income:
 Income is earned by the departments and is taxed to
cover the central administration expenses and the
remainder is spent by departments (Managed
Entrepreneurialism).
 Income is earned by departments and retained by the
them (Laissez-faire model).
Funds Allocation Model
Limitations of the Current Model
 Higher number of Bank accounts making very
difficult the cash control.
 Inability of better cash reserve management.
 Difficulties on financial reporting.
 Difficulty of financial planning, management
and control.
Funds Allocation: Future Model
State
Programs
Donors
Creditors
Clients
UEM
Budget
Activities
Faculties
Directorates
Centers
Evolution of Consolidated EMU
Budget in 2002 - 2006
7,8%
2006 EMU Funding
Pág. 3
EMU Funding em 2006
Donations
11%
Credits
17%
State budget
57%
State budget
Donations
Own
revenues
15%
Credits
Own revenues
EMU Financial Strategy
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Principles
Institutional Strategies
Diversification of funds sources
Distance Learning for financial presure
reduction
Effective financial management of the EMU.
Cooperation and Partnership
EMU Financial Strategy:
Principles
1. The University is one organization, not a collection of competing
business units (Faculties and Divisions).
2. The Budget is a strategic instrument to drive the University’s
future direction and the changes necessary to ensure the
University’s strategic objectives are met.
3. The budget model should be fair and equitable, as simple as
possible, transparent and responsive to change.
4. There will be a Strategic Planning Fund which, at the discretion
of the Vice-Chancellor will be applied to University strategic
priorities.
EMU Financial Strategy: Principles
(cont.)
5.
Faculties may decide to allocate budgets on a
different basis from the central allocation to their
Departments based in their unique teaching,
research and community service contributions to
achieving the strategic priorities of the University.
6.
The financing of major capital projects will be
assessed on a case-by-case basis.
7.
There will be a reserve for contingencies of a
minimum of 1% of budgeted income. The reserve
may be used to buffer income fluctuations or to
meet unforeseen expenditures.
EMU Financial Strategy:
Institutional Strategies
 Integrate financial planning with institutional policies.
 Facilitate generation of income and cost recovery at
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the basic unit level.
Reduce costs and increase efficiency trough better
utilization of resources.
Develop appropriate administrative structures.
Develop and appropriate management information
system.
Provide appropriate training for the staff.
EMU Financial Strategy:
Diversification of Funds Sources
 Fees from continuing education programs organized
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for industries and professions.
Income from tailor-made program
Profits from retailing through shops.
Income from rents of conference facilities, sports
facilities and equipments for external use.
Income from rents of residential facilities during
holidays.
Research patents, licenses, royalties and overheads.
EMU Financial Strategy: Distance
Learning role
 The distance learning as way to meet the
massive expansion of the University with
relatively less funding.
 The availability of ICT and easy access to
training material as a way of reducing the
cost of higher education.
 The training material prepared by the staff
could improve the teaching/learning strategy
of regular program.
EMU Effective Management: Doing
More With Less Financial Resources
 Rational allocation of funds
 Management of cash reserves
 Production and monitoring of financial
indicators
 Better utilization of resources
 Evaluation and auditing
 Protection of funds from fraud.
EMU Financial Strategy: Cooperation
and Partnership
 Cooperating and partnership within the
university: Faculties, schools, departments,
lectures and students.
 Cooperation and partnership with other
national and international education
institutions.
 Cooperation with government agencies, NGO
and private sector entities.
Aspects for Assistance in Financial
Management
 Operationalization of income generation
diversification.
 Strengthening cooperation management
 Capacity development of fund rising at
Faculty and academic Department level.
 Training the financial management staff at
Centre and Local level.
Finally
 Muito Obrigado
 Thank Very Much
 Merci Buku