0

stellenbosch

4

In the Vision Statement 2012, which was accepted in

2003, Stellenbosch University states its aspiration to be an academic institution of

exce ll ence and a respected knowledge part-

ner. Acknowledging that excell ence is not an end goal, but - on the

an alogy of processes in nature - a constant cycle

of self-evaluation and re newal, of develop­

ment and growth , th is report

reflects the progress and

highlights of 2004.

2

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Contents

Message fmm the Chance ll o r~

Management Team of the Rector

The University Council

Report of the Chairperson of Counci l

Report of the Rector and Vice-Chancell or

Senate's Report to Counci l

Report of the Vice-Rector (Teach ing)

Report of the Vice-Rector (Research)

Report of the Vice-Rector (Opet~at i ons)

Report on Institutional Planning and Financial Management

Report of the Manager: Innovation

Repot~t of the Institutional Forum

3

5

5

6

7

IS

15

20

24

26

27

29

Report on Internal Administrative and Operational Structures and Contml Measures 30

Report on Risk Assessment and Management

Faculty Reports -

Agricultural and Forestry Sciences

At~ts

Economic and Management Sciences

Education

Engineering

Health Sciences

Law

Military Science

Science

Theology

ributes by the University

Honorary Degt~ees

Chancel lor's Medal ·

The Financial Repot~t

31

32

32

34

35

37

38

39

4 1

42

43

45

46

46

48

49

Message from the Chancellor

I have always thought that there is a rich contradiction between

the panorama offered on the town of Ste ll enbosch, with the

University at its heart, afforded by the vantage of a bird or from

the highest peak, and the expectations that are placed on a univer­

sity.

The town, and the campus, nestle safely between the mountains,

surrounded by many signs of a peaceful, rural atmosphere, embed­

ded in a history spanning centuries.

The beauty of this panorama, the pmmise of nu t-turing that it pres­

ents, is undoubtedly part of the powerful attraction that

Ste ll enbosch University (SU) has had fot- so many prospective

students through the decades and wh ich, judging by the most

· recent evidence, it sti ll possesses.

And yet a university is expected to all ow its students to develop, to

let them grow, in order to rea li se the it- abilities to the full: thus to

make the students restless in their intellectual lives, in fact to o-eate

a longing to move away fmm the beauty of the familiar and t-el iable

to new hot-izons and widet- vistas.

In 2004, the University once again succeeded in achieving this fine

balance most excellently: on the one hand, by offering a welcoming

home to its students, but on the other hand by making them keen

to use the equipment gained in th is home to establi sh themselves

adventurously in the world on the other side of the mountains,

beyond the vineyards.

The yeat- was characterised by the University's endeavour to create

the space for people originating from a vat-iety of backgmunds, with

a wide variety of gifts and abilities, to live, move and grow as indi­

viduals in ft-eedom and comfort, while sti ll being introduced to the

full advantage of a life in Matieland that can be celebrated with

their fellow students.

This is succinctly contained in one of the five points of the Vision

Statement of Stel lenbosch University: "a campus cu lture that wel­

comes a diversity of people and ideas".

In conjunction with the above, the people of SU have distinguished

themselves anew in the gt-eater academic and scientific wot-ld as

esteemed co ll eagues. This annual report contains exciting accounts of achievements, recognition and awards- accounts of intellectual,

creative abilities com ing into their own in our beautifu l valley, testi­

mony to the quest for excel lence that inspires the University's vision.

At the same time, the people of Stellenbosch University have employed their ta lents and vitality to t-each out to the needs and

the needy of our very own South African world. In this way, the

University fulfils an exemplary m le through its language policy,

which supports the users of indigenous languages. By maintaining

Afrikaans as a fresh, usable med ium of instruction and science, the

University has not on ly created a spacious "home in their own lan­

guage" for millions of Afrikaans speakers, but also a home in which

people can be excellently equipped to be academic fel low citizens,

true knowledge partners, in the world outside.

It is in this spirit that this repot-t is testimony to the reconc il iation

that may be read in the apparent contradiction in our beautiful val­

ley - between a homecoming and new horizons.

Prof Elize Botha Chance ll or

3

u n i v e r s it y c 0 u n c i I as at 16 May 2005

Rector and Vice-Chancellor

o o • Prof CH Brink, MSc, MA (Rhodes), PhD (Cambridge), DPhil (RAU)

Vice-Rector (Research)

Prof WT Claassen, MA, Dlitt, BTh (Stell)

Vice-Rector (Operations)

• Prof JF Smith, MA, D Litt (UWC)

Vice-Rector (Teaching)

Prof HR Batman, BA. MTh, DTh (UWC)

Elected by the permanent academic staff

(non-Senate members)

Dr S Thom, BAHons, HED, MA. Dlitt (Stell)

Elected by the permanent academic staff

Mr MC de Jongh, Nat Dipl Med Lab Tech (Tech Cape Town)

Elected by the Institutional Forum

Mr Le R Burrows, MComm (UOFS)

Elected by the Minister of Education

Ms AE Krog, BAHons (UOFS), MA (Pret), HED (Unisa), Dlitt he (Stell)

Dr M Yoyo, MA (UCLA), Dlitt et Phil (Fort Hare)

Ms B September, BA (UWC), HED (Unisa), MSc (Psych) (Central Washington, USA)

Mr L Mitchell, BA (UPE)

Elected by the Convocation

Mr jP Bekker, BAHons (Stell), LLB (Witw), MBA (Columbia)

• • Dr E de Ia H Hertzog, MB, ChB, MMed (Stell), FFA (SA) (Chair-)

Mr RS de Ia Bat, BSc, BComm, MBA (Stell)

• o • Mr DK Smith, BSc (Stell), FASSA, FIA, ISMP (Harvar-d)

Ms GM Landman, BAHons, HED (Stell)

Dr CH Wiese, BA, LLB. DComm he (Stell)

Elected by the Senate

Prof A Schoonwinkel, MEng (Stell), PhD (Stanford), MBA (Cape Town)

• • Prof L van Huyssteen, MScAgr-ic, PhD (Agric) (Stell)

• Prof AA van Niekerk, MA, BTh, LicTheol. DPhil (Stell)

Appointed by the Municipality

Mr W F Ortell, PTD (HewatTraining College)

Appointed by the Donors

• Mr GT Fen·eira, BComm, BB and AHons, MBA (Stell)

Dr PF de V Cluver, MB, ChB (Stell), MD (Gottingen), PhD, ChM (Cape Town),

PhD (Agric) he (Stell)

• • • • Dr GS van Niekerk, BCommHons, BB and AHons (Stell), MA (Nor-th-Western,

USA), DPhil he (Unitra) (Vice-Chair)

Appointed by the business community of the Stellenbosch district

• Ms ME Moolman, MSc (Stell), Dip Datametr-ics (Unisa), MBA (Stell)

Appointed by the Western Cape Provincial Government 0 Mr D Piedt, BA, BEd (UWC). MEd (Stell)

Appointed by representative bodies of civil society

Ms E le Roux, BSocSc (UOFS), MA (SW) (Stell)

Mr GP W il liams, PTD (HewatTraining College), BA, BEd (UWC)

Elected by the Students' Representative Council

Mr HLM du Plessis

Mr AE MUller, BA (Stel l)

The following non-Council members were appointed by Council

as additional members of the Audit and Risk Committee

e Mr JP Bester, BCommHons (Ace) (Stell), BCommHons (ManAcc), BCommHons

(lnf Systems) (Cape Town), CA (SA)

o Mr BHJ Wessels, BCompt (Unisa), GIA (SA)

• Prof CJ van Schalkwyk, BAccHons, MComm (Stell). CA (SA)

The following non-Council members serve on the Investment

Committee

• Mr PG Steyn, BComm, LLB (Stell)

• Mr JF Mouton, BCommHons, CTA (Stell)

• Mr MH Visser, BCommHons (Stell), CA (SA)

• Prof E Calitz, BCommHons, MComm (Stell), BCommHons (Pret), DComm (Stell)

o Member-s of the Executive Committee of Council

" Members of the Audit and Risk Committee of Council

o Members of the Human Resour-ces Committee of Council

• Member-s of the Investment Committee (subcommittee of the Executive Committee

of Council)

Management Team of the Rector (2004)

From left to right:

Rector and Vice-Chancellor: Prof Chris Brink, MSc, MA (Rhodes), PhD (Cambridge), DPhil (RAU)

Vice-Rector (Teaching): Prof Russel Batman, BA. MTh, DTh (UWC)

Vice-Rector (Research): ProfWalter Claassen, MA, DLitt, BTh (Stell)

Vice-Rector (Operations): Prof julian Smith, MA, DLitt (UWC)

Executive Director: Finance: Prof Estian Ca/itz, BCommHons, MComm (Stell), BCommHons (Pret), DComm (Stell)

Manager: Innovation: Prof Liesbeth Botha, MEng (Pret), PhD (Carnegie Mellon University)

Deans' Representative: Prof james Fourie, BA. LLB (Stell), LLD (Unisa)

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5

Report of the Chairperson of Council

Dr Edwin Hertzog

After the plann ing actions of 2003 had been finalised in the form of the five-point vision statement, the Univet-sity's objectives for the next ten years were already well established on campus by the beginning of 2004.

lntet-nally, it was a period of implementation, but concerns about the state of higher education in the countt-y caused the Univet-sity Management to reflect on the institution's own long-term financial sustainability.The pmposed budget cuts would be ach ievable in 2005, but sim il ar cuts year1if(er year would seriously impait- the University's capacityA6f;erform jis core functions.

Realities sue~windli ng state subsid ies, li mitations on growth in student rfumbers and rising c~sts led to the development in 2004 of the/university's Business Plan fo r the next few years. Just like the n~mus academ ic and research successes included in this report, effective management is also chat-acteristic\of the University's quest

Co un cil Meetings and Attendance

The Council of Stellenbosch Univers ity consisted of 30 membet-s in 2004. Of these, fo ur were executive members of Council, 17 were independent non-executive membet-s, two were employee repre­sentatives, five were appointed by the government and two were student representatives.

/ Council meets six times a yea t~ Ste ll enbosch University can pm~ly

report that the average rate of adendance of Council meetings by

~ouncil members was 87% durin~. 2004.l1he loWest rate •of atten-)

dance was 80%. , )

Committees of Council: Meetings and Attendance

Counci l has eight committees that meet at varying intervals - some meet before every Council meeting, while others meet only as t~e need at-ises. /

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for exce ll ence. Implementation of the Quality Assurance Plan com­menced in 2004 in preparation for t he institutional audit in 2005.

Besides thanking them fot- their hard work, I wou ld also li ke to acknowledge Prof Chris Brink and his management team for their foresight and proactive approach, especial ly in managing planning, implementation and the budget conjointly.

Exce ll ence, howeve~ is a continuous process of growth and devel­opment- never the ultimate destination. Research outputs, the record numbet- of doctoral degrees, increasing income from dona­tions and the recognition of Stellenbosch academics by outside institutions all indicate that, in the midst of controversies about Stellenbosch, the day-to-day campus activities are being conducted in an excellent manne~ In 2004, the affairs of the Univet-sity once again were a frequent talking point in public debates - which is good, particularly because new interest groups are beginning to join the discussions.

The year 2004 was my first as the Chairperson of the University Counci l. Thanks to the effective management and governance prac­tices of the University Management, Senate, the Institutional Fot-um and the Students' Representative Counci l, I was privileged to be part of the team t-esponsible fo r looking after Stellenbosch University's interests.The Council is a wel l-equipped and balanced group of people who deserve gt-atitude and appreciation for their dedication and their loyal attendance of Counci l and committee meetings.

I would like to thank all the University's partners, donors, alumni and other intet-ested parties fot- their suppot-t in 2004. Congratu­lations to the students and staff who performed so well in so many fields this year.

~ Dr Edwin Hertzog Chairperson of the University Council

The most important committee is the Executive Committee of Council. This committee, which consisted of seven membet-s in 2004, met seven times during the year under review. There are no mattet-s pending on the agenda of the committee. Matters pending on the agendas of othe t- committees that report to Council via the . Executive Committee of Council will eventually appeat- on the agenda of the Executive Committee - which will then deal with those mattet-s.

The average rate of attendance fot- the Executive Committee was 89,8% in 2004. Fout- of the meetings were fully attended, a single member was absent fmm the June meeting, and two members wet-e absent fmm each of two other meetings.

The meetings of the Council committees wet-e generally well attended. Most of the committees achieved an average rate of attendance of mot-e than 70%.

Report of the Rector and Vice-Chancellor

I am a proud black South African woman who prides herself on being an African, a South African, a Matie!

... I look forward to the time when my grandchildren will be Maties and I can say to them that I was one of the leaders of my time who pushed for diversity and multiculturalism, cultural preservation and

equality for all.

This quotation, taken from an application for the annual student leaders' tour to the USA, stri kes me as an accurate summary of what we have achieved in the past few years in the expansion of diversity and t he gradual transition to a more inclusive campus cul­tu r-e. This transition was one of the features of 2004, as will become apparent from this repor-t

A second feature of 2004 that I will repor-t on here was one that did not necessarily feature strongly in the public eye, namely the development of a Business Plan for- the University for the next few year-s. It has become increasingly evident that the state subsidy per­fu ll-time equivalent student has decreased to such an extent over a number of year-s that we will have to undertake a compr-ehensive r-e-evaluation of how we conduct our business. This process is continuing in 2005.

There wer-e occasions in 2004 when we featured prominently in public debates, as illustrated by the controver-sy surrounding the honorary doctorate awarded to the late Bram Fischer, as we ll as by the broader issue of enlarging the community of those who wish to claim Stellenbosch University as "their home also". (The latter issue is obviously r-elated to the first point raised above.)

Broadly speaking, I am gratefu l to be able to report that we achieved new levels of academic excellence in 2004, awarded more doctorates than ever before, received record amounts of donor income, and began to show signs of sound progress towards rea­li sing Vision 20 12.

As in the past, th is report is presented in the format prescribed by the Department of Education. We have established a tradition that the Rector provides a public report on the affairs of the University in the middle of the year, and my report of July 2004 is available on our website, at www.sun.ac.za/rector/vision.htm..

Management: O verview of Object ives and Actions

The Rector's Management Team was complete and stable for the

duration of 2004. It consisted of three Vice-Rector-s, the Executive

Director: Finance, the Manager: Innovation, and one representative

of the Deans. The Management Team meets every Thursday after­

noon. We set objectives .:or ourselves on a year-to-year basis, as well as for the longer term. The achievement of these objectives is

used as a performance indicator in our annual performance evalu­

ation. While 2003 was devoted ch iefly to planning and the renewal

Prof Chris Brink, Rector and Vice-Chancellor

of po li cy, in 2004 we began our transition to goal-or-ientated imple­

mentation. Relevant points include the following:

We have established the practice that planning, implemen­

tation and budgeting go hand in hand. Therefore, a Division

for Institutional Planning has been created (through internal

restructur-ing), which reports to the Executive Dir-ector:

Finance. The implementation of the Language Plan commenced

with the 2004 intake of newcomer students.

The Residence Placement Policy was adapted.

Implementation of our Quality Assurance Plan was in itiated,

also with a view to the appmaching institutional audit in

2005. The Teaching Management Plan was implemented.

The Electronic Communication Policy was implemented.

The Commercialisation Policy was implemented.

Risk management has been refined.

The single biggest implementation exercise, however, was the Business Plan. This plan is aimed at conducting our affairs in the most efficient and cost-effective manner possible, at raising our pro­file of excellence, and at cultivating external sour-ces of income in a manner that enables us to escape the stranglehold of fal li ng subsi­dies. and increasing expenditur-e. The Business Plan was under-taken in accor-dancEt'with project management principles, with myself as

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project owner and the Executive Dir-ector: Finance, Prof Estian Calitz, as the overall project manager. In 2004', the Business Plan assumed the form of several subprojects, some of. which were completed during the same year, while others havecontinued into 2005, or will gr-adually be phased into the li ne function. All mem­bers of Management contribute actively to the development and implementation of the Business Plan.

7

Report of t he Rector and Vice-Chancellor continued

At its weekly meetings, Management is supported by an excellent and diverse team consisting of Mr Johann Aspeling (Registrar), Dr Edna van Harte (Dean of Students), Dr Barbara Pool (Manager: Projects) and Mr Mohamed Shaikh (Coordinator: Strategic Communication).

Staff

Staff: Academic

Facu lty Professors Associate Professors

Agricultural and Forestry Sciences 13 12

Arts 33 16

Economic and Management Sciences 23 20

Education 7 8

Engineering 24 I I

Health Sciences 24 20

Law IS 2

Mil itary Science 3

Science 30 17

Theology 4 0

** Total 176 107

* Non-comparable rank structure

I also gratefully acknowledge the role played by our ten facu lty deans as academic managers. The faculties remain the heart of the University and, in 2004, the deans again accepted the daunting respon­sibility of maintaining the balance between academics, fi nance and change, and did so with t remendous dedicat ion and professionalism.

Senior Lecturers Lecturers

20 20

32 58

37 52

6 17

33 10

23 28

10 5

7 45

43 36

6 2

217 273

Junior Lecturers

2

IS

4

19

0

2

5

0

49

Total

67

154

136

39

79

114

32

58""

131

12

822

** The following have been excluded from the above totals: ±300 part-time academics and ±565 individuals ( 142 ful l-time equivalent members of staff) in the Faculty of Health Sciences who are not in the employ of SU but who perform academic fu nctions.

Staff: Non-Academic

Executive-administrative 107

Specialist -support li S

Administrative 670*

Technical 265

Service staff 346

Artisans and craftsmen 43

The following staff are not included in these figures: staff involved in a number of functions that are contracted out by the University, e.g. garden­ing services, bu ilding and repair work, certain clean ing functions, catering in the residences, and internal aud it. * The increase in this category is attributable to the temporat-y staff members with more than fi ve years' continuous service.

Management's support team is made up of (from left to right) Mr johann Aspeling (Registrar), Dr Edna von Harte (Dean of Students), Dr Barbaro Pool (Manager: Projects) and Mr Mohamed Shaikh (Coordinator: Strategic Communication).

8

A number of sen ior appointments were made at management

level. Prof Julian Smith was reappointed as Vice-Rector

(Operations) for a further five-year term, and Prof Johann de

Vill iers was appointed Dean of the Faculty of Economic and

Management Sciences. Mr Mohamed Shaikh commenced service at

the University as Coordinator: Strategic Communication, Dr Edna

van Harte, formerly the Executive Assistant to the Rector, was

appointed as Dean of Students, and Prof Petra Engelbrecht former­

ly of the Faculty of Education, was appointed Director: Research.

Outside of the li ne function, Ms Letitia Snyman, a former Member

of Council, was appointed as the University Ombudsman. Mr

Kobus Visagie res igned his post as Sen ior Director: Corporate

Affairs; th is division was unbundled and its activities were added to

the relevant line functions. Dr Christa van Louw resigned her posi­

tion as Coordinator: Diversity to establish her own business.

Thus we have taken significant steps in the promotion of diversity

in the senior posts. Among the academic staff, the increase in black

members of staff in particular has remained slow - increasing from

8,8% to I 0,9% over three years. It should be borne in mind, how­

ever, that the turnover of academic staff is very low - less than 5%

per annum. An examination of the new academic appointments

made since 2002 reveals that roughly 27% of said appointees were

black people, and approximately 60% were women. We are con­

tinuously trying to improve in this regard.

I am pleased to report that our staff once again performed excel­

lently in 2004 and many were rewarded with national recognition.

Selected examples fol low below.

Profs Len Barbour (Chemistry) and Steven Chown (Botany

and Zoology) received the coveted A rating of the

National Research Foundation (NRF). Prof Detlev Kroger

(Mechanical Engineering) was re-evaluated and retained his

A status. Prof Han lie Moolman-Smook (Medical

Biochemistry) received the NRF President's Award.

Prof Russel Botman (Vice-Rector (Teaching)) was re-elect­

ed as President of the SA Council of Churches, Prof Jul ian

Smith (Vice-Rector (Operations)) was appointed National

Ombudsman for Sport, Prof James Fourie (Dean of Law)

received an honorary award from Leyden University, Dr

Edna van Harte (Dean of Students) was appointed to the

management of both the National Heritage Council and

the National Archives Advisory Council , and Prof Doug

Rawli ngs (M icrobio logy) was e lected President of t he Royal

Society of South Africa.

The reader is also referred to the various research highlights cited by the Vice-Rector (Research) (see pp. 20 - 22).

Stud e nts

At the 2004 graduation ceremonies, the University awarded 5 367

degrees, dip lomas and certificates, 54% of which were postgraduate

qualifications. The total includes I I 6 doctoral degrees - t he most

ever. Our attempts at bringing about a gradual shift in the diversity

profile of our student corps are beginning to produce resu lts, as

illustrated in the table below. It should again be emphasised, how-

ever, that an increase in the number of Coloured or black under-

graduate students in particular will require a significant funding effort.

Reg istrations of Bl a ck, C oloured and Indian Cont act

Teaching Student s a s a perc en t age of all C ontac t

Teaching Registra tions for 2 00 2 t o 2 004

Faculty Black, Colou red and Indian stude nts

Undergraduate Al l students

2002 2003 2004 2002 2003 2004 Agricu ltural and Forestry Sciences I 0,5 I 0,7 11 , 1 16,9 16,7 I 5,6

Arts 15,8 18,7 20,9 24,9 25,9 25,9

Economic and Management Sciences 10,6 13, I 14,2 17,3 20,7 23,3

Educat ion 0,8 I ,8 3,3 28,3 29,4 33,2

Engineering 7,0 8,6 9,9 II ,6 11,8 12,5

Health Sciences 23,9 27,8 32,6 29,0 31,8 36,9

Law 23,9 24,3 24,7 21,8 23,7 23,3

Military Science 58,3 64,7 70,5 49,4 59,4 67, I

Science 13,3 15,3 19,0 17,3 19,4 23,2

Theo logy 33,8 34,0 37 ,4 44,5 52,6 49 ,7

All registrations 12 46 1 13 I 13 13 446 19 337 20 303 21 000

Black 2,3 3,0 3,6 8, I 9,3 10,7

Coloured 11,3 12,7 14,0 11 ,5 12,4 13 ,4

Indian 1, 1 I ,4 I ,3 2, I 2,3 2,0

Wh ite 85,3 82,9 81 , I 78,3 76,0 73 ,9

Black, Coloured 14,7 17, I 18,9 21,7 24 ,0 26 , I and Indi an

The most impot·tant development in t he management of Student

Affairs was the appointment of Dr Edna van Harte as Dean of

Students. Her appointment was widely welcomed due to the

extensive University experience she had accumu lated during the

previous two years in het· portfolio as Executive Assistant to t he

Rector, as well as the symbolic significance attached to the appoint­

ment of a Coloured woman to this very important position in

management (the first such appointment at Ste ll enbosch

University). She also serves in the management of the Matie Rugby

Club. At the same t ime, budgetary manoeuvring allowed us to

emphasise the importance of the Student Affairs portfolio by mak­

ing a second appointment. Mr Pieter Kloppers, the Warden of

Goldfields, was appointed as Coordinator: Student Culture Renewal

and Residences. Through this appointment, we wanted to acknowl­

edge the interest that students have in, and exercise on, the institu-

9

Report of the Rector and Vice-Chancellor c on t inued

tiona! cu lture of the Univer·sity.These appointments were made in line with the recommendations of the Slabbert Report of 2003 concerning student culture. In 2003 and 2004 we also appointed our fi rst Coloured and black resident wardens of university resi­dences: Prof Nico Koopman in Huis Visser and Huis Marais, Ms Dineo Gaofhiwe in Erica, and DrWynoma Michaels in Huis ten Bosch.

I am pleased to report that significant init iatives relating to the renewal of our student culture emerged from the student ranks during 2004. For example, a group of students from the Helshoogte men's r·esidence voluntar·ily decided to expose the unpleasant practices of the past and to attempt to find a joint solu­t ion. Discussions on values that support the University's vision were initiated in the residences, and the Students' Representative Council, in conjunction with Management, introduced an entirely new touch at the annual academic opening of the University. The student leaders' tour to the USA has begun to produce results through the guiding role that members of the tour have started to play on campus.

Our students once again perfor·med excellently in many ar·eas. In 2004, I visited some of our most prominent partner universities in Europe. We have exchange agreements with these univer·sities and, from start to finish, I was assured that the Matie students studying there are among the best students entering those institutions. I am unable to do justice to the long li st of achievements at national leve l. By way of example, however~ I would li ke to mention the achievements of our students in Physics. Through a nat ional Women Scientist Fellowship worth R I 00 000, Dr Christine Steenkamp was invited to spend six months conducting research in C;?Jorado with

1the Nobel prize winner, Prof Carl Weimann. Ms

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Z:inh le Buthelezi became the first black South African woman to obtain a doctorate in nuclear physics. Other students in the Department of Physics are heading for similar success, as is appar­ent from the fact that Stellenbosch students won vi rtually all the prizes for students at the 2004 annual congress of the South African Institute of Physics.

10

In two ar·eas enti rely removed from the above: The Ste ll enbosch University Choir, led by conductor Andre van der Merwe, deserves special mention for their feat in taking t he Gold Medal in the Mixed Youth Choirs category at the International Choir O lympiad in Bremen, Ger·many. And rugby fan s enjoyed a special moment when the Matie team won the International Sevens rugby tournament in Scotland.

Acade mi c Affairs

The academic sphere at Ste ll enbosch University is doing well. I may even be so bold as to claim that it is doing very wel l. Besides the impressive list of achievements of individual academics, we are also doing well at an institutional level.

During 2004, the initiative of the Department of Science and Technology to establish national centres of excellence was realised. Six such centres were established in South Africa, two of which -the Centre for Invasion Biology and the Centre for Biomedical TB Research (in conjunction with the Univers ity of the Witwatersrand) - are currently housed at Stel lenbosch University.

Stellenbosch is now playing a leading national role in the field ofTB research. Besides the above-mentioned award to Prof Paul van Heiden, Prof Nulda Beyer·s received an awar·d of R28 mil lion (distributed over a period of five years) from the Bi ll and Melinda Gates Foundation to establish a Centre for Tuberculosis Research and Education. (This centre was opened in 2005 and was named the Desmond Tutu TB Centre; part of the work is being performed in Zambia.) In the same field, Pmf Hanl ie Moolman-Smook was granted a Wellcome Trust International Research Fellowship of more than RS million, which will be used to support her personal research during the next few years.

The University of Stellenbosch Business School (USB) has also excelled. Not only has it received two coveted international

accreditations (EQUIS and AMBA), but the school has also raised its profile in the national league tables. Professional Management Review li sted the USB as the foremost business school in the country, while it moved up to third place in the national list of the Financial Moil. In the countrywide process of re-accreditation of MBA programmes undertaken by the national Department of Education, our Business School was one of only six to receive ful l accreditation. Also, the USB was one of only eleven business schools worldwide to be selected (through a competitive process) for participation in the Business and Society programme of the highly regarded Aspen Institute in Washington DC. (The USB has thus entered the company of peer-s such as the London School of Economics, INSEAD in Paris, and various Ivy League American uni­versities.) And, to crown it all , the USB also celebrated its 40th birthday!

We are also increasingly engaged in str-engthening our academic

interactions in other African countries. In my previous annual

report, I provided details on our African Centre for the

Management of HIV/Aids in the Workplace (which was formally

opened by Deputy Pr-esident Jacob Zuma in 2005), as well as our­

role in the African Institute for- Mathematical Sciences. Th is year, I

am able to mention further initiatives, such as the African Centre

for Investment Analysis at the Business School, the Network of

African Congr-egational Theology in the Faculty ofTheology, and

Agribusiness in Sustainable Natural African Plant Products in the

Facu lty of Agricultural and Forestry Sciences.

Comm unity Interaction

Our Strategic Framewor-k of 2000 advocated a new parad igm for

community service, founded in a more expansive concept of"com­

munity" than the simple philanthropic interpretation that had been

the norm unti l then. We had already modified the terminology to

"community interaction" in acknowledgement of the idea of a lively

interaction between institution and community, to the benefit of

both. During 2004, we gave full recogn ition to community interac­tion as the third core function of the University for the first time by

incorporating it into our structures and budget.

Of course, our philanthropic work is continuing. For example, our

Information Technology (IT) Division, acting in cooperation with the

Faculty of Economic and Management Sciences, established a fully­

equipped IT centre at Kayamandi High School after the principal

had brought the problem of IT illiteracy to our attention. But com­

munity interaction involves more than phi lanthropy. For example,

we feel honoured as an institution by the decision made at national

level to establish Stellenbosch as the centre for Sport for the

Disabled. We were enriched by hosting the preparations of the

South African Paralympic team for the Paralympic Games in

Athens. And our Facu lty of Agricultural and For-estr-y Sciences, in

cooperation with Cornell University, has presented a very success­

fu l programme for upcoming black entrepreneurs in agribusinesses

every year since 2000.

Finance

Report on the Consolidated Annual Financial Statements

Section 41 (2) of the Higher Education Act, No. I 0 I of 1997 (as amended by Act 54 of 2000), requires universities to submit to the Department of Education annual financial statements that comply with South African Statements of Generally Accepted Accounting Practice.

On 29 August 2003 the Regulations for Annual Reporting by Higher Education Institutions, which lay down the accounting bases, practices and policies, as well as the format of reporting, were published by the Minister of Education in the Government Gazette. These consolidated annual financial statements for the year ended 31 December 2004 have been prepared in accordance with the Regulations.

Fin anc ial Review

Tota l Incom e (%of R million)

• Pmfit on sale of property, books

and equ ipment

2004:0,1% (R0,9 m) 2003: 0,4% (R5, I m)

e Fair value adjustment

on investments

2004: 18,9% (R320,4 m) 2003: 1, 1% (RI5,2 m)

• Foreign exchange gain

2004: 0,2% (R2,9 m)

2003: 0,02% (R0,3 m)

• Government allocations

2004: 33,0% (R558,6 m)

2003: 40,7% (R541 ,0 m)

· • Tuition, accommodation

and other fees

2004: 20,6% (R348,7 m)

2003: 23,8% (R3 15,8 m)

Pr-ivate donations, allocations

and contracts

2004: 17,6% (R298,2 m)

2003: 20,58% (R272,8 m)

• Sales of services and pmducts

2004: 4,2% (R71,5 m)

2003: 5,5% (R73,5 m)

Inter-est and dividends received

2004: 5,4% (R90,9 m)

2003:7,9% (R I 04,7 m)

Total Expendi ture (% of R million)

• Finance charges

2004: 1,7% (R22,1 m) 2003: I ,8% (R21 ,8 m)

• Staff costs

2004: 47,5% (R642,6 m) 2003: 46,6% (R576, I m)

• Impairment of loans

2004: 0,4% (R5,6 m)

2003: 0,0% (Nil)

Other operating expenses

2004: 42,7% (R578,8 m)

2003: 42,6% (R526,4 m)

e Foreign exchange loss

2004: 0,7% (R9,5 m)

2003: 1,5% (R 18, 1 m)

• Loss on sale of property.

books and equipment

2004:0,1% (RI,9 m)

2003: 0,3% (R3,2 m)

Depreciation

2004: 6,9% (R93,5 m)

2003: 7,2% (R88,9 m)

II

Report of t he Rector and Vice-Chancellor continued

Total income of a recurring nature Rm

Government all ocations Rm %of income %

Tuition and other fees Rm %of income %

Private allocations Rm %of income %

Sales of services and products Rm % of income %

Total expenditure of a recun"ing nature Rm

Staff costs Rm % of expenditure %

Funds ava ilable Rm

Long-term investments Rm

The net increase of R248,633 million in funds available represents a

decrease of R38,390 million in unrestricted funds, which are open

to discretionary use by the Cou ncil, and an increase of R 17 1 ,302

mi llion in restricted funds and an increase of R I 15,721 million in

the fair value reserve. Restricted funds comprise operating, loan,

endowment and fixed-asset funds the use of wh ich is subject to

specific conditions. The increase in restricted funds of R 17 I ,302

million to Rl 648,893 mill ion is mainly due to the realisation of

profit on disposal of investments during the yea 1~ Excluding the fai r

value adjustments and profit on disposal of investments, the net

increase in available fu nds is only R 19,9 12 mill ion, which indicates a

very small increase of I ,2% in available funds. This is mainly due to

the greater than normal app li cation of unrestricted funds in pursuit

of the University's strategic goals, with specific reference to diversi­

ty and transformation as well as the extraordinarily steep adjust­

ment on the post-retirement medical li ab ility of the University

amounting to R36,580 mi llion.

Total income of a recurring nature increased by 27,4% (2003: 9,5%)

to R I 692,542 mil lion wh ile total expenditure increased by 9,5%

(2003: 20,3%) to Rl 354,03 1 mi ll ion.

The lower increase in expenditure against last year is mainly due to

·the deliberate pursuit of the University's Business Plan, as approved

by the Council on 2.3 March 2004, which focuses on, inter alia, the

eli mination of the negative gap that arises between income and expenditure. The cost-effectiveness analyses, which are performed

continuously to ensure optimal functioning of the business process­

es of the University at the lowest cost possible, have also begun to pay dividends. The significant increase in income is mainly attribu­

table to t he fair value change in investments, which will be adjusted

through the income statement with effect from the current yea~

Excluding this effect, the lower increase in income is attributable to

12

2004 Increase/ 2003 Increase 2002 Decrease% %

1,693 27,4 1,329 9,5 1,2 14

559 3,3 541 7,3 504 33,0 40,7 4 1,5

349 10,4 316 22,7 257 20,6 23,8 21,2

298 9,2 273 15,8 236 17,6 20,6 19,4

72 (2,7) 74 4,4 70 4,2 5,5 5,8

1,354 9,5 I ,236 20,3 1,027

643 11,6 576 18,0 488 47,5 46,6 47,6

1,994 14,3 I ,745 17,4 I ,487

1,337 20,8 I ,107 17,7 940

the decreased government allocations, in particular those in t he

form of subsidies accrui ng to the University. The marginal increase

in income realised was due to the growth in the number of

students, with a concomitant increase in tuition fees, as well as the

expansion of the University's research activities. In the fu rther

development and realisation of the Business Plan, the Univet-sity will

continue to address the negat ive gap between the growth in

income and expenditure.

At 3 I December 2004 the University held the fo llowing invest­ments in unlisted subsidiaries:

I. Name of company: Nature of activities:

Effective shareholding: Book value of interest: - Shares -Loan

2. Name of company: Nature of activities: Effective shareholding: Book value of interest: - Shares - Loan

3. Name of company: Nature of activities:

Effective shareholding: Book value of interest: - Shares - Loan

Unistel Group Holdings (Pty) Ltd Exploiting the intellectual property and resources of Stellenbosch University for research, training and commercial services 100%

Rl 000 R2.20 286 Unistel Properties (Pty) Ltd Dormant 100%

Rl 000 R nil USB Executive Development Ltd Develops and offers management development programmes and provides Consultancy services 55.5%

R2 000 000 Rl 0 604 408

The consolidated financial statements also include the following trusts at 3 I December 2004:

I.

2.

3.

Name of trust: Natu re of activit ies:

Loan to trust Name of trust: Nature of activities:

Loan to trust Name of trust: Nature of activi ties:

Book va lue of interest: - Investment - Loan

Stellenbosch Trust Fund-raising and investment of endowment funds R nil The Stellenbosch Development Trust Investment in property for tuition and research activities R nil US Investment Trust Utilises the knowledge base of Stellenbosch University for invest­ments for the benefit of the University's objectives

RIOO R4 877

Ge neral

Our five-point Vision Statement, which was fina lised in 2003, has penetrated the psyche of the University deeply during the past year and has become our compass for the way fmward.

Stellenbosch University: Is an academic institution of excellence and a respected knowledge partner. Contributes toward building the scientifi c, technological and intellectual capacity of Africa. Is an active role player in the development of the South African society. Has a campus culture that welcomes a diversity of people and ideas. Promotes Afrikaans as a language of teaching and science in a multilingual context.

In essence, t t·ansformation at Stellenbosch University means the

achievement of the objectives set out in this Vision Statement. In

the realisation of th is vision it is important that we learn to cele­

brate our successes along the way, and not only to focus on our

problems and anxieties. I am glad to be able to demonstrate in this

report that there are indeed many successes worth celebrating. I

believe that transformation is working. It is not a compromise on

quality, as some of our traditional supporters seem to fear; on the

contrary, transformation is an enabling factor in increasing quality.

In this regard , I wou ld like to quote once more from the applica­

tions for the student leaders' tour, this time from the application of

a white, Afrikaans-speaking senior student:

I used to see diversity as a threat to tradition and culture. Only now do I realise how strong traditional Afrikaans culture is in our University, and how difficult it is for someone from a differ­

ent background to become part of it. We isolate ourselves (rom wonderfully rich other cultures. It is extremely important to

cross these barriers and to create a space where we can all feel at home to make the most of our study years and to pre­pore ourselves to be in~uential in the world outside.

What this student is telling us is that we cannot and must not try

to cast our institutional culture in cono·ete. There is a growing con­

stituency of Maties and former Maties who are not white

Afrikaners and who do not necessari ly have the same convictions,

opinions and priorities that were traditionally the case. The Matie

community is expanding - not only numerically, but also in mindset.

Cultural homogeneity of the Matie commumly is no longer a given.

And this evolution mirrors our striving for a diversity of ideas.

However, many still fear that a change in colour will bring about a change in language. In this regard I am pleased to quote from the address delivered by President Thabo Mbeki when he received his honorary doctot·ate in Febt·uary 2004:

/ 13

Report of the Rector and Vice-Chancellor continued

This we must also say that a healthy diversity among our uni­versities allows for different language policies. Now that A(rikaans has been liberated (rom its narrow Afrikaner nation­alist straightjacket, Stellenbosch University must answer an important question - how can the University, as an academic and educational institution, equip and motivate A(rikaners and other citizens with Afrikaans as their first language to be par­ticipants in the common journey towards the birth of a united but diverse nation?

In this context I must make the point that Afrikaans has already proved itself as a national asset, side by side with other linguistic assets. The use of A(rikaans as a medium of instruction is port of the institutional diversity of which I have spoken.

I believe that, in light of this acceptance in principle of a un ique lan­guage policy fot- Stellenbosch University by the Head of State him­self, we have made considerable progress towards a generally accepted Afrikaans-language profi le.

Se lf-assesment

One of the requirements set by the Department of Education for the annual reports of universities is that they include a summary self-assessment by the Rectot· regat·ding the achievement of objec­tives. I wish to react by commenting on out· pmgress on the five points of our Vision Statement

14

Excellence: We achieved .several important successes in 2004, as reported above. Our academic performance is good. Business Day (26/03/04) reported that, nationally, Stellenbosch Univet·sity is by far the first choice among top matriculants. Scientific capacity building: Our participation in an African context has both grown and deepened. At the first gradua­tion ceremony of the African Institute fot· Mathematical Sciences (of wh ich I am the Chairperson of the Advisory Committee), I was struck anew by the sheer scope of untapped possibil ities in this regard. Role playing: Several of the research centres of the University are well-known role players at national level (e.g. the But·eau for Economic Research and the Centre fo t· Science and Technology), and othet- centres are in the process of assuming a similar role. Many of our senior staff have also figured prominently at national leve.l dut·ing the past yea t~ And it is apparent from the way that we receive frequ ent mention in public debates that, to many people, change in Stellenbosch remains a symbol of change in South Africa. Diversity: We are progressing satisfactorily with regard to the colour profile of our students, very slowly with regard to the colout· profile of our staff, we ll with t·egat·d to the advancement of women, and vat·yingly yet pmmisingly in the broader field of institutional culture. Afrikaans in a multilingual context: We are building a new legitimacy for Afrikaans. It is a legitimacy based on Afrikaans that tt·anscends boundaries of colou 1~ Afrikaans as an instt·u-

ment of empowerment, and Afrikaans that is not isolated, but rubs shoulders with other languages.

In th is tenth year of democracy in South Africa, I would therefore like to report that Stellenbosch increasingly figures as a true nation­al asset.

Acknowledgements

The successes and advancement of Stellenbosch University are due primarily to our staff, and I would like to express my appreciation of them. Many thanks to Mr Desmond Smith, for the cooperation and empathy that the Management and I received from him during his term as Chairperson of the Council until March 2004, and to Dr Edwin Hertzog, for the manner in which he assumed this demanding portfolio. As always, I am indebted to the Chancellot- for her mot·al support and the dign ity she brings to our ceremonial occasions. I am also grateful to our students fo r the way in which they have begun to assume leadership through transformation ini­t iatives.

During 2004, we hosted two special acknowledgement ceremonies fot· our biggest donors, to whom we awarded the Vice­Chancellor's Award. I once again wish to express our gratitude to all our donors, large and smal l, once-off and regular. Our total income fmm donations received du t·ing 2004, as reported by the Stellenbosch Foundation, exceeded R73 mi llion -the largest amount ever.

I would like to conclude with the words that I used at the meeting of the Convocation on I I November 2004 in recognition of the role played by our formet· Maties:

Everyone who knows about Stellenbosch has respect for the University as an academic institution, and respects and appre­ciates what former Maties built up over many decades. We, as Management, accept the inheritance that we received (rom our predecessors, and we use it to the best of our ability. We try to deal responsibly with what we inherited, while we build for the future. We believe that our more than one hundred thousand alumni are a priceless asset in this process. When the older community is seamlessly taken up into the newer community, we will be able to do so much more than in the past. I am loo!dng folward to such a future.

Prof Chris Brink Rectot· and Vice-Chancellor

Senate's Report to C ouncil

In my Senate's Report to Council, in addition to the prescribed

reporting on teaching and t-esearch by the t-espective Vice-Rectors, I

have also requested reports from the heads of the other three

responsibility centres, namely operational affairs, institutional plan­

ning and financial management and innovation.

The Senate of Stellenbosch Univet-sity consists of the Redot- and Vice-Chancellor (Chairperson), the Vice-Rectors, the Executive Diredot-: Finance, the Manager: Innovation, the Registrar (Secretat-y), two members ofthe Counc il nominated by Counci l, al l the full professors of the Univet-s ity, departmental chai t-pet-sons who are not fu ll professors, five associate professors, four members of the Students' Representative Council, two members of the aca­demic staff who are not professors or associate professors, two

Re port of th e Vi ce-Rect or (Teaching)

The higher education landscape underwent transformation in many aspects in 2004, part icularly with t-egard to mergers and the shaping of new types of institutions. While one could claim that relatively few of these highly visible and dt-amatic changes were app li cable to Ste ll enbosch University, it would be false to allege that out­University is not involved in positive and exciting processes of transformation. The year 2004 will be remembered as the yeat- in which the Business Plan 2004 - 2006 was launched with the aim of giving practical form to the University's vision fot- 20 12. The Business Plan fu rther aims to o-eate financial space, pat-ticularly in the context of the state's declin ing contribution to the cost of studying at univet-sity.

While learning and teachi ng at the University are directly and indi­rectly affected by all of the Business Plan projects, it is possible to isolate four themes that hold exceptional implications for learning and teaching, namely the improvement of graduation rates, the ter­mination of obsolete and cost-ineffective activities, international accred itation (obviously not excluding national accreditation) and organisational restructuring. Project teams for all these themes commenced theit- activities during 2004 and, in certain instances, their reports containing recommendations have already been finalised . An important fact is that the Business Plan projects that relate directly to learning and teaching at-e closely linked to the Teaching Management Plan, and actually catTy out certain aspects of the l atte t~

C hanges to academic structure s

The Department of Education decided that Nut-sing Science as a field of study in the Western Cape shou ld be changed to a single t-egistt-ation model , which has meant, among othet-s, that newcomer students in Nursing Science will only t-egistet- at the University of the Western Cape (UWC) as of 2005. Nursing Science as a fie ld of study is therefot-e being phased out in the Faculty of Health Sciences of Ste ll enbosch University. Second-, third- and fourth-year students in Nut-sing Science at the Univet-sity of Cape Town and Ste ll enbosch University will proceed with theit- studies unt il they

Teaching

members of the administrative staff, two members of the technical staff and additional persons declared by Council to be members of the Senate, namely the Sen ior Director: Human Resources, the Senior Director: Library Service, the Seniot- Director: Information Technology, the Senior Dit-ectot-: Reseat-ch, the Sen ior Dit-edor: Finance, the Senior Dit-edor: Strategic Initiatives, the Coord inator: Institutional Planning, the Director: Academic Planning and Quality Assurance, the Director: Academic Suppot-t, the Director: Centre fot-Teaching and Learning, the Director: Research (Science), the Dean of Students and two associate deans of the Faculty of Health Sciences.

The three Vice-Rectors, who are responsible for teaching, reseat-ch and operations respectively, the Executive Director: Finance and the Manager: Innovation repot-t individua ll y.

Prof Russel Batman, Vice-Rector (Teaching)

have graduated, and wi ll still be referred to as Stellenbosch University and University of Cape Town students and t-eceive their degrees from these two instrtutions. Lecturers of the Universrty of Cape Town and Stellenbosch Universrty wil l become involved in the teaching of newcomer students, who will study Nursing Science at UWC.

Besides this move and phasing out of Nut-sing Science, there were no other drastic changes to academic structures in 2004.

Signifi cant development of and success in met hod s of teac hing and delivery

The University's vision for learn ing and teaching places the focus on quality teaching, ongoing t-enewal of teaching and learning pro­grammes and the creation of effective opportunities for learning and study. Further to th is vision, the Teach ing Management Plan has outl ined steps fo r its execution. During a th ink-tank of interested parties held on I 8 Febt-uat-y 2004, all the activities in the Teaching Management Plan were prioritised. Responsible environments and individuals were identified, and deadlines were set. In addition, the Teaching Management Plan is monitored electron ically on a contin­uous basis, and all those with responsibilities regularly submit elec­tronic reports on the progress in each of the 63 initiatives. In this

IS

Senate's Report to C ouncil continued Teaching

manner, value is added to learning and teaching, and especially to the endeavour to become more student-centred.

In 2004, the University decided to substantially expand its capacity fore-learning through the purchase ofWebCTVista.This program is significantly more powerful than the ordinary WebCf, and enables lecturers to utilise technology far more effectively in efforts to strengthen the learning and teaching process to the benefit of all students. The WebCT company has singled out Stellenbosch University as one of the leaders in e-learning activities in Africa.

A total oL58 newly appointed lecturers were involved in PREDAC (Professional Educational Development for Academics) in 2004.The tt·aining of the lecturers takes place over a period of four days at the beginning of every year, and is followed during the course of the year by two further phases, which are presented as workshops and a mini-conference.

Although the faculties, with the lecturers and students as the cen­tral role playet·s, are chiefly responsible fo r teaching and learning, academic suppot·t services are also provided to lecturers and stu­dents, without which the teaching and learning process would be very difficult to sustain. The following envimnments at·e central to this purpose:

16

The Division fot· Academic Administration, under the lead­ership of the Registrar, Mr Johann Aspeling, is t-esponsible for all academic administrative duties. Student Affairs is concerned specifically with those dimen­

sions of the students that extend beyond the lectut·e hall, including the interface with formal student structures (such as the Students' Representative Council), the social adjust­ment and integration of students, societies, and the accom­modation dimension. Mr Pieter Kloppers acted as Dean of Students from January to July 2004, until the new Dean of Students, Dr Edna van Harte, commenced service in the middle of July. Mr Kloppers was subsequently appointed as Coordinator: Student Culture Renewal and Residences in the Student Affairs Division. Academic Support is a collection of environments headed by Dr Ludolph Botha. It consists of the Centre for Student Counselling and Development, the Centre for Prospective Students, the Centre for Teaching and Learning, the Language Centre, and a Tracking System. The Academic Support environments played an important supplementary role in learning and teaching in 2004 by providing academic support to both students and lecturers aimed at producing successful, well-rounded students and dynamic lecturers. Academic Planning and Quality Assurance was established in 2004, under the leadership of Pmf Jan Botha, as a strate­gically.important division of the University. Besides laying the foundation for an environment of this nature that will have to play an essential role in academic planning, prepara­tions commenced for the extremely important accompany­ing work on quality assurance, amongst others with a view to institutional audits.

Composition and size of the student corps

Composition and size of the student corps according to race and

type of teaching

Race

Black

Coloured

Indian

White

Total

Contact

Teaching

2 243

2 815

428

IS 514

2 1 000

Distance

Teaching

871

59

8

34

972

Total

3 114

2 874 -436

IS 548

21 972

The number of black, Indian and Coloured students increased

slightly, from 29, I% of the total student body in 2003 to 29,2% in

2004. At postgraduate level, the composition in 2004 was as follows:

White - 53.7% (56.3% in 2003)

Black - 3 I .4% (30,6% in 2003) Coloured - I 1.7% and Indian 3,2% (9.4% and 3,6% t·espectively in

2003). The facult ies of Education, Military Science and Theology had by fat·

the highest registrations of black (inclusive) students in 2004.

Composition and size of student corps according to gender

Gender

Female

Male

Total

Number of Students

II 490

10 482

2 1 972

The total percentage of male students increased slightly, from

47, I% in 2003 to 47.7% in 2004.

Composition and size of contact teaching student corps accord-

ing to geographic origin

Geographic origin

South Africa

Western Cape

Northe rn Cape Eastern Cape Free State Kwazulu-Natal Mpumalanga

Limpopo Gauteng North -West Province Other countries

Botswana

Number of Students

19 665

13 524 590

I 21 I

365 870 236

668 2 000

201 I 335

63

~',

(93,6%)

(64.4%) (2,8%) (5,8%) (I ,7%)

(4, I%) (I, I%) (3,2%) (9,5%) (I ,0%)

(6,4%)

(0.3%)

Composition and size of contact teaching student corps accord­

ing to geographic origin (continued)

Geographic origin Number of Students

Lesotho 26 (0,1%) Namibia 614 (2,9%) Swaziland 17 (0, 1%) Zimbabwe 43 (0,2%) Elsewhere 572 (2.7%) Total 21 000 (100%)

In 2004, students from the Western Cape constituted 64.4% of the entire contact teaching student body. The corresponding figure for 2003 was 63.4%.

Composition and size of student corps according to home language

Home Contact Distance Total Language Teach ing Teaching

Aft-ikaans 12 945 34 12 979 English 6 168 77 6 245 Afrikaans/English 351 3 354 Other official SA languages 596 858 I 454 Other Languages 940 940 Total 2 1 000 972 21 972

The percentage of Afrikaans-speaking students at the University decreased from 73,5% in 1995 to 68,5% in 1997 and to 59, I% in 2004. (If distance education students are omitted from the calcula­tions, the figure for 2004 is 61 ,6%.)

Teaching

Teac hing: Levels of academ ic progress for different disciplines and levels of study

Students per faculty and type of instruction

Faculty Contact Distance Total Teaching Teaching

Agricultural and Fot-estry Sciences I 142 I 142 Arts 4345 4 345 Economic and Management Sciences 6 073 6073 Education I 173 972 2 145 Engineering I 822 I 822 Health Sciences 2 789 2789 Law 823 823 Mil itary Science 426 426 Science 2 095 2 095 Theology 3 12 312 Total 2 1 000 972 2 1 972

\

17

Se nate's Report to Coun cil cont inued Teaching

Accreditation and approval of new academic programmes with a Learning and Teaching) in 2004, which wi ll be awarded from view to presentation in 2005 2005 as an incentive to academics to do research on teaching

and learning and to produce new and creative approaches to Programme Facu lty

MComm (Psych) MComm

Economic and Management Sciences Economic and Management Sciences

(Operational Research) Postgraduate Diploma in Financial Planning Postgraduate Diploma in Market ing

Economic and Management Sciences

Economic and Management Sciences

BA in Music Arts Arts MPhil in Fine Arts

MPhil in Biographical Studies Arts MPhil in Intercultural Arts Communication BScMedSc Health Sciences (Hyperbaric Medicine) BScMedSc (Underwater Medicine) MMed in Emergency Medicine

Health Sciences

Health Sciences

Postgr·aduate Diploma in Infection Control

Health Sciences

BM il (Technology and Defence Management)

Military Science

MPhil in Security Management Mil itary Science MPhil in Chaplaincy Studies Theology

Teac hing: Awards and achi evements

Mechanisms and methods of evaluation

The University maintains the fo llowing systems of evaluation:

18

A compulsory system of student feedback on lecturers and modules (this system has been in place since 1988, with reviews in 1999 and 200 I), which was expanded in 2002 to include feedback on teaching programmes. External assessment of departments (in place since 1993, and mod ified in 1998 to include (i) aspects of research and (ii) self-assessment prior to the visit by the external panel; in 2003, the assessment was adapted to form an integral dimen­sion of the new, comprehensive institutional qual ity assurance system of the University). A system of performance-driven remuneration for all mem­bers of staff of the University. based on an assessment of the staff since 1995. (Despite a concerted effort in 2004 to lend a greater degree of uniformity to the system, it was decided that the academic environments should reflect fu rther on the best system for academics.) The Rector's Award for Excellence in Teaching (since 1995), the Rector's Award for Excellence in Research (since 1999) and the Rector's Award for Excellence in Service (since 2000). The institution of FIRLT (Fund for Innovation and Research in

learning and teaching.

In 2004, the University's Business School once again achieved remarkable results. It was granted two coveted international accreditations, EQUIS and AMBA. and also raised its profi le in the national league tables (further details appear in the Report of the Rector and Vice-Chancellor on p.l I).

The performance evaluation and performance-based remuneration of staff

The performance evaluation of academic members of staff is large­ly directed at undergraduate and postgraduate teaching, research and publications, and service to the institution and to the commu­nity in general. The system is used as a mechanism to ensure quali­ty, increase productivity and provide recognition.

Access to and provision of financial aid

The University offers a variety of bursar-ies and loans to students in need of financial support These include mer·it awards, special bur­saries, and merit bursaries for students from previously disadvantaged communities. In addition to the University's own bursary loan scheme, there are also other forms of financial assistance, such as the state's National Student Financial Aid Scheme (NSF AS).

Undergraduate student loans according to facu lty and race

Faculty Black Colour- Indian W hite Total ed

Agricu ltural and Forestry Sciences 13 17 3 1 6 1 Arts 49 223 2 73 347 Economic and Management Sciences 45 232 3 85 355 Education 12 31 43 Engineering 7 32 43 82 Hea lt h Sciences 22 123 IS 62 222 Law 8 63 13 85 Science 28 106 4 1 175 Theology 9 18 8 35 Total 18 1 826 21 387 I 415

Undergraduate student bursaries accord ing to race - total for all fac ul ties

Race Total

Black 482 Coloured I 565 Indian 8 1 White 3 766 Total 5 894

Postgraduate student bursaries accord ing to race -total for

all faculties

Race Total

Black 899

Coloured 339

Indian 41

White I S72

Total 2 85 1

C hanges in tu it ion fees charged exc luding the support that is provided for bursaries and loans

Registration fees 2005 (payable on the day of registration)

Compulsory first instalment of tuition fees, under-graduate

Compulsory first instalment of tuition fees, postgraduate

Compulsory fi rst instalment of residence fees

RS SOO

R3 600

R4 400

All accounts in an-ears must be settled before a student will be per-­

mitted to register for- the next year of study.

Tu ition fees

The information below is a representative selection of the University's

teaching programmes, accompanied by the estimated tuition fees for

each programme for 2004.These figures are supplied as an approxi­mate estimation of the cost of tuition.

Teaching Programme Amount

BA Rl3 SSO

BScFor !/Dietetics RIS ISO

BScFor II - IV RIS 3SO

BScAgric RIS ISO

BComm/BEcon Rl3 8SO

BAcc RIS 4SO

BAcc, LLB RIS 850

Physiotherapy Rl6 OSO

Speech Therapy and Occupational Therapy Rl4 8SO

BTh Rl2 4SO

BMus RIB 8SO

BEd Rl2 4SO

BEng Rl6 4SO

LLB (Undergraduate) Rl4 2SO

LLB II & Ill Rl4 7SO

MB, ChB I Rl6 9SO

MB, ChB II -VI Rl9 200

B in Nursing Science (BCur) I - IV Rl3 2SO

Teaching

Accommodation in University residences (per year)

In 2004, the cost of a double room varied from R7 370 in Huis

Francie van Zijl on the Tygerberg Campus to R I I 060 in Wilgenhof

men's residence in Stellenbosch.A single room cost R9 790 in Huis

Francie van Zijl and Rl3 490 in Wilgenhof

-19

\

Senate's Report to Council continued Research

Prof Walter Claassen, Vice-Rector (Research)

Report of t he Vice-Recto r (Research )

Research

During 2004, Stellenbosch University furthe r- str-engthened its research portfolio. The Un iversity is at present in an even better position to make a contribution to the development of science at an international level, to undertake research in collaboration with institutions in the public and private sectors in South Africa, and to transfer advanced knowledge to industry and develop high-cali bre human resources for the country. The University is therefore very well placed to fu lfi l its role as a knowledge partner.

In 2003, the University selected a number of focal areas that are now continuously being developed. These areas are: language and culture in a multilingual and mu lticultural society, the knowledge economy. the building of a new community, a competitive economy. biotechnology. sustainable biodiversity and the environment, the production and provision of food , the fight against disease and the promotion of health, technology for the industry, fundamental theo­ry, mathematics and complexity.

These focal areas received a substantial boost in 2004 through the awar-d ing of two centr·es of excellence to the University. The Department of Science and Technology (DST) under·took a new in itiative in research by inviting universities (via the National Research Foundation [NRF]) to apply for centres of excellence, which would receive support for a period of ten years. Seventy applications were submitted in 2003. Eventually, six such centres of

20

exce ll ence were awarded, two of them to Stell en bosch University; one of which is shared with another university).These centres are:

The DST/NRF Centre of Excellence for Invasion Biology. with Prof Steven Chown as Director. The DST/NRF Centre of Excellence for Biomedical TB Research Qointly with the University of the W itwatersrand), with Prof Paul van Heiden (SU) as Director and Prof Valerie Mizrahi (Wits) as Deputy Director.

The research conducted at both centres is enriched by coopera­t ion with other universities and research centres in South Africa and abroad. The centres focus on cutting-edge research, the training of outstanding researchers, and service delivery to the broader South African community. Discussions are underway on possible further centres of excellence.

In 2004, the number of staff who acquired an NRF rating rose to 20 I. On the basis of th is achievement, the University is one of the two leadi ng resear-ch universities in the country. The University is especial ly proud of its A-rated resear-chers (who are r-ecognised as world leaders in their fie lds). After· two more A ratings in 2004, the University now hosts the fo ll owing A-rated academics:

Prof LJ Barbour (Chemistry and Polymer Science) Prof SL Chown (Botany and Zoology) Prof J-HS Hofmeyr (Biochemistry) Prof DG Kroger (Mechanical Engineering) Prof DE Rawlings (Microbiology)

Prof MJ Samways (Entomology) Prof P Sandr-a (Chemistry and Polymer Science) Prof AJ van der Walt (Public Law)

An exceptional honour was bestowed on Prof Hanlie Moolman­Smook (Medical Biochemistry), a young researcher in molecular genetics. She was the recipient of the President's Award of the NRF and the Internat ional Senior Research Fellowship Award ofThe Wellcome Trust in London. There are only nine of these high-level research fellows ofThe Wellcome Trust in South Africa.

The University remains one of the most important partic ipants in the Technology and Human Resources for Industry Programme (THRIP) of the Department ofTrade and Industry, and through this involvement maintains its role as a reliable knowledge partner of South Afr ican industry. The THRIP award to SU for 2004 is in excess of R23 million. Two Stellenbosch students were honoured by THRIP with prizes for excellence in research at a glorious awards ceremony. They are Ms Ndivhuwo Netshilaphala (Conservation Ecology) and Ms Marlize Schoeman (Electrical and Electronic Engineering).

SU researcher-s from the designated groups (women, black/Coloured/Indian people and people with disabilities) acqu ired so much support in the NRFThuthuka Programme that the University was selected as one of three tertiary institutions to par-

ticipate in a Thuthuka pilot programme for mentors. An effectively structured capacity-building and mentoring programme is being run at SU to establi sh the next generation of researchers.

Researchers at the University are increasingly participating in inter­national research programmes. In 2003, a service point was estab­lished in the Research Development Division for the sole purpose of acquiring international funding for research from bilateral agree­ments to which South Africa is a party. It would appear that SU has been exceptionally successfu l in acqu iring such funding. Participation in the Sixth Framework Programme (FP6) of the European Union (EU) may be singled out as an example: the Un ivers ity is one of the largest recipients of funding that is only available in n~tworks involving large international programmes.

W ith the help of international funding, researchers in the Faculty of Health Sciences are making substantial contributions to research on the HIV pandemic in South Africa. Contributions include research on the prevention of opportunistic infections in HIV-infected chil­dt-en (the Rockefeller Foundation), involvement in the Paediatric AIDS Cli nical Trials Group (NIH), the AIDS Vaccine Integrated Project (A VIP) (EU), and chemotherapy in HIV-infected children who also suffer from tuberculosis (Bristol-Myers Squ ibb). Prof Nulda Beyers received an award of R28 million from the Bill and Meli nda Gates Foundation as part of the CREATE initiative aimed at controlli ng TB.

The quality and scope of the University's research outputs remain among the best in South Africa, and have increased stead ily over the past few years. In 2004, the Centre for Research on Science and Technology (CREST) at SU performed an in-depth bibliographi­cal analysis of the publication output of the University, which is used to evaluate the University's strengths and weaknesses, as well as the steps that may be taken to enhance research.

The increasing importance of research at the University has led to

Research

considerable emphasis being placed on the tra ining of researchers in order to better comprehend possi bilities and opportun ities in the research sphere, as well as on training in research methodology and study guidance of postgraduate students. A mentoring and capacity-building programme was initiated in 2004 to advance these objectives.

Direct access to cutting-edge equipment is a prerequisite for top­level research. A donation by SASTECH enabled SU to acquire a modern 400 MHz nuclear magnetic resonance spectrometer, wh ich is a superb addition to the capacity of the current 600 MHz spec­

trometer. The research capabilities of SU were further enhanced dramatical ly by the acquisition of equipment such as a single crystal X-ray diffractometer and a PALM Microlaser System. All the expen­

sive equipment of SU is recorded on a web-based database to fac ilitate its optimal usage.

The first publication of the glossy brochure, Research @ Stel/enbosch , further enhanced the image of SU as a research-driven university in 2004. The brochure contains a summary of the University's research high lights.

Given the established expertise of SU, we are in demand as a part­ner by various industries in South Africa. In order to effectively manage industry-backed research, identify and handle risks and meet the requirements of the King II report on corporate gover­nance, the University implemented a structured system of research contract management at the beginning of 2004.This system ensures that all related issues enjoy adequate attention. In 2004, 288 con­tracts were received and 267 were signed.

At SU, postdoctoral associates contribute substantially to our research outputs and to the creation of a dynam ic culture of research. The Andrew Mellon Foundation, based in New York, has granted generous bursaries for black postgraduate students and postdoctoral associates, while the Claude Leon Foundation has

21

Senate's Report to Counc il c ontinued Research

made a considerable num ber of postdoctoral fel lowships avai lable at the Un ivers ity.

In 2004, the University entered into a comprehensive research cooperation agreement with the CSIR to undertake mutually advantageous projects. The CSIR is the largest research and devel­opment organisation in Africa.

Researchers at the University received top awards during the past year, including:

The 2004 gold medal of the SA Chemical Institute, to Prof Ben Burger of the Department of Chemistry and Polymer Science, for his outstanding contribution to Chemistry. The American Chemical Society's award for Chromatography and the 2004 award as South African Chromatographer of the Yea1; to Prof Pat Sandra of the Department of Chemistry and Polymer Science. The South Africa Medal (Gold) for 2004 from the Southern African Association fo1· the Advancement of Science, to Pmf Piet Steyn, Sen ior· Director of Resear-ch, for his contr·ibution to science in South Africa. The Alexander· L Geor·ge Award (presented by the International Society for Political Psychology) for the best book in the fie ld of political psychology in 2003, to Prof Amanda Gouws of the Department of Political Science Uointly with co-author James L Gibson). The silver medal of the Medical Research Council for excellence in research, to Prof Paul van Heiden. The Molteno gold medal of t he Cape Tercentenary Foundation, to Prof Sue Milton of the Department of Conservation Ecology, for her exceptional contri bution to nature conservation and the rehab il itation of natural flora in the Karoo Renosterveld. The coveted international award as Researcher of the Year from Earthwatch, to Prof Alison Leslie of the Department of Conservation Ecology, fo r a research project on croco­diles in the Okavango.

The percentage of postgraduate students at the University is incr·easing. In 2004, approximately 36% of the students were post­graduate (this figure includes diploma students) . The University's contribution to Master's and doctoral students in the country was 13%, the second highest among universities, and the highest when taking into account the size of the University.

In the year under review, the Stellenbosch Institute for Advanced Study (STIAS) continued its innovative interdiscip li nary pro­grammes. An intensive search was also undertaken for fund ing for addit ional bu il di ngs on t he Mostertsdrift site . The decision of the Swedish Wall enberg Foundation in late December to provide the fu ll amount requi red for the research and seminar centre at the University represents a significant breakthrough - an amount of nearly R22 million. This support wil l enable the establishment of a faci lity that can play an important role in the creation of new

22

knowledge and the development of high-level capacity on the African continent.

The institute received a large number of international visitors and researchers during the year.

The Library Servi ce

During 2004, the Library Service made considerable progress in integrating quality assurance with li brary functions and in instituting initiatives that sti ll all ow the Li brary to fu nction according to the Un iversity's overall strategy.

The development of a comprehensive and integrated qual ity assur­ance st rategy for the Library Service received considerable attention during the year under review. The Balanced Scorecard (Kaplan &

Norton) was employed as a structural model fo r designi ng a cyclical quality assurance system that is based on strategic planni ng and deals with the four organisational dimensions of client focus, internal processes, innovation and financial focus. The system makes complete provision for the qua lity assurance criter·ia identified by the Higher Education Quality Committee (HEQC), and includes elements rec­ommended by the Committee for Higher Education Li braries in South Africa (CHELSA).

The seventh annual symposium, which was held in 2004 under the banner. Getting beyond the starting blocks: quality assurance issues at academic libraries, also focused on this issue. Experts from four conti­nents were assembled to identifY the hindrances and obstacles asso­ciated with qual ity assurance and to place the participants on the home stretch to successful quality evaluations.

The Li brary Service's strategy for the transition from paper to fu ll­text electronic medium progressed well in 2004. About 466 print journals were cancelled because their content is available in full-text databases, and a further 216 print journals were replaced with elec­tronic editions. The total number of electronic journal articles cur­rently avai lable through the Li brary Service's website (in databases) is 13 265; single electronic subscriptions amount to 379, while only 2 064 journal articles are still in paper format. The success of the migration process is largely attributable to expertise and confidence in the electr·onic information environment, which increased notice­ably in the year under review.

A new post was instituted at the beginni ng of 2004 with the aim of aligning the information literacy function of the Library Service with that of the University. The duties attached to this post include the development, coordination and organisation of the training function in the Library Service, its integrat ion with academic programmes, as well as liaison with university departments regarding information lit­eracy. A variety of initiatives re lating to information literacy were launched in 2004, including adjustments to a web-based infor·mation literacy programme to tailor it to the needs of SU students; the development of the GetWise@URLibrary training actions; the deve l­opment of an Internet training programme for library staff, which will be expanded to accommodate cl ients in 2005; and a pamphlet ent i-

tied Information Literacy in the Curriculum, designed for inclusion in the PREDAC course material for new lecturers.

The function of providing information was expanded in 2004 through the introduction of an electronic enquiry service, Ask a Librarian, by means of which clients are able to direct enquiries to subject li brarians seven days a week, at any t ime of the day or night

A positive exchange rate and a continuing proven need by depart­ments for books as sources of information led to a record number of I 0 270 orders being placed during 2004. In total, I I 690 items (books and periodicals) and 990 theses were received. In the same period, 300 870 books were issued by the JS Gericke Li brary and the five branch libraries, and more than 420 000 complete electronic articles were downloaded from databases.

Internat iona l Office

In 2004, the International Office was chosen as the national winner of the IEASA (International Education Association of South Afr-ica) Golden Key competition for excellence in internationalisation for the second consecutive year. For the 2004 competition, an evalua­tion was made of the participation of local students in exchange programmes. The information and suppor-t service of the International Office, Matiesabroad, had a positive infiuence on the mobility of local students through a variety of exchange pro­grammes, continuous counselling, limited financial support, and a campus-wide Study Abroad Fair.

More than I 900 non-South African citizens from more than 70 countries were registered at the University in 2004. More than 50% of these students came from African countries. Interest among

Research

American students in fol lowing a Study Abroad programme here has grown as a result of the inclusion of SU in the International Student Exchange Program (ISEP) and of our W inter School during the July vacation. More than 240 foreign students participated in the elec­tive placement programme at the Tygerberg campus.

Visitor highlights included the visits of Princess Astrid of Belgium, Mr Zhang Baoqing, Deputy Minister of Education of the Peoples' Republic of Ch ina, at the opening of the multimedia laboratory of the Centre for Chinese Studies, Senator Liz Figueroa of Ca lifornia, and Dr Wilfrido Villacorta, Deputy Secretary-General of ASEAN (Association of South East Asia Nations).

Our network of universities has been expanded to include the uni­versities of Helsinki (Finland), Bergen (Norway), Oslo (Norway) and Guthenberg (Sweden). In August, partner institutio~s again partici­pated in the second Stel/enbosch Family Meeting, with 30 partici­pants from around the world. On 12 November, African Universities Day was celebrated in Ste ll enbosch for the fifth t ime at the request of the Association of African Universities. Young researchers from Kenya, Niger-ia, Botswana, Lesotho and Eritrea presented their research.

African in it iatives

During the past few years, the University has become involved in various programmes of training, resear-ch and service on the Afr-ican continent beyond the bor-ders of South Africa. The post of Cor inator of African In itiatives was establ ished in 2003, and Prof Stef 1Coet~-;;e'was appointed in th is capacity. In 2004 he, together with his suppor~oup, compiled several key reports for NEPAD (the ~ ew Partnership f0r Africa's Development).

23

Senate's Report to Council c ont inu ed Operations

Prof Julian Smith, Vice-Rector (Operations)

Report of the Vice-Rector (Operations)

The operations portfolio consists of the areas of responsibility of Community Interaction, Human Resources, Facilities Management, Services, Risk Management, Sport, Student Health and Student Discipline.

During the period under t·eview, the portfolio was managed in a manner that best served the strategic priorities expressed in Vision 20 12 and packaged in a number of Business Plan projects. There

was particular focus on role playing and the promotion of diversity.

Co mmuni ty Interact io n

The 2003 report included extensive information on the develop­ment of a more integrated approach to what was previously referred to as community service. The Community Interaction Policy and Plan approved by Council and Senate at the end of the first semester of 2004 now form an institutional framework for such integration, coordination and quality assurance. Recognition of performance in community interaction is also envisaged.

The establishment of the Senate subcommittee for community interaction in 2005 has meant that the overall determination of policy will reside in Senate, thereby giving further substance to Management's intention to extend community interaction to form a full third branch of the academic core function of the University. The implementation planning regarding the management of the Community Interaction Policy and Plan shou ld lead to the establish­ment of a new management structure for community interaction by the end of the first semester of 2005.

24

H uman Reso urces

Besides performing various routine functions during the period under review, the Human Resources Division also played a signifi­cant role in the development and establishment of a new approach to human resource management Greater emphasis was placed on providing service and adding value.

Planning for the implementation of the Oracle system, sun-e-HR, placed substantial pressure on the entire division, while the restruc­turing of the division was completed successfully. Amongst others, continuous support was provided for processes relating to change management, remuneration adjustments and remuneration pol icy development, performance management, and the management of

employee relations.

Fac ili t ies Manageme nt

The Facilities Management Division (previously Physical Infrastructure) managed two large projects, namely the construc­tion of the new residence and the upgrading of the Fine At·ts Building, in addition to numerous projects of a routine nature and scope. During the period under review, the division received and dealt with more than 22 000 maintenance-related grievances and requests. Good progress was made with the management of physi­cal assets in a manner that better serves the institutional strategic

objectives.

Serv ices

The Set·vices portfolio includes the divisions of Purchasing and Provision Services, Commercial Services, Residence Administration (pertaining in particular to catering, cleaning, and the compilation and management of the budget), and Protection Services (including the risk management function). In general, greater emphasis was placed on service delivery, cost-effectiveness and the creation of income.

The Protection Services Division was relatively successful in main­tain ing its good image. Campus security remains a matter of high priority, and new measures are added from time to time, such as

the commuting service that transports students from campus to nearby resident ial areas at night

Sport

In keeping with the standpoint of the University Management that sport is a strategic asset that is not yet fu lly exploited, the Rector's Management Team approved the sport plan in 2004. A business plan project team was subsequently appointed to implement the sport plan. The plan includes the establishment of a macrostructure fo r sport, sport transformation, the promotion of competitive and recreational sport, and the commercialisation of sport

Outstanding achievements at club, provincial and national level are

continuously being attained in a variety of sport codes. In 2004, the

Maties Sevens rugby team became the first South African team to

win the Melrose Sevens Tournament in Scotland. The South African

Sport Commission accredited Ste ll enbosch University as t he prepa­

ration centre for the national paralympic team that participated in

Athens in 2004.Three Maties- one athlete and two coaches­

accompanied t he team.

Student Health

The de livery of health services to students is continuously being

refined and upgraded. Several partnerships wit h health agencies

and excellent specialists increase t he capacity of the Student Health

Service to de liver a professional service.

During the year under review, the Student Health Service on the

Operations

Tygerberg Campus moved into new offices in the Tygerberg stu­

dent centre. Staff and services were also expanded in terms of the

approach that their service shou ld match the service provided on

the main campus. A full-time nurse and two medical practitioners

were appointed, and a senior cl inical psychologist was made ava il ­

able for academic counselling and to help students suffering from

conditions such as depression, anxiety and eating disorders.

Student D isc ipline

A proven system for the enforcement of student discipline is in

operation, and contraventions of the student rules are handled

under the capable chairpersonship of a professor in law, Prof

Wouter de Vos. The need to amend the rules relating to appeals

was confirmed during the past yeac Unlike previous years, no sen­

sational cases were dealt with in 2004.

25

Senate's Report to Council c ontinued Institutional Planning and Financial management

Prof Estian Ca/itz, Executive Director: Finance

Report on Institutional Planning and Financ ial Management

On I july 2004 the function of institutional planning was added to

the responsibi lities of the Executive Director: Finance. This formalis­

es the essential functional interaction between finance and planning.

Universities, without exception, are challenged to ach ieve greater

fi nancial independence and discipli ne. This requires that universities

be increasingly managed according to business principles, even

though they are not businesses. Given that the main business of the

University is its academic function, the pursuit of strategic goals in a

financially sustainable manner requires thorough and systematic planning.

Institutional planning and financial management comprise a mix of

centra li sed and decentralised responsibilities.

The essence of the institutional planning function (executed by a

small staff of six people) is the macro-coord ination of planning

activities, support for longer-term planning, drawing up university­

wide institutional plans and the processing and distribution of

authenticated and standardised management information. It is the

decentralised responsibility of faculties and academic departments

to develop and design academic and research programmes and

three-year financial plans. A practice that is gaining ground is to do

this in the context of multiyear business plans.

The finance function (executed by 60+ people) comprises finan cial

planning; financial reporting (including financial reporting of a statu­

tory nature); the drawing up and control of the annual budget; the

development and application of sound financial policies; the man-

26

agement, coordination and application of sound aud it ing policies

and procedures; the determination and administration of student

fees and loans; the control of staff remuneration payments, debtors,

creditors, assets and liabil ities; funds, investment and banking admin­

istration; the development and maintenance of financial systems;

and fi nancial management training.

On 19 May 2003 the University Council approved a number of

principles of financial management. These principles emphasise the

central role of the budget in change management and in achieving

strategic priorities. They also recognise the importance of responsi­

ble fin ancial management in view of the duty of care that the use of

taxpayers' money and the money of students (and their re latives

and other supporters), businesses and sponsors, imposes on the

University. At the same t ime, decentralised financial management is

necessary for the promotion of entrepreneurial behaviour and

increased efficiency. By delegation, managers exercise discretion over

budgeted funds and the utilisation of fixed assets. They are subject

to proper reporting and are accountable for the use of money, the

management of fixed assets and the achievement of goals.

The execution of managet·ial responsib il ities are supported by the

creation and maintenance of effective accounting systems and a

management information system through which credible and evalu­

ated data can be made avai lable t imeously. In 2004, as usual, the

accounting and financial control measures of the University met

with good-practice audit norms.

Li ke most other South African universities, Stellenbosch University is

experiencing the financial pincers of shrinking state allocations and

social expectations of low(er) student fees. In addition, the rationali­

sation of higher education institutions affects the University indirect­

ly in that- and in so far as -the cost of rationalisation limits the

avai lability of state funds for the normal operation of universities.

The state allocation as a percentage of the main budget (consisting

primarily of state funds and student fees) has been falling fo r more

than I 0 years. In 1993 it amounted to about 70%- in the 2004

budget the figure was 58%. Thus far it was possible to cushion the

impact of this stt·uctural change in the University's finances by

means of cash flow management, supplements from investment

yields and temporary expenditure cuts. In order to live within its

means, however, the University aims to pursue an expenditure

trend that is sustainable in terms of its income. This requires a com­

bination of measures aimed at constraining expenditure and

increasing income. It also requires a planned approach to the future

growth and composition of the student body, a change in the

tuition programme offering and stronget· emphasis on research and postgraduate studies with a view to achieving the University's

strategic goals and optimisi ng its state allocation and student fees.

Planning techniques to underpin these choices are under develop­ment.

On 23 March 2004 the University Council accepted Management's

Business Plan for 2004- 2006, in terms of which a series of proj­

ects of irreversible change were launched. These projects are aimed

at ach ieving the University's vision statement and the creation of

greater financial manoeuvrab ility. High priority is given to improved

cost-effectiveness and where appropriate it entail s the rationalisa­

tion and termination of ineffic ient and obsolete activities. The estab­

li shment of an e lectronic campus also offers new cost saving

opportun it ies. A pilot project has prepared the ground for t he

development of a system of activity-based costing, which wil l

enable much better measurement and management of cost-effec­

tiveness and which will enable the various divisions w it hin the

University to conclude agreements on service de livery.

While intend ing to contain student fees increases by improved

cost-effectiveness, St e ll enbosch University also has to set its fees so

as to be able to offer quality education to a growing student

demand - and all wh il st having to cope w ith decl ining state funds.

Addit ional weight is also given to so-called third money-stream

income, that is, income besides student fees and state allocat ions.

Stellenbosch Un iversity's growing success as a research university is

beginning to bear fruit and contract r-esearch is a strong-growing

source of income. These funds may, however, only be used for- the

research project concer-ned and as such is not ava il able fo r the

financing of undergraduate tuition or support services. To a large

extent postgraduate studies, however, are dependent on bursary

funds that are linked to these projects. One of the new initiatives is

the more active marketing of the University's intellectual capital,

which is its most important asset.

Report of t he Manager: Inn ovation

Commercialisation

In 2003, the commerciali sation of the expertise base of the

University was set on a new course by means of a commercialisa­

tion plan that placed emphasis on supporting t hese activities. The

former Office for Inte ll ectual Property was renamed the lnnovUS

Division, both to aid the establi shment of an awareness of innova­tion at SU, and to emphasise that it is the process of innovation that

is being promoted, and not merely the protection of intel lectual

property (IP). New ideas shou ld be carried through to their manu­

facture and marketing and shou ld lead to the establi shment of a

viable industry so t hat the new products or processes may break

into the market and make a difference to the economy and to

people's lives.

A formal process was developed whereby the disclosure of new

business ideas and the development of a business plan may

progr-ess in an organised manner to their presentation to the board

of Unistel Group Hold ings (UG H), who make the decis ion to form

a spin-off company and also evaluate the degree of risk related to

the investment. In order to reali se th is new approach, the "Policy on

Intellectual Property" was amended to become the "Poli cy on the

Innovation

Prof Liesbeth Botha, Manager: Innovation

Exploitation of Intellectual Property". After exhaustive consultation,

the new policy was approved at the Counc il meeting in December.

It is more user-friendly, attempts to clarify the concepts contained

in the po li cy and t ries to highlight the fact that the copyright to

works of literature and art and musical compositions should be

returned to the authors, artists and composers. In this way, the for­

mula used to distribute the University's income from IP becomes

mor-e advantageous to the inventor.

Despite these developments, the number of disclosures of new

technology and business ideas is still relatively low for a University

whose research budget is similar in size to its main budget. It wou ld

seem, t herefore, that research remains contract or project orientat­

ed, and that a strong culture of commercialisation has yet to devel­

op. The number of disclosures of new inventions was 19, compared

w ith 19 in 2003 and 15 in 2002, and the number of business ideas

that progressed to the presentation of business plans to the UGH

was one, compared w ith two and four in 2003 and 2002 respec­

t ively.The number of concluded li censing agreements remained

constant at three per year from 2002 to 2004. Renewed attempts

at the establishment of a culture of commerciali sation will have to

be made in 2005.The intended strategy is to focus on success sto­

ries and on the need for lnnovUS to add more value during the

incubation of new projects.

The nearly established spin-off compan ies, such as Sunspace, Unistel

Medical Laboratories and AquaNutro, are still perform ing well. The

USB-Ed company, through which our Business School's manage­

ment tra ining is commercialised in the form of short programmes,

underwent large-scale changes in 2004, w ith the development of a

new strategy and the appointment of a new managing director,

Denise Holloway. The financ ial management of the company has

27

I I

Senate's Report to Council continued Innovation

been placed on a healthier foundation and is better positioned to

grow in 2005. The consolidation of the presentation of short cours­

es by the rest of SU did not take place in 2004, due to the higher

priority assigned to other SU Business Plan projects, but the prepa­

ration was completed. The same applies to the Faculty of Health

Sciences' anticipated company for handling substance trials and

other commercial activities.

AFRICAN SUN MeDIA, our very own e lectronic publishing com­

pany, is becoming increasingly successful. After two and a half years

of hard work, it is beginning to operate at a profit for both internal

and external clients, and the value t hat it adds to t he University's

image of quality is equally important. Our internal publications and

class notes now display a genuinely professional appearance, and

SU's copyright risks are being minimised.

In order to make funds avai lable specifical ly for investment in inno­

vation projects, it was decided in 2004 t hat one of the 12 percent­

age points of the surcharge on t hird money-stream income should

be set apart for t his purpose and deposited in an SU Innovation

Fund. The investment of t hese funds wi ll commence in 2005 .

e-Campus

The focus of e-Campus activities in 2004 was the implementation

of t he Oracle package fot· Human Resout-ces Management and

Payrol l (Oracle HR&P).This project was assigned its own identity,

namely sun-e-HR. and was the first of its kind on campus. The sys­

tem constitutes a solid base on w hich the Human Resources

Division can renew and reposition itself as less administrative and

therefore more supportive of managers throughout the University.

This also gives ownership of the data to each individual and enables

managers to generate management reports more conveniently, at

the click of a mouse. The system was activated on 2 March 2005

28

without any disruption in service, and positive feedback is being

received from various user groups.

The e-Learning project attained maturity, and 2004 was devoted to

the consolidation of the presentation of modules on WebCT and

to innovative projects. The decision to upgrade to the WebCTVista

system in 2005 was based on the expanded functional ity and scale

offered by th is system. So doing, however, SU has further commit­

ted itself to the WebCT techno logy, while t he risks re lating to sus­

tainable affordability (together with Oracle HR&P) remain real.

The student portal project expanded in 2004 and is increasingly

being used to provide a better cl ient service to students. The e ­

Registration project for the Tygerberg Campus was finali sed and

de ployed successfully at the start of 2005. Further renewal of the

student and financial systems is foreseen for 2005. By making use of

kiosks and wireless hot spots technology, pilot projects for the

expansion of the computer capacity for students on campus com­

menced in 2004.

Technological innovation on campus (internal) and commerciali sa­

tion of our expertise base (external) are progressing, but not with­

out the expected teething problems and resistance to change. A

formal process of change management, entitled People Change

Enablement (PCE), was established by t he Human Resources

Division on campus in 2004 with the assistance of ABSA consult­

ants. This process al ready started being successful during the sun-e­HR project. The PCE process wil l be continued in 2005 for var ious

innovative projects.

I close the Senate's Report with a special word of t hanks and

appreciation to Profs Botman, Claassen, Smith, Calitz and Botha for

t hei r role in t he Management Team, t heir support and their dedica­

tion.

Prof Chris Brink Chairperson of Senate

Report of the Institutional Forum

The Institutional Forum (IF) is an advisory body that is constituted

in terms of the Higher Education Act (Section 31 (I) of Act I 0 I of

1997) and advises the University Council on poli cy matters, includ­

ing the execution of the provisions of the above-mentioned act

and national policy on higher education.

The activities of the IF are directed primari ly through its three task

groups - the task groups on Diversity and Equity. on Institutional

Planning and on Institutional Culture. The task groups are comple­

mented by ad hoc groups when necessary The mandate of the task

groups is to investigate as incisively as possible those matters

assigned to them. They then report back to the IF and advise it so

that well-considered advice can be given to Council.

Composit ion

The Institutional Forum consists of 28 members, seven from each

of the four sectors, which are comprised as follows:

Governance sector: Two members of Council e lected by

Council , three members of Senate elected by Senate, one

member of Management appointed by Management, and

the Registt·ar or a person appointed by the Registrat~

Staff sector: Two members e lected from theit· own t·anks

by the permanent non-professorial academic staff. one

member appointed from their own ranks by the academic

support services, two members elected from their own

ranks by t·ecognised trade unions, and two members e lec­

ted from their own ranks by the administrative support

services.

Student sector: Two members of the Students'

Representative Council elected by the Students'

Representative Council, two members of the Head

Students' Committee appointed by the Head Students'

Committee, one member appointed by the student

societies, and two members of the Academic Affairs

Council appointed by the Academic Affairs Council.

Community sector: Two members of the Convocation

appointed by the President of the Convocation, and five

people appointed from their own ranks by the representa­

tive bodies of civi l society

Activities

General

During 2004, t he IF built on the process of systematising its

method of operation. Certain stumbling blocks remain, particularly

in the li aison with the University Management, but these will be

sorted out in 2005.The expectation is that this process will be

finalised during 2005, and that the position of the IF as a forum

advising the University Council w ill be properly established.

In the year under review, the IF advised the University Council on

several aspects by providing it w ith formal reports.

SU policy on people with disabilities

The IF was pleased to be able to contribute to such an important

document Several amendments were suggested and noted by

Mr Le Raux Burrows, Chairperson of the Institutional Forum

Council, with the necessary adjustments to the policy being includ­

ed in the fina l vers ion.

Policy on placement in residences

Although, for various administrative reasons, no comment was

made on the po li cy for placement in t·esidences itself during 2004,

the IF did, in fact, inform Council of its concerns about several

aspects of the policy

SU policy on community interaction

The general impression of this document was that sections of it

were vague. The IF engaged Council in dialogue on those points of

advice supplied by the IF that were not accepted by Council, the

chief aspect of which was the IF's proposal that the broad spec­

trum of community interaction be categorised into at least two

hierarchical leve ls.

Reappointment of the Vice-Rector (Operations)

In terms of the regulations governing the appointment of a vice­

chancellor and vice-rectors, the IF was required to voice its opinion

on procedural aspects and the capacity for reappointment of the

incumbent Vice-Rector (Operations).This request was fulfilled.

SU policy on the exploitation of intellectual property

The proposed policy was discussed in depth, and was accepted as

being well reasoned and we ll composed. However, concern was

expressed at the fact that the policy had been openly discussed in

29

I

Report of the In stit ut ional Forum c on t inu e d

all the facult ies. Several amendments were proposed, some of

wh ich were accepted by Council.

In conclusion

In 2004, the IF built on the notion that it should not be employed .

for obtaining speedy approval, shorn of all criticism, but that it

should rather be regarded as a forum where issues are discussed

thoroughly. In order to achieve this goal, it is essential that issues be

referred to the IF timeously, thereby ensuring that internal mecha­

nisms, based on previously compiled schedules, can be maintained.

These issues, as well as others, are then discussed with the

University Management prior to every IF meeting. Once a year, the

IF engages the Executive Committee of the University Council in

direct dialogue on administrative and other issues.

In genet·al, the IF participates actively in discussions on all issues

affecting Stellenbosch Un iversity, and maintains an open invitation

to anyone to bring any matter concerning policy, culture or plan­

ning at the University to its attention for discussion.

The IF is satisfied that it made a meaningful contribution to the

activities of the University during 2004, judging in particular by the

Council's positive reaction to several aspects of the advice given to

Council.

Mr Le Roux Burrows

Chairperson of the Institutional Forum

Report on Inte rn al Administrative and Operational Structures ~and Control Measures

In accordance with the participatory management approach, and

takir\g into account the King II principles, an attempt has consistent­

ly be~n made to reach decisions in an accountable and transparent

manner. Both statutory and non-statutory structures and proce­

dures ~re utilised in the process.

•. 1:

Thus, for example, the University has remained represented in an

appropriate manner and at appropriate levels in the provident

fund, and broad participation in matters such as staff health is

assured by means of a committee chaired by the Senior Director:

Human Resources. Compliance with the requirements of legislation

such as the Employment Equity Act is meticulously managed, and

staff associations are engaged when necessary.

The strong insistence by staff associations that they be earlier and

more extensively involved in matters such as the adjustment of

remuneration wi ll be afforded serious attention in 200S.The

integrity of appointments and promotion processes are managed

by Human Resources through the provision of appropriate advice

to the affected structures and functionaries, giving due considera­

tion to institutional priorities such as accelerated diversification and

the requirements of labour law. Care is taken to ensure that rec­

ommendations and decisions are made at the correct levels and in accot·dance with approved procedures of delegation.

7 I ~---

30

Prof Julian Smith Vice-Rector (Operations)

Report on Risk Assessment and Management

Ste ll enbosch University is committed to a comprehensive and

structured risk management programme with the vision of being

able to identify and successfu lly manage institutional risks at all

times in order to ensure corporate sustainability. A structured

process of risk reporting is fo llowed in accordance with the

Department of Education's guidelines for annual reporting by insti­

tutions of higher education.

In 2004, appropriate refinement was pursued in respect of the

structures and approved delegation procedures finalised in the pre­

vious year under review. This refinement was accomplished through

a highly active interaction between the Risk Management

Committee on the one hand, and the Audit Committee and the

Rector on the other. Risk management has increasingly become a

priority, as reflected in the changing of the name of the Audit

Committee to the Audit and Risk Committee. It has subsequently

become established practice for the Rector to provide a compre­

hensive report at evet-y meeting. Regular reporting on risk manage­

ment to the Rector's Management Team has similarly been for­

malised.

Several high-level risks were managed during the year under

review, including image risks (e.g. the disciplinary action relating to

staff at Bellville Park Campus and the awarding of an honorary

doctorate to the late Bram Fischer); financial risks (e.g. the diminish­

ment of the spending base); strategic risks (e.g. slow progress with

diversification); et cetera.

Training in relation to risk management was continued, and sensiti­

s;ation of the campus community was undertaken by means of

communication and information sessions. Because the overall insti­

tutional management of risks is still relatively new, further adjust­

ments are expected with a view to establishing a highly effective

system.

7 Prof Julian Smith

Vice-Rectot- (Operations)

Facu lty Reports

The purpose of existence of Stellenbosch University is to create and sustain an environment in which knowledge can be discovered, shared and applied to the benefit of the community. This process should take place in a way that shows commitment to the universi­tarian ideal of excellence in scientific practice.

Academic focus is essential to the success of these primary processes and, through outstanding tuition and research, Stellenbosch University (SU) has already attained high regard in the international academic community.

The University houses ten facult ies, namely Economic and Management Sciences, Health Sciences, Engineering, Mil itary Science, Agricultural and Forestry Sciences, Arts, Science, Education,

Agr icu ltura l and Forestry Sc iences

Prof Leopoldt van Huyssteen, Dean of the Faculty of Agricultural and Forestry Sciences

The Faculty of Agricultural and Forestry Sciences pre-eminently

adds value across a broad spectrum and, therefore, its influence

extends we ll beyond the students on campus.

We add value to:

32

the country, through appropriate tra in ing and cutting-edge t·esearch, and through the provision of the latest technology in the production of safe and affordable food and fibre; the economy, by operating as the leading knowledge part­ner with high-level expertise, which is well distributed

Law and Theology. Detailed infot·mation on the undergraduate and postgraduate tuition pmgrammes offet·ed by these faculties, as well as more information on the faculties themselves, may be obtained on the University website at www.sun.ac.za.

The ten faculties are housed on four campuses. Besides the main

campus in Stellenbosch, there are also the Tygerberg campus

(Health Sciences), Bellvi lle Park Campus (The University of

Stellenbosch Business School and the School of Public Management

and Planning) and the Saldanha campus for Military Science.

Details of the highlights of the various faculties in 2004 follow

below.

throughout the various value chains, agri-businesses, the forestry industry and related t imber-processing industries; the environment, through having our curricula and research place the emphasis on sensitive utilisation of the environ­ment, biodiversity and conservat ion management; and people, because our gt·aduates possess the necessary knowledge, skills, entt·epreneurial abilities and convictions to function optimally, be it independently or in a collective context.

The history books were rewritten in 2004 when I I 3 students at

Elsen burg Agricultural College registered at SU for the first time for

a new BAgric degree, which was introduced in accordance with an

agreement of cooperation with the Western Cape Department of

Agriculture .

The number of students in the faculty increased by about 20% in

2004 (9% excluding the Elsenburg students), on top of the 7%

growth in numbers in 2003. Of the roughly 80 international stu­

dents in the faculty, 67 were from 17 African countt·ies. Almost 70%

of these 6 7 students were postgraduate.

Currently; 41 % of our students are female, and I 6,7% are from the

designated groups (black).The fact that the number of postgradu­

ate students has increased to 32% confirms the notion that the fac­ulty is strongly research-oriented.

The faculty proved itself a leadet· in Africa in 2004 when 14

American and 25 African agriculture deans met in Stellenbosch in

an effort to combine forces in increasing the role of universities in

the fight against famine and poverty in Southern Africa.

Mof<jng Markets Motter, a strategic marketing workshop specifically

aimed at the Southern African agri-business sector, was held in con­

junction with Cornell University of America for the third successive

year. It was attended by representatives from I 2 African countries,

and plays a defining role in the expansion of local capacity and the

empowerment of inexperienced producers.

In conjunction with USAID, ASNAPP (Agri-business for Sustainable

Natural African Plant Products) continues to ensure exceptional

benefits through science for previously disadvantaged communities,

both locally and in the rest of Africa. A dedicated team, connected

to the Department of Agronomy and based at Welgevallen, is

behind the success of ASNAPP.

In the year under review, the faculty once again rendered excellent

and relevant research outputs in the form of publications and

papers.

The following examples of the exchange of knowledge and co­operation are evidence of our focus on internationalisation:

Prof Karen Theron (Horticultural Science) was appointed as chairperson of a task group of the Inter-national Society for Horticultural Science for a study on the cultivation of pears. With the aid of a bursary from the Skye Foundation, a PhD student in Food Science, Maricel Keyser, attended the Anaerobic Digestion Conference in Canada. Two MSc students in Animal Sciences, Karin Koep and Sune Botha, did poster presentations at the International Congress for Animal Sciences and Technology in Finland. Prof Michael Samways (Entomology) was appointed as a member of council of the Xerces Society (this is the largest non-profit organisation in the world concerned with the conservation of invertebrates and their environments). Five delegates of this department delivered lectures at the International Congress of Entomology in England.

Dr Danie Brink (Genetics) led a technology and trade delegation of the South African government to Spain and France. Prof Gustav Holz (Plant Pathology) and Prof Melane Viviers (Viticulture and Oenology) attended the International Botrytis Symposium in Turkey.

Staff and students of the faculty received various awards. Ndivhuwo Netshilaphala (Conservation Ecology) and her study supervisor, Prof Sue Milton, received THRIP awards. Prof Milton was also awarded the Molteno gold medal of the Cape Tercentenary Foundation for her exceptional con­tr-ibution to nature conservation and the rehabilitation of natural flora in the Karoo Renosterveld. Prof Alison Leslie (Conser-vation Ecology) won the coveted inter-national Eorthwotch award for Researcher of the Year for the resear-ch pr-oject on crocodiles in the Okavango. Dr- Ken Pringle (Entomology) received the resear-ch award of the deciduous fruit industry. Prof Gustav Holz (Plant Pathology) won the Wynand Malan floating trophy for- his contribution, which spans many year-s, to the table grape industry. ProfTr-evor- Br-itz (Food Science), Prof Louw Hoffman (Animal Sciences) and Dampies Kok and Ger-t September (both based at Mariendahl experimental far-m) received Rector's Awards for Excellence in Teaching, Research and Ser-vice respectively.

Agricultural and Forestry Sciences

33

Faculty Reports Continued

Prof Hennie Kotze, Dean of the Faculty of Arts

Arts

Les Chapman, a human resout-ces director at computer giant IBM, was known to state on occasion that:

A liberal arts education con develop individuals who con think independently, to ask significant questions, to analyze, weigh ideas, draw logical conclusions, put forth sound arguments and be open to the concept of life-long learning. These ore precisely the skills business and industry ore looking for. The days of the one-dimensional person ore over.

In 2004, the Faculty of Arts maintained its attempt to produce pre­cisely the type of multi -dimensional graduates advocated by Chapman. The guiding principle in th is endeavour was the faculty's

34

Strategic Framework, which was fina li sed during the previous year. All 18 departments of the facu lty compiled their own departmen­tal business plans, in order to ass ist in the realisation of the 20 aims and 7 1 action plans of the Strategic Framework at the onset of 2004.This planning and enthusiasm yie lded its first dividends in 2004.

Nearly 200 special students and 2 757 undergraduate students reg­

istet-ed at the faculty in 2004, compared with the 2 362 in 2002.

This represents an increase of roughly 17% over the past two

years. Recruitment figures clearly indicate that this growth trend wi ll be maintained in 2005. At the same time, the number of lecturers

has remained constant. This increase in the student-lecturer ratio is

an important factor in more cost-effective employment of staff, as well as in the 'profitability' of the faculty.

Postgt-aduate registrations at the faculty (currently I 388, or 32%)

have remained constant, and consequently an ino-ease in the num­

ber of postgt-aduate students is an important focal area of the

Strategic Framework. The mu lt i-faceted nature of the facu lty is evi­

dent from the demograph ic profi le of its student body. Roughly 37% of our postgt-aduate students at-e from the previously disad­

vantaged groups, whi le at undet-gt-aduate level this figure has

increased fro m 19% in 2003 to 21% in 2004. In addit ion to these

figut-es, 45% of the students at-e eithet- Engli sh or speaket'S of lan­

guages othet' than Afrikaans.

To return to the quote of the IBM director above, there at-e prom­

is ing signs that t he business and industrial environment in South Africa is increasingly seeking graduates who are able to meet the

demands of the developing knowledge economy in South and

Southern Africa, despite the fact that it is several years behind the markets of the First World. Recent sut-veys have shown that Arts

graduates are tendering strong competition to graduates of other facu lties for offers of employment.

In the research arena, the faculty launched a project in 2004 aimed at presenting a financial incentive to those lecturers who had a sec­ond research article approved in a single year, or who published an article after a period of leave. While the official statistics are not yet avail able, t here is every indication that, with this initiative, the faculty has ach ieved an increase in its already considerable output. By the end of 2004, the facu lty was host to 34 researchers recognised by the National Research Foundation.These researchers represent all three disciplines in the faculty; namely Languages, Arts and Social Sciences.

Wh ile the existing research centres achieved new highs in 2004, two new centres were established.

The Centre for Language and Speech Technology will focus on undertaking research and development projects in the field of language and speech technology with the emphasis on languages used in a South African and African context. The Centre for Chinese Studies is the only one of its kind in Southern Aft-ica. Against a backdrop of the imminent "South Pacific Century" and the bil ateral agreements between the governments of South Africa and China (and as t-eflected by research and tu ition initiatives in the faculty), a decis ion has been made to increase our own capacity to study the politics, economy and culture of the societies of t hat region.

Besides tuition and reseat-ch, a key activity of the University, and one which is frequently neglected, is interaction with the commun i­ty In 2004, the faculty acted decis ively in establishing a Committee for Community lnteraction.This committee conducted a survey and compiled a comprehensive li st of current community interaction projects in the facu lty

With the Strategic Framework and departmental business plans established and in accordance with the SU Vis ion for 2012, the fac­ulty is we ll on its way to achieving its targets. Therefore, we are confidently anticipating the chall enges of 2005.

Economic and Management Sciences

Economic and Management Sc iences

Economic and Management Sciences is the faculty of the University with the most students. In the year under review, 6 073 students (more than a quarter of all the University's students) studied at this faculty.

The faculty's ten new consolidated undergraduate programmes were fit-st offered at the first-year level in 2004, with the subse­quent years of study to be phased in annually Within the new range of programmes, a further development took place in 2004, namely the development of a business ethics module for the BAcc programme. This is a second-year BAcc module, presented by the

Prof Johann de Villiers, Dean of the Faculty of Economic and 'v'r'nr,·op,·npm Sciences

35

I

Faculty Reports Continued

Department of Philosophy. It has been designed to provide not only a foundation of general and specific ethical knowledge, but also, in later years of study, background for the study of the profes­sional code of conduct of the South African Institute of Chartered Accountants (SAICA).The faculty's programmes in Actuarial Science also received greater recognition in 2004 through the expansion of the existing exemption agreement with the Faculty and Institute of Actuaries to for the first time include exemption for three subjects in the advanced 300-series.

Graduates of the faculty performed excellently in external profes­sional examinations, matching the achievements of previous years. In the qualifying examination (Part I) of SAICA conducted in March 2004, 96% of the students who graduated from this faculty in 2003 passed the examination (in contrast with a general pass rate of 46%). For students who obtained the BAcc Honours degree, the pass rate was 99%. Recognition was also given in December 2004 to an outstanding graduate by the awarding of the University's Chancel lot-'s Medal to Gideon du Rand, who obtained a BAcc and a BCommHons in Economics (both cum laude) at th is faculty.

In 2004, the Stellenbosch branch of the AIESEC student organisa­tion, headed by Dries Mellet and Alana Mat-ais, presented the fifth Brightest Young Minds confet-ence fot- a hundred top students fmm all over the countt-y. The conference started in Cape Town and the discussions continued during a journey by train to Pretoria. The conference concluded in Pretoria with the Minister of Finance, Mr Trevor Manuel, and the first lady, Ms Zanele Mbeki, among the par­tic ipants.

It is important to the faculty to provide tuition and produce research outputs that meet international standards. International liaising is therefore essential and several international academics vis­ited the faculty in 2004. Highlights were the visits of Prof Lyman W

Education

36

Porter, who is regarded as the trail-blazing researcher in organisa­tional psychology, and Prof CR Rao, one of the pioneers of modern statistics, with a host of well-known results to his name. The con­gress of the International Conference on Contemporary Management was presented in Stellenbosch by the Department of Industrial Psychology in 2004.Together with a workshop on repeated obser­vation analyses and longitudinal studies presented by Prof Mike Kenward of the Centre for Statistical Consultation, this congress contributed to the extension of the faculty's international liaising.

The University of Stellenbosch Business School (USB) was selected by the Aspen Institute in Washington DC to participate in their international Business and Society Teaching Innovation Program. This initiative is directed at the development of management training that will assist in preparing future business leaders to become responsible corporate citizens and conduct sustainable, value-based business. The USB was the only business school in Africa, and one of only eleven in the wodd, to receive this honour.

Through the application of subject expertise, the centres and bureaux in the faculty are maintaining theit- substantial contribution as role players in South African society. In 2004, the Bureau for Economic Research (BER) celebrated its sixtieth anniversary by hosting a conference for top business people, government officials and academics, where the Minister of Finance, Mr Trevor Manuel, was the keynote speaker. The BER conducts macro-economic fore­casts and surveys on economic conditions in South Africa, and then makes this data available to clients and the general public. The most important surveys for which the BER has gained recognition, are qualitative surveys of business conditions in the South African economy, surveys of consumer and business confidence and a sur­vey on inflation expectations conducted specifically for the Reserve Bank, the results of which play an important ro le in the formu lation of monetary policy in South Africa.

Education

Allowing for national education development needs and education

policy, as well as the current demand for teachers and teacher sup­

ply models, the Faculty of Education selected strategic projects for

2004 that would bring the facultY's activities in line with the strate­

gic priorities of the University w ith regards to tuition, research and

community interaction.

The faculty has accepted the chall enge to undertake research proj­

ects that would make an important contribution to the fu rther

development of the South African education system. Various

research projects conducted in collaboration with local and over­

seas univers it ies resulted, among other things, in visits from noted

overseas researchers. The research output of the faculty increased

in 2004, as it had done in previous years.

The goal with the academic offering, which is planned by taking into

account national education training needs, is to play a meaningful

role in the provision of appropriate pre-service and in-service

learning opportunities for prospective and practising teachers

respectively. Due to a sharp increase in the numbet-s of undergrad­

uate students during the last five years, the faculty has become an

important provider of newly qualified teachers for all education

phases.

In order to give practising teachers the opportun ity fot- relevant

postgraduate stud ies, the residential BEdHons programme is also

offered, as of 2004, by means of se lf-study packages, which are sup­

plemented by telematic contact sessions and a continuous tutor

system, to teachers who are unable to take the residential pro­

gramme. Since its inception, this new telematic presentation model

has been very popular and the successes of students in th is pro­

gramme very good.

During the last number of years, a solid partnersh ip has been

establi shed with the Western Cape Education Department

(WCED). Because of this partnership, it has been possible annually,

with the aid of departmental bursaries, for a group of practising

teachers to study at the faculty. The faculty is also contracted by the

WCED for the in-service training of teachers. Partnerships have

also been established with the education departments of Gabon

and Egypt to present formal training programmes for their teachers.

To ensure that out- programmes remain both relevant and highly

attractive to prospective students, programme advisory committees

were estab li shed in 2004.These committees consist of lecturers

(including lecturers from other universities), school principals and

WCED representatives and annually evaluate the efficacy and rele­

vance of every one of the faculty's programmes in view of continu­

ous adaptations based on the demands of educational practice.

The faculty's community interaction initiatives, which take the form

of short courses, sem inars and development programmes, are

aimed at making a positive difference in the education system.

Prof Tom Park, Dean of the Faculty of Education

Several community interaction projects resulted from the integra­

tion of the service-leaming model and the research projects of the

faculty. In addition to the support fo r teachet-s and pupils in a vari­

ety of learning areas in the new school curricu lum, educational psy­

chology services were also made available by t he Unit for

Educational Psychology, providing assistance in dealing with learning

problems, career choices, school preparedness and motor and/or

neurological problems. Crisis intervention programmes and thera­

peutic services to commun ities were also offered, as we ll as a com­

munity-based programme for non-school-going ch il dren/youths

(street chi ld ren). Furthermore, the faculty was involved in develop­

ment work in farm schools, teaching communication skills to per­

sons with hearing disabilities, practical support with read ing, cogni­

tive control therapy with learners on the foetal alcohol spectrum,

the advancement of positive management of leisure time th rough

participation in sport and youth clubs, and the development and

exploitation of cultural tourism potential in previously disadvan­

taged communities.

Staff of the Environmental Education Programme was involved in a

water quality programme for schools, which is endorsed and fund­

ed by the Drakenstein Municipality and Boland District Council.

Several schools from both rural and urban regions in the Berg

River catchment area participated in this project.

The Institute for Mathematics and Science Teaching (IMSTUS),

which has been fully integrated with the Faculty of Education since

2004, offers a wide variety of formal programmes and infot-mal in­

service training courses centred on the pmmotion of mathematics

and science education in all school phases. The institute was also

t-esponsible for presenting the Expo for Young Scientists and the

Sci MathUS project, which prepares learners fmm disadvantaged

backgrounds fo r higher education. From February 2004, the

37

Facu lty Reports continued

Prof Arnold Schoonwinkel, Dean of the Faculty of Engineering

Biokinetics Centre of the Depar-tment of Sport Science has been

managed in cooperation w it h the Medi-Ciin ic Pr-ivate Hospital

Group. As a result of this agr-eement, the centre, which is now

regarded as one of the best-equipped biokinetics training fac ilities

in the countr-y, accommodates more than 200 ind ividual pro­

gr-ammes every week, particularly progr-ammes concerning the fina l

phases of orthopaedic and cardiac r-ehabilitation. The Depar-tment

of Sport Science was also appointed by the South African Sport

Commission as the official preparation and testing centre for the

South African team wh ich participated in the 2004 Paralympic

Games in Athens.

Engineering

38

Engineering

In 2004, the Faculty of Engineering commemorated its sixtieth

anniversary. This milestone was celebrated on 8 December with a

gala dinner in t he Stellenbosch town hall. Many alumni came from

far and wide to share this special occasion with their contempo­

raries and the staff of the faculty. During the function, honorary

membership cer-tificates of the facu lty were awarded to five per­

sons in recognition of their valued service. They are three former

deans, Profs Roux de Villiers, Christo Vi lj oen and PW van derWalt,

as well as Prof Robbie Reinecke and John Gosling. The guest speak­

er was Brian Bruce, group chief executive of Murray & Roberts Ltd,

who received an honorary doctorate from t he University the next

day. The degree of DEng, honoris causa, was awarded to him for his

exemplary career, his leadership and his se lfl ess dedication.

The Dean's Award for Outstanding Achievement is not awarded

annually, but only in exceptional cases to students who have per­

formed excellently at both undergraduate and postgraduate level.

At the end of 2004, this prestigious award was bestowed on Dr

Marlie du Rand, who obtained her doctorate in December with

the dissertation The Development of High Pressure Thermodynamic Models. During her academ ic career, Marlie received several awards

and bu rsar-ies and moreover also earned national colours for

underwater- hockey twice.

Prof Detlev Kroger, an international ly regarded A-rated researcher,

was awarded a DEng degree. Th is degree is awar-ded to candidates

who are able to show that they have conducted advanced r-esearch

over a number of years and who have already published original

works constituting a significant contribution to the enrichment of

knowledge of the engineering sciences.

The Faculty of Engineering is the largest earner of research funding

at the University. This funding all but doubles the facu lty's income

from tuition fees and the state subsidy. The past year has also seen

ino"eased success in the so li citation of international funding.

Considerable work has been done throughout the year to improve

the faculty's undergraduate and postgraduate pmgrammes.

Thomugh preparation has been done for the common first,year

pmgramme commencing in 2005.This newly structured pm­

gt,amme exposes first-year students to all the different fields of

study in engineering, so that, as a result, they are able to make bet­

ter- informed decisions about their futures. From the second yeac

they then specialise in their preferred field. The groundwork has

been done for the presentation of parallel medium classes for first­

year students from 2005. Postgraduate programmes have been

streamlined by reducing the number of master's programmes from

four to two. A new model for postgraduate studies has been insti­

tuted. With modifications to the registration period and study fees,

th is new postgraduate model shou ld encourage students to com­

plete their studies more quickly, thereby inct,easing the through-flow

rate .

Emphasis was placed once again on student t"eCI"uitment In addition

to continuous school visits and participation in cat,eet" exhibitions,

as we ll as the faculty's popular annual Open Day and Winter Week, a

successful Women in Engineering afternoon was presented for the

second successive yeac Grade I I and 12 git"ls taking mathematics

and science on the higher grade were invited to attend the event,

in an attempt to pique their interest in engineering. They were

addressed by a former engineering student who runs her own COn­

sultancy, a female lecturet" and female postgraduate students. A new

initiative, A day in the life of an Engineer, was launched. Top achiev­

ers, particu larly from previously disadvantaged schools, visited the

faculty's well-equipped laboratot"ies and operations to get a taste of

the work of an engineec in the hope of encouraging them to study

engineet"ing.

In future, Engineering wants to attract more high-calibre postgradu­

ate students. A research bmchure was comp il ed as part of this

strategy, and will be used to exhibit the research activities of the

facu lty. Fot- the first time advertisements to recruit postgraduate

students were placed in two national newspapers and the

favout"able response was encouraging.

In the six decades since its establishment, the Faculty of Engineering

has awat"ded over 7 000 degt"e~s. The high ciilibre of these degrees

was once again confi t"med by the accreditation for a fu rther five

years that they received from the Engineering Council of South

Africa (ECSA) .This accreditation means that degrees in engineering

obtained at Stellenbosch Univet-sity are recognised in the. most

important overseas countries and that Matie engineet"S are wat-mly

received all over the world.

Health Sc iences

The management of the Faculty of Health Sciences (FHS) devoted a large part of the year to financial management and planning, includ ing measures to accommodate a significant budget shot"tfall, and to the compilation of an expanded Business Plan as part of Stellenbosch Un iversity's central business plan process.

The provisional amount awat"ded to the FHS for 2005 was essen­tially the same as for 2004. Howevec when salary increases are taken into account, as we ll as the assumption that staff numbers will remain the same, a budget deficit of 6 - 7% for 2005 is rea li sed. In rand terms, th is deficit translates into rough ly R3,5 million, which will probably increase to nearly R5 million due to the inevitably increasing costs related to the pathology disciplines. Conscious attempts at meaningful savings on, among other th ings, staffing expenses, are therefore unavoidable in 2005.

Health Sciences

39

Facu lty Reports Continued

Prof Wynand van der Merwe, Dean of the Faculty of Health Sciences

The point of departure of the Business Plan was the (re)position ing of the faculty in a greater leadership role in the changing environ­ment in which we function . The aim of the pmjects identified by the plan was the realisation of this ideal through implementation. Supplemented by the inputs of an advisory group of the Rector. the plan was approved by the University and makes provision for. among other things, a series of strategic projects, as well as the restructuring of the FHS on management and departmental levels. A process of negotiation with departments will commence early in 2005, before the plan is submitted to the Faculty Board for approva l. The expected time of completion of the planning phase is mid-2005.

As part of the restructuring of higher education, the government decided that Stellenbosch University and the University of Cape Town would no longer offer programmes in Nursing Science.

Law

40

Consequently, the last intake of new BCur first-year students occurred in 2004. A series of new programmes focusing on the specialised postgraduate training of nurses has been developed, and is entirely unaffected by the government's decision. The success of these programmes even resulted in the opening of a 'classroom' in London during 2004.

Excellent research in the FHS was rewarded in 2004 by substantial research grants to projects in the faculty. The most important of these were the grants awarded to the Centre for tuberculosis research. In conjunction with the national Department of Science and Technology the Nat ional Research Foundation (NRF) has awarded a Centre for Excellence in tuberculosis research to Prof Paul van Heiden, co-director of the centre. The effect of this grant is that Prof Van Heiden wil l receive effective funding of roughly R4 million a year for the next ten years. The centre's director of clinical studies, Prof Nulda Beyers, received R28 million in turn from the Bi ll and Melinda Gates Foundation in aid of the South African arm of a r-esearch project known as Zamstar~ This project is being conducted in collaboration with Zambia and the London School of Hygiene and Tropical Medicine.

Another of our- bio-medical researchers, Prof Hanlie Moolrnan­Smook, received this organisation's President's medal for researchers under 35. Her work on the genetic causes of her-edi­tary heart diseases has received recognition both nationally and internationally. and has also been rewarded with a Well come Trust senior research fe llowship.

The experimental an imal research unit of the FHS received provi­sional international accreditation in the course of the year, fo llowing a vis it by officials of the international Assessment and Accreditation Association for Laboratory Animal Centres in the USA. This unit was the first in South Africa to apply for international accreditation.

Continuous efforts are being made to diversify the facu lty's student profile, and programmes and projects in this regard are still bearing

fruit.The GESOG programme (Health Opportunities Development Programme), which is presented annually as a winter school at the Tygerberg Campus, once again performed an important role in the recruitment of black students in particular. The success of t hese students is assisted by the faculty's own tutor/mentor programmes, which provide academic support to students, thereby facilitati ng their academic development.

In light of the re-al location of state funding, the faculty has increas­ingly begun to sh ift its focus to cooperation agreements with the private sector. The donation of R I, I million to the faculty by the Medi-Ciin ic Corporation marked the establishment of a partner­ship between the two institutions. Said partnership is aimed at ensuring that the faculty continues to train healthcare workers to a high standard, particularly at postgraduate level. The faculty has also concluded agreements with Afrox and Netcare.

During the year, Ukwanda, which was established three years ago, has expanded considerably in terms of new staff and partnerships. At present. undergt-aduate students at-e exposed to at least two weeks of rural rotations, while specialist rotations in a number of disciplines give seniot- students the oppot-tunity to undergo training in rut-al areas.

Law

In 2003 a high number of lecturers in law achieved the coveted

NRF rating status. As was to be expected, these exceptiona lly

competent legal researchers did not t-est on thei t- laurels, but pro­

duced research outputs of a high calibre again th is year. Most of

the professors in law at-e the authors of standard legal works which

frequently receive recognition in the judgments of the most senior

courts of South Africa.

Many of the senior lecturers are party to extensive international

academic networks, and regularly contribute to national and inter­

national law conferences. Research sabbaticals are often spent at

overseas legal facu lties, and this is due largely to the extensive and

deta iled law co ll ections in the possession of these overseas un iver­sities. The faculty is freq uently visited by British, Belgian, Dutch and

German professors, who spend shorter or longer periods in co ll ab­

oration with their Stellenbosch colleagues on legal projects. The fac­

ulty plans to host a number of international conferences in

Stellenbosch in 2005.

Tuition is in a similarly sound state . At an undergraduate level, the

three-year BA (Law) and BComm (with Law subjects) and the

four-year LLB are sti ll being successfu lly presented.The five-year

BAcc, LLB (the only progt-amme of its kind in South Africa) is pre­

sented jointly by the Faculty of Economic and Management

Sciences and the Faculty of Law. The postgraduate selection of

programmes consists of the postgraduate LLB (extending over two

Pro f james Fourie, Dean of the Faculty of Law

or three years), the LLM and the LLD. The taught LLM pmgramme

is very popular, and attracts large numbers of foreign students

(from countries including Belgium, Germany and the Netherlands).

A distance-based tuition programme in International Mercantile

Law, which is presented telematically, is also very popular. and

attracts students from all over South Africa.

The faculty's international academic co-operation agreements with

foreign un iversities are still in force, and still very popular. Every

year, exchange students from the Universities of Leyden, Louvain ,

Antwerp, Hamburg, Maastricht, Aberdeen and Amsterdam come to

Stellenbosch to study, while our students spend a semester at

those institutions. At undergraduate level, the medium of instruc­

tion is Afrikaans, but at postgraduate level it is English.

One of the facu lty's main problems is the poor through-flow rate ,

particularly in the first and second years of study. For several rea­

sons, including a low standard of schooling and a lack of dedication,

approximately 40% of students each year fail the first and second

years. Both t he facu lty and the Department of Education regat-d

this rate as unacceptable because of the high cost attached to uni­

versity studies. Consequently, the faculty has decided to admit on ly

250 first-year students per annum (numerus clausus). This numbet­

will include students from previously disadvantaged communities

who are participat ing in the faculty's academic development pro­

gramme.

The facu lty has always played an important role in interaction with

the community. The Legal Aid Clinic is staffed by sen ior law stu­

dents, under the capable guidance of the director, Mr Kruger van

derWalt. and offers free legal services to clients from disadvan­

taged environments. This is the most important and comprehensive

community service on the Stellenbosch campus.

41

Faculty Reports Continued

M ili ta ry Sc ience

Prof johan Malan, Dean of the Faculty of Military Science

The mission of the Faculty of Military Science is to empower mem­

bers of t he South African National Defence Force and other

defence forces in Africa with the knowledge, skills and attitudes to

effective ly manage current and futut-e secut-ity chal lenges. To

accomp li sh th is, the faculty pursues an academ ic stature that is

internationally recognised and also a contextualised understanding

of t he unique security challenges facing Africa. These pursuits are

made poss ible by a unique wllaborative relationship between the

faculty and the Department of Defence. This relationship is refiect­

ed in the faculty's atademic programmes, research output and t he

nature of its service-rendering.

/ The y7 2004 saw the pi lot presentatio n of the programme for

Military Science

42

the Certificate in Military Studies (CMS), wh ich has led to an

increase in registered students from the previously recorded num­

ber of 266 in 2003 to 426 at present The CMS programme con­

sists of a combination of appropriate academ ic subjects, as we ll as

opportun ities for professional mil itary development It rep resents

an approach to give future officers firsthand exposure to an in itial

level of higher education, in antic ipation of the future capacity to

all ow all candidate officers to complete a ful l degree programme

before their appointment as office t-s in the Depat-tment of

Defence. Although the approach is only an approximat ion of the

ideal strategy, it serves the purpose of making the programmes

offered by the Military Academy an integral part of the career

development of every officer and of the education, training and

development system of the Department of Defence .

In 2004 t he MPhil in Secut-ity Management was fu lly aco-edited by

the Counc il for Higher Education. This programme is expected to

further the integration of the Mil itary Academy with the main cur­

rent of the education, training and development activities of the

Department of Defence. The programme affords recogn ition to

sen ior officers who have successfully completed the Executive

National Security Programme in the past, allowing these officers to

engage in mastet-'s studies.

The successful deployment of the Distance Education Project in

t hree of the facu lty's undergraduate programmes is unobtrusively

ensuring that a radical change in the education, tra in ing and devel ­

opment practices of the Department of Defence is taking place.

The increase in registered students attests to the demand for this

mode of presentation, despite the chal lenges associated w ith part­

t ime distance learn ing. The advantages of open access to all mem­

bers of the Department and the possibi lity of al lowing members to

continue w ith tert iary studies without interfering w it h their contin­

uous uti lisation in their work ro les provide a logical rationale fo r

t he further expansion of the Distance Education Project.

A long-standing ideal of the Mil itary Academy has been to accom­

modate a sign ificant number of international students. During 2004

a small step was taken towards achieving th is ideal with a three­

month study visit by three officer students from the Saint Cyr

Military Academy in France and the registration of three officers

from the Botswana Defence Force. Other African defence forces

have also expressed interest in registering t heir officers for the dis­

tance education programmes.

The profile of the faculty's academic staff indicates steady progress

in the transformation of its demograph ic constitution. Over the

last five years 70% of new academic staff appointments were from

the designated groups (black, Coloured, Indian). Furthermore, inno­

vative strategies with respect to management structures have

resulted in meaningful representation from all designated groups.

The faculty has made considerable progress in its academic capaci­

ty-building in itiatives and has set its sights on the target of 40% of

its academic staff holding doctorates by 2008. This target has been

set due to the proportion of staff members already holding doc­

torates, as wel l as the steady increase in doctoral t"egistration and

the meaningful progress towards the attainment of doctorates in

the faculty. The concomitant increase in reseat-ch output will prob­

ably in future be boosted even more by the accreditation of

Scientia Militaria, the journal published by the Faculty of Military

Science.

The increased uti li sation by the Department of Defence of facu lty

members in decision support roles refiects the recogn ition that the

academic expertise of members of the faculty is beginning to enjoy.

Prof Albert van jaarsveld, Dean of the Faculty of Science

Sc ienc e

For the Faculty of Science there were several successes in 2004 with its efforts to position itself even better as the prefen-ed faculty for t"eseat-ch and train ing in the natural sciences.

The facu lty's approach to invest in high-cal ib re individuals is paying off The awarding of the DST/NRF Centre of Excellence in Invasion Biology to Prof Steven Chown and his team is evidence of the recognition enjoyed by these researchers. Furthermore, the faculty was also able to appoint Prof Dave Richardson, an esteemed expert in invasion biology as the new deputy director of t his cen­t re.

Some other highlights were the election of Prof Doug Rawlings as

Science

43

Facu lty Reports Continued

president of the Royal Society of South Africa, the award ing of the

coveted Oppenheimer Fellowship to Prof Jannie Hofmeyr, the

awarding of the SA Association for the Advancement of Science

(S2A3) gold medal fo r Chemistry to Prof Piet Steyn, and Prof Ben

Burger receiving t he Chemical Instit ute's gold medal. Prof Pat

Sandra (Chemistry) received the American Chemical Society's

award for Chromatography and was also adjudged t he South

African chromatographer of the year: Dr Christine Steenkamp

(Physics) was awarded a post-doctoral fellowship to conduct

research wit h Nobel Prize winne r Carl Weimann at the University

of Colorado in t he USA. Prof Kathy Myburgh was e lected president

of the Physiological Society of Southern Africa and Dr Ma~anne

Senekal received the ARP Walker Award for research in nutrition.

Fo ll owing t he recent appointment of Prof H Prodinger

(Mathematics) and the evaluation of Prof Len Barbour (Chemistry),

the faculty currently boasts no fewer than six individuals evaluated

in the A category by the NRF. We are also home to 24 B-evalua­

ted individuals, one P-evaluated individual, 17 C-evaluated individu­

als and ten individuals in theY categot·y.The facu lty therefore finds

itself in the distinguished position of having 60% of its staff evaluat­

ed in one or other category by the NRF, and thus ab le to rely on

outside research support. This income combined with income from

industry currently amounts to R44 million annually.

44

Because the facu lty places particular emphasis on research, it was

necessary to take a serious look at the expansion of our postgrad­

uate component. Since 1992, the number of postgraduate students

has increased steadily and accounted for 25% of the faculty's stu­

dents in the year under review. Serious attention was given to the

drive for greater diversity among students and staff. Currently, there

are more women (39%) in the staff than ever befo re and several of

them hold senior posts. The number of staff from the designated

groups (27%) is also showing a slow but steady increase. Roughly

78% of the facu lty's students in 2004 were whit e and 65% were

Afrikaans-speaking.

Several departments in the faculty increased both their postgrad­

uate student numbers and their research out puts, w ith about 230

articles appearing in journals in the year under review. The

Departments of Botany and Zoology merged in July 2004 to form

t he Department of Botany and Zoology. This is a first mi lestone in

the management goal of bringing about larger, more effective and

susta inable organisational units. The newly formed department

delivered an outstanding research performance in 2004, wit h more

t han one hundred recognised research publications. No fewer t han

32 doctoral and 53 master's students were registered in the

Department of Botany and Zoology and the entire faculty pro­

duced 27 doctoral and 52 master's graduates.

In efforts to reali se Vision 20 12, the facu lty undertook serious

assessment of content and revision of its undergraduate pro­

grammes. Fewer modules and programmes that are more closely

aligned with the focal areas of the Univers ity are changes that wi ll

become a reality in 2006.This will all ow academic staff more time

for research without jeopardising the quality of tuition. The serious

concerns about th rough-fiow rates were addressed by introducing

mentor programmes in modu les where bottlenecks are experi­

enced. The faculty had all exit- level modules externally assessed in

2004 to ensure that the highest standards are maintained and t hat

quali fications enjoy wide recognition. All postgraduate qualifications

are also subject t o external examinatio n.

The faculty strives to detect and rewat·d excel lence at all levels. In

2004, Prof Jacky Snoep (Biochemistry) received the Rector's Award

for Excel lence in Research, Prof Kobus Visser (Physics) and Mr

Hennie Groenewald (IPB at Botany and Zoology) received the

Rector's Award for Excellence in Teaching and Mr Ulrich

Deutschlander (Physics) and Mr Henry Joshua (Geology) rece ived

t he Rector's Award for Excellence in Service.

Theo logy

The Faculty ofTheology functions with in an entirely unique context

at the University. Due to agreements with its partners, namely the

Dutch Reformed Church, the Uniting Reformed Church and the

Uniting Presbyterian Church in Southern Africa, the faculty is able

to maintain an exceptional position in the diversity profile of the

University.

Currently, the faculty's diversity profile is composed as fo ll ows (%):

Undergraduate Postgraduate

Black 9,3 19,9

Coloured 23,3 29,8

Indian 1,1 3,5

Wh ite 66,3 46,8

The implication of these figut'es is that the faculty is already 53%

black at postgraduate level.

An indication of the unique context of the facu lty may be found in

the way that the processes of transformation and areas of tension

in South African society are directly refiected in the faculty's sys­

temic netwot'k of re lationships. Consequently, attention had to be

given continuously to processes of reconci liation that relate directly

to matters of race and gende~ I have raised this point in the report

in a conscious attempt to provide an indication of how a multicul­

tural context in the student corps provides the University with the

opportun ity to engage in processes of transformation in a mean­

ingful way. The diverse composition of the faculty is experienced as

enrich ing and meaningful.

Prof Daniel Louw, Dean of the Faculty of Theology

The facu lty has ach ieved exce ll ent results in the reseat'Ch arena.

Whi le the average t'esearch output of full -time lecturers at SU is

0,53,Theology heads the list with 2,07 (according to statistics of the

2003 output) . At present, the faculty has one P-rated and three C­

rated researchers.

A new programme, the MPhil in Chaplaincy, was instituted in col­laboration with the Military Academy in Saldanha. We intend receiving the first intake of students for this programme in July, and our expectation is that, eventually. all chaplains will be trained at SU.

Theology

45

Faculty Reports Continued

Negotiations are currently under way to make the MPhi l available

to the whole of Africa.

Expansion of the students' Christian spirituality and maturity of faith

are high on our agenda. In our attempt to address this priority, a

chapel was built and then inaugurated at the end of Novembe t·

2004. The Sol lustitiae Chapel accommodates not only the students'

worship, but also their homiletic train ing, and is attached to a labo­

ratory for speech and communication skill s (ministerial ski l)s).

A great deal of attention is afforded to service delivet·y in an African

context. To this end, the Beyers Naude Centre for Public Theology

has faci litated the exposition of important issues by means of confer­

ences and seminars. In September 2004, the centre, in co-operation

with a government-sponsored organisation, The Moral Regeneration

Movement, presented a conference on moral reconstruction, which

was attended by more than 250 gt·aduates of othet· educational insti ­

tutions. In October 2004, the important international Belhar-Barmen

conference was held dn the highly relevant issue of the meaning of

these two creeds for our society. Reformed churches from all over

Tri butes by the Un ivers ity

Honorary Degrees

In the year under review, the University awarded honorary doctor­

ates to Brigalia Bam, Brian Bruce and Abram Fischer (posthumous­

ly) in December 2004, and to Karel Bos and Prof Pieter de Vill iers

in Apri l 2005.

Brigalia Ntombemhlophe Bam was awarded the DPhi l degree, han-

46

the world were represented at this conference.

Through NetACT (Network for African Congregational Theology).

the faculty has made contact with influential church groups in

Angola, including the lnstitutio Superior Emanuel Unido, a large semi­

nary for several denom inations, which include the lgreja Evangelico Reformada de Angola.

The Unit fo r Religious and Development Research (URDR) was

involved in pi lot projects in Paarl and George. The aim of these

projects was the development of a methodology whereby church­

es, businesses and government institutions may be yoked together

in an effort to alleviate all forms of poverty. As a result of t his proj­

ect, Transformation Africa has entered into a contract worth R 1.4

mi llion with URDR to research the scope of the poverty crisis in

the entire Cape Peninsu la.

The Faculty ofTheology may be regarded as a living laboratory for

interculturality and diversity. In th is way. the faculty has attempted

to reali se the varied and multi-faceted nature of ecumenicity.

oris causa, for her work as a social worker and educationalist who

has devoted her li fe to the empowerment of women and to the

establi shment of an international ecumenical spirit.

She has done extensive work in the fields of health, welfare and

education. Internationally. she has served as programme director for

the World Counci l of Churches, which applied her expertise to

focus on women, the youth and human rights. In South Africa, she

has gained recognition for her work as the general secretary of the

South African Council of Churches and, since 1998, as the chairper­

son of the Independent Electoral Commission of South Africa.

Brian Cameron Bruce received the DEng degree, honoris causa, for his exemplary career in civil engineering, during wh ich he managed large projects and developed a construction company into an inter­national competitor: His leadership and his selfless dedication in sharing his time and expertise with the tertiary education sectol­are appreciated by the University.

His other achievements include head ing world-class projects for Murray & Roberts Ltd, for which he 1-eceived the SAlCE Gold Medal for Outstanding Construction Achievement He also serves on various national councils and committees of the government, the engineering profession, the constl-uction industry and universi­ties.

Abram Fischer posthumously 1-eceived the DPhil degree, honoris causa, for his substantial and format ive influence on South Africa, even after his death. His influence can be attributed to his unwaver­ing quest for freedom, justice and political equality under the apartheid dispensation.

As a lawyer: he handled cases that significantly altel-ed the course of South African history. These cases include the High Tl-eason trial of 1956 and the Rivonia t l-ial of 1963, in which Nelson Mandela was one of the accused. In his quest fo1- li beration and his stl-uggle for justice in the courts of law, Fischer was harassed, arrested, disbarred and later sentenced to life imprisonment, amongst others on charges of high treason. He nevertheless 1-emained t l-ue to his prin­ciples until the end of his life.

Karel Bos ( 1928) received the DComm degree, honoris causa, for his outstanding contribution to and role in the economy and manu­facturing sector in both South Africa and the world at large, and for his visionary and inspirational leadersh ip as entrepreneur: Today, his

company, Bosal, is a major international supplier of spare parts, with an annual turnover of €790 mil li on - one of the five largest suppli­ers in t he world.

Since the 1990s, Bos has maintained close links to the University of Stellenbosch Business School, of which he is chairperson of the Advisory Committee.

Pieter Johannes de Villiers was awarded the DMus degree, honoris causa, for his invaluable quantitative and qualitative contribution to all of the most important facets of South African musical life.

In his career as performing artist, soloist and conductor: his techni­cal command, artistry and musical insight were always striking, and his excellently text-sensitive compositions have made a unique con­tl-ibution to the Afrikaans art song and choral repertoire, as well as to the establishment of Afrikaans as a language fo r singing.

/ 47

Tributes by the University continued

The Chance llor's Medal

The Chancellor's Medal was awarded to Gideon du Rand in 2004

for passing the BCommHons (Economics) degree cum laude with

87%.This academic achievement also secured him the Cloete

Medal for the best postgraduate student in Economics, and the

Schumann Medal for the best postgraduate student in the Faculty of Economic and Management Sciences. At undergraduate level, he

followed the BAcc programme, with second- and third-year

Economics and Practical Music Studies as extra subjects. During his

five years of study, he managed to maintain an average of 85,2%.

Gideon was awarded a Commonwealth Bursary for postgraduate studies in the United Kingdom, but elected to accept a bursary

from the prestigious Columbia University in New York, where he is

currently engaged in his PhD studies in Economics.The Emst

Oppenheimer Memorial Trust Fund presented a further award to him in support of his studies at Columbia University.

In addition to his academic diligence, Gideon was involved in choirs

and/or orchestras of the University thmughout his years as a stu­dent- in 2003 he was the first clarinettist of the SU Symphony

Orchestra. He also participated in community projects of the

Habitat for Humanity Maties student organisation, in which students

build houses for the less privileged. The topic of his honour-s paper (The impact of internationalisation on inequality) and the research

projects in which he is involved are all indicative of his concern

about social problems.

He rendered good service to the Facu lty of Economic and

Management Sciences as a student assistant and lecturer. Even

though he had no previous experience as a lecturer, his first-year students gave him an 80% average in the "general impression of

lecturer" category for 2004.

48

Gideon du Rand, winner of the 2004 Chancellor's Medal, with the Chancellor, Prof Elize Botha

( I

I

Conso lidated Annua l Fin ancial Statements

Co\n ents \ .

Report on t he Consolidated Annual Financial Statements

University Council's Statement on Corporate Governance

University Council 's Responsibility for Financial Reporting

Report of the Independent Auditors

Accounting Policy

Consolidated Balance Sheet

Consolidated Income Statement

Consolidated Statement of Changes in Funds

Consolidated Cash Flow Statement

Notes to the Consolidated Annual Financial Statements

2004

49

so 52

52

53

55

56

57

58

59

49

\

University Council's Statement on Corporate Governance

Ste ll enbosch Un ivers ity was established in 19 18 under Act No. I 3

of 19 I 6, superseding the Victoria co ll ege.

The University is committed to the principles of discipline, trans­

parency, independence, accountability, responsibility, equity and

social responsibility as contained in the King II reports on corporate

governance.

The Council of the University consists of academic and non-aca­

demic individuals, du ly appointed and nominated in terms of the

artic les of associat ion of the Un iversity, the majority of whom are

not staff or students of the Univers ity. The role of t he

Chairperson of the Counci l is seperated from the role ofVice­

Chancellor and Rector of the University. Business allocated to the

Council for consideration and decisionmaking is laid down in the

articles of the University e it her by established practices or in terms

of the Higher Education Act, 1997. The Council is accountable to

its various interest groups. The Council ensures that the University

is managed in a responsible and transparent way and has commit­

ted itself to sound management pt-inciples. The Council, wh ich

meets at least six times a year. consists of 30 members. The

names of the members of the Council appear on page 5. The

Council has created structures to ensure that its obligations to all

interest groups are duly met at all times. The following

Committees of Council play a direct role in the effective functio­

ning of the University: t he Executive Committee of t he Council, the

Human Resources Committee of the Council, the Audit and Risk

Committee of the Council as well as the Investment Committee.

All the committees are formally constituted with written mandates

and mainly compt-ise members of the Council who are not staff or

students of the University.

The Executive Committee of t he Council , which meets at least six

times a year. makes decisions on behalf of the Council, deals with

business on behalf of the Council, advises the Council on policy

de~is ions and liaises with senior management in the periods

between Council meetings on matters regarding the functions of

the Council. It consists of seven members, who are also members

of the Counci l. The Committee also performs a monitoring and

control function on behalf of the Council in that it recommends

the Un ivers ity's business plan, as a consequence of t he strat egic

plan, and monitors its implementation, it recommends the annual

operating and capital budgets, and controls progress and results in

terms of the approved budgets. In addition the Committee is

responsible for ensuring that the University is financially sound and

remains a going concern.

The Audit and Risk Committee of the Council , whose

Chairpet-son and members are also members of the Counci l or at-e

individuals who have the required financial expertise to assist the

Committee in the efficient execution of its duties, has been func­

tioning since 6 November 1992 and consists of five members, as

set out on page 5. The Committee meets twice a year and the

meetings are attended by the auditors, internal as well as external,

50

and all the members of the sen ior management of the Un iversity.

The auditors, both internal and external, have unrestricted access

to the Audit and Risk Committee in order to ensure their inde­

pendence. The Audit and Risk Committee functions in terms of a

written Council mandate and is accountable to t he Council with

regard to:

• Protection of assets

• Operation of suitable systems of internal control

• Risk management and risk control measures

• Internal and external audits

• Compliance with statutory requirements

• Accounting policy

• Financial reporting

• Going concern

The Human Resources Committee of the Council is responsible

for considering matters such as remuneration and fringe benefits of

senior management and making recommendations to the Council in

th is regard. The Committee also makes t-ecommendations to the

Counci l on matters t-egarding, inter al ia, general staff policy, general

remuneration matters, service contracts, pension funds, fringe bene­

fits, bonuses, performance assessment frameworks and the composi­

tion and promotion of members of senior management. The

Committee consists of five members, as set out on page 5.

Effective, efficient and transparent financial management and

internal contro l systems are used to ensure the accuracy of the

University's accounting records and the integrity of the data used

for the preparation of financial statements.

There are inherent limitations to the effectiveness of any internal

control system, including the possibility of human errors and the

circumvention or subversion of control measures. Consequently

even an effective internal control system can at best provide only

reasonable assurance in regard to financial information.

Systems of effective, efficient and transparent financia l management

and internal control are assessed by the internal and external audi­

tors. Weaknesses in the systems are brought to the notice of

management and, where appropriate, to the notice of the Aud it

and Risk Committee. Whenever deficiencies of control are identi­

fied, or opportunities for improvements to the systems are identi­

fied, steps are taken to rectify them or turn t hem to advantage,

respectively.

The University fu nctions in terms of a value system which is set

out in its Strategic Framework and is accepted by the entire univer­

sity commun ity. However. the University also has a specific set of

guidelines regarding all ethical aspects of scientifi c research.

These guidelines are applied by three Ethics committees (one each

for Health Sciences, Physical Sciences and the Humanities) to

ensure that researchers ad in accordance with the relevant ethical

norms in every relationship with subjects and objects during their

scientific research. The ethical norms set out in the guidelines

apply as early as the evaluation of the objective of the particular

research and the object of research and is also binding in respect

of financing resources, clients, the community, the physical, biological

and social environment, the safety of researchers and collaborators,

and the personal responsibi lity of the researcher.

The University aspires to handle the management of human

resources with sensitivity with due allowance for diversity and the

particular environment and social context withi n which the institu­

tion functions. To this end the necessary measures have been put

in place for effective conflict management. The year 2004 was

characterized by the absence of any serious conflict and thus any

disruption of service. The University has the necessary po li cies and

procedures in place to offer both employer and employees the

necessary procedural and statutory protection. In this t-egard the

Disciplinary and Grievances procedure, the Sexual Harassment po­

li cy and procedure, the Business Practices Code and the Nepotism

Prevention po li cy deserve specific mention. In addition, greater

transpat-ency, participation and effective communication are pur­

sued continuously. Continuous t t-aining of environmental heads in

the handling of labour matters ensures that labour conflict t-eceives

prompt attention and, where possible, is resolved satisfactorily. A

further contt-ibuting factor to the minimizing of serious labour con­

flict is the presence of an ombudsman on the campus who reports

directly to the Rector and serves as an extraordinary conduit for

complaints where t he complainant (whethet- a student or a staff

member) is not treated satisfactorily through the normal stt-uctures.

The principles of a participative and transparent management

style are endorsed by the University. Two representative trade

unions are active on the US campus, namely the National

Educational Health and Allied Workers Union (NEHAWU) and the

South African Parastatal and Tertiary Institutions Union (SAPTU)

but only NEHAWU has formal recognition in terms of labour legis­

lation. The various staff associations, namely the Lecturers'

Association, the Administrative Staff Association, the Technical

Association, the Employees' Association and the Women's Fot-um,

are consulted together with the recognized trade un ions on a

broad spectrum of human resources mattet-s. The staff associa­

tions are also represented in various participating decisionmaking structures such as the Health Care Committee, the Board of

Trustees of the US Retirement Fund (USRF) and the Umbre ll a

Employment Equity Fot-um.

Employment equ ity remains a strategic priority for the University

and the Umbrella Employment Equ ity Forum mon itors all employ­

ment equity matters. Activities during the year under review were

the drafting of an Employment Equity plan and policy and a

Business Management Code fot- the period 2004 to 2006, the

drafting of a po li cy for the Handling of Disabled Individuals, the

composition of selection panels involved in the appointment of

staff, and discussions with deans and environmental heads as a part

of the implementation and monitoring of the employment equity

plan. Personal development plans for staff with potential remain

operative. The participation of students in decision making is important to

Stellenbosch University, as set out in our Strategic Framework.

On a macro level students have a seat in the highest formal struc­

tures of authority, such as the Students' Representative Counci l

(SRC) representation in the Counc il , the Senate and the

Institutional Forum. Students are also members of the faculty

boards, the Academic Interests Board and Tuition Fees Committee.

Furthet-more, students serve in various important working commit­

tees, such as the Bursaries and Loans Committee, the Serious

Incidents Committee, the Tuition Fees Committee, the Disciplinary

Committee and the Hostel Liaison Committee . In its pu rsu it of a

safe environment for students the Students' Security Counci l (SSC)

renders an important service in the form of doorkeepers at hos­

tels and the patrolling of the green route.

Various advisory forums - e.g. regarding students with disabilit ies,

sexual molestation, HIV/Aids and substance abuse - also util ize

students' ski ll s and knowledge. The Induction and Monitoring

Working Groups, which manage the welcoming of freshers, consist

of various student representatives and all but one of the monitot-s

are from the ranks of students.

All hostels have developed t heir diversity plans and are in the

process of implementing these. Hostel students wish not only to

make a contt-ibution to transformation on the campus and in their

various hostels through the hostel diversity plans, but also yvish to

review the existing culture of the University in the process. T~ hostel diversity plans were developed in line with and su~pleme~- ~ tary to t he broader diversity plan of the University. Students who

attended the TransforMatie seminars in 2004 were influenced VE;ry

positively thereby. Many of them now act in a leading capacity on

the campus and in hostels. I \

The Student Councils of Ste ll enbosch and Tyget-bJrg Mil itary

Academy assist in developing students as leaders~ Student associa-- -- - I

tions, headed by a member ~f the SC, play a rOle in providing

every student with opportunities for recreation ot- stimulation and

the various chairpersofls of associations man~ge their committees

with enthusiasm anq efficiency. /

51

\

University C ouncil's Responsibility for Financial Reporting

The University Council accepts responsibility for the integrity,

objectivity and reliability of the consolidated annual financ ial state­

ments of Stellenbosch University. The responsibility for the prepa­

ration and presentation of the financial statements has been dele­

gated to management.

The Council is of the opinion that Stellenbosch University, as well

as the subsidiaries and t rusts included in the consolidated state­

ments, are operated as going concems and consequently the finan­

cial statements have been prepared on that basis.

It is the responsibility of the extemal auditors to express an inde­

pendent opinion on t he fairness of the consolidated annual financial

statements, based on their audit. They have had unrestricted

access to all financial records and related data, including minutes of

meetings of the Council and all the committees of Council.

~ Dr E de Ia H Hertzog Chairperson of the Univet-sity Counc il

~ Dr GS van Niekerk Chairperson of the Audit and Risk Committee

The Audit and Risk Committee has confirmed that adequate inter­

nal financial control systems are maintained and that there were no

material defects in the functioning of the intemal ftnancial control

systems during the yea~

The Council is satisfied that the consolidated annual fin anc ial state­

ments fairly present t he financial posit ion, the resu lts of opet-ations,

changes in funds and cash flow in accordance with the relevant

accounting policy based on South African Statements of Generally

Accepted Accounting Practice.

No material facts or circumstances have arisen between the date

of the balance sheet and of this report that materially affect the

financial position of Stellenbosch University.

The consolidated annual financia l statements on pages 53 to 71

have been approved by the Council and were signed by:

Prof CH Brink Rector and Vice-Chancellor

Prof E Calitz Executive Director: Finance

Report of the Independent Aud itors to the Council of the Stellenbosch University

We have audited the consolidated annual financial statements of

Stellenbosch University, as set out on pages 53 to 71, for the year

ended 31 December 2004. These financial statements are the

responsibility of the Council of Stellenbosch University. Our

responsibility is to express an opinion on these financial statements

based on our audit.

Scope

We conducted our audit in accordance with South African

Statements of Auditing Standards. These standards requi re that

we plan and perform the audit to obtain reasonable assurance that

the financial statements are free of any material misstatement. An

audit includes:

an examination, on a test basis, of evidence suppot-ting

the amounts and disclosures in the financial statements,

an assessment of the accounting principles used and signifi­

cant estimates made by management, and

an evaluation of the overall pt-esentation of t he ftnancial

statements.

We believe our audit provides a reasonable basis for our opinion.

52

Audit opinion

In our opinion t hese annual financial statements fai r ly present, in all

material respects, the financial position of Stellenbosch University at

3 I December 2004 and the results of its operations, changes in

funds and cash flow for the year then ended, in accordance with

South African Statements of Generally Accepted Accounting

Practice and in the manner required by the Minister of Education

under Section 41 of the Higher Education Act (Act I 0 I of 1997, as

amended) .

~C4J~~eev¥~ -:r..e-. fJRJcEWA1fRHOVsE(mPERS I PricewaterhouseCoopers Inc.

Chartered Accountants (SA)

Registered Accountants and Auditors

Stellenbosch

16 May 2005

Accounting Po li cy

The conso li dated annual fi nancial statements are prepared on the

historical cost basis, as amended by the revaluation of "held for

trading" investments, donations and investment properties, in ac­

cordance with the requirements of South African Statements of

Generally Accepted Accounting Practice. The accounting policies

are consistent with those adopted in the previous year.

I. Basis of consoli dation All entities in which the University, directly or indirectly, has

an interest of more than half of the vote or otherwise is

able to exercise control over the operations are included in

the consolidated fi nancial statements in the conventional

way. The results of subsidiaries acquired during the year

are included from the date on which effective control was

obtained. Assets acquired on the acquisition of a sub­

sidiary are appraised at a reasonable value and, where ne­

cessary, provisions are made as at the date of acquisit ion.

2. Associated companies

An associated company is a company, other than a sub­

sidiary, in wh ich the University holds a long-term invest­

ment and upon which, therefot-e, the University, because of

the size of its investment, is able to exercise a significant

influence. The results of associated companies have been

accounted for by the equity method of accounting.

3. Foreign exchange

Foreign exchange transactions are recorded at the

exchange rate as at the date of the transaction. Any fo­

reign exchange differences arising from the settlement of

such transactions are recogn ised as income or expenditure

in the period in wh ich they originate.

4. Financial instruments

Financial instruments include cash, bank balances, invest­

ments, receivables, creditors and loans. These instruments

are generally shown at their expected fa ir value, unless oth­

erwise specified.

5. Research and development costs

Research and development costs are written off in the year

in which they arise, since both these types of charges are

inherent in the normal operations of a university.

6. Investments and donations

Donations are shown at reasonable market values as at the

date of the donation. Investments are classified as "held for

trading" and are shown at their market values by applicable

valuation methods. Changes in fair values are charged

directly to the income statement In the previous year

investments were classified as "ava il able for sale" and t he

change in fair values was charged directly to equity. Refer

to note I for the reason and effect of this change.

7. Property, books and equ ipment Al l property, books and equipment are shown at cost, with

the exception of donations of property, books and equip­

ment, which are appraised at fair market values by inde­

pendent external valuers. Land is not depreciated, since it has an unlimited life.

Bui ldings are depreciated by the straight-l ine method over

their expected useful life. Maintenance costs are recog­

nised as expenditure in the period in which they arise.

Computer and other equipment are depreciated by the

straight-li ne method over their expected usefu l life .

Library books are written off in fu ll as at the date of pur­

chase.

Livestock are not depreciated.

Depreciation rates are as follows:

2004 2003

% %

Land 0.0 0.0

Buildings 2.0 2.0

Computer equipment 33.3 - 50.00 33.3

and software

Other 20.0 20.0

Library books 100.0 100.0

Livestock 0.0 0.0

8. Inventories Inventories, consisting mainly of consumer goods and sta­

tionery, are shown at the lower of cost, on the basis of

average cost for all categories, or net realisable value.

9. Receivables Receivables are carried at the original contractual amount

after provision for impairment of the outstanding amount

A provision fo t- impairment is established when there is

objective evidence that the Un iversity will not be able to

collect all amounts due according to the original terms of

the receivables. The amount of the provision is the differ­

ence between the carrying amount and the recoverable

amount, being the present value of the expected cash

flows, discounted at the market rate of interest for similar

receivables.

I 0. Cash and cash equ ivalents Cash and cash equivalents consist of cash on hand, call

deposits, investments in money market inst ruments, and

bank overdrafts.

53

Accounting Policy Cont in ued

I I. Recognit ion of income Tuition and accommodation fees are recognised as and

when the service is provided.

Central government allocations are recognised in the period

for which t hey are received.

. Research grants are recognised when received and are not

deferred over the term of the research. Similarly, expendi­

ture is offset when incurred and is not deferred over the

term of the research.

Interdepartmental income and expenditure are eliminated.

Other income earned by the University is recognized on the fol­

lowing bases:

•

•

Interest income - as and when accrued (allowing for t he

effective return on the asset) unless co ll ectability is doubt­

fu l.

Dividend income - when the shat·eholder's right to

receive a payment is established i.e on the last day for

registration in respect of listed shares and when declared in

the case of un listed shares.

12.1nvestment properties

54

Investment properties are held to generate rental income

and to achieve capital growth. Owner-occupied properties

are he ld for administrative, tu ition and research purposes.

Their use differentiate owner-occupied properties from

investment properties.

Investment properties are considered as long-term invest­

ments and are carried at market values, determined annual­

ly by external independent sworn valuers. Investment

properties are not depreciated. Any change in value is

taken di rectly to the income statement and included in t he

net profit or loss for that period. On realisation of the

investment property the difference between the carrying

value and the selling price is taken directly to the income

statement.

13.Provisions Provisions are recognised when the University has a cur­

rent legal·or constructive obligation as a result of a past

binding occurrence wh ich probably will lead to an outflow

of resources in the form of economic benefits to meet the

obligation and when a reasonable estimate of the amount

of the obligation can be made.

14. Post-retirement medical benefits Retired employees rece ive post-retirement medical bene­

fits. Access to t his benefit is restricted to employees

appointed prior to I June 2002. The expected costs of

these benefits are recogn ised over the period of employ­

ment. The li ability in respect of post-retirement medical

benefits is the present val ue of the obligation at year-end

less the fa ir value of plan assets and any adjustments for

actuarial gains or losses and past service cost. The ob liga­

t ion is calculated actuarially by independent actuaries on an

annual basis.

Actuarial gains o r losses arising from adjustments based on

experience as well as amendments to t he original plan are

recognised through the income statement over the average

remaining period of service of existing employees.

IS. Deferred tax Deferred tax represents the tax implications of temporary

differences between the tax bases of assets and of liab il it ies

and carrying values for financial reporting purposes.

Current tax rates are used to dete rmine deferred t ax.

Deferred tax assets are only recognised to the extent of

t heir probable recoverability.

Consolidated Balance Sheet at 3 I December 2004

Notes 2004 2003

R'OOO R'OOO

Asset s

Non-current assets 2,002,434 I ,695,239

Property, books and equ ipment 5 663,092 586,585

Long-term investments 6 I ,336,559 I, I 06,866

Deferred tax 8 2,783 1,788

Current assets 508,975 504,0 I 0

Inventories 3,472 3,972

Receivables and prepayments 7 133,229 11 8,583

Cash and cash equ ivalents 21 362,744 375,310

Short-term investments 6 9,530 6, 145

Total assets 2,5 11 ,409 2,199,249

Funds and Liabilities

Funds available I ,993,990 I ,745,357

Unrestr-icted funds 2 65,569 103,959

Restricted funds 2 1,648,893 I ,477,59 1

Fai r value reserve 2 279,528 163,807

Minority interest 3 (2,552) (832)

I ,99 1,438 I ,744,525

Non-current liabilities 373,570 322,932

Interest-bearing loans 4 13 1,585 116, 174

Post-retirement benefit li ab il ity for medical scheme 23 24 1,985 206,758

Current liabilities 146,40 I 131,792

Trade and other payables 9 79,077 73,306

Provision for leave gratuity 10 47,863 44,313

Student and other deposits on call 8 16 942

Short-term portion of interest-bearing loans 4 14,967 9,670

Short-term portion of post-retirement benefit liability for medical scheme 23 I ,353

Bank overdraft 2 1 I, 180

Short-term instruments of debt 2,325 2,381

Total funds and liabilities 2,5 11 ,409 2, 199,249

55

Conso li dated Income Statement for the year ended 3 I December 2004

Education Education Education Student and 2004 2003

and and and staff accom- Total Total

Notes general general general modation

Unrestricted Restricted Total Restricted

R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

Total Income 856,205 727,889 1,584,094 108,448 1,692,542 1,328,697

Recurring items

Government allocations 449,87 1 I 05,488 555,359 3,276 558,635 54 1,084

Tuition, accommodation and other fees 235,228 12,450 247,678 100,983 348,66 1 3 15,780

Private donations, allocations and contracts 35,829 26 1,86 1 297,690 593 298,283 272,850

Sales of services and products 56 70,622 70,678 849 7 1,527 73,547

Subtotal 720,984 450,42 1 1,171,405 105,70 1 I ,277,106 1,203,261

Interest and dividends received IS 26,859 61,305 88,164 2,747 90,911 I 04,742

Profit on sale of property,

books and equipment 2 894 896 896 5, 194

Fair value adjustment on investments 16 108,05 1 212,405 320,456 320,456 15, 19 1

Equity profit in associate 6 279 279 279

Foreign exchange gain 309 2,585 2,894 2,894 309

856,205 727,889 1,584,094 108,448 1,692,542 1,328,697

Total Expenditure 710,341 564,855 1,275,196 78,835 1,354,03 I I ,235,631

Recurring items

Staff costs 12 482,997 147,753 630,750 II ,889 642,639 576,054

Academic professional 249,799 62, 129 3 11,928 311,928 292,077

Other 233,198 85,624 3 18,822 11,889 330,7 11 283,977

Other operating expenses 14 182,522 329,377 5 11 ,899 66,907 578,806 526,365

Depreciation 14 40,094 53,373 93,467 93,467 88,939

Subtotal 705,6 13 530,503 1,236, 11 6 78,796 1,3 14,91 2 I, 191,358

Loss on sale of property,

books and equipment 908 956 1,864 39 1,903 3,233

Equity loss in associate 6 1,077

Foreign exchange loss 3,820 5,650 . 9,470 9,470 18, 109

Impairment of loans 14 5,597 5,597 5,597

Finance charges 22, 149 22,149 22, 149 2 1,854

7 10,34 1 564,855 1,275, 196 78,835 1,354,031 1,235,63 1

Allocation to reserves 15,609 15,609 ( 15,609)

Transfer to reserves ( 137,470). 151,474 14,004 ( 14,004)

Minority interest 3 I ;69 1 1,69 1 1,69 1 1,670

(137,470) 168,774 31,304 (29,6 13) 1,69 1 1,670

Net income for the year 8,394 33 1,808 340,202 340,202 94,736

56

Conso li dated Statement of Changes 1n Funds for the year ended 3 I December 2004

Educational Student Subsidiary Loan Endowment Fixed Total

Notes and and companies funds funds asset

general staff accom- funds

modation

R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

Balance at I January 2003

- as previously reported 327,8 11 23,1 18 16,028 68,255 455,777 589,014 I ,480,003

Change in accounting

po li cy 6,725 86 6,811

334,536 23,1 18 16, 114 68,255 455,777 589,014 I ,486,8 14

Fair value reserve

- adjustment for prior years 9,474 345 4 1,450 12,823 64,092

- adjustment for the year 16,089 586 (480) 61,744 21,776 99,715

Surplus for the year 94,736 94,736

Allocation to 1-eserves (44, 161) 5,269 6,917 I 0,367 II ,075 10,533

Transfers to 1-eserves 23,032 (24,991) ( 14,426) 8,345 ( 16,396) 24,436

Balance at 3 I December 2003 433,705 4,327 8, 125 86,967 SS3,6SO 6S8,S82 I ,745,357 -- ---

Balance at I January 2004 433,70S 4,327 8,12S 86,967 SS3,6SO 6S8,S82 I ,745,357

Fair value reserve

- realisation to income statement ( 15,862) (I ,80S) (S4,S7S) ( 19,326) (91 ,568)

Surplus for the year 340,202 340,202

Allocation to reserves ( 181 ,809) 17,929 30, 186 ( I ,736) 11 3,7S4 2 1,676

Transfers to 1-eserves 3 1, ISS ( 14,004) (11,330) 19,430 (48,80 I) 23,SSO

Balance at 3 I December 2004 607,391 6,447 26,98 1 104,661 S64,028 684,482 1,993,990

57

C onsolidated Cash Flow Statement fo r t he year e nded 3 I December 2004

Notes 2004 2003

R'OOO R'OOO

Cash Flow from Operating Activit ies

Cash t'eceived from government grants and allocations 558,635 54 1,084

Cash received from tuition and other fees 336, I 02 303,525

Cash received from private donations, allocations and contracts 298,283 272,850

Cash received from occasional sales and services 7 1,1 72 6 1,240

Cash paid for staff costs (601,82 1) (542, 14 1)

Cash paid for inventories and services (576,265) (517,48 1)

Cash generated by operations 17 86, 106 11 9,077

Add: Interest rece ived 18 63,545 81,104

Dividends received 19 24,804 22,698

Less: Interest paid 20 (22,348) --~~_Q_~z5o) _

Net cash inflow from operating activities 152, 107 202, 129

Cash Flow from Investment Activities ( 184,087) (132,473)

Additions to investments ( 11 6, 122) (9,955)

Surpluses/(losses) realised on invest ment s I 06,535 (2,609)

Additio ns to pmperty, books and equipment ( 178,402) (125,103)

Proceeds on sale of property, books and equipment 3,902 5, 194

Cash Flow from Financi ng Activit ies

Increase in interest, bearing loans 20,594 4,228

Net ( decrease)/increase in cash and cash equivalents (II ,386) 73,884

Cash and cash eq uivalents at the begin ning of the year 374, 130 300,246 -----------

Cash and cas h equivale nts at the e nd of t he year 2 1 362,744 374,130 ===---=---==--:o::...--=~-=

58

Notes to t he Consolidated Annual Financial Statements for the year ended 3 I December 2004

I. Change in Accounting Po li cy and Estimate

1. 1 Associate d compani e s

2004

R'OOO

2003

R'OOO

The University and its consolidated subsidiary University of Stellenbosch Investment Trust changed t heir accounting policy on I January 2003 in

conformity with the new South African Statement of Generally Accepted Accounting Practice (GAAP) AC I I 0: Investments in Associated

Companies. Investments "available for sale" in which a significant interest is held were previously shown at cost and are now adjusted in terms

of the statement and accounted for by the eq uity method. The previous year's figures have been adjusted accordingly and are shown as a

change in accou nting po li cy. The effect of the change in accounting policy was as follows:

Decrease in net income as a result of

t he change in valuation of t he investments (1,077)

Restatement of retained income of the previous year 86

1.2 Fin anc ia l in strum e nts

The Unive r-sity and its subsid iaries changed their accounti ng policy on I January 2003 in confor-mity with the new South Afr-ican Statement of

Generally Accepted Accounting Practice (GAAP) AC I 33: Recognition and Measurement of Financial Instruments. Investments "available fo r­

sale" previously shown at cost are now reva lued to fair value by app li cable valuation methods. On the initial app li cation of the new policy the

changes in the fair values of the investments wer-e charged directly to equity. The effect of the change in acounting pol icy was as follows:

Increase in fair value reserve for the year 99,715

Restatement of retained income of the previous year

Change in estimate

In the previous year invest ments were classifi ed as "available for sale" and adjustments on fair value were charged directly to equity. This year

investments are classified as "held for trading" due to t he high frequency of buying and selling of the shares w ithin the separate portfol ios.

Consequently, adjustments on fair value are charged to t he income statement The effect of th is change in estimate was as follows:

Increase in fair value adjustment in the income statement ==2=7,8,888

1.3 Investment properties

The Univers ity changed its accounting po li cy on I January 2003 in confor-mity with the South African Statement of Generally Accepted

Accounting Pr-actice (GAAP) AC 135: Investment Properties. In futu r-e, investment pmperties will be shown at mar-ket value and will be r-eva­

lued annually. The market value shown wi ll be that provided by a swom appr-aise~ The market value of the property Erf 7597 Stellenbosch

known as Lobe liahof, was estimated by the property va luers NS Terblanche and Associates (Registration number 2682) at 28 January 2004.

The effect o f the change in accounting policy was as fo ll ows:

Increase in net income for the year 639

Restatement of retained income of t he previous year 6276

59

Notes to the Consolidated Annual Financial Statements for the year ended 31 December 2004 (continued)

2. Ba lan ces of funds

The accumulated balances at 3 I December are as follows:

2004

Un-

Fair

value

Restricted restricted reserve

R'OOO R'OOO R'OOO

2003

Un-

Fair

value

Total Restricted restricted reserve

R'OOO R'OOO R'OOO R'OOO

Total

R'OOO

Educational and general 643, 149 (86,598) 50,840 607,391 478, 163 (70,020) 25,562 433,705

Student and staff accommodation

Subsidiary companies

Loan funds

661

27,466

104,661

5,786

(485)

6,447

26,981

104,661

3,396

8,605

86,967

931

(480)

4,327

8, 125

86,967 '

Endowment funds 262,632 139,956 161 ,440 564,028 287,484 162,972 I 03, 194 553,650

Fixed asset funds 12,211 61,947 684,48_2_ 6__c1_2c_,9_7_6 _ ___;__1 1"-'-,0-'-07 _ _.::_34-"-',5'-'-9-'9---"6-"-5""8,5"-'8'-=-2 610,324

I ,648,893 65,569 279,528 I ,993,990 I ,477,591 I 03,959 163,807 I ,745,357

3 . Minority In terest

Balance at beginning of the year

Reduction of interest in subsidiary

Share of net loss of the subsidiary USB Executive Development Ltd

Balance at end of the year

4 . Interest-bear ing Loans

Two loans with government at varying interest rates, repayable in equal biannual

instalments, ending in 20 12 and 20 18 respectively

Various loans with pension and pmvident funds at varying interest rates

and for various periods, repayable in biannual instalments

Various loans with insurance companies at varying interest rates and

for various periods, repayable in biannual instalments

Various loans with other financial institutions at varying interest rates and

fot' various periods, repayable in biannual instalments

Various loans with private ind ividuals at varying interest rates and for

various periods, repayable in biannual instalments

Bank facility to finance the Univet'Sity's various motor vehicle schemes

Less: Portion repayable within one year

60

2004

R'OOO

(832)

(29)

(I ,691)

(2,552)

1,994

62

22,925

89,330 .

71

32,170

146,552

( 14,967)

13 1,585

2003

R'OOO

I ,408

(570)

~~~---'(I ,670)

(832)

2,117

112

31,574

63,696

33

28,3 12

125,844

--- (9,670)_ 116,174

Notes to the Conso lidated Annual Financial Statements for t he year e nd e d 3 1 December 2004 (co nt inu ed)

5. Property, Boo ks arid Equ ipment

2004 2003

Accu- Net Accu- Net

Cost mu lated book Cost mu lated book

depreciation value depreciation value

R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

Land 7, 134 7, 134 7, 132 7, 132

Bui ldings 622,33 1 117,753 504,578 532,763 108,082 424,68 1

Computer equipment 153,662 11 9,546 34, 11 6 128, 125 9 1,977 36, 148

Other 3 17,606 201 ,826 11 5,780 288,033 170,955 11 7,078

Library books 178,647 178,647 157,534 157,534

Livestock I ,484 I ,484 1,546 1,546

I ,280,864 6 17,772 663,092 I, 11 5, 133 528,548 586,585

Land Bui ldings Computer Other Library Livestock Total

equipment books

R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

Reconcil iation of the catTying amount

Opening net book value 7,132 424,68 1 36,148 117,078 1,546 586,585

Additions/( disposals) 2 90,64 1 24,464 29,569 25,360 (62) 169,974

Depreciation per income statement (I 0,744) (26,496) (30,867) (25,360) (93,467)

Closing net book value 7,134 504,578 34, 116 11 5,780 I ,484 663,092

A register containing fu ll details of land and bui ldings is available fo r inspection at the offices of the Un iversity.

The University has ceded all its rights as a beneficiary to the income and capital of The Stellenbosch Development Trust to a finance partner for any debts of the University or The Stel lenbosch Development Trust with the finance pat-tne~ At 31 December 2004 the total liability of

The Ste ll enbosch Development Trust to the finance partner was R 17,6 mi ll ion (2003: R20,2 million), while the book value of the fixed propet-ty

in The Stellenbosch Development Trust amounted to R33,2 million (2003: R33,2 million).

Included in other assets are motor vehicles with a book value of R24,5 million (2003: R22,7 million) encumbered in terms of staff motor

veh icle schemes with various banks.

6. Long-term Investme nts

The market val ues of long-te rm investments at 31 December are as follows:

Government stock

Shat-es

- Listed shares

- Unlisted shares

Fixed deposits

Investment property

O t her

Less: Short-term investments

2004 R'OOO

13 1,883

1,084,357

I ,084,0 10

347

22,586

10,300

96 963

1,346,089

(9,530)

I ,336,559

2003 R'OOO

108,8 10

849,836

849,563

273

3 1,593

8,640

I 14 132

1,113,0 11

(6,14~

I, 106,866

61

Notes to the Consolidated Annual Financial Statements for the year ended 3 I December 2004 (continued)

6. Long-te rm Investments (continu ed )

A complete t"egister of investments is ava il able for inspection at the offices of the University. Unl isted shares, debentures and invest­

ments in fixed property are valued at book value by the Council.

All investment properties were valued at 17 January 2005 (2003: 28 January 2004) by an independent sworn valuer experienced in the revaluation of occupied apat"tment buildings.

Income received from investment properties amounts to R685,704 (2003: R676, 138).

A fixed annual amount from the Un iversity's long-term investments, R26,2 million fo r the year ended 31 December 2004 (2003: R23 ,2

million), was ceded to a finance partner fo r any debts of the University wit h the finance partner, in terms of the subletting and deposit

agreements with the finance partner. This cession wil l expire on 31 December 2008 .

Long-tet"m investments: Othet" includes the following investments in associated companies:

Name

Unistel Medical Laboratories (Pty) Ltd

Sun Space & Information Systems (Pty) Ltd

6. 1 Unistel Med ical Laboratories (Pty) Ltd

The main objective of the company is the provision of genetic,

diagnostic and test services for humans and animals

Balance at beginning of the year

Net share of profit of associate

Share of pre-tax profit

Share of taxation

Dividends received

Balance at end of the year

6.2 Sun Space & Information Systems (Pty) Ltd

The main objective of the company is the development and manufacture of micro satellites and satellite subsystems.

Balance at beginning of the year

Net share of profitJ(Ioss) of associate

Share of pt"e-tax profitJ(Ioss)

Share of taxation

Dividends received

Balance at end of the year

Total

62

Number of shares

350 I ,500

Interest

35,0%

12,8%

2004

R'OOO

892

23

23 1

(85)

(123) -------

915 -----~-

482

256

365

(I 09)

738

I ,653

Effective vote

35,0%

26,0%

2003

R'OOO

84 1

5 1

270

(96)

(123) -----

892 -----------

1,6 11

(I, 128)

(74 1)

( 198)

( 189)

483

I ,375

Notes to the Consolidated Annual Financial Statements for the year ended 3 1 December 2004 (continued)

6. Long .. term Investments (continued)

The unlisted investments are t-evalued at book value

by the directors. The assets, li abilities and profits of Unistel Medical

Laboratories (Pty) Ltd are summarised as fo ll ows:

Non-current assets

Current assets

Total assets

Long-term liabi lit ies

Current liabilities

Total liabilities

Income

The assets, liabilit ies and profits of Sun Space & Information

Systems (Pty) Ltd are summat-ised as follows:

Non-cut-t-ent assets

Cu n-ent assets

Total assets

Long-term liabi lities

Current li abilities

Total li abilities

Income

7. Rece ivab les and Prepayments

Tu ition fees

Tuitio n fees outstanding

Less: Provis ion for doubtful tuition fees

Student loans Student loans outstand ing

Less: Impairment of student loans

Less: Provision for doubtful student loans

Trade debtors Government debtot-s

Motor vehicle loans

Interest and dividends receivable on investments

Other

2004

R'OOO

660

2,248

2,908

148

148

5,562

2,388

8 274

I 0,662_

4,882

4,882

21,136

14,23 1

24,596

(10,365)

44,6 18

5 1,651

(5,483)

(I ,550)

30,852

882

14,845

8,642

19, 159

133,229

2003

R'OOO

920

2, 167

3,087

53

340

393

4,914

I ,076

____ 5292

6,341

2,563

2,563

14,002

9,8 17

18,504

(8,687)

4 1,896

43,446

(I ,550)

28,597

I ,564

I 0,956

6,079

-----~1 _9 ,6 7 4 11 8,583

63

Notes to the Consolidated Annual Financial Statements for t he year e nd ed 31 December 2004 (continued)

2004 2003

R'OOO R'OOO 8. Deferred Tax

The movement in t he deferred t ax account is as follows:

Begi nning of year 1,788 1,948

Movement during the year :

Computer softwa re (I I)

Provision for doubtful debts 37 13

Ca lcu lated assessed loss 980 663

Overprovision fo r the previous year (II) (836)

Balance at end of the year 2,783 I ,788

Deferred tax comprises t he fo llowing:

Computer software I 12

Provisio n fo r doubtful debts 50 13

Calcu lated assessed loss 2,732 I ,763

2,783 I ,788

A defetTed tax asset is t"ecognised fot" tax losses on ly to the extent of its probable recovet"ability.

Subsidiaries of t he University have deferred t ax assets of R 174,523 (2003: R 179,780) not recognised in the financial statements due to

uncertainty t"egarding the ir recoverability.

9 . Trade and Other Payab les

Tuition fees received in advance

Fore ign exchange contract liabi li ty

Salary control acco unts

Acuuals

Other

I 0. Provision for Leave Gratu it y

Reconciliatio n of provisi on fo r leave gratu ity:

Balance at beginning of the year

Movement during the year

Balance at end of the year

I I. Cap ita l Co mmitments

The following commitments existed at 3 I December in respect of capital contracts

concl uded o r orders placed with regard to buildings, li brary books and magazines:

Buildings

Library books and magazines

64

9,490

2,098

II , 164

13,723

42,602

79,077

44,3 13

3,550

47,863

78,911

2,23 1

8 1' 142

7,878

II ,376

7, 174

46,878

73,306

28,604

15,709

44,313

30,628

4, 159

34,787

Notes to the Consolidated Annual Financial Statements for the year ended 31 December 2004 (continued)

2004 R'OOO

2003 R'OOO

I 2. Staff Costs

Remuneration and fringe benefits

Provision for post-retirement medical benefits

606,059

36,580

564,130

11,924

642,639 576,054

The average number of full-time employees per month is 3,225 (2003: 2,649) .

The average number of part-time employees per month is 2,076 (2003: 3, 157).

13. Staff Costs: Executive Management

===

The following information is provided in compliance with the Higher Education Act (Act I 0 I of 1997, as amended) and the

Regulations fo t- Annual Reporting by Higher Education In stitutions (section 7.8). The amounts shown are the amounts actually paid

during the financia l year.

Name Pos ition Nature Total Period

valu e

R'OOO

Prof CH Brink Rectot- and Vice-Chancellor Remuneration I ,251 Jan - Dec 2004

Leave 56 Jan - Dec 2004

Prof E Calitz Executive Director: Finance Remuneration 976 Jan - Dec 2004

Leave 11 7 Jan - Dec 2004

Prof JF Smith Vice-Rector (Operations) Remuneration 902 Jan - Dec 2004

Leave 72 Jan - Dec 2004

ProfWT Claassen Vice-Rector (Research) Remuneration 9 11 Jan - Dec 2004

Leave 43 Jan - Dec 2004

Prof HR Batman Vice-Rector (Tuition) Remuneration 858 Jan - Dec 2004

Leave 51 Jan - Dec 2004

Prof JSA Fourie Representative of Deans Remuneration 713 Jan - Dec 2004

Leave 168 Jan - Dec 2004

Prof EC Botha Manager: Innovation Remunerat ion 720 Jan - Dec 2004

There were no extraordinary payments to executive management in excess of an average value of R249,999 for the yeat- 2004.

Payments to Counci l members for attendance of Counci l and committee meetings:

Paid to Number of members Attendance Reimbursement

of meetings of expenses

Average value Total value

R'OOO R'OOO

Council Chairperson I

Members of the Council 30 58

Council and committee members are not paid any remunet-ation for attendance of Council and committee meetings.

65

Notes to the Consolidated Annual Financial Statements for the year ended 31 December 2004 (continued)

14. Other Ope rating Costs are calcu lated after charging t he following expenses:

Depreciation

- Buildings

- Computer equipment

- Other

- Library books

Rental

- Buildings

- Equi pment

Maintenance and repairs

Auditors' re muneration

- For audit

- For other- services

- Capitalised consultation fees r-elated to computer softwar-e

- Provision for cun-ent year

Impairm e nt of loans in terms of AC 133

- Student loans

- Other

Increase in provision for doubtful debts

I S. Interest and Dividends received

Interest received - operating investments

- non-operating investments

- other

Dividends received

16. Fair Value Adjustment on Investments

Profit realised from fai r va lue r-eserve

Fair value adjustments for the year

66

2004

R'OOO

93,467

10,744

26,496

30,867

25,360

23,386

16,965

6,42 1

43,410

3,122

753

1,434

(I 00)

I ,035

5,597

5,483

11 4

1,678

27,947

24,074

13,418

25,472

90,911 ====

91,568

228,888

320,456

2003

R'OOO

88,939

( I 4,S I 3)

47,0S6

37,324

19,072

20,768

IS,614

S, IS4

39,302

2,963

739 2,224

2, I 06

36,8 11

26,184

18,436

23,311

I 04,742

IS, 191

IS, 19 1

Notes to t he Consolidated Annual Financial Statements for the year ended 3 I December 2004 (continued)

17. Reconc il iat ion: Income to cash flow:

Net income before minority inte rest pe r income statement

Adjustments for:

Fair va lu e adjustment o n investments

Interest and dividends t"ece ived

Finance charges

Profit fmm sale of property, books an d equipment

Increase in provision for leave gratuity

Increase in provision for post-retirement med ical benefits

Increase in provision for tuitio n fees and student loans

Depreciation

Foreign exchange loss

Deferred tax in subsidiary

(lnuease)/deuease in associate

Loss on sa le of pro pet"t y, books and eq uipment

Impairment of loans

Operating income before changes in operating capital

Change in operati ng capital

Increase in receivables and prepayment s

Less: Increase in debtors for investment income o utst anding

Decrease in inventories

Increase in t rade and other payables

Cash generated by opet"ation s

18. Interest Rece ived

Amount receivable at beginning of the year

Amount in income st at ement

Amount receivable at end of the year

19. D ividends Rece ived

Amount rece ivable at beginning of the year

Amount in income statement

Amount receivable at end of t he year

20. Interest Paid

Amount payable at beginning of t he yea t"

Amount in income statement

Amount payable at end of th e year

2004

R'OOO

338,5 11

(320,456)

(90,9 11 )

22, 149

896

3,550

36,580

I ,678

93 ,467

6,576

(279)

I ,903

5,597

99,261

( 13,155)

(21 ,807)

2,563

500

5,589

86, 106

5,226

65,440

7, 12 1)

63,545

853

25,472

_{1,52 1

24,804

I ,404

22, 149

22,348

2003

R'OOO

93,066

( 15, 19 1)

( I 04,742)

20,750

(5, 194)

15,709

II ,924

2, 106

88,939

17,800

160

1,077

3,233

129,637

(I 0,560)

(26,722)

999

2,024

13,1 39

11 9,077

4,899

8 1,431

81 ,104

240

23,3 1 I

853

22,698

300

2 1,854

__ (1,404)_

20,750

67

Notes to the Consolidated Annual Financial Statements for the year ended 3 1 December 2004 (cont inued)

2 1. Cash and Cash Equ iva lents

Favourable bank balances

Short-term investments as cash

Bank overdrafts

22. Financ ial Risk Management

Foreign exchange

2004 R'OOO

68,755

293,989

362,744

362,744

2003

R'OOO

58,698

316,6 12 -------

375,3 I 0

( I , I fill)_

374,130

Forwa rd foreign exchange contracts are entered into to manage exposure to fluctuations in fore ign currency exchange rates in

respect of certain transactions. A cautious approach to fo rward cover is maintained. The settlement dates on open forward

contracts at 3 I Decem be r are within one month after year-end. The Rand amounts payable and the contractual exchange rates

on fot-eign exchange contt-acts o utsta nding at year-end were :

USD [at rates averaging R7, I 192 = $1 (2003: R6,6569 = $1 )]

EURO [at t-ates averaging R8,4800 = € I (2003: R8,2635 = € I)]

6,458

9,455

6,170

9,090

I 5,913 15,260

The following current liabilities in respect of foreig n exchange transactions, as shown in the bal ance sheet, had no forward cover by

way. of foreign exchange contracts:

Foreign Rand value Foreign Rand value

exchange exchange

2004 2004 2003 2003

'000 R'OOO '000 R'OOO

Trade creditors

AUD 20 10 1

EURO 20 157 20 169

GBP 3 3 1 I 13

USD 12 1 683 53 361

Net fore ign exchange liabi lity 87 1 644

Cred it risk Potential ct-edit risk exists mainly in respect of tuition fees and student loans outstand ing, tt-ade debtors and cash resources. Students

with tuition fees outstanding of more t han RSOO and/or student loans outstanding are not allowed to register for a subsequent

academic yeat- or to receive a degree certificate. Tt-ade debtot-s consist of a large number of clients, and the ir creditworth iness is con­

tinuously assessed by the Univers ity. Cash surpluses are only invested with financial institutions of high creditworthiness by the

Universit y. The University is of the opinion that there was no material credit r isk at 3 I December 2004 that had not been adequate ly

provided for.

Interest rates T he interest rate properties of new and existing loans are reviewed continuously. Up to and including 3 I December 2004 the

University had not entet-ed into any agt-eements regat-ding intet-est rate der ivat ives. The Univers ity had the following exposure to

interest rates at 3 I December:

68

Notes to the Consolidated Annual Financial Statements for the year ended 3 1 December 2004 (continued)

22. Financ ial Ris k Management (continued)

2004

Financial asset s

Long-te rm investments

Receivabl es and prepayments

Cash and cash equ ivalents

Short-term investments

Financial liabilities

Interest-bearing loans

Post-retirement benefit li ab ili ty for medical scheme

Tt·ade and othe t· payables

Provision fot· leave gratuity

Student and ot her deposits on call

Short-tet·m portion of int erest-beari ng loans

Short-term portion of post- retirement benefit li ab ili ty

for medical scheme

Short-term instruments of debt

Net fin ancia l assets

2003

Total financia l assets

Tot al fin ancial liabil ities

Net fin ancial assets

23. Retirement Be nefits Informat ion

Average

rate

at year-end

%

6.06

11 .44

13.67

13.67

Contributions to the Associated Institutions Pension Fund (AIPF)

In terest-

bearing

R'OOO

360,863

8,354

369,2 17

13 1,585

14,967

146,552

222,665

38 1,455

129,405

252,050

Non-interest-

bearing

R'OOO

1,336,559

13 3,229

1,881

1, 176

1,472,845

24 1,985

79,077

47,863

8 16

1,353

2 325

373,4 19

1,099,426

I ,225,449

325,3 19

900, 130

The fund is administered by the State; an actuaria l valuat ion by the Univers ity is therefot·e not requ it-ed.

Contributions to the University of Stellenbosch Retirement Fund (USRF)

Total

R'OOO

1,336,559

133,229

362,744

9,530

1,842,062

13 1,585

24 1,985

79,077

47,863

8 16

14,967

1,353

2 325

519,971

1,3 22,09 1

I ,606,904

454,724

I , 152, 180

Employees who are not members of the AIPF are required to join the Univers ity of Stellen bosch Retirement Fund, w hich came into

being on I November 1994.

USRF, w hich is governed by t he Pension Funds Act of 1956, is a defined contri butio n plan for permanent e mployees of t he Un iversity.

The Fund is valued at least once every three years by independent actuaries. The actuarial shortfa ll t hat arose on conversion fmm the

AIPF was funded by the employer during 2002. Membership of USRF was 2 462 as at I January 2005. Th e rat e of contribution by

members varies between I 0% and 20% of pensionable earn ings. Th e actua t·ies have declared the Fund financ ial ly sound.

69

N otes to t he Consolidated Annual Financial Statements for the year ended 3 I December 2004 (continued)

23. Retirement Benefits Information (continued)

Post-retirement medical benefits

In li ne w ith current staff practice, contributions for reti red e mployees are made to t he medical fun d. The liability is calcu lat ed act uari ­

ally by t he independent act uaries on an an nual bas is. A full actuarial va luation was performed as at 31 December 2004. The next

actuari al va luatio n will be take place no later than I january 2006.

The actuar ial va luatio n method used is t he Projected Un it Credit met hod. The main actuarial assumptio ns are as fo llows:

- investme nt rate

- med ical infl ati o n

- salary inflation

- average retirement age

- continuatio n o n reti rement

Reconciliation of the carrying amount:

Liability at the beginn ing of t he year

Adjustments in the income st atement:

Decrease as a result of the decis ion in 200 I to phase in, over a

period of t hree years, the non-recun·ing decrease in the

pmvisio n as a result of an amendment t o the actuar ial assu mptio n

t hat t he margin between t he invest ment rat e and the medical

infl ation rat e will increase from I to 2 percentage poi nts

Decrease mainly as a result of gro up life in sur·ance not included

previously

Increase as a r·esu lt of funeral benefit not included previously

Increase as a result of medical inflatio n and increase in membersh ip

Increase as a result o f annual rout ine benefits, t he

int roductio n of flex ibility in respect o f medical savings

accou nts and t he changeover to more comprehensive

benefit p lans

Decrease as a result of t ransfe r· of Oral Medic ine t o UWC

Increase as a resu lt of li ability t o Oral Med icine

Less: Sho rt-term porti o n in respect of O ral Med ic ine

T he li ab ility at the end of t he year is made up as fo llows:

Conti nu ing mem bers

In-service me mbers

Phasing-i n of actua rial decrease

In-service member·s of Oral Med icine

2004

9,5%

7,5%

6,5%

59

100%

2004 R'OOO

206,758

235

1,430

20,223

14,395

297

243,338

I ,353}.

241,985

134,636

107,349

I ,353

243,338

The expect ed increase in the liab il ity fo r· th e next twe lve months for in-service members is R24,0 m il lion.

No asset s have been a llocated separate ly t o fu nd t he li abil ity at t he year-end.

70

2003

12,0%

10,0%

8,5%

59

100%

2003 R'OOO

194,834

(7 , 140)

18,515

(507)

·--~ 206,758

206,758

107,223

9 1 ,339

7,1 40

I ,056

206,758

Notes to the Conso li dated Annua l Financ ial Statements for the year ended 3 1 December 2004 (co nt inu ed)

24. In come Tax

The Univet-sity is exempt fmm normal income tax in terms of section I 0( I )(cA)(i) .

25.Re lated Party Transactions

Transactions w ith re lated parties include payment for admin istrative services and finance charges as well as investment income earned .

During the year the University and its subsidiaries entered into mutua l agreements, as wel l as agreements with other interested par­

ties, in the ordinary course of bus iness. Al l of these transactions were concluded at market-re lated prices.

During the year no interested parties had any material interest in any significant agreement, w ith either the University or any of its

subsidiaries, that could give rise to a conflict of interest.

The following related party transactions were concluded between Ste llenbosch Univers ity and USB Executive Development Ltd (sub­

sidiary company):

Consultancy fees

Renta l paid

Leasing of equipment

Leasing of bu ildings

Entertainment costs

Travelling expenses

Membership fees

Adm inistrative services

Interest paid

Interest received

The following net amounts were outstanding at year-end

2004

R'OOO

19,265 1,079

46 1

2,354 4,498

5 1 3,800

854 (607)

10,604

2003

R'OOO

7,112

327

326

642

1,313

679

5

906

644

(535)

3,276 ==----=-~ -~=

26. Contingent Liab ili t ies

Public liability claims are handled by the insurers, Alexander Forbes. The maximum exposut-e to such claims amounted to R249,878 at

year-end.

A letter of credit for R I ,82 million ($321 ,663) for the purchase of psychiatric equ ipment was outstanding at year-end w ith First

Nationa l Bank.

The Univet-sity guarantees a percentage of balances outstanding on mot-tgage loans of qualifying employees. The maximum exposure

amounted to R90,274 at year-end.

The University has undet-taken to provide cet-tain of its subsidiar ies with financia l support, where necessary.

71

Stellenbosch University

Victoria Street, Stellenbosch

Pt"ivate Bag X I, Matieland, 7 600

Tel.: 02 1 808 9 I I I

Fax: 021 808 4499

Web address: http:/ /www.sun.ac.za

E-mail : webi nfo@maties.sun.ac.za

Design and layout Out of the Blue Creative Communication Solutions

Photography: Anton Jordaan (SSFD), Erhardt Thiel

Aud itors: PricewaterhouseCoopet"S Inc., Ste ll enbosch

Printer : Mills Litho

72