2022 Annual Report

2022 annual report

The Cape Peninsula University of Technology (CPUT) is the second largest University of Technology (UoT) in South Africa, with more than 30,000 students across its six faculties. This vibrant, culturally diverse, multi-campus entity is the largest higher education institution in the Western Cape.

CPUT was established in January 2005, when the Cape Technikon and Peninsula Technikon merged. The commencement phase of the newly formed CPUT focused on trying to forge a new identity for the merged university; followed by the drafting of CPUT’s first strategic plan, called Vision 2020.

The idea of establishing itself as One Smart CPUT (Vision 2030) was conceived in November 2017. This vision was influenced by the rise of 4IR, AI, and the explosion of education technological developments and opportunities, as well as the National Development Plan and the United Nations’ adopted Sustainable Development Goals. It was agreed that the next phase (2021–2030) should be crafted with a view towards building One Smart CPUT – with the focus on “oneness” and “smartness”.

2022

annual report

General Information

Registered address

Cape Peninsula University of Technology

PO Box 1906

Bellville, 7535

Tel. +27 (0)21 959 6911

Physical address

Cape Peninsula University of Technology

Administration Building, Symphony Way

Bellville South, 7530

Website address

www.cput.ac.za

Bankers

ABSA

Auditors

External auditors

Ernst & Young Incorporated

Waterway House, No. 3 Dock Road

V&A Waterfront

Cape Town, 8000

Tel. +27 (0)21 443 0200

Internal auditors

BDO Advisory Services (Pty) Ltd

6th Floor, 119–123 Hertzog Boulevard, Foreshore

Cape Town, 8001

PO Box 2275

Cape Town, 8000

Tel. +27 (0)21 417 8800

www.bdo.co.za

Attorneys

Adriaans Attorneys

17th Floor, 2 Long Street

Cape Town, 8001

Tel. +27 (0)21 801 5240

Bisset Boehmke McBlain

4th Floor, 45 Buitengracht Street

Cape Town, 8001

Tel. +27 (0)21 441 9800

Bradley Conradie Halton Cheadle

Unit G04, The Gatehouse, Century Way

Century City, 7441

Tel. +27 (0)21 418 2196

Cheadle Thompson & Haysom Incorporated

28th Floor, The Box

9 Riebeek Street

Cape Town, 8001

Tel. +27 (0)21 418 2278

Cliffe Dekker Hofmeyr Incorporated

11 Buitengracht Street

Cape Town, 8001

Tel. +27 (0)21 405 6066

Fairbridges Wertheim Becker

22nd Floor, Portside Building

5 Buitengracht Street

Cape Town, 8001

Tel. +27 (0)21 405 7300

Gunston Strandvik Mlambo

Block A, Silverwood

Steenberg Office Park

Tokai, 7945

Tel. +27 (0)21 702 7763

John McRobert Attorneys

Study Villa, 32 Study Street

Flamingo Vlei

Table View, 7441

Tel. +27 (0)21 556 6206

Norton Rose Fulbright Incorporated

9th Floor, 117 on Strand

117 Strand Street

Cape Town, 8001

Tel. +27 (0)21 405 1200

Riley Incorporated

212 Rosmead Avenue

Wynberg, 8001

Tel. +27 (0)21 797 7116

TNK Attorneys

1st Floor, Beadica House

12 Protea Road

Claremont, 7725

Tel. +27 (0)21 712 9851

Walkers

9th Floor, The Terraces

34 Bree Street

Cape Town, 8001

Tel. +27 (0)21 464 1400

1 Report of the Chairperson of Council

Report of the Chairperson of Council

It is my pleasure to deliver this first Annual Report as the new Council Chair of the Cape Peninsula University of Technology (CPUT). Along with the new Deputy Chairperson, Dumisani Gumbi, as a Council, we are committed to ensuring CPUT continues its course to greatness and realising its vision of One Smart CPUT. Our main responsibility is to ensure that the 35,000 students who have selected us as their academic leaders graduate on time, with a well-regarded qualification that helps them shape a better world for all of us.

My mandate is clear, ‘as a public university, we will rise above vested interests, and serve the broad and urgent needs of South African society, by preparing ethical and competent graduates with resilience and problem-solving abilities, who contribute to sustainable development in a rapidly changing country and world’.

Both the Deputy Chairperson and I have years of experience serving on the CPUT Council, and we commend the ViceChancellor, Prof Chris Nhlapo and his Executive Team for always prioritising good governance, and placing the people of CPUT at the centre of all decision making. It is our intention, as Council, to nurture and support these insightful leaders, and ensure that even more tangible improvements are made to the good governance of the Institution.

Ethical governance starts within Council; its members serve without financial reward, often enduring challenging circumstances. I am grateful for their commitment, diligence, and perseverance. Under my stewardship, Council will remain compliant to the statutes that govern the Institution at all times. This will happen by ensuring:

1. The University complies with governance prescripts;

2. Committees of Council follow their mandates in a clear and consistent way, without any consideration of personal interest; and

3. Impeccable record keeping, making sure that all decisions are mandated and within our authority.

As we prepare ourselves for leading into the next decade, we are guided by the newly refreshed Vision, Mission, and Core Values of CPUT.

Vision

CPUT is Africa’s leading Smart University of Technology, globally renowned for innovation, with graduates that shape a better world for humanity.

Mission

CPUT transforms its students, through world-class researchers who inspire knowledge production and innovation that is cutting edge.

Core Values – CPUT agrees to Oneness and Smartness by:

• Embracing a culture of ethics and integrity;

• Seeking kindness and showing compassion to all staff, students and stakeholders of CPUT;

• Embracing restoration and addressing any issues of discrimination;

• Embracing unity and diversity;

• Showing passion and always searching for better ways of doing things;

• Taking accountability and accepting responsibility; and

• Being technologically astute.

Considering the above, our explicitly stated commitments, I have no doubt that CPUT can, and will, achieve more to prepare our graduates for their important and constructive roles in the world. Ultimately, we are merely the guardians of a University which must outlive us all and continue to serve the people of South Africa. Council will play its role, and I believe that the various stakeholders who all have the best interests of CPUT at heart, will also rise to the occasion and do what they can to achieve the Smartness and Oneness to which we aspire.

Chairperson of Council Dr

LF Platzky

2 Meetings of Council

Acronyms

AROC Audit and Risk Oversight Committee of Council

CStratPlan Council Strategic Planning Workshop

Exco Executive Committee

FinCom Finance Committee

GEC Governance and Ethics Committee

HRCC Human Resources Committee of Council

InvCom Investment Committee

ITGov IT Governance

JFAC Joint Finance and Audit Committee

JPPSSC Joint Physical Planning and Student Services Committee

PPCC Physical Planning Committee of Council

RemCoS Remuneration Committee of Senate

spExco Special Executive Committee

spHRCC Special Human Resources Committee of Council

spIF Special Institutional Forum

spS Special Senate

spSSC Special Student Services Committee of Council

SSC Student Services Committee of Council

SSCSA Search and Selection Committee for Senior Appointments

2022 list of council members, including meeting attendance

Kioko, J Lebethe, R Maharaj, S Mapena, W Mapoma, Z Mashiloane, T Mashwanyela, C Maseko, JM Matiwane, S Msomi, V Mtimde, L Ngwenya, N Ngxiza, S Nhlapo, C Nicholls, R Nkonki, D Nkwana, S Nyangiwe, A Patel, K Phaho, D Platzky, L Qegu, N Raji, A Roberts, S Schreuder, B Socikwa, L

3 2022 Members of Council

Chairpersons

Adv Z Mapoma (With effect from 12 March 2018) (Chairperson of Council with effect from 29 August 2020 (Term ended 31 August 2022)

Dr LF Platzky (Term renewed with effect from 1 October 2022) (Chairperson of Council with effect from 22 October 2022)

Deputy Chairpersons

Dr LF Platzky (With effect from 1 September 2018) (Deputy Chair with effect from 28 November 2020 until 31 August 2022)

Mr D Gumbi (With effect from 1 September 2018) (Term renewed with effect from 1 October 2022) (Deputy Chairperson of Council with effect from 22 October 2022)

Ministerial Appointees

Mr S Ngxiza (Term ended 31 August 2018) (renewed with effect from 5 September 2018) (Term ended 31 August 2022)

Adv Z Mapoma (With effect from 12 March 2018) (Term ended 31 August 2022)

Mr R Easthorpe (With effect from 5 September 2018) (Term ended 31 August 2022)

Ms R Lebethe (With effect from 24 July 2019) (Term ended 31 August 2022)

Ms N Qegu (With effect from 25 February 2019) (Term ended 31 August 2022)

Ms N Dondashe (With effect from 1 September 2018) (Term renewed with effect from 1 October 2022)

Mr WL Mapena (With effect from 1 October 2022)

Mr S Maharaj (With effect from 1 October 2022)

Dr LF Platzky (Term renewed with effect from 1 October 2022)

Mr S Faku (Term renewed with effect from 1 October 2022)

Convocation Representatives

Mr A Nyangiwe (With effect from 7 September 2019) (Term ended 31 August 2022)

Mr S Matiwane (With effect from 7 September 2019 until 31 August 2022)

Council Appointees

Ms N Dhevcharran (Term ended 31 August 2018) (Renewed with effect from 1 September 2018) (Term ended 31 August 2022)

Mr B Hadebe (With effect from 1 September 2018) (Term ended 31 August 2022)

Ms K Dilotsotlhe (With effect from 29 August 2020) (Term ended 31 August 2022)

Mr D Gumbi (With effect from 1 September 2018) (Term renewed with effect from 1 October 2022)

Dr L Groenewald (With effect from 1 September 2018) (Term renewed with effect from 1 October 2022)

Mr S Faku (With effect from 20 March 2021 until 31 August 2022)

Mr S Matiwane (Term renewed with effect from 1 October 2022)

City of Cape Town Appointees

Councillor F Ah-Sing (With effect 1 September 2018) (Term ended 31 August 2022)

Councillor A Elyas (With effect from 1 October 2022)

Business Representative

Adv D Yach (With effect from 1 September 2018) (Term ended 31 August 2022)

Mr M Cullinan (With effect from 1 October 2022)

Provincial Government Appointees

Dr LF Platzky (With effect from 1 September 2018 until 31 August 2022)

Mr BK Schreuder (With effect from 1 October 2022)

Executive Management

Prof C Nhlapo (Vice-Chancellor)

Prof R Balkaran (Deputy Vice-Chancellor: Teaching and Learning)

Dr D Phaho (Deputy Vice-Chancellor: Research, Technology Innovation and Partnerships) (Term ended 31 August 2022)

Senate Representatives

Prof J Kioko (Term ended 31 August 2018) (Re-elected with effect from 1 September 2018 until 31 August 2022)

Prof P Green (With effect from 26 March 2022) (Term renewed with effect from 1 October 2022)

Prof AK Raji (With effect from 1 October 2022)

Academic Employee Representatives

Ms C Helsby (With effect from 1 September 2018) (Term ended 31 August 2022)

Dr V Msomi (With effect from 1 September 2018) (Term ended 31 August 2022)

Dr J Jordaan (With effect from 1 October 2022) (Resigned with immediate effect on 31 January 2023)

Non-Academic Employee Representatives

Mr S Nkwana (With effect from 1 September 2018) (Term ended 31 August 2022)

Mr C Mashwanyela (With effect from 1 October 2022)

SRC Representatives

Mr N Codana (With effect from 19 March 2021) (Term ended 31 August 2022)

Ms N Ganyile (With effect from 1 January 2020) (Term ended 31 August 2022)

Executive Management in Attendance

Prof G Mayende (Deputy Vice-Chancellor: Operations)

Mr SS Mokoena (Registrar & Secretary of Council)

Mr P Du Plessis (Executive Director: Finance)

Ms P Coopoo (Dean of Students) (Retired with effect from 21 July 2022)

Ms N Tyolwana (Acting Dean of Students) (With effect from 21 July 2022)

Prof HR Hay-Swemmer (Executive Director: Office of the Vice-Chancellor)

It should be noted that there were oversight challenges in the implementation of the transitional provisions contained in Chapter 10 of the CPUT Statute (published in the Government Gazette No. 46382 on 26 May 2022). The processes required for the election of new members of Council, the Convocation, and other related structures, regrettably commenced too late during the transition period stipulated in the new Statute. Consequently, from 1 September 2022, the governance of the University entered into a lacuna until 22 October 2022, when the newly elected Council was considered adequately constituted.

Chairperson of Council Dr LF Platzky

Registrar

Mr SS Mokoena

4 Vice-Chancellor’s Report on Management and Administration

Every day, I am acutely aware that behind the remarkable success and accolades of the Cape Peninsula University of Technology (CPUT) during the last year, are thousands of people: academics, students, support staff, alumni, industry partners, funders, and Government.

“It takes a village to raise a child”, is an ancient African proverb. It means that all the parents in a village are honoured to take a role in helping to raise the child of a parent whose work or other chores may keep them away from their parental duties. This is equally true of a university: it takes the collective wisdom and commitment of a university community to inspire and achieve greatness, and to deliver smart graduates to the ever-changing world of work.

During 2022, I realised once again that universities should be places that thrive on constant renewal; fueled by the inventive perspectives and inspired ambitions of students, staff, alumni, and friends. I can say with great certainty that the Cape Peninsula University of Technology has become such a university. Without any doubt, the past year has prompted not only CPUT, but all higher education institutions, to reevaluate the ways they teach, learn, work, and explore. At this point of our existence, it is important that we embrace new opportunities to strengthen the relationship between insight, values, and focus; to advance CPUT’s fundamental goals; stay connected to our purpose to create futures; and being an anchor in our immediate communities and those communities our students are coming from.

Financial sustainability

I am proud to say that CPUT’s finances are healthy as a result of financial discipline and financial acumen. With the support of the CPUT Finance Committee (FinCom), the Investment Committee, and the role played by the Audit and Risk Oversight Committee (AROC), CPUT’s finances are on a strong footing. This is clear in our annual financial statements and unqualified audits. CPUT, furthermore, has successfully reorganised the Institution’s investment reserves to better match the terms of funding to the underlying commitments, like post-retirement medical aid benefits.

CPUT’s cash flow is healthy because of improved engagements between National Government and National Student Financial Aid Scheme (NSFAS). As a result, the Institution has been able to address some backlog maintenance, including the revitalising of its Student Housing Plan.

During the year under review, CPUT continued to upgrade its information technology (IT) infrastructure and software suite to meet the demands of multimodal learning and a workforce working remotely from time to time. Simultaneously, IT security was strengthened to mitigate the increased cyber security risk introduced by remote working. In response, a sizeable portion of the 2021–2022 Internal Audit Plan was assigned to IT governance, information security, and IT resilience. The Information Technology Governance Committee of Council provides oversight of the IT control environment, including the implementation of the IT Strategy.

We continue striving to become more environmentally friendly (e.g. the installation of world-class LED floodlights for the Bellville Campus’ stadium; a new waste disposal policy; and the installation of water meters).

A maturing Enterprise Risk Management environment

I am proud to report that the Enterprise Risk Management (ERM) function has matured significantly over the last year. Several initiatives were implemented to continuously improve on CPUT’s risk governance arrangements.

The Council-approved Risk Management Policy provides direction for all ERM activities and initiatives, and is aligned with the Vision 2030 Strategic Plan. The University’s Senior Management contributed to the development of an in-house ERM Maturity Assessment Framework, which was approved by AROC, assisting in risk diagnostics and gap analysis initiatives to improve the risk intelligence capabilities of the Institution. During 2022, efforts were made to further embed risk into strategic planning initiatives by including risk information into strategic plans across all areas of the Institution.

During the reporting period, the University started the implementation of leading practice tools, techniques, and concepts to augment its risk review initiatives. The tools include risk and control self-assessment (RCSA), ethics risk assessment, financial ratio analysis (as part of balance risk management), and scenario and sensitivity analysis (including stress testing of financial statements for financial sustainability). The bowtie methodology and use of heat maps continued to add further depth to risk reviews across the Institution.

New academic programmes

During 2022, CPUT concluded the Higher Education Qualifications Sub-framework (HEQSF) alignment process. CPUT, like many universities of technology (UoTs), was heavily affected by the HEQSF implementation, in which many of the programmes required major curriculum development that constitutes 50% or more change to the programme design. Programmes that could not be aligned with the HEQSF, and which needed to be phased out or replaced (e.g., BTech qualifications, and other Category C non-aligned qualifications) had to be phased out and replaced with appropriate qualifications that were aligned to the HEQSF. The University needed sufficient time to make transitional arrangements in relation to existing programmes, as well as to coordinate the process for the development of new qualifications; however, the delay in the approval and accreditation of the HEQSFaligned programmes have presented a serious challenge for the University to meet its enrolment targets.

I am delighted to report that all the new qualifications that were submitted during the reporting period (2015–2020) have been updated on the Programme and Qualification Mix (PQM). From the total of 133 new applications, only one qualification was still pending South African Qualifications Authority (SAQA) registration, by the end of the 2022 academic year.

CPUT’s Ethics Framework

As always, I cannot pass an opportunity to emphasise the importance of an ethical university administration, with all its various functions and practices. Our Combined Assurance Model is highly valued by the CPUT Council as a key driver in ensuring that CPUT will not fall prey to procurement malpractices, nepotism, or any other form of corruption. Each internal report is verified, and forms part of the Executive Members’ Key Performance Areas. To date, no irregularities were found in CPUT’s procurement processes.

Sound stakeholder engagement

As I am reflecting on the year 2022, I vividly remember the criticism received from the Parliament Portfolio Committee for Higher Education. Today, I am proud to say that CPUT has sound relationships not only with the Parliament Portfolio Committee, but also with the Department of Higher Education and Training (DHET), the Council on Higher Education, the Higher Education Quality Committee, professional bodies, as well as local and provincial structures.

The implementation of the Stakeholder Engagement Position Paper, reviewed and approved by Council in 2021, is well under way. The Office of the Vice-Chancellor engaged with various internal and external stakeholders of CPUT in this regard.

Highlights of 2022:

Student Representative Council (SRC) leadership engagement

The first engagement organised for 2022 was with the SRC leadership in February 2022. The SRC leadership collectively raised matters of concern, and had an opportunity to engage with me on those issues.

Businesses and industries engagement

In June 2022, I introduced my Executive Management to the Chief Executive Officers (CEOs) and managers of various businesses and industries at a hybrid event with close to 300 participants. An opportunity for questions and answers was afforded to the participants, and pertinent questions, like graduate employability, were raised.

National Mandela Day

In celebration and observation of the former and first Black president of South Africa, Tata Nelson Mandela’s birthday, our Executive Team and staff visited the elders at Ilitha Labantu in Gugulethu. During this visit, the organisation – which provides vital services to women and children affected by violence – was presented with a donation towards winter blankets, and the CPUT delegation lent a hand in the kitchen and garden.

International students’ engagement

More than 100 international students were engaged on their needs and desires during one of my engagements with them, and I can report that this was indeed a fruitful discussion – with issues raised, being addressed.

Eskom–SARETEC collaboration

On 23 September 2022, CPUT signed a memorandum of understanding with South African Renewable Energy Technology Centre (SARETEC) for the training and upskilling of Eskom employees at the Komati Power Station in Mpumalanga.

Providing accommodation for students in need

The University is acutely aware of the need to have more and quality accommodation for students. In 2022, CPUT indeed showed its commitment to ensuring more students are placed in either university accommodation, leased accommodation, or accredited accommodation. Presently, CPUT’s provision for students in- and off-campus is above the norms set by DHET (30% of first-year students to be in residences).

Responsiveness to gender-based violence (GBV)

During the time of reporting, several security upgrades on all CPUT campuses were conducted. Significantly, the installation of a ClearVu fence at the District Six Campus, and an improvement in lighting, have alleviated security concerns there. This was done to respond, amongst others, to GBV incidents on campuses, as well as to ensure all staff and students’ well-being and safety on campus. CPUT has a progressive position statement on GBV, which holds all staff and students to account, and guides institutional responses to incidents. A GBV telephone number and stronger campus access controls have been implemented. The topic is also being kept in the university consciousness through the hosting of GBV dialogues, which helps in airing student concerns, and funnelling help to those who need it.

Most recently, CCTV cameras were installed on all our campuses, linked to a central control room. With the use of modern technology, CPUT is in a much better position to monitor safety on campuses, and to prevent criminal activities or harm to any one of our staff and students.

Human resources and talent

The CPUT Council takes the University’s Employment Equity (EE) targets seriously, and this is now reflected in its staffing profile. The EE Forum is an active forum, where employment equity issues are discussed. This Committee regularly tables reports to the various committee structures. Annual EE reports, as submitted to the Department of Labour, were not only approved by Council, but were backed with good advice and support.

CPUT believes in the development of all staff, and this philosophy is endorsed by Council. The University supported several CPUT academics to enrol for a programme aiming to advance participants’ understanding of the importance of the Scholarship of Teaching and Learning. We are confident that these academics will become change agents and transform teaching and learning in their respective faculties.

Convocation in place

I am happy to report that CPUT now has a Convocation in place, with an Executive Committee which meets quarterly. During 2022, Convex members were inducted. We are beginning to reap the fruit of a conducive relationship with Convocation, and already notice that a culture of giving to CPUT is emerging.

I often ponder the words of our beloved late President, Nelson Mandela, who said: “A leader… is like a shepherd. He stays behind the flock, letting the nimblest go out ahead, whereupon the others follow, not realising that all along they are being directed from behind.” That is indeed the kind of leader we should all aspire to be.

Conclusion

In conclusion, I realise that CPUT is on a never-ending journey of exploration, and I know it will always be an integral element of the University, and will continue to define our extraordinary path into the future.

Yours sincerely,

Vice-Chancellor and Principal Prof NC Nhlapo

5 Performance Assessment Report

Strategic Plan 2021–2030: One Smart CPUT

The Strategic Plan 2021–2030, known as One Smart CPUT, establishes seven strategic focus areas that serve as broadbased, long-term objectives. These objectives are designed to propel the Cape Peninsula University of Technology (CPUT) into becoming Africa’s leading Smart University of Technology (UoT), globally recognised for its innovation, and producing graduates who contribute to shaping a better world for humanity. Two primary objectives are at the core of executing the strategic mission, while the remaining five objectives provide support. These objectives have been developed to ensure operational alignment and resource planning in support of the academic projects, “Smart Teaching and Learning Environments”, and “Smart Research, Technology Innovation, and Partnerships (RTIP) that is relevant and has impact.”

Institutional Strategic Planning Committee Workshop

To reflect on significant achievements, challenges, and experiences, and to reinforce the established objectives, CPUT hosted a three-day Institutional Strategic Planning Committee Workshop from 16–18 November 2022. The workshop’s theme, “Open Reporting to Promote Accountability, Transparency, and ‘Oneness’”, focused on conducting a high-level review of the implementation of Vision 2030 (V2030). The workshop aimed to address key questions, namely:

1. What progress have we made in the implementation of the strategic goals and objectives outlined in V2030 over the past 12 months?

2. What limitations, challenges, and milestones have we encountered, and how have they impacted our environment?

3. What priorities should we emphasise, what aspects should we remove, and what new elements should we add to the Strategic Plan?

Workshop preparation and reporting

Ahead of the workshop, a template was distributed to capture the overall performance against the seven focus areas, goals, and objectives. These reports provided a high-level overview of areas requiring continued attention, while also highlighting achievements realised during the 2022 academic year. With an ambitious strategy in place, the primary purpose of these reports was to ensure consistent monitoring of progress toward the set objectives. Additionally, they aimed to identify areas where progress may have been slower, and extract valuable lessons from these experiences.

Summary of progress in 2022

CPUT has made significant progress in achieving its strategic goals, and continues to prioritise innovation, research, collaboration, and student-centred education. A comprehensive summary of the achieved and ongoing activities follows:

Achieved activities

• Transformation through Knowledge Production and Innovation: CPUT has implemented its Strategic Plan 2021–2030, focusing on transforming students through knowledge production and innovation. This initiative aims to equip students with the skills and mindset needed for the rapidly evolving future.

• Learning Platform Deployment: The deployment of the LinkedIn Learning platform has provided staff and students with access to a wide range of learning content, enhancing their professional development and knowledge acquisition.

• Cyber Security Strategy: CPUT has implemented a comprehensive Cyber Security Strategy, which includes awareness programmes and measures to ensure data protection. This initiative aims to safeguard sensitive information, and promote a secure digital environment.

• Software and Infrastructure Upgrades: Upgrades have been made to software systems and infrastructure, including the Enterprise Resource Planning (ERP) system, Local Area Network (LAN) and Wide Area Network (WAN) infrastructure, and the implementation of an Electronic Documents and Records Management System (EDRMS). These enhancements improve operational efficiency and data management.

• Staff Development Academy and Asset Management: The development of the Staff Development Academy portal and the Laptop Inventory System has improved asset management, and streamlined staff development processes.

• Research Excellence: CPUT has seen an increase in the number of National Research Foundation (NRF) rated researchers, indicating a growing research capacity within the Institution.

• Workflow Automation: Workflow automation initiatives have been implemented to streamline processes, and

improve operational efficiency, leading to enhanced productivity and resource utilisation.

• International Collaborations and Partnerships: CPUT actively engages in international collaborations and partnerships, participating in projects like the SASUF 2030 initiative, and contributing to various conferences and forums. These collaborations foster knowledge exchange, and contribute to CPUT’s global presence.

Ongoing activities

• Smart Teaching and Learning: CPUT continues to focus on smart teaching and learning by exploring alternative learning solutions, leveraging technology to enhance educational experiences, and adapting to changing pedagogical approaches.

• Research and Interdisciplinary Initiatives: The University is committed to strengthening research capabilities and fostering interdisciplinary initiatives. This includes establishing research chairs, and collaborating with international institutions to address complex global challenges.

• Employability and Industry Partnerships: CPUT places a strong emphasis on enhancing the employability of its graduates. Through work-integrated learning, entrepreneurship development, and industry partnerships, students gain practical skills and connections that enhance their career prospects.

• Data Integrity and Talent Management: Ongoing efforts are made to ensure data integrity, and to implement effective talent management strategies in Human Capital management. This includes processes to maintain accurate and reliable data, and strategies to attract, develop, and retain talented individuals.

• Internationalisation and International Partnerships: CPUT continues to promote internationalisation by engaging with international students, providing a multicultural learning environment, and fostering collaborations with global institutions. These initiatives contribute to the University’s global outlook, and prepare students for a globalised world.

• Sustainability: CPUT places a strong emphasis on sustainability, actively engaging in initiatives related to climate change, global health, and environmental issues. The University strives to promote sustainable practices, and raise awareness among its community.

CPUT’s achievements and ongoing activities demonstrate its commitment to innovation, research, collaboration, and student-centred education. The Institution is dedicated to fostering a conducive learning environment, preparing students for the future, and making a positive impact locally and globally.

Expanded strategic focus areas, goals, and objectives

The table below presents the expanded strategic focus areas, goals, and objectives of the Strategic Plan 2021–2030: One Smart CPUT, along with the progress made in 2022:

Objectives

A SMART CTS ENVIRONMENT AND CTS WORKFORCE

Goal

Ensure that CTS will support CPUT’s core functions through a highly effective and secured technology platform

Provide computer and telecommunications services (CTS) that will support and enhance smooth student administration and recruitment, student placements (also in residences), and key academic support programmes for students and staff, including for postgraduate students and research

Key Performance Indicators as per Annual Performance Plan (APP)

Operational efficiency

Play a leading role in creating awareness of technological advancements and how they can enhance/enrich the total student experiences of CPUT’s students, and assist all staff in working smarter and more productively

Quality and appearance of CPUT’s learning spaces/ environment and online platform

Ensure CTS supports the enhancement of research outputs, scholarship, and community engagement activities/projects

Support, upgrade, and enhance current administrative/business and governance processes tools

Quality of data to take informed decisions

Operational efficiency

Ensure that CPUT is secured from cyber security threats

Information security and protection, in adherence with regulations and legislation (e.g., POPI Act)

Recruit and retain highperforming CTS staff that will contribute in establishing One Smart CPUT

Trained and capable CTS support

Progress

• Ongoing: Upgrades to software systems that support core university processes are planned according to current timelines. In 2023, the Institution will update the ERP system.

• Ongoing: The University’s IT department, Computer and Telecommunications Services Department (CTS), is engaging with business stakeholders to develop a 360-degree view dashboard project. This project aims to provide data analytics capabilities for informed decisionmaking. The dashboard functionality is expected to be operational by 2023.

• Ongoing: The CTS Strategy has been created and approved. Currently, operational models and organisational structures are being developed to align with the approved strategy.

• Ongoing: Technological solutions that align with business requirements are implemented to support the University’s objectives.

• Ongoing: The Blackboard Learning Management System (LMS) currently includes the desired functionality. However, alternative solutions are also being explored.

• Ongoing: Projects are in progress to upgrade the Local Area Network (LAN) and Wide Area Network (WAN) infrastructure across all CPUT campuses.

• Ongoing: The CPUT Records and Archives department is in the final stages of the tender process for implementing an Electronic Documents and Records Management System (EDRMS).

• Achieved: A Laptop Inventory System has been developed to ensure efficient utilisation of CPUT assets. Additionally, an asset management system has been implemented.

• Achieved: The deployment of the LinkedIn Learning platform has been completed, granting staff and students access to a diverse range of learning content to enhance their skills across various disciplines. Additionally, Gartner research material and related content are available to all staff.

• Ongoing: Projects supporting this objective include the Smart Classroom Initiative, which is focused on integrating technology into classrooms. Workshops are being conducted to ensure pedagogical principles underpin this initiative. CTS is currently exploring Virtual Desktop Infrastructure solutions to extend hardware lifecycles.

• Achieved: Blackboard is currently in use, and is actively supported by the E-Learning/CIET Team.

• Ongoing: The Human Capital Department, in collaboration with CTS, is in the process of implementing the Staff Development Academy portal. This portal aims to support staff in various training initiatives. Furthermore, the LinkedIn Learning platform has already been deployed to provide staff and students with access to a wide range of learning content across different disciplines.

• Achieved: The HDC portal upgrade project, specifically for the Centre for Postgraduate Studies, is currently in progress.

• Achieved: The Converis Research Platform is currently operational.

• Achieved: CTS successfully provides IT/technology support for all core administrative processes within the University.

• Achieved: Several workflow automation initiatives are currently underway to streamline CPUT processes. These initiatives include the development of functionality such as Bulk Printing Requests, Vaccine Application system, Online Elections system, and planned expansion of Chatbot functionality in 2023.

• Ongoing: Additional workflow automation initiatives are in progress to automate CPUT processes, aiming to reduce the carbon footprint associated with traditional paper-based processes. These initiatives include the implementation of the EDRMS, and enhancements to the online application process through the inclusion of a Document Viewer.

• Ongoing: CTS continues to engage with business stakeholders regarding the development of a 360-degree view dashboard project. This project aims to provide data analytics capabilities to support informed decision-making. Additionally, CTS is developing internal capacity by providing data/business analytics training to ensure staff members are adequately skilled.

• Achieved: The Cyber Security Strategy has been approved, and the implementation of related plans is currently in progress.

• Ongoing: The University is currently engaged in procuring necessary hardware and software to actively address cyber risks, and enhance cyber security measures.

• Achieved: CTS has successfully implemented a comprehensive Cyber Security Awareness Programme for all staff members. This programme includes security modules that focus on addressing current cyber threats.

• Ongoing: CTS has initiated new projects that offer staff members opportunities to engage with innovative technologies. These projects include Robotics Process Automation (RPA), cloud-based technologies, cyber security platforms, and more. Through these initiatives, staff can work with and explore the potential of cutting edge technologies.

Computer and telecommunications services on page 51 and 53

Computer and telecommunications services on page 51 and 53

Computer and telecommunications services on page 51 and 53

Computer and telecommunications services on page 51 and 53

Computer and telecommunications services on page 51 and 53

Objectives

SMART TEACHING AND LEARNING AND LEARNING ENVIRONMENTS

Goal

Becoming the leading UoT in smart teaching and learning, and being on the forefront of creating smart learning environments that will provide excellent and relevant content and learning experiences for all CPUT students

Develop programmes that will prepare students for the future

Key Performance Indicators as per Annual Performance Plan (APP)

Relevance and excellence of the academic products and services

Review and adjust teaching methodologies and delivery modes, in line with CPUT’s graduate attributes

Student readiness for the world of work

The employability of CPUT graduates and the quality of our graduates

• Access: Headcount Totals

• First-Time Entering Undergraduates

• Foundation First-Time Entering Undergraduates

• Headcount Enrolments Total UG

Progress status

New and current programmes at CPUT have been reviewed to address 4IR demands (AI, robotics, cyber security), and global challenges (big data, global health issues, climate change, sustainability, food security).

The goal is to ensure programme relevance, high demand, and increased employability for CPUT graduates. Programmes that are no longer in demand will be phased out.

Regular discussions with industry leaders and professional bodies help inform programme development, and alignment with industry needs.

Achievements include transitioning from lecturer-centric to student-centric approaches, and incorporating problem-based and case-study methodologies.

The LMS has been optimised for student success.

CPUT has established a research chair in smart-university digital pedagogy. The curriculum approach and philosophy have been aligned with smart learning spaces, library services, campus spaces, residences, and lecturer venues to enhance the learning experience.

CPUT has implemented various initiatives to promote employability and facilitate engagement with the world of work. These initiatives include:

• Work-Integrated Learning (WIL) and Service-Learning (SL) programmes, providing students with practical experience and opportunities to apply their skills in real-world settings;

• Entrepreneurship Development programmes, fostering an entrepreneurial mindset among students, and equipping them with the necessary skills to start their own businesses;

30–31

HEQSF-Alignment Project and new qualifications on page 47

Performance assessment on access table on page

Objectives

SMART RTIP THAT IS RELEVANT AND HAS IMPACT

Goal

To increase CPUT’s trans-/multiand interdisciplinary focus on Mode 2 and 3 knowledge production through strategic research initiatives to develop smart technology driven solutions

Develop the research capacity of a future generation of researchers/ scholars, and innovators, putting CPUT at the forefront of innovation in its broadest sense

Key Performance Indicators as per Annual Performance Plan (APP)

Increased visibility and international acclaim for CPUT research, technology and innovation

Increase in number of rated scientists, research outputs, registered patents, spin-off companies, and recognition for research excellence

Relevance and uptake of CPUT’s research outputs (impact)

Develop relevant research focus areas and strengths, with continuing emphasis on research uptake in Mode 2 and 3, and some Mode 1, where relevant

Increased integration of human- and technology-based research outputs

Increased multi- and transdisciplinary research outputs

Increased collaboration between researchers across faculties and departments

Strengthen the link between research focus areas, programme development/ development of futurelooking qualifications in postgraduate programme offering

Technology-focused and futureoriented research areas, and its impact on undergraduate and postgraduate curriculum, technology and innovation

Progress status

The number of National Research Foundation (NRF) rated researchers at CPUT has increased significantly, establishing the University as the highest in the UoT sector in this regard.

CPUT has embarked on multi-/ trans-disciplinary initiatives, such as the Centre for Sustainable Oceans’ Ocean Accounts programme, which focuses on high-impact interdisciplinary projects that utilise ocean accounting to address various Sustainable Development Goals (SDGs).

The University has prioritised internationalisation for knowledge partnership and social transformation, with funding support from NRF and STINT. This initiative enables collaborative research efforts with international partners. Collaborations such as the AMHBI (African Medicinal Plants for Health and Biotechnology Innovation); collaborations for Rooibos Health Covid-19 Cognitive Benefits Study; and a Covid Study with UCT demonstrate the University’s commitment to addressing complex real-world problems through diverse groups of researchers. These collaborations contribute to the development of Mode 2 and Mode 3 knowledge.

The Library Division has successfully implemented an Advanced Information Literacy programme, including training in Research Data Management literacy, as part of the postgraduate training programmes at CPUT.

The establishment of a Biotech Corridor has been approved to centralise biotech-related activities in one location, promoting collaboration and synergy among various stakeholders.

The Innovation Fellow programme, parallel to the Postdoctoral Fellow programme, aims to develop the next generation of academics focused on translating research into societal impact. Three Innovation Fellows will be targeted for recruitment in 2023.

The Global Institute for Teacher Education and Society (GITES) has been established to drive multi- and transdisciplinary scholarship in Education and related Social Sciences.

A collaboration called “WIL-of-the-future” has been formed with PERI (Polytechnic of Porto, Portugal); Munster Technological University, Ireland; and the Namibian University of Science and Technology, aiming to enhance WIL programmes.

The CPUT ETDP SETA Research Chair in WIL and Recognition of Prior Learning (RPL) focuses on research partnerships with TVET Colleges to enhance WIL and RPL practices.

The Technology Transfer Office (TTO) is working on establishing a Venture Builder Accelerator at CPUT. Collaborations with various stakeholders in the National System of Innovation (NSI), including THENSA, are being pursued.

Collaboration with the Technology Innovation Agency (TIA) is being explored for wastewater beneficiation and valorisation. If successful, this partnership will lead to the development of a partially funded centre/ institute at CPUT focused on translational research outcomes.

The TTO at CPUT is supporting the Faculty of Engineering and the Built Environment (FEBE) in the development of two new research areas.

The first research area focuses on heritage buildings, aiming to address challenges related to the preservation and conservation of these buildings.

The second research area is centred around energy capture and storage, with a focus on developing innovative solutions for efficient energy utilisation and storage.

The TTO plays a crucial role in facilitating collaborations and partnerships between FEBE and relevant stakeholders, to advance research and innovation in these areas.

Research, Technology

Innovation and Partnerships Report on page 63–72

Research, Technology Innovation and Partnerships Report on page 63–72

Research, Technology Innovation and Partnerships Report on page 63–72

Objectives

SMART HUMAN CAPITAL AND TALENT

Goal

Promote a culture of human-centricity and smart people of integrity, mutual respect, and excellence, who nurture collaboration, and are innovative in support of One Smart CPUT

Re-imagine the CPUT workforce performing in a technology-driven and inspired environment, having the appropriate skill sets, attitudes, and ability to adjust to the notion of One Smart CPUT

Create a smart CPUT community that will contribute to a unified CPUT collective, and unified identity – known for mutual respect, and a deep appreciation for diversity and issues of transformation

Key Performance Indicators as per Annual Performance Plan (APP)

Evidence of cross university/ faculty/ divisional teams playing a role in creating oneness in the realisation of our V2030

Existence of a CPUT-wide mentoring framework and developmental programme (e.g. including a lateral (peer); vertical (senior staff supporting junior colleagues); and mentoring up (junior staff acting as a mentor for senior staff)

Staff retention figures

Evidence of One Smart CPUT as a learning organisation with a shared memory, shared experiences, and a shared vision

Outcomes of campus climate studies

Outcomes of staff satisfaction surveys

Staff turnover %

Evidence of becoming an employer of choice

Progress status

Efforts are underway to concretise the implementation strategy for the Human Capital (HC) V2030. Progress has been made in updating policies, with the expectation of approval in early 2023.

Steps have been taken to reduce the risks associated with litigation matters by ensuring timely closure of such cases.

Components of the Integrated Talent Management Strategy are being developed to effectively manage and develop talent within the organisation.

The HC agile systems’ readiness project has been initiated to drive the implementation of SMART (Specific, Measurable, Achievable, Relevant, Time-bound) HC systems.

These initiatives aim to strengthen human capital management, and support the organisation’s long-term vision.

Efforts are being made to streamline learning programmes through the online Staff Development Academy. This initiative aims to centralise and optimise staff development activities in a digital platform.

Additionally, there is a focus on strengthening data integrity processes to ensure the accuracy and protection of Human Capital data.

These measures aim to enhance the efficiency and reliability of HR information systems, and safeguard sensitive information.

Reference to KPI progress within annual report

Transformation Report on page 78–81

Transformation Report on page 78–81

Objectives

SMART INTERNATIONALISATION

Goal

To develop a unique CPUT multi-/global cultural community by building capacity and awareness in teaching and learning, research, innovation, and engagements, that will ensure students and staff can act as global scholars, employees and employers

Create a multi-/global cultural environment at CPUT for staff and students to recognise and understand their place in Africa and the world

Key Performance Indicators as per Annual Performance Plan (APP)

Ability to attract international and national experts to participate in online events, such as webinars, (online) conferences, (online) public lectures, (online) debates, (online) lectures

Strengthen CPUT’s international profile and visibility

Number of active international partnerships and research collaborations

% increase in postdoctoral fellows

Number of awards and prizes for academic and research achievements

Increase in CPUT rated scientists

Attract smart international students and staff

Presence of a robust alumni presence in selected international locations

The outcome of international student satisfaction surveys

A reputation of an Internationalisation Strategy that embraces the advantages of technology

Number of visiting scholars

Number of staff and student exchange programmes, be it through contact or virtual teaching and learning

Number of joint/dual degrees offered with strategic partners

Impact of partnerships, with regards to research outputs, application and community impact

Progress has been made towards the goal of unlocking opportunities for partnering with top institutions and academics globally, as well as in South Africa and the rest of Africa. Achievements include:

• Representatives from Strategic Initiatives and Partnerships (SIP), Libraries, and Centre for Postgraduate Studies (CPGS) are actively engaging in Faculty Teaching and Learning Committee meetings. Their involvement provides support, facilitation, and oversight functions to enhance teaching and learning practices.

• CPUT participated in the Social Entrepreneurship SA Innovation Summit 2022, which was hosted by the Embassy of Finland. This event provided a platform for networking, and exploring collaborations in the field of social entrepreneurship.

• These achievements signify the Institution’s commitment to fostering partnerships, and engaging with leading institutions and minds to advance innovation and academic excellence.

SASUF 2030 is an ongoing international research project, involving 39 universities from Sweden and South Africa.

The project aims to address the challenges of the UN Sustainable Development Goals and Agenda 2030, through joint solutions.

CPUT researchers have opportunities to collaborate with Swedish and African researchers through funding calls and proposals until 2024.

Funding opportunities include virtual exchange grants, and participation in Research and Innovation Weeks in South Africa (2023) and Sweden (2024).

CPUT hosted the final YEBO Conference, coordinated by the University of Montpellier in France.

CPUT also hosted the 1st AIEA Hybrid Forum on “Equity Sensitive Strategies of Higher Education in South Africa: Internationalisation@Home in Post-Pandemic Times”.

The Faculty of Business and Management Sciences hosted the 1st Inclusive Technopreneurship Forum as part of the IAU British Council project.

CPUT has an ongoing proactive engagement with international students, which has led to the development of the International Student Roadmap 2030. This roadmap addresses various matters that affect international students at CPUT. Key initiatives include the establishment of an international student desk, providing a centralised and coordinated service to cater to the needs of international students.

CPUT plans to create a dedicated “student and visiting scholar hub” on the main campuses, aiming to foster a supportive and conducive environment for learning and research. The concept of a “home away from home” approach will be adopted, to ensure international students feel comfortable and welcomed during their time at CPUT.

Local, national, and international conferences, workshops, and seminars on page 69–71

Research Report on page 64

Postdoctoral fellows on page 68

External funding for 2022

Academic Year on page 65

NRF rated researchers on page 66

Local, national, and international conferences, workshops, and seminars on page 69–71

Objectives

Focus Area

SMART ENGAGEMENT AND STRONG LINKS WITH QUINTUPLE HELIX PARTNERS

Goal

Ensure the relevance and excellence of CPUT’s academic and research programmes through the development of linkages within a quintuple helix environment

Develop a 4x4 engagement strategy with our four primary communities (civil society, industry, Government, and academia)

Key Performance Indicators as per Annual Performance Plan (APP)

Number of strategic partnerships with civil society, industry, Government, and academia

Champion social, cultural, and economic growth in CPUT’s region

Mapping completed, and key actions identified

Number of successful and active projects

Objectives

Focus Area

SMART STUDENT ENGAGEMENT AND LEARNING EXPERIENCES

Goal

A smart, holistic CPUT student experience

Build the capacity of students to engage in a CPUT student experience in ways that are both individually transformative and that build the social capital of CPUT and its broader community

Key Performance Indicators as per Annual Performance Plan (APP)

Pre-university engagements/ programmes through summer schools, online pre-training

Evidence of an institutional well-being framework and mental health strategy for students

Evidence of a documented first-year experience framework

Student satisfaction surveys

Student success and graduation rates

Employability of CPUT students

Feedback from industry and the world of work

Implementation of an online student advising and counselling service, as well as work readiness programmes

Progress status

CPUT is currently in the process of establishing an Economic Activation office within the RTIP Platform. This office aims to centralise and coordinate various engagements involving CPUT stakeholders, leveraging the national presence of the Entrepreneurship Development in Higher Education (EDHE) initiative within Universities South Africa, industry partners, and local communities. The goal is to enhance economic activation and collaboration, in order to drive innovation and development within the University and its surrounding areas.

Local, national, and international partnerships on page 69–70

Community Engagement, Service-Learning and Civic Engagement Service Report on page 75–77

CPUT has established societally relevant multi-/transdisciplinary research initiatives and platforms across its faculties, centres, and institutes. One example is the Global Institute for Teacher Education and Society. This focus on multidisciplinary collaboration aims to address complex societal challenges, and drive impactful research.

CPUT has experienced a marked increase in mutually beneficial and symmetric regional, national, and international partnerships and networks across its faculties. These partnerships facilitate knowledge exchange, collaborative research, and opportunities for shared learning and growth.

Community Engagement, Service-Learning and Civic Engagement Service Report on page 75–77

Progress status

CPUT is implementing the SMART learning environment initiative, which involves reviewing traditional learning and teaching spaces to develop a SMART environment, in alignment with CPUT’s V2030. The process includes considerations of pedagogical transformation, the roles of students and teachers, content delivery, and approaches to enhance student success.

CPUT has participated in the Presidential Employment Stimulus Programme, and the Presidential Youth Employment Programme, demonstrating a commitment to economic empowerment, and addressing youth unemployment. As part of these programmes, students from the Department of Mathematics and Physics worked as data analytics interns, focusing on critical data related to student success. The interns actively engaged in data analytics projects across faculties, using predictive analytics and machine learning to gain insights into student behaviours and outcomes.

Community Engagement, Service-Learning and Civic Engagement Service Report on page 75–77

Performance assessment on access table on page 30–31 Performance

Objectives

Focus Area

SMART STUDENT ENGAGEMENT AND LEARNING EXPERIENCES (continued)

Goal

A smart, holistic CPUT student experience

Embed a suite of comprehensive and quality services for students, that are integrated, responsive and focused on supporting students’ holistic well-being, and academic success, and supported by smart technologies

Key Performance Indicators as per Annual Performance Plan (APP)

Evidence of annual schedule of approved student surveys and mechanisms for analysis and action through Student Affairs

Support a dynamic student community through the provision of quality learning and social environments and experiences

Student feedback

Campus stability

Feedback from industries and workplaces

Achievements of our students, and recognition for our student engagement programmes

Facilitate opportunities for students that will provide them with leadership development opportunities, and provide international exposure through smart technologies, work-based learning, and community outreach programmes – developing caring and socially responsible citizens

Engage in constructive, smart conversations, and difficult dialogues

Evidence of work-integrated and experiential learning framework, and database development and implementation

Track and assess all forms of internationalisation activities and exposure, as well as their impact

Implement surveys website to increase visibility of results and outcomes

Evidence of student representation in Council and leadership training programmes

Acceptance of a student engagement framework for CPUT campus stability

Progress status

The Student Development offices offer a wide range of extramural activities to enhance student life. Workshops are provided free of charge for registered students, covering topics like notetaking and study skills, entrepreneurship development, financial literacy, etiquette and grooming, diversity training, and environmental awareness.

Student activities include market days, performances, energy and water saving campaigns, beach and mountain clean-ups, lunch hour concerts, entrepreneurship programmes, and healthy cooking. Student Development organises off-campus student tours, environmental education and excursions, leadership and personal development opportunities, Women’s Day events, and various outreach projects, and corporate social investment programmes.

Students have access to workshops, seminars, and dialogues focused on important skills, such as public speaking, time management, and diversity training.

The Institution has installed power backup lights in passages and common areas to ensure the safety of students during loadshedding.

Plans are in place to implement power backup technologies, such as UPS/Power Caddy to ensure that Wi-Fi remains operational, even during power outages. This project is currently in the planning phase. The courtyards on campuses are being converted into social spaces for students, providing them with additional areas for relaxation and socialising.

There is a focus on planning and designing integrated learning spaces that provide an optimal environment for students’ educational needs, and collaborative learning.

The Institution is actively assessing and improving disability student rooms and bathrooms to ensure accessibility and inclusivity.

In line with promoting inclusivity and diversity, the Institution is in the process of procuring genderneutral toilets for its campuses.

As part of infrastructure improvements, the Institution is replacing SANS wall sockets with different input types to enhance convenience, and meet the changing needs of students and staff.

The Student Leadership Academy develops student leadership skills, and promotes positive youth development, focusing on servant leadership and citizenship.

The Department of Science and Technology has launched a framework that promotes engaged scholarship for community engagement, which is embraced by the SL&CE Units.

Internationalisation efforts in SL and CE include collaborations with international universities and networks, facilitating virtual programmes, and online platforms.

The Units provide opportunities for students and staff to engage in international and intercultural contexts through partnerships like the Ubuntu Global Network, Talloires Network of Engaged Universities, and HAN University community engagement projects.

The Quality Management Directorate Student Engagement Portfolio has developed a comprehensive plan to improve student engagement, by involving them in quality assurance activities, and creating an inclusive environment.

Strategies to strengthen student engagement include giving students a significant role in quality reviews to shape programme quality, facilitating student feedback through reflexive engagements at Student Quality Desk meetings, and actively involving students in CPUT’s quality management systems.

This report presents an analysis of the Cape Peninsula University of Technology’s (CPUT) performance in relation to the targets set in its Annual Performance Plan (APP) for 2022, as submitted to the Department of Higher Education and Training (DHET) in December 2021. According to DHET’s Implementation Manual for Reporting by Public Higher Education Institutions, the University’s performance assessment report should reference the “key performance indicators and targets as stated in the Annual Performance Plan” (Government Gazette, No. 37726, 9 June 2014).

Most targets outlined in the APP can also be found in the University’s Student Enrolment Plan for 2020–2025, which was submitted in 2019. The Mid-term Review of the Enrolment Plan has been approved, and is already being used in the

development of the 2023 APP. It has resulted in changes to some targets for the remainder of the Enrolment Plan 2023–2025, and will serve as the foundation for future planning.

The actual numbers for 2022 presented in the following tables are based on the second Higher Education Management Information System (HEMIS) submission, and partially audited HEMIS data as of March 2023. The final HEMIS submission to DHET will be the official record of the University’s data.

The layout of the tables has been influenced by templates provided by DHET, and provides 2022 targets and actuals, with comparative data for 2020 and 2021. The tables also offer a three-year trend analysis of access and success in enrolment planning.

1 Please note that the race classification is required by DHET in order to track the overall transformation progress made by the South African Higher Education System.

Analysis and notes for A1–A6: Access category

Based on the data presented in the table, it is evident that there has been a 4,2% increase in overall headcount enrolment at CPUT between 2020 and 2022, from 32,383 to 33,762. However, during the 2022 reporting year, the Institution experienced an overall shortfall of 9%, which marks a significant improvement from the previous report. The primary factor contributing to this shortfall is postgraduate enrolments.

The analysis of the data in the table above aims to assess the performance of CPUT in terms of access for the 2022 academic year, as compared to the targets set in the Enrolment Plan 2020–2025. The Annual Performance Plan typically includes targets that allow for the widening of access across various sub-categories, such as headcount enrolments, enrolments by major field of study, and demographic profiles. Nevertheless, some trends may include unplanned targets, such as the enrolment of occasional students, which do not have specific targets established during the planning phase.

The following provides a synopsis of the overall analysis of access by sub-categories:

A1 According to the data presented in the table, the overall headcount enrolment target for CPUT was 37,090, and the Institution achieved 91% of the target, with an actual headcount enrolment of 33,762. This represents a 4% improvement from both the 2020 and 2021 actuals. Although the Institution fell short of its target, the data suggests a significant improvement and increase in actual enrolments over the three-year period under analysis.

A2 The data presented in the table indicates that CPUT has met and slightly surpassed its target for the First-Time Entering Undergraduates sub-category. The target for this sub-category was 7,695, and the Institution exceeded the target by 11%. This sub-category also demonstrated the most significant improvement of all the enrolment categories analysed.

A3 Based on the data presented in the table, the Foundation First-Time Entering Undergraduates sub-category at CPUT has met or exceeded its targets during the years under analysis. The data indicates an over-achievement of the set target for this category of students.

A4 According to the data presented in the table, the Headcount Enrolments Total UG category has achieved 95,3% actual headcount against the set target, while the Headcount Enrolments Total PG has achieved 55,8% of its target. Although the enrolment of occasional students is not included in the planning phase, the data shows an achievement of 126, an improvement from the previous year’s total of 97. Overall, the data suggests a positive trend in headcount enrolment and institutional reputation across these categories.

A5 In terms of Enrolments by Major Field of Study, the overall performance in achieving the set targets is 91%. Within this category, the Science, Engineering, Technology (SET) sub-category had an overall enrolment achievement of 93%, but fell short of the set target by 7%, with the Institution enrolling 15,591 against a target of 16,748.

The Business/Management sub-category, which is the second-largest major field of study, contributing 34% of the overall headcount enrolment, had an overall enrolment achievement of 80,1%, resulting in a 20% shortfall from the set target of 12,466.

The Education sub-category had an overachievement of 5,2%, with the Institution enrolling 5,403 against a target of 5,132.

The Other Humanities sub-category met the set target, and exceeded the overall enrolment by 1,1%.

Lastly, the Distance Education Enrolment was just short of meeting its target, with the Institution enrolling just under the set target at 402 out of 404 headcount enrolment.

A6

The final category for access pertains to the demographic profile of enrolled students. This category reveals different enrolment trends. According to the data, there has been a steady increase in the percentage of African students, from 72,2% in 2021, to 74,4% in 2022. This has been a consistent trend over the past five academic years. Conversely, the percentage of Coloured students has slightly declined to 20,6% in 2022, from 22,1% in 2021. Indian students constituted 0,60%, the same as in the previous academic year; while White students constituted 4,2%, down from 4,9% in 2021, of the overall students enrolled. The enrolment of female students has been on a steady increase, rising by another 1%, from 56,9% in 2021, to 58% in 2022, surpassing the set target by 4%.

Performance assessment on success targets

Analysis and notes for B1–B7: Success category

The table presented shows that the success rate of the Institution has remained stable over the past three years (2020–2022). However, it is important to note that the Institution has not met its targets in the years under analysis. This is mainly due to the shortfalls in the overall headcount enrolments categories, as presented earlier.

The sub-categories of this indicator are broken down as follows:

B1 The success rate for undergraduate graduates shows an overall achievement of 89,8%; 7,103, which is slightly below the set target of 7,906.

B2 The UG Degree Credit Success Rate indicator measures the percentage of credits that UG students have successfully completed towards their degree programmes. The Institution had set a target of 78,7% for this indicator, but the actual achievement was slightly lower at 77,9%.

B3

Graduates PG shows the overall achievement in this category is 35% against the set target. There was a total of 543 successful postgraduates, against the set target of 1,549.

B4 The PG Degree Credit Success Rate in this category achieved an overall performance of 90,8%, surpassing the set target of 67,8%. This indicates a gradual improvement, and an increase from the 2021 academic year.

B5 In the category of Overall Degree Credit Success Rate, the Institution achieved an overall performance of 78,4%, which is slightly above the set target of 77,9%. This is mainly because the UG Degree Success Rate achievement is on par with the target, while the PG Degree Credit Success Rate is well above the set target.

B6

The Success Rate by Field of Study category reports an overall average achievement of 80%, based on the performance of its sub-categories. The category is broken down into four sub-categories, namely, Science, Engineering, Technology; Business/Management; Education; and Other Humanities.

The Science, Engineering, Technology sub-category achieved a success rate of 76,8%, which is 1% higher than the target of 75,2%.

The Business/Management sub-category, on the other hand, achieved a success rate of 73,7%, which is 2,3% below the set target of 75,9%.

The Education sub-category showed the highest achievement, with a success rate of 89,8% against a target of 88,8%, exceeding the target by 1%.

Lastly, the Other Humanities sub-category achieved an average success rate of 81,1%, which is slightly below the set target of 81,5% by 0,4%.

B7

The Undergraduate Output by Scarce Skills category includes several sub-categories, including Engineering; Life and Physical Sciences; Animal Sciences; Human Health; and Teacher Education. The overall average performance of these sub-categories is 78,4%. However, the sub-categories differ in their individual achievements, compared to their respective set targets.

The Engineering sub-category achieved an overall performance of 66%, which is slightly below the set target. The Life and Physical Sciences sub-category achieved an overall average of 56,2%, which is also below the set target. The Animal Sciences sub-category shows an overall achievement of 28,6%, which is well below the set target.

On the other hand, the Human Health sub-category shows an impressive average achievement of 109%. Similarly, Teacher Education achieved an impressive average achievement of 97,2%.

C. Efficiency

Performance assessment on efficiency targets

Analysis and notes for C1–C6: Efficiency category

This category evaluates the performance of professional staff in terms of efficiency in instruction and research. It is divided into four sub-categories: Headcount of Permanent I/R Staff; Percentage of Staff with Doctoral Degrees; Number of New Generation of Academics Programme (nGAP) Staff; and Ratio of FTE Students to FTE I/R Staff.

According to the table above, the Institution’s actual performance on Efficiency of the Instruction/Research Professional Staff has been positive overall. The analysis per sub-category is as follows:

C1 The Headcount of Permanent I/R Staff achieved 92,9% in 2022, showing a 3% increase from the previous year, and a gradual increase compared to the 2020 figure.

C2 The FTE Instruction/Research Staff sub-category achieved an overall performance of 92,3% against the set target.

C3 The Percentage Staff with Doctoral Degrees sub-category achieved an overall performance of 34,1%, which is 1,7% below the set target of 35,8%.

C4 The Percentage Staff with Master’s Degrees sub-category achieved an overall over-achievement of more than 8%, with an actual achievement of 49% against the target of 40,3%.

C5 The Number of nGAP Staff sub-category achieved an overall performance of 75,9% against the set target of 29 nGAP staff, with the Institution having 22 nGAP staff.

C6 The Ratio of FTE Students to FTE I/R Staff sub-category shows that the Institution has met its target and exceeded it by 0,4% against the set target. This is a commendable achievement, and efforts should be made to maintain this level of efficiency in the academic enterprise.

Performance assessment on research targets

Analysis and notes for D1–D3: Research category

The category of research output encompasses various aspects of academic performance, namely research output, Master’s Graduates achievement, and unweighted Doctoral Graduate performance. The analysis conducted reveals several key findings: firstly, there is an upward trend in research output over time, despite falling short of the target. Secondly, the achievement of Master’s Graduates is moderate. Lastly, the unweighted Doctoral Graduate category demonstrates a relatively strong performance.

D1 The publication units submitted for the 2022 academic year amount to 341,260, whereas the DHET-approved units for 2021 were 352,999. Although there is a deficit compared to the target, the data indicates a consistent upward trend in research output over the past four academic years.

D2 The Master’s Graduates indicator shows an overall achievement rate of 114% during the reviewed period, in comparison to the established target.

D3 The unweighted Doctoral Graduates category attained an overall performance rate of 167% in relation to the established target.

Dr LF Platzky

Vice-Chancellor Prof NC Nhlapo

Chairperson of Council

Report on Corporate Governance

The Council of the Cape Peninsula University of Technology (CPUT) is responsible for the governance of the University, and provides strategic leadership to the University, based on the University’s long-term plans, as expressed in its Strategic Plan and Objectives. The Council’s role should therefore be distinguished from the operational leadership role performed by the Management of CPUT.

1. Statement on governance

The Higher Education Act, 1997 (Act No. 101 of 1997) (the Act), which regulates higher education, inter alia provides for the establishment of higher education institutions and various institutional governance structures, which include Council; Senate; the Vice-Chancellor; SRC; IF; and such other structures and offices as may be determined by the institutional statute (Section 26(2) of the Act).

The CPUT Statute (Government Gazette No. 46382, Notice No. 1039 of 20 May 2022) (the Statute), amplifies the responsibilities imposed by the Act and provides, inter alia that, “the Council governs the University subject to the Act and the Statute and has general control of its affairs and functions”. The Council monitors the University’s overall mission and strategy. It oversees the governance of the Institution, and protects the Institution’s long-term sustainability and reputation.

The Council is furthermore guided by governance principles, protocols and practices provided for in the King IV Corporate Governance principles, and as such, is committed to the principles of ethical and effective leadership, sustainable development, effective control, and stakeholder inclusivity and responsiveness, as advocated in the King IV Report.

The Senior Management, under the leadership of the ViceChancellor, oversees the daily activities of the University, and reports and accounts to the Council on the University operations. There is a clear separation of roles between the Chairperson of Council and the Vice-Chancellor, which is expressly indicated in the Act, Statute, as well as the Council Charter, and the Code of Conduct for Council and Members of the Council.

The strength of the current Council has been its diversity of membership in respect of backgrounds, culture, gender, expertise, skills, and competencies. Council appointed members to various Council committees based on their areas of expertise and competencies relative to the Terms of Reference of a particular committee of Council, which ensured that CPUT has the requisite expertise to run a complex institution efficiently. Council has furthermore, through the Governance and Ethics Committee, appointed a number of external persons with the necessary skills and competencies to serve on relevant committees without being members of Council. The principles of stakeholder inclusivity are provided through the internal membership, which comprises both staff and students at the University, thereby ensuring that the needs, expectations, and perspectives of all the stakeholders are considered in decision-making processes, at the governance level.

2. Council and committees of Council

The Council is guided and directed by the Act, applicable national legislation, the Statute, as well as the University Strategic Plan (Vision 2030), and the Annual Performance Plan in its governance function.

The Chairperson of Council guides and assists the Council to focus on its strategic objectives through four quarterly ordinary Council meetings, supplemented by at least two Council Strategic Planning Sessions each year. The first Strategic Planning Session is normally scheduled in June of each year, when the mid-term performance review and the budget, linked to the strategic objectives for the following year, are considered. The purpose of the end of year Strategic Planning Session is to consider the final performance assessment and approval of the Performance Plan for the following year. In these Strategic Planning Sessions, the core business of the University, that is, teaching, learning and community engagement, is placed at the forefront of the Council agenda.

As promulgated in Section 27(6) of the Act, 60% of members of Council are neither employees nor students at the University. Therefore, the majority (60%) of Council members are external, and the remaining members comprise executive managers and internal constituencies, as contemplated in the Act, read with the Statute.

Although the Council includes several diverse representatives who are elected, designated or appointed from various external and internal structures, it operates as a unitary structure, and is therefore not a constituency-based structure. The composition of the Council reflects the responsibilities vested in the Council, and the duty it has to discharge and perform as representative body of the interests of the University’s stakeholders and relevant external stakeholders.

In accordance with the relevant provision of the Statute, Council is authorised to establish committees to assist it in the execution of its duties, powers, and functions. The Council furthermore delegates to each of the committees established, such authority as is required to enable these committees to fulfil their respective functions, and appoints Council members with the requisite skills and expertise to these committees.

The Council ordinarily meets four times a year, and receives quarterly reports, recommendations, and advice on various issues from the following standing committees of Council:

• Executive Committee of Council;

• Governance and Ethics Committee;

• Audit and Risk Oversight Committee;

• Finance Committee;

• Human Resources Committee;

• Physical Planning Committee;

• Student Services Committee;

• IT Governance Committee; and

• Remuneration Committee.

Each of these Council committees is chaired by an external member of Council. In constituting the committees, the Council ensured that the majority of members who serve on these committees as members are neither employees, nor students of the University. All committees are fully constituted in accordance with their respective Terms of Reference. The aforesaid Terms of Reference documents are reviewed annually and submitted to Council for approval.

The list of Council and Council committee meetings, including the composition of each committee, length of service of each member, as well as their respective attendance at those meetings, is attached on pages 5–9 of the Report.

During the year under review, Council met six times, as follows:

• Four Council regular meetings, as prescribed in the Act and Statute;

• One Special Council meeting, convened in accordance with the applicable provisions of the Statute; and

• One Strategic Planning Session.

The majority of Council and Council committee meetings were conducted by way of virtual meetings.

All the Council meetings and strategic planning sessions were quorate and held on time. The attendance rate of Council and Council committee members showed the commitment of members to the University business and their stewardship. Besides receiving a stipend that covers incidental expenses, Council members are not paid for this extraordinary commitment.

The term of office of the Council, which was inaugurated in 2018, expired at the end of August 2022, as prescribed by the Statute. Prior to the termination of office, Council commenced the process of nominating new Council members, in accordance with the relevant provisions of the Act and the Statute.

In terms of Clause 35 of the CPUT Statute, the composition of Council and the number of Council members serving on Council were reduced from 30 to 22 members, with due regard to the requirement in Section 27(6) of the Act, namely that 60% of members of Council are neither employees, nor students of the University.

The Governance and Ethics Committee, duly assisted by the office of the Registrar, managed the process of nomination for appointment of new Council members. Council, during its meeting held on 27 August 2022, considered and endorsed the report from the Governance and Ethics Committee, on the reconstitution of Council and Council committees.

The following principles were considered by the Governance and Ethics Committee in its consideration and recommendation of members of the new Council and committees of Council:

a) Balance continuity and new membership by retaining at least 50% of members who served on the previous Council and committees of Council (subject to their availability);

b) Ensure that the skill sets of the appointed members address the broad spectrum of competencies required by Council, to properly govern the University;

c) External members constitute no less than 60% of the composition of members of Council; and

d) Equity in terms of gender, youth, disability and race.

The appointment of any member to Council and Council committees is subject to a verification process, such as checks on criminal record, and qualifications verification.

Council was inaugurated on 22 October 2022, during which meeting, Council elected Dr LF Platzky and Mr D Gumbi as Chairperson and Deputy Chairperson of Council, respectively.

The Department of Higher Education and Training (DHET) issued a request, via the office of the Registrar to Council, to conduct a self-assessment for the 2021 financial year through the Executive Committee of Council (Exco) using the governance scorecard. The relevant letter with the outcome of the Self-assessment Report was submitted to DHET.

The information below provides an outline of the roles and responsibilities of each of the committees of Council, as well as the matters dealt with and discharged by such committee, during the year under review:

2.1 The Executive Committee of Council (Exco)

The Executive Committee of Council is a standing committee of the Council, established in terms of Section 29 of the CPUT Statute.

The Committee consists of:

a) Chairperson of Council (Chair of the Committee);

b) Deputy Chairperson of Council;

c) Chairpersons of Council committees;

d) Vice-Chancellor (ex officio);

e) Deputy Vice-Chancellors (observers); and

f) Executive Directors (observers).

The mandate of the Committee is to:

1. Conduct such matters, generally deemed to be of an urgent nature, as is necessary between meetings of Council, and to conduct such specific matters, with such authority, as is delegated to it by the Council;

2. Consider and make recommendations on any aspect of standing resolutions of the Council and of the Statute and Regulations of the University (existing and new), and on such other matters referred to it by the Council or the Vice-Chancellor;

3. Review and set agendas (Annual Work Plan) for Council meetings and for annual Council Planning Sessions, in consultation with Executive Management;

4. Propose the Council Annual Business Plan, including setting annual objectives and targets, in consultation with Executive Management, for submission to Council for approval;

5. Identify priority issues consistent with the Business Plan and Council resolutions;

6. Receive and review, on a quarterly basis, the progress against agreed institutional objectives and targets;

7. Review, with Executive Management, any corporate legal action (other than normal operational legal action), any significant litigation, claim or contingency, which could have a material effect on the going concern of the University, and bring such matters to the immediate attention of the Council;

8. Plan and develop the Vice-Chancellor’s annual contract, based on the mutually agreed goals approved by the Council in the Vice-Chancellor’s annual objectives and the expectations set out in the Vice-Chancellor’s job description; and

9. Review the performance of the Vice-Chancellor on behalf of the Council. The results of the evaluation shall be documented by the Chair and acknowledged by the ViceChancellor and the Council.

2.2 Physical Planning Committee

The main responsibility of the Committee is to consider recommendations and reports from Management, and submit items for approval to Council on the following matters:

i) Policy and procedure formulation;

ii) Campus and master planning;

iii) Accommodation planning;

iv) Project planning;

v) Service level statements;

vi) Property Investment Strategy; and

vii) Funding proposals for infrastructure development.

2.3 Finance Committee (FinCom)

The main responsibilities of the Committee include advice on, coordination and monitoring of:

i) The financial and business affairs of the University; and

ii) The financial systems and procedures to ensure that the University does business as an academic institution of excellence.

FinCom is also responsible for approval of certain funding requests contained in the budget approved by Council, and approval of all finance-related matters, including any decisions with major financial implications related to the budget.

The Committee further ensures that acceptable accounting systems are adhered to through the design and use of appropriate policies.

2.4 Audit and Risk Oversight Committee (AROC)

The Audit and Risk Oversight Committee has the following specific responsibilities:

2.4.1 Internal audit

The Committee is responsible for the overseeing of internal audit, and in particular, the Committee must:

i) Be responsible for the oversight of the appointment, performance assessment and/or dismissal of the Director: Internal Audit;

ii) Review and approve the annual Internal Audit Plan and Audit Charter;

iii) Receive feedback on the outcomes of internal audits that have been performed;

iv) Be informed on the risk management and corporate governance practices, as assessed by Internal Audit;

v) Ensure that the internal audit service is subject to an

independent quality assurance review every five years, and complies with the Institute of Internal Auditors’ International Professional Practices’ Framework;

vi) Ensure that there is a formal process of follow-up of significant findings, and that Internal Audit reports on non-implementation of agreed management actions or delays in implementing remedial actions;

vii) Review and resolve significant differences between Management and Internal Audit;

viii) Obtain assurance on the independence of the Director: Internal Audit and service provider; and

ix) Review the internal audit service budget on an annual basis.

2.4.2 External audit

The Committee is responsible for recommending the appointment of the External Auditor, and for overseeing the external audit process. In this regard, the Committee must:

i) Oversee the appointment of the External Auditor to ensure alignment with the practical implementation of the Public Audit Act;

ii) Approve the terms of engagement and remuneration for the external audit engagement;

iii) Monitor and report on the independence of the External Auditor in the annual financial statements;

iv) Define a policy for non-audit services provided by the External Auditor;

v) Approve the contracts for non-audit services to be rendered by the External Auditor;

vi) Ensure that there is a process for the Audit Committee to be informed of any Reportable Irregularities (as identified in the Auditing Profession Act, 2005) identified and reported by the External Auditor; and

vii) Review the quality and effectiveness of the external audit process.

2.4.3 Risk management oversight and internal controls

The Committee is an integral component of the risk management process, and specifically the Committee must:

i) Oversee the development and annual review of a policy and plan for risk management to recommend for approval to Council;

ii) Monitor implementation of the policy and plan for risk management taking place by means of risk management systems and processes;

iii) Make recommendations to Council concerning the levels of tolerance and appetite, and monitor that risks are managed within the levels of tolerance and appetite as approved by Council;

iv) Oversee that the Risk Management Plan is widely disseminated throughout the University, and integrated in the day-to-day activities of CPUT;

v) Ensure that risk management assessments are performed on a continuous basis;

vi) Ensure that frameworks and methodologies are implemented to increase the possibility of anticipating unpredictable risks;

vii) Ensure that Management considers and implements appropriate risk responses;

viii) Ensure that continuous risk monitoring by Management takes place;

ix) Liaise closely with the Internal Auditors and Management to exchange information relevant to risk;

x) Express the Committee’s formal opinion to Council on the effectiveness of the system and process of risk management;

xi) Review reporting concerning risk management that is to be included in the Annual Report for it being timely, comprehensive, and relevant;

xii) Oversee financial reporting risks, internal financial controls, and fraud risks, as these relate to financial reporting and general IT risks; and

xiii) Ensure that a combined assurance model is applied to provide a coordinated approach to all assurance activities to address all the significant risks facing CPUT, and to monitor the relationship between the various internal and external assurance providers.

2.4.4 IT Governance Committee

The Committee must ensure that IT risks are adequately addressed and receive appropriate assurance on controls, and must consider the impact of IT in relation to financial reporting and on significant operational activities.

The risks that CPUT faces by virtue of its use of IT, as well as the associated controls used to mitigate those risks, should be assessed and clearly placed in an organisational-wide Risk Management Framework. This Framework should be periodically reviewed, and a discipline of continuous auditing must be considered to provide assurance on these controls to afford greater coverage and efficiency.

2.4.5 Fraud and litigation

The Committee receives reports on matters of fraud and the results of forensic investigations into cases of fraud. It will also consider Management’s actions in dealing with these cases of fraud, and receive assurance from Management regarding the compliance with relevant legislation regarding the incidents of fraud and actions to recover monies and assets.

The Committee will receive feedback on CPUT’s fraud risk profile.

Management will also provide feedback on areas of litigation that pose a risk to CPUT in terms of financial impact and/or reputational consequences.

2.4.6 Compliance with laws and regulations

Management will provide AROC with regular updates on CPUT’s compliance with laws and regulations.

Independent assurance will be provided by the Internal and External Auditors, based on their annual audit coverage plans.

Human Resources Committee

The Human Resources (HR) Committee of Council monitors and evaluates the implementation of the HR Strategy, policies, and practices.

The mandate of the Committee is to consider recommendations and reports from the Executive Management Team, and submits items for approval to Council on the following:

a) Human Capital (HC) Strategy and organisational structure

i) Review and monitor the development and implementation of the HC Strategy;

ii) Ensure that the HC Strategy is in line with the vision, mission, and core values of the University; and

iii) Review and monitor the development of an appropriate organisational structure to implement the HC strategic objectives.

b) Human Capital policies, procedures, and practices

i) Review and monitor the development and implementation of Human Capital policies and procedures; and

ii) Ensure that the HC policies and procedures are regularly reviewed to keep abreast of the developments in the human resources environment.

c) Talent management at senior management level

i) Review and monitor the organisational structure at senior management level;

ii) Consider policies, procedures and principles for selection and retention of Senior Management;

iii) Review and monitor the development and implementation of succession plans for Senior Management;

iv) Review the recruitment, retention and termination policies and procedures for Senior Management;

v) Review the Vice-Chancellor’s recommendations on confirmation of probations, acting appointments, retention, transfers, and termination of service of Senior Management; and

vi) Review and recommend to Council any material terms of employment, severance or settlement arrangement, and any changes to contractual agreements and provision for members of senior management.

d) Leadership development

i) Oversee and monitor the development of induction, orientation and training programmes for Senior Management;

ii) Oversee and monitor continuous leadership and professional development for Senior Management;

iii) Recommend policies and practices for performance evaluation of Senior Management;

iv) Review and monitor the practices used to evaluate senior management members;

v) Annually review and recommend to Council the ViceChancellor’s Performance Management Plan; and

vi) Annually review and approve the Vice-Chancellor’s performance appraisal results of all senior management members, and recommend remedial action, where necessary, to Council.

e) Human Capital administration

i) Consider and monitor the appointments/ resignations/ dismissals/ retirements trends on a regular basis;

ii) Monitor the development and implementation of overall performance management, rewards and recognitions policies, procedures and practices;

iii) Provide mandate for annual general increase negotiations, based on the institutional budget and parameters set by Council;

iv) Provide oversight on medical aid scheme and contributions;

v) Review and monitor retirement funds, group life and contributions;

vi) Consider recommendations on changes to post levels and salary ranges;

vii) Funding proposals;

viii) Equity profile and transformation;

ix) Staff learning and development;

x) Safety and health; and

xi) Labour relations.

f) Delegated authority and accountability

The Committee has delegated powers, authority, duties, and functions, as contained in its Terms of Reference, or as specifically delegated by the Council. The following functions are delegated to the Committee by Council:

i) Salary increases for general staff (Grades 5–18), based on the mandate and parameters set by Council;

ii) Deviation from the Policy on Retention of Scarce/ Critical Skills;

iii) Job evaluation results for senior management positions;

iv) Senior management appointments of less or equal to one year;

v) Freezing/unfreezing of senior management positions;

vi) VC’s Performance Plan (goals, objectives and performance targets);

vii) Review and approval of senior management job profiles; and

viii) Review the appointment of human resources service providers/consultants.

2.6 Governance and Ethics Committee

The Governance and Ethics Committee is a standing committee of Council, and as such, reports to Council on all matters relating to governance and ethics policies, practices, processes and guidelines.

The Committee provides strategic guidance on retention, appointment, and re-appointment of an actively engaged membership of Council and Council committees with the requisite knowledge, skills, abilities, and values to fulfill the University’s vision and mission.

The Committee oversees and monitors the implementation of the Code of Conduct for Council and external members serving on Council committees. These Terms of Reference of the Committee must therefore be read in conjunction with Chapter 3 of the Code of Conduct Policy mentioned above.

To maintain the independence, reputation and integrity as expressed in the Code of Conduct Policy, all Committee members have an obligation to avoid ethical, legal, financial, or other conflicts of interest, and to ensure that their activities and interests do not conflict with their obligations to the Committee and the duty to exercise independent judgment as members of the Committee.

The Committee reviews the ongoing developments, best and next practice in governance and ethical issues affecting the University.

The Committee does not assume the functions of management, which remains the responsibility of the executive members, officers, and other members of senior management.

The role of the Committee is to assist the Council with the oversight of social and ethical matters relating to the Institution.

The Committee has the following specific responsibilities:

a) Governance

i) Develop, review and recommend to the Council the governance policies, practices, standards, principles and guidelines, in accordance with applicable legislation and regulatory framework;

ii) Oversee and monitor the compliance with and the effectiveness of adopted governance policies, principles, practices and guidelines;

iii) Keep abreast of developments regarding governance, and make recommendations to the Council on such developments as may be appropriate;

iv) Annually oversee and monitor the evaluation of Council and its committees’ performance, in accordance with the duties specified in each of their respective Terms of Reference, and report its findings to Council;

v) Recommend to the Council the establishment and deestablishment of Council committees, including the purpose, structure, and operations of such committees, as well as the criteria for membership; and

vi) Establish and coordinate, with the Chairs of each committee, the criteria for evaluating the effectiveness of such committees.

b) Membership

i) Determine the knowledge and experience required on Council for it to fulfill its duties in terms of the Higher Education Act, 1997 (Act No. 101 of 1997, as amended), the CPUT Statute, and the CPUT Code of Conduct Policy;

ii) Monitor the composition and size of Council, regarding the appropriate mix of expertise, skills and attributes relevant to the objectives and governance of the University, with due consideration given to diversity in terms of gender, race, disability, youth, personal and professional backgrounds, as well as other factors the Committee deemed fit;

iii) Develop, review and recommend to the Council the rules and procedures for nomination of Council members for the filling of vacancies in terms of Section 18(l) of the CPUT Statute;

iv) Develop, review and recommend to Council the procedures for the selection of and the role of the Chairperson of Council, and if considered necessary, the Deputy Chairperson of Council;

v) Advise the Minister of Higher Education and Training, the Premier of the Western Cape, and the City of Cape Town on the appointment of members of Council in the categories of membership requiring their input, when vacancies in these categories occur in terms of Section 18(g), (h), and (i) of the CPUT Statute;

vi) Recommend to the Council the appointment of Council members to serve on statutory bodies, standing, joint and ad hoc committees, after having consulted with the members concerned;

vii) Monitor the workload of members of Council serving on the sub-committees of Council, and advise Council on ways and means to achieve, as far as is practicable and feasible, an even workload for all members of Council;

viii) Perform an annual review and assessment of Council members’ attendance and performance at meetings of the Council and Council committees, as well as external members serving on such committees, with the view of identifying the areas of improvement or any appropriate action to be taken, and recommend such to Council; and

ix) Oversee and monitor the review of the Council members’ liability insurance and indemnity arrangements, and make recommendations on any changes thereto.

c) Code of conduct and conflict of interest

i) Investigate any complaint received according to the procedures set out in the Code of Conduct, decide on such complaint, and notify the relevant bodies;

ii) Initiate inquiries into potential breaches of the Code of Conduct received, in accordance with procedures set out in the Code of Conduct and the Conflict of Interest Policies;

iii) Monitor adherence and compliance with the Code of Conduct and Conflict of Interest Policies, and report any failure of any Council member or external members serving on Council committees to adhere to these requirements;

iv) In cooperation with the Executive Committee of Council, promote the Code of Conduct and Conflict of Interest Policies to Council members, agencies dealing with the University, and donors;

v) Advise the Council on training and other activities necessary to encourage Council members to meet the standards of governance and public accountability required under the Code of Conduct Policy;

vi) Provide advice to the Council on areas in which the Code of Conduct and Conflict of Interest Policies, as well as procedures for handling complaints, need to be strengthened or developed further, and recommend such changes or amendments to the Council for consideration and approval;

vii) Produce an annual report of the activities of the Code of Conduct Committee, including an outline of the cases brought before it during the year. The names of Council members against whom alleged breaches were dismissed shall not be disclosed. The report shall be presented annually at the first Council meeting of the year;

viii) Amend the Code of Conduct for members of Council as required, provided that such code or amendment must be submitted to Council for its approval; and

ix) Establish a process and procedures to determine and deal with conflict or potential conflicts of interest, as well as the disclosure of such conflict of interest, and review of identified or reported conflict of interest cases.

d) Training and development

i) Establish, in consultation with Executive Management, induction and orientation programmes for new Council members, designed, among other things, to familiarise new members with the University’s profile, business and operations, as well as the expectations of the members’ contribution; and

ii) Establish, in consultation with Executive Management, continuing education programmes for existing Council members that are relevant and appropriate to their areas of responsibility, to improve their skills and knowledge relevant to the business of Council and the University in general.

e) Social and ethics

The Committee performs all the functions necessary to fulfil its role, as stated above, including the following statutory duties: Monitoring the Institution’s activities, having regard to any relevant legislation, other legal requirements, or prevailing codes of best practice, regarding matters relating to:

i) Social and economic development, including the Institution’s standing in terms of the goals and purposes of:

• The 10 principles set out in the United Global Compact Principles;

• United Nations Development Goals;

• The OECD recommendations regarding corruption;

• The Employment Equity Act;

• The Broad-Based Black Economic Empowerment Act;

• Good corporate citizenship, including the Institution’s -

o Promotion of equality, prevention of unfair discrimination, and reduction of corruption;

o Contribution to development of the communities in which its activities are predominantly conducted, or within which its products or services are predominantly marketed; and

o Record of sponsorship, donations, and charitable giving.

• The environment, health and public safety, including the impact of the Institution’s activities, and of its products or services;

• Consumer relationships, including the Institution’s advertising, public relations, and compliance with consumer protection laws; and

• Labour and employment, including -

o The Institution’s standing in terms of the International Labour Organisation protocol/guidelines on decent work and working conditions; and

o The Institution’s employment relationships, and its contribution towards the educational development of its employees.

ii) Exercise ongoing oversight of the management of ethics, and in particular, oversee that it results in the following (as recommended in Principle 2 of the King IV Report on Governance for South Africa, 2016):

o Application of the Institution’s ethical standards to the processes for the recruitment, evaluation of performance and reward of employees, as well as the sourcing of suppliers;

o Having sanctions and remedies in place for when the Institution’s ethical standards are breached;

o The use of protected disclosure or whistle-blowing mechanisms to detect breaches of ethical standards, and dealing with such disclosures appropriately; and

o The monitoring of adherence to the Institution’s ethical standards by employees and other stakeholders through, among others, periodic independent assessments.

iii) Drawing matters within its mandate to the attention of the Council, as occasion requires; and

iv) Reporting, through one of its members, to the stakeholders of the Institution on the matters within its mandate.

f) Advancement, marketing, and communication

i) To ascertain degree of alignment of the advancement, and marketing and communications strategies to the University’s vision, mission, and Strategy;

ii) To satisfy Council that appropriate plans for fundraising and building the University’s brand are in place;

iii) To receive progress reports from Executive Management and provide feedback and advice;

iv) To consider recommendations and reports from the Management Team, and submit items for approval to Council;

v) To evaluate the impact of the general activities of the two Directorates on servicing the needs of the University; and

vi) To evaluate the programmes and policies of the ViceChancellor and other members of Senior Management with respect to:

o Evidence that is both quantitative and qualitative about fundraising and branding drives; and

o Evidence on review processes of the plans and policies.

g) Compliance

Performance of the following recommended practices under Principle 6 of the King IV Report on Corporate Governance:

i) Assume responsibility for the governance of compliance with applicable laws, adopted non-binding rules, codes and standards, by setting direction for how compliance should be approached and addressed;

ii) Monitor the implementation of a policy that articulates and gives effect to its direction on compliance, and that identifies which non-binding rules, codes and standards the Institution has adopted;

iii) Monitor the implementation and execution of effective compliance management;

iv) Oversee compliance management so that it is understood, relates holistically, and is responsive to changes and developments following continuous monitoring of the regulatory environment; and

v) Disclose an overview of compliance management; areas of current and future focus; actions to monitor and address compliance management; material or repeated sanctions, fines and penalties on the organisation, its officers or members; environment regulator inspections; and incidents of non-compliance and the consequences.

The following functions are delegated to the Committee by Council:

i) Filling of vacancies in Council and Council committees based on the criteria, workload and skills requirements determined by Council;

ii) Appointment of Council members to serve on the Code of Conduct, Appeals, Task Team, Working Groups, or other ad hoc committees, unless determined otherwise by Council; and

iii) Appointment of governance and other related service providers/consultants, subject to a Council-approved process.

2.7 Remuneration Committee

The role of the Committee is to assist Council to ensure that:

a) The University remunerates Executive Managers fairly and responsibly;

b) The payment of honoraria and other incidental expenses to Council members is accurate, complete, and transparent; and to

c) Monitor and evaluate the implementation of the Remuneration Policies and Practices.

The Remuneration Committee:

i) Oversees the setting and administering of remuneration at senior management levels in the University;

ii) Oversees the establishment and implementation of a Remuneration Policy that will promote the achievement of institutional strategic objectives and encourage individual performance at senior management levels;

iii) Makes recommendations to the Council on all senior management remuneration levels and annual increments, in accordance with institutional affordability;

iv) Reviews the outcomes of the implementation of the Remuneration Policy for whether the set objectives are being achieved;

v) Ensures the development and implementation of a performance management system for Senior Management, and that the principles of this system are applied annually;

vi) Considers the results of the evaluation of the performance of the Vice-Chancellor and other Senior Managers in determining remuneration;

vii) Selects an appropriate comparative group of higher education institutions when comparing remuneration levels for Senior Management;

viii) Makes recommendations to Council on the payment of honoraria and other incidental expenses to external members of Council;

ix) Oversees the preparation and recommending to the Council of the Remuneration Report, to be included in the Annual Report, for whether it:

o Is accurate, complete, and transparent;

o Provides a clear explanation of how the Remuneration Policy has been implemented, including use of appropriate benchmarks; and

o Provides full disclosure of each individual Executive Manager’s and external Council member’s remuneration.

x) Oversees the annual review of the Remuneration Policy.

2.8 Student Services Committee

The Council established the Student Services Committee to be chaired by one of the external members of Council to:

a) Advise on policy in respect of student services within the University;

b) Monitor and oversee the provision of non-academic services to students, that create an environment conducive for student success; and

c) Monitor the promotion of a safe, conducive and academically stimulating life and learning environment that encourages personal development and student satisfaction.

The Committee is comprised of Council, Management and SRC members, and meets four times a year.

2.9 Information Technology (IT) Governance Committee

The Information Technology Governance Committee of Council (ITGC) is a standing committee of the Council with the following responsibilities:

a) To support the Council in the governance of the University by ensuring that the strategic assets of IT and its related risks and constraints are well governed and controlled to ensure that IT supports the strategic objectives of the organisation;

b) To consider the leadership and organisational structures and processes, ensuring that the IT sustains and extends the University’s strategies and objectives;

c) To assist Council in its governance role by ensuring that the University has implemented an effective IT governance framework to enable the organisation to deliver value from IT, whilst optimising value for money and managing risk;

d) The duties and responsibilities of the members of Council who are on the ITGC are in addition to those as their role on Council; and

e) The deliberations of the Committee do not reduce the individual and collective responsibilities of Council members regarding their fiduciary duties and responsibilities, and they must continue to exercise due care and judgment in accordance with their statutory obligations regarding IT governance.

3. Statement of conflict management

Council has not mandated any specific committee to deal with conflict management and resolution within the University. Council previously decided to source external, independent mediators or arbitrators, through a Councilapproved process, whenever there was a need to resolve any dispute or manage conflict that threatens the governance, management, and operations of the University; as well as to manage and resolve disputes arising within the University in a constructive, transparent, fair and effective way for all involved. All matters referred to the Council for consideration must firstly have gone through the internal due processes and channels, and should be group-specific matters, i.e., not individual cases. The decision or resolutions of the Committee would be final, and would be tabled at Council for information in a summary form.

4. Code of Conduct for Council and Members of Council

The Code of Conduct for Council and Members of Council guides Council in its workings, as well as the conduct of individual Council members as they carry out their duties.

The purpose of the Code is not intended to inhibit the actions of a member of Council, but to ensure that where there is a conflict between any such actions and the best interests of the University, the interests of the University will take precedence. It furthermore provides a member of Council with a set of principles as to what is regarded as appropriate conduct by a Council member in performing their functions and duties.

This Code should be seen as a means of ensuring selfregulation by a member of Council, and as an instrument for acting with regard to inappropriate conduct on the part of a member of Council.

In exercising their powers and performing their functions, Council members must always:

i) Serve the interests of the University and its staff, students and the public at large with the highest degree of integrity, objectivity, equity, fairness and ethics, as befitting persons appointed to such office;

ii) Enhance the public image of the University, as well as interpret the community to the University; and

iii) Support the Vice-Chancellor in their fulfillment of objectives and policies of the Council.

The following are some of the fundamental principles covered in the Code:

4.1 The principle of democratic governance

A member of Council must act in a manner that is respectful of and in accordance with the principle of democratic governance. Council should also create an environment that encourages the participation of all members of Council.

4.2 The principle of accountability

Members of Council are directly accountable to each other as Council, for performance of their functions and duties; and indirectly, through Council, to the staff and students of the University and to the public at large. Council is accountable and responsible for the performance and affairs of the University.

4.3 The principle of transparency

Council accepts that it is accountable to those it serves. It is important for them to inform stakeholders of their decisions timeously. A member of the Council is expected to perform their functions and duties in a manner that reflects the highest ethical conduct, and that encompasses integrity, honesty, and openness. Decisions made should be objective and without influences.

4.4 The principle of respect for the rights of others

A member of the Council must respect the rights of others.

4.5 The principle of objectivity

A member of Council must perform their functions and duties fairly, and not allow prejudice, bias or the influence of others to override their objectivity. Any actual or potential conflict of interest must be disclosed, but must also be seen to be avoided.

4.6 The principle of cooperative governance

The Council commits itself to the notion of cooperative governance, which is defined as, “a social contract in which diverse parties agree to suspend particular interests in the interests of reconstruction and development”. The Council must work with other university structures, and in doing so, accepts the spirit of academic freedom.

4.7 The principle of collective responsibility

A member of Council is collectively responsible for resolutions of Council, and must abide by such resolutions. A member representing Council in another university structure must represent resolutions of Council in that structure in the best possible manner.

4.8 The principle of fiduciary responsibility

A member is appointed to the Council to serve both the interests of the University and the public. On acceptance of the office, a member of Council becomes a trustee for the benefit of the University and the public they serve, which gives rise to an obligation on their part to fulfill their responsibilities solely with the purpose of promoting the best interests of the University and the public.

Fiduciary duties of a member of Council entail, inter alia, the following:

1.3.8.1 The duty to act:

• in the best interests of the University by exercising reasonable care, skill and diligence in the conduct of his/ her responsibilities and;

• legally, honestly and within his/her powers.

1.3.8.2 A duty to refrain from misusing information.

1.3.8.3 A duty not to act in a manner which creates a conflict between duty and personal interest.

1.3.8.4 A member of Council who acquires special knowledge or information by virtue of a confidential or fiduciary relationship with another is not free to exploit that knowledge or information for his/her own personal benefit. The broader principle is inherent in the nature of the fiduciary relationship that prohibits a member of Council from extracting secret profits from his/her position of trust.

4.9 The principle of independence and integrity

A member of the Council always undertakes to apply their mind to the matters before them in an open and independent manner, with integrity, and without undue influence, fear or favour.

4.10 The principle of confidentiality

A member undertakes to honour, at all times, the trust and confidence bestowed upon them. They undertake not to disclose inappropriately and without authority, deliberations or decisions of Council, in a manner that will be detrimental to the University.

As per previous Council decision, it is the responsibility of the Chairperson of Council and the Vice-Chancellor to communicate to the University community matters of Council, including decisions taken after each meeting.

4.11 The principle of respect for the privacy of the personal affairs of members of Council

Council respects the privacy of the personal affairs of a member of Council. Notwithstanding this, a member of the Council should always conduct themself in a manner that will not be prejudicial to the best interests of the University.

5. Conflict of interest: Policy, principles, and rules application to Council members

Council approved a Conflict of Interest Policy that applies to all Council and Council committee members, which regulates the Declaration of Conflict of Interest by Council members, concerning potential and real conflicts of interest, in the conduct of University affairs.

Chairperson of Council

Dr LF Platzky

Registrar

Mr SS Mokoena

7 Council Statement on Sustainability

There have been no significant differences between 2022 and prior years, when considering the challenges presented in maintaining the continued sustainability of the Cape Peninsula University of Technology (CPUT).

However, this was the first year that a significant penalty was applied for the annual enrolment deficit, amounting to R86m. Whilst the Covid-19 pandemic and its related consequences have been successfully handled by the Institution, it is now having to deal with a new issue impacting the learning and teaching environment – loadshedding.

Student uncertainty as to how the academic year would be rolled out was reflected in the under-enrolment of both first-time entering students and returning students in 2022. The logical consequence of the under-enrolment was then the slow take-up of residence places. Historically, residence accommodation has been in under supply.

The continued sustainability of CPUT remains dependent on factors being influenced both nationally and institutionally, and are clearly focused on political, economic, social, and technological factors, as the Government subsidy remains the single biggest contributor to the income of the Institution. The funding challenges faced by both the Higher Education (HE) Sector and National Student Financial Aid Scheme (NSFAS) are placing a severe strain on the fiscus, to the point that certain grant funding has been placed on hold (e.g., Infrastructure Efficiency Grant). This is a recurring trend that will continue to influence the landscape in the future, exacerbated by the long-term effects of loadshedding as the growth of the economy is constrained.

The Department of Higher Education and Training (DHET) is still engaged in the development of a three-year tuition fee model. Until this is completed, the annual tuition fee increase is being capped at inflation, and this is communicated directly to the Council.

The subsidy for 2022 was relatively flat, and this was coupled with a penalty for under-enrolment of R86m for 2022. Whilst this is a sizeable reduction, the Institution has had to implement further cost-saving measures to ensure that it does not damage the fabric of the Institution, and at the same time preserve its financial sustainability. The Vision 2030 (V2030) Strategy remains a priority, and focused measures have been put in place to address the enrolment numbers at faculty level, and the retention of students at all levels of study.

Measures have also been put in place to ensure that the Institution remains on target to achieve the goals set out in V2030.

The cost drivers of the Institution have not changed since the post-pandemic era. The Institution continues to deal with demands for data and online connectivity. Whilst this is dealt with sympathetically, it cannot become the norm. The Institution is still faced with costs that are directly influenced by international cost drivers, the foreign currency exchange rate, and an ever-increasing rate of inflation caused by rising energy costs.

In 2022, the continued viability of the provision of both leased and owned residences was contemplated when considering the continued sustainability of the Institution, as students failed to occupy their allocated rooms. This was in the main due to the climate of uncertainty around the rollout of the academic year, whether face-to-face or remote learning.

Future planning initiatives are under way for the development of new residences in Bellville, Mowbray, and Cape Town. This will not reduce the continued need for leased student accommodation, but will rather supplement what the Institution already has in use.

The cost of doing business in the Western Cape remains high, and this is not expected to be reduced, due to the ever-increasing costs associated with loadshedding. Multiple opportunities have to be considered to reduce the dependency on the national power grid, but this should also be viewed against an “overall green strategy”.

The cost of administrative staff still remains above 50% of the salary cost, and this needs to be controlled to become less than 45% of the salary cost. The employment of academic personnel has been given precedence, and will continue to be prioritised as part of this process.

The demand for access to CPUT by prospective students remains strong. This has been evident during the past five years, and is supported by the number of applications received from first-year and first-choice applicants. However, applications alone do not mean anything until they are converted to enrolments, and the focus of sustainability has to be the number of students doing the full full-time equivalents (FTE’s). The total number of students enrolled during 2020 was 32,383; 32,410 in 2021; and 33,724 in 2022.

The overall pass rate (i.e., the degree credit success rate), for the past five years has been 78,6% in 2018; 79,9% in 2019; 82% in 2020; 78% in 2021; and 79,6% in 2022.

HEQSF-Alignment Project and new qualifications

CPUT, like many other universities, faced significant challenges when implementing the Higher Education Qualifications Subframework (HEQSF). Numerous programmes required major curriculum development, often constituting a 50% or more change to their design. Additionally, some programmes, like BTech qualifications and other Category C non-aligned qualifications, had to be phased out and replaced with HEQSF-aligned qualifications. Despite these challenges, CPUT has completed the HEQSF alignment process.

The University needed sufficient time to make transitional arrangements for existing programmes, and to develop new HEQSF-aligned qualifications. However, delays in the approval and accreditation of these programmes made it difficult for CPUT to meet enrolment targets. To address this, the University developed 133 new applications to replace non-aligned and phased-out qualifications. All new HEQSFaligned qualifications were submitted to DHET for Programme and Qualification Mix (PQM) clearance, to the Council on Higher Education (CHE) for accreditation, and to the South African Qualifications Authority (SAQA) for registration. All qualifications submitted between 2015 and 2020 have been finalised and updated on the PQM. Only one qualification awaits CHE accreditation. The HEQSF alignment process successfully concluded in 2022.

Dr LF Platzky

Chairperson of Council

8 Report of the Audit and Risk Oversight Committee

The Cape Peninsula University of Technology’s (CPUT) Audit and Risk Oversight Committee (AROC) of Council has an independent role, with accountability to Council. The Committee does not assume the functions of management, which remain the responsibility of the Vice-Chancellor, Deputy Vice-Chancellors, Executive Directors, and other members of Senior Management. As such, members of AROC should not be involved in any business or other relationships that may have a material bearing on the exercise of their independent judgment as members of the Committee. The objectives of the Audit and Risk Oversight Committee are tabled in Figure 1.

1

Ensure that the interests of all stakeholders are properly protected in relation to financial reporting and internal control;

2

Provide Council with an independent assessment of the University’s financial position and accounting affairs, with the objective of providing further assurance of the quality and reliability of the financial information used by Council, and contained in the documents approved by Council for issue on behalf of CPUT;

3

Keep under review, the effectiveness of CPUT’s internal control policies and procedures for the identification, assessment and reporting of risks;

4

Ensure that CPUT has implemented an effective policy and plan for risk management that will enhance the University’s ability to achieve its strategic objectives; and

5

Ensure that CPUT’s disclosure regarding risk is comprehensive, timely, and relevant.

The Committee fulfils its role in line with the approved Terms of Reference, and may call on the Chairpersons of the other committees of Council, the Vice-Chancellor, Deputy ViceChancellor, and any of the Executive Directors, Officers, Secretariat, or other Assurance Providers to provide information, subject to a Council-approved process.

Composition and attendance

The reconstituted Council, at its meeting of 22 October 2022, also reconstituted all its committees and elected chairpersons for a period of four years. At the end of 2022, the reconstituted Committee had four members, consisting of three external Council members and one external member, all of whom are independent of the University. The members of AROC have a variety of skills, ranging from business, auditing, legal, governance, information technology, risk management, and financial services. The term of office of independent external Committee members appointed by Council is four years.

Meetings are held at least four times per year, and are attended by the External and Internal Auditors and relevant members of the Executive Management of CPUT. The auditors have unhindered access to the Committee. During 2022, the Committee held quarterly meetings that were all quorate, and carried out its oversight duties, as set out in the Terms of Reference.

Figure 1: The Objectives of the Audit and Risk Oversight Committee (AROC Terms of Reference, Reviewed February 2023)

Summary of main activities

The Audit and Risk Oversight Committee complied with key aspects of its mandate in 2022. In executing its duties, the Committee attended to the following key matters:

Internal audit

AROC is responsible for overseeing Internal Audit, and during the year under review, the Committee performed the following:

• Reviewed and approved the annual Internal Audit Plan and budget;

• Monitored implementation of the Internal Audit Strategy, which is aligned with CPUT’s Vision 2030;

• Obtained feedback on the outcomes of internal audits completed in 2022;

• Obtained feedback on the risk management and corporate governance practices, as assessed by Internal Audit; and

• Ensured that there is a process of follow-up on significant findings, and that Internal Audit reports on the progress of implementing agreed management actions.

External audit

AROC is responsible for recommending the appointment of the External Auditor, and to oversee the external audit process, and in this regard, the Committee:

• Recommended the appointment of the External Auditors, effective 1 January 2023, to ensure the external audit function is fulfilled at CPUT;

• Approved the terms of engagement and remuneration of the external audit engagement;

• Monitored and reported on the independence of the External Auditors in the annual financial statements;

• Reviewed the contracts for non-audit services to be rendered by the External Auditors; and

• Followed up on any possible reportable irregularities identified and reported by the External Auditors.

Risk management and internal controls

AROC is an integral component of the risk management process, and during the year under review, the Committee:

• Ensured that continuous risk monitoring by Management takes place;

• Ensured that appropriate risk responses are implemented;

• Liaised with the Internal Auditors and Management to exchange information relevant to risk;

• Ensured that the effectiveness of the system and process of risk management is formally communicated to Council;

• Reviewed and approved the CPUT Risk Management Policy and Framework;

• Reviewed and approved the Enterprise Risk Management Strategy, which is aligned with CPUT’s Vision 2030;

• Reviewed reporting concerning risk management that is to be included in the Annual Report for it being timely, comprehensive, and relevant; and

• Provided oversight over the financial reporting risks, internal financial controls, and fraud risks, as these relate to financial reporting and general IT risks.

Combined assurance

The Committee ensured that a combined assurance model was applied to provide a coordinated approach to all assurance activities to address all the significant risks that CPUT is facing, and monitored the relationship between the various internal and external assurance providers. The combined assurance model is articulated in a documented Framework approved by the Committee and Council in 2021.

Information technology (IT) governance

The Committee ensured that IT risks are adequately addressed, and received appropriate assurance on controls, and considered the impact of IT in relation to financial reporting and on significant operational activities.

The Committee has increased its scrutiny of the University’s IT systems and related IT risks. During 2022, the Director: Computer and Telecommunications Services (CTS) presented quarterly reports to the Committee, which focused on:

• Progress in addressing external and internal audit findings;

• IT strategic and operational risks, including cyber security risk; and

• IT resilience and disaster recovery.

Fraud and litigation

The Committee received reports on matters of fraud, and the results of forensic investigations into cases of fraud. It considered Management’s actions in dealing with these cases of fraud, and received assurance from Management regarding their compliance with relevant legislation regarding the incidents of fraud, and actions to recover monies and assets.

Management provided feedback on areas of litigation that posed a risk to CPUT in terms of financial impact and/or reputational consequences.

Compliance with laws and regulations

Various laws and regulations are applicable to CPUT. Management regularly reported to AROC on CPUT’s compliance with laws and regulations. Independent assurance was provided by the Internal and External Auditors, based on their annual audit coverage plans.

Conclusion

Arising from each AROC meeting is a Chairperson’s Report to Council, indicating matters requiring Council attention for noting, approval or action.

AROC complied with its Terms of Reference, and is satisfied that CPUT has continued to maintain and manage internal control systems effectively, in a manner that ensures the achievement of institutional objectives and operational goals. This was obtained by means of a risk management process, combined assurance approach, as well as the identification of corrective actions and enhancements to internal processes and controls.

The Committee reviewed and recommended the following reports in this Annual Report to Council for approval:

• Report on Internal Administrative/Operational Structures and Financial Controls; and

• Report on Assessment of Risk Exposure and Risk Management.

The Audit and Risk Oversight Committee therefore recommends the 2022 Annual Report to Council for approval.

Chairperson of Audit and Risk Oversight Committee Ms A Vabaza

9 Report on Internal Administrative/ Operational Structures and Financial Controls

Systems of internal control and processes

Smart systems, including automated internal control systems, are a key enabler of CPUT’s Vision 2030. The University maintains a system of internal control to provide reasonable assurance regarding the achievement of its objectives. Effective, efficient, and transparent financial management and internal control systems ensure the accuracy of the University’s accounting records and the integrity of the data used to prepare financial statements. The system of internal control is designed to ensure effective and efficient operations, the reliability of financial reporting, and overall compliance with relevant laws and regulations, to prevent loss of resources and assets, and to reduce legal liability.

The internal control system is designed to provide reasonable assurance to the University and the Council regarding an operational environment that promotes the safeguarding of the University’s assets, and the preparation and communication of reliable financial and other relevant information. Internal control objectives include measures to ensure completeness, accuracy, and proper authorisation in relation to documented organisational structures setting out the segregation of responsibilities, as well as established policies and procedures, including a code of ethics.

It is the responsibility of Management to establish and maintain effective internal control systems. As part of fulfilling that responsibility, Management understands and supports the role of Internal Audit. As such, Management is responsible for ensuring that audit findings and recommendations are addressed in an appropriate manner.

There are inherent limitations to the effectiveness of any system of internal control, including the possibility of human error, and the circumvention of controls. Accordingly, even an effective internal control system can only provide reasonable assurance with respect to the reporting of financial information and the safeguarding of assets.

Computer and telecommunications services

The University applies modern technology solutions, such as virtualisation, storage redundancy, and managed backup applications in its data centres. These solutions are developed and implemented in accordance with defined and documented standards to achieve efficiency, effectiveness, reliability, and security. In utilising technology to transact with staff, students and third parties, controls are designed to minimise the risk of fraud and error. During 2022, CPUT continued to upgrade its information technology (IT) infrastructure and software suite to meet the demands of multimodal learning and a remote workforce. Simultaneously, IT security is continuously reviewed and upgraded to mitigate the increased cyber security risk. In response, a significant portion of the 2022 Internal Audit Plan was assigned to IT governance, information security, and IT resilience. The Information Technology Governance Committee of Council provides oversight of the IT control environment, including the implementation of the IT Strategy.

Internal audit

Internal Audit monitored the adequacy and effectiveness of the internal control systems through the approved 2022 Internal Audit Plan. The Internal Audit Plan is developed annually, following a risk-based approach. The Plan is approved by the Audit and Risk Oversight Committee (AROC), and is amended in response to emerging risks. Internal Audit’s findings and recommendations are reported to Management and to the Council via AROC.

Follow-up reviews are performed continuously to verify the implementation of agreed Management action plans in response to previously reported Internal Audit findings. Progress is reported to Executive Management to ensure that actions are implemented timeously.

Internal Audit completed 33 assignments in 2022, with the major themes depicted in Figure 1. The most significant themes for 2022 included Finance and Reporting; and Environmental, Social and Governance (ESG) (Figure 1).

Academic Support and Integrity

Cyber Environmental, Social and Governance

Finance and Reporting

Risk/Resilience

Smart Workforce

Combined assurance

CPUT adopted a combined assurance model to provide a coordinated approach to all assurance activities of the University. The model is designed to address the significant risks that CPUT faces, and to monitor the relationship between internal and external assurance providers. Combined assurance is the process of internal and external assurance providers working together and combining activities to reach the goal of integrating and aligning assurance processes so that Executive Management and governance bodies (Council and AROC) obtain a holistic view of the effectiveness of the University’s governance processes, risks and controls, to enable them to set priorities and act upon them.

CPUT has adopted a principles-based approach to combined assurance, which is designed to provide flexibility. As such, Council, Executive Management, and assurance providers are not slotted into rigid lines or roles. The areas of responsibility for these role players are generally described as:

• Accountability by Council to stakeholders for oversight;

• Actions (including managing risk) by Management to achieve CPUT’s objectives; and

• Assurance and advice by an independent internal audit function to provide insight, confidence, and encouragement for continuous improvement.

Statement of assessment of internal controls

Reports to AROC by both Internal and External Auditors indicate that there are some areas of control that are deemed to be inadequate or ineffective. These matters were reported to Management for action, and are monitored by Executive Management and AROC.

Statement by Audit and Risk Oversight Committee

The Audit and Risk Oversight Committee reviewed the Report on Internal Administrative/Operational Structures and Financial Controls in the year under review at its meeting on 19 May 2023, which was quorate. The documentation for approval by the Committee was also circulated with the meeting agenda in advance, with due notice.

Chairperson of Audit and Risk Oversight Committee

Ms A Vabaza

Internal Audit Director

Ms H Van Dyk

Figure 1: Internal audits 2022

10 Enterprise Risk Management

1. ERM Plan 2022

The Cape Peninsula University of Technology (CPUT) approved its Vision 2030 Enterprise Risk Management (ERM) Strategy during 2021. In order to give effect to the strategy, an ERM Implementation Plan is developed for each successive year. A high-level schematic view of the ERM Operational Plan 2022 is shown below.

Risk governance

Council Risk quantification and aggregation Risk and control optimisation (including business continuity and disaster recovery)

Agile, dynamic ERM for continuous improvement

Risk monitoring and reporting Risk culture and awareness

An overview of key ERM initiatives implemented during 2022 is depicted in the table below.

1.1 Summary of ERM initiatives implemented during financial year 2022

1.1.1 Risk governance

Review of the ERM Framework and Methodology

Establishment of the Institutional Combined Assurance Forum (ICAF)

Approval and utilisation of the Institutional Risk Intelligence Maturity Diagnostic Model

Ratification of the Fraud Risk Governance and Management Scorecard (FRGMS)

Integration of strategy, risk, and resilience

The ERM Framework and Methodology was approved by Council during 2021. The Framework was refreshed during 2022, to align with the changing and volatile university operating environment. This process will be finalised by the first quarter of 2023, when the updated Framework will be submitted to governance structures for consideration and approval.

The University, during 2022, approved the formation of the Institutional Combined Assurance Forum (ICAF), together with the Terms of Reference, which was an evolution from the Risk Champions Forum that had been constituted in early 2021. The Forum conducted two initial meetings in 2022, with approved minutes.

The Management Committee and the Audit and Risk Oversight Committee (AROC) of Council, respectively, supported and approved the CPUT Risk Intelligence Maturity Diagnostic Model. The first diagnostic results were issued during June 2022, together with a gap analysis report for continuous improvement. This initiative effectively and progressively prepares for the planned independent ERM maturity assessment by the Institution’s Internal Audit function scheduled for 2023.

CPUT approved the adoption and operationalisation of the Fraud Risk Governance and Management Scorecard (a leading practice concept, courtesy of the Association of Certified Fraud Examiners (ACFE). This approach will progressively enhance the University’s ethics risk management approach.

The Institution understands that governance, strategy, risk, assurance, compliance, quality, and sustainability are inseparable. The ERM function was involved in the strategic planning processes of the University, and presented ERM reports at selected institutional strategic planning committee sessions during 2022. A report entitled “Integrating Strategy, Risk, Assurance, and Resilience” served during 2022 at the committee responsible for strategic planning.

1.1.2 Risk assessment

Institutional risk workshop

This annual initiative was conducted in November 2022. The University leadership and selected members of Council and its committees attended and contributed to the risk review process. The Executive Management Team is responsible for monitoring and reviewing all institutional (enterpriselevel) risks on a six-monthly basis. The institutional Risk Register was approved by the ViceChancellor and Principal on 5 December 2022. The approved institutional risk profile was shared with the Internal Audit function to contribute to the risk-based internal audit planning methodology of the University.

Support and academic services risk reviews

Changing focus of risk reviews

Support and academic services risk reviews (at institutional, divisional, functional, and departmental level) were conducted on a six-monthly basis across the University.

The ERM function continued to propose and share information and risk tools university-wide to enable independent and coordinated management of risk. Thus, all support and academic services “own” their risk initiatives, including the risk reporting thereof.

Planned ERM activity Summary of initiatives

1.1.3 Risk quantification and aggregation

Mapping exercise to align all institutional objectives with the institutional risk profile

Quantitative risk management, as part of financial risk measurement and management

A mapping exercise was completed during 2022 to link all institutional objectives to the current institutional risk profile in order to identify any potential gaps in the ERM process and approach.

The University, in 2022, continued to manage its financial risk profile mainly through its Investments Sub-committee of the Finance Committee of Council. A suite of advanced risk techniques, such as strategic financial scenario planning and analysis, dynamic hedging mechanism, risk adjusted performance measures (such as the Sharpe ratio), credit risk measurement and management, and liquidity and treasury risk measurement and management, contributed to create, grow, sustain, and preserve CPUT’s assets.

1.1.4 Risk and control optimisation (including business continuity and disaster recovery)

Business Continuity Management (BCM), including Disaster Recovery Planning (DRP)

CPUT finalised its institutional, integrated BCM Strategy, which was approved by management structures during 2022. The Strategy was independently audited by the Internal Audit function, and found to align with leading practices.

1.1.5 Risk monitoring and reporting

ERM quarterly reporting to risk governance structures

The ERM function submitted quarterly reports to Council committees responsible for quality, risk, governance, ethics, and information technology, with quarterly attendance at the Finance and Investments Committee of Council.

1.1.6 Risk culture and awareness

ERM awareness sessions

A total of 3 risk awareness sessions were conducted for university staff, as well as for Senior and Middle Management.

BarnOwl ERM training sessions Five customised BarnOwl training sessions for Combined Assurance Champions were conducted during 2022.

1.1.7 Agile, dynamic

ERM/risk tooling (concepts and techniques used at CPUT)

Risk technology initiatives

Continuous ERM embedding into university strategic, tactical, project and operational processes

Recognition by the Institute of Risk Management South Africa (IRMSA)

ERM

for continuous improvement

The University utilised leading practice risk techniques in its risk initiatives, including risk and control self-assessment (RCSA), financial ratio analysis, strategic financial scenario planning and analysis, ERM Maturity Model, Fraud Risk Governance and Management Scorecard, and the risk intelligence brief (reports).

The Risk Management Information System (RMIS) used by CPUT is BarnOwl enterprise, governance, risk, and compliance (eGRC), which automates the management and tracking of risks, university-wide.

In 2022, the Legal and Contracts Management Framework of the University, which is under development, incorporated risk components to enable risk-informed decision making in strategic financial investments.

CPUT was a 2022 finalist in the IRMSA Industry Awards, in the category of Education.

2. Institutional Risk Profile 2022

The University follows an agile, dynamic approach to its ERM initiatives. An institutional ERM workshop was conducted on 7 November 2022, where Senior Management and selected members of Council and its committees attended and contributed to the risk review session. The institutional risk profile is shown in the table below.

2.1 Summarised Institutional Risk Register 2022

The University maintains a systematic, disciplined, and proactive approach to risk leadership and management, incorporating the latest research and thinking on ERM. The 2022 risk list includes an opportunity, “disruptive technologies”, showing that the University leverages and takes advantage of upside risks in its operating environment. A summarised version of the Institutional Risk Register is appended to this report.

3. Conclusion

CPUT continues to thrive on making incremental, consistent improvements in its ERM arrangements and apparatus as it progressively aspires to more sophisticated and advanced risk infrastructural capabilities. The ERM function is thus now focusing on leveraging on data science, data governance and management, data warehousing, data mining, data analytics, artificial intelligence (AI) platforms, supervised and unsupervised machine learning (ML), robotics process automation (RPA), and smart platforms, such as Python, MATLAB, R, inter alia

Appendix A: Summary of the Institutional Risk Register 2022

ICT 16 9

9 The Computer and Telecommunication Services (CTS) function monitors general technological developments and their impact on university-wide initiatives, such as teaching and learning, thus informing the University’s risk response

The CPUT approved Business Continuity Management (BCM) Strategy includes a cluster on technology

Directorate Internal Audit conducts consulting and assurance IT audit engagements/projects

ERM function flags emerging risks via the agile, dynamic continuous risk review and monitoring protocols

9 Cyber Security Strategy and Programme Information Security Strategy

Cyber Security Governance Team and a Cyber Security Operations Team

Information security related policies, i.e., Information Security Policy, Access Control Policy, and the IT Acceptable Usage Policy

Cyber Security Awareness Programme

Vulnerability Management Programme involves regular vulnerability scanning of critical assets, review of vulnerabilities, as well as remedial action

Cyber risk budgeting (part of the annual IT budget and planning process)

Cyber insurance

16

13 Institutional Vision 2030 Finance Strategy

Governance oversight by the Finance and Investments Committees of Council

Strategic financial scenarios developed and revised (continuous assessment of financial sustainability)

Financial risk measurement and management

Funds invested in the short-term to generate interest income

Insurance policy and coverage plan

Assessment of students with debt pursuing second degrees

Strict management of recurring income across all levels of funding

Strict management of operating expenditure across the University

CPUT financial regulations, guidelines, and standard operating procedures

CPUT Budget Guidelines

Delegation of authority limits

Student Debt Management Plan

Procurement Policy

Drive for third stream funding in place

DVC: Operations; Senior Director: Computer and Telecommunication Services (CTS)

DVC: Operations; Senior Director: CTS

Executive Director: Finance

ICT 12 25 9 Revised IT Strategic Plan

Annual IT budget

Digital learning facilities/platforms

High performance network

CTS Cloud Strategy

Providing Digital/e-Learning facilities that are accessible for the CPUT community

Procurement and installation of new network equipment

Procurement and installation of Network Monitoring and Management Tool

Renewal of all third party/ Vendor license/ SLA agreements

Security Governance Structure, Strategy and Programme, Cyber Security Operations Team

Cyber Security Awareness Programme

Vulnerability Management Programme

Implementation of preventative, detective, corrective, and recovery controls

20 15 13 Approved Institutional Integrated BCM Strategy

Approved and continuously, independently tested IT Disaster Recovery Plan in place

Regular maintenance (update) of the IT Disaster Recovery Plan

Backup and fail-over solutions in place and tested periodically

Review, update and approval of the IT Disaster Recovery Plan by the different Governance Committee structures

Regular reviewing, updating and approval of backup and restore procedures

Evaluation of documented processes and procedures for Disaster Preparedness to ensure the continuity of key business functions in the event of a disruption

Testing and reviewing offsite storage procedure to ensure data can be effectively recovered during a disaster

Internal audits on BCM, including disaster recovery planning

Enrolment Plan in place

Structure: Directorate: Institutional Planning in place

Academic Planning Unit within the Directorate: Institutional Planning has been capacitated Optimisation and leveraging on the online registration process

HEMIS Office to highlight under-enrolled programmes at various platforms, i.e., APC, ISPC, Dean’s Forum

Use of Data Analytics (PowerHEDA)

Late application and registration dates adjusted to accommodate late approval of programmes

Focus on retention and recruitment of postgraduate students

Increase supervision capacity and quality

DVC: Operations; Senior Director: CTS

DVC: Operations; Senior Director: CTS

DVC: Teaching and Learning; Executive Director: Office of the ViceChancellor

12

6

13

Delegation of authority/processes for approvals

Technology Transfer Office (TTO) has put in place a process for commercialisation that involves a due diligence assessment. The end result is a business model. Based on the attractiveness of the final model, a new spin-off company may be formed. In other instances, technology is licensed to third party companies, following receipt and assessment of a business model, and financial projections.

Holding company to hold equity in spin-off companies, Aonyx Holdings created in December 2017

Council sub-committee, Intellectual Property, Commercialisation and Enterprises (IPCE) established in 2017 to manage commercialisation aspects

Project Management Department in place

DVC: RTIP

20

16

5

Stakeholder Coordinator appointed in Office of the Vice-Chancellor

Condition assessments done at residences in relation to health and safety measures

Maintenance Strategy in place (prioritised and conditionbased)

Preventative and planned maintenance

Structures in place to address student matters, i.e., management and stakeholder forums

E-learning Strategy to promote an increase in the use of e-learning platforms that could be used in the event of business/class disruptions. (Recorded lectures available online).

Needs Survey to understand, from a student perspective, the residential needs for a conducive postgraduate (student) residential experience

DVC: Operations; DVC: RTIP

16 9

5

External Stakeholder Engagement Strategy

Stakeholder Engagement Coordinator appointed

Formal engagement with staff/students: Management and Unions Forum, Management and SRC Forum, EE Consultative Forum, ER Forum, Faculty Boards, ManCom, Senate, Sub-committees

Employee relations function in place Legal services function

University Code of Conduct for staff

Code of Conduct for Council members

Structures in place to address student matters: Management and committees

SRC Constitution and Code of Conduct

Marketing and Communication Directorate in place

Human Capital Strategy

Human Capital policies, strategies, structure, and organisational design arrangements

Continuous review of Human Capital strategies, policies and procedures

Governance structures and oversight

Performance leadership and engagement interventions

Appointment of the Senior Director: Human Capital during 2022

ViceChancellor; Executive Director: Office of the VC; DVC: Operations

DVC: Operations; Senior Director: Human Capital

Appendix A: Summary of the Institutional Risk Register 2022

16

13

Condition assessments and prioritise the refurbishment, new build and sustainability. Following maintenance philosophy of ISO 55000 and life cycle maintenance. Ongoing, now part of existing controls.

Compliance in Construction Regulations, SANS 104000 and OSHACT

Compliance with DHET Norms and Standards, and the Heritage Building Act

Municipal by-laws and environmental law

Repetitive repairs due to vandalism must be controlled by end user

Submission to DHET of quarterly reports in terms of expenditure

Submissions to Infrastructure Efficiency Grant visits by DHET, and manage CPUT budget very tightly

Annual maintenance budget and link high priority areas

Comply to DHET Macro Infrastructure Framework

Maintenance planning and prioritising as per life cycle maintenance process and time-based maintenance cycles. Focus on compliance, structural integrity and aesthetics.

Maintenance plans, as per ISO 55000

Operations; Director: Property Services

16 14

13 Integrated Institutional Operations Strategy Integrated Institutional BCM Strategy Sustainability Strategy Assurance and consulting services by in-house Internal Audit function

DVC: Operations; Director: Property Services; Registrar; Executive Director: Office of the VC

Enterprise Risk Manager Mr R Chibvongodze Chairperson of Audit and Risk Oversight Committee Ms A Vabaza

11 Report of the Institutional Forum

The year 2022 presented the global population with an opportunity to return to normalcy after a very tumultuous period as a result of the Covid-19 pandemic. As there was still uncertainty pertaining to staff returning to campus on a full-time basis, a hybrid approach was recommended, and the Institution, through the Health Cluster, managed the overall situation efficiently and effectively.

The guiding principles of the Institutional Forum (IF) fundamentally highlights the two principle functions of Institutional Forums, namely, advising Senate and Council, and providing oversight on strategic transformation initiatives. It is within this context that CPUT’s Institutional Forum needs to have a holistic overview of the transformation agenda of the Institution and monitor its progress.

Meeting dates

The IF convened quarterly meetings in 2022, and one special meeting via MS Teams to provide advice to Council on the appointment of the Senior Director: Human Capital.

• February 2022 – Meeting did not have a quorum

• 4 May 2022 – Colloquium on Institutional Autonomy was discussed, and a request was tabled for the presentations to be made available to IF

• August 2022 – Amended CPUT Statute presented by the Registrar

• 22 August 2022 – Annual Institutional Forum Workshop

Apart from the meetings, the Institutional Forum also hosted a very successful workshop on 22 September 2022 on the Bellville Campus. A number of speakers were invited and presented an overview on their respective areas of expertise around transformation and governance within Higher Education (HE). Ms Lucina Reddy presented CPUT’s latest targets and Employment Equity Plan; Prof Yunus Ballim (Wits) presented on the role of Institutional Forums within the South African HE system; and Dr Meron Okbandrias (School of Business, University of the Western Cape) spoke to the reforms in the HE administration. All presentations were well received, and questions were posed after each presentation to provide clarity on issues requiring additional insight.

13 October 2022 – the Forum requested a presentation on the overview of CPUT’s transformation agenda at the last meeting of the year. After a discussion amongst IF members, a decision was endorsed that the first meeting of 2023 should be changed in the institutional calendar. Furthermore, it was recommended that since IF advises Council, that this meeting should be scheduled prior to the first Council meeting of 2023.

Recommendation to Council

Senior Director: Human Capital: 23 March 2022 (Special Meeting)

Recommendation by IF on the appointment of the preferred candidate.

The Portfolio Committee on Higher Education, Science, and Innovation, in conjunction with CPUT, hosted the Colloquium on Institutional Autonomy of Universities in South Africa in March 2022. The presentation by the Department of Higher Education and Training’s (DHET) Director General, Dr Nkosinathi Sishi, resonated well with the Institutional Forum. He highlighted key factors that contribute to governance failures at universities, which include the fact that a number of Institutional Forums have become dysfunctional or marginalised at universities. One of the recommendations that emanated from the colloquium was the importance of cooperative governance in Higher Education. This is critical, and university Management and Councils ought to work closely with cooperative governance structures such as IFs, organised labour and Student Representative Councils in an attempt to address operational deficiencies. CPUT’s Institutional Forum is cognizant of the guiding principles for Institutional Forums, and one of the pertinent issues specifically relates to dysfunctional Institutional Forums. CPUT’s Institutional Forum comprises several stakeholders, and for this Forum to function optimally, members of IF are regularly requested to advocate for building trust amongst all stakeholders.

Several Institutional Forum members were invited to attend the Council on Higher Education’s institutional audit, which took place during October 2022. A number of pertinent issues were discussed in respect of CPUT operations in managing quality. These discussions included gender-based violence, staff recruitment, and initiatives such as the Vice-Chancellor’s Think-Tank on Gender Equality and Women Empowerment projects taking place at CPUT.

Members of the Institutional Forum regularly express their needs regarding training. However, the Forum was informed that DHET no longer provides training to Institutional Forums. This may be contributing to the many dysfunctional IFs currently in South Africa. Our Institutional Forum would like to plea with the Department to consider providing ongoing training and support to Institutional Forums.

Chairperson, Institutional Forum

Mr A Moses

Senate Report

1. Research, Technology Innovation and Partnerships (RTIP)

1.1 Research Strategy

The Cape Peninsula University of Technology’s (CPUT) Vision 2020’s fourth focus is Research and Innovation, realised by the Research, Technology and Innovation (RTI) 10-year Blueprint (2012–2022). A new 10-year RTI Blueprint, aligned with the new institutional strategy (Vision 2030), has been drafted and will undergo approval in 2023.

Reflecting on the 2022 academic year, CPUT can be proud of its many achievements, including: Research 2022 Awards

Awards for research activities during 2020–2022

Postgraduate supervision (2021 Graduates)

External funding – 2022

Research publications (2020 DHET submissions)

2021 Research Report

The 2021 annual Research Report was completed and distributed to the CPUT community. The document can be viewed on the CPUT website at: https://www.cput.ac.za/research-technology-and-innovation/reports

1.2 Research development and dissemination

1.2.1 Research publications

Research outputs 2005–2020

Figure 1. Audited research outputs for the period: 2005–2020

Table

on 30 January 2023: Submitted to DHET

1.2.2 Research funding and capacity building External funding for 2022 Academic Year (Pre-Awards)

• Black Academic Advancement Programme – 2023 Applications: Two postdoctoral applications submitted to the National Research Foundation (NRF) for review and final decisions

• BRICS Multilateral Joint Call for Applications: Two applications submitted to NRF for review and final decisions

• CHEC–CCT Research Programme: One application submitted to NRF for review and final decisions

• CHEC–WCG Call for Research Proposals for 2022/2023: Two applications submitted for review and final decisions

• Competitive Support for Rated and Unrated Researchers: Nine applications submitted to NRF for review and final decisions

• ISC Grant for Travel and Hosting Events: One application submitted to NRF for review and final decisions

• Knowledge Interchange and Collaboration: One application submitted to NRF for review and final decisions

• Research Development Grants for Y-rated Researchers: Three applications submitted to NRF for review and final decisions

• South Africa/France (Protea) Call for Joint Proposals: Two applications submitted to NRF for review and final decisions

• Thuthuka – 2023 Applications: A total of 13 applications for PhD, postdoctoral, and NRF rating tracks submitted to NRF

• Welcome Trust Grant: One application submitted to Welcome Trust for review and final decisions

Mentorship for black academic women

Six grants were awarded. Two proposals are being amended and in the process of re-submission. Only one proposal is outstanding. Most of the projects were started, although one only received ethical clearance in October (an issue that needs to be addressed in future). The special session dedicated to writing, scheduled towards the end of the year, did not take place because funding was placed on hold.

The Sisonke Supervision Mentorship Programme

A unique mentorship programme was developed in response to the specific needs identified by novice supervisors, comprising mentorship partnerships and a learning programme. This Programme was piloted in 2021, and launched as an institutional programme on 18 May 2022. Recruitment of mentees and mentors was done across the University, and they participated in a 12-week learning programme from July to October 2022.

1. Status

CPUT permanent staff members with Doctorates and Master’s degrees

Table 2. Summary of the number of Doctoral and Master’s degrees obtained per year

Number of CPUT NRF Rated Researchers: 2011–2023 (March)

1.3 Postgraduate Studies

A total of 1,485 postgraduate students were enrolled at CPUT in 2022, comprising 334 Doctoral students and 1,151 Master’s students.

Graduations

In 2022, 192 postgraduate students (12,92% of the total student enrolment) graduated, of whom 28 were Doctoral and 164 Master’s students.

Table 3. Total number of permanent staff with Doctoral and Master’s degrees NRF rated researchers

Figure 2. Number of CPUT NRF Rated Researchers: 2011–2023

The number of graduates for 2022 for the December (summer) graduation was 90 Master’s and 16 Doctoral students, with an additional 74 Master’s and 12 Doctorate degrees conferred during the autumn graduation in April, illustrating the Institution’s ongoing emphasis on research and postgraduate studies.

A total of 126 CPUT-funded bursaries, of which 51 were at the Doctoral level and 75 at the Master’s level, were awarded in 2022. This bursary aims to assist students who performed academically but needed help to secure a grant.

The total bursary pay-outs for 2022 across all faculties amounted to over R6.5m.

Postdoctoral fellows

Sixty-two postdoctoral fellows were registered at CPUT in 2022, increasing supervision capacity and research output.

1.4 Technology transfer and commercialisation

A number of ground-breaking initiatives were implemented in 2022 to drive the commercialisation agenda at CPUT. A particular highlight is the CPUT Venture Builder Collaboration. In this first of its kind initiative, Technological Higher Education Network South Africa (THENSA) and CPUT have agreed to collaborate in designing an adapted venture builder model for accelerating technology innovation and commercialisation through the creation of a tech ecosystem that includes top talent, leaders, investors, and Government, all banded together to create a stronger, more innovative, inclusive, and successful network. THENSA membership includes six South African universities of technology, three South African comprehensive universities, and one other university from Namibia.

The proposed adapted venture builder model will be designed using a participatory process, and aims to accelerate innovation through interventions tailored around a set of key drivers of spin-off success. The current phase, for which the Research and Innovation Systems for Africa (RISA) funds are required, is directed at developing the Venture Builder structure, and formalising partnerships. In effect, this phase is directed at designing, and thereby birthing, a microinnovation ecosystem.

The activities to be conducted as part of this collaboration, and the human and physical resources needed for their implementation, will be funded using a grant awarded to THENSA and CPUT by the RISA programme, funded by the UK Foreign, Commonwealth and Development Office (FCDO), which aims to strengthen research and innovation ecosystems in Africa. The RISA Fund is jointly funded by two separate FCDO programmes – SRIA for research ecosystems, and ATIP for innovation ecosystems, and this activity is financed by the government of the United Kingdom (His Majesty’s Government), and implemented by Chemonics International Inc.

1.5 Strategic initiatives and engagements

Several strategic research initiatives and capacity development workshops were hosted by RTIP in 2022:

Research Forum entails quarterly engagements and dialogues on strategic research initiatives. Research Chairs use this platform to share and exchange knowledge on research concepts and work carried out by fellow researchers. A total of four Research Forums were hosted.

Research Incoko is a platform for quarterly research conversations and engagements on a variety of researchrelated topics to develop CPUT’s research capacity from within, and allow research constructs and research-related issues to be addressed using a trans-disciplinary approach. A total of four Research Incoko were hosted, presented by senior researchers:

i) Prof MTE Kahn, Research Chair, Energy: “Towards planning and writing grant/funding proposals”;

ii) Dr Dirk J Bester, Research Coordinator, FHWS: “Preparing and responding to ethics review: Surmounting the final hurdle before data collection”;

iii) Prof Marilize Le Roes-Hill, Deputy-Director, Applied Microbial and Health Biotechnology Institute: “The contribution of Marine Biotechnology towards the SA Bioeconomy: The challenges experienced, lessons learnt, and future perspectives”; and

iv) Adjunct Professor James Garraway, Professional Education Research Institute: “Academic Development, Cultural-Historical Activity Theory and Change Laboratories”.

Research uptake workshops aim to develop and facilitate activities and appropriate systems to promote and support research uptake. The target audience is CPUT senior researchers, researchers, and emerging researchers.

A total of five research uptake workshops were hosted, which focused on: Dissemination of findings; Science communication; Stakeholder engagement; Stakeholder engagement between researchers and users; and Social influence, societal impact of research.

Local and national partnerships

New international partnerships (over and above the two above)

Erasmus + partnerships

1.5.2 Local, national, and international conferences, workshops, and seminars

• South African Swedish University Forum (SASUF), 6 June 2022: CPUT hosted the SASUF representative conference 2022. The conference took place simultaneously with the student conference in Uppsala, Sweden, attended by 13 institutions.

• Erasmus + Symposium for the EURO-ZA Capacity Building: Prof Judy Peter welcomed international and local participants to the project. Participants from Europe and three from South Africa collaborated on three main MET priority areas.

• Experiences with Maths Education in US and Africa. A cultural perspective, 9 June 2022: An inperson workshop was hosted by CPUT’s Centre for Community Engagement and Work Integrated Learning, Faculty of Education, and the Strategic Initiatives and Partnerships (SIP) Directorate at the Mowbray Campus. The workshop was conducted by Fulbright scholar, Prof Iman Chafik Chahine, PhD, Associate Professor of Mathematics Education at the College of Education, University of Massachusetts, Lowell, USA.

• VitaGlobal Erasmus + Project Week, 27 June –1 July 2022: The VitaGlobal Erasmus + Project was led by the Faculty of Applied Sciences, which hosted a hybrid week-long conference as part of the project obligations. The SIP Office presented on opportunities for Collaborative Online International Learning (COIL) on 27 June, as part of the Internationalisation of Curriculum (IoC) imperative of CPUT.

• The South African Swedish University Forum (SASUF) Information Session, 15 August 2022: The SASUF coordinating team from Uppsala University visited South African universities in June and July 2022 to discuss the next steps of the SASUF 2030 project. On 15 August 2022, a joint information session between universities in the Western Cape took place at the University of the Western Cape. This was a hybrid session, with a presentation of the project from Uppsala University as well.

• First Inclusive Technopreneurship Forum (ITF 2022), 16–17 August 2022: The Faculty of Business and Management Sciences hosted the first Inclusive Technopreneurship Forum (ITF) held as a hybrid event on the Granger Bay Campus. The event was conceptualised as part of the IAU (International Association of Universities) British Council project, of which CPUT was a recipient. The main theme of the workshop was, “Competing in the post pandemic era of globalisation: The missing 21st century skills”. It was attended by Prof Judy Peter and Dr Tasmeera Singh.

• Campus France Roadshow campaigns, 19–23 September 2022: The national office of Campus France spent a week at CPUT engaging with local postgraduate students about the opportunities and benefits of studying in France. The seminar was presented in person, and meetings were held one-onone with prospective students who were interested in the programme.

• SASUF Goes Digital, 19–23 September 2022: This event of workshops and presentation is part of the SASUF 2030 project. Researchers from CPUT and other universities in South Africa and Sweden presented along the themes of the Sustainable Development Goals, which is linked to the SASUF 2030 overall project theme.

• SARETEC/GEAPP/Eskom Grant Agreement signing ceremony, 22–23 September 2022: Prof Judy Peter was part of the CPUT delegation to the Eskom Komati Power Station in Mpumalanga for the signing ceremony of the Grant Agreement between CPUT through the South African Renewable Energy Technology Centre (SARETEC) and the Global Energy Alliance for People and Planet (GEAPP).

• Embassy of Finland Social Entrepreneurship, 27 September 2022: Prof Judy Peter attended the Social Entrepreneurship SA Innovation Summit 2022, hosted by the Embassy of Finland. The Embassy of Finland was also launching their newest English edition of the book, 100 Social Innovations from Finland, edited by Dr Ilkka Taipale.

• International Educators Association of South Africa (IEASA) Virtual Conference, 24–26 August 2022: Prof Judy Peter chaired a session entitled, “Building international collaboration that is resilient and sustainable – lessons learned from Swedish-South African collaboration (SASUF) during Covid-19”. Dr Tasmeera Singh chaired the session entitled, “Foregrounding a Historically Disadvantaged Institution as an International African University: A case of the University of Zululand”. Dr Singh also presented a paper entitled, “Using technology to create an enabling inclusive internationalisation agenda”. This session was meant to be shared with Dr L Schoelen and Ms Nkalitshana.

1.6 Policy development and review

A new Policy on Internationalisation was initiated in 2022, and is in the final stages of adoption to serve before Senate and Council in June 2023.

Figure 3. Summary of local, national, and international partnerships

Local/National African International

1.7 Inbound and outbound staff and student mobility 2022

Inbound staff 2022

Inbound exchange students 2022

2. Learning and teaching

Academic Year 2022 (AY 2022) started with a measure of hope and promise, with signs of the Covid-19 pandemic improving. This was marked by the Cabinet approved changes to the Adjusted Alert Level 1 Covid-19 regulations, accompanied by the easing of restrictions. At the start of AY 2022, faculties and centres within the Teaching and Learning portfolio outlined the readiness for AY 2022, guided by the Institutional Risk Adjusted Strategies for Teaching and Learning. In keeping with recommendations made by the Honourable Minister Blade Nzimande, first-year students were given priority to return to campus in order to enhance the first-time entering student university life experience, and chances of success. As Covid-19 restrictions eased toward a post-lockdown phase, faculties and centres developed clear approaches to learning, teaching, assessment and research to ensure successful delivery of the academic programme. Guided by an Implementation Plan AY 2022 and a post-lockdown guideline, faculties opted for a staggered

Outbound staff 2022

Outbound exchange students 2022

start to AY 2022. Returning students in many departments were given full use of the teaching laboratories, to advance through the practical classes in their respective curricula.

A blended model was adopted for senior students to foster engagement online and in-person. Subject guides were revised to accommodate various modes of engagement, as well as notional hours revised for closer alignment with expected activities and learning outcomes. Lessons learnt over the past two years and continued capacity development allowed faculties the flexibility to explore more learning and teaching pedagogies than was previously possible. The First-time Entry Enrolments (FTEN) status remained relatively stable between the third and the fourth term, with most faculties exceeding first-time enrolment of the planned 5%. All faculties remained committed to the objectives of the First Year Experience Programme, and actively involved in supporting students using retention officers, mentors, tutors and teaching assistants. Faculty enrolments are geared to increase in the coming year, with several additional programmes approved and fully accredited.

Teaching Excellence Awards

The DVC: Teaching and Learning, in an ongoing effort to celebrate learning and teaching at CPUT, conferred a total of 27 Teaching Excellence Awards on academic staff. This included one institutional award, eight faculty awards, and 16 departmental awards. The structure of the awards will be reviewed in 2023 to align to the National University Teaching Awards, which was released in January 2023.

Smart learning environment

Smart learning and teaching interventions continue to be rolled out at CPUT, with the establishment of the SMART learning environment initiative. In keeping with the values and principles of CPUT Vision 2030, a process of reviewing traditional learning and teaching spaces (with the aim of developing a SMART Environment) has begun. This process considers the discourse around smart learning and teaching spaces/classrooms, and includes the need for pedagogical transformation and reform; the role of the student; and teacher content delivery; as well as a focus on learning processes and approaches to enhance student success. CPUT is now at the phase of identifying potential smart learning spaces as shared resources between faculties. These spaces would require restructuring of layout and arrangement, in order to meet the needs of the various end users. Furthermore, consideration has been given to the learning and teaching philosophies of CPUT’s Vision 2030, including the principles of human-centricity and collaboration, and enriching the learning and teaching experience for staff, students and all other stakeholders engaged in the academic project.

Presidential Employment Stimulus Programme

In an ongoing commitment toward economic empowerment, CPUT participated in the Presidential Employment Stimulus Programme, which aims to alleviate youth unemployment. This year, CPUT participated in the Presidential Youth Employment Programme. The programme created an opportunity for students from the Department of Mathematics and Physics to work as data analytics interns engaged with critical data related to student success. The interns actively participated in data analytics projects across faculties, in a bid to learn more about students through predictive analytics and machine learning.

University Capacity Development Programme (UCDP)

UCDP Budget Reprioritisation: In November 2022, CPUT received the updated DHET Ministerial Statement, indicating the revised university funding allocations. The total institutional allocation for the 2022 fiscal year was R31,188,000, however, the budget was reduced by R7,891,000 with a new allocation of R23,297,000. The necessary adjustments have been made to the budget, as an addendum to the UCDP plans to DHET.

New Generation of Academics Programme (nGAP)

An addendum to the December 2021 Ministerial Statement on University Funding 2022/23 reduced the nGAP funds for the financial year (2022/23) by 20,55%. The reprioritisation of

funds was communicated to CPUT on 12 October 2022. A call for Phase 8 submissions was sent out on 15 December 2022. In addition, CPUT submitted applications for Phase 9 of the nGAP programme. The University is therefore invited to submit applications for posts to be supported during this phase. On 27–28 October 2022, DHET presented an induction workshop for newly appointed Phase 7 nGAP lecturers and their mentors, as well as lecturers who are part of the programme but who had not had an opportunity to attend any of the previous induction workshops (Phases 5 and 6). The purpose of the workshop was to provide new lecturers and their mentors, in addition to nGAP managers, the necessary information on the objectives and expectations of nGAP, as well as for participants to share their different experiences in relation to the programme’s implementation.

Nurturing Emerging Scholars Programme (NESP)

Funding for Phase 2 has been transferred to CPUT. Phase 2 applications closed on 5 August 2022. Rhodes (national coordinators) will send the final list of candidates. The Phase 1 lecturers have exited the programme. Therefore, the University now takes full responsibility for the salaries of these lecturers. DHET has advised that those who have not fulfilled all the NESP requirements are expected to submit a report detailing their experience, and offer recommendations.

The Unfurling Post-School Education and Training (UPSET) Project

The UPSET Project was launched on 26 July 2022. CPUT is a partner university is this initiative funded by DHET, led by Durban University of Technology (DUT), and supported by SAQA. The aim of the project is to strengthen articulation/ learning-and-work pathways in South African PSET – through nine provincial/regional articulation hubs. The Western Cape USPET Hub launched on 9 November 2022. A number of representatives from various sectors attended, including: TVET principals from False Bay College and the College of Cape Town, SAQA, CHE and USAf representatives; and messages of support were received from the University of the Western Cape and Stellenbosch University.

DHET conducted monitoring site visits to discuss the University Capacity Development Programme (UCDP), and the progress made in the implementation of the plans. The main purpose of the visit was to assess progress on the implementation of the UCDP project activities and utilisation of allocated funds for the programme, to identify and address implementation challenges, and to provide clarity on any other UCDP issues that the University would like to address. DHET approved the following: the extension of the use of the UCDG budget allocation, and extension of the implementation of the 2022 institutional UCDP plans by three months, from end of December 2022 to 31 March 2023. Currently, preparations for the new cycle proposal development will take place in preparation of the new DHET UCDP cycle call for 2024–2026.

Vice-Chancellor Prof NC Nhlapo

Community Engagement, ServiceLearning and Civic Engagement Service Report

1. Introduction

CPUT drives community engagement (CE) through the Service-Learning (SL) and Civic Engagement (CE) Units, which reside under the Centre for Community Engagement and Work Integrated Learning. ServiceLearning has become recognised as a useful pedagogical tool for authentic learning experiences. A natural alignment exists between the achievement of graduate attributes and SL. Staff are encouraged to be mindful of the incorporation of these attributes when designing their SL programmes.

In SLCE, students are provided with authentic learning experiences through community-based projects and programmes. Staff and students are encouraged to work in transdisciplinary ways so that knowledge is co-created across disciplinary boundaries and across the sectors of Government, community, and industry partners. SL embeds CE within the curriculum, but both SL and CE are ideal pedagogical tools to achieve the attainment of graduate attributes that form part of CPUT’s Vision 2030. Many of the projects are aligned to the concept of ‘Smart Engagement’, and contribute towards CPUT’s vision to be an engaged university. The transdisciplinary approach to disciplinary integration dissolves boundaries between conventional disciplines. It organises learning and teaching around the construction of meaning in the context of real-world problems or themes. This approach relies on team members sharing roles, regardless of their disciplines. The primary purpose of integration is to collaborate and integrate team members’ expertise, and so offer a more efficient provision of service.

2. The scholarship of engagement and engaged scholarship

The SLCE Units strive to grow the scholarship of engagement, which has multiple benefits for all university participants and partners. Through the lens of scholarship, SLCE promotes the conceptual framework of Boyer’s scholarship of engagement (Boyer, 1990). To grow the scholarship of engagement, the SLCE Units provide support to academic departments and faculties by initiating, supporting, and contributing to various research initiatives. By approaching CE through a research and scholarly lens, staff, students, Government, and communities are encouraged to understand the benefits of integrating CE with the other two pillars of higher education, which is through learning and teaching, and research. SLCE conveners and students are encouraged to reflect on their practice so that learning and impact can be realised. Therefore, the notion of the self-reflective practitioner forms part of the SLCE project cycle.

In 2022, the SLCE Units contributed to the national agenda on CE by participating in discussions that furthered the development of the DSI/ NRF/ SAASTA Engaged Research Framework, published in July/August 2022. At the request of SAASTA, the SLCE Units put out an institutional call for engaged research case studies. Two engaged research projects were selected by SAASTA, and will be published shortly. The SLCE Units supported the researchers by attending consultations and interviews between the selected researchers and SAASTA in preparation for the publication.

CAPE-Vocational Education and Training (VET) Research Project

Capacity Building for VET in South Africa is a bi-national research project focused on the professionalisation of Technical Vocational Education and Training (TVET) lecturers in South Africa. Its goal is to develop scientific, participative, and authentic recommendations for the design of academic professionalisation for TVET lecturers. The institutions involved in this project are: CPUT (represented by the SLCE Unit); Institute of Vocational Education, Work and Technology, Europa University Flensburg (EUF) in Germany; Centre for Business and Technology in Africa, Flensburg University of Applied Sciences; and Hochschule Wismar University of Applied Sciences Technology, Business and Design Wismar, Germany.

The SLCE Units brought together seasoned academics and researchers in the field of TVET research on 17 May 2022 to participate in a CAPE-VET Bilateral Seminar/Webinar: Dialogical Session on research findings in the TVET-Sector of the Western Cape province. Participants were: Department of Teacher Professional Development; Faculty of Education; Faculty of Engineering and the Built Environment; Centre for Innovative Educational Technology; Europa-Universität Flensburg (EUF); Institute of Vocational Education, Work and Technology (short: biat); Hochschule Flensburg (HSFL); Centre for Business and Technology in Africa; Hochschule Wismar (HSWI); Technology, Business and Design, Professional Education Research Institute (PERI); Department of Higher Education and Training (DHET), Pretoria; TVET Regional Office, Western Cape; and TVET-Colleges (West Coast College, False Bay TVET College, Boland College, Northlink College and South Cape TVET College). All universities presented their research findings. Provision was made for interactive feedback and dialogue. The session was hybrid, i.e., face-to-face and online, which maximised participation.

In October 2022, the Cape VET report was published as: Professionalisation from Individual Perspectives of TVET Practitioners in South Africa – Challenges and Demands Joint discussion paper and final report on the CAPE-VET research results 2022: Hochschule Wismar; ISBN: 9783947929184; Authors: Jacqueline Scheepers, Jonas Gebhardt, Martin Kuehn, Dr Jelena Zascerinska, Prof Dr Axel Grimm and Prof Dr Kay Pfaffenberger; available online at: https://www.uniflensburg.de/fileadmin/content/institute/biat/dokumente/ projekte/cape-vet/cape-vet-joint-publication-2022.pdf

On 9 November 2022, a small delegation from the CAPEVET research project visited CPUT, including Prof Dr Kay Pfaffenberger and Mr Martin Kühn from Hochschule Flensburg, University of Applied Sciences. They participated in a meeting arranged by the SLCE Units with the Faculty of Education to share the CAPE-VET project report and research findings with staff members who are involved in the TVET programme offerings. This will be an ongoing partnership in 2023.

WIL Africa Conference: SLCE attended the conference from 27–30 October 2022, as organised by the Southern African Society for Cooperative Education (SASCE). The Units led two presentations and conducted one workshop;

• Workshop title: “Building student leadership in interdisciplinary contexts for engaged citizenship and the world of work”;

• Presentation title: “Exploring alternative approaches to traditional WIL industry placement through hybrid modalities of WIL in Engineering and the Built Environment in a university of technology context”; and

• Presentation title: “Work integrated learning in the TVET sector: Perspectives of college lecturers and students”.

CE research highlights for CPUT: In 2022, three staff members made CPUT proud through their contribution to a CE book titled: Community Engagement Research in South Africa – Methods, Theories, Histories and Practice, which was launched by Van Schaik Publishers at North West University. One of the three editors was Prof Hanlie Dippenaar, an HOD in the Faculty of Education, who also authored a chapter, “Collaboration embedded in service-learning through the lenses of a network of activity systems and a Change laboratory”. Ms Jacqueline Scheepers, Manager, SLCE Units contributed, “Thoughts from Academia: Community Engagement in Higher Education and Training in the Future: from Theory to Practice” (pages 326–327); and Dr Rolene Liebenberg, an experienced CE pioneer, authored a chapter, “The transformative pedagogical potential of preservice teacher professional learning communities embedded in a mathematics service-learning course”.

The SLCE Units cultivate mutually beneficial research collaborations through transdisciplinary projects and programmes. These partnerships stretch across local, regional, national, and international boundaries. By integrating CE with teaching and learning and research, a more holistic approach to knowledge generation can be pursued.

3. Quintuple helix partnerships and projects for CE

Through SLCE programmes, academic faculty champions and support units engage in activities involving diverse partners. These relationships may be formal or informal, depending on the nature of the project. The SLCE provides support to staff who aim to formalise their project partnerships.

STEM 2nd Chance Matric Rewrite programme: In April 2022, the programme again enrolled over 150 learners. The programme assists learners to improve their matric marks to enable them to apply for study programmes in the fields of their choice. The project is managed and coordinated as a collaborative effort between the Service-Learning and Civic Engagement Unit, as it incorporates both forms of community engagement. Tuition is offered in Mathematics, Mathematical Literacy, Physical Sciences, Life Sciences, Accountancy, and English First Additional Language. These subjects were purposefully selected, as they contribute to the uptake of students in scarce skills related study programmes and careers. Language, being a gateway to understanding

complex terminology in the scientific and mathematical disciplines, and in comprehension when reading in examinations and tests, was also included. Tutors from the Faculty of Applied Sciences participated in the project, and Faculty of Education students will follow in 2023. The SLCE Unit received a concession to be an examination centre for the matric examination. The programme culminated in the successful hosting of the National Senior Certificate examinations at a school in Belhar.

Student Leadership Academy: A DHET-funded UCDG Student Leadership Academy: Leadership for Life, was offered by the SLCE Units from 24 June–8 July 2022. The academy took the form of leadership development workshops with students from 11 July–26 September 2022, that addressed issues like ethics and morals, social justice, CE partnership building, transformation, heritage, etc. The students subsequently developed and executed 12 community projects under six project themes aligned to the Sustainable Development Goals (SDGs). Partnerships with community organisations and government departments were strengthened as a result. The academy prepares students, who are drawn from diverse academic disciplines, for CE projects. In the interest of inclusivity, the academy embraces all students, irrespective of their academic level and discipline, allowing students to learn across cultures, disciplines, and knowledge levels. Students range from first-year level to doctoral level. Many graduates from the academy and/or University still participate in CE projects, while acting as mentors for the new leaders. The main purpose of the academy is to develop a student capacity building programme to further the leadership skills of students, specifically in preparation for CE projects that are integrated into the curriculum, and credit bearing, or linked to the university Graduate Attributes. This programme further seeks to promote a positive youth development approach that focuses on “making young individuals stronger and more resourceful, as reflected in their behaviour and mindset” (UN, 2016: p18). The programme includes institutional reviews, benchmarking, development of a student leadership programme, community engagement projects, including a student-led youth conference for students to engage across disciplines and universities. The SLCE Units hosted a Student Leadership Conference on 1 December 2022 to provide students with an interdisciplinary platform to share and reflect on their community engagement projects.

National Science Week: The SLCE Units were awarded a grant by DSI/ NRF/ SAASTA to implement National Science Week from 1–6 August 2022, with activities such as STEM workshops and career support at high schools in Beaufort West and Laingsburg, a STEM Educator’s colloquium, and STEM workshops and tours for matric learners.

Heritage partnership: One of the strategic project partnerships is a collaboration between CPUT and Robben Island Museum (RIM) under the umbrella partnership of the Mandela Legacy Programme, which includes the Department of Human Settlements, Department of Water and Sanitation, the Department of Correctional Services, Castle of Good Hope, and the Walter Sisulu University. In 2022, one of the student leadership projects was implemented at RIM.

Careers and educational development school projects: These are collaborations with project partners like the Western Cape Education Department (WCED), Department of Basic

Education, Western Cape Government, Robben Island Museum, and various high schools. The SLCE Unit works closely with the Marketing and Communication Department (MCD) to encourage learners to pursue studies in higher education. From 5–6 May 2022, WCED invited the SLCE Units to participate in a careers’ exhibition with learners from Prince Albert and Laingsburg. With the support of MCD, the unit selected student leaders (one per faculty) to participate in the exhibition and provide guidance to learners on applying to the University, for bursaries, etc.

Internationalisation at home: The SLCE Units continue to build on cementing international university partners for Service-Learning and Civic Engagement through hosting international students from the HAN University of Applied Sciences, Netherlands, who implement community projects in Grabouw and Genadendal in the Theewaterskloof municipality. CPUT students joined the HAN students’ induction programme in Grabouw, where the focus was on intercultural engagement and exchange. Students from both universities exchanged knowledge of their countries and respective cultures through workshops and activities.

Social investment project: This project is an ongoing collaboration between the Business Unit, Student Housing, and the Civic Engagement Unit. Students volunteer on request to assist at the respective collection points. The project is coordinated by the CE Unit, with student volunteers from across the Institution. Batch 4 of new replacement beds and mattresses was completed on 14 December 2022 on Bellville and Wellington campuses, covering five buildings. The Business Finance Specialist, Mr Phillip Chibvuri expressed gratitude to the Residence Coordinators for working in sync with supplier(s), and to the SLCE Units who were instrumental in the redistribution of the used beds and mattresses, as per institutional procedure. The beds and mattresses are allocated to community organisations and municipalities, who in turn distribute these to flood and fire victims in various urban and rural communities in the Western Cape. This project is at 86% completion of the replacement project of the entire stock of CPUT owned beds. Only four buildings remain to be serviced as part of Phase 5, and then the project will be 100% complete. Of the 5,850 owned beds, 5,078 have been replaced in the residences. The project will resume in March 2023, with the first site being the Best Westin Residence.

Conclusion

SLCE subscribes to the concept of engaged scholarship, and to the principles of ethical leadership and ubuntu. Amongst its most valuable assets are the dedicated students, staff and external partners. Credit should be given to the work of the committed multi-stakeholder project teams, for whom CE is an essential element of active citizenship and social justice.

Prof L Reddy Director: Community Engagement and Work Integrated Learning

14 Transformation Report

Transformation is one of the cross-cutting pillars of CPUT’s Vision 2030 Strategy. It is anchored in the two strategic dimensions of the Vision 2030 Strategy, namely oneness and smartness. “Oneness” focuses on CPUT’s human-centricity (ubuntu), and embraces the values of unity (ubunye), diversity (ukungafani), inclusivity, and social change. On the other hand, “smartness” focuses on technological developments and innovations, as considered by the current and future industrial revolutions.

At CPUT, transformation is aimed at building a more transformed, inclusive, and diverse university, to institutionalise the “oneness” and “smartness” dimensions of Vision 2030. It is anchored in staff administration, student life and experiences, teaching and learning, curriculum, research and innovations, and community engagement.

1. Transformation Governance Structures

The transformation governance structures are in accordance with the White Paper 3 on Transformation in Higher Education (DHET: 1997/2016); Employment Equity Act, (Act No. 55 of 1998); Policy for the Realisation of Social Inclusion in Post School and Training (P-SET) (2016); Policy Framework on Disability in P-SET (2018); Policy Framework for addressing Gender-Based Violence (GBV) in P-SET (2020); Language Policy Framework for Public Higher Education (2021); as well as regional, national, continental and global contexts.

The following management committees play critical roles in supporting transformation:

1.1 Institutional Gender-based Violence (IGBV) Committee

The IGBV Committee is chaired by Prof Chris Nhlapo (ViceChancellor), and is composed of the Executive Management (EM) as leaders of the different GBV Pillars; as well as Deans, Executives and Student Representative Council (SRC) leadership as technical leaders of the various GBV Pillars. It is a Management Committee, and sits on a quarterly basis to provide oversight, and report on overall GBV matters. CPUT has a zero-tolerance position to GBV.

1.2 Institutional Transformation Forum (ITF)

The ITF is a Management Committee, and is chaired by Prof Paul Green, Dean of the Faculty of Business and Management Sciences, and a member of the Management Committee (ManCom). It is mandated to coordinate transformation initiatives across the Institution, and reports to Management on a quarterly basis. The ITF is comprised of representatives from all components of the University, namely faculties, departments, units, centres, divisions, and structures like the organised labour, SRC and governance structures. The ITF provides spaces for learning, sharing of lessons, practices, and research agendas. It meets quarterly to coordinate and discuss transformation reports. At faculty level, transformation is coordinated by the Deans through the Faculty Transformation Forum (FTF) that reports to the Faculty Board Meetings on a quarterly basis. The FTF coordinates reports across departments in faculties on a quarterly basis. Transformation is also a standing agenda item in Faculty Board Meetings. All reports are signed off by the Deans of respective faculties.

1.3 University Employment Equity Forum (UEEF)

The UEEF is chaired by Prof Paul Green. It is comprised of representatives from all components of the University, as outlined under the ITF section above. The UEEF provides spaces for learning, and sharing of lessons and practices. It meets quarterly to monitor the implementation of employment equity across the University by reviewing faculty and departmental employment equity reports. The UEEF is also responsible for overseeing the development of all respective Employment Equity Plans, as well as preparing the annual Department of Employment and Labour Employment Equity Act reports. At faculty and departmental level, employment equity is coordinated by the DVCs, Deans or Senior Directors through the Faculty/Departmental Transformation Forums that report to the Faculty Board or Department Meetings on a quarterly basis. The Faculty/Departmental Transformation Forums coordinate reports across the faculty or department on a quarterly basis. Transformation is also a standing agenda item in Faculty Board Meetings.

2. Transformation reporting approach across the University

When reporting on transformation, faculties, departments, units, divisions, centres, and institutional structures integrate their core mandates into the seven Vision 2030 focus areas, namely:

Focus Area 1: A Smart ITC environment and ITC workforce;

Focus Area 2: Smart teaching and learning and smart learning environments;

Focus Area 3: Smart RTIP that is relevant and excellent in its knowledge production;

Focus Area 4: Smart human capital and talent;

Focus Area 5: Smart internationalisation;

Focus Area 6: Smart engagement and strong links with quintuple helix partners; and

Focus Area 7: Smart student engagement and learning experiences.

3. Transformation key pillars

The key pillars of transformation include the following:

3.1 Students and staff access, support and success that embraces diversity, equity, inclusivity and belonging;

3.2 Institutional responses to all forms of discrimination, abuse, harassment, and gender-based violence;

3.3 Diverse and inclusive places and spaces that enhance belonging (visual redress or inclusive learning spaces);

3.4 Transformation or renewal of the scholarship of teaching, curriculum, research, innovation, and community engagement (inclusive of learning and teaching environment);

3.5 Africanisation or owning our African identity, and decolonisation agenda; and

3.6 Responsiveness to the societal needs at local, national, regional, and global level (Cape Vision 2040; NDP; Agenda 2063; and Agenda 2030).

4. Summary of key transformation achievements

The key achievements in 2022 can be summarised as follows:

4.1 The Vice-Chancellor’s Think-Tank on Gender Equality and Women Empowerment –8 March 2022, International Women’s Day

In responding to gender transformation in higher education and the achievement of Sustainable Development Goal 5 (SDG 5) (Agenda 2030) on Gender Equality and Women Empowerment (GEWE), the Vice-Chancellor (VC) celebrated International Women’s Day (IWD) under the theme #BreaktheBias! The celebration called on the CPUT community to imagine a gender equal campus, free of bias, stereotypes, and discrimination; as well as a campus that is diverse, equitable and inclusive.

The IWD celebration also marked the inauguration of the Think-Tank on Gender Equality and Women Empowerment to enhance gender transformation at CPUT, in collaboration with UN Women, Snakenation and Ilitha Labantu. CPUT is the first university in South Africa to pilot the Think-Tank on GEWE as a tool for accelerating the achievement of gender transformation and SDG 5 in the higher education landscape.

4.2 Decolonisation as a transformation tool –19 April 2022

A Decoloniality Seminar was organised by the Cape Higher Education Consortium (CHE), and was attended by the four universities in the Western Cape. At this seminar, the Director for the Centre for Diversity, Inclusivity and Social Change (CDISC), Ms Nonkosi Tyolwana, presented a paper on “Demasculinising and de-gendering our inherited intellectual spaces through African feminism pedagogy”.

4.3 GBV Crucial Conversation: Masculinity and Manhood in eradicating GBV – 5 May 2022

The Conversation was aimed at engaging CPUT men as partners in the University’s efforts to ensure zero-tolerance to GBV, a pandemic that knows no boundaries, and that requires every member of our community to play a positive role in combating this scourge. CPUT will roll out a series of Conversations targeting different role players, such as women, men and LGBTQIA+ communities, to discuss, learn, share lessons, practices, and research agendas on GBV. The programme is ongoing, and has attracted much interest.

Key partners included Research Technology, Innovation and Partnerships (RTIP); the Fundani Centre for Higher Education Development; Takuwani Rime; and the Division of Student Affairs (DSA).

4.4 HeForShe Ambassadors Programme 2022 –14 May 2022

In responding to the Policy Framework on the Realisation of Social Inclusion in Higher Education (2016/2017) and the achievement of SDG 5 on GEWE, CPUT, under the leadership of the Vice-Chancellor, responded to the national call for the involvement of men and boys in the fight against gender inequality and GBV. This call was also within the context that gender equality and women empowerment is: “Not a women’s issue, it is everybody’s issue and a human rights issue”. (Gillard, 2016)

The HeForShe Programme targets men, i.e., male students and male staff members. The Vice-Chancellor recognised the need for ambassadors who will be directly involved in GBV campaigns and interventions across all CPUT campuses in the quest to eradicate GBV and begin the conversations in educating CPUT men, to be able to have a gender-equal university, free of bias, stereotypes, and discrimination.

4.5 Africa Day public lecture – 26 May 2022

CPUT positions itself as an African university with a vision to be Africa’s leading University of Technology, in line with the African Union’s Agenda 2063. In celebrating Africa Day, a public lecture was delivered by Prof Simphiwe Sesanti of the Faculty of Education at the University of the Western Cape (UWC).

The main purpose of the lecture was:

• To raise the significance of Africanising our universities within the Vision 2030 agenda;

• To institutionalise Agenda 2063 in institutional culture, staff, and students, teaching and learning, curriculum, research and innovations, and community engagement; and

• To re-Africanise our universities to be globally renowned for cutting edge innovation, with graduates that shape a better world for humanity.

4.6 Engagement with young women students on Youth Day – 16 June 2022

In responding to Focus Area 7 on student engagement, and the achievement of SDG 5 on GEWE, the VC held a conversation with young women at Hanover Residences to:

• Educate them about June 16 and the significance thereof;

• Encourage and empower them to be resilient and get involved in empowerment programmes; and

• Encourage the mentoring and coaching of young females.

4.7 International Mandela Day – 18 July 2022

In collaboration with Executive Management (EM) members, all directorates under EM, Division of Student Affairs (DSA), and the Green Campus Initiative (GCI) team visited Ilitha Labantu to spend 67 minutes with the elderly. As part of community engagement with communities surrounding CPUT, the VC handed over a cheque towards the projects Ilitha Labantu run within the province. The GCI team also helped plant plants at one of the properties of Ilitha Labantu as part of their 67 minutes.

4.8 GBV and masculinity webinar – 1 August 2022

In line with the Policy Framework on addressing GBV in higher education (2020), and SDG 5 on GEWE, the VC, RTIP, Fundani, Takuwani Rime, and DSA, in partnership with CDISC, hosted a GBV webinar themed: “Rooting out toxic masculinities and gender-based violence on and off campus”. The objective of the webinar was to sustain a gender sensitive student-centred environment, where the human rights of women, men, and gender diverse persons are protected so that they can realise their potential contribution in a community of scholars characterised by a culture of respect and ubuntu. The anticipated outcome of such engagements is a campus free from all forms of abuse, discrimination, and GBV.

4.9 GBV and safe and inclusive language spaces – 5 August 2022

In a bid to create awareness around GBV and safe and inclusive spaces, the Faculty of Education held a Women’s Day symposium under the theme: “GBV: Creating safe spaces: Gender identity and sensitivity in language use”. The Director of CDISC presented a paper entitled, “Tackling GBV through mainstreaming safe and inclusive language spaces”.

4.10 Gender mainstreaming in the workplace –26 August 2022

In responding to gender transformation in higher education, the gender mainstreaming webinar demonstrated how gendered perspectives, diversity, and inclusivity are central to all activities, staff, students, teaching and learning, curriculum, research, and community engagement. The webinar covered issues such as the identification of gaps in gender equality using gender analysis and sex-disaggregated data, as well as putting adequate resources and the necessary expertise

into place, amongst others. The need for developing strategies and programmes to close the existing gap, and accountability for results were highlighted.

4.11 Diversity and Inclusivity Survey Roll Out Plan

Following a Diversity and Inclusivity Survey in 2021, the Diversity and Inclusivity Survey Roll Out Plan was developed, and is implemented as an ongoing activity across the University.

4.12 EmpowerHerSA-CPUT – 31 August 2022

EmpowerHerSA-CPUT was launched in partnership with DSA. CPUT is the first university in South Africa to sign as part of EmpowerHer International, a mentoring programme aimed at empowering undergraduate young women until they graduate. This initiative is designed to fill the identified professional mentoring gap for the support of female undergraduate students across the African continent. Globally, most opportunities are targeted toward postgraduate students and early career women. More than 200 women have joined across campuses, and negotiations are underway to join the first CPUT chapter of the Student Women Economic Empowerment Programme (SWEEP) to ensure that these young women become technopreneurs. Many of the participants now have curriculum vitaes, are active and visible on LinkedIn, engaging with other professionals, and striving to acquire more skills to reach their full potential.

4.13 Embracing the “Oneness” dimension of Vision 2030 and values of ‘ubunye’, ‘ ubuntu’ and ‘ukungafani’ through diversity, inclusivity and belonging

4.13.1 Heritage Day – 24 September 2022

A host of CPUT partners celebrated Heritage Day with an event at the Bellville Campus Pool House. Students from different cultures, countries and religions gathered. Several activities were showcased, inter alia, traditional attire, dancing, African cuisine, language, indigenous games, and music. This programme promoted social cohesion, and contributed tremendously to the CPUT values of ubuntu, ubunye, nokungafani, and the “Oneness” dimension.

4.13.2 Association of International Students Cape Peninsula Tour – 22 October 2022

The Association of International Students (AIS), in partnership with DSA, CDISC, as well as the DVC: RTIP, hosted a Cape Peninsula Bus Tour, targeting CPUT international students and local students, with a focus on Mental Health Awareness. Sixty-five students participated. The purpose of the Tour was to foster social cohesion and a sense of belonging and oneness.

4.14 Partnership on the annual conference of Isisele Senyathi Hub for African Women’s History

This national conference was aimed at restoring women’s memories and discovering the hidden histories and untold

stories of African women. Through multimedia modalities, it brought together civil society organisations, veterans, women activist scholars, researchers, experts, and designers to reflect on women, heritage and historiography, and future steps needed to advance research on women, and to make a concerted effort to bridge the gender gap in the heritage and Indigenous Knowledge Systems (IKS) field. The voices of indigenous women were recognised, and present significant limitations identified, with a view of exploring current and future directions.

4.15 University Capacity Development Grant (UCDG) for Diversity and Inclusivity Transformative Leadership Training for Mentors and Retention Officers

The Centre, in collaboration with Fundani, conducted monthly training for Mentors and Retention Officers on diversity and inclusivity, as well as GBV, cultivating them to be agents of change.

Chairperson of Council

Dr LF Platzky

Prof NC Nhlapo

Vice-Chancellor

Annual Financial Review

The Institution’s financial reporting and preparation of financial statements is done in accordance with International Financial Reporting Standards (IFRS), as well as the Department of Higher Education and Training (DHET) reporting requirements for Higher Education Institutions.

The core income stream of the Institution, tuition, and residence fees, has continued to increase in 2022, as a result of:

• An increase of 17% applied to gross tuition fees, due to the mix of programmes, and 2022 residence capacity increase accounts for the percentage increase.

• A decrease in the subsidy factor applied by DHET, and under-enrolment penalty, resulting in a decrease of 9%.

The level of student debt for unfunded students continues to grow. The pattern of payments from unfunded students has not improved in 2022, but the growth in the balance has slowed slightly. The category driving the growth is mainly the missing middle, and solutions have to date not been forthcoming. Multiple options are being considered to address the student debt, but with the current state of the economy, a quick solution is not possible. The debt settlement offer had limited success, and this is seen as a long-term game. It has been extended for a further year. This has resulted in an increase in the provision for bad debts of R124m, based on the three-year cycle.

The Institution continues to benefit from the regular payment of NSFAS-funded students, and this has resulted in the carry-over of a small debt for this category of students. From a cashflow perspective, this has ensured the financial sustainability of the Institution.

Backlog maintenance has continued to be addressed as a priority, and has seen many projects being undertaken across all the campuses. This was achieved despite the reduction in the subsidy, and the ceasing of the regular Infrastructure and Efficiency Grant.

The leased residential offering has been maintained in 2022, and a number of existing leases are due for renewal in 2023. Additional beds have been made available with the accrediting of private accommodation. This has been done to address the risk posed by students not returning to residence post the pandemic.

Development and funding options are under consideration for the development of owned residences in Bellville, Mowbray, and Cape Town. This will involve both DHET and the Development Bank of South Africa.

Management continues to set budget directives annually for the following budget year, which are based on achieving Vision 2030, priority projects, and the CPUT Strategy. It has thus been possible to achieve our plans, due to the improved certainty of the Institution’s cash flow, despite the challenges of reduced funding resulting from the economic impact faced by the country as a whole, and the penalties arising from under-enrolment in prior years.

Key highlights

• The investments held by the University have performed well in 2022, and this resulted in the growth from R1,667bn to R1,718bn.

• The work of the Investment Sub-Committee has continued to be very effective, which has resulted in the desired investment outcomes being achieved.

• Staffing appointments and the renewal of staff contracts are still posing a challenge. Human Capital will have to monitor this closely, as a rebalance of the staff numbers between academic and support staff is long overdue.

• All contractual expenditure was met for the year.

• The cash flow management processes followed by the University have ensured that CPUT remains financially stable, and that there was no need to disinvest reserves to support the ongoing operations.

• Adequate funding is once again available for the first three months of 2023, until the first subsidy payment is made.

The Institution’s Management wishes to thank Council’s Finance, and Audit and Risk Oversight Committees for their continued guidance and commitment in steering the Institution. Their contribution is considerable, and it is great to have their inputs.

A special word of thanks is also extended to the staff of the Finance Department for their selfless efforts, and continued commitment in serving CPUT.

A selected list of financial ratios and extracts from the financials for the past years follows below:

Executive Director: Finance Mr PC Du Plessis

Deputy Chairperson of Council Mr D Gumbi

Financial Statements

FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of Responsibility for the Financial Statements

The Council is accountable for the integrity and fair presentation of the annual financial statements of the Cape Peninsula University of Technology.

The annual financial statements, presented on pages 92 to 130 of this Annual Report, have been prepared in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Minister of Higher Education and Training, as prescribed by the Higher Education Act, 1997 (Act No.101 of 1997, as amended), and include amounts based on judgments and estimates made by Management. The Council is also responsible for the University’s system of internal financial control. These are designed to provide reasonable, but not absolute, assurance as to the reliability of the annual financial statements. The Council also prepared other information as required to be included in this Annual Report, and is responsible for both its accuracy and consistency with the financial statements.

The “going concern” basis has been adopted in preparing the financial statements. Nothing has come to the attention of Council to indicate that any material breakdown in the functioning of the system, procedures and controls has occurred during the year under review. The Council also has no reason to believe that the Cape Peninsula University of Technology is not a “going concern” in the foreseeable future, based on forecasts and available cash resources. The viability of the Cape Peninsula University of Technology is supported by the content of the financial statements.

The financial statements have been audited by the independent accounting firm, Ernst & Young Inc., which was given unrestricted access to all financial records and related data, including minutes of meetings of the Council and all its committees. The Council believes that all representations made to the independent auditors during their audit were valid and appropriate.

Approval of the Financial Statements

The annual financial statements on pages 92 to 130 were approved by the Council of the Cape Peninsula University of Technology on 24 June 2023, and are signed on its behalf by:

Chairperson of Council

Dr LF Platzky

Vice-Chancellor

Prof NC Nhlapo

Executive Director: Finance

Mr PC Du Plessis

INDEPENDENT AUDITOR’S REPORT TO THE MINISTER OF HIGHER EDUCATION, SCIENCE AND INNOVATION AND THE COUNCIL OF THE CAPE PENINSULA UNIVERSITY OF TECHNOLOGY

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion

We have audited the financial statements of the Cape Peninsula University of Technology (the University) set out on pages 92 to 130, which comprise the statement of financial position as at 31 December 2022 and the statement of comprehensive income, statement of changes in funds and statement of cash flows for the year then ended as well as the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements present fairly, in all material respects, the financial position of the University as at 31 December 2022, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Higher Education Act of South Africa, 1997 (Act no. 101 of 1997) (HEA).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.

We are independent of the University in accordance with the Independent Regulatory Board for Auditors’ Code of Professional Conduct of Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards).

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Council for the financial statements

The Council is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and the requirements of the HEA and for such internal control as the Council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Council is responsible for assessing the University’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the Council either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is included in the annexure to the auditor’s report. This description, which is located at page 91, forms part of our auditor’s report.

REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT

Introduction and scope

In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof we have a responsibility to report material findings on the reported performance information against predetermined objectives for selected objectives presented in the annual performance report. We performed procedures to identify findings but not to gather evidence to express assurance. Accordingly, we do not express an opinion or conclusion on these matters.

Our procedures address the usefulness and reliability of the reported performance information, which must be based on the University’s approved performance planning documents of the University. We have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. Our procedures did not examine whether the actions taken by the University enabled service delivery. Our procedures did not extend to any disclosures or assertions relating to the extent of achievements in the current year or planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, our findings do not extend to these matters.

We evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected objectives presented in the annual performance report of the University for the year ended 31 December 2022:

Objectives

Becoming the leading UoT in smart teaching and learning and being on the forefront of creating smart learning environments that will provide excellent and relevant content and learning experiences for all CPUT students

To develop a unique CPUT multi/global cultural community by building capacity and awareness in teaching and learning, research, innovation, and engagements, that will ensure students and staff can act as global scholars, employees and employers

18-19

24-25

26 - 29

We performed procedures to determine whether the reported performance information was consistent with the approved performance planning documents. We performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

We did not raise any material findings on the usefulness and reliability of the reported performance information for the selected objectives.

Other matter

We draw attention to the matter below.

Achievement of planned targets

Refer to the annual report on pages 30 to 35 for information on the achievement of the planned targets for the year.

REPORT ON AUDIT OF COMPLIANCE WITH LEGISLATION

Introduction and scope

In accordance with the PAA and the general notice issued in terms thereof we have a responsibility to report material findings on the compliance of the University with specific matters in key legislation. We performed procedures to identify findings but not to gather evidence to express assurance. Accordingly, we do not express an opinion or conclusion on these matters.

We did not identify any material findings on compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.

OTHER INFORMATION

The Council is responsible for the other information. The other information comprises the information included in the 136page document titled “Cape Peninsula University of Technology Annual Report 2022”. The other information does not include the financial statements, the auditor’s report thereon and those selected objectives presented in the annual performance report that have been specifically reported on in this auditor’s report.

Our opinion on the financial statements and material findings on the reported performance information and compliance with legislation do not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected objectives presented in the annual performance report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

INTERNAL CONTROL DEFICIENCIES

We considered internal control relevant to our audit of the financial statements, reported performance information and compliance with applicable legislation. However, our objective was not to express any form of assurance on it. Accordingly, we do not express an opinion or conclusion on these matters.

Matters of internal control considered are limited to significant deficiencies that resulted in a basis for a modification of the audit opinion, or any material findings reported on the audit of the annual performance report or any material findings on the audit of compliance with legislation included in this report.

Consequently, as no matters were reported, we did not identify any significant deficiencies in internal control as described above.

OTHER REPORTS

We draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters reported in the University’s financial statements, reported performance information, compliance with applicable legislation and other related matters that are either in progress or have been completed. These reports did not form part of our opinion on the financial statements or our findings on the reported performance information or compliance with legislation:

Audit-related services

We issued 15 agreed-upon procedure engagement reports since our previous report dated 25 June 2022. There are two engagements which are still in progress. The agreed-upon procedures were performed at the request of various entities providing funding to the University and covered periods ranging from 1 January 2021 to 31 March 2023.

Ernst & Young Inc.

Director: Tina Lesley Rookledge

Registered

Auditor

Chartered Accountant (SA)

28 June 2023

ANNEXURE - AUDITOR’S RESPONSIBILITIES FOR THE AUDIT

As part of an audit in accordance with the ISAs, we exercise professional judgement and maintain professional scepticism throughout our audit of the financial statements, and the procedures performed on reported performance information for selected objectives and on the university’s compliance with respect to the selected subject matters.

Financial Statements

In addition to our responsibility for the audit of the financial statements as described in this auditor’s report, we also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council.

 Conclude on the appropriateness of the Council’s use of the going concern basis of accounting in the preparation of the financial statements. We also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the University’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. Our conclusions are based on the information available to us at the date of this auditor’s report. However, future events or conditions may cause the University to cease to continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance

We communicate with the Council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

STATEMENT OF FINANCIAL POSITION as at 31 December 2022

STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2022

STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2022

STATEMENT OF CHANGES IN FUNDS for the year ended 31 December 2022

STATEMENT OF CASH FLOWS for the year ended 31 December 2022

Statement of Cash Flows

Notes to the Financial Statements

FOR THE YEAR ENDED 31 DECEMBER 2022

1. Basis of preparation and accounting policies

1.1 General information and basis of preparation

The University is autonomous and is a legal persona with full juristic capacity by its incorporation as a university (originally by an Act of the Union Parliament of 1916 when Parliament incorporated the South African College, and now in terms of the Higher Education Act, 1997 (the Act) and the Institutional Statute of the University published under that Act). This legislation places the governance of the University in the hands of a Council, provides for the Council’s composition and powers, and provides for the role and powers of the Senate, and the role and functions of the Institutional Forum.

Higher Education Act, 1997

“Higher education institution” means any institution that provides higher education on a full-time, part-time or distance basis, and which is:

(a) Merged, established or deemed to be established as a public higher education institution under this Act;

(b) Declared as a public higher education institution under this Act; or

(c) Registered or provisionally registered as a private higher education institution under this Act.

The Cape Peninsula University of Technology (CPUT) was established on 1 January 2005 with the merger of the former Peninsula and Cape Technikons, and is domiciled in South Africa. The University’s registered office is at the Administration Building, Symphony Way, Bellville South, 7530.

The financial statements of the University for the year ended 31 December 2022 were authorised for issue in accordance with a resolution of Council on 24 June 2023.

The principal activities of the University relate to teaching, research, and the providing of residential accommodation to students.

Statement of compliance

The financial statements of the Cape Peninsula University of Technology have been prepared in accordance with, and comply with, International Financial Reporting Standards (IFRS) and, in the manner required by the Minister of Higher Education and Training in terms of S41 of the Higher Education Act 101, of 1997 (as amended).

Basis of preparation

The accounting policies set out below are consistent with those applied in the previous year, except as stated below. The financial statements have been prepared on a going concern and historical cost basis, except where stated otherwise (refer to accounting policies). The financial statements are presented in rands, and all amounts rounded to the nearest rand.

Accounting policy applicable on and after 1 January 2022

Several amendments to IFRS became effective for periods beginning on or after 1 January 2022, however, they did not have a material impact on the University.

IFRS amendments and IFRIC interpretations issued but not yet effective

As at 31 December 2022, there are no such amendments and interpretations that would have a material impact on the University.

IFRS update of standards and interpretations in issue at 31 December 2022

Changes in accounting estimates (IAS 8)

Effective for annual periods beginning on or after 1 January 2023.

The amended standard clarifies that the effects on an accounting estimate of a change in an input or a change in a measurement technique are changes in accounting estimates if they do not result from the correction of prior period errors. The previous definition of a change in accounting estimate specified that changes in accounting estimates may result from new information or new developments. Therefore, such changes are not corrections of errors. This aspect of the definition was retained by the Board.

The above has no bearing on CPUT in the current financial period, as there were no instances of prior period errors or changes in accounting estimates.

Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2

Effective date for annual periods beginning on or after 1 January 2023.

This standard has no material impact on the University as at 31 December 2022.

There is no effective date and effect anticipated on the financial statements.

Classification of liabilities as current or non-current –Amendments to IAS 1

Effective for annual periods beginning on or after 1 January 2024.

In January 2020, the Board issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the requirements for classifying liabilities as current or non-current.

The amendments clarify:

• What is meant by a right to defer settlement;

• That a right to defer must exist at the end of the reporting period;

• That classification is unaffected by the likelihood that an entity will exercise its deferral right; and

• That only if an embedded derivative in a convertible liability is itself an equity instrument, would the terms of a liability not impact its classification.

The above will be taken into account for future periods in assessing the current and non-current split in presentation of the financials.

Lease liability in a sale and leaseback - Amendments to IFRS 16

In September 2022, the Board issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16).

The amendment to IFRS 16 specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains.

The University does not expect this amendment to have a significant impact on the annual financial statements.

1.2 Significant accounting judgments and estimates

Judgments

In the process of applying the University’s accounting policies, Management has made certain judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, as discussed below. Management assesses the University’s assets and liabilities, based on the criteria at the reporting date, to reach the appropriate conclusions in this regard.

Estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, as well as the release of income with respect to these assets, within the next financial year, are set out below.

Student fees receivable

Management estimates the amounts that it expects to recover from outstanding balances based upon the age profile of the debts outstanding, payment trends experienced in both the current and prior years, and the levels of student registration and payments received from outstanding students post yearend, as well as events potentially impacting the recoverability of fees receivable. A provision for impairment is raised based on these estimates. The carrying value of student fees receivable at 31 December 2022 was R367 203 648 (2021: R390 448 319). Refer to Note 6.

Depreciation

At each reporting date, Management reviews the assets within property, plant and equipment to assess whether the useful lives and residual values applied to each asset category are appropriate. With the exception of motor vehicles, residual values have generally been assumed to be nil, as it is the University’s intention to fully consume assets through use. In determining the expected useful lives of individual assets, Management has considered the University’s historical patterns of usage, as well as future expected usage. The estimates for the expected useful lives of buildings have been based upon the nature and use of the buildings concerned, and the type of construction and materials used in construction. The carrying value of property, plant and equipment at 31 December 2022 was R2 008 553 936 (2021: R2 041 101 065). Refer to Note 2.1 for further details.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease period and the useful life. The carrying value at 31 December 2022 was R1 249 539 736 (2021: R1 130 787 738).

Post-retirement medical aid benefit obligation

The University’s future obligation in respect of post-retirement medical aid contributions is actuarially valued based on the projected unit credit method. For the purpose of the valuation at 31 December 2022, key assumptions were made in respect of the discount rate, expected inflation on medical aid contributions, actual return on plan assets, expected age of retirements, and mortality rates. More details on these assumptions are provided in Note 10.2.

The carrying value of the post-retirement medical aid obligations at 31 December 2022 is a liability of R735 050 502 (2021: R696 521 850).

Pension fund obligation

The University provides for its obligations relating to conditional benefits in respect of certain employees who are members of the National Tertiary Retirement Fund. The University’s future obligation in respect of this pension fund obligation is actuarially valued based on the projected unit credit method. For the purpose of the valuation at 31 December 2022, key assumptions were made in respect of the discount rate, expected salary and pension fund increases, expected return on plan assets, expected age of retirements, and mortality rates. More details on these assumptions are provided in Note 10.3.

The carrying value of the obligation as at 31 December 2022 was R3 228 543 (2021: R15 866 543).

Lease liabilities

The University’s leases have renewal clauses. The University generally takes up renewal options, and thus, all options have been taken into account in determining the lease term. The model of working with lessors is something that the University will continue to use into the future.

1.3 Segment information

Segmentation provided in the Statement of Comprehensive Income of these financial statements is in terms of the guidelines prescribed by the Department of Higher Education and Training (DHET), and is not required in terms of IFRS 8.

A segment is a recognised component of the University that is engaged in providing products or services that are subject to risks and returns different from those of other segments.

The operating businesses are managed separately, but fall under the oversight of the Cape Peninsula University of Technology (CPUT) Executive leadership.

Council controlled

The Council controlled segment predominantly represents the teaching component of CPUT. Decision making rights relating to income earned in this segment rests with Council.

Specifically-funded activities restricted

The specifically-funded activities restricted consist mainly of research activity and bursary donations. Here decision making rights over income earned and related expenses rest with

researchers. Council retains an oversight role with regard to ensuring that expenditure is in accordance with the mandate received from funders.

Student and staff housing

Student and staff housing relates to the provision of accommodation to students. The availability of this accommodation is a strategic initiative aimed at ensuring that students adopt CPUT as their preferred place of study.

Statement of changes in funds

The total comprehensive income generated in the Statement of Comprehensive Income segments is further allocated into additional funds within the Statement of Changes in Funds. Council-controlled funds are allocated between unrestricted funds and designated funds, whereby the Council sets aside specific funds for designated purposes. Transfers between these funds are an internal allocation by the University, and have no effect on income and expenses.

1.3.1 Accumulated funds

Council-controlled unrestricted funds reserve

This reserve predominantly represents the cumulative net surplus of the teaching component of CPUT. The net (loss)/ surplus for the year for the student and staff accommodation is included here.

Specifically-restricted funds reserve

This reserve comprises the cumulative net surplus of specifically-funded activities.

1.4 Foreign currency translation

The financial statements are presented in rands, which is the University’s functional and presentation currency.

Transactions in foreign currencies are initially recorded in the exchange currency rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the reporting date. All differences are taken to net surplus or loss in the year in which they arise.

Non-monetary items carried at cost are translated using the exchange rate at the date of the transaction, whilst assets carried at fair value are translated at the exchange rate when the fair value was determined. When a gain or loss on a nonmonetary item is recognised directly in other comprehensive income, any exchange component of that gain or loss shall be recognised directly in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognised directly in net surplus or loss, any exchange component of that gain or loss shall be recognised directly in net surplus or loss.

1.5 Revenue recognition

Revenue is measured at the fair value of the consideration received, or receivable, excluding discounts, rebates, and VAT. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the University, and the revenue can be reliably measured. The following specific recognition criteria must be met before revenue is recognised:

State appropriations - Subsidies and grants: State subsidies and grants for general purposes are recognised in surplus or loss as revenue in the financial year in which they become receivable. Subsidies and grants for specific research purposes

are recognised in surplus or loss as revenue in the financial period in which they become receivable to the University, in accordance with the relevant conditions of such grants and agreements. Such subsidies and grants are presented separately as revenue in surplus or loss. Subsidies and grants relating to specific expenses incurred by the University are not offset from the related expenses, but are presented separately as revenue in surplus or loss.

Government grants relating to assets: When a grant relates to an asset, under IAS 20, the fair value is credited to a deferred income account, and is released to income over the expected useful life of the relevant asset on a systematic basis.

Interest received: Revenue is recognised as interest accrues (using the effective interest method, that is the rate that discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).

Dividends: Dividends are recognised when the right to receive payment is established.

Private gifts and donations: Private gifts and donations, whether of cash or assets, are recognised as revenue in the period they are received or receivable only when the University obtains control of these funds, the right to receive it, or it is probable that the economic benefits comprising these funds will flow to the University, and the amount of the private gifts and donations can be measured reliably.

Private gifts and grants with restrictions or conditions attached are recognised as income if the restrictions and conditions are under the entity’s preview, and it is probable that these restrictions and conditions would be met. Alternatively, these funds are recognised as deferred income until the above criteria are fulfilled, or when the restrictions or conditions expire.

Income is recognised at the fair value of the private gifts and donations received or receivable. Private gifts and donations in the form of services are measured at the fair value of the services received, or the fair value of the asset enhancement resulting from the services. Fair value is the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

IFRS 15 revenue from contract with customers: IFRS 15 establishes a comprehensive framework for determining whether, how much, and when revenue is recognised. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the University expects to be entitled in exchange for those goods or services.

Tuition and residence fees: Tuition and residence fees charged are applicable to one academic and financial year, and are recognised in that year. The University has assessed that the students simultaneously receive and consume the benefits provided within the year, as such, revenue is recognised over time. Scholarships, bursaries, and other financial aid provided by the University to students for tuition and residence fees, are recognised as a reduction of fees. The University has to fulfil its performance obligation by way of providing lecturers, study material, online videos, or consultations for students, as well as assessments and examinations.

Income from research contracts: Income from contracts for research activity is recognised over the duration of the associated research activity, as determined with reference to the stage of completion. Stage of completion is determined on a cost or time-apportionment basis. Revenue from contracts for other activities is recognised when such activities occur.

Income from research contracts is recognised in accordance with IFRS 15. It is based on the principle that revenue is recognised when control of good or services transfer to a customer.

A contract liability is recognised if a payment is received, or payment is due from the customer before the University has transferred the related goods or services. Contract liabilities are then only recognised as revenue once the University has performed under the contract.

Rendering of services: Various academic departments render a range of services to industry. Revenue from rendering of these services is recognised by reference to the stage of completion, determined on a cost or time-apportionment basis, as appropriate for the services involved.

1.6 Retirement benefits

Defined contribution retirement plan

Employer contributions to the Cape Peninsula University of Technology Retirement Fund (previously known as the Cape Technikon Retirement Fund) are recognised as expenses, as the related service is provided.

Defined contribution and defined benefit retirement plan

Employer contributions to the National Tertiary Retirement Fund (NTRF) are recognised as expenses, as the related service is provided.

The NTRF is a defined contribution fund, and members were transferred from the AIFPF (previous State Pension Fund) with conditional benefits that materialise once these conditions are met. In terms of the conditional retirement benefits, members’ benefits are equal to the actual value at date of retirement, provided that they are 60 years or older, and the Employer is obliged to ensure that the conditional retirement benefit is effected, as referred in those members’ conditions of employment, and the contract between the Fund and the respective participating employers to fund any shortfall (difference between the Member Share account and actuarial value of the benefit) at retirement.

The costs incurred in respect of these pension fund obligations are charged as an expense, as the employee renders the service. The present value of the pension fund obligation is actuarially determined annually, using the projected unit credit method, in accordance with IAS 19 Employee Benefits. The liability is recognised at the reporting date.

When the calculation results in a potential asset, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan, or reductions in future contributions to the plan. To calculate the present value of the economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets

(excluding interest), and the effect of the asset ceiling (if any, excluding interest), are immediately recognised in Other Comprehensive Income (OCI). The Institution determines the net interest expense/(income) on the net defined benefit liability/ (asset) for the period, by applying the discount rate used to measure the conditional benefit obligation at the beginning of the annual period to the then net conditional benefit liability/ (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in surplus or loss.

When the benefits of a plan are changed, or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in surplus or loss. The Institution recognises gains or losses on the settlement of a conditional benefit plan when the settlement occurs.

Post-retirement medical aid obligations

The Cape Peninsula University of Technology has an obligation to provide certain post-retirement medical aid benefits to its eligible employees and pensioners. The University is required to provide a defined amount of the medical aid contribution due. One of the University’s plans is funded with a plan asset.

Other staff members elected to take out individual retirement annuities, which will be used to fund their medical aid obligation upon retirement. The Institution provides these staff members with a monthly allowance to enable them to fund these individual retirement annuities.

The costs of providing post-retirement medical aid benefits are determined using the projected unit credit method.

When the calculation results in a potential asset, the recognised asset is limited to the present value of economic benefits available, in the form of any future refunds from the plan, or reductions in future contributions to the plan. To calculate the present value of the economic benefits, consideration is given to any applicable minimum funding requirements. The net obligation is calculated separately for each plan, by estimating the amount of the future benefit that the employees have earned in the current and prior periods, discounting that amount, and deducting the fair value of any plan assets.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest), and the effect of the asset ceiling (if any, excluding interest), are immediately recognised in Other Comprehensive Income (OCI). The Institution determines the net interest expense/(income) on the net defined benefit liability/(asset) for the period, by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability/ (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in surplus or loss.

When the benefits of a plan are changed, or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in surplus or loss. The Institution recognises gains or losses on the settlement of a defined benefit plan when the settlement occurs.

1.7 Borrowing costs

Borrowing costs are accrued based on the effective interest rate. Borrowing costs that are directly attributable to the acquisition, construction, or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of that asset. All other borrowing costs are recognised as an expense.

1.8 Research costs

Research costs are expensed as incurred, and are included in other operating expenses.

1.9 Property, plant and equipment, and right-of-use assets

Property, plant and equipment is initially recognised when it is probable that future economic benefits will flow to the University, and the cost of the item can be measured reliably. Property, plant and equipment is initially measured at cost. The cost of an asset comprises the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to operate as intended by Management.

Subsequently, property plant and equipment is measured at cost less accumulated depreciation, and net of any accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount, or are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits will flow to the University, and the cost of the item can be measured reliably. Maintenance and repairs, which do not meet these criteria, are recognised in surplus or loss, as incurred. Donated items of property, plant and equipment are initially recognised at fair value of the asset received. Land is not depreciated, as it is deemed to have an indefinite life.

Property, plant and equipment is depreciated on a straightline basis estimated to write each asset down to its estimated residual value over the estimated useful lives of the assets, which range as follows:

Depreciation commences when an asset is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the manner intended by Management. Depreciation ceases at the earlier date that the asset is either classified as held for sale, or the asset is derecognised.

An item of property, plant and equipment is derecognised upon disposal, or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds, and the carrying amount of the asset) is included in surplus or loss in the year that the asset is derecognised.

1.10 Impairment of non-financial assets

The University assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any such indication exists, the University makes an estimate of the asset’s recoverable amount.

An asset’s recoverable amount is the higher of an asset’s fair value, less costs to sell and its value in use. Value in use is the present value of future cash flows expected to be derived from an asset or cash generating unit. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired, and is written down to its recoverable amount, and impairment losses recognised in surplus or loss.

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist, or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in net surplus.

After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

1.11 Financial assets Classification and measurement

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics, and the University’s business model for managing them. The University’s business model is to hold investments for capital appreciation, and therefore manages its investment portfolio on a fair value basis. The University initially measures financial assets at fair value, plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs. Trade receivables that do not contain a significant financing component, or for which the University has applied the practical expedient, are measured at the transaction price determined under IFRS 15.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items of property, plant and equipment.

For a financial asset to be classified and measured at amortised cost or fair value through other comprehensive income (FVOCI), it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test, and is performed at an instrument level.

The University’s model for managing financial assets refers to how it manages its financial assets to generate cash flows. The model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date.

Financial assets at FVTPL

Financial assets at FVTPL include financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets with cash flows that are not SPPI, are classified and measured at FVTPL, irrespective of the business model.

Financial assets at FVTPL are carried in the Statement of Financial Position at fair value, with net changes in fair value recognised in the income statement.

The University’s business model is to measure and assess performance of its investments on fair value basis, and therefore has classified it as investments at fair value through profit or loss.

Financial assets at amortised costs (debt instruments)

The University measures financial assets at amortised costs if both the following conditions are met:

• The financial asset is held with the objective to hold the financial assets to collect contractual cash flows; and

• The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Student receivables, trade receivables, and loans are held to collect contractual cash flows, and are expected to give rise to cash flows representing solely payments of principal and interest. The University analysed the contractual cash flow characteristics of those instruments, and concluded that they meet the criteria for amortised cost measurement under IFRS 9.

Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method, and are subject to impairment. The University recognised an expected credit loss (ECL) on all financial assets measured at amortised cost. The University has applied the simplified approach when calculating the ECL for trade and other receivables and student fees receivable. Changes in economic factors, such as Consumer Price Index are taken into account when determining an ECL. The University makes use of a provision matrix to determine the expected credit losses on all receivables. The provision matrix is based on historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions, and assessment of both the current and forecast direction of the conditions at the reporting date, including the time value of money, where appropriate. The ECL model takes the following details into account:

i. Is the student funded by a bursor, or self-funded?

ii. If self-funded, is there a payment plan currently in place to settle the outstanding debt?

iii. Has the student defaulted on the payment arrangement, i.e., missed a monthly payment?

If points (ii) and (iii) apply, the student is considered to be of a higher credit risk, and the full outstanding balance at as yearend has been impaired.

Gains and losses are recognised in profit or loss when the asset is derecognised, modified, or impaired. The University’s financial assets at amortised cost includes trade receivables and student fees receivable.

1.12 Financial liabilities

Initial recognition and measurement

All financial liabilities are initially recognised at fair value, and subsequently measured at amortised costs, in the case of trade and other payables, loans and borrowings, net of directly attributive transaction costs.

Financial liabilities at amortised cost (loans and borrowings, and trade and other payables)

This is the category most relevant to the University. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, as well as through the EIR amortisation process.

Trade and other payables are subsequently measured at amortised cost.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees, or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs on the Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in respect to carrying amounts is recognised in Statement of Profit and Loss.

Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated Statement of Financial Position if there is a currently enforceable legal right to offset the recognised amounts, and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. In 2021, the University offset a trade payable with a trade receivable to the value of RNil (2020: RNil).

1.13 Inventories

Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Cost is determined on the weighted average method. The cost of inventories comprises of all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition.

1.14 Leases

The University assesses at contract inception whether a contract is, or contains, a lease; that is, if the contract conveys

the right to control the use of an identified asset for a period of time, in exchange for consideration.

The University as a lessee:

The University applies a single recognition and measurement approach for all leases, except for short-term leases and leases with low-value assets. The University recognises lease liabilities to make lease payments, and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The University recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of the right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date, less any lease incentives received. Refer to Note 2.2 for details.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease period and the useful life of the asset, as follows:

Furniture and equipment 3 to 4 years

Motor vehicles 3 to 4 years

Land and buildings 3 to 6 years

If ownership of the lease asset transfers to the University at the end of the lease term, or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use asset is subject to impairment.

ii) Lease liabilities

At the commencement date of the lease, the University recognises lease liabilities measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments), less any lease incentives receivables, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the University, and payments of penalties for terminating a lease, if the lease term reflects the University exercising the option to terminate. Variable lease payments that do not depend on an index or rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs.

When calculating the present value of lease payments, the University uses its incremental borrowing rate at the lease commencement date, because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion on interest, and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there are any modifications, a change in

lease term, a change in lease payments, or change in the assessment of an option to purchase the underlying asset.

The University’s lease liabilities are included in the interestbearing loans and borrowings.

iii) Short-term leases and low-value assets

The University applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date, and do not contain a purchase option). It also applies the lease low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term lease and low-value assets are recognised as an expense on a straight-line basis over the lease term.

1.15 Other employee related liabilities

Short-term employee benefits

University staff members, in the case of death, qualify for different categories of benefits, depending on whether they were a member of the Pension or Provident Fund.

Other long-term employee benefits

Certain staff members of the two heritage institutions (Cape and Peninsula Technikons) qualify for certain post-retirement medical aid benefits (refer to Note 10.2) and pension fund benefits (refer to Note 10.3). In some cases, the Institution will contribute either 50%, 66,67%, or 100% of the medical aid contributions to an approved scheme upon retirement, whilst in the case of other qualifying members, the University is paying a monthly allowance to those staff members to enable them to purchase a retirement annuity which they could utilise towards their medical aid contributions upon retirement. The cost pertaining to these benefits is expensed during the period. With regards to staff members of the NTRF who qualify for defined benefits upon retirement, the University pays the shortfall as calculated by the actuaries, into the members’ fund during the year of retirement. The related cost is expensed during that period.

Post-employment benefits

Qualifying staff members who were employed at the University prior to 1 January 2005, accrued leave at a rate of 12 days per annum, up to 31 December 2016. The accumulative leave was limited to 120 days. Upon termination of employment, the unutilised portion of this accumulative leave is paid to the staff member at the rate of pay prevailing on 31 December 2016.

2. Property, plant and equipment

2.1 Property, plant and equipment

A register of land and buildings is available for inspection at the business address. The University is not permitted to dispose of, or otherwise alienate, its land and buildings without the pre-approval of the Minister of Higher Education and Training.

The balance for land and buildings includes R184 177 578 (2021: R184 177 578) in respect of land. There were no additions to the land balances in the current year.

The Cape Suites building has been pledged as security for the First National mortgage bond of R34 923 187 (2021: R54 084 878).

2.2 Right-of-use assets

Right-of-use assets are recognised at cost and depreciated over the term of the lease. Details relating to lease liabilities are found in Note 8.

3. Financial assets measured at fair value through profit and loss (FVTPL)

of the following:

Investments comprised investments in equities, interest-bearing bonds, unit trusts and money market deposits, which are all listed on recognised markets. Consequently, the only investment with fixed maturity dates are the interest-bearing bonds, disclosed in Note 18. There are no significant terms and conditions attached to the investments.

4. Inventory

No inventory was written off in the current year (2021: Nil).

5. Accounts receivable and prepayments

Accounts receivables are non-interest bearing, and are generally on 30-day terms. Other receivables consist of interest accrued on short-term deposits, and other non-trade receivables.

Age analysis of accounts receivable

The age analysis below is based on the balances per Note 5, but excluding prepayments and VAT receivable. The age analysis is based on the date of invoice or the date the receivable was raised in the accounts, depending on the nature of the transaction, such as claims from Government. The impairment is based on an expected credit loss model, and takes into account all debtors that had a balance at year-end. Debtors to the value of R7 840 408 (2021: R10 943 751) were considered high credit risk, and were fully impaired.

Movements in the provision for doubtful debts of accounts receivable were as follows:

6. Student fees receivable

Annual fees are payable in monthly instalments from February to November, at a rate of 10% of the fees. Semester fees are payable in monthly instalments, at a rate of 20% of the fees from February to June for first semester, and from July to November for second semester students, respectively.

When calculating the student debt provision, the University considers all forward-looking information available at reporting date in respect of irrecoverable student debtors to be R953 323 348 (2021: R797 272 010). The remaining student balance of R367 203 648 (2021: R390 448 319) relates to student fees from currently registered and externally funded students, which are considered a low credit risk and have not been impaired.

Age analysis of student fees

The table below provides the age analysis of student fees receivable (before provisions), as at 31 December 2022. Due to the nature of its operations, the University only tracks outstanding fees on an academic year basis. All outstanding balances are past due.

Movements in the provision for impairment of accounts receivable were as follows:

7. Cash and cash equivalents

Cash at bank earns interest at floating rates based on daily bank deposit rates, whilst short-term deposits earn interest at a fixed rate. The fair value of cash and cash equivalents is R721 109 076 (2021: R796 050 728).

The University held R500 000 000 (2021: R400 000 000) on short-term bank deposits at year-end. These deposits are at market related fixed rates that mature within 3 months. They are classified as cash equivalents, as they are considered readily accessible prior to maturity. The interest rate of all short-term deposits held throughout the period was between 4,55%–8,30% (2021: 3,93%–5,025%).

8. Interest-bearing borrowings

8.1 Interest-bearing borrowings

State loans: These loans all have fixed interest rates, ranging from 9,00% to 13,22%, and varying repayment terms. They are unsecured, and subsidised to the extent of 85% for both interest and capital repayments, which are included in the University’s annual subsidy allocation.

Financial institutions loans

First National Bank: A commercial property finance loan of R150 000 000 in respect of Cape Suites was registered at the Deeds Office on 28 October 2014. As at 31 December 2022, the balance outstanding on the facility was R34 923 187 (2021: R54 084 879). The mortgage bond is for a 10-year period, and semi-annual payments of R9 667 096 (2021: R11 648 320) are due on 1 May and 1 November each year. The bond bears interest at prime rate less 1,50%, compounded monthly. The Cape Suites residence is pledged as security against this mortgage bond.

Lease liabilities: The University leases a number of buildings for student accommodation, with lease periods ranging between 2 to 7 years. The leases are treated as a lease liability, and the liability is valued based on the present value of future lease payments, which have been discounted using an incremental borrowing interest rate between 5,8%– 8,9%.

The University leases buses for the transportation of students. The leases are treated as a lease liability, and the liability is valued based on the present value of future lease payments, which have been discounted using an incremental borrowing interest rate of 7,5%.

The lease liability increased by R413 959 571 (2021: R441 382 357) in the current year. Per IFRS 16, the interest on the additional lease liability will accrue on the balance at an incremental interest rate varying between 6,25%– 8,9% over the life of each lease. As at 31 December 2022, the lease liability is R1 372 029 088 (2021: R1 220 471 255), and the interest charged in respect of the liability in 2022 is R117 545 953 (2021: R97 474 838).

The leased premises shall be used as a student accommodation, provided that such use does not contravene any town planning conditions applicable in respect of the property, and for no other purpose without the prior consent from the landlord, which consent shall not be unreasonably withheld or delayed.

The present value of lease liabilities is analysed as follows:

8.3 Changes in liabilities arising from financing activities

9. Finance costs

10. Other employee benefits

10.1 Employee leave liability

Accumulated leave: A provision is made for the estimated liability for accumulative leave as a result of services rendered by employees up to 31 December 2016. As the University is expecting to pay out the liability over more than one financial year, the long-term portion has been classified as non-current.

Annual leave: Employees are allowed to utilise the balance of the annual leave entitlement that has accrued to them at the date of the Statement of Financial Position at 31 December 2022 for 6 months after the reporting date. This benefit only vests with the employee in the year in which they accrue. A liability has been recognised, and provides for the additional amount that the University is expected to pay as a result of the unused entitlement that has accumulated as at 31 December 2022. The University has made the assumption that all staff will utilise the entitlement within the 6 months, and thus recognises this as a current liability.

10.2 Post-retirement medical aid obligation

The University operates defined benefit medical aid schemes for the benefit of permanent employees. Prior to the formation of the merged institution, both former technikons had separate contractual obligations to provide post-retirement medical benefits to qualifying employees. The obligation in respect of the former Peninsula Technikon is funded by a plan asset; whereas the obligation in respect of the former Cape Technikon is unfunded. Both obligations are actuarially valued and accounted for separately, as the University does not have the legal right to offset the plan assets in respect of the former Peninsula Technikon scheme against the liabilities that arise on the former Cape Technikon scheme.

An explanation of each individual scheme, and a reconciliation of the movement in the obligation in the scheme, are set out separately below.

Former Peninsula Technikon Scheme: In terms of employment contracts, post-retirement medical benefits are provided to certain employees who commenced employment at the former Peninsula Technikon prior to 1 January 1999, by subsidising the medical aid contributions of retired employees.

The University’s future obligation in respect of the post-retirement medical aid contributions is actuarially valued annually by independent, professional, qualified actuaries, using the projected unit credit method. The last valuation was performed as at 31 December 2022, and the principal actuarial assumptions used in the valuation were as follows:

With effect 1 May 2003, a group annuity policy was created, which meets the definition of a plan asset in terms of IAS19. The fair value of the plan asset at 31 December 2022 of

(2021:

555 250) has therefore been set off against the funding obligation.

Plan assets: Assets are held in a level annuity and SIM Absolute fund held with Sanlam, which has been set aside to fund the University’s post-employment health care liability.

This policy pays a level annuity until the deaths of the member and their spouse (if applicable). This annuity is increased annually, depending on the performance of a growth portfolio and the option that the member is on. Increases are not guaranteed.

The plan assets therefore meet the definition of a qualifying insurance policy, as per the accounting statement, and its fair value is deemed to be the present value of the contribution members’ liability, on the IAS 19 basis.

Sensitivity analysis: Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the obligation by the amounts shown below:

Contributions to the plan for 2023 are expected to amount to R12 114 000 (2022: R12 744 000).

Former Cape Technikon Scheme: The former Cape Technikon operated a post-retirement medical benefit scheme for retired and certain employees who joined the Institution prior to 1 January 2003.

The University’s future obligation in respect of the post-retirement medical aid contributions is actuarially valued annually by independent, professional, qualified actuaries, using the projected unit credit method. The last valuation was performed as at 31 December 2022, and the principal actuarial assumptions used in the valuations were as follows:

Movement

Sensitivity analysis: Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the obligation by the amounts shown below.

Contributions to the plan for 2023 are expected to amount to R27 939 000 (2022: R22 241 000).

10.3 Pension fund obligation

10.3.1 Pension fund – Defined contribution

Staff of the former Peninsula Technikon belong to the National Tertiary Retirement Fund (NTRF). This is a defined contribution scheme, with certain conditional benefits (see Note 10.3.2).

Staff of the former Cape Technikon belong to the Cape Peninsula University of Technology Retirement Fund (previously known as the Cape Technikon Retirement Fund). This is a defined contribution scheme.

10.3.2 Pension fund obligation

The NTRF is essentially a defined contribution fund with conditional benefits to employees transferred from the AIPF (State Pension Fund) and who have not since surrendered this benefit through an official buy out. At retirement age (60 years or older), the employee has a choice to retire with the fund balance, or the actuarial value of the fund according to AIPF formula. During 2003, Peninsula Technikon agreed with employees to fund any shortfall of the benefit on a pay-as-you-go basis. The actuarially calculated shortfall at 31 December 2022 amounted to R3 228 543 (2021: R15 866 543).

Actuarial assumptions: The following were the principal actuarial assumptions at the reporting date:

Sensitivity analysis: Reasonably possible changes at reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the obligation by the amounts shown below.

11. Accounts payable and accrued liabilities

Trade and other payables and accrued expenses are non-interest bearing, and are normally settled on 30-day terms.

12. State appropriations – Subsidies and grants

Included in the above are the following Government grants released to income. (See Note 17.2).

13. Revenue from contracts with customers

13.1 Revenue from contracts with customers

For the current year, there is no income from commercial research contracts that conclude post financial year-end.

13.2 Contract income liability

The University received contract income of R14 564 631 (2021: R9 011 592) for various research projects. No amounts regarding research projects have been deferred, as all the performance obligations stated in the contract were satisfied at the reporting date. As the University has an obligation in terms of the contract to satisfy these performance obligations on a specific date no later than 12 months after reporting date, the liability is considered to be current.

14. Interest received and dividends

15. Other operating expenses

The following items are included in other operating

16. Personnel costs

17. Deferred income

17.1 Government grants relating to assets

According to IAS 20, Government grants relating to assets shall be recognised as income over the period necessary to match them with the related costs which they are intended to compensate, on a systematic basis. The deferred revenue will be recognised as income on a systematic and rational basis over the useful life of the assets. Included in the deferred income below is also the Infrastructure and Efficiency Grant. The deferred revenue will be recognised as the maintenance expenditure is incurred.

Upon receipt of an earmarked grant from DHET, the University is instructed to hold the funds in an interest-bearing account. Should the University wish to utilise the interest earned on the unspent funds, it has to get permission from DHET, and the interest can only be used on the specific project for which permission is granted. The University will defer the interest until such time as permission is granted to use it.

17.2 Government Grants – Other

This relates to Government grants other than Infrastructure, and according to IAS 20, Government grants relating to projects will be recognised as income over the period necessary to match them with the related costs which they are intended to compensate, on a systematic basis. These funds are released over two financial reporting periods. The deferred revenue will be recognised as income on a systematic and rational basis over the period of the project.

18. Financial risk management objectives and policies

The University’s principal financial instruments comprise investments, accounts receivable, student fees receivable, staff loans, cash and short-term deposits, interest bearing borrowings, accounts payable, and accrued liabilities.

The University manages a substantial portfolio of investments, with a long-term view to growing the portfolio in order to provide financial stability and support for new initiatives of the University.

The main purpose of the interest-bearing loans and borrowings is to raise finance for the University’s capital building projects. The University has various other financial assets and liabilities, such as accounts and student fees receivable, and accounts payable, which arise directly from its operations.

The main risks arising from the University’s financial instruments are market risk, credit risk, and liquidity risk. Council, through its Finance Committee, reviews, and agrees on policies for managing each of these risks. These are summarised below:

Market Risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: price, currency, and interest rate risks. The University’s exposure to market risk relates primarily to its investments and loans.

The University’s investments are managed by selected portfolio managers who operate under defined mandates, which are designed to limit the exposure of the University. The investment decisions made, and performances of these managers are closely monitored by the Finance Committee. This Committee comprises members of the University’s Council and executive management members with specific expertise relating to investments.

Interest rate risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The University’s interest-bearing borrowings are a combination of fixed and floating rates of interest. The University has a number of receivables where interest rates charged are linked to the prime rate.

The University did not charge any interest on student fees receivable for the current year (2021: RNil).

The University holds a substantial amount of interest-bearing investments and interest earning bank deposits. Interest risks relating to the University’s investments are managed by selected portfolio managers.

The following table demonstrates the sensitivity of the University’s financial assets and liabilities that are subject to interest rate risk to a reasonable change in market values, with all other variables constant. The effect of these are considered on a net basis.

Impact of interest rate changes on net surplus and accumulated funds

Price risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate and currency risks). The University is exposed to price risk in respect of its investment portfolio. The University manages this risk through investing in a wide variety of assets.

The following table demonstrates the sensitivity of the University’s financial assets that are subject to price risk to a reasonable change in market values, with all other variables constant.

Impact of market variances on net surplus and accumulated funds

Foreign currency risk: The University is exposed to foreign currency risk to the extent that it has accounts receivable and payable balances denominated in foreign currencies. The amount of such balances is negligible at year-end.

Credit risk: The risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The University trades only with recognised, credit worthy third parties. In addition, receivable balances are monitored on an ongoing basis, with the result that the University’s exposure to bad debts, with the exception of student fees receivable, is not significant, and there is no significant concentration of credit risk at year-end. The maximum exposure is the carrying amount reflected in Notes 5, 6 and 7 (excluding prepayments and VAT receivable).

In respect of trade and other receivables, the debtors would be considered to be a higher risk if they have defaulted, i.e., not made payment within 30 days of invoice issued, and show any economical signs of not being able to settle the debt. Trade debtor to the value of R7 840 408 (2021: R10 943 751) was fully impaired.

With regards to student debtors, both tuition and residence fees are charged in the beginning of the academic year that coincides with the financial year, and students have to settle their tuition fees within that specific financial year. Any outstanding debt at yearend has been assessed using the Expected Credit Loss model (ECL) taking the following details into account:

i. Is the student funded by a bursor or self-funded?

ii. If self-funded, is there a payment plan currently in place to settle the outstanding debt?

iii. Has the student defaulted on the payment arrangement, i.e., missed a monthly payment?

If points (ii) and (iii) apply, the student is considered to be of a higher credit risk, and the full outstanding balance at as year-end has been impaired. Student debtors to the value of R953 323 348 (2021: R797 272 010) were fully impaired.

Student debtors that have not had any movement in the 3 preceding years, will be written off. Similarly, trade and other receivables that have not had any movement in the 12 months prior to year-end will also be written off.

All credit risk associated with student receivables is adequately provided for. The outstanding fees balance at year-end is as follows:

Provision for impairment of student debtors, illustrated as a percentage of gross student debtors’ balances outstanding at year-end:

With respect to credit risk arising from the other financial assets of the University, which comprise cash and cash equivalents, investment assets measured at FVTPL, the University’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The University only places cash and cash deposits with major financial institutions with good credit ratings.

The University considers financial assets which are neither past due, nor impaired, to be fully recoverable.

Fair values: Set out below is a comparison by category of carrying amounts and fair values of all of the University’s financial instruments.

The fair value of interest-bearing borrowings has been calculated by discounting the expected future cash flows at prevailing market interest rates. It should be noted that the fair value of fixed rate borrowings is impacted by the fact that these loans are subsidised by the State. (Refer to Note 8).

The fair value of short-term financial assets and liabilities approximates their carrying values.

The fair value of investments is based on quoted bid-market prices at the Statement of Financial Position date.

The following table reflects the fair values of financial instruments, including their levels in the fair value hierarchy. It does not include fair value information for financial instruments not measured at fair value if the carrying amount is a reasonable approximation of the fair value.

The University uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Consists of money market investments held with financial institutions. The fair value of these deposits is determined using a discounted cash flow valuation methodology based on market rates, reflecting time value of money and counterparty risk. The fair value of the quoted notes and bonds are based on price quotations at the reporting date.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Liquidity risk: The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The timing and nature of the University’s cash inflows and outflows are such that liquidity problems are unlikely to arise. The cashflow position is monitored by Management daily, and the University has access to funds through either its holding of short-term bank deposits, or the investments portfolio, in the event that any unforeseen events occur.

Capital management: The Institution’s policy is to sustain a healthy accumulated fund balance in order to maintain donor, creditor, and public confidence, as well as sustain future development of the Institution. Specifically-restricted funds are managed within the rules as agreed with the relevant funders. Management monitors the return on accumulated funds. There are no externally imposed requirements for the management of the accumulated funds.

The Institution monitors accumulated funds using a ratio of adjusted net debt to accumulated funds. For this purpose, net debt is defined as total liabilities, comprising interest-bearing loans, borrowings, and obligations under finance leases, less cash and cash equivalents.

The Institution’s objective is to keep the ratio below 2.00. The Institution’s adjusted net debt to accumulated funds ratio at 31 December was as follows:

The following table sets out the maturity profile of the University’s financial liabilities, based on contractual undiscounted payments.

The following table sets out the maturity profile of the University’s financial instruments, which are exposed to interest rate risk with the following categories:

19. Contingent assets, liabilities and financial guarantees

Contingent assets for damages relating to security system agreement

CPUT instituted a claim for damages in the High Court in the amount of R12 374 672 plus interest and legal costs, with further claims in the alternative. The claim resulted from electronic security services not fully installed, or not installed to the required standard; fully maintained; or not maintained to the required standard.

20. Commitments

20.1 Capital commitments

Capital commitments, as listed below, relates to

of building projects.

It is intended that the University will fund these commitments from internal resources, investments, loans, and infrastructure grants.

20.2 Lease commitments

The expenses that relate to short-term leases reflected in profit and loss are as follows:

Short-term lease payments

The payments above are cash payments. Therefore, the total cash outflow from leases is R294 853 495 (2021: R268 692 552) being the sum of short-term leases R32 451 757 (2021: R34 167 292) and payment of principal lease liabilities R262 401 738 (2021: R234 525 260) in note 8.3.

21. Remuneration of key Management

The following disclosure, as required by the Minister of Higher Education and Training, relates to compensation paid to members of the University’s Executive Management Team. Remuneration is based on cost of employment to the University. Compensation paid for other services performed within the University is reflected separately.

All of the above remuneration amounts are in respect of short-term employee benefits in terms of IAS 24, except:

1. Included in basic cost of employment is an amount of R5 300 286 (2021: R4 426 672) in respect of the employer’s contribution to retirement funds and group life schemes.

2. These amounts are in respect of post-retirement medical aid.

Some members receive an allowance in respect of post-retirement medical aid contributions, whilst for others, the Institution provides for the liability, and the contributions are paid over to the medical aid schemes on retirement.

Note 1: Ms Coopoo retired as Dean of Students in July 2022

Note 2: Prof Sheldon resigned as Dean: Engineering and the Built Environment in September 2022

Note 3: Prof Matsha-Erasmus resigned as Dean: Health and Wellness Sciences in August 2022

Note 4: Prof Mji was appointed as Dean: Education in January 2022

Note 5: Ms Dwane was appointed as Senior Director: Human Capital in May 2022

Note 6: Ms Tyolwana was appointed as Acting Dean of Students in August 2022

Note 7: Dr Brooks was appointed as Acting Dean: Health and Wellness Sciences in September 2022

Note 8: Prof Ramsuroop was appointed as Acting Dean: Engineering and the Built Environment in October 2022

* Balances per the table are the remuneration received during the period, as indicated.

The lump sum payments in excess of R249 999 were paid in 2022 RNil (2021: RNil).

Reimbursement for travelling expenses and stipends of R441 250 (2021: R722 250) were paid to external Council members for attendance at meetings of Council and its sub-committees. External Council members receive a stipend of R1 500; Chairperson of sub-committees R1 750; and Chairperson of Council R2 000 per meeting.

The following table represents the disclosure required in terms of IAS 24, in respect of compensation of key Management.

22. Related party transactions

The related party relationships of the Cape Peninsula University of Technology in terms of IAS 24 are as follows:

• Key Management personnel, which comprises members of both Council and the University Executive Management Team (refer to Note 21); and

• The Department of Higher Education and Training (DHET) (refer to Notes 12 and 17).

Due to the nature of the University’s operations and the composition of its Council (being drawn from public and private sector organisations), it is likely that transactions will take place with organisations in which a member of Council may have an interest. These are conducted in accordance with the University’s procurement procedures.

During the current year, the University did not purchase any goods and services from companies in which a Council member or member of Senior Management has a major interest.

The following are significant related party balances, and transactions:

There are various terms and conditions in respect of subsidies and grants, and these are available upon request.

23. Going concern

The University has adequate financial resources to continue in operation for the foreseeable future, and accordingly, the financial statements have been prepared on a going concern basis. This basis presumes that funds will be available to finance future operations, and that the realisation of assets and settlement of liabilities, contingent obligation, and commitments, will occur in the ordinary course of business.

24. Subsequent events

Management have assessed events that occurred after the reporting date and have identified one non-adjusting event, being the protests and arson which damaged parts of the University campus during May 2023.

Affected buildings have been identified and a detailed assessment with the University insurers is well advanced and ongoing to confirm the restoration costs of damages and time frames to repair.

It is anticipated that the fire will have a financial impact on property, plant and equipment (impairment and resultant replacement of the destroyed assets) and repairs and maintenance costs in the 2023 financial year.

The impact has not yet been quantified although management do not expect any significant uninsured costs.

Abbreviations

ACFE Association of Certified Fraud Examiners

APP Annual Performance Plan

AROC Audit and Risk Oversight Committee

AY Academic Year

BCM Business Continuity Management

BICT Business Information and Communication Technology

BRICS Brasilia, Russia, India, China and South Africa

CCEWIL Centre for Community Engagement and Workintegrated Learning

CE Community Engagement

CEO Chief Executive Officer

CESM Classification of Educational Subject Matter

CEWIL Community Engagement and Work-integrated Learning

CHE Council on Higher Education

CHEC Cape Higher Education Consortium

COIL Collaborative Online International Learning

Covid-19 Coronavirus

CPGS Centre for Postgraduate Studies

CPUT Cape Peninsula University of Technology

CSRC Central Student Representative Council

CTS Communications and Technology System

DHET Department of Higher Education and Training

DRP Disaster Recovery Plan

DSI Department of Science and Innovation

DUT Durban University of Technology

DVC Deputy Vice-Chancellor

DVC: RTIP Deputy Vice-Chancellor: Research, Technology Innovation and Partnerships

DVC: T&L Deputy Vice-Chancellor: Teaching and Learning

ED: OVC Executive Director in the Office of the ViceChancellor

eGRC Enterprise Governance Risk and Compliance

EM Executive Management

ERM Enterprise Risk Management

ESG Environmental Social and Governance

Exco Executive Committee

FAS Faculty of Applied Sciences

FBMS Faculty of Business and Management Sciences

FCDO (UK) Foreign, Commonwealth and Development Office

FEBE Faculty of Engineering and the Built Environment

FEd Faculty of Education

FHWS Faculty of Health and Wellness Sciences

FID Faculty of Informatics and Design

FinCom Finance Committee

FRGMS Ratification of the Fraud Risk Governance and Management Scorecard

FTE Full-Time Equivalent

GBV Gender-based violence

GEAPP Global Energy Alliance for People and Planet

GEWE Gender Equality and Women Empowerment

HC Human Capital

HE Higher Education

HEI Higher Education Institution

HEMIS Higher Education Management Information System

HEQSF Higher Education Qualifications Sub-Framework

HR Human Resources

I/R Instructional and Research (Staff)

ICAF Institutional Combined Assurance Forum

ICT Information and Communication Technology

IF Institutional Forum

IGBVC Institutional Gender-based Violence Committee

IOC Internationalisation of the Curriculum

IR Inherent Risk

IRMSA Institute of Risk Management South Africa

IT Information Technology

ITC Information Technology and Communication

ITF Institutional Transformation Forum

ITGC Information Technology Governance Committee

Abbreviations

ITS Integrated Tertiary Software (Institutional Database)

KPA Key Performance Area

KPI Key Performance Indicator

MIT Massachusetts Institute of Technology

ML Machine Learning

MTech Master of Technology

NDP National Development Plan

NESP Nurturing Emerging Scholars Project

nGAP New Generation of Academics Programme

NQF National Qualifications Framework

NRF National Research Foundation

NSFAS National Student Financial Aid Scheme

OC Occasional (studies)

PG Postgraduate

PQM Programme Qualifications Mix

RIM Research Information Management

RPA Robotics Process Automation

RR Residual Risk

RSA Republic of South Africa

RTI Research, Technology and Innovation

RTIP Research, Technology Innovation and Partnerships

SA South Africa

SAASTA South African Agency for Science and Technology Advancement

SAQA South African Qualifications Authority

SARETEC South African Renewable Energy and Technology Centre

SASUF South Africa Swedish University Forum

SDGs Sustainable Development Goals

SDO Student Development Officer

Senex Senate Executive Committee

SET Science, Engineering and Technology

SL Service Learning

SoTL Scholarship of Teaching and Learning

SRC Student Representative Council

SSCC Student Services Committee of Council

STEM Science, Technology, Engineering and Mathematics

SWEEP Student Women Economic Empowerment Programme

T&L Teaching and Learning

TOR Terms of Reference

TTO Technology Transfer Office

UCDG University Capacity Development Grant

UCDP University Capacity Development Programme

UEEF University Employment Equity Forum

UG Undergraduate

UoT University of Technology

UPSET Unfurling Post-school Education and Training

USAf Universities South Africa

UWC University of the Western Cape

V2030 Vision 2030

VC Vice-Chancellor

VET Vocational Education and Training

WCED Western Cape Education Department

CPUT Vision 2030

Seven focus areas:

• Smart ITC environment and ITC workforce;

• Smart Teaching and Learning and Learning Environments;

• Smart RTIP that is relevant and excellent in its knowledge production;

• Smart Human Capital and Talent;

• Smart Internationalisation;

• Smart engagement and strong links with quintuple helix partners; and

• Smart student engagement and learning experiences.

The emphasis on oneness is directed at creating one institutional culture, a sense of belonging, and an environment in which everyone strives towards the same goals, taking pride in who we are and how we conduct our “business” as a university. Oneness encourages working as teams; taking collective responsibility for our future; breaking down silos; working across departments, units, faculties, disciplines and research focus areas – evident in a deep sense of caring about the wellness of others in the workplace, and the future of the University.

CPUT acknowledges the need for social justice, and therefore to be a generator and distributor of knowledge that enhances technological solutions to impact positively on communities and societies, enhancing life conditions, to develop entrepreneurial mindsets of students that can lead to employment and self-employment. All this is directed at dealing with real South African socio-economic, health, education, food security, environmental, climate, safety, public service delivery, and technological imperatives and challenges.

CPUT, as a living system, remains mindful of the rapidly changing external environment in which it has to continually reinvent itself to remain globally excellent, but also locally relevant, and cutting edge.

The Council and Management of the Cape Peninsula University of Technology (CPUT) are guided by the Strategic Plan 2030 Vision, Mission, and Core Values:

Vision

CPUT is Africa’s leading Smart University of Technology, globally renowned for innovation, with graduates that shape a better world for humanity

Mission

CPUT transforms its students, through world class researchers who inspire knowledge production and innovation that are cutting edge

Values

CPUT agrees to oneness and smartness by:

• Embracing a culture of Ethics and Integrity;

• Seeking Kindness and showing compassion (human heartedness) for the well-being of all our students, staff, stakeholders and the CPUT community, as expressed in ubuntu as a way of living;

• Embracing Restoration as we deal with the legacy of our past and as we redress issues of equality, gender-based violence, and any form of discrimination;

• Being a testimony of Unity (ubunye), whilst embracing diversity (ukungafani) in all its forms by being honest, transparent, credible and respectful;

• Showing Passion and demonstrating enthusiasm, devotion, intensity, tenacity and total commitment to everything that we undertake as a university of technology; delivering uncompromising quality service, and always searching for better ways of doing things;

• Taking Accountability and accepting responsibility for all our actions and the actions that we commit to;

• Being Technologically Astute and understanding, as staff members or students of CPUT who aspire to become technologically astute, that we will embrace and take ownership of and experiment with the possibilities technology offers. These attributes facilitate the novel application of modern technology, enabling the enhancement of productivity and efficiency, whilst always focusing on innovation that is centred on a better world.