CPUT 2023 Annual Report

The Cape Peninsula University of Technology (CPUT) was established in January 2005, when the Cape Technikon and Peninsula Technikon merged. This vibrant, culturally diverse, multi-campus entity is the largest higher education institution in the Western Cape, and is the academic partner of choice for more than 30,000 students across its six faculties.

The second largest University of Technology (UoT) in South Africa, CPUT positions itself as a smart University of Technology on the cutting edge of innovation.

Our current Strategic Plan, Vision 2030, was influenced by the inevitable global upsurge 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 crafted with a view towards building One Smart CPUT – with the focus on “oneness” and “smartness”.

General Information Registered address Cape Peninsula University of Technology PO Box 1906 Bellville, 7535 Tel. +27 (0)21 959 6911

BCHC Attorneys Unit G04, The Gatehouse Century Way Century City, 7441 Tel. +27 (0)21 418 2196

Physical address Cape Peninsula University of Technology Administration Building, Symphony Way Bellville South, 7530

Cheadle Thompson & Haysom Incorporated Ground Floor, Kildare House, The Oval 1 Oakdale Road Newlands, 7700 Tel: +27 (0)21 418 2278

Website address www.cput.ac.za Bankers ABSA

Auditors External auditors Deloitte & Touche The Ridge, 6 Marina Road Portswood District, V&A Waterfront Cape Town, 8000 Tel. +27 (0)21 427 5300 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

Fairbridges Wertheim Becker 22nd Floor, Portside Building 5 Buitengracht Street Cape Town, 8001 Tel. +27 (0)21 405 7300 GSM Law Block A, Silverwood Steenberg Office Park Tokai, 7945 Tel. +27 (0)21 702 7763 Norton Rose Fulbright Incorporated 9th Floor, 117 on Strand 117 Strand Street Cape Town, 8001 Tel. +27 (0)21 405 1200 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

Table of Contents Section 1: Institutional Governance ............................................................................................................ 2 1.1 Report of the Chairperson of Council ............................................................................................................................... 2 1.2 Meetings of Council.......................................................................................................................................................... 4 1.3 2023 Members of Council................................................................................................................................................. 8 1.4 Vice-Chancellor’s Report on Management and Administration........................................................................................ 10 1.5 Registrar’s Report.......................................................................................................................................................... 12 1.6 Report on Corporate Governance................................................................................................................................... 14 1.7 Council Statement on Sustainability................................................................................................................................ 24 1.8 Report of the Institutional Forum..................................................................................................................................... 26 1.9 Convocation Report....................................................................................................................................................... 28

Section 2: Management/Operations ....................................................................................................... 30 2.1 Report on the Annual Performance Plan 2023..................................................................................................................30 2.2 Senate Report: ...............................................................................................................................................................36 2.2.1 Learning and Teaching Report ...............................................................................................................................37 2.2.2 Centre for Professional and Personal Development (CPPD) ....................................................................................39 2.2.3 Smart Research, Technology Innovation, and Partnerships (RTIP) ..........................................................................39 2.2.4 Strategic Initiatives and Partnerships (SIP) Directorate ............................................................................................44 2.2.5 Community Engagement and Work-Integrated Learning (CE&WIL) Report ..............................................................45 2.2.6 Faculty Performance Overview............................................................................................................................... 47 2.3 Report on Internal Administrative/ Operational Structures and Financial Controls .............................................................56 2.4 Operational Effectiveness ...............................................................................................................................................58 2.5 Human Capital ................................................................................................................................................................60 2.6 Transformation ...............................................................................................................................................................62

Section 3: Risk and Ethics .............................................................................................................................. 66 3.1 Report of the Audit and Risk Oversight Committee ......................................................................................................... 66 3.2 Enterprise Risk Management.......................................................................................................................................... 70 3.3 Quality Assurance and Risk Management Committee..................................................................................................... 80 3.4 Ethics and Compliance Management.............................................................................................................................. 84

Section 4: Finance ............................................................................................................................................... 90 4.1 Annual Financial Review................................................................................................................................................. 90 4.2 Financial Statements.......................................................................................................................................................92 Statement of Responsibility for the Financial Statements.........................................................................................................93 Approval of the Financial Statements..................................................................................................................................... 93 Report of the Independent Auditors....................................................................................................................................... 94 Statement of Financial Position............................................................................................................................................ 101 Statement of Comprehensive Income.................................................................................................................................. 102 Statement of Changes in Funds........................................................................................................................................... 104 Statement of Cash Flows.................................................................................................................................................... 105 Notes to the Financial Statements....................................................................................................................................... 106 Abbreviations....................................................................................................................................................................... 139

Table of Contents | 1

Section 1: Institutional Governance 2 | CPUT Annual Report 2023

1.1 Report of the Chairperson of Council

It is a pleasure to deliver this second Annual Report as the Chairperson of the Council of the Cape Peninsula University of Technology (CPUT). Along with Deputy Chairperson, Dumisani Gumbi, we have years of experience serving on the CPUT Council in various capacities. During this time, we have seen the Institution undergo significant positive changes and development.

Vision

I have always believed that the strength of an institution can be gauged by the longevity of those at its helm. The commitment both my Deputy and I have shown to CPUT is, therefore, an indication that the University is on an upward trajectory. This is also supported by the duration of the term of the current ViceChancellor, Prof Chris Nhlapo, who is in his second term, and well into 16 years of service at the Western Cape’s largest university.

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

I commend the VC and his Executive Team for always prioritising good governance, and placing the people of CPUT at the centre of all decision-making. Our intention as Council is to continue to nurture and support these talented leaders, and ensure that even more tangible improvements can be made over the coming years.

Together, we are committed to ensuring that CPUT continues its course to greatness, and that the 35,000 students who have selected us as their academic partner graduate on time with a qualification that is impactful and shapes a better world for all.

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 will be able to contribute to sustainable development in a rapidly changing country and world.

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

Mission

Core values CPUT agrees to Oneness and Smartness by: • Embracing a culture of ethics and integrity; • Seeking kindness and showing compassion for the well-being

of all staff, students and stakeholders of CPUT; • E mbracing restoration and addressing any issues of

discrimination; • E mbracing unity and diversity; • Showing passion and always searching for better ways of

doing things; • T aking accountability and accepting responsibility; and • B eing technologically astute.

Considering all of the above, I do not doubt that CPUT can and will achieve more in the years to come. 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 continue to play its ethical leadership 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 that we all aspire to.

Good governance starts within the Council; its members serve without financial reward, often through challenging circumstances. I am grateful for their commitment, diligence, and perseverance. Under my stewardship, the Council will always remain compliant with the statutes that govern the Institution.

This will happen by ensuring the following:

Chairperson of Council

1. That the University complies with governance prescripts;

Dr LF Platzky

2. That all committees of the Council follow their mandates

clearly and consistently, without consideration of personal interest; and 3. Impeccable record keeping will ensure all decisions are

mandated and within our authority.

As we contemplate the next decade, we will continue to be guided by the Vision, Mission and Core Values of CPUT.

Report of the Chairperson of Council | 3

1.2 Meetings of Council

4 | CPUT Annual Report 2023

COUNCIL AND COUNCIL COMMITTEES, SENATE AND JOINT COMMITTEES

Jan

Feb

Mar

Apr

May

25

Council

Jun

Jul

Aug

24

Sep

Oct

09

Nov 25

03

Council (Special) Council Induction Council Strategic Planning

23

Audit and Risk Oversight

10

24

19

04

Audit and Risk Oversight Preparation

01

Executive Committee of Council

10

09

29

25

10

15

Executive Committee of Council (Special)

Finance Governance and Ethics

06

17

20

26

27

11

14

Governance and Ethics (Special)

21

20

Human Resources

03

Investment Sub-committee

17

IT Governance

10

29 31

05

28

26 19

Joint Audit and Finance

13

15 22

11

13

04

06

26

Physical Planning

03

05

28

22

Remuneration

20

Remuneration (Special)

03 15 17 24

Search and Selection Committee for Senior Appointments Student Services Council

27

21

Student Services Council (Special)

28 29

13 06

Senate Senate (Special)

07

22

14

06

25

20

Joint Council and Senate Honorary Degree Award Honorary Degree Award (Special)

27

Hotel School Management Board

09

11

Institutional Forum

01

Institutional Forum (Special)

23

Quality Assurance and Risk

01

03

02

05

18

31

21

08

Meetings of Council | 5

1

Investment Sub-Committee

4

Human Resources

Finance

2

Governance and Ethics (Special)

Executive Committee of Council (Special)

4

Governance and Ethics

Executive Committee of Council

3

Audit and Risk Oversight Preparation

2

Audit and Risk Oversight Workshop

Audit and Risk Oversight

Council (Special)

4

Busetti, C

Council Strategic Planning Workshop

Balkaran, R

Council

2023 List of Council Members, Including Meeting Attendance

3

Booi, X Cullinan, M

3

2

Dlamini, N

2

4

2

2

Dondashe, N

4

Elyas, A

1

Faku, S

4

Green, P

4

Groenewald, L

4

1

1

Gumbi, D

1

2

4

1

2

3

1 1

2

2

4

2

4

2

4

1

2

Jacobs, A Krishnamurthy, S

3

2

1

1

1 3

1

2

Mapena, W

4

1

2

Mashiloane, T

4

2

Matiwane, S

4

1

2

4

Mpfunzeni, R

2

1

1

2

Mtimde, L

2

Ngwenya, N

2 4

Nicholls, R

4

3

1

1

3 4

2

4

1

4

4

2

Nkonki, D

4

4

3

4

2 3

1

Rajaratnam, M

2

4

2

1

Raji, A

4

Schreuder, B

3

4

2 1

Sebitlo, P

4

2

4

2

1 3

1

1

Tshitangano, T

2 3

1

Wall, K

2 2

3

1

1

3

4

4 4

2

Thango, M

6 | CPUT Annual Report 2023

3

1

Mrwetyana, N

Zondi, T

4

2 2

Vabaza, A

3

4

Mashwanyela, C

Socikwa, L

4

1

1

Maharaj, S

Platzky, L

3

1

Makhweyane, M

Nhlapo, C

3

2 3

2

4

2

3 1

4

4

1

4

1

1

3

2

1 1

1

1 1

1

1

1

4

Student Services Council Student Services Council (Special) Senate Senate Special

3 1 4 2

2 1

4

1

4

1

1 3

2

3 2

1 3 2

3 1

2

1

1

3

3

4

2

2

3

1 4

1

1

4

2

1 1

4 1

1

1 4 2 1

2

2

1

3

3

3

1

Quality Assurance and Risk

Institutional Forum (Special)

Institutional Forum

Hotel School Management Board

Honorary Degree Award (Special)

Honorary Degree Award

Joint Council & Senate

Search & Selection Committee for Senior Appointments

Remuneration (Special)

Remuneration

Physical Planning

Joint Physical Planning & Student Services

Joint Audit and Finance

IT Governance Workshop

IT Governance

3 3

1

2

1 1

1 1

4

1

3 2

4 1 1

1 4

1

Meetings of Council | 7

1.3 2023 Members of Council

8 | CPUT Annual Report 2023

Chairperson

Executive Management

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

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

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

Ministerial Appointees Ms N Dondashe * Dr WL Mapena Mr S Maharaj Dr LF Platzky * Mr S Faku *

(With effect from 1 October 2022) (With effect from 1 October 2022) (With effect from 1 October 2022) (With effect from 1 October 2022) (With effect from 1 October 2022)

Convocation Representatives Mr L Socikwa (With effect from 20 February 2023)

Council Appointees Mr D Gumbi * (With effect from 1 September 2018) Dr L Groenewald * (With effect from 1 September 2018) Ms A Vabaza-Mvandaba (With effect from 1 October 2022) Mr S Matiwane * (Term with effect from 1 October 2022)

Organised Labour Representative Mr S Fisa (With effect from 1 December 2023)

Senate Representatives 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 Dr J Jordaan (With effect from 1 October 2022) (Resigned with immediate effect on 31 January 2023) Prof S Krishnamurthy (With effect from 30 October 2023)

Non-Academic Employee Representatives Mr C Mashwanyela

(With effect from 1 October 2022)

Student Representative Committee Representatives Ms S Notshikila Mr L Mngqundaniso

(With effect from December 2023) (With effect from December 2023)

Executive Management in Attendance Dr P Phaho

( Deputy Vice-Chancellor: Research, Technology Innovation, and Partnerships)

Prof G Mayende

(Deputy Vice-Chancellor: Operations)

Mr SS Mokoena

(Registrar & Secretary of Council)

Mr P Du Plessis

(Executive Director: Finance)

Ms N Tyolwana

(Dean of Students)

City of Cape Town Appointee

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

Councillor A Elyas

* The Council member is serving a second term of office.

(With effect from 1 October 2022)

Business Representative Mr M Cullinan

(With effect from 1 October 2022)

Provincial Government Appointee Mr BK Schreuder

(With effect from 1 October 2022)

Chairperson of Council

Registrar

Dr LF Platzky

Mr SS Mokoena

2023 Members of Council | 9

1.4 Vice-Chancellor’s Report on Management and Administration

10 | CPUT Annual Report 2023

I am delighted to present the Cape Peninsula University of Technology’s (CPUT) 2023 Annual Report, reflecting a successful institutional and academic year.

I am particularly gratified to report on strides made in strengthening our governance and risk management processes through combined assurance. By integrating various assurance activities across the University, we have established a robust framework that ensures effective governance and risk management at all levels. This achievement speaks to our commitment to providing the highest transparency, accountability, and integrity standards in all our operations.

Another notable accomplishment is the progress made regarding the policy library and compliance matters. We have dedicated significant resources to developing and enhancing our policy library, ensuring that all policies are up-to-date, easily accessible, and aligned with best practices. Our commitment to compliance is demonstrated through regular audits and monitoring. This results in a strong culture of adherence to regulatory and legal requirements. In this regard, I am proud to announce that the Council on Higher Education’s institutional audit has yielded positive outcomes for the University. The audit validated our commitment to academic excellence, quality assurance, and effective governance. This recognition is a testament to the hard work and dedication of our faculties’ staff and students in upholding the highest standards of education and research.

Our efforts to achieve teaching enrolment targets have also been successfully met. We have witnessed increased student enrolment across various disciplines through strategic recruitment initiatives and targeted marketing campaigns. This achievement reflects the quality of our academic programmes, and positions us as a preferred destination for higher education in the region.

We have made significant progress in finalising the Higher Education Qualification Sub-Framework (HEQSF) qualification alignment, and developing various new programmes. These initiatives have been carefully designed to address the evolving needs of the information revolution, and to position CPUT as a smart University of Technology on the cutting edge of innovation.

These new programmes will equip our students with the skills and knowledge required to thrive in an increasingly digital and technologically advanced world.

I am pleased to note that the Student Representative Committee elections were held peacefully, demonstrating the maturity and engagement of our student body. This peaceful election process reflects our university community’s constructive dialogue and collaborative spirit of oneness.

I am excited about the Cape Peninsula University of Technology’s future, regardless of the many challenges facing the South African higher education system. With our unwavering commitment to excellence, innovation, and transformative education, we are steadily moving closer to becoming the MIT equivalent of Africa. We look forward to continued growth and success, as we strive to make a lasting impact on the lives of our students, the community, and the continent.

Sincerely,

Vice-Chancellor Prof NC Nhlapo

Vice-Chancellor’s Report on Management and Administration | 11

1.5 Registrar’s Report

12 | CPUT Annual Report 2023

The Registrar is a member of the Executive Management, and the Secretary to Council, Senate and Convocation. The Registrar is supported in this function by two Deputy Registrars, Managers within Academic Administration, Secretariat, Records and Archives Departments, Legal Advisors and an Office Coordinator.

Vision:

As part of its strategic objectives, and in line with CPUT’s Vision 2030, the Division champions technology-based initiatives within its mandate, and where possible, in collaboration with institutional, national, and international partners. Therefore, the Division considered the strategic thrusts of CPUT’s Vision 2030, with the concept of “SMART” referring to the 4th and 5th Industrial Revolutions (4IR and 5IR).

To be the leader in providing quality services to stakeholders through innovation and optimal use of technology and human capital resources

The Registrar’s Division comprises of: Academic Administration

Mission:

i. Application and Registration Centre (ARC)

In order to achieve its vision, the Registrar’s Division: • Provides excellent services to its identified stakeholders,

including students, with care, friendliness and respect; • Fosters a human-centred environment of continuous

learning, growth, teamwork; and establishes structures for change management; • Maximises the use of emerging technology to improve

service provision; • Enhances commitment to the institutional and divisional

core values; • Builds a performance culture through responsibility

and accountability using SMART principles; and • Enhances ethical conduct and sound governance principles

in line with the CPUT Ethics Framework.

The Registrar’s Division is one of the critical strategic support service divisions within the university environment, in that it supports the academic project, university administration and management, as well as the university’s statutory governance; maintains the Institution’s records; preserves corporate knowledge; and provides legal advisory support to the University.

Although the Office of the Registrar is responsible for the statutory governance through its administrative support and advisory role in Council and Council committees and other statutory structures, the Office is cognizant of the complexities of governance within higher education, more specifically, taking into account the fact that institutional governance within higher education is not merely confined to governance through statutory structures.

Institutional governance also includes “those processes and regulatory provisions that allow for the institution’s planned targets and outcomes to be achieved, covering from how the different departments and bodies are organised and connected, the incentives and regulations in place for individual members of the institution, financial design and allocation or mechanisms to connect to outside actors”. (https://www.igi-global.com/ dictionary/an-analysis-of-university-governance-dimensionsin-academic-research-and-s3-innovation-performance/ 66790).

The institutional governance concept, therefore, emphasises the roles and responsibilities for good governance practices by all the stakeholders within the institution.

ii. Assessment and Graduation Centre (AGC) Governance and Legal Services i. Legal Services ii. Records and Archives iii. Secretariat

Fundamental objectives of the Division The Registrar’s Division manages and coordinates all student admission, registration, assessment, and ultimately graduation processes, thereby contributing to a positive student experience.

In fulfilling the role as the Secretary to Council, and institutional governance structures, the function includes responsibilities such as preparing and distributing agendas and minutes; providing advisory support to Council, Council committees and other Institutional governance structures; and creating an enabling environment for Council and its committees to govern the University, subject to the Higher Education Act and the CPUT Statute.

The Legal Services Department functions as CPUT’s in-house legal services, and provides legal advisory services to the University’s Management, and academic and support service departments.

The Records and Archives Management department is responsible for good records management practices, and the systematic control of records throughout their life cycle, to ensure compliance with legal, historical, regulatory and operational requirements.

Registrar Mr SS Mokoena

Registrar’s Report | 13

1.6 Report on Corporate Governance

14 | CPUT Annual Report 2023

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 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. 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 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 Senior Management, under the leadership of the Vice-Chancellor, 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.

2. Council and committees of Council Section 27(6) of the Act, provides that at least 60% of the members of Council must be persons who 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.

To ensure effective governance, management and administration of the University, delegation of powers and functions are required, except for those powers and functions that Council, in accordance with the relevant provisions of the Act and Statute, must perform.

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 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 at 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 ser vice of each member, as well as their respective attendance at those meetings, is attached on pages 5–9 of the Report.

Report on Corporate Governance | 15

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) Key focus EXCO is established in terms of Clause 46 read with Clause 47 of the CPUT Statute.

• Support the Council in the governance of the

University;

Composition • Chairperson of Council (Chair of the

Committee)

• Conduct matters, generally deemed to be of

an urgent nature, as is necessary between meetings of Council; • Conduct specific matters, and with such

• Deputy Chairperson of Council • Chairpersons of Council committees • Vice-Chancellor (ex officio)

authority, as is delegated to it by the Council; • Consider the Council Committee reports

to integrate, aggregate and streamline the Committee reports for the benefit of Council; • Prepare overall short- to long-term planning,

policy, and direction of the University; and • Monitor the overall performance of the

University.

2.1.1. The mandate of the Committee is to: a) 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; b) 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; c) Review and set agendas (Annual Work Plan) for Council meetings and for annual Council Planning Sessions, in consultation with Executive Management; d) Propose the Council Annual Business Plan, including setting annual objectives and targets, in consultation with Executive Management, for submission to Council for approval; e) Identify priority issues consistent with the business plan and Council resolutions; f) Receive and review, on a quarterly basis, the progress against agreed institutional objectives and targets; g) 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; h) 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 i) Review the performance of the Vice-Chancellor on behalf of the Council. The final results of the evaluation shall be documented by the Chair and acknowledged by the Vice-Chancellor and the Council.

2.2. Governance and Ethics Committee (GEC) Key focus The GEC 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.

• Governance;

• 3 External members of Council

• Council and Council Committee membership;

• 2 External Committee members

• Council Code of Conduct and Conflict of Interest;

• 1 Internal member of Council

• Training and Development; • Social and Ethics; • Advancement, Marketing and Communication; and • Compliance.

16 | CPUT Annual Report 2023

Composition

• Vice-Chancellor (ex officio)

2.2.1.

The following functions are delegated to the Committee by Council:

a) Filling of vacancies of Council and Council committees based on the criteria, workload, and skills requirements determined by Council; b) 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 c) Appointment of governance and other related service providers/ consultations, subject to a Council approved process.

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.

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

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

2.3. Audit and Risk Oversight Committee (AROC) of Council Key focus AROC reports to Council on all matters relating to: • Financial statements;

Composition

• Internal and External Audit;

• 2 External members of Council

•R isk management oversight and

•2 External Committee members

internal controls;

• Effectiveness of internal controls and risk; and

• IT governance;

• Financial reporting, legal compliance, and risk management.

•C ompliance with laws and regulations.

• Fraud and litigation; and

2.3.1.The Audit and Risk Oversight Committee has the following specific responsibilities: Internal Audit: The Committee is responsible for the overseeing of Internal Audit.

External Audit: The Committee is responsible for recommending the appointment of the External Auditor, and for overseeing the external audit process.

Risk management oversight and internal controls: The Committee is an integral component of the risk management process.

IT Governance Committee: The Committee must ensure that IT risks are adequately addressed, and receive appropriate assurance on controls; and to 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 provide greater coverage and efficiency.

Fraud and litigation: The Committee receives reports on matters of fraud, and the results of forensic investigations into cases of fraud; and feedback on areas of litigation that pose a risk to CPUT in terms of financial impact and/or reputational consequences.

Compliance with laws and regulations: Management provides 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.

2.4. Finance Committee (FinCom) of Council Key focus The Committee ensures acceptable financial accounting systems, financial and investment performance, strategic commercial activities, longterm infrastructure development, and financial sustainability.

Composition

• Financial systems and procedures;

• 3 External members of Council

• Investment management;

• 2 External Committee members

• Remuneration Strategy; • Asset management; • Financial analytical skills; and

• 1 Internal member of Council • Vice-Chancellor (ex officio)

• Procurement and supply chain.

Report on Corporate Governance | 17

2.4.1. The responsibilities of the Committee include advice on, coordination and monitoring of: a) The financial and business affairs of the University; and b) The financial systems and procedures to ensure that the University does business as an academic institution of excellence.

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

2.5. Human Resources Committee of Council Key focus The Human Resources Committee of Council: • Advises Council on human resource and related matters; • Monitors and evaluates the implementation of the HR Strategy, policies and practices; and

Composition

• Human Capital administration;

• 3 External members of Council

• Organisational Strategy;

• 2 External Committee members

• Talent management;

• 1 Internal member of Council

• Leadership development; and

• Vice-Chancellor (ex officio)

• Employment relations (labour).

• Ensures the University adopts a strategic human resource management approach, that is aligned to its business strategy.

2.5.1. 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: 2.5.1.1. Human Capital (HC) Strategy and organisational structure i. Review and monitor the development and implementation of the Human Capital Strategy; ii. Ensure that the HC Strategy is in line with the vision, mission and core values of the University; and iii. R eview and monitor the development of an appropriate organisational structure to implement the HC strategic objectives.

2.5.1.2. 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.

2.5.1.3. 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.

2.5.1.4. 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 Vice-Chancellor’s performance management plan; and vi. Annually review and approve the VC’s performance appraisal results of all Senior Management members, and recommend remedial action, where necessary, to Council.

18 | CPUT Annual Report 2023

2.5.1.5. Human Capital administration i.

Consider and monitor the appointment/ resignation/ dismissal/ retirement 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.

2.5.1.6. Delegated authority and accountability The Committee has delegated powers, authority, duties and functions, as contained in these 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 Scare/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. Physical Planning Committee (PPC) of Council The PPC advises Council on the matching of its physical assets and associated service delivery objectives in support of the goals and priorities of the University’s strategic and operational plans in the areas of research, teaching and learning, international collaboration, and community engagement.

Key focus

Composition

• Property and infrastructure investment;

• E xternal members of Council

• Project planning;

• 2 External Committee

•R isk management/ Protection

Services; •P roperty investment and infrastructure

members • 1 Internal member of Council • Vice-Chancellor (ex officio)

development; and • Resource management and planning.

2.6.1. 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: a) Policy and procedure formulation; b) Campus and master planning; c) Accommodation planning; d) Project planning; e) Service level statements; f) Property Investment Strategy; and g) Funding proposals for infrastructure development.

Report on Corporate Governance | 19

2.7. Student Services Committee Key focus The Student Services Committee advises Council on policy in respect of student services; monitors and oversees the provision of non-academic services to students; and monitors the promotion of a safe, conducive, and academically stimulating life and learning environment.

• Student governance; • Project planning; • Sports management; and • Student wellness.

Composition • 3 External members of

Council • 2 External Committee

members • 2 Internal members of

Council • Vice-Chancellor (ex officio)

2.7.1. 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.

2.8. I nformation Technology Governance Committee (ITGC) of Council Key focus The ITGC: •E nsures governance of the University

strategic asset of IT and its related risks; •E nsures IT sustains and extends the

University’s strategies and objectives; and •E nsures an effective IT governance

framework to enable the organisation to deliver value from IT, whilst optimising value for money, and managing risk.

Composition

• IT governance;

• 3 External members of Council

• IT technology;

• 2 External Committee members

• IT compliance and IT risk;

• 1 Internal member of Council

• Project management; and

• Vice-Chancellor (ex officio)

• IT legal framework.

• 1 IT external specialist

2.8.1. The Information Technology Governance Committee of Council (ITGC) has the following responsibilities: a) T o 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 their 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 with regard to their fiduciary duties and responsibilities, and they must continue to exercise due care and judgment, in accordance with their statutory obligations regarding IT governance.

20 | CPUT Annual Report 2023

2.9. Remuneration Committee The Remuneration Committee: • Ensures fair and responsible remuneration of senior managers; • Ensures payment of honoraria and other incidental expenses to Council members; and • Monitors and evaluates the implementation of the remuneration policies and practices.

Key focus

Composition

• Remuneration & Benefits Strategy,

• 3 External members of Council

• Financial systems and

• 2 External Committee members

procedures, • General human resources and

project management; • Financial analytical skills; and • Business environment knowledge.

2.9.1. 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 encourages 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 recommendations to the Council of the Remuneration Report, to be included in the Annual Report, for whether it: • is accurate, complete and transparent; • provides a clear explanation of how the Remuneration Policy has been implemented, including use of appropriate

benchmarks; and • provides full disclosure of each individual Executive Manager’s and external Council member’s remuneration; and

x. Oversees the annual review of the Remuneration Policy.

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 Council-approved 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 go through the internal due processes and channels first, and should be group-specific matters, that is, 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.

Report on Corporate Governance | 21

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 self-regulation by a member of Council, and as an instrument for taking action with regard to inappropriate conduct on the part of a member of Council.

In exercising their powers and performing their functions, Council members must at all times: 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; iii Support the Vice-Chancellor in his or her fulfillment of objectives and policies of the Council.

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

democratic democratic governance governance

respect for the rights of others

accountability

transparency

objectivity

cooperative governance

collective responsibility

fiduciary responsibility

independence and integrity

confidentiality

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 Council to inform stakeholders of its decisions timeously. A member of 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 influence.

4.4. The principle of respect for the rights of others: A member of 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.

22 | CPUT Annual Report 2023

4.6. The principle of cooperative governance: Council commits itself to the notion of cooperative governance, that is defined as “a social contract in which diverse parties agree to suspend particular interests in the interests of reconstruction and development”. 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 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: • The duty to act: o i n the best interests of the University by exercising reasonable care, skill and diligence in the conduct of his/her responsibilities

and; o legally, honestly and within his/her powers.

• A duty to refrain from misusing information; • A duty not to act in a manner that creates a conflict between duty and personal interest; and • 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 their 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 their position of trust.

4.9. The principle of independence and integrity: A member of Council undertakes at all times 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 Council should at all times conduct themselves 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, that 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

Report on Corporate Governance | 23

1.7 Council Statement on Sustainability

24 | CPUT Annual Report 2023

The Cape Peninsula University of Technology (CPUT) has once again had to face multiple challenges to ensure its continued sustainability. Whilst they include similar hurdles, we are also faced with new problems that must be resolved to ensure the continued sustainability of the Institution.

For the second year, a significant penalty was applied for underenrolment in prior years, which amounted to a further R39m. CPUT has now foregone subsidy income of R125m over the last two years.

With the continued loadshedding that is faced by all communities, and the resultant cost of running backup generators, CPUT had to prioritise funds for this purpose. Additional generators had to be acquired to be able to meet the core purpose of the Institution, namely the delivery of the academic programme. Other costs related to the provision of data were also incurred.

Following the disruption caused by the COVID-19 pandemic, returning students had to be reintegrated into university life. This required a serious drive to enrol both first-time entering students and returning students in 2023 to avoid further under-enrolment penalties. The Institution was successful in meeting its 2023 enrolment target.

After a period of under-enrolment, the next challenge faced was the supply of student accommodation. A return to pre-pandemic numbers, with capacity being reached, meant there was a greater need to provide accredited student accommodation. Plans were thus put in place in 2023 to increase the number of available beds by 1,000 in 2024. The provision of additional beds would have to come from the leased and accredited category, as plans to develop additional beds did not materialise due to the SHIPS 3 Project being terminated. CPUT is now in the process of requesting the Department of Higher Education and Training (DHET) to reprioritise the committed funds to enable it to build a residence on the Bellville Campus.

DHET is still engaged in the development of a three-year tuition fee model. Until this is in place, the annual tuition fee increase is being capped at inflation, and this is communicated directly to the Council. The increase in the student tuition fees for the Higher Education Sector was set at 4,5% for 2024. Unfortunately, this does not adequately cover the contractual costs faced for rates and taxes, electricity, and water.

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

The demand for access to CPUT by prospective students remains strong. This has been evident over the past five years, and is supported by the number of applications received from first-year and first-choice applicants. In 2023, CPUT was able to meet its first-time entering and returning student targets through a major drive by the faculties.

With the current economic challenges being faced by the country, National Treasury has, on a number of occasions, looked at options to reduce funding flows to institutions. In November 2023, the final subsidy payment was reduced by R5m. This was followed by a proposal to reduce the 2023 subsidy by 5,1%, and this would become the 2024 subsidy. This was not implemented, and the 2023 subsidy was finally increased by 1% – the 2024 subsidy.

The Government is the single biggest contributor to the CPUT income line, and the continued sustainability of the University is dependent on its ability to live within its means; to utilise all forms of funding effectively and efficiently; to grow progressively its third stream income; and not to underspend on the various grants (e.g.

Infrastructure and Efficiency Grant).

National Treasury faces tremendous challenges with its cashflow, and this will be a continuing trend throughout 2024 and beyond, as they look to reducing their interest bill by recouping unspent funds. The National Elections in 2024 also cannot be discounted, as politicians make short-term promises that cannot be delivered on due to the shortage of funds.

This is a recurring trend that will continue to influence the landscape in the future, and has not been aided by the long-term effects of loadshedding, as the growth of the economy is constrained.

CPUT’s cost drivers have not changed since the post-pandemic era. The Institution must address its high cost of personnel, and is doing this through a Staff Establishment Project.

Whilst this is dealt with sympathetically, it must be dealt with decisively. 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.

It is the intention of the Institution to focus on the goals set out in V2030, and this will have to incorporate measures to offset rising energy costs using solar, smart metering, and other cost saving initiatives.

HEQSF-Alignment Project and New Qualification This year sees the final teach out of phased out programmes, and all faculties are on track for the phase out process. Three postgraduate diplomas need to be finalised, and this is being carefully monitored.

New programmes are being introduced to address the changing economic landscape in the country, and most of the globe. These programmes are at various stages of development and approval.

All other postgraduate programmes have been introduced, and graduates may be expected in the current year. The new cycle of the enrolment plan will incorporate new programmes that will be introduced in the planned term.

The focus of sustainability must be the number of students doing the full Full-Time Equivalents (FTE’s). The total number of students enrolled in 2020 was 32,383; with 32,410 in 2021; 33,724 in 2022; and 35,425 in 2023.

The overall pass rate (i.e., the degree credit success rate), for the last five years has been 79,9% in 2019; 82% in 2020; 78% in 2021; 79,6% in 2022; and 80% in 2023.

Chairperson of Council Dr LF Platzky

Council Statement on Sustainability | 25

1.8 Report of the Institutional Forum

26 | CPUT Annual Report 2023

During 2023, some acute governing challenges were experienced at several higher education institutions. These challenges and the National Student Financial Aid Scheme (NSFAS) payment disputes impacted the academic projects at various institutions. However, all stakeholders’ prerogative to maintain stability and cultivate a culture of tolerance in higher education remains.

In terms of the relevant provisions of the CPUT Statute 2022, which governs the establishment and operations of the Institutional Forum (IF), the CPUT IF constituted an Institutional Forum with a revised composition of members to align with requirements under the CPUT Statute 2022, for the next three years, as enshrined in the Higher Education Act, No. 101 of 1997.

Transformation is a key element on the agenda at CPUT, and the chairperson serves on the Institutional Transformation Forum (ITF).

Several IF representatives (in different capacities) also serve on the University Employment Equity Forum (UEEF) to better understand the overall transformation objective of CPUT. In 2023, the Institutional Forum provided input on the review of the Talent Acquisition and Selection Policy, and all feedback and advice were submitted to Council.

As per the CPUT institutional calendar, the Institutional Forum had four quarterly meetings for 2023. In addition, Special IF meetings were conducted, based on the importance of the subject matter, and subsequently to provide advice to Council. The majority of IF meetings were conducted virtually, via MS Teams. Only one meeting in May 2023 was conducted face-to-face.

The Minister responsible for Higher Education accentuates the importance of Institutional Forums at universities to keep learning institutions safe. The safety of staff and students, without any doubt, remains a critical challenge within Higher Education, and we therefore urge the Department of Higher Education and Training (DHET) to empower Institutional Forums to advocate for safe learning spaces.

Establishing an IF Chairperson’s Forum is fundamental to having an in-depth understanding of the critical issues and challenges at different institutions. DHET should facilitate this process, as it was part of the 2018 deliberations at Emperor’s Palace. A collective perspective will definitely enable IFs to engage on matters of mutual interest to all stakeholders, and present us with a platform for robust engagements.

Institutional Forum Chairperson Mr A Moses

The following matters were considered and dealt with by IF in 2023: • H uman Capital presented the employment equity targets

of CPUT; • I F discussed the safety of staff and students at the University,

given the challenges that emanate from various sources, and which impacted the safety of all stakeholders; • T he Acting Director conducted a presentation: “Transformation

Diversity and Social Cohesion" with regards to the transformation agenda of CPUT; • The Registrar reported on the Council resolution regarding the

safety of staff and students; • T he Institutional Forum had the privilege of having the

Chairperson of Council present in the meeting, and several critical issues were highlighted during this meeting; • The Terms of Reference (ToR) were aligned with the CPUT

Statute 2022, IF membership was reconfigured, and the functions of IF were clearly explained in layperson’s terms; • T he reduction of membership of CPUT Council had a direct

impact on IF, as the number of Council members serving on IF was reduced to one individual; • IF had lengthy deliberations on the advert of Executive Director:

Finance; and • Recommendations were made to Council on the positions

of Dean of Students and Dean of Engineering and the Built Environment, respectively.

Report of the Institutional Forum | 27

1.9 Convocation Report

28 | CPUT Annual Report 2023

The Convocation is recognised as a statutory structure of the University in terms of Paragraph 68 of the CPUT’s Statute, and plays a vital role in the Institution’s life. It holds the University’s best interest at heart, building and maintaining strong relations between the University and external stakeholders, to benefit the current student and alumni community.

Convocation participates in the governance structures of the University, markets the university brand domestically and internationally, and engages in fundraising initiatives that support university programmes, among others. In response to its mandate, the Convocation identified the need to build a strong convocation brand, contribute to nurturing students through mentorships, and keep close ties with strategic partners, stakeholders, and the entire CPUT community.

The Convocation’s commitment to the University’s Smartness aspirations is unwavering. The 2025 Strategy envisions a unified smart CPUT identity that resonates with all alumni, aiming to build a better society for our students, and impact our country and beyond. The Convocation is dedicated to achieving this by evolving into an influential structure of the University, ensuring optimal, holistic nurturing of future intelligent, influential, and ethical leaders who support impactful and relevant research.

Key Convocation activities in 2023 included: Participation in institutional governance: Convocation is represented in the Council and other University structures, such as the Institutional Forum (IF), the Naming Committee, and the Council Committee on Senior Appointments (CCSA). Convocation successfully convened its annual general meeting (AGM) for the year, and the Convocation Executive Committee (Convex), responsible for the day-to-day operations, successfully held its quarterly meetings.

Student Leadership Incubation: Convocation’s collaboration with internal University stakeholders, particularly the Department of Student Affairs (DSA), has been instrumental in conceptualising and developing a holistic and transformative Student Leadership Incubation programme. This initiative is a testament to our commitment to significantly improving the quality of student leaders produced at CPUT. Bursaries for CPUT students: Convocation collaborated with external stakeholders to source bursaries to fund deserving students in their second year of study and above. Stakeholders, including the Sector Education and Training Authorities (SETAs), and a significant number of entrepreneurs who are CPUT alumni, collaborated with this initiative.

One Residence One Garden: There has been a growing global movement towards sustainable living and mindful consumption in recent years. As we face the challenges of climate change, resource depletion, and food insecurity, it becomes increasingly important to explore innovative solutions that promote self-sufficiency and a closer connection to nature. One such solution lies in establishing food gardens within the CPUT student residences to promote sustainable practices, enhance food security, foster community engagement, and encourage students’ mental health and wellbeing in CPUT residences. Incorporating a food garden into the institutional residences holds immense potential for positive change.

By embracing this initiative, we demonstrate our commitment to sustainability, innovation, and the holistic development of our students and staff.

Convocation Business Breakfast: Convocation hosted a successful Business Breakfast with industry stakeholders, the private and public sectors, and prominent University alumni. The event focused on networking opportunities with university quintuple helix partners and graduates.

Partnerships with sister universities on entrepreneurship development: Convocation established a partnership between CPUT and several universities on entrepreneurship-related initiatives. This partnership aims to facilitate and enhance entrepreneurial research cooperation, and any other area of common interest between the institutions. Establishing a formalised relationship will enable the exchange of best practices, the sharing of educational resources, and the joint development of entrepreneurial research programmes to enhance the quality of education, and provide diverse learning opportunities for students. The institutions will collaborate and facilitate the exchange of expertise, sharing of facilitation skills and methods, and professional development opportunities, to enhance student entrepreneurship and any other areas of common interest.

President of the Convocation Mr L Socikwa

Convocation Report | 29

Section 2: Management/Operations

2.1 Report on the Annual Performance Plan 2023 This report presents an analysis of the Cape Peninsula University of Technology’s (CPUT) performance regarding the targets set in its Annual Performance Plan (APP) for 2023, as submitted to the Department of Higher Education and Training (DHET) in December 2022. 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, submitted in 2019. The approved Mid-term Review of the Enrolment Plan was used to develop the 2023 APP. As a result, compared to previous years, some targets have changed for the remainder of the Enrolment Plan 2023–2025.

30 | CPUT Annual Report 2023

The numbers for 2023, 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 2024. 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. They provide 2023 targets and actuals, with comparative data for 2021 and 2022. The tables also offer a three-year trend analysis of access and success in enrolment planning.

Access Target 2021

Actual 2021

Target 2022

Actual 2022

Target 2023

Actual 2023

Notes

Headcount Totals

37,027

32,429

37,090

33,762

34,968

35,475

A1

First-Time Entering Undergraduates

7,252

7,067

7,695

8,522

8,673

8,883

Key Performance Indicator A. Access

First-Time Entering Occasional

10

12

7

783

1,264

833

1,558

1,210

1,621

Headcount Enrolments Total UG

33,372

30,428

32,918

31,357

31,433

32,707

Headcount Enrolments Total PG

3,562

1,904

4,087

2,279

3,501

2,643

Headcount Enrolments Total OC

93

97

85

126

34

125

Enrolments by Major Field of Study

37,027

32,429

37,090

33,762

34,968

35,475

Science, Engineering, Technology

16,693

14,670

16,748

15,591

16,129

16,879

Business/Management

12,429

10,220

12,466

9,993

11,448

10,090

Education

4,963

4,939

5,132

5,403

4,441

5,446

Other Humanities

2,942

2,599

2,744

2,775

2,950

3,059

367

385

404

402

348

281

% Female Students

54,7%

56,9%

54,4%

58,0%

56,0%

58,8%

% African Students

64,8%

72,2%

64,6%

74,5%

73,52%

77,7%

% Coloured Students

26,1%

22,1%

26,2%

20,6%

20,62%

18,1%

% Indian Students

0,9%

0,6%

0,9%

0,6%

0,63%

0,5%

% White Students

8,2%

4,9%

8,3%

4,2%

4,82%

3,5%

Foundation First-Time Entering UGs

Distance Education Enrolments

A2 A3

A4

A5

Demographic Profile

% Other

0,1%

0,2%

A6

0,2%

Analysis and notes for A1–A6: Access category Based on the data presented in the table, it is evident that there was a 1,5% increase in overall headcount enrolment at CPUT in 2023, at 35,475, compared to a target of 34,968. Although this increase is based on revised enrolment targets, it still shows a significant improvement compared to actual headcount enrolments of previous years, i.e., 32,429 in 2021 and 33,762 in 2022. The primary factor contributing to this shortfall is postgraduate enrolment.

The above data analysis aims to assess CPUT’s performance in terms of access for the 2023 academic year, compared to the targets set in the Enrolment Plan 2023–2025. The APP typically includes targets that allow for widening 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, the overall headcount enrolment target for CPUT was 34,968, and the Institution achieved 101,5% of the target, with an actual headcount enrolment of 35,475. This represents a 5,1% improvement compared to 2022 actuals. Although the comparison is based on a revised enrolment target, the data suggests a significant improvement and increase in actual enrolments over the three years under analysis.

Report on the Annual Performance Plan 2023 | 31

A2: The data indicates that CPUT has surpassed its target for the First-Time Entering Undergraduates sub-category. The target for this sub-category was 8,883, and the Institution exceeded the target by 2,4%

A3: Based on the data, the Foundation First-Time Entering Undergraduates sub-category at CPUT has exceeded its targets during the years under analysis. The data indicates an over-achievement by 34% of the set target for this category of students.

A4: According to the data, the Headcount Enrolments Total UG category has achieved 104% actual headcount against the set target, while the Headcount Enrolments Total PG achievement was only 76% of the set target. The data also shows an achievement of 125 enrolment of occasional students, a modest decrease from the previous year’s total of 126.

A5: In terms of Enrolments by Major Field of Study, within the Science, Engineering, Technology (SET) sub-category, an overall enrolment achievement of 105% was observed, with the Institution enrolling 16,879 against a target of 16,129. This is an improvement compared to previous years. SET Major Field of Study contributes 48% of the overall headcount enrolment, which is consistent with UoT posture of CPUT. The Business/Management sub-category, the second-largest major field of study, contributing 28,4% of the overall headcount enrolment, had an overall enrolment achievement of 88,1%, resulting in an 11,9% shortfall from the set target of 11,448.

The Education sub-category contributes 15,4% of the overall headcount enrolment. In this category, there was an over-achievement of 22,6%, with the Institution enrolling 5,446 against a target of 4,441.

The Other Humanities sub-category met the set target and exceeded the overall enrolment by 3,7%.

Lastly, the Distance Education enrolment was short of meeting its target by 19,2%, with the Institution enrolling just under the set target, at 281 out of 348 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 was an increase in the percentage of African students, from 77,7% enrolled, compared to 73,5% target. This has been a consistent trend over the past three academic years. Conversely, the percentage of Coloured students has slightly declined from a target of 20,6% to 18%, a consistent trend over the past three academic years. Indian students constituted 0,5%, a slight decrease from previous academic years, while White students constituted 3,5%, down from the target of 4,8% of the overall students enrolled. The enrolment of female students increased to 58,8%, compared to a target of 56% for 2023.

Analysis and notes for B1–B7: Success category The table shows that CPUT’s success rate has remained stable over the past three years (2021–2023). However, it is important to note that the Institution has not met its targets in the years under analysis.

Success Key Performance Indicator

Target 2021

Actual 2021

Target 2022

Actual 2022

Target 2023

Actual 2023

Notes

B. Success Graduates UG

7,801

7,584

7,906

7,103

7,706

6,997

B1

UG Degree Credit Success Rate

78,8%

78,90%

78,7%

77,90%

85,0%

78,64%

B2

Graduates PG

1,354

351

1,549

543

1,467

888

B3

PG Degree Credit Success Rate

68,0%

72,90%

67,8%

90,80%

79,0%

77,85%

B4

Overall Degree Credit Success Rate

78,0%

78,7%

77,9%

78,30%

85,0%

78,60%

B5

Science, Engineering, Technology

75,4%

76,7%

75,2%

76,8%

82,0%

77,82%

Business/Management

75,8%

76,0%

75,9%

73,7%

83,0%

73,81%

Education

89,0%

89,9%

88,8%

89,8%

96,0%

88,25%

Other Humanities

81,7%

80,0%

81,5%

81,0%

88,0%

81,05%

1,517

1,135

1,585

1,050

1,692

1,201.92

661

353

667

375

640

363.58

Animal Science

7

2

7

2

6

1

Human Health

579

642

573

624

420

463.83

Teacher Education

905

774

903

878

985

897

Success Rate by Field of Study B6

Undergraduate Output by Scarce Skills Engineering Life and Physical Sciences

32 | CPUT Annual Report 2023

B7

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

B1: The total number of graduates for undergraduate studies was 6,997 graduates, the Institution fell short of its target by only 9,2%.

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 85% for this indicator, but the actual achievement was slightly lower at 78,6%.

B3: The total number of graduates for postgraduate studies was 888 graduates, compared to a target of 1,467 graduates. The actual achievement was 60,5% against the target.

B4: The PG Degree Credit Success Rate in this category achieved an overall performance of 77,6% against the set target of 79%. This indicates a slight decrease compared to the target.

B5: In the Overall Degree Credit Success Rate category, the Institution achieved an overall performance of of 78,7%, which is below the set target of 85%. Both the UG and PG Degree Success Rates were below the set targets.

B6: Based on the performance of its sub-categories, the Success Rate by Field of Study category reports an overall average achievement of 80,2%, compared to an overall target of 87,3%. The category is broken down into four sub-categories: Science, Engineering, Technology, Business/Management, Education, and Other Humanities.

The Science, Engineering, and Technology sub-category achieved a success rate of 77,8%, which is lower than the target of 82%.

On the other hand, the Business/Management sub-category achieved a success rate of 73,8%, which is below the set target of 83%.

The Education sub-category showed the highest achievement, with a success rate of 88,3% against a target of 96%.

Lastly, the Other Humanities sub-category achieved an average success rate of 81,1%, below the set target of 88%.

B7: The data for Undergraduate Output by Scarce Skills was 71% for Engineering, 57% for Life and Physical Sciences, 17% for Animal Sciences, and 91% for Teacher Education. Only the Human Health category showed an achievement of 110%.

Efficiency Target 2021

Actual 2021

Target 2022

Actual 2022

Target 2023

Actual 2023

Notes

867

779

883

820

903

847

C1

FTE Instruction/Research Staff

1,132

1,028

1,153

1,065

1,179

1064,69

C2

% Staff with Doctoral Degrees

33,8%

31,5%

35,8%

33,9%

38,0%

34,50%

C3

% Staff with Master’s Degrees

41,8%

48,9%

40,3%

49,6%

39,0%

50,50%

C4

Number of nGAP Staff

25

19

29

22

33

27

C5

The ratio of FTE Students to FTE I/R Staff

25

24.5

24.5

24.6

23

25.81

C6

Key Performance Indicator C. Efficiency Instruction/Research Professional Staff Headcount of Permanent I/R Staff

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 subcategories: Headcount of Permanent I/R Staff, Percentage of Staff with Doctoral Degrees, Number of New Generation of Academics Programme (nGAP) Staff, and Ratio of Full-Time Equivalent (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 uneven. However, significant improvements have been observed, compared to previous years.

The analysis per sub-category is as follows:

C1: The Headcount of Permanent I/R Staff showed a 6,2% decrease, compared to the target.

C2: The FTE Instruction/Research Staff sub-category showed a 9,7% decrease, compared to the target.

C3: The Percentage of Staff with Doctoral Degrees sub-category showed a 9,2% decrease, compared to the target.

C4: The Percentage of Staff with Master’s Degree sub-category showed a 29,5% increase, compared to the target.

C5: The Number of nGAP Staff sub-categories showed an 18,2% decrease, compared to the target.

C6: The Ratio of FTE Students to FTE I/R Staff sub-category shows that the ratio was 12% above the set target.

Report on the Annual Performance Plan 2023 | 33

Research Target 2021

Actual 2021

Target 2022

Actual 2022

Target 2023

Actual 2023

Notes

Publication Units

401

353

441

341

485

325.74

D1

Publication Units per Permanent I/R Staff

0.46

0.45

0.5

0.42

0.54

0.38

D2

Master’s Graduates

177

203

209

238

225

201

Doctoral Graduates (Unweighted)

25

28

29

49

55

39

Key Performance Indicator D. Research Output

D3

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 Graduates performance.

D1: The achievement for Publication Units was 67,2% against the target.

D2: The data for Publication Units per Permanent I/R Staff was 70,1% against the target.

D3: The data for Master’s Graduates achievement was 89,3%; and unweighted Doctoral Graduate performance 70,9%, respectively, against the set targets.

Chairperson of Council Dr LF Platzky

34 | CPUT Annual Report 2023

Vice-Chancellor Prof NC Nhlapo

Report on the Annual Performance Plan 2023 | 35

2.2 Senate Report

36 | CPUT Annual Report 2023

2.2.1 Learning and Teaching Report This Section reflects on the progress made within the faculties and centres towards achieving the Cape Peninsula University of Technology’s (CPUT) Vision 2030. It emphasises the creation of smart learning environments that are attuned to internal and external needs. It recognises the vital role of the Deans and Directors Forum and the Head of Department (HoD) Forum in fostering active participation. The report also explores the impact of Generative AI on Learning and Teaching.

Smart Learning & Teaching environments CPUT aims to be a leader in smart learning and teaching, and has already made a strategic shift in pedagogical approaches towards a more student-centric model. Continuous policy development, review, amendments, and implementation are crucial to maintaining the standards set by CPUT. Mid-term reviews and performance monitoring allow for regular assessment of progress. In 2023, CPUT identified 13 venues across five campuses to be converted into smart classrooms. CPUT believes that smart classrooms have the potential to offer enhanced learning and teaching, improved student engagement, and access to educational resources. The minimum specifications include interactive tools, smart boards, and a supportive infrastructure. The spaces have flexible layouts and furniture, ergonomic support, and sensory elements to enhance the learning experience.

Smart Learning & Teaching Fundani Centre for Higher Education Development (CHED) Fundani CHED made significant progress in learning and teaching during the 2023 academic year. The year’s achievements were rooted in the realisation of CPUT’s Vision 2030. Several projects were undertaken to develop academic programmes that prepare students for a future that will increasingly be characterised by volatility, uncertainty, complexity, and ambiguity (VUCA). These programmes aim to impart academic knowledge, and foster graduates with technological proficiency, critical thinking skills, resilience, ethical values, and compassion, all aligned with CPUT’s graduate attributes.

The success achieved in these efforts was not a coincidence, but a result of a well-planned strategy. This strategy utilises adaptive learning programmes, and implements collaborative technologies and digital teaching methods.

Another significant achievement was the Language Indaba, an event celebrating linguistic and cultural diversity.

Student development and support In 2023, the Student Learning Unit continued with the development of tutors and teaching assistants (TAs). A total of 271 students were developed as tutors, with the Faculty of Applied Sciences employing the most (105) tutors; the Faculty of Business and Management Sciences had 98 tutors; and the faculties of Education, Informatics and Design, and Health and Wellness Sciences sharing the remaining balance. The teaching assistants’ narrative also aligns with the tutors’, with 112 TAs distributed across the faculties.

First-Year Experience (FYE) CPUT’s First-Year Experience initiative focuses on first-year students, and is designed to help navigate them throughout their first year of study. The programme starts with enrolment, and includes FYE orientation, seminars, the CPUT 101 programme, and the FYE mentoring and Retention Officer (RO) programme.

FYE aligns with the University’s Vision 2030, Smart CPUT, and Oneness, and aims to enhance student success by reducing attrition and dropout rates.

The FYE programme also provides academic and psychosocial support to students, encouraging academic excellence. The hybrid approach consists of online and face-to-face seminars and workshops, catering to students’ preferences. FYE videos, covering various topics, are available on YouTube and the CPUT website. These topics are also available on Blackboard, offering multiple platforms for students to access the content.

Mentors and Retention Officers (ROs) in faculties In 2023, 237 Mentors and 40 ROs were trained to assist firstyear students in transitioning to university life. In addition, the Academic Advising (AA) programme was introduced at CPUT’s Department of Electrical, Electronic and Computer Engineering. It aims to improve existing student support systems, and enhance the student experience. The pilot programme ran from October to December, and received an outstanding student response.

National Science Week (NSW) In 2023, National Science Week was an exciting event that involved students and academics in science and technology. The activities commenced with a Science Roadshow that featured STEM Club students and the Service Learning, and Community Engagement (SL&CE) team. They also visited high schools in the Central Karoo to inspire the next generation of scientists. The highlight of the week was the CPUT Fundani NSW Expo Competition, held on 3 August. A total of 99 entries from various departments were submitted by enthusiastic students eager to showcase their research and projects. The competition was fierce, and after two intense elimination sessions, 30 candidates advanced to the final round to present their projects. The Vice-Chancellor’s STEM Symposium took place on 4 August; and despite the taxi unrest, 39 dedicated students managed to attend. The symposium concluded with the VC, Prof Chris Nhlapo, awarding prizes to the deserving winners of the first CPUT Fundani NSW Expo Competition.

Scholarship of Teaching and Learning (SoTL) Programme The SoTL Programme supports academic staff in their researchbased approach to learning and teaching, providing writing support and specialised retreats like the SoTL Writing Retreat. The TDP extends this support to new academic staff with the TDP Writing Retreat for Portfolio Development. The Academic Leadership Programme was launched on 12 October 2023, aiming to cultivate leadership skills within the academic framework.

CPUT and artificial intelligence (AI) CPUT’s AI guidelines were developed collaboratively, and underwent a thorough vetting process. A task team created a preliminary draft (v0.9), approved by STLC members, and presented to the Senate as v1.0. The guide received feedback, and three workshops were conducted based on its content.

Senate Report | 37

It supported a UNESCO application and a staff member’s National Research Foundation (NRF) Grant application. This iterative process demonstrates CPUT’s commitment to developing comprehensive and responsive guidelines for AI use.

The Academic CoLab This collaborative initiative underlines the importance of collective effort and shared knowledge, with its series of workshops that are encapsulated in the Fundani academic year plan. These workshops covered various topics crucial to curriculum development and pedagogical strategies.

The CO Forum Workshop Series took place from 4 to 8 September 2023. This noteworthy event covers various topics related to the academic curriculum. The workshop covered a comprehensive examination of curriculum concepts and contexts, the integration of pedagogy and digital technology, and the theoretical and practical aspects of Recognition of Prior Learning (RPL).

In 2023, CPUT embarked on significant language development initiatives, which were underpinned by structured planning, collaboration, and external funding efforts.

Language Policy revision Recognising the need for an update, the Language Working Group (LWG) initiated plans to revise CPUT’s Language Policy. With a clear schedule based on previous revision experiences, the group aims to ensure that the Policy remains relevant and reflects the University’s commitment to multilingualism and linguistic inclusivity.

In September 2023, the Senate Language Committee (SLC) identified four language development projects, with two prioritised based on member votes. The LWG decided that all its members would participate in these priority projects, leaving the decision to involve additional SLC members at the discretion of the SLC. The initiatives form part of CPUT’s broader strategy to promote multilingualism, and support isiXhosa as an academic language.

This highlights CPUT’s proactive stance in enhancing linguistic diversity and inclusivity within its academic and administrative spheres.

Externally funded projects and programmes In November 2023, the annual Department of Higher Education and Training (DHET) site visit took place, focusing on discussing the development of 2024–2026 University Capacity Development Programme (UCDP) plans. The first draft of the 2024–2026 UCDP plans was presented during the site visit. Subsequently, the new cycle plan was submitted to DHET for approval. Currently, CPUT is awaiting formal communication from DHET on the outcome of the submission.

Fundani CHED continues to manage and support the following externally funded programmes: • UCDP is a DHET earmark grant initiative within CPUT. Its purpose is to develop the capacity of students and staff through progressive academic programmes, and development of curricula. This effort is dedicated to reshaping learning, teaching, research, and leadership to elevate quality, achieve higher success rates, and ensure social justice throughout the Institution.

38 | CPUT Annual Report 2023

• T he University Capacity Development Grant (UCDG) is a critical part of the State’s funding strategy, designed to bolster ongoing capacity enhancement at universities. It supports realising specific goals within its targeted areas, such as curriculum improvement and academic advancement.

• The New Emerging Scholars Programme (NESP) is designed to aid exceptional postgraduate students with an academic average above 65% in pursuing two-year Master’s degrees, domestically or abroad. The programme includes an internship component to support graduates in taking their initial steps towards an academic career through scholarships and internships.

• The New Generation Academic Programme (nGAP) seeks to recruit outstanding scholars under 40 years of age, with an academic average of 70% or more, for development into future academics. This initiative is part of a collaborative effort with other universities to foster transformation, success, equity, and equality within the academic community. CPUT is currently in the 9th phase of the nGAP Programme.

• The CPUT–UFS Collaborative Grant facilitates collaboration between the University of the Free State and CPUT to enhance the capacity for institutional academic advising, highlighting a commitment to improving student support and academic achievement.

• The University-led Projects Sub-Programme, Unfurling Post School Education and Training (UPSET), engages in nationwide projects to mitigate the transition challenges faced by Technical and Vocational Education and Training (TVET) college students entering university education. Supported by a national collaboration fund, this programme encourages universities to partake in initiatives that support national priorities.

• The Foundation Programme comprises Extended Programmes that are offered across five faculties at CPUT as an alternate access path into the University.

• The Language Implementation Project recently received funding for language implementation at CPUT. • CPUT leads the following collaborative projects: o Designing for Social Justice Project; and o Dual Project.

These initiatives are central to CPUT’s strategic efforts to transform and develop the University, ensuring a nurturing and equitable academic ecosystem.

Learning and teaching through innovative educational technology In 2023, there were 8,032 courses on Blackboard, with 97,271 students and 2,739 instructors. Migration to Ultra courses is ongoing, with completion expected by February 2024. Staff underwent refresher training, with one-on-one consultations and departmental workshops. Students received orientation upon request. Approximately 30 students and 222 staff received training.

2.2.2 Centre for Professional and Personal Development (CPPD)

2.2.3 Smart Research, Technology Innovation, and Partnerships (RTIP)

In 2023, CPPD provided targeted short courses, and engaged with internal stakeholders to encourage participation. New courses were introduced, and the groundwork was laid for proposed offerings in 2024. CPPD aligns course offerings with the evolving educational landscape to meet stakeholders’ development needs.

This Section of the Report overviews research and innovation activities, including productivity, external income, strategic initiatives, and support for postgraduate students. It also covers international partnerships and library achievements.

Some of the achievements and activities undertaken by CPPD during the 2023 academic year include: Benchmarking and collaborations: Based on previous engagements conducted with higher education institutions that CPPD conducted in 2023, the Centre will benchmark specialist short courses on cybersecurity, investigations, and analytics. Institutions like VUT, DUT, TUT, SU, UJ, and UCT will be compared. The goal is to align with the One Smart CPUT vision. Productive talks with Germanybased CBS International Business School resulted in an MoU for short course cooperation.

Risk management: CPPD collaborated with Enterprise Risk Management (ERM) to manage risks in the short course environment.

Best practices were shared with short course-offering entities (SCOEs), who discussed the Risk Register in CPPD management meetings. CPPD also aligned with the South African Renewable Energy and Technology Centre (SARETEC) to enhance the recognition of their Quality Council for Trades & Occupations (QCTO) programmes.

Development of new offerings: CPPD collaborated with faculties and SCOEs to develop new courses. Meetings with stakeholders with low involvement in short courses are expected to yield results in 2024. Noteworthy introductions in 2023 included First Aid Training, American Heart Association Short Courses, and a Leadership Programme. The Faculty of Health and Wellness Sciences will offer Light-Based Therapies, committing to cutting-edge skills in health and wellness fields.

Leadership development: In 2023, CPPD expanded the ETDP SETA-funded Leadership Coaching and Development Programme, with 30 staff members completing the programme. New funding commitments for 2024 were secured by the end of the year, emphasising the dedication to empowering staff with essential skills for personal and professional growth.

Quality assurance: CPPD strengthened collaborations with the Quality Management Directorate (QMD) to enhance quality assurance and management of short course offerings. Initiatives to develop Quality Management Practice Standards for CPPD and the short course environment were initiated in 2023.

Future directions: CPPD is committed to partnering with stakeholders, and refining policies to improve its short courses.

This will enable CPPD to offer relevant and responsive courses, and prioritise the student experience.

Postgraduate studies 2023 2023 marked another year of progress and growth for the Centre for Postgraduate Studies (CPGS). The Strategic Plan for the Centre focuses on nurturing a postgraduate cohort that embodies innovation, critical for the University’s aspiration to become Africa’s leading Smart University of Technology.

The #OneSmartCPGS framework fosters ‘human-centric innovation’ by embracing open innovation and human-centricity. In 2023, CPGS optimised HDC Digital to monitor and track 1,100 postgraduate students’ progress, providing timely interventions and support.

CPGS also held more than 100 workshops, and invested over R1 million in postgraduate capacity development. This investment funded language editing, methodology consultation, and training seminars, showing our commitment to excellence in postgraduate education and research.

Technology transfer and industry linkages In 2023, the Technology Transfer Office (TTO) finalised two nonexclusive licenses for its space subsystems portfolio. It is currently discussing the assignment of the FlowViz patent family with Incipientus, a Swedish spin-off.

An application to the Technology Innovation Agency (TIA) for funding (circa R27 million) to set up a Bambara-based food production plant (commercial factory) proceeded to complete an application and due diligence. The application is under Aonyx Foods, a subsidiary of Aonyx Holdings, which is, in turn, a wholly-owned subsidiary of CPUT. The hope is for the plant to be set up in late 2024 or early 2025. The figure below depicts CPUT’s innovation portfolio.

35 30 25 20 15 10 5 0 L ic

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Figure 1: CPUT’s Commercialisation status as of 31 December 2023

Senate Report | 39

Library CPUT Libraries support Open Science, Open Data mandates, and Open Access publishing movements. However, it should be noted that in 2023, despite budgetary constraints, the Library provided uninterrupted access to information resources and conducive learning environments. In fact, the Council on Higher Education praised CPUT Libraries in its institutional audit report. The Library Director is cochairing a project with the Centre for Research on Evaluation, Science and Technology (CREST) at Stellenbosch University to provide recommendations for revising the DHET Research Outputs Policy (2015) that should consider predatory publication practices.

Research, Technology Innovation, and Partnerships Research Strategy Reflecting on the 2023 academic year, CPUT can be proud of its many achievements, including: Research Excellence Awards 2023 CPUT recognises the exceptional contributions of its researchers with the annual Research Excellence Awards. The awards are given in three categories: Research Output, Postgraduate Supervision, and External Funding; each with Platinum, Gold, Silver, and Bronze awards.

Multiple awards are given in the event of a tie.

Research Excellence in External Funding (2023) Award

Recipient

Platinum

Dr Conrad Sparks

Gold

Faculty/ Research Unit

Funding source

Funding secured

Applied Sciences

Sea Harvest Corporation

R2 002 173

Prof Tandi Matsha

Health and Wellness Sciences

Medical Research Council

R1 710 633

Silver

Dr Kessie Govender

Engineering and the Built Environment

University of the Witwatersrand

R1 610 000

Bronze

Prof Tunde Ojumu

Engineering and the Built Environment

Science and Technology Research Partnership for Sustainable Development

R1 581 789

Bronze

Dr Pamela Welz

Applied Microbial and Health Biotechnology Institute

Stellenbosch University

R1 226 858

Bronze

Prof Senthil Krishnamurthy

Engineering and the Built Environment

South African National Energy Development Institute

R1 134 240

Research development and dissemination (i) Research publications Accredited and approved DHET research outputs for 2023: 2023 Research Outputs to be submitted in May 2024 (Not audited) Output type

Units

Books and chapters

25.3082

Conference proceedings

16.5254

Journal articles

236.8107

Total

278.6443

(ii) Research funding and capacity building

40 | CPUT Annual Report 2023

External funding for the 2023 academic year Post Awards – National Research Foundation (NRF) The table below provides an overview of the 2023 NRF Grant holder-linked awards received, awards released, and expenditures claimed from January to December 2023. The NRF annual audit will be finalised by mid-April.

Faculty/ Research Centres/ Units

Award

Released

Claimed

FAS

R5,801,288.00

R4,819,354.00

R4,125,379.77

FBMS

R285,000.00

R285,000.00

R250,320.91

Education and Social Sciences

R3,911,807.86

R4,167,956.36

R3,244,714.04

FEBE

R2,437,305.00

R2,527,047.80

R2,199,804.89

FHWS

R1,753,835.85

R1,774,233.10

R1,714,450.82

FID

R87,000.00

R87,000.00

R87,000.00

Centre for Innovative Educational Technologies (CIET)

R50,000.00

R50,000.00

R50,000.00

Applied Microbial and Health Biotechnology Institute (AMHBI)

R1,157,665.00

R1,157,665.00

R843,983.73

Research Unit: Centre for Water and Sanitation Research

R2,152,599.27

R2,152,599.00

R1,846,075.49

Research Unit: Professional Education Research Unit (PERI)

R2,213,000.00

R1,813,000.00

R1,685,828.80

Total

R19,849,500.98

R18,833,855.26

R16,047,558.45

Industry/external funding The table below depicts the income received from external/industry funders. These funds are from existing funders and new funders.

The summary is per faculty or unit, from 1 January to 31 December 2023.

Faculty

Funder

FEBE

University of the Witwatersrand

Rheology Centre

PARCEVAL

Amount R1,610,000.00 R2,430.00

FEBE

UWC

R104,347.83

FHWS

MRC

R1,710,633.49

AMBHI

South African Environmental Observation

R29,080.00

FAS

UWC/ PLAAS

R286,515.00

Centre Sports Business and Tech Research

Department of Cultural Affairs

R27,000.00

FAS

University of Dar es Salaam

R458,507.67

FAS

The Oppenheimer Generations Foundation

R34,424.87

FAS

GOAP

R368,144.29

FAS

SANBI and University of Stellenbosch

R208,640.00

AMBHI

WRC

AMBHI

University of Stellenbosch

Research and Innovation

NIHSS

R65,217.39 R1,226,858.61 R240,000.00

FAS

WRC

R295,652.17

FEBE

SANEDI

R1,134,240.00

FAS

SAASTA

R90,941.29

FAS

SAMRC

R188,000.00

FAS

SAMRC

R158,000.00

FAS

WRC

R43,478.26

FAS

Sea Harvest Corporation

Research and Development

WRC

R2,002,173.91 R434,782.60

FEBE

SAASTA

R426,086.95

AMBHI

Africa Uninet

R153,912.30

FEBE

SATREPS

R1,581,789.04

FAS

Oceans Econ - Collaborations

FEd

University of Johannesburg

FHWS

University Support for Doctoral Programme - UP

Total

R225,000.00 R40,000.00 R1,500,000.00 R14,645,855.67

Senate Report | 41

External funding for 2023 Academic Year (Pre-awards) Submissions to external funding 1. Black Academic Advancement Programme (BAAP) – two postdoctoral applications submitted 2. Competitive Support for Rated Researchers (CSRR) – five applications submitted 3. Competitive Support for Unrated Researchers (CSUR) – six applications submitted 4. Foundational Biodiversity Information Programme (FBIP) – one application submitted 5. Knowledge Interchange and Collaboration – 11 applications submitted 6. Non-funding Opportunities (NRF Awards) – five applications submitted 7. Thuthuka PhD Track – two applications submitted 8. Thuthuka Post-PhD Track – eight applications submitted 9. Thuthuka Rating Track – three applications submitted 10. SA-Flanders (FWO) Collaborative Research Projects – one application submitted 11. South African Medical Research Council (SAMRC) – Self-Initiated Research (SIR) Grants Programme – three applications submitted 12. SA-France (PROTEA) Call for Joint Proposals – one application submitted 13. SASUF-NRF Seed Grants for Collaborative Research – three applications submitted 14. Support for Y-rated Researchers – seven applications submitted 15. BRICS – three applications submitted 16. SA/JINR research grants (Concept Notes) – three applications submitted 17. NSTF award nomination – one nomination submitted 18. SA/China (MOST) – Joint Research Programme (JRP) – four applications submitted 19. South African Wine Industry – one application submitted 20. Knowledge Interchange and Collaboration Review Period 2 – nine applications submitted Awards received in 2023 1. Competitive Support for Rated Researchers – three awards received 2. Thuthuka – five awards received 3. SAASTA – one applicant award 4. IRG-Japan Society for the Promotion of Science/ Research Cooperation Programme of the NRF – two awards received

5. Knowledge Interchange and Collaboration Review Period 1 – three awards received 6. SASUF-NRF Seed Grants for Collaborative Research – two awards received 7. Knowledge Interchange and Collaboration Review Period 2 – six awards received 8. Competitive Support for Rated Researchers – four awards received 9. Competitive Support for Unrated Researchers – three awards received 10. Foundational Biodiversity Information Programme (FBIP) – one award received 11. NRF SARChI: Interim Research Chair Renewals – two awards received 12. N on-funding Opportunities (NRF Awards) – one Research Excellence Award for Early Career/ Emerging Researchers received Training workshops Writing retreats 2023 • March, FEBE: attended by 10 researchers, facilitated by Prof Oyekola • May, FHWS: 11 emerging and established researchers, facilitated

by Dr Bester

• May, 32 attendees, including facilitators. Researchers from different

faculties attended the writing retreat. Profs Jordaan and Cronje facilitated two distinct groups.

• July, Prof Cronje facilitated a separate peer-led retreat, attended by 27 staff members. Both took place at the Ongegund Conference Centre, Sir Lowry’s Pass Village.

• July to August, 12 staff members with funds attended the Faculty Writing Retreat at the Houw Hoek Hotel, Grabouw • September, 21 researchers from different faculties who were busy with thesis chapters and papers for publication attended this retreat, facilitated by Prof Jordaan Mentorship for Black Academic Women Mentees completed their academic career trajectories with help from their mentors. A few topics were selected for virtual brown bag sessions: finding a research niche; becoming a journal article reviewer; finding international collaborators; and finding external funding.

First Step Supervision-Supervision Compass Conversations This endeavour focused on conversations about supervision, specifically value-driven, capability-sensitive supervision. The conversation allowed participants to share experiences and perspectives about the research journey. This time, it was spread over sessions from 30 August to 18 September. Seven academics participated in the series. Another session, facilitated by Prof De la Harpe, was held on 17 October 2023.

NRF-rated researchers for 2023

All CPUT NRF-rated researchers per faculty/entity (Total n = 63) in 2023 Title

Initials

Surname

Faculty/Entity

NRF rating

Prof

M

Le Roes-Hill

Applied Microbial Health Biotechnology Institute

C2

Prof

JL

Marnewick

Applied Microbial Health Biotechnology Institute

C1

Dr

T

Mthethwa

Applied Microbial Health Biotechnology Institute

Y2

Dr

AL

Prins

Applied Microbial Health Biotechnology Institute

C2

Dr

L

Van der Westhuizen

Applied Microbial Health Biotechnology Institute

C2

Dr

P

Welz

Applied Microbial Health Biotechnology Institute

C2

Prof

F

Nchu

FAS

C2

Prof

NB

Bathori

FAS

C2

Dr

BS

Chidi

FAS

Y2

Prof

S

Geerts

FAS

Y1

Dr

EL

Ismail

FAS

Y2

Prof

A

Jacobs

FAS

C2

42 | CPUT Annual Report 2023

All CPUT NRF-rated researchers per faculty/entity (Total n = 63) in 2023 continued...

Title

Initials

Surname

Faculty/Entity

NRF rating

Prof

VA

Jideani

FAS

C2

Dr

MO

Jimoh

FAS

Y2

Prof

L

Kambizi

FAS

C3

Prof

CP

Laubscher

FAS

C2

Prof

FB

Lewu

FAS

C3

Prof

MC

Matoetoe

FAS

C2

Prof

AAH

Mohammed

FAS

C2

Dr

N

Ndube-Tsolekile

FAS

Y2

Prof

BO

Opeolu

FAS

C3

Dr

AB

Oyenihi

FAS

Y2

Dr

J

Sagbo

FAS

Y2

Prof

VS

Somerset

FAS

C2

Prof

SEH

Davies

FBMS

C3

Prof

B

Knott

FBMS

Y2

Dr

M

Mutize

FBMS

Y2

Prof

V

Naicker

FBMS

C3

Dr

M

Twum-Darko

FBMS

C3

Dr

SJ

West

FBMS

C3

Dr

F

Waghid

Centre for Innovation Education Technology

Y2

Prof

IJ

Van Zyl

Centre for Postgraduate Studies

C2

Prof

PH

Boer

FEd

Y2

Prof

A

Chigona

FEd

C1

Prof

JL

Condy

FEd

C2

Prof

EN

Ivala

FEd

C2

Prof

C

Livingston

FEd

C3

Prof

ZC

Sosibo

FEd

C3

Prof

Z

Waghid

FEd

Y2

Prof

C

Winberg

FEd

C1

Prof

KM

Aboalez

FEBE

C3

Dr

V

Balyan

FEBE

Y2

Prof

MR

Chowdhury

FEBE

Y2

Prof

VG

Fester

FEBE

C2

Dr

V

Msomi

FEBE

Y2

Prof

B

Ncube

FEBE

C3

Prof

TV

Ojumu

FEBE

C2

Prof

OO

Oyekolo

FEBE

C2

Prof

A

Patnaik

FEBE

C2

Dr

S

Patnaik

FEBE

Y2

Dr

AA

Periola

FEBE

Y2

Prof

P

Clark-Farr

FHWS

C3

Prof

G

Davison

FHWS

C3

Prof

P

Engel-Hills

FHWS

C2

Prof

K

Jooste

FHWS

C2

Prof

TE

Matsha

FHWS

C1

Prof

OO

Oguntibeju

FHWS

C3

Dr

S

Raghubeer

FHWS

Y2

Dr

JOA

Adebayo

FID

C2

Prof

JC

Cronje

FID

C1

Prof

J

Daramola

FID

C3

Prof

T

Iyamu

FID

C2

Prof

LJ

Theo

FID

C3

Senate Report | 43

Postgraduate qualifications Research chairs In 2023, CPUT had four NRF-funded SARChI Research Chairs, three CPUT-funded Research Chairs, and one SETA-funded Research Chair.

Policy development and review The following policies were reviewed and approved during 2023: Research; Appointments of Fellows; Open Access Publishing Fund; and Plagiarism policies.

2.2.4 Strategic Initiatives and Partnerships (SIP) Directorate SIP’s strong participation and collaboration with national and international associations, networks, and consortia enabled a comprehensive approach to creating enabling systems.

The critical beginning of establishing diplomatic collaborations in the Southern African Development Community (SADC) region gained traction to expand existing partnerships and forge new opportunities.

Partnerships overview The outcomes of initiatives such as Internationalisation at Home, curriculum development, and research endeavours underscore CPUT’s commitment to fostering multiple cultural ecosystems, and empowering staff and students to embrace global citizenship.

4%

15% 4%

77%

Africa

BRICS

Global

Erasmus+

Figure 2: New international partnerships developed in 2023

70

COUNTRY

NUMBER

Africa

4

BRICS

1

Global North

21

Erasmus +

9

TOTAL

35

Table 1: International partnerships per country

3% 1% 65

60 50 40 30 20 10 0

University

1

2

Government

Industry

Figure 3: International partnerships categories

44 | CPUT Annual Report 2023

96%

University

Government

Industry

Figure 4: International partnerships with Government and industry

Non-Governmental Organisation

1

Non-Profit Company

1

Private Higher Education Institution University of Technology

2

University

11

Industry

18

Government

21 0

5

10

15

20

25

Figure 5: National partnerships

Internationalisation – Marketing, events, and visits The Internationalisation @Home Forum serves as a platform for staff and students who have travelled internationally for conferences and exchange visits to reflect on and share their intercultural experiences and cross-border learning outcomes. This forum aims to highlight the global competence and intelligence that participants bring back to CPUT, enriching the university community with diverse perspectives and insights. The Forum’s primary focus is to facilitate sharing of key learnings and initiatives acquired during international engagements, strengthen CPUT’s Research Focus Areas, enhance learning and teaching practices, and identify potential areas for collaboration, funding, and grant opportunities.

Forum participants are encouraged to discuss their experiences, insights, and observations, fostering a culture of knowledge exchange and collaboration within the University. The Internationalisation @Home Forum contributes to the continuous development and internationalisation of CPUT’s academic community by providing a platform for reflection and dialogue.

Two Internationalisation @Home Forum sessions were held in 2023, indicating CPUT’s commitment to facilitating ongoing discussions and engagement around international experiences, and their impact on the University’s strategic objectives.

The Internationalisation Forum is a platform for bringing together diverse expertise in higher education globally, utilising virtual and in-person formats. The Forum’s primary objective is to create pathways to new knowledge lenses from various regions, thereby enriching the perspectives of CPUT staff and students. The Internationalisation Forum aims to foster intercultural competencies, and cultivate a global mindset within the CPUT community by facilitating interactions with international experts and practitioners. Participants are encouraged to dialogue, exchange ideas, and explore collaborative opportunities that transcend geographical boundaries.

2.2.5 Community Engagement and Work-Integrated Learning (CE&WIL) Report The Centre is divided into the Cooperative Education Unit and the Service Learning and Civic Engagement Units. The Cooperative Education Unit is responsible for promoting the development of industry partnerships, developing a curriculum for Work-Integrated

Learning (WIL), managing institutional data related to WIL, conducting research on WIL, and overseeing the quality of WIL programmes in the faculties. The Service Learning and Civic Engagement Unit promotes service-learning projects with faculty staff, and manages several civic engagement projects.

Key achievements Cooperative Education Unit Our undergraduate programmes provide WIL opportunities that help students develop their relational skills, gain technological knowledge, and learn ethical standards for the workplace. Additionally, they learn about resilience both in the workplace and in society. In 2023, multiple Science, Technology, Engineering and Mathematics (STEM) projects and a Student Leadership Academy for over 70 students were funded by the University Capacity Development Grant (UCDG) programme.

The Academy aimed to develop graduate attributes through the 17 Sustainable Development Goals (SDGs).

Building industrial linkages to ensure CPUT’s programme content, education and training are relevant • In 2023, all six faculties reported an increase in WIL student placements in industry, indicating improved industry partnerships after the pandemic lockdown period. WIL Coordinators participated in Future World of Work workshops for curricula development.

Prof Lalini Reddy presented a paper at the WACE Conference Proceedings, titled, “Preparing future-proof curricula to boost the economy and contribute to social cohesion: A Western Cape, South African perspective”.

• CPUT partnered with 159 companies to provide workplace-based

learning opportunities to 800 WIL students and graduates through Sector Education and Training Authority (SETA) Learnerships.

Students can utilise the LinkedIn Learning Platform to access work preparedness-related modules on essential topics, such as interview preparation, emotional intelligence, and workplace professional conduct.

• In an institutional Research Workshop on 17 August 2023, Profs

L Reddy and J Garraway facilitated an “Activity Theory in WIL Research” discussion with WIL Coordinators and other interested academics.

• Prof Reddy presented a paper, “Preparing future-proof curricula to

boost the economy and contribute to social cohesion: A Western Cape, South African perspective”, in Canada in 2023.

Senate Report | 45

Service Learning and Community Engagement Units The Service Learning (SL) Unit coordinates SL projects, and assists academics in integrating community service into academic programmes. It also develops partnerships, and provides resources to plan, implement, assess, and evaluate SL projects.

Two papers were presented at the Community Engagement Learning Symposium, hosted by Rhodes University:

Various FHWS service-learning projects took place in 2023:

Malinga (2023). “I am guiding engaged ethical research practices through the lens of university quintuple partnerships”.

• Biomedical Sciences second-year Immunohematology students

signed an MoU to support the South African Bone Marrow Registry; • C ytology 2 students created digital stories on cervical cancer

stories, and uploaded them on the department’s YouTube channel; and first-year ECP students assisted Ikhamva Youth in applying for NSFAS funding; • Emergency Medical Sciences students were offered first aid training

to the Mossel Bay sporting community, and STEM tutoring to Wynberg, Lavender Hill, and Langa High School students; and • Wellness students promoted holistic health in the community, and

some of their projects led to research opportunities and new MoUs with community organisations.

FEBE’s Department of Construction Management and Quantity Surveying staff and students built a library at Balvenie Primary School as a service-learning project. In this multi-disciplinary project, FID will join in 2024 to design furniture and create educational materials.

FBMS first-year students participated in a recycling project under the supervision of Tafadzwa Shara. The project focused on plastic recycling in our communities to sustain the environment for future generations.

Student Leadership Academy (SLA) Civic Engagement’s flagship project is the Student Leadership Academy, where approximately 100 students and Academy alums from across all faculties engage in interdisciplinary project teams to implement a community project in communities. The SLA aims to develop students’ leadership skills for civic engagement projects related to the University’s graduate attributes. It is based on servant leadership and citizenship principles, vital for a healthy society.

The 2nd Chance Matric Rewrite Project This Project gives learners a second chance to improve their results in STEM subjects, and prepares them for higher education. The subjects offered include Mathematics, Mathematical Literacy, Physical Sciences, and Life Sciences. The CE Unit registers approximately 240 learners annually with the Department of Basic Education (DBE) to rewrite the National Senior Certificate at Belvue Primary School in Belhar.

National Science Week CPUT’s National Science Week is led by the Civic Engagement Unit, and is held annually in August. The programme involves a weeklong celebration of STEM with school learners, educators, lecturers, students, researchers, etc. The project is recognised as one of the Vice-Chancellor’s prestigious STEM projects, and was awarded a grant by the National Research Foundation/South African Agency for Science and Technology Advancement (NRF/SAASTA) in 2023.

46 | CPUT Annual Report 2023

• Jacqueline Scheepers, Christopher Lloyd, Stephen Harrison (2023).

“Ethical Imperatives in Community Engagement”.

• Jacqueline Scheepers, Calvin Maseko, Lovetta Bolters, Sandile

As part of the SLA, a Community Engagement International Student Leadership Conference was held on 6 October 2023. Students presented and reflected on their community engagement projects to a national and international university audience.

The Research, Technology Innovation, and Partnerships Virtual Research Incoko #2: 2023 organisers invited Jacqueline Scheepers to present on “NRF Engaged Research Framework, participatory research methods relevant to community engagement and relevant theorists” on 7 September 2023.

Internationalisation and community engagement International partnerships include collaboration with international universities and networks to promote the implementation of SLCE at CPUT. These programmes are implemented virtually, using various online platforms. The units provide access to international and intercultural contexts for students and staff, such as: • U buntu Global Network: A global Ubuntu network – Further

collaboration will be explored in 2024; • HAN University, Netherlands: HAN and CPUT students engage in

community projects; • University of Szczecin, Poland: Service-learning partnership is in

development; • Namibian University of Technology (NUST): An MoU is being updated;

a proposal is in progress; and • University of Flensburg, Germany: An MoU is in place; a proposal

is in progress.

Deutscher Akademischer Austauschdienst (DAAD) SDG Community Engagement project funding was approved for collaboration with Flensburg University, Germany; NUST, Namibia; and CPUT on 21 December 2023.

Hultz Prize student competition planning meetings to establish projects for the 2024 international competition were held on 5 and 7 December 2023. Jacqueline Scheepers was invited to engage with the University of Szczecin, Poland, through Dr Małorzata Zakrzewska, Uniwersytet Szczecinski, Poland. The SLCE Units intend to strengthen their ties with the Uniwersytet Szczecinski, and develop a space where servicelearning and civic engagement students and university staff can exchange ideas and knowledge.

2.2.6 Faculty Performance Overview

Objective 2.3: Student readiness for the world of work

Though the Senate Report, comprising highlights in Learning and Teaching, and Research, Technology Innovation, and Partnerships, is submitted as a separate report, the six faculties within Cape Peninsula University of Technology (CPUT) provide, in this Section, an overview of their performance against CPUT’s Vision 2030 (V2030), research output and the quality of their learning and teaching.

Work-integrated learning (WIL) In academic year 2023 (AY 2023), students were placed in industries to prepare for their careers, with coordinators ensuring adequate preparation and monitoring. However, finding placements for some departments and funding WIL stipends proved challenging, despite securing funding from the Sector Education and Training Authority (SETA).

Faculty of Business and Management Sciences (FBMS) For the Annual Report, FBMS reports on its responsiveness to Focus Area 2 and Focus Area 7 of CPUT’s Vision 2030.

Focus Area 2 Objective 2.1: Develop programmes that will prepare students for the future FBMS has completed all Higher Education Qualifications SubFramework (HEQSF) qualifications for progression from diploma to doctoral studies. The curriculum renewal was approached holistically, and included the following activities for all respective programmes of study: • FBMS regularly reviews our curriculum to align subject content

with industry and research norms. We work with experts to track future trends and ensure our offerings meet the needs of the changing job market. Our subject guides reflect the inclusion of 21st-century skills essential for student success in the workforce.

• FBMS has two levels of graduate attributes (GAs) – the professional level, and the CPUT GA. The 'Knowing' attribute is essential for students to develop a professional persona. ‘Knowing’ and ‘Being’ depend on each other to create the necessary skills and qualities.

• Lesson planning is crucial for hybrid teaching, to ensure that interactive lessons incorporate learning activities.

• Programme guides were reviewed and updated to reflect lesson plans, 21st-century skills, and graduate attributes for all programmes.

It is important to note that the short-term focus was to set the tone and the groundwork for continual revision of the curriculum, and all its accompanying components, for holistic student development.

Objective 2.2: Review and adjust teaching methodologies and delivery modes in line with CPUT’s graduate attributes To achieve Objective 2.2, FBMS increased service-learning and community engagement (SL and CE) projects, including workshops on Universal Design for Learning by educational disability specialists, and applied undergraduate research skills as high-impact pedagogy.

Service-learning and community engagement projects In 2023, practice-based teaching methods with GAs and Sustainable Development Goals (SDGs) were added to the curriculum. A showcase of SL and CE projects was held, providing authentic learning opportunities for students. The projects enabled students to learn about relational capability, engage ethically with communities, use technology, and apply academic knowledge to provide solutions.

Co-curricula projects In AY 2023, FBMS embarked on collaborative projects with external partners to prepare students for the world of work. As part of the FBMS Final Year Experience, the Faculty collaborated with Old Mutual to facilitate a MoneyWise project, where an Old Mutual consultant presented sessions on myriad aspects of financial literacy, ranging from current student financial literacy practices, to future thinking practices for life-long learning.

Similarly, FBMS collaborated with the Small Enterprise Development Agency (SEDA) to facilitate sessions on thinking differently about employment possibilities, i.e., considering the possibility of being self-employed, generating an income by applying knowledge and skills learnt at CPUT, and not being reliant on finding employment as the only means of earning an income post-graduation. The Entrepreneurship Series saw successful entrepreneurs sharing their stories of starting and sustaining a business.

Focus Area 7 Objective 7.1: 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 Focus on first-year students FBMS offers an efficient first-year programme, with orientation, document submission, and student support through Teaching Assistants, Tutors, Mentors, and Retention Officers. The facultylevel orientation includes CPUT support units, alums, and guest speakers. Orientation is staggered across Term 1 and beyond to avoid information overload. A department-specific student guide helps students navigate their first year at the University.

Objective 7.2: 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 innovative technologies For Objective 7.2, student support and student-centred learning are prioritised. We monitor attendance, promote inclusive engagement, and provide academic and co-curricular assistance. We hold regular meetings with student representatives, the Dean, and Heads of Department (HoDs). FBMS values student–staff engagement to provide adequate support. FBMS has equipped venues with data view projectors, arranged plug points in venues and pause areas, and ensured software alignment with subject and industry requirements since AY 2022.

Objective 7.3: Support a dynamic student community by providing quality learning, social environments, and experiences

Senate Report | 47

Objective 7.4: Facilitate opportunities for students that will provide them with leadership development opportunities, and provide international exposure through intelligent technologies, work-based learning and community outreach programmes – developing caring and socially responsible citizens Objectives 7.3 and 7.4 represent a holistic student learning experience, including staff development, student initiatives, and co-curricular activities. One such activity is the Faculty–District Six Museum partnership. The CPUT District Six Campus is built on land that previously housed District Six residents. Students attend information sessions and walking tours to learn about the forced removal of District Six residents due to apartheid policies.

Provision of Recognition of Prior Learning (RPL) Providing alternate access besides the formal application route is essential to widening access, and fosters the spirit of true studentcentredness. FBMS has the most significant number of RPL applications and approvals at CPUT. As such, the Faculty has a formal structure, i.e., an RPL Committee, with RPL representatives who administer and manage RPL processes in each department.

Faculty of Education (FEd) The Faculty of Education is proud of its progress in pursuing excellence in learning and teaching under the theme "Creating Futures". We explore emerging trends and innovative practices to lead new strategies and enhance our students' learning experiences.

One of the many things the Faculty has accomplished is having staff members participate in the Teaching Advancements at University (TAU) fellowship. This fellowship involves academics from public higher education institutions across the country working together on various projects and activities. Our staff members are currently engaged in projects that aim to enhance the learning and teaching environment by promoting social justice, and addressing the inequalities inherited from the past.

The Faculty acknowledges the crucial role of language in education, and has established a Language Unit to support it. The Unit is currently working on a multilingual glossary project, aimed at helping students access disciplinary knowledge in their native languages. To achieve this goal, the Unit provides multilingual classroom resources, including student guides, PowerPoint presentations, and audio-visual content.

Students are responsible for checking the accessibility of the register being used. Meanwhile, FEd is responsible for creating and maintaining a productive learning environment. At the beginning of the academic year, students are provided with a comprehensive year plan that includes important dates, such as tests, assignment submissions, weekly topics, practical activities, and external course requirements.

Through this initiative, students can plan their academic journey, which creates a safe and effective learning environment.

Faculty of Engineering and the Built Environment (FEBE) The Faculty's Vision 2030 aligns with the Institution's #OneSmartCPUT Vision 2030, focusing on smart student engagement. According to this strategy, FEBE aims to develop graduates with employable, innovative, greener, diverse, and inclusive skills. The Faculty supports the Institution’s values, including gender- and employment equity.

48 | CPUT Annual Report 2023

FEBE has aligned its qualification mix to the Higher Education Qualification Sub-Framework (HEQSF). The Faculty has 56% ungraduated programmes, consisting of nine 280- and 360-credit diplomas; twelve 120- and 140-credit advanced diplomas; and seven 360- and 420-credit degrees. It has 44% postgraduate qualifications, consisting of eight honours degrees and postgraduate diplomas, 10 master’s degrees, and four doctoral degrees. The Faculty has the DHET-funded Extended Curriculum Programme (ECP) for all eight entry-level qualifications, to broaden access to higher education in engineering and applied disciplines. Sixty per cent of its qualifications are accredited by statutory professional councils, ensuring that our qualifications are nationally and internationally benchmarked.

In 2023, FEBE exceeded its total enrolment target of 103%. This is primarily attributed to the more significant number of returning students (124%) for the on-campus experience. Its FTEN enrolment reached 98,5%. The greatest challenge was meeting the postgraduate enrolment targets. Whilst the doctoral and master’s programmes reached 97% and 69%, respectively, the PG diplomas and honours qualification only reached 33%. This was mainly due to the delayed approvals of the Level 8 qualifications by the Council on Higher Education (CHE) and the South African Qualifications Authority (SAQA).

With the introduction of Level 8 qualifications, the previous progression route from BTech to MEng has been stopped, impacting the MEng registration. This impact will continue into the 2024 academic year, until the Level 8 qualification enrolment reaches its targets and produces sufficient graduates to progress into the higher qualifications.

Notwithstanding the student disruptions to AY 2023, FEBE has seen an increase in average success rate in its various undergraduate qualifications. The Faculty graduated 1,165 undergraduate and 89 postgraduate students in 2023.

The demographics show that the number of female students in the Faculty has grown from 27% in 2015, to 35% in 2022. Whilst the Faculty has a staff-to-student ratio of 1:38, the staff-to-FTE (FullTime Equivalent) ratio is much lower at 1:20. This implies that many students are not enrolled for a full academic load. This generally arises from students not passing prerequisite subjects required for student progression, resulting in fewer subjects the student can enrol for. The ECP also contributes to the low FTE load, since the full academic load is spread over four years of study.

FEBE is actively involved in various research and technology development activities across multiple disciplines. Currently, the Faculty hosts two research institutes, nine research centres, two DSI–TIA Technology Stations, and a National Skills Centre. Its two flagship innovation, product and skills development programmes are in satellite engineering and renewable energy. Through its African Space Innovation Centre (ASIC), the Faculty successfully developed, launched and operates the ZACube-1 and ZACube-2 satellite missions, and in 2022, launched the MDASat-1 constellation. ASIC is expanding its fourth satellite mission, M2MSat, which will be launched in the third term of 2024.

The South African Renewable Energy Technology Centre (SARETEC) is the first national renewable energy technology centre in South Africa, established through the National Skills Fund.

As a National Centre, SARETEC endeavours to make locally developed technologies more accessible to the renewable energy (RE) industry through specialised industry-related research and accredited training for the entire RE spectrum. These flagship programmes have attracted external funding of over R350 million for the next four years.

There are currently 12 NRF-rated researchers in the Faculty, and many received NRF Research Awards in various categories in 2023.

It also hosted its first internal Research Awards event to celebrate and encourage research excellence. Five staff members obtained their doctoral degrees, and three obtained their master’s degrees in 2023. Remaining in the energy sector and aligning with Sustainable Development Goals and the 2030 National Development Plan, FEBE was successfully awarded a grant for three ESKOM Research Chairs for five years, valued at R18 million. To meet the challenges of attracting scarce skills to fill various vacant academic positions, the Faculty successfully secured a staff development grant from the Mining Qualification Authority (MQA) to the value of R15 million for three years. Through this grant, six promising postgraduate students were appointed into a programme that will develop these students for an academic career.

Current space constraints (lecture venues, laboratory, and office space); recruitment of suitably qualified, experienced, and professionally registered academic staff; and the reduction in UCDG and ECP funding grants will continue to impact the delivery of the various qualifications offered. Since the core function of the Faculty is curriculum development, delivery, and enhancement, FEBE developed a strategic plan for short- to medium-term learning, teaching, and assessment (LTA) with mitigating measures to address some of these challenges.

Faculty of Health and Wellness Sciences (FHWS) The Faculty of Health and Wellness Sciences has confirmed our commitment to promoting excellence in learning and teaching; research and innovation; as well as expansion of our community and service learning projects.

1. Learning & Teaching (L&T) FHWS strives to promote cutting-edge technology in smartuniversity teaching and learning by using high-technology equipment during training, while adhering to high-quality assurance practices, and providing excellent and relevant content inside and outside of the Cape Peninsula University of Technology’s (CPUT) lecture venues.

This report highlights the performance in learning and teaching for FHWS in 2023 against CPUT’s Vision 2030 and faculty strategic plans in teaching and learning quality and student experience to align with the University's strategic objectives. The Learning and Teaching Office set targets for completing the academic year successfully, and all targets were met by the end of 2023.

Prioritising Learning, Teaching and Assessment (LTA) in the academic project The Faculty has identified some challenges related to LTA that need to be addressed after reflecting on the 2022 academic year (AY).

The focus of AY 2023 was on ensuring secure online assessments, while applying the fundamental rules and procedures of the LTA Policy. To achieve this, the Faculty adopted a hybrid/blended learning approach. For online assessments, students wrote their

exams in the IT Centre or on-campus. Lecturers invigilated the process to provide added support to any student who faced challenges. Some concerns around the basic principles of LTA within the Faculty remain, such as the number and weighting of assessments. To address this, a back-to-basics programme was developed in the FHWS LTA Office, through the Faculty LTA Committee, to be implemented in every department. The main aim of this strategy was to implement the principles of the CPUT LTA Policy of 2021, and to align L&T practices to this Policy. One of the key areas identified for improvement was assessment. To this end, the Faculty LTA Committee developed an Assessment Guideline for FHWS, currently in draft form.

Evaluating student success measures In 2023, FTLC started monitoring student success measures more closely to understand their impact, and reflect on the progress and interventions made in the academic year. Success measures such as pass rates, throughput rates, drop-out rates, etc., are monitored and reported on at the Faculty’s annual performance review. Beyond reporting, this data is essential to track progress in these areas. This tracking and monitoring exercise is ongoing, and in 2023 it was noted that more capacity building was needed in this area. To this end, Executive Management has assisted in driving training of HEMIS and PowerBI within all faculties at CPUT. Welcoming of first-year students and student support In 2023, FHWS held a successful first-year orientation programme.

Despite facing budget cuts, the Dean has allocated budget to each department for orientation activities. Fundani, an active participant, assisted the Faculty in making student appointments through UCDG to ensure that students are appointed as quickly as possible, and can begin employment in their respective roles. The Faculty provided all relevant information regarding student appointments, and First Year Experience (FYE) videos in preparation for the FYE programme.

Communication to students and engagement strategies The Faculty prioritised its communication to students, using various platforms such as email, WhatsApp, BlackBoard, Newsflash, Padlet, etc. The student quality desk was also established to highlight students’ voices, where concerns raised by students are brought to the Faculty Quality Forum. Student representatives are invited to Faculty Board meetings, and are also represented at advisory committees and appeals committees of faculty. Furthermore, student representatives’ views are presented through the LTA representatives who are members of the Faculty LTA Committee.

Achievements in Learning & Teaching FHWS hosted its Annual Faculty Teaching Excellence Awards on 27 January 2023, to recognise awards for 2022. For 2023, two recipients received Departmental Teaching Excellence Awards.

The Matric Life Science tutoring project continued, and has expanded to three departments within the Faculty. The Academic Enhancement Questionnaire was completed, with a large uptake from most departments, compared to previous years.

A mentoring programme was implemented with the NGO, IkamvaYouth, for service learning on life and academic skills.

Biomed students volunteer over weekends to mentor high school learners from various schools on the Cape Flats. While transport is funded by CE and WIL, no funds are available for food parcels for the students who volunteer.

Senate Report | 49

2. FHWS projects (Community and service learning) Service-learning and community engagement initiatives in the Faculty reflect a comprehensive approach to stakeholder engagement, aligning with the University's strategic goals of promoting health and well-being, advancing educational equity, fostering inclusivity and diversity, and addressing societal needs through collaborative partnerships. The table below lists all projects registered with the central Centre for Community Engagement and Work-integrated Learning during AY 2023. The strategic foci of most of these projects range from fostering sustainable partnerships and holistic community development, to enhancing stakeholder well-being through accessible health care services. In alignment with V2030, of smart engagement with quintuple helix partners, and particularly the environment, the Campus Cats project addresses community issues related to animal welfare, promoting social responsibility and environmental stewardship.

No

Department

Community partner/ Student group

1.

Biomedical Sciences

South African Bone Marrow Registry

Bone marrow recruitment drive, 1 September 2023, Bellville Campus

2.

Immunology 1 and Cell Biology 1 online home language videos

First-year ECP students will produce educational videos (based on subject content) in their home languages, excluding English. The best videos will be selected for publication on the departmental YouTube channel.

3.

Digital stories from Cytology 2 students

Second-year students will create cervical cancer awareness educational videos/digital stories in any language, other than English.

The best videos will be selected for publication on the departmental YouTube channel.

4.

IkamvaYouth and first-year ECP students

First-year ECP students mentoring matric students attending IkamvaYouth in Nyanga

Campus Cats: Aid4Paws

Interact with Aid4Paws and gain insight into community feral cat issues, and suggest practical solutions that can improve cats’ lives; on-campus project

6.

Jazz on the Rocks (23–27 February 2023) Moss Jazz

Teaching high school learners and festival-goers basic adult, paediatric CPR, basic first aid skills, as well as manoeuvres to help adults and paediatrics who are choking. Fire and water safety, and a career guidance talk with learners from Weston Technical High School.

7.

Life Science Revision Project, Wynberg, Lavender Hill, and Langa high schools

Supporting the STEMI vision and providing socio-economic disadvantaged learners with an opportunity to qualify and apply for science programmes at tertiary level. Learners from six FHWS departments will be participating.

8.

VMS Dental Sedation Clinic

Sedation Clinic, 6 April 2023, Major Sports Hall, Bellville Campus

5.

Emergency Medical Sciences

Project summary

9.

Medical Imaging and Therapeutic Sciences

Third-year groups and various community partners

Home of Hope; Raising Hope SA. New Life Centre (Angels Safe House); The Umtshayelo Foundation (Tech 2 U Digital Skills Programme); Risen Hope; Badisa Trio (Season of Giving) Centre of Hope U Turn; Durbanville Children’s Home

10.

Ophthalmic Sciences

Eye screening, Bishop Lavis, Elsies River, and DuNoon

Providing free health screenings to residents. The department trialled the departmental eye clinic during Eyecare Awareness Month in September 2023, conducting screenings and providing spectacles to CPUT student beneficiaries during this period.

11.

Wellness Sciences

Queen for a Day, Lentegeur Hospital

The collaboration of students and Lentegeur Psychiatric Hospital is aimed at promoting holistic healthy living

12.

Nursing Science

Lotus River Essential Needs Drive

An initiative of 2023 ECP 0 Nursing students at the Lotus River Old Age Home. Adult disposable nappies were donated, and the department is collecting soaps.

13.

Dental Assisting

Oral hygiene

Providing oral hygiene to primary school learners; three daycare centres visited

3. Research Report The Faculty of Health and Wellness Sciences aims to develop the research capacity of a future generation of researchers/scholars, and innovators, placing CPUT at the forefront of innovation in its broadest sense. To achieve this, stimulating continued growth in research will support the development of new knowledge, and expand opportunities for staff and students. This is key to realising our goals of becoming a leading university of technology by creating a smart learning environment within Health and Wellness Sciences. A rich variety of research is conducted within the Faculty, in response to the disciplinary and societal contexts of the Western Cape, South Africa, the African continent, and the world at large. Research topics relate to health and well-being, and to the higher education environment.

50 | CPUT Annual Report 2023

Research highlights to note in 2023: • One new NRF Y2 rating;

•T he CPUT-FHWS-Research Ethics Committee was

• Six C-rated researchers; • Recognised research centre; South African Medical Research

Council (SAMRC) extramural unit is the Cardiometabolic Health Research Unit;

re-registered with the National Health Research Ethics Council following an audit in 2022; and • Prof Penelope Engel-Hills was appointed Chair of the

National Health Research Ethics Council for a five-year term

Establishing relevant partners internally, nationally, and internationally is important for the Faculty, and this is evident in most of the departments. The table below provides a summary of the national and international transdisciplinary partnerships engaged in during 2023.

Title

Expected outcomes

CPUT faculties involved

External partners

Rooibos and Heart Health

Publications, M&D students, Conferences

Faculty of Health and Wellness Sciences (FHWS), Faculty of Applied Sciences, Applied Microbial and Health Biotechnology Institute (AMHBI)

Stellenbosch University; University of Vienna

Neuropsychological Sequelae and Subjective Experiences in COVID-19 Survivors: A Mixedmethods Research Proposal

Publications, M&D students, Conferences

FHWS & AMHBI

University of Cape Town

“Street science” for challenging norms and practices

Publications, Conferences, Curriculum interventions

FHWS & Professional Education Research Institute (PERI)

University West, Sweden; Karlstad University

WIL across programmes and institutions in South Africa, Ireland and Portugal

Publications, Conferences, Curriculum interventions

PERI

NRF grant (end 2021) Support HIV Self-Management Among Youth Living in Rural Areas in SA

Intervention project and publications

Nursing Science, Community and Health Sciences

Self-leadership rural area and youth health status; Ethical clearance; 2018–2022 UWC

Publications

A contextually relevant researchtraining programme for nurse educators – towards selfleadership

Publications, Capacity development, Presentations

FHWS researchers

Unisa

COVID-19 study

Publications

SAMRC/CPUT Cardiometabolic Health Research Unit

Prof Peter Nyasulu; Prof Annalise Zemlin

Eye study

Publications

SAMRC/CPUT Cardiometabolic Health Research Unit

Prof Andre Kengne

Microplastics and human health

Identify impact of micro-plastics on cellular health in in vitro models

SAMRC/CPUT Cardiometabolic Health Research Unit, Centre for Sustainable Oceans

None

NRF Grant (2021 ongoing) Support HIV Self-Management Among Youth Living in Rural Areas in SA

Articles and an intervention programme

Research Unit, FHWS

Stellenbosch University; University of Missouri; University of KwaZulu-Natal

Internationalisation in the Curriculum

Conference, Publications, Curriculum interventions

Professional Education Research Institute

Mangosuthu University of Technology; Karlstad University

Vascular disease in HIV patients on HAART

Publications, M&D students, Conferences

FHWS

Exeter University

Stellenbosch University; University of Missouri; University of KwaZulu-Natal University of the Western Cape; University of Missouri

The Faculty graduated five master’s and two doctoral students during the Autumn and Summer graduations of 2023. It uploaded more than 100 research outputs for 2023 onto the Converis system to submit to the Department of Higher Education and Training (DHET) for review.

This is a significant improvement, and we will continue to grow our research profile.

Senate Report | 51

4. Staff appointments The Faculty made several academic appointments in 2023. These include two Senior lecturer appointments – one specifically to drive the transdisciplinary research agenda of the Faculty; and the other in the Department of Nursing Science. Furthermore, four Lecturer appointments were made – two in the Department of Nursing Science; one in the Department of Emergency Medical Sciences; and one in the Department of Medical Imaging & Therapeutic Sciences. Non-academic appointments include a Laboratory Assistant in the Department of Dental Sciences; a Clinical Instructor in the Department of Emergency Medical Sciences; and a Clinical Mentor in the Department of Nursing Science.

Faculty of Informatics and Design (FID) The Faculty of Informatics and Design is committed to supporting the University's Vision 2030, and aligning the strategic goals of both. As part of this commitment, the Faculty has introduced a new focus area called Focus Area 0, which aims to foster efficiencies in delivering academic leadership, management, and administration.

By introducing this focus area, FID has reduced staffing overflow through match and place, instead of advertising to fill some vacant positions, improving financial efficiency. Additionally, the Faculty has tried to address the skills gap and equity challenges by considering appointing equity candidates with the right qualifications for most vacant positions.

The strategies derived from this focus area contributed vastly to improving rules of student recruitment, by providing access to some qualifications that presented gate-keeping traits for talented students from historically disadvantaged schooling backgrounds with limited resources. This has contributed to the diversity of the student population for such qualifications, further contributing to improving the first-time enrolment numbers across all qualifications.

The appointment of academic staff with appropriate qualifications, and collaboration with various divisions, such as the Quality Management Directorate, Fundani, the Planning Unit, and industry partners, have played a crucial role in improving the quality of academic projects. This includes redesigning curricula, introducing new programmes, accreditation, and programme reviews.

FID had a handful of new undergraduate and postgraduate accreditations from different qualification approval bodies. This was also justified by the professional body approval and full certification of two programmes. Academics and students obtained national and international awards for different capstone projects, demonstrating students’ and staff's creativity, innovation, intrapreneurial and leadership skills. This engagement improved students’ experience and exposure to the industry needs.

The Faculty has fully embraced innovative Learning and Teaching by using different technological platforms for learning, teaching, and research, such as Blackboard Collaborate, LinkedIn Learning, Teams Chat, and HDC Digital. The quality of research, community engagement, learning, and teaching was recognised through the number of institutional awards awarded by the academic staff. This is supporting the university strategy on internationalisation and

52 | CPUT Annual Report 2023

partnerships through collaborations with several institutions such as MIT, Porto Politec, Smithsonian Museum of African Art in Washington DC, France EFREI, TVET colleges, University of Johannesburg, and Hastin University, to name a few. These collaborations have longstanding partnerships, providing financial assistance for staff and student exchange. Staff qualifications have improved by more than 65% in terms of staff acquiring postgraduate qualifications. The Faculty championed several projects supporting CPUT’s Vision 2030, such as STEAM, CISCO, Huawei, CET, and the CPUT Live Radio project. In addressing the oneness and smartness of the University mandate, FID staff and students participate in events such as Heritage Day, Mandela Day, and Women's Day. These events are organised to unleash the students’ and staff's creativity and entrepreneurial skills.

The Faculty of Informatics and Design has made significant progress in increasing the number of graduate students, particularly those pursuing postgraduate studies, such as master's and doctoral degrees. This improvement has been made possible by the joint efforts of the Faculty and the Research Directorate, that has initiated a postgraduate support programme. The FID Research Office led the implementation of this programme, which has proved to be instrumental in boosting postgraduate completion rates.

Faculty of Applied Sciences (FAS) Faculty profile: Students In 2023, the Faculty of Applied Sciences had a student headcount of 3,769 against a target of 3,888, translating to 97% of the planned enrolment. A contributing factor to the shortfall was that many postgraduate diploma qualifications received final approvals very late in 2022, resulting in less advertisement and student uptake in the 2023 academic year. In that regard, the shortfall in the planned headcount for postgraduate diplomas was 35%. The situation is on course to improve considerably for 2024.

Of the total FAS student headcount in 2023, 93% was in undergraduate diploma and degree qualifications, 2% in postgraduate diplomas, 4% in master’s degrees, and 1% was enrolled for doctoral qualifications.

Undergraduate PG less master's Master's Doctoral 2%

4%

1%

93%

Figure 6: Qualification levels of students enrolled in FAS in 2023

Regarding demographics, 61% of the students were female and 39% male. Most of the students were African (89%), 8,2% were Coloured, and the other population groups made up about 2% collectively. All the students were from the African continent, with about 98% being South African, and 2% from other African countries, primarily in the SADC region.

97,8%

100% 90%

% OF HEADCOUNT

80% 70% 60% 50% 40% 30% 20% 10% 0%

1,7%

0,5%

Other SADC

Other African

0,0%

South African

Outside Africa

NATIONALITY

100% 90%

89,3%

% OF HEADCOUNT

80% 70% 60% 50% 40% 30% 20% 8,2%

10% 0% African

Coloured

0,3%

0,2%

2%

Indian

Other

White

POPULATION GROUP

39 %

Male

61%

Female

Figure 7: Demographics of students in the Faculty of Applied Sciences in 2023

Senate Report | 53

Faculty profile: Staff In 2023, FAS had 181 staff, two-thirds of whom were academics. Most academics (57%) had doctoral qualifications, with a negligible percentage having less than a master's qualification. Generally, these are staff from the legacy Technikon institutions who did not improve their qualifications, and are close to retirement.

Academic 60% % OF ACADEMIC STAFF HEADCOUNT

Administrative support Service Technical

15%

6% 14% 66%

50% 40% 30% 20% 10% 0% Doctoral

Master's

PG less master's

Undergraduate

HIGHEST QUALIFICATION

Figure 8: The professional and qualification profile of FAS staff in 2023

Regarding demographics, the Faculty had slightly more female staff (51%) than male (49%) staff. About 90% of staff were South African, with the majority being African.

Total Female Male

Technical Service Administration Support Academic

0%

20%

40%

60%

80%

100%

Non South African South African

Figure 9: Demographic profile of FAS staff in 2023

Learning & Teaching During 2023, the Faculty of Applied Sciences made tangible strides towards the V2030 goals in all seven focus areas of the decadal plan. Some of the progress is highlighted below. In terms of developing a Programme Qualifications Mix (PQM) that is aligned with the HEQSF, CPUT’s V2030, and responsive to regional and national needs, the Faculty completed the HEQSF-alignment project. In 2023, the last remaining postgraduate diplomas for HEQSF alignment were implemented, culminating in the Faculty offering 49 HEQSF-aligned qualifications. These include the full suite of qualifications from diploma level to doctoral level in the following processes of study: Agriculture, Analytical Chemistry, Environmental Health, Environmental Management, Food Science and Technology, Horticulture, and Nature Conservation. In addition, HEQSF-aligned qualifications up to the master’s level were offered in Consumer Science (Food and Nutrition).

Apart from the HEQSF-alignment project, the Faculty also developed new qualifications, and was awaiting approval from CHE/SAQA for the following qualifications: Doctor of Marine Science, Master of Biotechnology, and Postgraduate Diploma in Mathematical Sciences.

54 | CPUT Annual Report 2023

Success rates for existing FAS qualifications continued to rise, with Full-Time Equivalent (FTE) pass rates reaching almost 86% in 2023, up from 82% in 2022. Numerous activities that contributed to improved pass rates were implemented, including the Extended Curriculum Programme, UCDG-funded student academic support initiatives, staff training and development, and adherence to quality assurance principles and processes.

In line with the Faculty’s and Institution’s ethos of harnessing industry partnerships to prepare work-ready graduates, all students eligible for work-integrated learning placements in 2023 were placed, and all programmes had active industry-led advisory committees.

Some of the industry partnerships that stood out included those between the Mathematical Sciences Programme and Pepkor (for the Pepkor Graduate Internship Programme), MTN (for the Women in Science: Next Gen STEM Programme), and those between the Nature Conservation Programme and SANParks, CapeNature and the City of Cape Town.

Partnerships with other Universities locally and internationally continued in 2023. Notable activities included hosting exchange students from the FH Münster University of Applied Science in Germany, and Paris-East Créteil University (UPEC) in France. The Faculty also co-hosted an International Conference on Science for Impact in Africa, jointly with the following Universities: the Wageningen University in the Netherlands; the Université du Sine Saloum El-Hâdj Ibrahima NIASS (USSEIN) in Senegal; the Weihenstephan-Triesdorf University of Applied Sciences (HSWT) in Germany; Université de Gabès (UG) in Tunisia; and Wollo University (WU) in Ethiopia. These partnerships contributed to the Institution’s Smart Internationalisation goals, further enhanced by the Faculty’s launch of a Collaborative Online International Learning (COIL) project with the Universidad Nacional de Cuyo, Argentina.

Research and innovation In contributing to the Institution’s Smart RTIP (Research, Technology Innovation, and Partnerships) goals, FAS made significant contributions in 2023. This included the graduation of 49 postgraduate students, comprising 10 postgraduate diplomas, 33 master’s, and six doctoral graduates. In addition, the audited research output for 2022 (published in 2023) showed that the Faculty produced 92.42 research publication units. This was the highest output by any faculty, and it continued the trend in the recent past, with research output steadily increasing. The Faculty also had the highest number of NRF-rated researchers: 17 academic staff (14 being C-rated, and three Y-rated), and two Postdoctoral Fellows (both Y-rated).

Community engagement FAS made significant contributions to the University’s smart engagement goals and strong links with quintuple helix partners.

Apart from collaborating with industry partners for WIL students' placement and involvement in advisory committees, the Faculty ran five service learning projects, in which structured learning and impactful community service were coupled. One such project involved students conducting microbial and sensory analysis of pickled Spanish mussels for Weskusmandjie, a cooperative of subsistence fisherwomen from St Helena Bay on the West Coast.

This project involved students from four programmes of study: Food Science and Technology, Biotechnology, Consumer Science (Food and Nutrition), and Environmental Health, who all used the service as part of their curriculum.

In addition, FAS donated aquaponics infrastructure (with training) to the Weskusmandjie community to enable it to establish food gardens. At a cost of about R1 million obtained via an NRF grant secured by Prof Maretha Opperman, the Faculty established a ‘Science Shop’ for the same community. A Science Shop is a facility that provides independent, free, participatory research support in response to concerns and issues experienced by a community.

Other notable community engagement projects included providing support in Science and Mathematics subjects to learners and educators from under-resourced schools, enabling more learners to undertake STEM-related courses at CPUT or other higher education institutions.

2023 also saw the Faculty complete a project on documentation of Indigenous Knowledge Systems for the rural community of Outeniqua. The Department of Science and Innovation (DSI) funded the project, which will move to a different community in 2024. The funding from the DSI continues for this project.

Vice-Chancellor Prof NC Nhlapo

The achievements in research were exemplified by inaugural professorial addresses by the two academics who promoted Full Professorship in the institutional round of Ad Hominem promotions in 2022. Both academics (Prof Vernon Somerset and Prof Learnmore Kambizi) are in the Faculty of Applied Sciences, and gave inspirational inaugural addresses on 26 May and 15 June 2023, respectively.

Senate Report | 55

2.3 Report on Internal Administrative/ Operational Structures and Financial Controls Systems of internal controls and processes Smart systems, including automated internal control systems, are considered a key enabler of CPUT’s Vision 2030. The University maintains a system of internal control to provide reasonable assurance regarding achieving its objectives. Effective, efficient, and transparent financial management and internal control systems ensure the University’s accounting records' accuracy, and the integrity of the data used to prepare financial statements. The internal control system is designed to provide 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 safeguarding of the University’s assets, and preparing and communicating reliable financial and other relevant information.

Internal control objectives include measures to ensure completeness, accuracy, and proper authorisation to documented organisational structures that set out the segregation of responsibilities, established policies and procedures, and a code of ethics.

Management is responsible for establishing and maintaining adequate internal control systems. As part of fulfilling that responsibility, Management understands and supports the role of Internal Audit.

Management is responsible for ensuring that audit findings and recommendations are addressed appropriately.

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

56 | CPUT Annual Report 2023

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 by 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 2023, CPUT continued to upgrade its IT infrastructure and software suite to meet the demands of multimodal learning and a hybrid work environment. Simultaneously, IT security is continuously reviewed and upgraded to mitigate the increased cyber security risk. Most of the annual Internal Audit Plan is assigned to IT governance, information security, and IT resilience. The Council's Information Technology Governance Committee (ITGC) oversees the IT control environment, including implementation of the IT Strategy.

Internal audit Internal Audit monitored the adequacy and effectiveness of the internal control systems through the approved 2023 Internal Audit Plan. The Plan has been developed annually, following a risk-based approach. The initial plan was approved by the Audit and Risk Oversight Committee (AROC) and amended, with the approval of AROC, in response to emerging risks. Internal audit findings and recommendations are reported to Management and the Council.

Audit findings and recommendations are reported to Management and 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 2023, with the central themes listed in the figure below. The most significant themes for 2023 included Finance and Smart Workforce.

9%

12%

Combined assurance CPUT adopted a combined assurance model to provide a coordinated approach to all university assurance activities. The model is designed to address the significant risks faced by Faceto and CPUT, 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 incorporating 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 take action.

CPUT has adopted a principles-based approach to combined assurance 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 are reported to Line Management for action, and implementation of corrective actions 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 10 May 2023, which was quorate. The documentation for approval by the Committee was also circulated with the meeting agenda in advance, with due notice.

9%

18%

12%

Chairperson of the Audit and Risk Oversight Committee Ms A Vabaza

39%

Academic Integrity

Smart Workforce

Cyber Security

Student Centredness

Environmental, Social, and Governance

Finance and Reporting

Internal Audit Director Ms H Van Dyk

Figure 1: Internal audits 2023

Report on Internal Administrative/ Operational Structures and Financial Controls | 57

2.4 Operational Effectiveness

58 | CPUT Annual Report 2023

This report assesses the Cape Peninsula University of Technology’s (CPUT) operational effectiveness regarding occupational health and safety (OHS), recognising its paramount importance within educational institutions in safeguarding the well-being and safety of all university community members.

Compliance with regulations CPUT is dedicated to adhering to all stipulations outlined in the Occupational Health and Safety Act No. 85 of 1993 and its subsequent amendments. This encompasses fulfilling duties delegated by the Vice-Chancellor, per Section 16.2 of the OHS Act. It involves the nomination, training, and written appointment of SHE Representatives, as prescribed in Sections 17 and 18 of the OHS Act. Furthermore, the University ensures the establishment of SHE committees, as delineated in Sections 19 and 20 of the OHS Act. The University also undertakes the nomination, training, and written appointment of First Aiders by General Safety Regulations 7, and Fire Marshals, as per the Environmental Regulations for Workplaces. For areas such as Mechanical Engineering, where heavy machinery is operated, the University appoints Supervisors of Machinery, in line with General Machinery Regulations 2.

SHE Policy development and implementation The University's SHE Policy received approval in September 2023. It delineates specific procedures for its execution, including protocols for reporting hazards and incidents, conducting risk assessments, and implementing controls. This Policy dissemination is facilitated through Newsflashes and staff training sessions, and will be prominently displayed across campus facilities.

Training and education CPUT ensures SHE training sessions for nominated SHE Representatives, First Aiders, and Fire Marshals; and Legal Liability training for Managers. Moreover, the University regularly hosts workshops covering various topics, such as emergency response procedures and chemical safety. All staff and students have access to these sessions.

Risk assessment and management The University has devised a Hazard Identification and Risk Assessment Template, and conducted training sessions on completing the Risk Register. Each department submitted its Risk Register to the SHE Unit for review, ensuring comprehensive risk identification and control measure implementation. The SHE Unit also conducts routine campus facility inspections to identify potential hazards. Prompt corrective measures are implemented following these assessments, and continuous monitoring ensures the efficacy of risk mitigation efforts.

Incident reporting and investigation All occupational incidents are promptly reported to the SHE Unit, with Section 24 incidents further reported to the Department of Employment and Labour. Thorough investigations of reported incidents are conducted to ascertain root causes, and to implement necessary corrective actions. CPUT is developing an online portal to facilitate prompt reporting of occupational health and safety incidents by staff and students.

Performance monitoring and improvement Regular tracking of key performance indicators (KPIs), such as incident reporting rates and the percentage of staff trained in safety procedures, informs data-driven continuous improvement initiatives. These initiatives may include targeted training programmes or facility upgrades to address identified areas for improvement.

Deputy Vice-Chancellor: Operations Prof G Mayende

Operational Effectiveness | 59

2.5 Human Capital The Human Capital (HC) Department at the Cape Peninsula University of Technology (CPUT) is proactively reimagining the workforce to perform in a technology-driven and inspired environment. The aim is to equip employees with the necessary skill sets, attitudes, and abilities to adapt to "One Smart CPUT". During the reporting period, the department diligently focused on establishing the necessary capability within Human Capital to meet the University’s requirements for Vision

60 | CPUT Annual Report 2023

2030. This involved engaging key stakeholders in conversation about the Staff Establishment and Competency Framework, with both initiatives posing critical questions about what CPUT will need to meet its intentions, goals, and targets by 2030.

Significant levels of expectation, engagement, and accountability characterise the operating context of CPUT HC. Employees want their voices to be heard, their needs understood and catered for, and their educational and professional aspirations supported. These expectations are supported by the statistics that reveal a vibrant, relevant, and open engagement with organised labour, where 70% of CPUT employees are affiliated with one of the six trade unions that have organisational rights and are represented at CPUT. Human Capital's Learning and Development Unit financed the achievement of qualifications for 207 staff members, ranging from matric to PhD levels. The total investment made towards these qualifications attained through public institutions is R850,000. What has also become apparent is the need for employees to be supported and cared for by the employer, resulting in an increase in the use of the Lifestyle and Wellness Programme during 2023.

Strategic initiatives during 2023 During 2023, HC was focused on: • Aligning the Human Capital organisation structure that was approved

mid-year with the achievement of Vision 2023 and the articulated Human Capital strategic imperatives; • Facilitating the Staff Establishment Workshop to consider what

staffing requirements the University had to support the achievement of Vision 2030; • Implementing the Competency Framework Project, intended to

define the competencies the University will need to deliver against Vision 2030 to answer the following questions: What are these competencies?; In which roles should they be located within the various organisational structures?; What is the current baseline of these skills within these roles?; What work needs to be done to establish/develop these skills to the levels they need to be at to support the University Strategy?

Significant accomplishments in 2023 • The Anti-Bribery and Corruption, Conflict of Interest, and Gifts and Hospitality policies were approved by Council. Initial drafts of the Remuneration and Benefits, Overtime, and Leave policies were prepared, and are ready for consultation with the university community; • Increase in awareness of the benefits and utilisation of the Employee

Wellness Programme to support staff well-being; • Approval of the University Employment Equity Plan, in line with the

provisions in the amended EEA; • Launch of the Competency Framework Project Steering Committee

and preparation of project, stakeholder, and communication plans for consideration and approval by ManCom; • Finalisation of the Minimum Services Agreement between the

University and organised labour, significant for ensuring that the CPUT community benefits from minimum levels of service delivery in the event of industrial action by staff; • Improved data integrity, frequency and visibility of HC data analytics;

and • R elationship and collaboration with organised labour via the

fortnightly Employee Relations Consultative Forum (ERCF), and quarterly engagements between Management and the Labour Committee.

The road ahead for Human Capital requires “all hands on deck”; hence, the focus is on ensuring that the approved HC organisation structure is recruited for and fully capacitated. Essential resources within this structure reside in the Talent Management, Employee Relations, Organisation Effectiveness, and Change structures of HC. It is anticipated that significant development of policies, processes, and practices will follow in 2024. It is an exciting time to work at CPUT, and we are committed to making it a great place to work.

• Establishing a digital and electronic talent acquisition capability,

visibility, and presence for the CPUT talent agenda to foster a path for the University towards the individuals and communities whose attention and interest we seek to attract and procure; and

Deputy Vice-Chancellor: Operations Prof G Mayende

• Updating the Human Capital Policy suite to reflect the legislative

shifts that have taken place over time, and also the lessons that CPUT has learnt through its various practices.

Human Capital | 61

2.6 Transformation This report details the Cape Peninsula University of Technology’s (CPUT) transformation initiatives, including an overview of the Transformation Division, the Institutional Transformation Framework, strategies for addressing structural issues and systems, and cultivating a transformative institutional culture.

62 | CPUT Annual Report 2023

Centre for Diversity, Inclusivity and Social Change (CDISC) The CPUT Vision 2030 (V2030) embraces institutional Oneness and Smartness, which advocates that no one should be left behind. The institutional values of ubuntu (human centricity), ubunye (unity), and ukungafani (diversity) are central to the mandate of the Centre for Diversity, Inclusivity and Social Change. The latter aims to build a more transformed, inclusive, and diverse university by implementing the Institutional Transformation Framework.

Some of the dimensions of transformation include: Digital, Curriculum, Social, Transformation of leadership and governance, Transformation of management, Transformation of research and knowledge production, Transformation of the higher education funding system, and Transformation of the institutional environment. Thus, transformation is cross-cutting, and touches all areas and aspects of university life.

The South African Human Rights Commission (2018) urges all South African universities to reflect on transformation in all aspects, including governance, management, and leadership.

The report highlights 2023 activities that CDSIC was engaged in that addressed structural issues, systems, and attempts at cultivating a transformative institutional culture, as encapsulated in the dimensions of transformation outlined above.

Key highlights for 2023 The 2023 CDISC Annual Report spans the seven focus areas of the Vision 2030 Strategic Plan, and is driven by the Institutional Transformation Pillars reflected in the Institutional Transformation Framework.

Focus Area 7: Smart Student Engagements and Learning Experiences Focus Area 7 places emphasis on intelligent student engagement and learning, aimed at creating a smart, holistic CPUT student experience through the development and training of student representatives, among others, to assist them in preparing for and effectively contributing to governance structures, thus providing a smart, holistic student experience. The following activities are flagged under this focus area: Student Representative Council (SRC) Induction The SRC induction took place from 10 to 14 January 2023. The SRC plays a critical role in creating an enabling university environment for all students, including students from the LGBTQI+ communities, and students with disabilities. Therefore, the SRC must understand its critical role in advancing transformation.

As part of building capacity for the newly elected SRC, CDISC presented on “Transformation in Higher Education”, flagging the various dimensions of transformation, namely: digital, curriculum, social, transformational leadership, governance and management, transformation of research and knowledge production, transformation of the higher education funding system, and transformation of the institutional environment.

EmpowHerSA-CPUT Induction Training This programme aims to empower female participants with the hard and soft skills needed for career development and success. A network of young women will be created, and mentoring opportunities provided. The Policy Framework on the Realisation of Social Inclusion in Higher Education (RSIHE) (2016) and the achievement of SDG 5 on Gender Equality and Women Empowerment (GEWE) inform the vision and conceptualisation of this programme, and training thereof.

It was hosted virtually on 6 May 2023, and was a collaboration of CDISC with the Division of Student Affairs (DSA), Vice-Chancellor’s Office, SRC, RTIP, and Faculty of Applied Sciences. The session covered gender, transformation, inclusivity, knowledge, and skills building to help develop the young women within the programme.

Residence Peer Helper Transformative Leadership Workshop To achieve Vision 2030, student and staff leadership from the whole of CPUT is required. The role of peer helpers is immeasurable, as they dovetail and complement services, such as student counselling, which serve as an enabler in this focus area. CDISC collaborated with the Student Counselling Department to present at the Residence Peer Helper Leadership Workshop on 22 April 2023. The Centre presented on the services offered, and on transformative leadership, further zooming into the topics mentioned below: • “Leadership and self-awareness: Self-awareness as a leader. Explore

your personality, emotional intelligence, and strengths”; • “Conflict management and problem-solving: Conflict management

and problem-solving for leaders. Explore your response to conflict and how to use problem-solving techniques”; and • “Ethical leadership: Become aware of what ethical leadership is

and how this affects your behaviour and choice”.

Focus Area 5: Smart Internationalisation This focus area encourages the CPUT community to embrace internationalisation, as it links with aspects of diversity and inclusivity.

The goal within this focus area is centred around developing a multicultural and global academic community, and capacity building is one of the enablers. Diversity and inclusivity are critical to smart internationalisation, as a process. The following activities are flagged: Embedding diversity and inclusivity in the role of Mentors and Retention Officers The CPUT Institutional Transformation Framework is premised on three approaches: Transformation, Mainstreaming, and Intersectionality. In giving effect to the latter, diversity and inclusivity are critical aspects of institutional transformation and in achieving V2030, particularly in Focus Area 5. There is a greater need to leverage diversity and inclusivity as a strength across CPUT. Mentors and Retention Officers (ROs) play an essential role in shaping the future of firstyear students as they transition from high school to university life.

An awareness session was facilitated for Mentors and ROs in the First Year Experience (FYE) programme to better understand their roles in promoting diversity and inclusivity within a multicultural, multinational CPUT environment.

Transformation | 63

Orientation presentations to first-year students As part of the first-year induction, CDISC presented diversity and inclusivity to Nursing students on 25 January 2023; and the Department of Biomedical Sciences on 15 February 2023.

Positive feedback was received on the presentations.

Promotion of Vision 2030’s values of ubuntu, ubunye and ukungafani A Lunch Hour Conversation: Promoting Diversity and Inclusion was coordinated by CDISC and the Strategic Initiatives and Partnerships (SIP) Directorate. Held on 23 August 2023, the initiative was aimed at institutionalising and promoting the values of ubuntu, ubunye and ukungafani. Utilising a webinar format, a keynote speaker (an expert with broader knowledge about the importance of understanding diversity and inclusion) delivered a 20-minute talk. This was followed by responses from two Central SRC representatives and one Executive: the Association of International Students representative. CDISC aims to continue these engagements to promote the values of human centricity and oneness in diversity.

Diversity and Inclusivity Champions In collaboration with DSA and the Disability Unit (DU), CDISC facilitated a training session for Diversity and Inclusivity Champions on 2–3 March 2023, and 20 April 2023, respectively. This is a peer support programme premised on the notion that students easily approach other students with their concerns and difficulties. It is based on a student-to-student relationship.

Transformation Webinar Deepening conversations on transformation is paramount to ensuring the institutionalisation and achievement of V2030.

CDISC partnered with DU and the CPUT Queer Unicorns on a transformation webinar with the theme “Towards oneness/ smartness: A focus on diversity, inclusivity and transformation”, hosted on 16 October 2023.

The primary purpose of this webinar was to engage on issues and challenges faced by staff and students from diverse backgrounds and contexts. One of the many intended outcomes was to develop insights that would inform the transformation of existing systems, facilities, resources and processes, to be more inclusive, and to eliminate any form of stigmatisation, exclusion, and discrimination within CPUT and in the context of higher education institutions.

The objectives of the webinar were to: • Provide awareness, and sensitisation around issues of diversity; • Identify, address, and begin the process of undoing systematic

exclusion; • Have honest and open conversations about diversity and

inclusivity-related experiences and challenges that affect staff and students; and • Engage in the institutional culture, and redefine the status quo.

64 | CPUT Annual Report 2023

Focus Area 3: Smart RTIP that is relevant and excellent in its knowledge production Focus Area 3 relates to leadership, capacitation, and knowledge production. Attention is drawn to the enablers stated under this focus area. The goal is to increase CPUT’s trans-disciplinary focus on knowledge production through strategic research initiatives. The enablers focus on resources and expertise based on structured mentorship programmes, formal training, and exposure to world-class academics, universities, trendsetters, and industry leaders. The following activities link to this focus area: Transformative Leadership Training: Student Leadership Incubation Workshop DSA, in partnership with CDISC and the Convocation, hosted a joint workshop to conceptualise a holistic and transformative Student Leadership Incubation Programme. The workshop was hosted on Bellville Campus on 29 July 2023.

The University has the mandate to develop students into global citizens who can take the country forward by making valuable contributions economically and socially.

The purpose of the workshop was premised on the following: • Launch and consult on the critical deliverables in preparing for

the next generation of student leaders; • Develop and mentor students as future leaders, and provide

them with opportunities to contribute meaningfully to their sphere of leadership interest – be it social, academic, cultural, political, psychological, spiritual, economic, or entrepreneurship; and • Strengthen the role of student leadership, and deepen the

principle of participatory democracy, while teaching servant and transformative leadership values.

EmpowHerSA–CPUT Conference In response to the Policy Framework on RSIHE (2016) and the achievement of SDG 5 on GEWE, in collaboration with DSA, CDISC hosted the EmpowHerSA–CPUT Conference on 2–3 September 2023. The conference theme was, “Creating supportive networks for young women to succeed”. EmpowHer is CPUT’s Young Women’s Network, aimed at transforming young women’s lives through mentoring, coaching, and training to reach higher personal growth and development levels.

Focus Area 4: Smart human capital and talent This focus area relates to smart human capital (people) and talent to ensure that CPUT remains focused on people as our most important resource. Part of this focus area relates to fighting the scourge of gender-based violence (GBV) as a social ill to promote a culture of human-centricity and intelligent people with integrity and mutual respect, among others, in support of One Smart CPUT. The activities, therefore, outline actions that affect achieving this goal, with a particular focus on all staff.

CPUT Men’s Conference In advancing the gender equality agenda and eradicating the GBV pandemic, it is critical that men become partners in these endeavours. Pillar 1 of the NSP-GBVF 2020–2030 calls for accountability, coordination, and leadership on an individual and collective level under a unified approach.

The CPUT Men’s Conference, under the theme, “Shaping our lived experiences to redefine our role as men in society”, was hosted in collaboration with DSA on 1 September 2023. It aimed at promoting men’s development through mentorship; equipping CPUT men with different self-development tools through health, mental health, education, and business, and on how to handle societal norms, and acknowledge men who have been making a difference in CPUT and the broader society. A medium-term objective is the proposition of a CPUT Men’s Charter – the Men’s Forum. This is in response to the Policy Framework on the RSIHE (2016), and the achievement of SDG 5 on GEWE. Build up to the CPUT Men’s Conference (Position statement banners) In response to the Policy Framework on Addressing GBV in Higher Education (2020) and achievement of SDG 5 on GEWE, the ViceChancellor localised the GBV National Strategic Plan on GBV to respond to V2030: • T he Institutional GBV Committee (IGBVC) was established

in response to the Pillar on Accountability, Coordination, and Leadership, which sets out to ensure accountability at the highest level of organisations. This includes Executive Management (EM), Management Committee (ManCom), and Student Representative Councils (SRCs) to enhance leadership commitments, coordination, and management of GBV at CPUT. • The Department of Higher Education and Training’s (DHET) 2020

Policy Framework on addressing Gender-Based Violence in the Post-Education and Training System further compels us to act by developing and implementing policies that communicate a zero-tolerance approach, further indicating that institutional policies must contain a clear statement rejecting all forms of GBV. After successfully hosting the CPUT Men’s Conference and the EmpowHerSA–CPUT Conference, a need to reintroduce the CPUT GBV Position Statement was identified to emphasise and strengthen the zero-tolerance stance against violence. As part of sustaining this initiative, all CPUT staff and students, regardless of rank, are urged to speak out against GBV, and stand up against this pandemic by: • Empathetically supporting survivors; • Holding alleged perpetrators to account, and ensuring appropriate

steps if found guilty;

Focus Area 6: Smart engagement and strong links with quintuple helix partners This focus area centres on collaboration and engagement with external stakeholders across all research and teaching activities.

It dovetails nicely with Pillar 6 of the NSP-GBVF 2030 on research and information management, the Policy Framework on Addressing GBV in Higher Education (2020), and SDG 5 on GEWE. The following are highlights under this focus area: Research Indaba on GBV in Higher Education (HE) On 8–9 March 2023, CDISC, in collaboration with RTIP, DSA, MCD, HERS-SA, and the HSRC, hosted a GBV Research Indaba.

The Indaba was held at the Auditorium, Bellville Campus. The 243 participants included 45 staff members, 150 students, 40 NGO representatives, and 8 DHET delegates. The primary purpose was to share lessons, strategies, interventions, practices, and research agendas on holistic, integrated, multi-sectoral coordination and collaboration on gender equality and women empowerment to combat GBV in higher education. This includes evidence-based research and realist evaluation approaches to develop GBV interventions for existing social problems to bring about social change.

CDISC also partnered with the HSRC to publish the research papers and compile a book after a rigorous peer review process.

In this exciting, ground-breaking journey, CDISC hosted the firstever engagement of this nature in HE in South Africa. The Centre endeavours to continue these crucial conversations, and create spaces for dialogue and reflection related to research on GBV, journeying with men as partners towards gender equality at CPUT and beyond.

The Deputy Minister of Higher Education, Mr Buti Manamela, delivered the main address to mark International Women’s Day. He addressed the critical task of eradicating GBV in HE, and ensuring a safe university and workspace for students and staff.

We acknowledge our Executive, under the leadership of our ViceChancellor, all the colleagues who took the time to prepare and present papers at the Indaba, keynote speakers, external partners who displayed the work they do to eradicate GBV, and all who supported. Above all, we are thankful for the various institutional divisions whose joint efforts made the two days meaningful and fruitful.

In conclusion, the 2023 Annual Transformation Report outlines the transformation initiatives across the various dimensions of transformation. These are anchored in Vision 2030 and the Institutional Transformation Framework. The report also summarises the transformation of governance structures. It can be concluded that transformation at CPUT is implemented as a cross-cutting activity anchored in the strategic pillars of the University.

• Exposing transactional and coercive relationships that may render

staff or students vulnerable to abuse; • Developing a foundational module on GBV that is educative, and

preventative; and • Protecting the rights of human capital and students in all

interactions.

Chairperson of Council Dr LF Platzky

Vice-Chancellor Prof NC Nhlapo

Transformation | 65

Section 3: Risk and Ethics 66 | CPUT Annual Report 2023

3.1 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 AROC 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.

Figure 1: The objectives of the Audit and Risk Oversight Committee (AROC Terms of Reference, reviewed February 2024)

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 Vice-Chancellor, 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, reconstituted all its committees, and elected chairpersons for a period of four years. At the end of 2023, the Committee had four members, comprising 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.

Meetings are held at least four times a 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 2023, the Committee held quarterly meetings, of which three were quorate (refer table below), and carried out its oversight duties as set out in the Terms of Reference.

Date of committee meeting AROC member

10-02-2023

19-05-2023

04-08-2023

06-10-2023

02-02-2024

A Vabaza *

CH

CH

CH

A

CH

D Gumbi *

PR

P

P

CH

PR

N Nicolls **

PR

P

P

PR

PR

M Thango *

PR

A

A

AW

AW

Meeting quorate

Yes

Yes

Yes

No

Yes

* Member of Council ** External member CH Chairperson PR Present A Apology AW Absent without apology Table 1: AROC meeting attendance 2023

Report of the Audit and Risk Oversight Committee | 67

Summary of main activities The Audit and Risk Oversight Committee complied with key aspects of its mandate. In executing its duties, the Committee attended to the following key matters: Internal audit The Committee is responsible for overseeing Internal Audit, and during the year under review, it 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 2023; • 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 The Committee is responsible for recommending the appointment of the External Auditor, and for overseeing 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 The Committee 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 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 AROC ensured that a combined assurance model was applied, to provide a coordinated approach to all assurance activities, and to address all the significant risks that CPUT is facing. It also 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 AROC ensured that IT risks are adequately addressed. It 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: •P rogress in addressing external and internal audit findings; • I T strategic and operational risks, including cybersecurity risk; and • I T 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.

68 | CPUT Annual Report 2023

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 notice, 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 2023 Annual Report to the Council for approval.

Chairperson of the Audit and Risk Oversight Committee Ms A Vabaza

Report of the Audit and Risk Oversight Committee | 69

3.2 Enterprise Risk Management The University continued to follow leading risk governance and management practices, as enshrined in the King IV Report and Code for Good Governance for South Africa (2016), including other related technical standards, such as the Committee of Sponsoring Organisations of the Treadway Commission (COSO) enterprise risk management (ERM) integrated framework (2017), and the International Organization for Standardization (ISO) 31000:2017 risk management standards.

Council has delegated its responsibility for designing and implementing risk management and the internal control system to Executive Management without abdicating its ultimate accountability for overall risk governance.

The University engaged in initiatives to further embed ERM across the University. The following subsections expand on the activities that ensued during the reporting period.

70 | CPUT Annual Report 2023

Risk governance Over the years, the University has established a solid risk governance and management environment, based on leading South African and global guidance and insights. Council approved its Institutional Risk Management Policy in 2021, to provide direction and structure to the ERM initiative at the University. The risk policy instrument continued to be operationalised by the ERM framework and methodology, and the Vision 2030 ERM Strategy and Implementation Plans that progressively improved the ERM maturity of the Institution.

The table below provides a schematic view of the critical risk governance structures that continue to anchor and augment the institutional risk management and internal control system.

Risk governance structure

Number of meetings per annum, per terms of reference

Number of meetings conducted during the financial year (FY) 2023

The Committee includes independent, external, and non-executive directors (Yes/No)

Description of the chairperson of the structure (internal/ external)

Type of risk monitored from a governance, oversight perspective

Evaluation of the performance of the structure, per terms of reference (Yes/No)

Quality Assurance and Risk Management (QARM) Committee

At least 4, excluding extraordinary sessions

4

Yes

Vice-Chancellor and Principal (executive, internal)

All enterprise (institutional) risks

Yes

Institutional Strategic Planning Committee (ISPC)

At least 4, excluding extraordinary sessions

4

No (This is an internal executive governance structure, which is standard practice in a leading practice environment.)

Vice-Chancellor and Principal (executive, internal)

Executive oversight on corporate (institutional) governance, strategic planning, strategy implementation, project planning and execution risks

Yes

Governance and Ethics Committee (GEC)

At least 4, excluding extraordinary sessions

5

Yes

Independent, non-executive director (external)

Compliance and ethics

Yes

Information Technology Governance Committee (ITGC)

At least 4, excluding extraordinary sessions

4

Yes

Independent, non-executive director (external)

All information technology (IT) related risks

Yes

Audit and Risk At least 4, Oversight Committee excluding (AROC) extraordinary sessions

4

Yes

Independent, non-executive director (external)

All enterprise (institutional) risks, including financial and financial reporting risks

Yes

Financial Investments Subcommittee of the Finance Committee (InvCom)

At least 4, excluding extraordinary sessions

4

Yes

Independent, non-executive director (external)

Financial, including investment risks

Yes

Finance Committee (FinCom)

At least 4, excluding extraordinary sessions

4

Yes

Independent, non-executive director (external)

Financial, including investment risks

Yes

Council

At least 4, excluding extraordinary sessions

4

Yes

Independent, non-executive director (external)

All enterprise (institutional) risks, including financial risks

Yes

*It should be noted that all Council committees provide oversight over some form of risk, for instance, committees for human resources, physical space and utilisation. However, the committees (or structures) in the table above have specific delegated, direct risk oversight roles, per approved terms of reference.

Enterprise Risk Management | 71

Vision 2030 ERM strategy and implementation 2023 The Council's approval of the Vision 2030 ERM Strategy in 2021 continued to provide impetus and momentum for the diligent and vigilant management of risk across the University. The high-level schematic view of the University’s risk strategy and implementation plan is depicted below: Risk governance (Council and its committees, and Executive Management) Risk assessment

Risk quantification and aggregation

Risk and control optimisation (among other things, business continuity, including disaster recovery)

Dynamic, continuous risk monitoring and reporting

Risk culture and awareness

Agile, dynamic ERM for continuous improvement (People, Process, and Risk Technology: Enterprise, Governance, Risk and Compliance software) Institutional Combined Assurance Forum (ICAF) The University’s risks continued to be reviewed and updated at institutional, divisional, faculty, project, departmental, and unit levels.

The University progressively leverages appointed risk (or combined assurance) champions to coordinate risk management across the University. An Institutional Combined Assurance Forum was established during FY 2022. The Executive Director: Office of the ViceChancellor is the executive sponsor of the initiative. The University Enterprise Risk Manager chairs ICAF per terms of reference in the University’s ERM Framework and Methodology.

The institutional annual risk assessment workshop contributed to the University’s combined assurance initiative. A comprehensive assurance mapping exercise commenced in FY 2022, and continued to be reported to risk governance structures in 2023. The Director of Internal Audit Services provides consulting and assurance guidance in designing and maintaining the institutional assurance map, including determining specific levels of assurance by various combined assurance partners across all lines of defense. The work of ICAF is variously reported to all risk governance structures, and ultimately to the Audit and Risk Oversight Committee of Council on a quarterly basis.

Independent evaluation of the maturity of the University’s ERM initiative during FY 2023 The Internal Audit (IA) Services Directorate, per its IA Plan for 2023, conducted the CPUT Gartner ERM Maturity Review in conjunction with Gartner Risk Assurance Consultants. The University’s ERM initiative obtained a score of 4+ out of the maximum possible score on a 5-point scale. Executive Management and AROC welcomed this high level of maturity.

The graphic below shows the overall rating of the CPUT Gartner ERM maturity review result: CPUT Score = 4+

1. Vey Low Maturity

2. Low Maturity

3. Medium Maturity

4. High Maturity

5. Very High Maturity

Summary of ERM initiatives completed during FY 2023 Risk culture and awareness

1 X ERM training (Awareness/ information sharing for Senior and Middle Management)

72 | CPUT Annual Report 2023

1 X ERM training (Awareness) 1 X Information sharing (Awareness session) on fraud for staff prevention and deterrence – Finance and Procurement staff 2023

1 X BarnOwl ERM training for Risk/ Combined Assurance Champions

The CPUT collaborative ERM approach to the management of risk The risk assessment process continued to strengthen the internal control environment of the University further during 2023. A schematic view of the CPUT ERM strategic, tactical, and operational risk review approach is depicted below:

ENTERPRISE RISK MANAGEMENT COMMUNICATION PROTOCOL

PLANS (National Development Plan, Vision 2030 One Smart CPUT 10-year Strategic Plan, Annual Performance Plan)

RISK MANAGEMENT PROCESS

VICE-CHANCELLOR • Ensures that objectives are finalised through a rigorous analysis of the costs and benefits associated therewith; • Ensures that the University has and maintains an effective process to identify the risks inherent in the chosen objectives; and • That the University is able to manage such risks effectively, economically, and efficiently.

AUDIT AND RISK OVERSIGHT COMMITTEE (AROC) Provides independent audit and risk management oversight

QUALITY ASSURANCE AND RISK MANAGEMENT COMMITTEE (QARM)

Establish Context

Risk Analysis

Risk Evaluation

Monitor and Review

Risk Assessment

Risk Identification

FACULTY AND DEPARTMENTAL MANAGEMENT • Integrate risk management within areas of responsibility • Comply with risk management framework and process, including maintenance of a risk register

RISK REGISTERS

(ERM System - BarnOwl)

Risk Response

RISK REPORTS

(In line with the ERM Strategy)

Note: Every quarter, the ERM Function reports to the Governance and Ethics Committee (GEC), and the Information Technology Governance Committee (ITGC); with attendance at the quarterly Institutional Strategic Planning Committee (ISPC), Finance Committee (FinCom), and the Investments Sub-committee of FinCom.

Enterprise Risk Management | 73

Institutional risk profile 2023 The University performed its annual institutional risk assessment workshop on 2 November 2023, comprised of Senior Management and selected members of the Council and its committees. In instances where risks are above the Council-approved risk tolerance limits, action plans are developed by Executive Management to reduce the residual ratings to within desired thresholds. The refreshed 2023 risk profile is depicted below, thus:

#

Title

*IR

*RR

Risk tolerance

1

Institutional Cybersecurity

Very high

Very high

Moderate

2

Financial Health and Sustainability

Very high

High

Moderate

3

Maintenance and Development of the Estate

Very high

High

Moderate

4

Providing adequate, end-toend university-wide security and protection, fleet management, and health and safety services may be compromised

Very high

High

Low

5

Strategic Human Capital Management

Very high

High

Medium

6

Student Experience

Very high

High

Low

7

Institutional Resilience: Integrated Business Continuity Management (BCM), including IT Disaster Recovery

Very high

High

Medium

8

Enrolment Plan and Targets

Very high

High

Medium

9

Environmental, Social, and Governance (ESG)

High

High

Medium

10

Compliance and Ethics

Very high

High

Low

11

Alignment of ICT systems and infrastructure with CPUT's futurefocused teaching and learning requirements for V2030

Very high

Medium

Medium

12

Opportunity: Disruptive Technologies

High

Medium

High

13

Stakeholder Relations and potential threat to the CPUT brand (Reputational Risk Management)

High

Medium

Low

14

Research Productivity (Research and Innovation Optimisation)

Medium

Medium

Medium

15

Academic Programme Management

Very high

Low

Medium

Note: IR = Inherent risk rating (rating without controls in place); RR = Residual risk rating (rating with controls in place) RR = 1 – 5 (low)

RR = 6 – 13 (medium)

RR = 14 – 19 (high)

RR = 20 – 25 (very high/ extreme)

Summarised Institutional Key Risk Register 2023 The University’s Council and Executive Management are cautiously confident that their approach and arrangements for enterprise risk management align with global leading practices, and are benchmarked with realities inherent in other leading higher education institutions, locally and globally. Appendix A of this report shows a summarised version of the University Key Risk Register 2023, which the ViceChancellor and Principal approved on 18 November 2023.

74 | CPUT Annual Report 2023

Conclusion The high maturity result obtained from the Internal Audit Gartner ERM Maturity Assessment 2023 project is a positive signal to CPUT’s key stakeholders that its dynamic and progressive ERM (risk) policy, strategy, plans, and ancillary arrangements are adequate and effective to meet the constantly evolving and complex operating environment. The University is now focused on risk technology investments hinged around data science, data warehousing, data mining, data analytics, predictive analytics, artificial intelligence (AI), generative AI, supervised and unsupervised machine learning, robotics process automation (RPA), business process reengineering (BPR), and smart programming options, such as Python, R, MATLAB, and SAS. Appendix A: Summary of the Institutional Key Risk Register 2023 Inherent risk rating

Residual risk rating

Risk tolerance

Information and Communication Technology (ICT)

16

9

9

ICT

25

20

9

Opportunity or risk description

Risk category

Opportunity: Disruptive Technologies risk description

Institutional Cybersecurity

Summary of existing controls

Risk owner(s)

• The Computer and DVC: Operations; Telecommunication Services Senior Director: (CTS) Function monitors general Computer and technological developments and their Telecommunication impact on university-wide initiatives, Services (CTS) 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 • The Business Information and Communication Technology (BICT) Committee is charged with providing oversight over all IT strategies, plans, projects, and related investments on behalf of Executive Management and the Information Technology Governance Committee (ITGC) of Council • The ITGC of Council provides oversight over all IT-related risks and investments • Cyber Security Strategy and DVC Operations; Programme Senior Director: • Information Security Strategy Human Capital • Cyber Security Governance Team and a Cyber Security Operations Team • Information Security policies, i.e., Information Security Policy, Access Control Policy, and IT Acceptable Usage Policy • Cyber Security Awareness Programme has been established within CPUT • Vulnerability Management Programme has been established that 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 Enterprise Risk Management | 75

Inherent risk rating

Residual risk rating

Risk tolerance

Financial Financial Health and Sustainability description

25

16

13

• Institutional Vision 2030 Finance Strategy Executive Director: • Governance oversight by the Finance and Finance Investments committees of Council • Strategic financial scenarios developed and revised (continuous assessment of financial sustainability) • Balance sheet risk management interventions, financial ratio analysis, and sensitivity analytical exercises • Financial risk measurement and management by the Financial Investments Sub-committee of FinCom every quarter • Funds invested in the short-term to generate interest income; University funds are only invested with reputable financial institutions, as rated by global credit rating agencies (Standard and Poor’s, Moody’s Investors Analytical Services, and Fitch Global Ratings) • 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 and Procedures • Drive for third-stream funding in place

ICT Alignment of ICT systems and infrastructure with CPUT's futurefocused teaching and learning requirements of the Vision 2030 Strategic Plan

25

12

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 to 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 agreement • 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

Opportunity or risk description

Risk category

76 | CPUT Annual Report 2023

Summary of existing controls

Risk owner(s)

DVC: Operations; Senior Director: CTS

Inherent risk rating

Residual risk rating

Risk tolerance

20

15

Enrolment Plan and Targets

Teaching and 20 Learning

Research Productivity (Research and Innovation Optimisation)

Research and Innovation Optimisation

Opportunity or risk description

Risk category

Institutional Resilience: Integrated Business Continuity Management (BCM), including Disaster Recovery Planning (DRP) description

Business Continuity/ Disaster Recovery

12

Summary of existing controls

Risk owner(s)

13

• Approved Institutional Integrated BCM Strategy • Ongoing process to capacitate the BCM Function of the University • Business Impact Assessments performed in conjunction with ERM services, including sharing of BIA templates for rollout across the six BCM Clusters of the University • Approved and continuously, independently tested IT Disaster Recovery Plan (DRP) • Regular maintenance (update) of the IT DRP • Backup and fail-over solutions are in place and are tested periodically • Review, update, and approval of the IT DRP by various 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 continuance of critical business functions in the event of a disruption • Testing and reviewing of offsite storage procedures to ensure data can be effectively recovered during a disaster • Internal audits on BCM, including DRP

DVC: Operations; Senior Director: CTS; BCM Coordinator

14

13

• Approved Institutional Enrolment Plan • Structure: Directorate: Institutional Planning • 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, and Dean's Forum • Use of Data Analytics (PowerHEDA) as part of institutional business intelligence services • 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: Learning and Teaching; Executive Director: Office of the ViceChancellor (OVC)

6

13

•D elegation of authority/ processes for approvals •T echnology 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.

•H olding company to hold equity in spin-off companies. Aonyx Holdings was created in December 2017.

•C ouncil Sub-committee (Intellectual Property, Commercialisation, and Enterprises) established in 2017 to manage commercialisation aspects •P roject Management Department in place

DVC: Research, Technology Innovation, and Partnerships (RTIP)

Enterprise Risk Management | 77

Opportunity or risk description

Risk category

Inherent risk rating

Residual risk rating

Risk tolerance

Student Experiencee

Brand and Reputation

20

16

5

Stakeholder Relations, Engagement and Management

Brand and Reputation

16

Strategic Human Capital Management

Human Capital

25

78 | CPUT Annual Report 2023

Summary of existing controls

Risk owner(s)

• Stakeholder Coordinator appointed in

DVC: Operations; DVC: RTIP

the Office of the Vice-Chancellor •C ondition assessments done at residences about Health and Safety measures • Maintenance Strategy in place (prioritised and condition-based) • Preventative

and planned maintenance •S tructures 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) •N eeds Survey to understand, from a student perspective, the residential needs required to have a conducive postgraduate (student) residential experience 9

5

•E xternal Stakeholder Engagement

Strategy •S takeholder 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 •C ode of Conduct for Council members •S tructures in place to address student matters: Management and committees •S RC Constitution and Code of Conduct •M arketing and Communication Directorate in place •A dvancement Directorate initiatives 16

13

•A pproved Vision 2030 Human Capital

Strategy and Plan •H uman Capital policies, strategies, structure, and organisational design arrangements •C ontinuous review of human capital strategies, policies, and procedures •G overnance structures and oversight •P erformance leadership and engagement interventions • Appointment

of the Senior Director: Human Capital in 2022

Vice-Chancellor; Executive Director: OVC; DVC: Operations

DVC: Operations; Senior Director: Human Capital

Opportunity or risk description

Risk category

Inherent risk rating

Residual risk rating

Risk tolerance

Maintenance and Development of the Estate

Infrastructure Development and Facilities Management

25

16

13

Environmental, Social, and Governance (ESG)

External Environment

16

14

13

Summary of existing controls

•C ondition assessments and prioritise

the refurbishment, new build, and sustainability • Following the maintenance philosophy of ISO 55000 and life cycle maintenance.

Ongoing, now part of existing controls.

• Compliance in Construction Regulations, SANS 104000 and OSHACT •C omply with DHET Norms and Standards and the Heritage Building Act •M unicipal by-laws and Environmental Law •T he end-user must control repetitive repairs due to vandalism •S ubmission to DHET of quarterly reports in terms of expenditure •S ubmissions to Infrastructure Efficiency Grant visits by DHET, and CPUT Budget managed very tightly •A nnual Maintenance Budget and link high-priority areas •C omply with DHET Macro Infrastructure Framework • Maintenance Planning and prioritising as per Life Cycle Maintenance process and time-based maintenance cycles.

The focus would be on compliance with structural integrity and aesthetics.

• Maintenance

Plans as per ISO 55000 • Approved

Integrated Institutional Operations Strategy • Approved

Property Services Strategic Plan • Integrated

Institutional BCM Strategy • Sustainability Strategy • Assurance

and consulting services by the in-house Internal Audit Function • Institutional

governance structures

Risk owner(s)

DVC: Operations; Director: Property Services

DVC: Operations; Director: Property Services; Registrar; Executive Director: OVC

Enterprise Risk Manager Mr R Chibvongodze

Enterprise Risk Management | 79

3.3 Quality Assurance and Risk Management Committee Quality management refers to the institutional arrangements for assuring, supporting, developing, enhancing and monitoring the quality of learning and teaching, assessment, research, and community engagement (Quality Assurance Framework, 2020). Therefore, the development and management of institutional quality assurance systems that are integrated, together with the development and implementation of policies and processes that support, enhance, and monitor core academic functions of learning and teaching, research and community engagement, as determined by the Institution’s Strategy and plans, are important aspects of ensuring continuous quality improvement of the Cape Peninsula University of Technology’s (CPUT) quality management systems.

The Quality Management Directorate (QMD) developed the five-year institutional Quality Management Strategic Plan in accordance with V2030. This plan was not developed in isolation, but in close collaboration with the Quality Assurance and Risk Management Committee (QARM) and the Institutional Strategic Planning Committee (ISPC). Following their consultative engagements and approval, the Strategy was given the green light, and its implementation subsequently commenced.

80 | CPUT Annual Report 2023

In 2021, the Council on Higher Education (CHE) published a ground-breaking quality assurance framework, the QAF, which set the tone for rethinking, redesigning, and reviewing institutional quality management systems across the higher education landscape. Some of the important shifts include a movement to the usage of standards, guidelines and criteria in quality assurance; a focus on the primary unit of analysis being the institution; the introduction of a Quality Assurance Dashboard as a continuously updated and consolidated quality record for the institution, faculties, departments, and support units; encouraging a focus on developing the effectiveness of internal quality assurance systems; and making changes that will see CHE accrediting qualifications, not programmes, and leaving the internal approval of programmes designed around the qualifications to the higher education institutions (HEIs). In other words, it announces an institutional self-approval status based on the maturity of the institutional QMS. At CPUT, we embraced the progressive nature of the QAF. Some of its key aspects were integrated into our CPUT Quality Strategy and Conceptual Model, demonstrating our adaptability and forward-thinking approach to quality management.

In line with the QAF and CPUT Quality Strategy, QMD developed a framework for standards-based approach to design, implementation, monitoring and evaluation of quality management systems at CPUT: "Quality Management Practice Standards for Faculties, Support Units and Communities of Practice”. The purpose of the Framework is to describe the background, context, purpose, process, and outcomes of the internal quality assurance functions, as envisaged in the Quality Management Strategic Plan (2023–2027), to enable its implementation as part of the QAF. It provides greater detail on how the standards-based approach to design, implementation, monitoring and evaluation of quality management systems for faculties, support units and communities of practice will be established.

Recognising that institutional policies and all associated quality instruments are designed to create an enabling environment for meaningful implementation of institutional quality management systems, QMD participated in several policy development and review initiatives. QMD also initiated the review of the Institutional Quality Assurance Policy, which is anticipated to conclude by June 2024.

A range of integrating quality management structures are in place to support the implementation of the institutional QMS. These include the Quality Assurance and Risk Management Committee, a joint committee of the Senate and Council, as an oversight structure responsible for governance and management of quality. Four QARM meetings were held in 2023. QMD presented the performance barometer of the institutional QMS, and reported on the outcomes of quality reviews, progress on quality improvement actions, quality promotion activities, and student and staff engagement initiatives. Communities of Practice,

in the form of the Institutional Quality Forum (IQF) and Faculty Quality Fora (FQFs), engaged in institutional and faculty-specific quality matters. QMD hosted three IQF meetings, and an IQF workshop, which focused its discussions on the framework for a standards-based approach to design, implementation, monitoring and evaluation of quality management systems at CPUT; Quality Management Practice Standards for faculties, support units and communities of practice; student feedback surveys, the review of the terms of reference for IQF and FQFs; and the review of the CPUT Quality Assurance Policy.

QMD staff continued to participate and represent the Institution’s Quality Management Function at all assigned meetings of the Senate, Senate Committees, management committees and the faculty board meetings. To maintain professional relations with external ‘quality’ stakeholders, as and when necessary, QMD held meetings or regularly communicated with various external stakeholders, particularly DHET, CHE, SAQA, professional bodies, and industry partners.

Enhancing accountability through quality reviews To continuously ensure the quality of our academic qualifications and enhance accountability, the faculties and departments develop a cyclical and reflective quality review schedule that is approved by the QARM Committee at the beginning of the academic year. This is an opportunity to evaluate the quality of our educational offerings either by professional bodies or through external quality reviews conducted by academic and industry peers in a particular field.

In 2023, 19 quality reviews were scheduled, of which six were internal, and seven were external quality reviews conducted by professional bodies. Six qualification reviews were either cancelled or postponed for various reasons. In one case, an impasse between CPUT and the South African Dental Technicians Council (SADTC) resulted in the cancellation of the review. The South African Nursing Council (SANC) requested a postponement until 2024. The Engineering Council of South Africa (ECSA) reviews were postponed to 2024 due to student protests that impacted the planning and hosting of the site visit.

Some of the key success factors in conducting quality reviews included the introduction of an independent students' critical reflection in the process of development of the departmental self-evaluation report (SER), timeous acceptance of the invitation to participate in the quality reviews by academic peers; briefing meetings held with panel members before the site visit; and support from QMD colleagues. Another success factor involved continuous communication with the heads of department (HoDs), departmental staff members and students, before, during and after the review site visit. Here, WhatsApp groups were set up for ease of communication, as a platform for engagement, to provide updates on the developments around the review site visit, and to coordinate interview sessions.

Quality Assurance and Risk Management Committee | 81

Loadshedding (power cuts) prevented some panel members from participating fully during the two-day virtual site visit. In November, most of the panel members declined the review invitations due to examinations and the closing of the business. Some Industry partners and Advisory Board members did not honour the invitations. Due to time constraints, we experienced challenges reaching Industry and Advisory Board members for debriefing. Document checks were also delayed because of the late submission of the SharePoint link to QMD. Frustration with the lack of progress in resolving the disputes concerning the roles and responsibilities of professional bodies remains a considerable challenge for CPUT and other HEIs offering professional qualifications. Frustrations range from lack of cooperation with QMD, academic overreach in terms of some prescriptive and rigid recommendations that limit academic flexibility and innovation, demands on meeting unrealistic professional body expectations, a solitary approach to decision-making, and, in some cases, professional conduct and inexperience of members pose a challenge. CPUT encountered significant challenges with SADTC and Health Professions Council of South Africa (HPCSA) concerning our dental technology and biomedical science qualifications. More needs to be done to improve these professional relationships with professional bodies.

Planning for Quality Improvement The Quality Improvement Function ensures the development and implementation of a planned programme of quality improvement activities, and the development, approval, validation, and monitoring of quality improvement plans emanating from quality reviews held regularly and continuously. Reports on the critical aspects identified in the quality reviews and the cyclical validation of QIPs are tabled at the QARM and ISPC committee meetings.

From November 2022 to October 2023, QMD conducted three departmental quality improvement plan (DQIP) validation cycles. A DQIP validation is done in academic departments to assess their progress improvement actions in the DQIPs. A validation cycle contains QMD, which validates the planning and monitoring of DQIPs, and the actual progress in scheduled meetings with the HoD. Before the DQIP validation cycles, QMD held capacity-building, information-sharing, and engagement workshops with the HoDs. QMD successfully validated all the DQIPs received from various academic departments for all the cycles conducted. QMD also had the opportunity to present the DQIP reports at different institutional committees and quality fora. In recognising excellence, academic departments that have managed to address all the findings were commended for their hard work in improving the standard and quality of qualifications offered by CPUT. Academic departments that did not perform optimally in addressing the findings were marked as ‘red-flagged’ departments, to bring to the attention of the respective Dean the lack of progress in addressing improvement actions. The departments that discussed findings were labelled as ‘blue-flagged’, to signal exemplary leadership and commendable efforts to address improvement actions. While there were praiseworthy improvements in addressing departmental matters in the purview of the HoD, there was, however, an increase in institutional issues and concerns that require external (to the department) interventions in addressing the improvement actions. In such cases, either the support unit or the Dean is required to take action to address the identified matters.

Doctoral Review Quality Improvement Plan (Doc QIP) In 2022, CPUT ended the year positively, receiving a letter of approval for the Doctoral Review Quality Improvement Plan (Doc QIP) from CHE in September 2022. Since then, QMD, working closely with the Centre for Postgraduates Studies (CPGS), submitted the first progress report on 28 February 2023. CPUT received a response from CHE regarding the Doc QIP progress report: "Based on the evidence provided, the HEQC approved your progress report and looks forward to receiving the second biannual progress report by 31 October 2023”. Internally, QMD has validated the Doc QIP as a monitoring process. To improve student engagement in quality assurance activities, the Postgraduate Student Quality Desk was invited to provide comments and input to the Doc QIP progress report. This intervention allowed the incorporation of student voices. The progress report was approved by the Higher Degrees Committee (HDC) and submitted to CHE by 31 October 2023.

Vice-Chancellor Prof NC Nhlapo

82 | CPUT Annual Report 2023

Quality Assurance and Risk Management Committee | 83

3.4 Ethics and Compliance Management

84 | CPUT Annual Report 2023

At the Cape Peninsula University of Technology (CPUT), we believe that a robust Ethics and Compliance Programme, firmly rooted in our core values, with a particular emphasis on integrity and transparency, is the cornerstone of our Institution's responsible and ethical identity. The Compliance Management Function (CMF) coordinates, facilitates, and advocates for implementing a robust, universitywide Ethics and Compliance Programme. This mandate extends to ensuring the Vice-Chancellor (VC), Executive Management (EM), Management Committee (ManCom), and University Council are assured of the presence of adequate controls and mechanisms designed to pre-empt, uncover, and mitigate compliance risks.

We recognise our diverse stakeholders' deep interest in our commitment to compliance – a spectrum encompassing our dedicated employees, Council, service providers, regulatory authorities, the Government, and most significantly, our students.

The compelling need for an ethical academic environment is amplified by the complexities we have faced in recent years, marked by student protests and the revelation of historical misconduct. In response to these challenges, the CMF has embarked on a journey to enhance vigilance, consistency, and operational efficiency. Our multifaceted initiatives have culminated in a unified ethics and compliance vision, underscored by the following noteworthy achievements:

1

Implemented Integrated Declaration Mechanisms for CPUT

4

Appointed a dedicated Policy Analyst

2

Established a Policy Development Framework

5

Developed a POPIA & Privacy Plan Webpage

3

Designed a Policy Library

6

Drafted Data Processing and Data Sharing Agreements (POPIA agreements)

Figure 1: Compliance Function – Achievements 2023

1. Integrated Declaration Mechanisms: We have successfully harmonised the reporting and management of Conflicts of Interest, Gifts, Benefits, Hospitality, and cases of unethical conduct. This consolidation is achieved through the relevant policies governing these processes.

2. Policy Development Framework: Establishing a Policy Development Framework has fortified our capacity to develop and manage university policies efficiently.

3. Policy Library: A comprehensive Policy Library will serve as a valuable repository, offering insights into the Policy Development Framework and all university policies. This resource will be readily accessible to stakeholders seeking policy-related information via the CPUT website.

4. Dedicated Policy Analyst: A dedicated Policy Analyst was appointed to oversee and streamline the policy development process.

This role involves coordination, advisory support, and aligning policy development with appropriate governance procedures, ensuring compliance.

5. POPIA & Privacy Plan webpage: To enhance transparency and awareness concerning personal information, we have introduced a dedicated website focusing on the Protection of Personal Information Act (POPIA) and privacy matters. This platform keeps our data subjects well-informed about the University's activities related to their data.

6. Data Processing and Data Sharing Agreements (POPIA agreements): These agreements have been implemented to bolster our data security and privacy practices when engaging with external entities. They establish a robust framework for safeguarding sensitive information.

Ethics and Compliance Management | 85

Compliance management overview The overarching goal of the CMF is to foster an atmosphere characterised by ethical conduct and robust compliance by executing a comprehensive university-wide Ethics and Compliance Programme.

Our programme is underpinned by a structured framework comprising seven elements. These elements collectively prevent, detect, and discourage potential compliance risks throughout the University, ensuring its ethical and legal integrity.

1

POLICIES AND PROCEDURES

2

OVERSIGHT

3

EDUCATION AND TRAINING

4

MONITORING AND AUDITING

Establishing clear guidelines and protocols

Upholding ethics and compliance

Empowering stakeholders

5

REPORTING

6

ENFORCEMENT AND DISCIPLINE

7

RESPONSE AND PREVENTION

Cultivating transparency and accountability

Upholding ethical commitment

Safeguarding ethical integrity

Strengthening compliance through evaluation

Figure 2: The seven elements of the CPUT Ethics and Compliance Programme

Policies and procedures: Establishing clear guidelines and protocols The number of approved policies increased significantly in 2023 (Figure 3). The number of approved policies within the Repository has risen from 22 to 34. Additionally, 35 policies are currently being assessed. With this progress, the Policy Library is anticipated to encompass at least 69 approved policies. This represents a substantial enhancement in the comprehensiveness of our policy repository.

80 70 60 50

35

40

Approved policies

30

Policies currently under review

20 10

34 22

0 Before improvement

After improvement

Figure 3: Number of approved CPUT policies 2023

Oversight: Upholding ethics and compliance Oversight is the linchpin of our University's unwavering commitment to ethical and compliant conduct. It serves as the watchful guardian, ensuring that the moral compass guiding our Institution remains true. Oversight ensures that governance and supervision adhere to the highest ethical and compliance standards.

Our Oversight Framework is a multi-tiered system that fortifies our dedication to ethical and compliant behaviour. At the pinnacle of this structure, the CMF is responsible for enforcing these standards and reporting directly to the highest authority within the University's governance, the Council, via the Governance and Ethics Committee (GEC) of Council.

86 | CPUT Annual Report 2023

Education and training: Empowering stakeholders for ethical and compliant conduct In our commitment to fostering a culture of ethics and compliance at CPUT, 2023 has marked a significant stride in equipping our stakeholders with the knowledge and skills needed for ethical and compliant behaviour. CMF spearheaded the development of ethics and compliance training videos, in collaboration with the Learning and Development (L&D) Unit. These resources were created to provide comprehensive education to our university community, and are published on our Staff Development Academy, CPUT’s L&D platform.

CMF furthered its education and training mission by conducting a specialised Data Protection and (POPIA) Awareness and Training programme. These initiatives are instrumental in fostering a community that comprehends our ethical principles and compliance standards, and integrates them into daily practices.

This commitment to education and training reflects our dedication to promoting ethics and compliance.

Monitoring and auditing: Strengthening compliance through rigorous evaluation During 2023, CMF made significant strides in its commitment to monitoring and auditing, a critical pillar of our mission to uphold the highest ethics and compliance standards. The year commenced with several audits, each designed to scrutinise and evaluate compliance across the University. Many of these audits have been successfully concluded, underscoring our dedication to proactive risk management and transparent governance.

Enforcement and discipline: Upholding ethical commitment The foundation of ethical and compliant conduct within CPUT is further fortified through enforcement and discipline. CMF ensures that these principles are not just ideals, but concrete standards, by effectively instituting measures to enforce compliance and establishing discipline when deviations occur.

CMF plays a vital role in maintaining the University's ethical commitment by enforcing our compliance standards. We diligently identify and address any deviations from our established ethical and compliance guidelines, ensuring that they are resolved transparently, and accountable. Our overarching goal is to cultivate an atmosphere where adherence to these principles is unwavering, and ethical lapses are met with appropriate action.

Through these measures, CMF upholds the ethical and compliant culture we have instilled, demonstrating our commitment to the highest standards of ethical conduct. We aim to ensure that all stakeholders are confident that our values are not just words on paper, but guiding principles that are genuinely practised.

Response and prevention: Safeguarding ethical integrity The final pillar in our Ethics and Compliance Programme is response and prevention, which plays a role in safeguarding our ethical integrity. CMF places paramount importance on developing strategies to respond to compliance incidents promptly and effectively, while simultaneously implementing proactive measures to prevent future occurrences.

Furthermore, we engaged in a compliance maturity assessment, facilitated by CPUT Internal Audit. This collaborative effort allowed us to reflect on our progress and align our compliance practices with best-in-class standards.

We aim to be proactive, address incidents when they arise, and take concerted measures to prevent their recurrence. This approach reflects our commitment to maintaining the highest ethical standards within the university community. CMF's proactive stance involves learning from past incidents, fine-tuning our compliance strategies, and bolstering our preventive efforts.

Reporting: Cultivating transparency and accountability The ethos of transparency and accountability underpins CMF's approach to reporting. In our steadfast commitment to fostering a culture of openness, CMF has made significant headway in this pivotal element of our Ethics and Compliance Programme throughout 2023.

Through response and prevention, we seek to build an institution where compliance is not merely a reaction, but a culture ingrained in every facet of our operations. Our goal is to ensure that ethical integrity remains a steadfast principle at our institution's core, assuring all stakeholders that their trust in us is well-placed.

The essence of reporting is to create a safe and accessible avenue for individuals to voice their concerns, and uphold our values of integrity and responsibility. We have actively encouraged all stakeholders to share their observations, issues, or grievances, assuring them that their voices are heard and valued. Our unwavering dedication to creating these mechanisms for reporting concerns forms the cornerstone of a university that values accountability.

Vice-Chancellor Prof NC Nhlapo

By fostering transparency and maintaining clear lines of communication, CMF is instrumental in ensuring that CPUT remains an institution guided by principles of integrity and honesty.

Our programme's reporting element assures all stakeholders that their concerns are acknowledged and acted upon, preserving our commitment to ethical and compliant conduct.

Ethics and Compliance Management | 87

88 | CPUT Annual Report 2023

Table of Contents Section 4: Finance ................................................................................................................................................ 90 4.1 Annual Financial Review ...................................................................................................................................................90 4.2 Financial Statements .......................................................................................................................................................92 Statement of Responsibility for the Financial Statements ........................................................................................................93 Approval of the Financial Statements .....................................................................................................................................93 Report of the Independent Auditors .......................................................................................................................................94 Statement of Financial Position ............................................................................................................................................ 101 Statement of Comprehensive Income .................................................................................................................................. 102 Statement of Changes in Funds ........................................................................................................................................... 104 Statement of Cash Flows ..................................................................................................................................................... 105 Notes to the Financial Statements ....................................................................................................................................... 106 1. Basis of preparation and summary of material accounting policies .................................................................................... 106 2. Property, plant and equipment ......................................................................................................................................... 114 3. Financial assets measured at fair value through profit and loss (FVTPL) ............................................................................ 116 4. Inventory ......................................................................................................................................................................... 116 5. Accounts receivable and prepayments ............................................................................................................................ 116 6. Student fees receivable ................................................................................................................................................... 117 7. Cash and cash equivalents .............................................................................................................................................. 118 8. Interest-bearing borrowings ............................................................................................................................................. 119 9. Finance costs .................................................................................................................................................................. 120 10. Other employee benefits ................................................................................................................................................ 121 11. Accounts payable and accrued liabilities ........................................................................................................................ 127 12. State appropriations – Subsidies and grants ................................................................................................................... 127 13. Revenue from contracts with customers ........................................................................................................................ 128 14. Interest received and dividends ...................................................................................................................................... 128 15. Other operating expenses .............................................................................................................................................. 128 16. Personnel costs ............................................................................................................................................................. 129 17. Deferred income............................................................................................................................................................. 129 18. Financial risk management objectives and policies.......................................................................................................... 130 19. Contingent assets, liabilities and financial guarantees...................................................................................................... 135 20. Commitments................................................................................................................................................................ 135 21. Remuneration of key Management ................................................................................................................................. 136 22. Related party transactions.............................................................................................................................................. 138 23. Events after the reporting date........................................................................................................................................ 138 24. Going concern............................................................................................................................................................... 138 Abbreviations ...................................................................................................................................................................... 139

Table of Contents | 89

Section 4: Finance

4.1 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 Cape Peninsula University of Technology (CPUT), namely tuition and residence fees, has continued to increase in 2023. This is due to an increase of 11% in gross tuition fees from: •T he annual fee increase; the mix of programmes; and the number of students enrolled; and •A n increase in the 2023 residence capacity, from 13,063 to 13,445.

The annual subsidy increased by 8%, and was due to an increase in the subsidy factor applied by DHET. The level of student debt for unfunded students continues to grow. The pattern of payments from unfunded students has not improved in 2023, and this has resulted in a significant increase in the year-end balance.

Whilst numerous options are being considered to address the student debt, there is no quick solution, given the current state of the economy and the growing indebtedness of families and communities. The debt settlement offer has continued to gain momentum, and this, coupled with the application of the financial debt clearance, should provide relief, but there will be no quick solution. Whilst the settlement offer has been extended by a further year, other options are being considered, namely, the factoring of the debt; and use of collection service providers earlier in the collection process.

The growth of the student debt has resulted in the need to increase the provision for bad debts by R196m, based on the three-year cycle and the calculated recoverability rate.

The Institution continues to benefit from the regular payment for NSFAS-funded students, but a challenge that arose in 2023 was that there is a debt owing at year-end of R70m. Whilst the NSFAS payments benefit the cashflow, the erratic nature of payments; the reversal of funding decisions; and the delays in funding decisions contribute to a degree of cashflow uncertainty, which CPUT has to manage monthly.

Backlog maintenance continues to be addressed as a priority, and has seen many projects being undertaken across all the campuses by utilising the recurrent income budget. This was achieved despite the reduction in the subsidy, and the halting of the regular Infrastructure & Efficiency Grant during the pandemic.

90 | CPUT Annual Report 2023

The leased residential offering has been maintained in 2023, and supplemented by an increase in the number of accredited residences. A delicate balance must be achieved with the provision of student accommodation, and a three-year strategy has been developed that links the annual enrolment target to the number of additional beds required. With CPUT meeting its enrolment target in 2023 and again in 2024, a clearer picture for the adding of the different categories of student accommodation – namely owned; leased; accredited; and private accommodation – has been provided.

The SHIPS 3 Project has been terminated due to funding challenges. CPUT will, however, continue with the development of a new residence on the Bellville Campus once DHET has provided approval for the reprioritisation of the funds received (Infrastructure & Efficiency Grant).

Management continues to set budget directives annually for the forthcoming budget year. This has become ever more challenging, as the subsidy increases are reduced well below the consumer price index due to the tight economic conditions experienced as a result of loadshedding. CPUT will, however, endeavour to stay on track to deliver the Vision 2030 priority projects and the CPUT Strategy. The excessive level of the salary component of the budget (at 77%) remains a concern, as it is outside of the norms set by DHET. A number of projects are being run to address this, namely, the Staff Establishment Project (started in 2023); and Project Pegasus (started in 2024).

Key highlights • The investments held by the University have performed well in 2023, resulting in growth from R1,719bn to R1,906bn.

• The work of the Investment Sub-committee continued to be very effective, which resulted in the desired investment outcomes being achieved against a background of multiple financial challenges.

•S taffing appointments and the renewal of staff contracts continue to pose a challenge. Whilst a moratorium on new appointments was introduced in late 2023, Human Capital will have to monitor the situation to reduce the cost of staffing, and to rebalance the academic and support staff ratios.

• All contractual expenditure was met for the year.

• The cash flow management processes followed by the University have ensured that it remains financially stable, but there was a need to disinvest reserves to support the ongoing operations of R50m. This, in the main, is attributed to the outstanding amount due from NSFAS. • Adequate funding was available for the first two months of 2024, and the R50m was required to top up the balance of the funds required prior to the first subsidy payment in 2024.

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 their inputs are valued.

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.

Financial ratios and extracts from the financials for the past years

2023

2022

2021

2020

2019

Current ratio

1.5:1

1.47:1

1.94:1

1.47:1

1.62:1

Quick ratio

1.53:1

1.45:1

1.92:1

1.45:1

1.63:1

Cash ratio

0.74:1

0.94:1

1.24:1

0.95:1

1.02:1

Student debt turnover ratio

1.13:1

1.18:1

1.10:1

1.10:1

1.17:1

Net (loss)/gain on residences (million)

(R2,93)

(R62,30)

(R16,70)

(R14,50)

R6,20

Salaries as % of recurring income

58,1%

59,4%

57,0%

55,5%

56,4%

Other current operating expenses as % of recurring income

21,4%

20,9%

22,4%

18,2%

23,3%

State subsidies as % of recurring income

47,1%

47,8%

54,0%

55,3%

56,5%

Tuition and other fee income as % of recurring income

47,1%

46,7%

41,5%

38,8%

37,2%

Private gifts & donations as % of recurring income

1,4%

0,7%

0,2%

0,5%

0,2%

Sustainability ratio (Council-controlled reserves only) (Council-controlled reserves/ annual recurrent expenditure on Council-controlled expenditure)

0.96

0.94

1.06

0.87

0.91

Sustainability ratio (total CPUT reserves) total CPUT reserves/ annual recurrent expenditure

0.70

0.68

0.82

0.74

0.78

Executive Director: Finance

Chairperson: Finance Committee

Mr PC Du Plessis

Mr B Schreuder

Annual Financial Review | 91

4.2 Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2023

92 | financial CPUT Annual statements Report 2023

Statement of Responsibility for the Financial Statements

Approval of 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 on pages 101 to 138 were approved by the Council of the Cape Peninsula University of Technology on 22 June 2024, and are signed on its behalf by:

The annual financial statements, presented on pages 101 to 138 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, Deloitte & Touche, 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.

Chairperson of Council Dr LF Platzky

Vice-Chancellor Prof NC Nhlapo

Executive Director: Finance Mr PC Du Plessis

Financial Statements | 93

Private Bag X6 Deloitte & Touche Gallo Manor 2052 Registered Auditors South Africa Audit & Assurance Gauteng Deloitte 5 Magwa Crescent Waterfall City Waterfall 2090 Docex 10 Johannesburg Tel: +27 (0)11 806 5000 www.deloitte.com

Independent auditor’s report to the Minister of Higher Education, Science and Technology on the Cape Peninsula University of Technology Report on the audit of the financial statements Opinion 1.

We have audited the financial statements of the Cape Peninsula University of Technology set out on pages 101 to 138, which comprise the statement of financial position as at 31 December 2023, statement of comprehensive income, statement of changes in funds and statement of cash flows for the year then ended, as well as notes to the financial statements, including a summary of material accounting policy information.

2.

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Cape Peninsula University of Technology as at 31 December 2023 and its financial performance and cash flows for the year then ended in accordance with the with IFRS Accounting Standards as issued by the International Accounting Standards Board and the requirements of the Higher Education Act and the Regulations for reporting by Public Higher Education Institutions, 2014, issued in terms of the Higher Education Act of South Africa,1997 (HEA).

Basis for opinion 3.

We conducted our audit in accordance with the 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.

4.

We are independent of the University in accordance with the Code of professional conduct for auditors of the Independent Regulatory Board for Auditors (IRBA) 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).

5.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other matter/s 6.

We draw attention to the matter below. Our opinion is not modified in respect of this matter.

Previous period audited by a predecessor auditor 6.1 The financial statements of the previous year were audited by a predecessor auditor in terms of section 4(3) of the Public Audit Act 25 of 2004 on 28 June 2023.

National Executive: *R Redfearn Chief Executive Officer *GM Berry Chief Operating Officer JW Eshun Managing Director Businesses LN Mahluza Chief People Officer *N Sing Chief Risk Officer AP Theophanides Chief Sustainability Officer *NA le Riche Chief Growth Officer *ML Tshabalala Audit & Assurance AM Babu Consulting TA Odukoya Financial Advisory G Rammego Risk Advisory DI Kubeka Tax & Legal DP Ndlovu Chair of the Board Regional Leader: C Nel A full list of partners and directors is available on request * Partner and Registered Auditor B-BBEE rating: Level 1 contribution in terms of the DTI Generic Scorecard as per the amended Codes of Good Practice Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited

Responsibilities of Council for the financial statements 7.

The Council, is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and the requirements of the Higher Education Act and the Regulations for reporting by Public Higher Education Institutions, 2014, issued in terms of the Higher Education Act of South Africa,1997 (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.

8.

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 accounting authority either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the auditor for the audit of the financial statements 9.

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 the 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

10. A further description of our responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

Report on the audit of the annual performance report 11. In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, we must audit and report on the usefulness and reliability of the reported performance against predetermined objectives for the selected objectives presented in the annual performance report. The Council is responsible for the preparation of the annual performance report.

12. We selected the following objectives presented in the annual performance report for the year ended 31 December 2023 for auditing. We selected objectives that measures the University’s performance on its primary mandated functions and that is of significant national, community or public interest.

Objective

Page numbers

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

31

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

32

13. We evaluated the reported performance information for the selected objectives against the criteria developed from the performance management and reporting framework, as defined in the general notice. When an annual performance report is prepared using these criteria, it provides useful and reliable information and insights to users on the University’s planning and delivery on its mandate and objectives.

14. We performed procedures to test whether: • the indicators used for planning and reporting on performance can be linked directly to the University’s mandate and the achievement of its planned objectives • all the indicators relevant for measuring the University’s performance against its primary mandated and prioritised functions and planned objectives are included • the indicators are well defined to ensure that they are easy to understand and can be applied consistently, as well as verifiable so that we can confirm the methods and processes to be used for measuring achievements • the targets can be linked directly to the achievement of the indicators and are specific, time bound and measurable to ensure that it is easy to understand what should be delivered and by when, the required level of performance as well as how performance will be evaluated • the indicators and targets reported on in the annual performance report are the same as those committed to in the approved initial or revised planning documents 95

• the reported performance information is presented in the annual performance report in the prescribed manner and is comparable and understandable • there is adequate supporting evidence for the achievements reported and for the reasons provided for any over or underachievement of targets 15. We performed the procedures for the purpose of reporting material findings only; and not to express an assurance opinion or conclusion.

16. We did not identify any material findings on the reported performance information for the selected objectives.

Other matter 17. We draw attention to the matter below.

Achievement of planned targets 17.1 The annual performance report includes information on reported achievements against planned targets and provides explanations for over- and under achievements. This information should be considered in the context of the material findings on the reported performance information.

17.2 Refer to the Performance Assessment Report of the Annual Report for the year ended 31 December 2023 for information on the achievement of planned targets for the year and management’s explanations provided for the over and underachievement of targets.

Report on compliance with legislation 18

In accordance with the PAA and the general notice issued in terms thereof, we must audit and report on compliance with applicable legislation relating to financial matters, financial management and other related matters. The Council is responsible for the University’s compliance with legislation.

19

We performed procedures to test compliance with selected requirements in key legislation in accordance with the AGSA findings engagement methodology. This engagement is not an assurance engagement. Accordingly, we do not express an assurance opinion or conclusion.

20

Through an established AGSA process, we selected requirements in key legislation for compliance testing that are relevant to the financial and performance management of the University, clear to allow consistent measurement and evaluation, while also sufficiently detailed and readily available to report in an understandable manner. The selected legislative requirements are included in the annexure to this auditor’s report.

21

We did not identify any material non-compliance with the selected legislative requirements.

Other information in the annual report 22

The Council is responsible for the other information. The other information comprises the information included in the annual report of the Cape Peninsula University of Technology titled “Cape Peninsula University of Technology 2023 Annual Report”, which includes the Report of the Chairperson of Council, Vice-Chancellor’s Report on Management and Administration, Registrar’s Report, Report on Corporate Governance, Council Statement on Sustainability, Report of the Institutional Forum, Convocation Report, Senate Report, Report on internal administrative/ operational structures and financial controls, Operating effectiveness, Human Capital, Transformation, Enterprise Risk Management, Quality assurance and risk management committee, Ethics and Compliance management and the Report of the Audit and Risk Oversight Committee. The other information does not include the financial statements, the auditor’s report and those selected objectives presented in the annual performance report that have been specifically reported on in this auditor’s report.

23

Our opinion on the financial statements and our findings on the reported performance information and the report on compliance with legislation do not cover the other information and we do not express an audit opinion or any form of assurance conclusion on it.

24

In connection with our audit, 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.

25

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.

96 | CPUT Annual Report 2023

Internal control deficiencies 26

We considered internal control relevant to our audit of the financial statements, annual performance report and compliance with applicable legislation; however, our objective was not to express any form of assurance on it.

27

We did not identify any significant deficiencies in internal control.

Other reports 28

We draw attention to the following engagements conducted by various parties. 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

Agreed-upon procedures 28.1

Agreed-upon procedures engagements were performed for grants, other funding and similar items. Below is the list of Agreed-upon procedures engagements performed or are in the process of being performed:

Engagement name HEMIS DHET Student and Financial Data

Year end

Description

Due Date

Status

31 December 2023

31/07/2024

In Progress

Supplementary Schedules

31 December 2023

30/06/2024

In Progress

Deloitte

NRF Grant Deposit National Research Fund (NRF) Extended Curriculum Programme (ECP)

31 December 2023

Verification of various information relating to the HEMIS submission to DHET. Financial report submitted in the format required by DHET Verification procedures performed over the grants received and its utilization.

Party performing the engagement Deloitte

14/03/2024

Complete

Deloitte

31/05/2024

Complete

Deloitte

•

Technology stations in Agrifood Technology stations in Clothing & Textile

31 December 2023

31/05/2024

Complete

Deloitte

Subsidy Claim for Research Output

31 December 2023

31/05/2024

Complete

Deloitte

New generation of academics programme staffing South Africa’s university frameworkNGAP.

31 December 2023

A mechanism supported by the national Department of Higher Education and Training, which aims to improve graduation and throughput rates of students in South African Universities The Technology Stations (TSs) provide innovative Science, Engineering and Technology (SET) solutions for complex engineering challenges within the relevant industrial sectors aimed at supporting government's socioeconomic priorities.

Verification procedures on the research output of the university as reported to DHET Verification procedures performed over the grant received and its utilization.

31/05/2024

Complete

Deloitte

•

31 December 2023

| 97

NESP - The Nutrition Emerging Scholars Programme.

DHET Grants: • University capacity development grant.

• University Capacity Development Programme • Clinical training grant • Clinical Enrolment Grant • Foundation provision grant.

• Infrastructure and Efficiency grant.

31 December 2023

Verification procedures performed over the grant received and its utilization.

31/05/2024

Complete

Deloitte

31 March 2024

Agreed upon procedures to assist in indicating whether the funding was utilised in accordance with the DHET requirements and the related proposals/ agreements submitted.

31/05/2024

Complete

Deloitte

Auditor tenure 29

In terms of the IRBA rule published in Government Gazette No. 39475 dated 4 December 2015, we report that Deloitte has been the auditor of Cape Peninsula University of Technology for 1 year.

DocuSigned by:

Deloitte & Touche Registered Auditor

Per: Emmanuel Ramasodi CA(SA); RA Partner 27 June 2024 5 Magwa Crescent Waterfall City Waterfall Johannesburg 2090

98 | CPUT Annual Report 2023

Annexure to the auditor’s report The annexure includes the following: •

the auditor’s responsibility for the audit

•

the selected legislative requirements for compliance testing.

Auditor’s responsibility for the audit Professional judgement and professional scepticism 1.

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 selected requirements in key legislation.

Financial statements 30

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 Council.

•

conclude on the appropriateness of the 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 relating to events or conditions that may cast significant doubt on the ability of the University 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 our 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 a university to cease operating as a going concern.

•

evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance 31

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.

32

We also provide the Council with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to have a bearing on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.

| 99

Compliance with legislation – selected legislative requirements 1.

The selected legislative requirements are as follows: Legislation

Sections or regulations

Higher Education Act, Act, 101 of 1997

Asset Management Sections 20 (5); 40(3)(a)(i); 40(3)(a)(ii) and 40(3)(a)(iii).

Procurement and Contract Management Sections 27(7)(c); 27(7)(e ); 27(7)(A)-(C ); 34(4)(a); 34(4)(b); 34(5) and 34(6) Annual Financial statements Section 41(1)(b)(ii) and 49U(1)

Public Audit Act 25 of 2004

Annual financial statements Section 14(2)b

Regulations for Reporting by Public Higher Education Institutions

Strategic Planning Regulations 4(1); 4(2); 5(1); 5(2)(a); 5(2)(d); 5(2)(g); 5(2)(m) and 6(2)(a – d) Annual Financial Statements Regulations 7(4)(b)(xii) and 7(4)(b)(xii)

Prevention of Corrupt Activities Act, Act 12 of 2004

Consequence Management Section 34 (1)

100 | CPUT Annual Report 2023

STATEMENT OF FINANCIAL POSITION as at 31 December 2023

Note

2023

2022

R

R

4 905 297 771

4 976 918 249

ASSETS Non-current assets Property, plant and equipment

2.1

2 035 106 244

2 008 553 937

Right-of-use assets

2.2

958 082 909

1 249 539 735

Financial assets measured at fair value

3

1 912 108 618

1 718 824 577

1 188 785 436

1 122 892 573

Current assets Inventory

4

9 054 471

18 015 613

Accounts receivable and prepayments

5

59 796 487

16 564 236

Student fees receivable

6

550 778 721

367 203 648

Cash and cash equivalents

7

569 155 757

721 109 076

6 094 083 207

6 099 810 822

Accumulated funds

2 423 889 454

2 272 253 139

Council-controlled unrestricted funds

2 332 318 249

2 155 553 402

91 571 205

116 699 737

2 892 879 887

3 068 588 566

TOTAL ASSETS

FUNDS AND LIABILITIES

Specifically-restricted funds

Non-current liabilities Interest-bearing borrowings

8.1

-

15 546 167

Lease liabilities

8.2

810 538 794

1 074 050 781

Employee accumulative leave liability

10.1

17 092 000

19 232 000

Post-retirement medical aid obligation

10.2

789 343 215

735 050 502

Pension fund obligation

10.3

359 000

3 228 543

Government grants – Deferred income

17.2

1 275 546 878

1 221 480 573

777 313 866

758 969 117

Current liabilities Current portion of interest-bearing borrowings

8.1

18 294 787

19 419 848

Current portion of lease liabilities

8.2

270 965 935

297 978 307

Employee annual leave liability

10.1

7 168 718

7 368 725

Employee accumulative leave liability

10.1

8 045 000

9 014 000

Accounts payable and accrued liabilities

11

462 887 190

415 236 000

Government grants – Deferred income

17.2

9 952 236

9 952 237

6 094 083 207

6 099 810 822

TOTAL FUNDS AND LIABILITIES

Financial Statements | 101

STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2023 2023

2022

Councilcontrolled unrestricted R

Specificallyfunded activities restricted R

SUB-TOTAL R

Student accommodation restricted R

TOTAL INCOME

2 590 043 746

383 151 559

2 973 195 305

RECURRENT REVENUE

2 454 832 365

382 827 812

Note

TOTAL R

TOTAL R

635 072 716

3 608 268 021

3 201 640 869

2 837 660 177

635 121 049

3 472 781 226

3 194 598 661

State appropriations – Subsidies and grants

12

1 413 169 269

222 396 822

1 635 566 091

-

1 635 566 091

1 526 215 563

Tuition and residence fees

13.1

909 913 747

93 204 120

1 003 117 867

633 357 399

1 636 475 266

1 490 337 793

Gross tuition and residence fees

920 897 661

93 208 230

1 014 105 891

633 394 230

1 647 500 121

1 499 964 530

Less: Bursaries and rebates awarded

(10 983 914)

(4 110)

(10 988 024)

(36 831)

(11 024 855)

(9 626 737)

-

3 886 877

3 886 877

-

3 886 877

14 564 631

for research

-

3 886 877

3 886 877

-

3 886 877

14 559 313

for other activities

-

-

-

-

-

5 318

Income from contracts:

Rendering of services

13.2

13.1

Private gifts and donations SUB-TOTAL

4 077 294

14 824 219

18 901 513

1 763 650

20 665 163

39 513 016

-

47 075 838

47 075 838

-

47 075 838

23 378 032

2 327 160 310

381 387 876

2 708 548 186

635 121 049

3 343 669 235

3 094 009 035

Interest based on effective interest rate model

14

54 687 680

1 439 936

56 127 616

-

56 127 616

38 870 888

Interest income and dividends

14

72 984 375

-

72 984 375

-

72 984 375

61 718 738

135 211 381

323 747

135 535 128

(48 333)

135 486 795

7 042 208

(108 667)

(31 185)

(139 852)

(48 333)

(188 185)

(672 228)

127 981 577

-

127 981 577

-

127 981 577

(2 876 525)

7 338 471

354 932

7 693 403

-

7 693 403

10 590 961

2 422 496 391

408 280 091

2 830 776 482

638 008 975

3 468 785 457

3 362 679 478

NON-RECURRENT INCOME (Loss)/Gain on scrapping/disposal of property, plant & equipment Movement in investment market value

3

Other non-recurrent income TOTAL EXPENDITURE

-

RECURRENT EXPENDITURE

2 422 496 391

408 280 091

2 830 776 482

638 008 975

3 468 785 457

3 362 679 478

1 782 832 910

205 996 567

1 988 829 477

29 511 443

2 018 340 920

1 898 491 303

Academic professional

818 789 670

107 193 816

925 983 486

401 409

926 384 895

858 602 855

Other personnel

964 043 240

98 802 751

1 062 845 991

29 110 034

1 091 956 025

1 039 888 448

Personnel

16

Expected credit loss

5&6

133 249 739

7 464 074

140 713 813

55 306 015

196 019 828

268 810 195

Other operating expenses

15

452 092 807

128 549 486

580 642 293

164 086 722

744 729 015

667 254 204

Depreciation

2

45 120 932

26 373 803

71 494 735

304 479 254

375 973 989

386 306 361

2 413 296 388

368 383 930

2 781 680 318

553 383 434

3 335 063 752

3 220 862 063

9 200 003

39 896 161

49 096 164

84 625 541

133 721 705

141 817 415

NET SURPLUS/(LOSS) FOR THE YEAR

167 547 355

(25 128 532)

142 418 823

(2 936 259)

139 482 564

(161 038 609)

OTHER COMPREHENSIVE INCOME

12 153 751

-

12 153 751

-

12 153 751

19 359 868

SUB-TOTAL Finance costs

9

Items which will never be reclassified to surplus/(loss): Remeasurements of the pension fund obligation

10.3

3 033 543

-

3 033 543

-

3 033 543

12 178 000

Remeasurements of the post-retirement medical aid obligation

10.2

9 120 208

-

9 120 208

-

9 120 208

7 181 868

179 701 106

(25 128 532)

154 572 574

(2 936 259)

151 636 315

(141 678 741)

TOTAL COMPREHENSIVE SURPLUS/(LOSS)

102 | CPUT Annual Report 2023

STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2023 2022 Councilcontrolled unrestricted R

Specificallyfunded Activities restricted R

SUB-TOTAL R

Student accommodation restricted R

TOTAL INCOME

2 289 517 980

314 941 721

2 604 459 701

597 181 168

3 201 640 869

RECURRENT REVENUE

2 288 214 138

309 199 829

2 597 413 967

597 184 694

3 194 598 661

Note

TOTAL R

State appropriations – Subsidies and grants

12

1 355 338 965

170 876 598

1 526 215 563

-

1 526 215 563

Tuition and residence fees

13.1

828 578 087

71 029 216

899 607 303

590 730 490

1 490 337 793

Gross tuition and residence fees

838 037 963

71 126 022

909 163 985

590 800 545

1 499 964 530

Less: Bursaries and rebates awarded

(9 459 876)

(96 806)

(9 556 682)

(70 055)

(9 626 737)

-

14 564 631

14 564 631

-

14 564 631

for research

-

14 559 313

14 559 313

-

14 559 313

for other activities

-

5 318

5 318

-

5 318

5 187 047

27 871 765

33 058 812

6 454 204

39 513 016

Income from contracts:

13.2

Rendering of services

13.1

Private gifts and donations

13.1

SUB-TOTAL Interest based on effective interest rate model Interest income and dividends

14

-

23 378 032

23 378 032

-

23 378 032

2 189 104 099

307 720 242

2 496 824 341

597 184 694

3 094 009 135

37 391 301

1 479 587

38 870 888

-

38 870 888

61 718 738

-

61 718 738

-

61 718 738

61 718 738

-

61 718 738

-

61 718 738

1 303 842

5 741 892

7 045 734

(3 526)

7 042 208

52 212

(706 187)

(653 975)

(18 253)

(672 228)

(2 876 525)

-

(2 876 525)

-

(2 876 525)

4 128 155

6 448 079

10 576 234

14 727

10 590 961

TOTAL EXPENDITURE

2 286 938 216

416 208 824

2 703 147 040

659 532 438

3 362 679 478

RECURRENT EXPENDITURE

2 286 938 216

416 208 824

2 703 147 040

659 532 438

3 362 679 478

1 649 885 663

219 653 164

1 869 538 827

28 952 476

1 898 491 303

Academic professional

750 960 686

107 255 680

858 216 366

386 489

858 602 855

Other personnel

898 924 977

112 397 484

1 011 322 461

28 565 987

1 039 888 448

14

NON-RECURRENT INCOME Gain/(Loss) on scrapping/disposal of property, plant & equipment Movement in investments market value

3

Other non-recurrent income

Personnel

16

Expected credit loss

5&6

189 632 941

11 294 584

200 927 525

67 882 670

268 810 195

Other operating expenses

15

381 428 840

137 446 287

518 875 127

148 379 077

667 254 204

Depreciation

2

50 217 425

26 770 362

76 987 787

309 318 574

386 306 361

2 271 164 869

395 164 397

2 666 329 266

554 532 797

3 220 862 063

15 773 347

21 044 427

36 817 774

104 999 641

141 817 415

NET SURPLUS/(LOSS) FOR THE YEAR

2 579 764

(101 267 103)

(98 687 339)

(62 351 270)

(161 038 609)

OTHER COMPREHENSIVE INCOME

19 359 868

-

19 359 868

-

19 359 868

SUB-TOTAL Finance costs

9

Items which will never be reclassified to surplus/(loss): Remeasurements of the pension fund obligation

10.3

12 178 000

-

12 178 000

-

12 178 000

Remeasurements of the post-retirement medical aid obligation

10.2

7 181 868

-

7 181 868

-

7 181 868

21 939 632

(101 267 103)

(79 327 471)

(62 351 270)

(141 678 741)

TOTAL COMPREHENSIVE SURPLUS/ (LOSS)

Financial Statements | 103

STATEMENT OF CHANGES IN FUNDS for the year ended 31 December 2023

Balance at 31 December 2021

Council-controlled unrestricted funds R

Specificallyrestricted funds R

2 195 965 040

217 966 840

1 490 595 161

Total comprehensive income

Student accommodation funds R

TOTAL R

-

2 413 931 880

-

1 752 179 160

21 939 632

(101 267 103)

(62 351 270)

(141 678 741)

Net surplus/(loss) for the year

2 579 764

(101 267 103)

(62 351 270)

(161 038 609)

Remeasurements of the pension fund obligation

12 178 000

-

-

12 178 000

Remeasurements of the post-retirement medical aid obligation

7 181 868

-

-

7 181 868

(62 351 270)

-

62 351 270

-

Balance at 31 December 2022

2 155 553 402

116 699 737

-

2 272 253 139

Total comprehensive income

179 701 106

(25 128 532)

(2 936 259)

151 636 315

Net surplus for the year

167 547 355

(25 128 532)

(2 936 259)

139 482 564

Remeasurements of the pension fund obligation

3 033 543

-

-

3 033 543

Remeasurements of the post-retirement medical aid obligation

9 120 208

-

-

9 120 208

Transfers – Credits/(debits)

Transfers – Credits/(debits)

(2 936 259)

-

2 936 259

-

Balance at 31 December 2023

2 332 318 249

91 571 205

-

2 423 889 455

104 | CPUT Annual Report 2023

STATEMENT OF CASH FLOWS for the year ended 31 December 2023 2023 R

2022 R

Cash receipts from Government

1 599 888 223

1 474 666 897

Cash receipts from students and other customers

1 488 488 747

1 618 507 644

Cash paid to employees and suppliers

(2 866 244 559)

(2 811 187 683)

222 132 412

281 986 858

Note Cash flow from operating activities

Cash generated in operations Dividends received

23 281 574

29 705 304

Interest income

103 425 362

67 067 258

Finance costs

(93 825 543)

(120 192 109)

Net cash flows from operating activities

255 013 804

258 567 311

14

Cash flow from investing activities Purchase of property, plant and equipment

2

(88 420 872)

(36 476 355)

Purchase of investments

3

(289 410 127)

(309 926 937)

Proceeds from disposals of investments

224 107 663

255 458 453

Cash flows from investing activities

(153 723 336)

(90 944 839)

Cash from financing activities Repayment of loans

8.3

(16 671 228)

(19 271 191)

Payment of principal on lease liabilities

8.3

(299 171 428)

(262 401 738)

Grants received

17

62 598 869

39 108 804

Cash flows from financing activities

(253 243 787)

(242 564 125)

(Decrease) in cash and cash equivalents

(151 953 318)

(74 941 653)

Cash and cash equivalents at beginning of year

721 109 075

796 050 728

569 155 757

721 109 075

139 482 564

(161 038 609)

Cash and cash equivalents at end of year

7

Reconciliation of net surplus/(loss) to cash utilised in operations: Net surplus/(loss) Adjusted for: Depreciation on property, plant and equipment

2

375 973 989

386 306 361

Government grants released to income

17

(48 428 726)

(51 548 657)

Loss on sale of property, plant and equipment

14

188 185

672 228

Interest income

14

(105 830 417)

(70 884 324)

(23 281 574)

(29 705 304)

Dividends received Interest paid

133 721 705

141 817 416

Movement in investments market value

3

(127 981 577)

2 876 525

Movement in post-retirement employee obligations

10.3

62 829 715

25 890 651

406 673 864

244 386 287

Movement in working capital Increase/(Decrease) in employee leave liability

10.1

(3 309 007)

(28 194 956)

Increase/(Decrease) in accounts receivables, student fees and prepayments

5-6

(226 807 324)

43 873 305

(2 076 310)

(4 364 884)

47 651 189

26 287 106

222 132 412

281 986 858

(Increase)/Decrease in inventories Accounts payable, accrued liabilities and student deposits Cash generated from operations

11

Financial Statements | 105

Notes to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2023 1. Basis of preparation and summary of material 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 2023 were authorised for issue in accordance with a resolution of Council on 22 June 2024.

The principal activities of the University relate to teaching, research, and the provision of residential accommodation to students.

106 | CPUT Annual Report 2023

Statement of compliance The financial statements of the Cape Peninsula University of Technology have been prepared in accordance with and comply with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS) and, in the manner required by the Minister of Higher Education and Training in terms of Section 41 of the Higher Education Act 101 of 1997 (as amended).

Summary of material accounting policies Management has considered the principles of materiality in IFRS practice statements, making materiality judgments, and only those accounting policies that are considered material have been presented in the financial statements.

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 2023 Several amendments to IFRS became effective for periods beginning on or after 1 January 2023, however, they did not have a material impact on the University.

Changes in accounting estimates (IAS 8) 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.

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; •T hat 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.

1.2 Material 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 year-end, as well as events potentially impacting the recoverability of fees receivable.

An expected credit loss is raised based on these estimates. The carrying value of student fees receivable at 31 December 2023 was R550 778 721 (2022: R367 203 648). 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 2023 was R 2 035 106 243 (2022: R2 008 553 937). 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 2023 was R958 082 909 (2022: R1 249 539 735).

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 2023, 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 2023 is a liability of R789 343 215 (2022: R735 050 502).

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 2023, 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 2023 was R359 000 (2022: R3 228 543) 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

Financial Statements | 107

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 specificallyfunded 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 non-monetary 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.

108 | CPUT Annual Report 2023

If the funding is provided in advance of the specified requirements or conditions (i.e., the University does not have immediate entitlement to it), the relevant revenue is deferred, and a liability raised until the University has complied with all the requirements or conditions.

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 contracts 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 goods or services transfers 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.

Financial Statements | 109

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: Useful life Land

Indefinite

Buildings

5 to 200 years

Leasehold improvements

Lease period

Motor vehicles

5 to 12 years

Furniture and equipment

1 to 15 years

Computer equipment

3 to 12 years

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.

110 | CPUT Annual Report 2023

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.

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 •T he 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 as at year-end 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 include 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.

Gain 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 realised the assets and settle the liabilities simultaneously. In 2023, the University offset a trade payable with a trade receivable to the value of RNil (2022: RNil)

Financial Statements | 111

1.13 Inventories

are recognised as expenses in the period in which the event or condition that triggers the payment occurs.

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 accumulate 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

112 | CPUT Annual Report 2023

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 in 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 that 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 Accumulated leave provision 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.

Annual leave provision 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 2023 for 6 months after

the reporting date. This benefit only vests with the employee in the year in which it accrues. 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 2023. 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.

1.16

Cash and cash equivalents

Cash and short-term deposits in the Statement of Financial Position comprise of cash at banks, cash on hand, and shortterm highly liquid deposits with a maturity of 3 months or less, that are held for the purpose of meeting short-term cash commitments, and are readily convertible to a known amount of cash, and subject to an insignificant risk of change in value.

1.17

Provisions and contingencies

Provisions are recognised when the University has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the Statement of Profit or Loss.

1.18

Accumulated funds

Accumulated funds is divided into the following categories: •C ouncil-controlled funds Comprises of income and funds that fall under the absolute discretion or control of the Council.

•S pecifically-restricted funds Comprises of income received, the use of which is legally beyond the control of Council. These funds have specific restrictions placed on them.

Financial Statements | 113

2. Property, plant and equipment Land and buildings

Leasehold improvements

Furniture and equipment

Computer equipment

Motor vehicles

Total

R

R

R

R

R

R

2023 Cost Cost 1 January 2023

2 207 304 226

24 596 923

205 024 677

204 919 405

14 549 039

2 656 394 270

Additions

24 585 749

1 112 946

43 952 801

33 884 905

498 090

104 034 491

Disposals/Scrapping

(3 606 384)

-

(1 838 494)

(6 825 151)

-

(12 270 029)

Reclassification

25 709 869

(25 709 869)

-

-

-

-

2 253 993 460

-

247 138 984

231 979 159

15 047 129

2 748 158 732

Cost 31 December 2023

2 069 240 436

24 328 394

277 112 351

185 499 084

16 611 199

3 891 015 891

Balance 1 January 2022

355 076 107

14 501 566

112 447 441

157 533 794

8 281 425

647 840 333

Depreciation charge

29 674 058

331 542

15 619 769

28 549 351

1 695 375

75 870 095

Disposals/Scrapping

(1 181 890)

(47 570)

(1 911 870)

(6 447 079)

(1 069 531)

(10 657 940)

Reclassification

14 785 538

(14 785 538)

-

-

-

-

Balance 31 December 2023

398 353 813

-

126 155 340

179 636 066

8 907 269

713 052 488

1 855 639 647

-

120 983 644

52 343 093

6 139 860

2 035 106 243

2 166 602 190

24 596 923

228 346 303

195 090 468

15 619 615

2 630 255 499

23 204 102

-

14 824 052

21 883 619

631 925

60 543 698

Accumulated depreciation

Carrying value 31 December 2023 2022 Cost Cost 1 January 2022 Additions Disposals/Scrapping

-

-

(38 145 678)

(12 054 682)

(2 864 769)

(53 065 129)

Reclassification

(12 616 362)

-

-

-

-

(12 616 362)

Zero-book value adjustment

30 114 296

-

-

-

1 162 268

31 276 564

2 207 304 226

24 596 923

205 024 677

204 919 405

14 549 039

2 656 394 270

Balance 1 January 2022

295 868 396

14 166 393

134 657 487

137 773 371

6 688 787

589 154 434

Depreciation charge

29 186 159

335 173

15 352 994

31 475 228

2 132 870

78 482 424

Disposals/Scrapping

(92 744)

-

(37 563 040)

(11 714 805)

(1 702 500)

(51 073 089)

Cost 31 December 2022 Accumulated depreciation

Reclassification

-

-

-

-

-

-

Zero-book value adjustment

30 114 296

-

-

-

1 162 268

31 276 564

Balance 31 December 2022

355 076 107

14 501 566

112 447 441

157 533 794

8 281 425

647 840 333

1 852 228 119

10 095 357

92 577 236

47 385 611

6 267 614

2 008 553 937

Carrying value 31 December 2022

2.1

Property, plant and equipment (continued)

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 R54 654 421 (2022: R54 654 421) 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 R18 294 787 (2022: R34 923 187).

Refer to Note 8.1.

114 | CPUT Annual Report 2023

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.

Land and buildings

Furniture and equipment

Motor vehicles

Total

27 143 768

1 962 120 060

Cost As at 1 January 2023

1 934 976 292

-

Additions

8 647 068

-

-

8 647 068

Termination/Modifications

(6 570 043)

-

-

(6 570 043)

Reclassification as at 31 December 2023

-

-

-

-

1 937 053 317

-

27 143 768

1 964 197 085

Balance at 1 January 2023

(687 014 683)

-

(25 565 642)

(712 580 325)

Depreciation

(298 525 768)

-

(1 578 126)

(300 103 894)

Accumulated depreciation

Termination/Modifications as at 31 December 2023

Carrying value 31 December 2023

6 570 043

-

-

6 570 043

(978 970 408)

-

(27 143 768)

(1 006 114 176)

958 082 909

-

-

958 082 909

1 702 387 643

36 079 726

23 434 218

1 761 901 587

Cost Balance at 1 January 2022 Additions

410 250 021

-

3 709 550

413 959 571

Termination/Modifications

(190 277 734)

(36 079 726)

-

(226 357 460)

12 616 362

-

-

12 616 362

1 934 976 292

-

27 143 768

1 962 120 060

As at 1 January 2022

(575 406 843)

(36 079 726)

(19 627 280)

(631 113 849)

Depreciation

(301 885 574)

-

(5 938 362)

(307 823 936)

Reclassification as at 31 December 2022

Accumulated depreciation

Termination/Modifications as at 31 December 2022

Carrying value 31 December 2022

190 277 734

36 079 726

-

226 357 460

(687 014 683)

-

(25 565 642)

(712 580 325)

1 247 961 609

-

1 578 126

1 249 539 735

Financial Statements | 115

3. Financial assets measured at fair value through profit and loss (FVTPL) Opening balance

2023 R

2022 R

1 718 824 577

1 667 232 618

Additions

289 410 127

309 926 937

Disposals

(224 107 663)

(255 458 453)

Movement in investment market value

127 981 577

(2 876 525)

1 912 108 618

1 718 824 577

Equities – Local

125 837 192

173 590 542

Equities – Foreign

180 484 880

57 840 650

Unit trusts – Local

1 111 365 797

1 109 190 056

Unit trusts – Foreign

75 270 039

55 799 462

Interest-bearing bonds – Local

156 911 969

138 603 362

Closing balance Investments comprise of the following:

Interest-bearing bonds – Foreign

21 203 993

13 314 832

Money market deposits – Local

238 080 621

169 732 146

Money market deposits – Foreign Financial assets measured at fair value

2 954 127

753 527

1 912 108 618

1 718 824 577

Investments comprised investments in equities, interest-bearing bonds, unit trust and money market deposits, which are all listed on recognised markets. Consequently, the only investments with fixed maturity dates are the interest-bearing bonds, disclosed in Note 18. There are no significant terms and conditions attached to the investments.

Included in the "Money market – Local" are Standard Bank current accounts with a balance at year-end of R113 876 015 (2022: R69 88 010) that is managed by the University's investment managers for the settlement of investment transactions, inter-portfolio settlement, and rebalancing.

4. Inventory 2023 R

2022 R

Consumables

7 642 986

14 719 590

Jewellery

1 022 650

479 718

Food and beverage

88 835

39 055

Student laptops

300 000

2 777 250

9 054 471

18 015 613

An amount of R2 477 250 relating to inventory was written off in the current year (2022: RNil).

5. Accounts receivable and prepayments 2023 R

2022 R

Financial instruments

36 048 520

15 055 768

Other receivables

23 623 837

9 065 379

Trade receivables

20 445 962

13 830 797

Less: Expected credit loss – Trade receivables

(8 021 279)

(7 840 408)

Non- financial instruments

23 747 967

1 508 468

Prepayments

23 206 274

425 395

VAT receivable

541 693

1 083 073

59 796 487

16 564 236

Total accounts receivable and repayments

116 | CPUT Annual Report 2023

Accounts receivable 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 R8 021 279 (2022: R7 840 408) were considered high credit risk, and were fully impaired.

Current R

30 Days R

60 Days R

90 Days + R

Total R

2023

816 711

4 447 145

21 626 203

17 179 740

44 069 799

2022

1 622 168

2 533 725

2 774 650

15 965 633

22 896 176

Movements in the expected credit loss of accounts receivable were as follows: Collectively impaired At 31 December 2021

(10 943 751)

Utilised

4 916 899

Additional provision

(1 813 556)

At 31 December 2022

(7 840 408)

Utilised

2 372 091

Provision released

(2 552 962)

At 31 December 2023

(8 021 279) Current R

30 Days R

60 Days R

90 Days + R

Total R

Expected credit loss rate

0,57%

11,77%

25,23%

46,85%

39,23%

Estimated total gross carrying amount at default

816 711

2 376 960

1 596 464

15 655 828

20 445 963

4 618

279 760

402 814

7 334 087

8 021 279

Current R

30 Days R

60 Days R

90 Days + R

Total R

2,57%

72,25%

29,97%

67,01%

56,69%

1 622 168

702 883

1 131 776

10 373 970

13 830 797

41 637

507 818

339 201

6 951 752

7 840 408

2023

Expected credit loss

2022 Expected credit loss rate Estimated total gross carrying amount at default Expected credit loss

6. Student fees receivable 2023 R

2022 R

Student debtors

1 568 728 815

1 320 526 996

Less : Expected credit loss

(1 017 950 094)

(953 323 348)

550 778 721

367 203 648

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 expected credit loss, the University considers all forward-looking information available at reporting date in respect of irrecoverable student debtors to be R1 017 950 094 (2022: R953 323 348). The remaining student balance of R550 778 721 (2022: R367 203 648) relates to student fees from currently registered students and externally funded students, which are considered a low credit risk and have not been impaired.

Financial Statements | 117

Age analysis of student fees The table below provides the age analysis of student fees receivable (before provisions), as at 31 December 2023. Due to the nature of its operations, the University only tracks outstanding fees on an academic year basis. All outstanding balances are past due.

Refer to Note 18 or the disclosure relating to the University's exposure to credit risk.

Less than 1 year R

Between 1–3 years R

More than 3 years R

Total R

2023

591 030 630

453 624 790

524 073 395

1 568 728 815

2022

439 242 221

399 664 415

481 620 360

1 320 526 996

Movements in the provision for impairment of student fees receivable were as follows: Collectively impaired At 31 December 2021

(797 272 010)

Provision utilised

117 675 757

Additional provision

(273 727 095)

At 31 December 2022

(953 323 348)

Provision utilised

128 838 552

Additional provision

(193 465 298)

At 31 December 2023

(1 017 950 094) Less than 1 year R

Between 1–3 years R

More than 3 years R

Total R

2023 24,21%

88,63%

90,22%

64,89%

Estimated total gross carrying amount at default

Expected credit loss rate

591 030 630

453 624 790

524 073 395

1 568 728 815

Expected credit loss

143 078 167

402 028 294

472 843 633

1 017 950 094

Less than 1 year R

Between 1–3 years R

More than 3 years R

Total R

2022 74,09%

66,97%

74,79%

72,19%

Estimated total gross carrying amount at default

Expected credit loss rate

439 242 221

399 664 415

481 620 360

1 320 526 996

Expected credit loss

325 437 653

267 672 288

360 213 407

953 323 348

7. Cash and cash equivalents 2023 R

2022 R

Cash at bank and on hand

139 155 757

221 109 076

Short-term bank deposits

430 000 000

500 000 000

569 155 757

721 109 076

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 R569 155 757 (2022: R721 109 076).

The University held R430 000 000 (2022: R500 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 7,263%–9,25% (2022: 4,55%–8,30%).

The University has a credit card facility of R28 996 000, and Guarantees of R5 000 000 as at the financial year-end.

118 | CPUT Annual Report 2023

8. Interest-bearing borrowings 8.1 Interest-bearing borrowings 2023 R

2022 R

18 294 787

19 419 847

-

42 828

18 294 787

19 377 020

Non-current

-

15 546 167

State loans

-

-

Financial institution loans

-

15 546 167

18 294 787

34 966 015

Current State loans Financial institution loans

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, and as at 31 December 2023, the balance outstanding on the facility was R18 294 786 (2022: R34 923 187). The mortgage bond is for a 10-year period, and semi-annual payments of R9 667 096 (2022: R9 667 096) is 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. Refer to Note 2.1.

8.2 Lease liabilities 2023 R

2022 R

Current

270 965 935

297 978 307

Lease liability

270 965 935

297 978 307

Non-current

810 538 794

1 074 050 781

Lease liability

810 538 794

1 074 050 781

1 081 504 729

1 372 029 088

Lease liabilities The University leases a number of buildings for student accommodation, with lease periods ranging between 2–7 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; as well as office equipment with lease periods of 3–4 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 of 7,5%.

The lease liability increased by R8 647 068 (2022: R413 959 571) 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 (7,5%–8,9%) over the life of each lease. As at 31 December 2023, the lease liability is R1 081 504 729 (2022: R1 372 029 088), and the interest charged in respect of the liability in 2023 is R90 995 307 (2022: R117 545 953).

The leased premises shall be used as 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.

Financial Statements | 119

2023 R

2022 R

Not later than 1 year

341 707 024

389 283 074

Later than 1 year and not later than 5 years

817 791 198

1 123 744 505

After 5 years

152 810 331

179 927 518

1 312 308 553

1 692 955 097

Future finance charges on lease liability

(230 803 824)

(320 926 009)

Present value of lease liabilities

1 081 504 729

1 372 029 088

Not later than 1 year

270 965 935

297 978 307

Later than 1 year and not later than 5 years

695 433 216

925 491 831

After 5 years

115 105 578

148 558 950

1 081 504 729

1 372 029 087

The present value of lease liabilities is analysed as follows:

8.3 Changes in liabilities arising from financing activities 1 January 2023 State loans

New loan

Terminations

Finance charges

Cash flow Principle

Cash flow Finance charges

31 December 2023

42 828

-

-

2 651

(42 828)

(2 651)

-

Lease liability

1 372 029 088

8 647 068

-

90 995 307

(299 171 427)

(90 995 307)

1 081 504 728

Financial institution loans

34 923 187

-

-

2 747 119

(16 628 400)

(2 747 119)

18 294 787

1 406 995 103

8 647 068

-

93 745 077

(315 842 655)

(93 745 077)

1 099 799 515

Finance charges

Cash flow Principle

Cash flow Finance charges

31 December 2022

1 January 2022 State loans

New loan

Terminations

152 326

-

-

14 701

(109 498)

(14 701)

42 828

Lease liability

1 220 471 255

413 959 571

-

117 545 953

(262 401 738)

(117 545 953)

1 372 029 088

Financial institution loans

54 084 879

-

-

3 212 335

(19 161 692)

(3 212 335)

34 923 187

1 274 708 460

413 959 571

-

120 772 989

(281 672 928)

(120 772 989)

1 406 995 103

9. Finance costs 2023 R

2022 R

Interest paid State loans

2 651

14 701

Lease liabilities

90 995 307

117 545 953

Financial institution loans

2 827 586

3 212 335

Interest on grant funding

39 896 161

21 044 427

133 721 705

141 817 416

Total finance costs

120 | CPUT Annual Report 2023

10. Other employee benefits 10.1 Employee leave liability 2023 R

2022 R

Accumulated leave accrual – Balance at beginning of year

28 246 000

32 643 001

Provision utilised

(5 242 000)

(8 794 001)

Unwinding of discounting

2 133 000

4 397 000

Accumulated leave accrual – Balance at end of year

25 137 000

28 246 000

Current balance

8 045 000

9 014 000

Non-current balance

17 092 000

19 232 000

25 137 000

28 246 000

Annual leave accrual – Balance at beginning of year

7 368 725

31 166 680

Accrual realised

(7 368 725)

(31 166 680)

Accrual raised

7 168 718

7 368 725

Annual leave accrual – Balance at end of year

7 168 718

7 368 725

Current balance

7 168 718

7 368 725

-

-

7 168 718

7 368 725

32 305 718

35 614 725

Accumulated leave

Annual leave

Non-current balance

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 2023 for 6 months after the reporting date. This benefit only vests with the employee in the year in which it accrues. 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 2023. 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.

Financial Statements | 121

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 2023, and the principal actuarial assumptions used in the valuation were as follows: 2023

2022

Discount rate

11,72%

11,54%

Return on plan assets

11,72%

11,54%

Medical inflation

8,16%

8,30%

Retirement age

65 yrs

65 yrs

0.9

0.9

Mortality – Active (rated down 3 years for females)

SA 85-90

SA 85-90

Mortality – Pension (rated down 2 years)

PA (90-2)

PA (90-2)

% married on retirement

With effect 1 May 2003, a group annuity policy was created, which meets the definition of a plan asset in terms of IAS 19. The fair value of the plan asset at 31 December 2023 of R52 967 785 (2022: R56 430 498) has therefore been set off against the funding obligation.

Movement in net post-retirement medical obligation Post-retirement medical obligation

Fair value of plan assets

2023

2022

2023

2022

2023

2022

R

R

R

R

R

R

239 199 000

228 453 000

(56 430 498)

(62 555 150)

182 768 502

165 897 850

Current service costs

1 205 000

454 000

-

-

1 205 000

454 000

Interest expense/(income)

26 905 000

22 512 000

(6 512 079)

(6 336 837)

20 392 921

16 175 163

28 110 000

22 966 000

(6 512 079)

(6 336 837)

21 597 921

16 629 163

Basis changes: Increase in net discount rate

(7 101 000)

(11 130 000)

-

-

(7 101 000)

(11 130 000)

Medical inflation higher than assumed

7 527 000

5 609 000

-

3 929 132

7 527 000

9 538 132

Changes to membership profile different from assumed

5 390 000

6 045 000

-

-

5 390 000

6 045 000

-

-

1 860 792

-

1 860 792

-

5 816 000

524 000

1 860 792

3 929 132

7 676 792

4 453 132

(12 114 000)

(12 744 000)

8 114 000

8 532 357

(4 000 000)

(4 211 643)

(12 114 000)

(12 744 000)

8 114 000

8 532 357

(4 000 000)

(4 211 643)

261 011 000

239 199 000

(52 967 785)

(56 430 498)

208 043 215

182 768 502

208 043 215

182 768 502

Balance at 1 January 2023

Net post-retirement medical obligation

Included in profit and loss

Included in other comprehensive income (OCI) Remeasurements loss/(gain): Actuarial loss/(gain) arising from:

Actual benefits vested, (lower) than expected

Other Benefits paid

Balance at 31 December 2023 Represented by: Net post-retirement medical obligation: Former Peninsula Technikon

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.

122 | CPUT Annual Report 2023

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.

Total assets

2023 R

2022 R

(52 967 785)

(56 430 498)

(52 967 785)

(56 430 498)

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: 1% increase

Valuation basis

1% decrease

R

R

R

1% increase and decrease in the assumed rate of health care cost inflation on the liability

285 416 000

261 011 000

239 773 000

2023

1% increase and decrease in the discount rate

240 577 000

261 011 000

284 813 000

1% increase and decrease in the assumed rate of health care cost inflation on employer's service and interest cost

31 035 000

28 110 000

25 584 000

1% increase and decrease in the assumed discount rate on employer's service and interest costs

27 816 000

28 110 000

28 396 000

One year age reduction in post-retirement mortality on employer's service and interest cost

29 262 000

28 110 000

-

One year age reduction in the assumed rates of post-retirement mortality

271 248 000

261 011 000

-

1% increase and decrease in the assumed rate of health care cost inflation on the liability

262 689 000

239 199 000

218 826 000

1% increase and decrease in the discount rate

219 543 000

239 199 000

262 178 000

1% increase and decrease in the assumed rate of health care cost inflation on employer's service and interest cost

25 178 000

22 966 000

20 249 000

1% increase and decrease in the assumed discount rate on employer's service and interest cost

22 228 000

22 966 000

22 750 000

One year age reduction in post-retirement mortality on employer's service and interest cost

23 132 000

22 966 000

-

One year age reduction in the assumed rates of post-retirement mortality

248 792 000

239 199 000

-

2022

Contributions to the plan for 2024 are expected to amount to R15 749 000 (2023: R12 114 000).

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 2023, and the principal actuarial assumptions used in the valuations were as follows: 2023

2022

Discount rate

13,12%

12,45%

Medical inflation

9,28%

9,04%

Retirement age

65 yrs

65 yrs

0.9

0.9

Mortality – Active (rated down 3 years for females)

SA 85-90

SA 85-90

Mortality – Pension (rated down 2 years)

PA(90-2)

PA(90-2)

% married on retirement

Financial Statements | 123

Movement in net post-retirement medical obligation Post-retirement medical obligation

Balance at 1 January 2023

Net post-retirement medical obligation

Fair value of plan assets

2023

2022

2023

2022

2023

2022

R

R

R

R

R

R

552 282 000

530 624 000

-

-

552 282 000

530 624 000

439 427 873

Included in profit and loss Current service costs

6 734 000

4 305 000

-

-

6 734 000

4 305 000

Interest expense

67 020 000

53 229 000

-

-

67 020 000

53 229 000

73 754 000

57 534 000

-

-

73 754 000

57 534 000

Medical inflation higher than assumed

11 360 000

(23 163 000)

-

-

11 360 000

(23 163 000)

Changes to membership profile different from assumed

(2 909 000)

15 980 000

-

-

(2 909 000)

15 980 000

-

(4 452 000)

-

-

-

(4 452 000)

(25 248 000)

-

-

-

(25 248 000)

-

-

-

-

-

-

-

(16 797 000)

(11 635 000)

-

-

(16 797 000)

(11 635 000)

(27 939 000)

(24 241 000)

-

-

(27 939 000)

(24 241 000)

(27 939 000)

(24 241 000)

-

-

(27 939 000)

(24 241 000)

581 300 000

552 282 000

-

-

581 300 000

552 282 000

Represented by: Net post-retirement medical obligation: Former Cape Technikon

581 300 000

552 282 000

Total university post-retirement medical aid obligation

789 343 215

735 050 502

Included in other comprehensive income (OCI) Remeasurements gain: Actuarial loss/(gain) arising from:

Application of post-retirement mortality improvement Change in actuarial assumptions Actual benefits vested, greater than expected

Other Benefits paid

Balance at 31 December 2023

124 | CPUT Annual Report 2023

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.

1% increase R

Valuation basis R

1% decrease R

1% increase and decrease in the assumed rate of health care cost inflation on the liability

647 702 000

581 300 000

525 095 000

1% increase and decrease in the discount rate

527 299 000

581 300 000

645 875 000

1% increase and decrease in the assumed rate of health care cost inflation on employer's service and interest cost

83 558 000

73 754 000

65 569 000

1% increase and decrease in the assumed discount rate on employer's service and interest cost

70 746 000

73 754 000

77 208 000

One year decrease in post-retirement mortality on employer’s service and interest costs

76 833 000

73 754 000

-

One year decrease in the assumed average retirement age

558 322 000

581 300 000

-

1% increase and decrease in the assumed rate of health care cost inflation on the liability

620 195 000

552 282 000

495 275 000

1% increase and decrease in the discount rate

497 315 000

552 282 000

618 593 000

1% increase and decrease in the assumed rate of health care cost inflation on employer's service and interest cost

65 847 000

57 534 000

50 670 000

1% increase and decrease in the assumed discount rate on employer's service and interest cost

55 298 000

57 534 000

60 020 000

One year age reduction in post-retirement mortality on employer's service and interest cost

60 032 000

57 534 000

-

One year age reduction in the assumed rates of post-retirement mortality

584 976 000

552 282 000

-

2023

2022

Contributions to the plan for 2024 are expected to amount to R31 945 000 (2023: R27 939 000).

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 on the benefit on a pay-as-you-go basis. The actuarially calculated shortfall at 31 December 2023 amounted to R359 000 (2022: R3 228 543).

Actuarial assumptions: The following were the principal actuarial assumptions at the reporting date: 2023

2022

Discount rate per annum

8,94%

8,81%

Salary increase per annum

5,58%

5,58%

Actual rate of return on assets

8,81%

5,50%

Pensions increase per annum

2,52%

6,14%

Mortality tables – Active staff (Rated down 1 year males - 4 years females)

SA56-62

SA56-62

Mortality tables – Pensioners (Rated down 2 years)

PA90-1

PA90-1

Financial Statements | 125

Movement in net pension fund conditional liability Pension fund conditional obligation

Balance at 1 January 2023

Net pension fund conditional obligation

Fair value of plan assets

2023

2023

2023

2022

2023

2022

R

R

R

R

R

R

3 228 543

15 866 543

-

-

3 228 543

15 866 543

439 427 873

Included in profit and loss Current service costs

45 000

419 000

-

-

45 000

419 000

Interest expense/(income)

119 000

185 000

-

-

119 000

185 000

164 000

604 000

-

-

164 000

604 000

(257 000)

(2 706 000)

-

-

(257 000)

(2 706 000)

Change in demographic assumptions

-

(4 652 000)

-

-

-

(4 652 000)

Investment returns on member shares

(613 000)

2 268 000

-

-

(613 000)

2 268 000

-

-

-

-

-

-

57 457

49 000

-

-

57 457

49 000

(2 221 000)

(7 137 000)

-

-

(2 221 000)

(7 137 000)

(3 033 543)

(12 178 000)

-

-

(3 033 543)

(12 178 000)

Contributions paid by the employer

-

-

-

-

-

-

Benefits paid

-

(1 064 000)

-

-

-

(1 064 000)

-

(1 064 000)

-

-

-

(1 064 000)

359 000

3 228 543

-

-

359 000

3 228 543

359 000

3 228 543

439 427 873

Included in other comprehensive income (OCI) Remeasurements loss/(gain): Actuarial loss/(gain) arising from: Change in economic assumptions

Other miscellaneous items Salary increases Change in assumptions

Other

Balance at 31 December 2023 Represented by: Net pension fund conditional liability

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.

1% increase R

Valuation basis R

1% decrease R

2023 1% increase and decrease in the discount rate

158 000

359 000

580 000

1% increase and decrease in the inflation rate

561 000

359 000

171 000

Pension increase rate (70% CPI)

1 364 000

359 000

164 000

Expected retirement age (NRA 65)

439 000

359 000

-

2 217 000

3 228 543

4 355 000

2022 1% increase and decrease in the discount rate 1% increase and decrease in the inflation rate

4 140 000

3 228 543

2 382 000

Pension increase rate (70% CPI)

5 884 000

3 228 543

1 669 000

Expected retirement age (NRA 65)

2 816 000

3 228 543

-

126 | CPUT Annual Report 2023

11. Accounts payable and accrued liabilities 2023 R

2022 R

Financial instruments

462 887 190

415 236 000

Trade payables and accrued expenses

172 605 325

259 340 061

Student creditors and deposits

77 296 874

75 099 405

Other payables

53 652 412

5 533 607

Nominated bursaries

159 332 578

75 262 927

-

-

462 887 190

415 236 000

Non-financial instruments Total trade and other payables

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 2023 R

2022 R

1 422 930 000

1 351 773 930

DHET infrastructure grant released to income

10 059 600

20 132 900

DHET infrastructure grant recognised

9 879 600

19 952 900

180 000

180 000

Foundation programme grant

58 369 000

43 177 000

Clinical training programme grants

11 022 945

14 995 460

Research development grants

50 872 742

43 129 738

38 657

105 570

University Capacity Development Grant

31 144 438

31 374 602

National Research Fund

19 186 720

14 012 833

National skills levy

2 990 676

2 339 608

Provincial radiography subsidy

6 020 619

5 173 922

SETA grant

22 930 694

-

1 635 566 091

1 526 215 563

Subsidy for general purpose

DHET capital grant recognised

Subsidy for interest and redemption on state guaranteed loans

Total

Included in the above are the below Government grants released to income. See Note 17.2 38 369 127

31 415 757

Clinical training programme grants

11 022 945

14 995 460

Research development grants

27 346 182

16 420 297

Financial Statements | 127

13. Revenue from contracts with customers 13.1 Revenue from contracts with customers

Tuition and residence fees Gross tuition and residence fees Less: Bursaries and rebates awarded Rendering of services Total revenue from contracts

2023 R

2022 R

1 636 475 266

1 490 337 793

1 647 500 121

1 499 964 530

(11 024 855)

(9 626 737)

20 665 163

39 513 016

1 657 140 429

1 529 850 809

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 R3 886 877 (2022: R14 564 631) for various research projects. No amounts regarding research projects have been deferred, as a result of all the performance obligations stated in the contract being satisfied at the reporting date.

The University has a contractual obligation to provide the students with tertiary education, for which they are being charged tuition fees. These obligations were met at year-end, and RNil (2021: RNil) of the tuition fees was deferred for the 2022 financial year.

14. Interest received and dividends 2023 R

2022 R

Bank interest

56 127 616

38 870 888

Interest

49 702 801

32 013 434

Dividends

23 281 574

29 705 304

Total

129 111 991

100 589 626

2023 R

2022 R

744 729 015

667 254 204

Repairs and maintenance – Land and buildings

78 993 973

59 391 432

Repairs and maintenance – Moveable assets

8 431 401

8 359 191

124 616 655

117 190 433

9 131 891

12 377 021

General services

100 806 985

59 707 640

Fixed property rentals (Short-term rentals)

18 294 663

31 160 113

64 550

1 291 644

Unnominated bursaries and rebates awarded

24 714 123

29 996 500

Auditors' remuneration

11 437 872

10 841 408

External audit fees

6 858 680

6 702 651

Internal audit fees

4 579 192

4 138 757

15. Other operating expenses Total other operating expenses

The following items are included in other operating expenses:

Water, electricity and sewerage Software licenses and consumables

Equipment rentals

128 | CPUT Annual Report 2023

16. Personnel costs Academic professional

Other personnel

Total

R

R

R

761 170 172

982 620 273

1 743 790 445

83 640

80 360

164 000

(2 020 850)

(1 088 150)

(3 109 000)

(860)

(199 147)

(200 007)

Retirement fund – Defined contribution

118 523 313

63 820 246

182 343 559

Movement in post-retirement medical aid obligation

48 629 480

46 722 442

95 351 922

Total personnel costs

926 384 895

1 091 956 025

2 018 340 920

712 197 963

968 591 869

1 680 789 832

308 040

295 960

604 000

(2 858 051)

(1 538 950)

(4 397 001)

Movement in annual leave pay provision

(102 331)

(23 695 624)

(23 797 955)

Retirement fund – Defined contribution

111 234 020

59 895 243

171 129 263

Movement in post-retirement medical aid obligation

37 823 213

36 339 950

74 163 163

Total personnel costs

858 602 855

1 039 888 448

1 898 491 303

Year ended 31 December 2023 Wages and salaries Movement in pension fund obligation Movement in accumulated leave pay provision Movement in annual leave pay provision

Year ended 31 December 2022 Wages and salaries Movement in pension fund obligation Movement in accumulated leave pay provision

Average number of persons employed during the year 2023

2022

Permanent employees

2 833

2 822

Contract employees

4 084

4 176

Total

6 917

6 998

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.

2023 R

2022 R

1 158 004 379

1 159 467 967

-

-

Released to income

(10 059 600)

(20 132 900)

Interest earned on unspent funds

33 507 283

18 669 312

1 181 452 062

1 158 004 379

Opening balance – Deferred income Amount raised – Infrastructure grant received

Closing balance – Grant relating to assets

Financial Statements | 129

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.

2023 R

2022 R

Opening balance

73 428 430

63 360 269

Amount raised – Grant received

62 598 869

39 108 804

Released to income

(38 369 126)

(31 415 757)

Released to income

6 388 879

2 375 115

104 047 052

73 428 430

9 952 236

9 952 237

1 275 546 878

1 221 480 573

1 285 499 114

1 231 432 810

Closing balance – Government grants – Other Current balance Non-current balance

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 (2022: 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.

130 | CPUT Annual Report 2023

Impact of interest rate changes on net surplus and accumulated funds Interest rate change (BP) Balances

+200 BP

+100 BP

-100 BP

-200 BP

R

R

R

R

R

At 31 December 2023 Net financial assets

(111 493 048)

(2 229 861)

(1 114 930)

1 114 930

2 229 861

Money market deposits

241 034 748

4 820 695

2 410 347

(2 410 347)

(4 820 695)

Interest-bearing bonds

178 115 962

3 562 319

1 781 160

(1 781 160)

(3 562 319)

Cash and cash equivalents

569 155 757

11 383 115

5 691 558

(5 691 558)

(11 383 115)

(1 099 799 516)

(21 995 990)

(10 997 995)

10 997 995

21 995 990

(363 439 333)

(7 268 787)

(3 634 393)

3 634 393

7 268 787

Money market deposits

170 485 673

3 409 713

1 704 857

(1 704 857)

(3 409 713)

Interest-bearing bonds

151 918 193

3 038 364

1 519 182

(1 519 182)

(3 038 364)

Cash and cash equivalents

721 109 076

14 422 182

7 211 091

(7 211 091)

(14 422 182)

(1 406 952 275)

(28 139 046)

(14 069 523)

14 069 523

28 139 046

Less: Interest-bearing borrowings At 31 December 2022 Net financial assets

Less: Interest-bearing borrowings

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 Market variance Balances

+10%

+5%

-5%

-10%

R

R

R

R

R

At 31 December 2023 Equities – Local

125 837 192

12 583 719

6 291 860

(6 291 860)

(12 583 719)

Equities – Foreign

180 484 880

18 048 488

9 024 244

(9 024 244)

(18 048 488)

Unit trusts – Local

1 111 365 797

111 136 580

55 568 290

(55 568 290)

(111 136 580)

Unit trusts – Foreign

75 270 039

7 527 004

3 763 502

(3 763 502)

(7 527 004)

Interest-bearing bonds – Foreign

156 911 969

2 120 399

1 060 200

(1 060 200)

(2 120 399)

Interest-bearing bonds – Local

21 203 993

15 691 197

7 845 598

(7 845 598)

(15 691 197)

Equities – Local

173 590 542

17 359 054

8 679 527

(8 679 527)

(17 359 054)

Equities – Foreign

57 840 650

5 784 065

2 892 032

(2 892 032)

(5 784 065)

Unit trusts – Local

1 109 190 056

110 919 006

55 459 503

(55 459 503)

(110 919 006)

Unit trusts – Foreign

55 799 462

5 579 946

2 789 973

(2 789 973)

(5 579 946)

Interest-bearing bonds – Foreign

138 603 362

1 331 483

665 742

(665 742)

(1 331 483)

Interest-bearing bonds – Local

13 314 832

13 860 336

6 930 168

(6 930 168)

(13 860 336)

At 31 December 2022

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.

Financial Statements | 131

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 R8 012 279 (2022: R7 840 408) was fully impaired.

With regards to student debtors, both tuition and residence fees are charged at 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 year-end has been accessed 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 R1 017 950 094 (2022: R953 353 348) 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: Range of balances

Number of students 2023

Outstanding balance at 31 December 2023

Number of students 2022

Outstanding balance at 31 December 2022

Up to R10 000

19 958

62 334 890

21 216

52 954 248

R10 001 to R30 000

17 610

325 738 078

13 429

264 860 783

R30 001 to R50 000

7 311

280 774 236

6 733

259 114 764

>R50 000

11 470

899 881 611

9 703

743 597 203

56 349

1 568 728 815

51 081

1 320 526 998

Provision for impairment of student debtors, illustrated as a percentage of gross student debtors’ balances outstanding at year-end: 2023

2022

Gross student debtors

1 568 728 815

1 320 526 996

Provision for doubtful debts

(1 017 950 094)

(953 323 348)

550 778 721

367 203 648

64,89%

72,19%

Net student debtors Provision as a % of gross student debtors

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.

132 | CPUT Annual Report 2023

Carrying value amounts

Fair value amounts

Carrying value amounts

2023

Fair value amounts 2022

R

R

R

R

Financial assets measured at FVTPL

1 912 108 618

1 912 108 618

1 718 824 577

1 718 824 577

Financial assets measured at amortised cost

1 155 982 997

1 155 982 997

1 103 368 492

1 103 368 492

Accounts receivable (excluding prepayments, VAT receivable)

36 048 519

36 048 519

15 055 768

15 055 768

Student fees receivable

550 778 721

550 778 721

367 203 648

367 203 648

Cash and cash equivalents

569 155 757

569 155 757

721 109 076

721 109 076

Financial assets

569 155 757

569 155 757

721 109 076

721 109 076

Financial liabilities Financial liabilities at amortised cost Interest-bearing borrowings:

1 099 799 516

Fixed rate borrowings

1 099 799 516

1 406 995 103

1 407 474 249

-

-

42 828

521 974

1 099 799 516

1 099 799 516

1 406 952 275

1 406 952 275

Accounts payable and accrued liabilities

462 887 188

462 887 188

415 236 000

415 236 000

Post-retirement medical aid obligation

789 343 215

789 343 215

735 050 502

735 050 502

359 000

359 000

3 228 543

3 228 543

32 305 718

32 305 718

35 614 725

35 614 725

Floating rate borrowings

Pension fund obligation Accumulated and annual leave liability

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.

Level 1

Level 2

Level 3

Total

R

R

R

R

As at 31 December 2023 Financial assets Equities – Local

125 837 192

-

-

125 837 192

Equities – Foreign

180 484 880

-

-

180 484 880

Unit trusts – Local

1 111 365 797

-

-

1 111 365 797

Unit trusts – Foreign

75 270 039

-

-

75 270 039

Interest-bearing bonds – Local

133 741 711

23 170 258

-

156 911 969

Interest-bearing bonds – Foreign

-

21 203 993

-

21 203 993

Money market deposits – Local

-

238 080 621

-

238 080 621

Money market deposits – Foreign

-

2 954 127

-

2 954 127

1 626 699 619

285 408 999

-

1 912 108 618

Equities – Local

173 590 542

-

-

173 590 542

Equities – Foreign

57 840 650

-

-

57 840 650

Unit trusts – Local

1 109 190 056

-

-

1 109 190 056

Unit trusts – Foreign

55 799 462

-

-

55 799 462

Interest-bearing bonds – Local

103 653 250

34 950 112

-

138 603 362

Total As at 31 December 2022 Financial assets

Interest-bearing bonds – Foreign

-

13 314 832

-

13 314 832

Money market deposits – Local

-

169 732 146

-

169 732 146

Money market deposits – Foreign

-

753 527

-

753 527

1 500 073 960

218 750 617

-

1 718 824 577

Total

Financial Statements | 133

The fair value of the publicly traded financial instruments are based on stock exchange prices as at the reporting date. A register of investments is available for inspection at the offices of the University.

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 investment 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: 2023 R

2022 R

Total liabilities

3 670 193 753

3 827 557 682

Less: Cash and cash equivalents

(569 155 757)

(721 109 076)

Net debt

3 101 037 996

3 106 448 606

Accumulated funds

2 423 889 454

2 272 253 142

1.28

1.37

Net debt to accumulated funds ratio

The following table sets out the maturity profile of the University’s financial liabilities, based on contractual undiscounted payments.

On demand

Less than 3 months

3–12 months

1– 5 years

More than 5 years

Total

R

R

R

R

R

R

Year ended 31 December 2023 Financial liabilities Interest-bearing borrowings

-

68 623 471

291 378 339

817 791 199

152 810 331

1 330 603 340

Trade payables and accrued expenses

-

172 605 325

-

-

-

172 605 325

Other payables and accrued liabilities

290 281 866

-

-

-

-

290 281 866

Total

290 281 866

241 228 796

291 378 339

817 791 199

152 810 331

1 793 490 531

Interest-bearing borrowings

-

82 317 858

326 342 235

1 139 333 500

179 927 518

1 727 921 110

Trade payables and accrued expenses

-

259 340 061

-

-

-

259 340 061

Other payables and accrued liabilities

155 895 940

-

-

-

-

155 895 940

Total

155 895 940

341 657 919

326 342 235

1 139 333 500

179 927 518

2 143 157 111

Year ended 31 December 2022 Financial liabilities

134 | CPUT Annual Report 2023

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: On demand

Less than 3 months

3–12 months

1– 5 years

More than 5 years

Total

R

R

R

R

R

R

Cash, cash equivalents and interest-bearing bonds

377 192 585

430 000 000

306 070

25 295 781

131 310 120

964 104 556

Total

377 192 585

430 000 000

306 070

25 295 781

131 310 120

964 104 556

Cash, cash equivalents and interest-bearing bonds

390 841 223

500 000 000

1 276 886

23 006 869

114 319 624

1 029 444 602

Total

390 841 223

500 000 000

1 276 886

23 006 869

114 319 624

1 029 444 602

Year ended 31 December 2023

Year ended 31 December 2022

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 amounts formally designated for the acquisition, construction, and improvement of building projects.

2021 R

2020 R

Amounts allocated for capital expenditure at reporting date, but not contracted

275 899 422

288 823 015

Expenditure contracted for at year-end, but not yet incurred

34 037 463

45 946 181

309 936 885

334 769 196

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: 2021 R Equipment Property

2020 R

64 550

1 291 644

18 294 663

31 160 113

18 359 213

32 451 757

Financial Statements | 135

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.

Gross remuneration Basic cost of employment

Bonuses

1 Name

Office held

Nhlapo NS

Post- retirement medical aid

Total primary services

Total remuneration

Other

2

2023

R

R

Vice-Chancellor

4 399 005

248 706

-

4 647 711

-

4 647 711

Balkaran R

Deputy Vice-Chancellor: Learning and Teaching

2 802 831

171 452

-

2 974 283

-

2 974 283

Mokoena SS

Registrar

2 323 170

142 380

-

2 465 550

-

2 465 550

Du Plessis P

Executive Director: Finance

2 295 534

140 686

-

2 436 220

-

2 436 220

Phaho D

DVC: Research,Technology Innovation, and Partnerships

2 785 430

183 698

-

2 969 128

-

2 969 128

Mayende GP

DVC: Operations

2 821 997

146 959

-

2 968 956

Hay-Swemmer HR

Executive Director: Office of the Vice-Chancellor

2 312 555

152 555

-

2 465 110

-

2 465 110

Ngqondi TG

Dean: Informatics and Design

2 033 103

124 208

-

2 157 311

-

2 157 311

Green P

Dean: Business and Management Sciences

2 035 560

115 336

-

2 150 896

-

2 150 896

Corns J

Senior Director: CTS

1 701 366

104 248

-

1 805 614

-

1 805 614

Kioko J

Dean: Applied Sciences

2 044 691

106 464

-

2 151 155

-

2 151 155

Mji A

Dean: Education

2 026 561

124 208

-

2 150 769

-

2 150 769

Dwane VVN

Senior Director: Human Capital

1 702 920

104 343

-

1 807 263

-

1 807 263

Tyolwana NG

Acting Dean of Students

1 665 668

82 146

-

1 747 814

-

1 747 814

Brooks NL

Acting Dean: Health and Wellness Sciences

1 864 272

76 656

-

1 940 928

-

1 940 928

Ramsuroop S

Acting Dean: Engineering and the Built Environment

1 916 947

84 781

-

2 001 728

-

2 001 728

36 731 610

2 108 826

-

38 840 436

-

38 840 436

Total 2023

R

R

R

R

2 968 956

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.

136 | CPUT Annual Report 2023

Gross remuneration Basic cost of employment

Bonuses

Post- retirement medical aid

1 Name

Office held

Nhlapo NS

Total primary services

Total remuneration

Other

2

2022

R

R

Vice-Chancellor

4 141 022

234 628

-

4 375 650

-

4 375 650

Balkaran R

Deputy Vice-Chancellor: Learning and Teaching

2 638 618

161 747

-

2 800 365

-

2 800 365

Mokoena SS

Registrar

2 198 027

134 328

-

2 332 355

-

2 332 355

Du Plessis P

Executive Director: Finance

2 165 511

132 723

-

2 298 234

-

2 298 234

Phaho D

DVC: Research,Technology Innovation, and Partnerships

2 644 235

173 300

-

2 817 535

-

2 817 535

Mayende GP

DVC: Operations

2 662 166

138 640

-

2 800 806

Hay-Swemmer HR

Executive Director: Office of the Vice-Chancellor

2 181 652

143 921

-

2 325 573

-

2 325 573

Coopoo P

Dean of Students

1 141 241

65 499

-

1 206 740

-

1 206 740

Ngqondi TG

Dean: Informatics and Design

1 893 497

117 177

-

2 010 674

-

2 010 674

Green P

Dean: Business and Management Sciences

1 926 989

108 807

-

2 035 796

-

2 035 796

Sheldon MS

Dean: Engineering and the Built Environment

1 432 393

87 642

-

1 520 035

-

1 520 035

Matsha-Erasmus TE

Dean: Health and Wellness Sciences

1 220 047

74 652

-

1 294 699

-

1 294 699

Corns J

Senior Director: CTS

1 605 176

98 347

-

1 703 523

-

1 703 523

Kioko J

Dean: Applied Sciences

1 930 412

100 438

-

2 030 850

-

2 030 850

Mji A

Dean: Education

2 050 871

117 177

-

2 168 048

-

2 168 048

Dwane VVN

Senior Director: Human Capital

1 166 376

66 074

-

1 232 450

-

1 232 450

Tyolwana NG

Acting Dean of Students

1 335 250

77 496

-

1 412 746

-

1 412 746

Brooks NL

Acting Dean: Health and Wellness Sciences

1 472 662

72 317

-

1 544 979

-

1 544 979

Ramsuroop S

Acting Dean: Engineering and the Built Environment

1 497 359

79 982

-

1 577 341

-

1 577 341

37 303 504

2 184 895

-

39 488 399

-

39 488 399

Total 2022

R

R

R

R

2 800 806

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 290 907 (2022: R5 300 286) 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. * 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 2023 RNil (2022: RNil).

Remuneration of Council members Committee

Number of members

Chair of Council

1

Chairs of committees

8

Members of Council

22

Reimbursement for travelling expenses and stipends of R520 000 (2022: R441 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.

Financial Statements | 137

The following table represents the disclosure required in terms of IAS 24, in respect of compensation of key Management.

2023 R

2022 R

Short-term employee benefits

33 549 527

34 188 113

Post-employee pension and medical benefits

5 290 907

5 300 286

Total compensation paid to key Management personnel

38 840 434

39 488 399

22. Related party transactions The related party relationships of the Cape Peninsula University of Technology in terms of IAS 24 are as follows: •K ey Management personnel, which comprises members of both Council and the University Executive Management Team (refer to Note 21); and •T he 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: DHET

2023 R

Loans owing to Various subsidies and grants received

2022 R -

(42 828)

1 635 566 091

1 526 215 563

There are various terms and conditions in respect of subsidies and grants, and these are available upon request.

23. Events after the reporting date In November 2023, the Finance Committee approved the withdrawal from our long-term investments to the value of R150 000 000.

In March 2024, an amount of R50 000 000 was withdrawn from the financial assets measured at fair value.

24. 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.

138 | CPUT Annual Report 2023

Abbreviations 4IR/ 5IR AGM AI AIPF AMHBI APP APS AROC AY BCM BRICS BTech CDISC CDU CE CHE CHEC CIET CMF Convex CPGS CPPD CPUT CTS DHET DSA DSI DU DUT DVC ECP EE EEF EM ERM EXCO F’SATI FAS FBMS FEBE FEd FET FHWS FID FinCom FTE FYE GAs GBV GEC GEWE HC HE HEI HEMIS HEQSF HoD HR IAS IASB ICT IF IFRS InvCom IP ISO ISPC IT ITF ITGov JFAC KPI L&T

Fourth/ Fifth Industrial Revolution Annual General Meeting Artificial intelligence Associated Institutions Pension Fund Applied Microbial and Health Biotechnology Institute Annual Performance Plan Average Point Score Audit and Risk Oversight Committee (of Council) Academic year Business Continuity Management Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates Bachelor of Technology Degree Centre for Diversity, Inclusivity and Social Change Curriculum Development Unit Community Engagement Council on Higher Education Cape Higher Education Consortium Centre for Innovative Educational Technology Compliance Management Function Convocation Executive Committee Centre for Postgraduate Studies Centre for Professional and Personal Development Cape Peninsula University of Technology Computer and Telecommunications Services (Department) Department of Higher Education and Training Division of Student Affairs Department of Science and Innovation Disability Unit Durban University of Technology Deputy Vice-Chancellor Extended Curriculum Programme Employment Equity Employment Equity Forum Executive Management Enterprise Risk Management Executive Committee French South African Institute of Technology Faculty of Applied Sciences Faculty of Business and Management Sciences Faculty of Engineering and the Built Environment Faculty of Education Further Education and Training Faculty of Health and Wellness Sciences Faculty of Informatics and Design Finance Committee (of Council) Full-time equivalent First Year Experience Graduate attributes Gender-based violence Governance and Ethics Committee Gender Equality and Women Empowerment Human Capital Higher Education Higher education institution Higher Education Management Information System Higher Education Qualifications Sub-framework Head of Department Human Resources International Accounting Standards International Accounting Standards Board Information and Communication Technology Institutional Forum International Financial Reporting Standards Investment Committee (of Council) Intellectual Property International Organization for Standardization Institutional Strategic Planning Committee Information technology Institutional Transformation Forum IT Governance (Committee) Joint Finance and Audit Committee Key performance indicator Learning & Teaching

LGBTIQA+ LMS LTA ManCom MCD MoA MoU NDP NESP nGAP NQF NRF NSFAS NTRF OHS PERI PG PhD POPIA PQM QARM QMD RDG RemCo RO RPL RTI RTIP SAASTA SADC SAMRC SAQA SARChI SARETEC SDGs SETA SHE SIP SL SLA SLCE SLU SoTL SRC SSC SSCSA STEM STEMI SU TDP TIA TTO TUT TVET UCDG UCDP UCT UG UJ UP UPSET USAf USDP UWC V2030 VAT VC VUT WIL ZAR

Lesbian, gay, bisexual, transgender, intersex, queer, asexual, plus Learner Management System Learning, Teaching and Assessment Executive & Management Committee Marketing and Communication Department Memorandum of Agreement Memorandum of Understanding National Development Plan Nurturing Emerging Scholars Programme New Generation of Academics Programme National Qualifications Framework National Research Foundation National Student Financial Aid Scheme National Tertiary Retirement Fund Occupational health and safety Professional Education Research Unit Postgraduate Doctor of Philosophy Protection of Personal Information Act Programme and Qualification Mix Quality Assurance and Risk Management Quality Management Directorate Research Development Grant Remuneration Committee Retention Officer Recognition of Prior Learning Research, Technology and Innovation Research, Technology Innovation, and Partnerships South Africa Agency for Science and Technology Advancement Southern African Development Community South African Medical Research Council South African Qualifications Authority South African Research Chair Initiative South African Renewable Energy Technology Centre Sustainable Development Goals Sector Education and Training Authority Safety, Health and Environment (Department) Strategic Initiatives and Partnerships (Directorate) Service-learning Student Leadership Academy Service Learning and Community Engagement (Units) Student Learning Unit Scholarship of Teaching and Learning Student Representative Council Student Services Council Search and Selection Committee for Senior Appointments Science, Technology, Engineering, and Mathematics Science, Technology, Engineering, Mathematics, and Innovation Stellenbosch University Teaching Development Programme Technology Innovation Agency Technology Transfer Office Tshwane University of Technology Technical and Vocational Education and Training University Capacity Development Grant University Capacity Development Programme University of Cape Town Undergraduate University of Johannesburg University of Pretoria Unfurling Post School Education and Training Universities South Africa University Staff Doctoral Programme University of the Western Cape Vision 2030 (Strategic Plan) Value Added Tax Vice-Chancellor Vaal University of Technology Work-integrated learning South African rand

Abbreviations | 139

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 selfemployment. 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 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.

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