By the Division of Communication and Advancement 

 

Rhodes University Council has welcomed a clean audit with no findings for the 2023 financial year. The results further extend the institution’s established impeccable financial performance and stewardship record.

“Council is pleased by this effort and the positive outcome in the first year of the University’s five-year Institutional Development Plan 2023-2028, the institutional blueprint for achieving academic excellence and ensuring long-term sustainability,” Council chairperson Judge Gerald Bloem said. 

“The financial statements and the annual report paint a fantastic picture of which students, staff, alumni, funders and all stakeholders can be proud. This is a positive reflection on the governance and management of this 120-year-old University,” Judge Bloem said. 

The unqualified audit report states that no significant control deficiencies were identified, and no material matters were found in the financial statements. 

Chief Financial Officer Mr Kamlesh Riga said the audit report focused on four significant risk areas. These, he said, included:

• Revenue recognition covering private gifts and grants, other non-recurring income, and income from research and contracts. The audit looked at the completeness of the revenue recorded.
• Management override of controls specific to transaction testing and journal entries.
• Performance report related to students' access, success and research output.  
• Supply chain management looking at conflicts of interest, declaration, and general institutional procurement processes. 

The report of the external auditors, SAB&T, stated that it conducted “robust and substantive testing, with rigorous auditing of policies and key controls. The four focus areas were found to be in good standing, and no material errors were identified.” 

The Director of Institutional Research, Planning & Quality Promotion, Dr Remy Nnadozie, said the University was returning to the pre-COVID-19 performance standards in various areas. These included the student success rate of 84% in 2023, two percentage points above the target set for the year.

He said several other targets, including for graduates, particularly at the undergraduate level, were also exceeded. 

However, the overall student enrolment target was not met, especially for returning undergraduate and postgraduate students. The University has developed a plan to address student recruitment, support, retention, and success.

The audit report also raised concern about the rising student debt due, in part, to the National Students Financial Aid Scheme capping residence accommodation fees in 2023. It drew attention to the student debt impairment provision, which increased from R24 million in 2022 to R91 million.

Rhodes University has identified student debt as a significant threat to its operations. As part of its 120th anniversary celebrations, it has launched several fundraising initiatives, including Unlocking Futures, to alleviate student indebtedness and the institution's sustainability threat.