Page 137 - DUT Annual Report 2020

DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
7. CASH AND CASH EQUIVALENTS (continued)
7.2. Cash and cash equivalents includes funds committed for the following;
2019 R’000
1 123 243
Encumbered cash
Unspent restricted government grants and research funds Unspent funds designated to departments*
Trade and other payables
Unencumbered cash:
Includes
Approved for not contracted capital projects*
Working capital**
2020 R’000
2 343 052
*Included in encumbered cash in 2020- are approved for but not contracted for infrastructure projects amounting to R1,352b previously included in unencumbered cash in 2019 amounting to R1,046b. This is part of total infrastructure projects amounting to R976,120m that is committed over the next four years. (Refer to note 24.1.2 for details on the capital commitments).
**The University has seen a decrease in unencumbered cash. The positive cash position of the University, includes a working capital reserve that has been increased from 5 months in 2019 to 7 months in 2020, which enabled the University to fund its capital projects without any loan finance. Despite a challenging year the University has managed to maintain a positive financial position as evidenced by the solvency and liquidity ratios. In an effort to ensure that the liquidity of the University is maintained, the working capital of the University was increased to seven months. Management has put in place measures to ensure that the University continues to maintain a positive financial position until the end of the COVID-19 world pandemic.
The COVID-l9 pandemic has had a significant effect on all aspects of the University's operations and activities. The University’s leadership has put in place many measures, protocols and processes to ensure the health and safety of students and staff and also to ensure that the academic program continues. Significant investments have been made to ensure that both students and personnel are able to work remotely during this time. The University also initiated its own Covid Relief Fund where contributions were received from University stakeholders and also used its own internal academic expertise to make its first batch sanitisers in line with all the health regulations and distribute to departments.
7.3. Guarantees issued by the University’s bankers:
City treasurer
SA Post Office Limited EThekwini Municipality Msunduzi Municipality Eskom Holdings Limited
2020 2019 R’000 R’000
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
1 1
- 1 235 119
583 293 1 487 558
272 201
1 242 236
603
603
592 856 378 349 152 038
1 864 370
1 046 690 817 680
39
120
25
42
377
39
120
25
42
377
135