Page 161 - DUT Annual Report 2020
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DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
22. CONTINGENT LIABILITIES (continued)
23.2 Claims by professional consultants involved on infrastructure projects (continued)
Claims under investigation by the University
Izikhova security services CC – dispute under existing contract
Wise training centre - dispute under existing contract
The University is investigating the veracity of these claims and are unable to determine the likely exposure at year- end.
Post financial period claim:
MI 7 Security Intelligence (Pty) Ltd – R37,2m
Nehemia's Construction & Business Enterprises CC – R19,7m
The University has disclaimed liability and is defending the action in both the cases. Legal advice obtained indicates that it is unlikely that any significant liability will arise in the case of MI 7 Security Intelligence (Pty) Ltd. The latter case is still subjudice, therefore the University is unable to determine their likely exposure.
23.3 Associated Institutions Pension Fund (“AIPF”)
There are 50 employees (2019: 61) members of the AIPF within the University. The AIPF is a state fund established in terms of the Associated Institutions Pension Fund Act No 41, 1963 and is a defined benefit plan with the state being the sponsoring employer responsible for any shortfall of benefits payable to members of the fund. Accordingly, the University is not required to recognise any proportionate share of the AIPF’s defined benefit obligation, plan assets and cost associated with the plan in the same way as for any other defined benefit plan.
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
24. COMMITMENTS
24.1 Capital commitments
24.1.1 Capital expenditure contracted for at reporting date but not recognised in the financial statements is as follows:
Property, plant and equipment
2020 2019 R’000 R’000
371 265 406 393
Capital expenditure contracted as at December 31, 2020 relates largely to the construction of the New Student Centre & Entrepreneurship building at the Steve Biko Campus, refurbishment of the water chiller at the Steve Biko library, water harvesting and innovation projects, refurbishment of university owned residences and lift installations at the ML Sultan and Steve Biko campuses.
24.1.2 Contracts approved for but not contracted for:
Infrastructure projects 976 120 1 062 626
The University has committed funds towards fourteen infrastructure projects, which are to be completed over the next four years, which were approved by Council in June 2019. These projects will utilise the University’s available unrestricted use funds and unencumbered cash at year-end (refer to note 7.2.).
2020 2019 R’000 R’000
159
