NRF Business Plan: 2010/11 - 2012/13

Presentation to Parliamentary Portfolio

Committee

12 MAY 2010

Dr Albert van JaarsveldReach for the starsReach for the stars

Contents

1. Strategic context and structure2. Alignment with DST3. Contributions by division:

i. RISAii. SAASTAiii. National Facilities

4. Financial perspective5. KPI’s

Promote and support research

throughfunding, human resource development

and the

provision of the necessary research facilities

in order tofacilitate the creation of knowledge, innovation and development in all fields of science and technology, including indigenous knowledge

and thereby tocontribute to the improvement of the quality of life

of all the people of the Republic

1. Strategic context NRF MANDATE - NRF ACT

Presenter

Presentation Notes

The point of this presentation should be on telling PPC what we (NRF): has achieved during 2006/07 – brag about successes have we met our targets – if not what are we doing to correct?

Relationship between Vision, Mission and Strategic Imperatives

NRF Core competencies

• Leading-edge grant management systems• World-class research evaluation and benchmarking

practices• Science and technology management experience • State-of-the-art research platforms• Specialised research capacity at the National

Research Facilities • Strategic information accumulation and

dissemination capability• Capacity to catalyse local and international science

cooperation, networks and partnerships; and • Science advancement expertise and platforms.

Code of conduct, ethics and values

• Passion for excellence

• World-class service

• Integrity

• Respect

• People-centred

• Accountability

Organisational structure

NRF Board

NRF President

Corporate Secretary

ICT

Finance

Governance

New Business Development

Human Resources

Legal Services

Corporate Communication

GMSA

Int Rel & Col

KME

HICD

ARI

KFD

Disciplinary based Research Fellows

iThemba LABS

HartRAO/MeerKat

SAAO

HMO

SAIAB

NZG

SAASTA

Finance & Business Systems Human Resources and Stakeholder relationships

Vice-President: Research & Innovation Support & Advancement (RISA)

SKA Project

SANAP?

SAEON

Vice-President: Research Infrastructure & National Research Facilities

NRF investment principles

• Funding awarded after competitive processes• Investments are subject to rigorous peer review• Balance between strategy-driven vs demand-pull

investment (disciplinary) • The NRF allocates resources to attain strategic

goals and for efficient service delivery• The PhD is regarded as a critical systems driver• The NRF promotes rotation of expertise between

itself and other entities in the NSI• Principles of fairness, transparency and

accountability apply to all investment processes• Transformation is considered and rewarded at all

times

2. Alignment with R&D Strategy (2002)

• Areas where SA has geographic advantage– Astronomy– Palaeontology– Marine Biology– Antarctic research– Indigenous knowledge systems (knowledge advantage)

• Key technology missions– Advanced manufacturing– Biotechnology,– ICT and poverty alleviation,– Nanotechnology.

• Grand challenges (Innovation plan)

Mapping of strategic goals

10 Year Innovation Plan’s Strategic Goals NRF’s

Strategic Goals Develop South Africa’s knowledge-

generation capacityPromote internationally competitive

research as basis for a knowledge economy

Position South Africa as a strategic international research, development and innovation (RDI) partner and destination

Position NRF as a world-class evaluation and grant-making agency

Develop appropriate human capital for RDI Grow a representative science and technology workforce in South Africa

Build world-class RDI infrastructure Provide cutting-edge research, technology and innovation platforms

Develop the innovation capacity of the science system and thereby contribute to

socio-economic development

Contribute to a vibrant national system of innovation.

South Africa as a Science Destination –

beyond 2010[Knowledge economy, human capital, infrastructure, science tourism, etc.]

Investment in Grand challenges and Areas of geographic advantage

DST strategic goals

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NRF Investment

Grand challenges Geographic advantage

Additional instruments

NRF manages the following initiatives that address the R&D strategy and the Grand Challenges:

Centres of excellenceResearch chairs Research Facilities Flagship programmesResearch programmes funded through contractsResearch programmes funded through NRF core grant

31% of university academics have a doctoral degree

3. Divisional contributions – RISA INVESTMENT AREAS: 2010/11

Investment area R’000 %Established researchers (SARChI, Incentive funding for rated researchers, Competitive Support for Rated and Unrated Researchers, Grant-holder linked bursaries)

280 075 25

Human capital development (Thuthuka; research niche areas; free-

standing support for postgraduate students) 132 452 12

Strategic knowledge fields (many varied opportunities; and CoE) 212 410 19

Applied and Industrial Research and Innovation (including THRIP) 155 531 14Strategic platforms (equipment; nano-science flagship projects and programmes directed by the NRF) 135 906 12International initiatives (including bilateral and binational

agreements) 108 675 10

Community engagement research 1 100 0.1Focus area programmes (existing commitments that are being phased out) 79 061 7

Total 1 105 210 100

75% Contract vs

25% Core funding

Grant-holder linked bursary values (minimum)

Final year undergraduate (F-t) R 8 000 pa (R 20 000)Honours / BTech (Full-time) R15 000 pa (R 30 000)Masters degree (Full-time) R30 000 pa (R 70 000)Masters degree (Part-time) R10 000 pa (R 20 000) Doctoral degree (Full-time) R45 000 pa (R 120 000)Doctoral degree (Part-time) R12 000 pa (R 30 000)Postdoctoral (pro rata per month) R80 000 pa (R 180 000)Staff development bursary R25 000 pa (R 50 000)

• NRF’s bursary values have been constant since the F/Y 2007/08

• Bursary values too low – requires an injection of approx. R 300 m in the core grant to adjust values and grow student numbers

Student funding options

• NRF Studentships– Grant-holder linked (~ 66 %)– Free standing scholarships (~ 33 %)– Stated intention to reverse ratio (increase free-standing

scholarships) • Transformation management

– Target driven (Free-standing vs Grant-holder linked)– 80 % black, 15 % rest of Africa, 5 % International– Needs based approaches (~ 33 % Free-standing)– Black student retention (family commitments)

• System influence (only 15 % of all registered PhD’s)- Statistic influenced by the poor national PhD completion rates

NRF Impact on Human Resource Development

2007 2008 2009

Level Number SpentR 000

Number SpentR 000

Number SpentR 000

Final year

170 937 195 1 613 286 2 168

Honours 1 504 28 176 1 271 41 456 1 699 36 587

Masters 2 693 63 296 2 657 81 929 2 376 77 308

Doctoral 1 556 65 563 1 500 75 348 1 384 69 462

Postdoc 295 22 744 260 26 972 302 34 207

Total 6 218 180 717 5 883 227 317 6 047 219 731

All sources of income and all funding programmes

NRF impact on the NSI

NRF funding levels in 2008

Scholarship levelbased on 2008 data

Total NRFAwards

Students Funded by NRFIn First Year

ApplicationsReceived by NRF

Total NationalStudent Registration

StudentsSupported byNRF as % ofNational

Honours 1,271 1,271 4,237 66,917 2%

Master's degree 2,657 1,329 4,428 41,711 6%

Doctoral degree inSA 1,500 600 2,000 9,994 15%

Total 5,428 3,200 10,665 118,622 5%

NRF Student Support Equity ProfileScholarship level 2008 2009

HonoursBlack 66% 73%

Woman 55% 59%

Master’s Black 36% 53%

Woman 51% 53%

DoctoralBlack 36% 51%

Woman 50% 51% 302519% female707581% male20127% black808893% white

200419991994Graduates (PhD)

302519% female707581% male20127% black808893% white

200419991994Graduates (PhD)NRF Supported PhD equity profile

Selection criteria

• Scientific quality– Marks– Publications, Conference proceedings

• Capacity of HEI to support chosen research– Different HEI in case of postdoctoral

• Demographics– Race– Gender– Disability– Nationality

• Timing– Not more than 5 years after last degree

• Discipline (in some funding programmes)– Scarce skills focus

Bursary adjustments 2010

2010 (DST intervention)

• Injection of additional R52,7 million to increase bursary values• To address uptake • Assist needy students

Free standing and grant holder linked bursaries• Honours R15 000 pa - R 20 000 pa• Masters degree R30 000 pa - R 40 000 pa• Doctoral degree R45 000 pa - R 60 000 pa

• Needy students – less than R 300 000/ annum household income– R 10 000 bursary top-up

RISA programmes and activities

a. Knowledge Fields Development: • Facilitate the creation of new knowledge and research capacity• Developing new fields of knowledge and associated research capacity• Mechanisms: Centres of excellence; special programmes (SANAP,

SABI-R3 m)

• Budget 2010/11: MTEF = R175 m, CF = R54 m, Total = R229 m

b. Applied Research and Innovation:• Supports research with innovation and social beneficiation by

addressing issues related to sustainability, housing, good governance, community health, poverty alleviation, food security and community security

• Funded solely through sector specific departmental budgets (e.g. Agriculture; Local government etc.)

• Mechanisms: THRIP-like programmes

• Budget 2010/11: MTEF = R2 m, CF = R173 m, Total = R175 m

RISA programmes and activities (cont.)

c. Human and Institutional Capacity Development:• Develop individual researcher’s capacity

– Incentive programme– The South African PhD Project – Thuthuka– Rating track programme (Career awards)– SARChI

• Develop institution’s research capacity– RNAs

• Develop strategic platforms to support research: HR – TEM

• Budget 2010/11: MTEF = R141 m, CF = R372 m, Total = R513 m

d. International Relations and Cooperation:• NRF is responsible for the development of the Science and Technology

Agreements Fund (STAF) • Agency to agency support of international research collaboration

• Budget 2010/11: MTEF = R76 m, CF = R23 m, Total = R99 m

RISA programmes and activities (cont.)

e. Knowledge Management and Evaluation Directorate:• Implementation and custodianship of knowledge management

processes within NRF but also in the wider NSI context (PhD thesis database, journal access?)

• Rating system• Conduct programme / disciplinary reviews

• Budget 2010/11: MTEF = R18 m, CF = R1 m, Total = R19 m

f. Grants Management and Systems Administration (GMSA):• Implements grant management in partnership with and on behalf of

the funding directorates of RISA

• Budget for 2010/11: NA

RISA grant awards

0

200

400

600

800

1000

1200

1400

Awarded Expensed Awarded Expensed Awarded Expensed Awarded Year todate

expense

Budget

2006/07 2007/08 2008/09 2009/10 2010/11

Mill

ions

MTEFContractTotal

RISA Challenges

• Achieving an optimal balance between core and contract funding – Increase bursary values substantially– Increase funding for fundamental disciplinary research (core grant)

• Ensuring an appropriate mix of fundamental and directed research (disciplinary vs strategic)

• Strengthening the peer review and rating system as requested by HESA

• Optimising the Scarce Skills Development Fund (DoHET)• Improve management and administration of bi-national and

bilateral agreements • Strengthening the Strategic Platforms Collaboration

Programme

3. Divisional contributions - SAASTA FOCUS AND INFRASTRUCTURE

• Science education• Science communication• Science awareness platforms

Financial Perspective: SAASTA

0

10

20

30

40

50

60

70

80

Expenditure Projection Budget

2008/09 2009/10 2010/11

Mill

ions

MTEFContractTotal

SAASTA Infrastructure

• Johannesburg Observatory: SAASTA is currently exploring refurbishing this

site to accommodate a multifaceted interactive Science Park

with a specific focus on astronomy

and engineering• Didacta

building:

Retain or consolidate with Jhb Observatory?• National Zoological Gardens’

Life Sciences

Centre: New plans to further develop this centre

Important Challenges

Future of the Johannesburg Observatory site

“Should this be a flagship national site from where Science Advancement is both driven and coordinated?”

3. Divisional contributions – National Facilities SOUTH AFRICAN ASTRONOMICAL OBSERVATORY [SAAO)

• SAAO’s has been entrusted with the responsibility for optical, infrared astronomy and astrophysics research

• SAAO operates SALT on behalf of a globally distributed, 12-member consortium for which SAAO is the leading organisation

• Budget: MTEF = R30 m, CF = R20 m, Total = R50 m• Challenges: Repair, refurbishment of ageing infrastructure• SALT operations levy – maintaining shareholding for SA astronomy

Increasing demand from other African countries for participation in, and support in terms of astronomy

HARTEBEESTHOEK RADIO ASTRONOMY OBSERVATORY (HartRAO)

• The 26 m diameter radio telescope that is used for research in radio astronomy, astrometry and geodesy is central to the operations and functioning of the HartRAO

• HartRAO also takes charge of other radio telescopes• Budget: MTEF = R19 m, CF = R3 m, Total = R22 m• Challenges: Maintaining HartRAO competitiveness while becoming

involved in KAT-7 and MeerKAT• Upgrade radio-astronomy systems and instruments

MeerKAT SQUARE KILOMETRE ARRAY (SKA)

• SKA is envisaged to be the largest, powerful pathfinder telescope in the world• Budget: MTEF = R14 m, CF = R455 m, Total = R469 m• Challenges: The SKA SA project is still severely under-resourced from an HR

perspective, given the task of delivering the MeerKAT 80 dish array. These positions will be filled by the beginning of the 2011 financial year. The challenge is the shortage of engineering skills within the country and the issue of staff retention given the skill sets of current staff members.

• No real operations budget for MeerKAT in place

HERMANUS MAGNETIC OBSERVATORY (HMO)

• The HMO functions as an active participant in the worldwide network of magnetic observatories (INTERMAGNET) which monitor and model variations of the Earth’s magnetic field

• House important and unique tools and instruments (magnetometers, HF radars and VLF receivers, GPS network in Southern Africa)

• Strategic importance to the SANDF and aviation sector • Budget: MTEF = R9 m, CF = R14 m, Total= R23 m• Challenges:

– Budgetary constraints that hinder operational excellence of the facility– Critical scarce skills vested in few individuals – Inadequate students’ accommodation limiting the increase in student intake– Positioning with the advent of SANSA

SOUTH AFRICAN INSTITUTE FOR AQUATIC BIODIVERSITY (SAIAB)

• The SAIAB’s research scope spans aquatic biodiversity from genes to ecosystems

• Disciplines include systematics and taxonomy; phylogenetics and phylogeography; ecology; physical and biological oceanography; marine palaeo-climates; remote sensing; coastal biodiversity; conservation planning; environmental education; and deepwater biodiversity

• Budget: MTEF = R11 m, CF = R13 m, Total = R24 m• Challenges: Ensuring that ACEP II research programme is successful, as it

operates on a model that is novel for the South African marine research community

SOUTH AFRICAN ENVIRONMENTAL OBSERVATION NETWORK (SAEON)

• SAEON draws on research competencies in hydrology, water quality, eco- physiology, soil sciences, conservation biology, botany, zoology, marine sciences, limnology, climatology and meteorology, fresh water ecology, human ecology, environmental information systems, palaeo-ecology, biogeography, pollution and environmental modelling.

• Budget: MTEF = R17 m, CF = R5 m, Total = R22 m• Challenges: Resourcing and managing the implementation phase of the SAEON

information management system; and inactive formal relationships/agreements• Status of facility declaration outstanding

NATIONAL ZOOLOGICAL GARDENS OF SOUTH AFRICA (NZG)

• The NZG represents a Science Advancement platform that enhances and augments knowledge, particularly knowledge related to conservation.

• Furthermore, the research component provides the basis for the development of the next generation of biodiversity conservation and conservation medicine scientists that will generate new knowledge required for managing wildlife biodiversity and its conservation.

• Budget: MTEF = R47 m, C and other F = R40 m, Total = R87 m• Challenges: Decaying physical infrastructure that poses challenges for the

management of health & safety• Unsustainable business models

iTHEMBA LABORATORY FOR ACCELERATOR BASED SCIENCES (iThemba LABS)

• iThemba LABS brings together scientists working in the physical, medical and biological sciences through the provision of a unique suite of facilities and infrastructure for modern research, advanced education, the treatment of cancers, and the production of unique radioisotopes

• Budget: MTEF = R122 m, CF = R61 m, Total = R183 m• Challenges: Equipment upgrades required• Skills retention and replacement• Electricity costs

Gauteng: Incomplete refurbishment of facility due to insufficient funding

Important Challenges

Maintain and re-establish global competitiveness

• ACTUAL: R37 m invested into infrastructure (2 years)• REQUIRED: R200 m per annum for 3 years* • Facility baseline funding (eroded to 60% of target)• Salary to operations ratios are non-sustainable

Recapitalisation

of the National Facilities

* Excluding SKA

4. NRF Financial perspective NRF growth strategy

0

5001,000

1,5002,000

2,5003,000

3,5004,000

4,500

2007

/0820

08/09

2009

/10

2010

/1120

11/12

2012

/1320

13/14

2014

/15

Year

Fund

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A

B

NRF growth strategy

• Increased DST contribution is pivotal• Diversification of NRF funding streams

– Other government departments – Industry– International partners (leveraging)– Private donors

This growth strategy is required to realise the objectives of the NRF Strategic Plan, Vision 2015.

NRF multi-year expenditure (RISA & National Facilities)

NRF'S MULTI-YEAR EXPENDITURE

EXPENSES/FINANCIAL YEARS

R'00

0 SALARIES RUNNING COSTSGRANTS & BURSARIES

SALARIES 272,147 292,901 350,665 393,196

RUNNING COSTS 276,165 286,667 357,752 386,793

GRANTS &BURSARIES

905,675 1,121,810 1,050,867 1,060,085

2007/08 2008/09 2009/10 2010/2011

FINANCIAL YEAR 2007/08 2008/09 2009/10 2010/2011

GRANT & BURSARIES % of TOTAL 62.3 65.9 59.7 57.6

TOTAL EXPENDITURE (R'000) 1,453,987 1,701,378 1,759,284 1,840,074

Cost structure Agency vs. National Facilities

0%10%20%30%40%50%60%70%80%90%

100%

Cost Structure: Agency Function (RISA)

Opex/Total 12% 9%

Salaries/Total 8% 7%

Grants/Total 79% 84%

RISA Actual 2010 RISA Budget 2011

0%

20%

40%

60%

80%

100%

Cost Structure: National Facilities (NF)

Shared Services 24% 23%

Research Platform 76% 77%

NF Actual 2010 NF Budget 2011

MTEF growth

NRF MTEF Allocation Trend vs CPIX (%)

4.60

% 6.50

%

11.3

9%

10.0

0%

6.00

%

14.4

%

11.9

%

7.5%

4.3%

-0.6

%

13.9

%

5.5%

2.8%

6.7%

4.3%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2006/07 2007/08 2008/09 2009/10 2010/11

Year

% M

ovem

ent

% MTEF Movement

Baseline

CPIX

Below CPIX adjustments →

pressure on operations and continued sustainability

Impact of forced efficiency savings (MTEF budget cuts]

11

22

005

10152025

R' M

illio

n

2010/11 2011/12 2012/13

Year

Break-even (after forced efficiency savings)

-11 -22-67

-80-60

-40

-20

0

R' m

illio

n

2010/11 2011/12 2012/13

Year

Cumulative Deficit (with embedded savings)

Assumptions:• Salary bill movement

limited to 6%

• Operating costs increase

limited to 2%

Forced efficiency savings (MTEF budget cuts]

• Corrective measures implemented from 2010/11 to allow break-even by 2012/13

• Dealing with R120 m budget cuts over 3 years

– Embedded efficiencies in 3 year budget = R53 m– Further savings required = R67 m

• Freeze vacancies / Staff rationalisation (R10m)• Reduce running costs + Downsize National Facilities (R57m)• Grant budget impact (zero increase on core grants)

Key performance targets 2010/11-2012-2013

NRF Vision 2015 strategic targets:

Balanced Scorecard Approach (Appendix): – Stakeholder perspective– Financial perspective– Organisational perspective (business processes and

procedures)– Organisational learning and growth perspective, and– Human resources and transformation perspective

Enkosi, Thank you, Re a leboga, Siyabonga, Dankie