Thesis (MComm (Business Management))--University of Stellenbosch, 2006. / For the last 40 years, academics advocated the use of the traditional Discounted Cash Flow (DCF) techniques but these suggestions were ignored by practitioners for a long time. The Net Present Value (NPV), Internal Rate of Return (IRR) and Present Value Payback Period (PVPP) are now some of the more widely used traditional DCF-based techniques, especially among large firms. However, academics are now criticising these techniques as they are based on rigid assumptions that ignore the management of flexibility in projects. The Real Option Valuation (ROV) is suggested as an alternative technique because it implicitly incorporates this flexibility in project valuation. With ROV, opportunities in projects are treated as real options and are therefore valued using financial option principles. Real options give the firm the opportunity to act on an investment project (invest, abandon, rescale) at a later date, when more information is available. As with the traditional DCF-based techniques in the past, few firms seem to have adopted ROV despite academics’ recommendations. This study is thus aimed at determining through a survey, whether the largest firms in South Africa, specifically those included in the JSE/FTSE Top 40 index, are using ROV. Based on the results of the survey, it is concluded that firms generally do not use ROV as only nine percent of the respondents were found to be using it. This is largely attributed to managers being unaware of the technique, and to some extent, to the technique’s complexity. On the other hand, managers were generally found to recognise the flexibility despite not using ROV, although it was not confirmed whether they quantify this flexibility.

The aim of this research project was to investigate the impact of funding on the service delivery of the Information Technology Division in the Department of Finance, North West Province. A secondary related purpose of the study was to determine the existence and utilisation of a proper strategic plan in the Division of Information Technology. A Division or Programme without a proper strategy would not be in a position to compile a credible budget. Two different self-administered questionnaires were developed. The first questionnaire was a survey of all Information Technology staff members including high-ranking officials such as assistant directors, deputy directors and managers. The second questionnaire was directed to provincial departmental officials across various departments who were willing to take part in the study. Eight provincial departments were chosen and the sample represented a total population of twelve provincial departments in the North West Provincial government. In addition to the surveys, direct interviews were conducted in cases where the respondents were not able to complete questionnaires without assistance. Although the intention of the study was to determine the impact of funding on the service delivery of information technology Division in the Department of Finance, the overall findings revealed that the strategic plan, which was not well defined, was found as the major problem that impacted on the process of compiling a reasonable budget. This, in effect, had a greater impact on service delivery than the actual funding of the Division. / (MBA) North-West University, Mafikeng Campus, 2004

M. Tech. (Department of Accountancy, Faculty of Management Sciences) Vaal University of Technology. / Efficient planning and effective budget and cost control are key to the financial survival of universities in South Africa. Given the #FeesMustFall, students and their parents, starting in 2018, no longer contribute to the development of new infrastructure, payroll expenditure, maintenance and other daily operational expenses of public universities in South Africa. A new funding model for higher education calls for even stricter planning and allocation of budgets to departments within an institution of higher education. Evenly important, stricter control over the actual spending of these allocated funds needs improved planning and implementation of more effective policies and procedures to answer to the needs of the post #FeesMustFall funding model. Public universities will then be even more greatly funded by taxpayer’s money via government grants. There is this constant factor of the current situation of the South African economy, which will always bring the need for best possible use of scarce resources of funds. To eliminate the abuse of funds and elements of corruption, internal control strategies and systematic automation of controls need to be employed and even more rigorously enforced. The current phenomenon of different political parties’ that interfere with autonomous public universities to use #FeesMustFall and free education as a political “play-ball” is in full swing. These political structures and unions will in all probability have a huge impact, largely on the principals and methods used to plan an annual budget and the procurement policies and procedures of operational needs and on the expenditure control in public universities in South Africa. This study investigates the budgetary planning processes and expenditure control in universities in Gauteng, South Africa. This research is done by means of a detailed empirical study of the budgeting processes, cost and expenditure control processes, procedures followed and the internal control mechanisms at some universities in Gauteng. The empirical study was conducted with public universities in Gauteng and applicable research online questionnaire were used to analyse. The primary objective of this empirical study was to investigate what budget model and budgetary processes and principles regarding decision making to allocate budgets to specific allocations in the budget. Furthermore, the research study investigated how cost management and expenditure are controlled and how internal control mechanisms are applied in higher education institutions that formed part of this study. This study investigated the manner in which the budgets for annual expenditure are planned and how the internal controls are employed to ensure effective control over expenditure at public universities in Gauteng, South Africa. This research is supported by a literature study into the role of higher education in South Africa, the different controlling bodies in South African Higher Education, funding of South African public universities, budgetary planning and earmarked spending, procurement and expenditure control and reporting by universities in South Africa.

The researcher investigated the legal obligations of the governing bodies with regard to the financial management of public schools in Maleboho Central Circuit in the Province of Limpopo. I followed the qualitative research approach and used a multiple case study design that enabled me to test and confirm the findings across the cases by comparing or contrasting the cases. The study revealed that parent governors’ understanding of the role and responsibilities pertaining to financial management is not sufficient, and that the financial training that is presented in English hampers its effectiveness. The findings of the study confirm that the governing bodies do not manage the schools’ finances effectively and in compliance with their legal obligations. / Educational Leadership and Management / M. Ed. (Education Management)