Modelling for Resource Allocation to Departments and Faculties in African Universities.

Abstract

University budgets and actual results have not been balanced in African universities, partly because of the unscientific way in which budgetary planning is arrived at and allocations of money is decided upon. Formula budgeting presents an attractive option for developing countries as it reduces substantially the dependence of funding decisions on political considerations and allows for a fair, equitable and transparent disbursement of funds. Norms and other guidelines can be used to steer university development in the directions prescribed by national policy decisions and can facilitate the monitoring and evaluation of the performance of the institutions. They are therefore useful both in times of economic decline and expansion. Since headcount enrolment does not allow rational budget planning for, and allocation of funds to academic departments, the full time equivalent student count which reflects the workload of programmes and departments can be introduced as an alternative measure of enrolment and adopted as a funding parameter. Other funding indices can include student based parameters such as growth rate and enrolment mix, staff student ratios and expenditure ratios such as the ratio of salaries to goods and services and the ratio for expenditure on the academic as against the non-academic sectors. A comprehensive study of expenditure patterns in universities can stimulate the evolution of a model for fund allocation to academic and other units within the institutions. A micro model embedded in a consistent global model for budgeting and allocation of funds in the university system by a central funding agency. A standardisation of budgeting techniques and fund allocation procedures within the university system is therefore achievable with an emerging consolidated budgetary system where uniform parameters are used with a well defined basis for fund allocation formulated to justify management decisions and actions. Managers will then be well motivated,