Assessing the Internal Financial Capacity of the University of Zambia for Financial Sustainability ()
ABSTRACT
The study aimed to assess the current approach for the University
internal income-generating activities and how it impacts on the financial
sustainability of the University, The study was guided by three research objectives,
which were: to assess the institutional framework in place on internal
income-generating activities; to
evaluate how much income is generated from the current institutional framework
in place on internal income-generating activities; to identify the gap in the
institutional framework in place on internal income-generating activities
and how this impacts on the financial sustainability of the institution. The
study was descriptive and used both quantitative and qualitative data to make
inferences in line with the aim of the study. The sample of 29 respondents was purposively drawn from UNZA Great
East Road main campus, of which 16 questionnaires were answered and
retained successfully. Primary data was collected through questionnaires with
the management staff at UNZA, main campus, and secondary data was obtained from
the Bursars department. The study has found that the institutional framework
being used by UNZA for IIGAs was not sustainable and inadequate to cover or
meet the current expenditure. The income or revenue generated from IIGAs was
less than twice the amount spent by the University on expenditure. Moreover, staffing costs over the years under review could
not be covered through UNZA’s current internal income-generating
activities. The study also revealed several gaps
that currently existed to the current approach/strategy on IIGAs at UNZA, the failure to broaden the income base, lack of consensus on sharing ratios between UNZA and staff on consultancy income, and
lack of aligning the current approach or strategy of internal income generation
to the current happenings in the outside business environment. Several
recommendations were made to change the current approach for UNZA’s IIGAs,
which included ensuring goal congruence with the higher education policy, the
billing policy and the university must develop an appropriate cost structure in
teaching and research.
Share and Cite:
Kalomo, C. and Chama-Chiliba, C. (2022) Assessing the Internal Financial Capacity of the University of Zambia for Financial Sustainability.
Open Journal of Business and Management,
10, 2115-2126. doi:
10.4236/ojbm.2022.104107.