Transition at the universities in the Republic of Macedonia

1. FINANCING OF HIGHER EDUCATION IN THE REPUBLIC OF MACEDONIA- THE EXAMPLE OF SS. CYRIL AND METHODIUS UNIVERSITY IN SKOPJE D-r Pece Nedanovski Vice-Rector for finance at the Ss. Cyril and Methodius University

2. Transition at the universities in the Republic of Macedonia • Universities in the Republic of Macedonia, in a stage of transition, have one primary goal: easier integration of higher education in the European educational sphere. • The issue of building a system for efficient management with financial resources is of great importance for successful integration. • In terms of financing state universities in the European countries, a common financing model does not exist. Numerous differences are present. • Yet, the tendency for harmonizing the fundamental principles is obvious. They should be taken into consideration in the system for financing of higher education in the Republic of Macedonia.

3. Financing of state universities in the Republic of Macedonia -current state - • In terms of financing, universities in the Republic of Macedonia are generally directed to the Budget of the Republic of Macedonia, by the competent Ministry of Education and Science. • Financing is realized in accordance with two acts: • Temporary measures and criteria and • Self- governmental agreement on common grounds and measures for determining a price of educational services and acquiring part of the revenue of oriented education organizations within and through the self-governmental communities of the oriented education (1988).

4. This type of financing provides financial support for only a fraction of the requirements in higher education (30 %), while the rest of the necessary means (around 70 %) are covered by own resources. • The Budget of the Republic of Macedonia provides means for : • salaries of University employees, • payment of material expenses • payment of spent electricity, water, telephone services and heating energy.

5. This type of financing of higher education in the past years confronted the University and its units, faculties and institutes, with a number of problems related to pursuing the primary activity. • The problems were especially visible in terms of financing the primary functions of the University: • carrying out teaching at the non-departmental faculties, • payment for students’ practical teaching., • engagingassistants, i.e.associates in most of the faculties, i.e. institutes, • insufficient funds for implementation of necessary reforms, • insufficient funds for smooth operation of the International Seminar for Macedonian language, literature and culture, • payment of University membership fees in international associations, • maintenance of the University computer network etc. • Consequences from previous state- difficulties in pursuing the teaching and educational process.

6. Table 1- financial resources granted to higher education and science from the Budget of the Republic of Macedonia for 2003-2008 (6)

7. Revenue structure The revenue structure of Ss. Cyril and Methodius University in Skopje is as follows: 1. Revenues from the Budget of the Republic of Macedonia 2. Revenues from other sources: • Co-financing of students; • Educational activities at under-graduate, graduate and post-graduate studies; • Pursuing scientific research, educational and applicative activities for domestic and foreign legal and natural entities; • Different forms of upgrading, deepening and expansion of the knowledge as well as continuous education; • Exchange of scientific and professional services and productswith domestic and foreign legal and natural entities; • Organizing professional and academic activities and selling products to domestic and foreign legal and natural entities;

8. 2. Revenues from other sources- extension • Activities from public authorizations; • Artistic creations; • Interests and dividends; • Authors and other intellectual rights; • publishing activities; • Other applicative activities; • Other sources. • Specific revenues: • Projects • scientific research realized on the basis of agreements signed by the Republic of Macedonia; • leases and other revenues acquired from the property; • funds and foundations, institutions and trade companies established by the University; • legates, gifts, testaments, contributions; • other accomplishments;

9. Table 2- Resources for higher education provided from the Budget of the Republic of Macedonia according to the structure of revenues (in denars)

10. Participation of the higher education funds in the Budget of the Republic of Macedonia in percents : • 2006- 1, 36% • 2007- 1, 034% • 2008- 1, 639% Since 2008 the funds for Higher education have been divided by faculties, which separated the Ss. Cyril and Methodius University in Skopje in the department Higher education as a separate programme- programme 41. In 2008, 51 % from the total funds for higher education in the Republic of Macedonia or 0.843 % from the total Budget of RM were planned for Ss. Cyril and Methodius University in Skopje.

11. Financing of the University in accordance with the new Law on Higher Education • The Law on Higher Education from 2008 provides a new manner of financing of higher education, i.e. establishing a Fund for higher education and Council for financing and development in higher education. • The new manner of financing is still not in function. The reason lies in the partial inconsistency of certain solutions in the Law and non-compliance of these solutions with the fiscal and budget system of the Republic of Macedonia. • The financing system should be based on financing project- education for certain activity and should bare in mind the real cost, as well as the teaching, material, technical, laboratory and other requirements for its implementation.

12. The above said implies adopting new criteria and measures for financing the teaching, educational and research activities at the University (universities) and overcoming the past financing according to the number of students and fixed departments. • The constitutional orientation of the University, being autonomous institution, implies a process of affirmation of the idea for independent University Budget, approved by the Parliament of the Republic of Macedonia, directed towards implementation of the University plans and programmes.

13. The University’s activities for the current year are oriented towards successful implementation of the Law on Higher Education and establishing a model of continuous financial performance of the University and its units, as well as establishing mechanisms to aid its enforcement and functioning. • This model would determine the operation of the University and its units by : • establishing a University account for budget funds and separate accounts for the units; • establishing a University account for own resources and separate accounts for the units; • adopting collective plan for revenues and expenditures of the University and its units, and approval of the plans from the Ministry of Education and Science; • adopting and creating consolidated annual accounts, etc.

14. The following should be taken into consideration when creating the model: • The objective need for possible improvements of the Law on Higher Education; • the past opinions built by debating among the University bodies and determined by the University’s documentation (Development Strategy 2004-2010, Report on external evaluation in 2004, and the self-evaluation report from 2008), and • experiences from other universities in the country and abroad, which accomplished significant progress in the process of self-integration.